Rego Interactive (2422) H1 2025 earnings summary

Executive summary

• H1 revenue rose 16.8% to RMB135.766m, while gross profit fell 48.2% to RMB21.543m and the period swung to a RMB20.810m net loss.

• Growth came mainly from tangible-goods sourcing and delivery; the lower-margin, gross-basis sales mix contributed to the gross-margin decline.

• Priorities include AI-enabled lottery-store services, broader lottery tenders, and cross-industry growth; the Caipingfang acquisition was completed in July 2025.

Financial highlights

• Revenue was RMB135.766m versus RMB116.204m; cost of sales rose 52.9% to RMB114.223m.

• Gross profit was RMB21.543m, down 48.2% YoY; gross margin contracted to 15.9% from 35.7%.

• Net loss was RMB20.810m versus net profit of RMB2.731m; loss attributable to owners was RMB19.644m, with basic and diluted loss per share of RMB0.03.

• Adjusted net loss, excluding translation differences and FVTPL fair-value changes, was RMB19.116m versus adjusted net profit of RMB4.031m.

• Financial-asset impairment provision rose to RMB8.062m from RMB1.870m; finance costs fell 36.0% to RMB1.628m.

Outlook and guidance

• 2025 priorities include developing an AI digital lottery-store model for betting analysis, store-player traffic and more efficient lottery-sector marketing.

• Lottery plans include pursuing terminal, maintenance and other system tenders, marketing tickets, and expanding among Welfare Lottery and Sports Lottery; more than eight tenders were won in H1.

• Corporate services plans include adding stable customers and suppliers, expanding omnichannel marketing, and developing corporate welfare solutions through virtual- and physical-goods supply chains.

• AI-enabled software, hardware and intelligent services, alongside OMO integration, are intended to deepen digital marketing and online-offline customer experiences.