Rego Interactive (2422) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 28.0% YoY to RMB244.6m, while gross profit fell 35.3% to RMB65.8m and the year ended with a RMB39.3m net loss.

• Revenue growth reflected expansion in corporate digitalisation, especially tangible goods supply; higher inventory costs and operating expenses contributed to weaker profitability.

Financial highlights

• Revenue was RMB244.6m vs RMB191.1m in FY2023; gross profit was RMB65.8m vs RMB101.7m.

• Loss before tax was RMB37.8m vs profit before tax of RMB14.9m; net loss was RMB39.3m vs net profit of RMB12.6m.

• Loss attributable to owners was RMB38.0m; adjusted net loss was RMB27.9m vs adjusted net profit of RMB21.7m in FY2023.

• Basic and diluted loss per share was RMB0.03 vs earnings per share of RMB0.01 in FY2023.

Outlook and guidance

• FY2025 priorities include reinforcing core businesses, improving operating efficiency, prudent risk management and pursuing growth across the two digitalisation service segments.

• Corporate services plans focus on reliable customers and suppliers, omnichannel marketing and expanding corporate welfare solutions using virtual and physical goods supply chains.

• Lottery plans include expanding marketing tickets and developing AI-based software, hardware and intelligent solutions for lottery shops and additional provinces.

• Strategic investment priorities include cross-business synergies; discussions continued on a potential e-commerce acquisition to expand supply-chain capabilities.