TUHU Car (9690) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 reached RMB7.1 billion, up 9.3% year-over-year, driven by network expansion and diversified service offerings.

• Gross profit increased 17.0% to RMB1.85 billion, with gross margin improving to 25.9% from 24.2% last year.

• Net profit surged 378% to RMB284.3 million, and adjusted net profit (non-IFRS) rose 67.3% to RMB358.2 million.

• Registered users reached 126 million, with 21.4 million transacting users, up 18.8% year-over-year.

• The store network expanded 23% to 6,311 workshops, with new entries into Hong Kong.

Financial highlights

• Adjusted EBITDA (non-IFRS) grew 27.8% to RMB449.6 million, with margin up to 6.3%.

• Operating profit rose 217.5% to RMB211.9 million.

• Total operating expenses were RMB1.7 billion, 23.6% of revenue, down 0.9 percentage points year-over-year.

• Net cash flows from operating activities were RMB719 million; capital expenditures reached RMB186.8 million.

• Cash position stood at RMB7.1 billion at period end, up 3.4% from year-end 2023.

Outlook and guidance

• Management expects continued growth, leveraging market leadership and operational capabilities to capture opportunities from the structural recovery in the automotive service market in the second half of 2024.

• Focus remains on expanding service offerings, enhancing supply chain, and improving user engagement and retention.

• Continued focus on expanding store network, especially in lower-tier cities and Hong Kong.

• Ongoing investment in NEV (new energy vehicle) service capabilities and supply chain enhancements.

• No interim dividend declared for the period.