TUHU Car (9690) H2 2024 earnings summary

Executive summary

• Revenue grew 8.5% year-over-year to CNY 14.8 billion, with gross profit up 11.5% to CNY 3.75 billion and gross margin rising to 25.4%.

• Adjusted net profit increased 29.7% to CNY 624 million, while adjusted EBITDA reached CNY 780 million.

• Store network expanded to 6,874 workshops, with registered users nearing 140 million and transaction users up 24.8% year-over-year to 24.1 million.

• Significant expansion in NEV services, with NEV users now 11% of the transaction base and NEV transaction users doubling to 2.7 million.

• Strong cash position with over CNY 7.5 billion at year-end and operating cash flow up 29.2% to CNY 1.3 billion.

Financial highlights

• Revenue from automotive products and services rose 9.1% to CNY 13.8 billion, driven by tires, chassis parts, and auto maintenance.

• Gross profit margin improved by 0.7 percentage points to 25.4%, aided by higher private label sales and favorable procurement.

• Adjusted net profit margin was 4.2%, up 70 basis points year-over-year.

• Free cash flow was CNY 460 million; total cash reserves at year-end were CNY 7.5 billion.

• Operating expense ratio to revenue decreased to 23.6% from 24.4% in 2023.

Outlook and guidance

• Focus on digitalisation, industry standardisation, and expanding NEV-related services and proprietary product offerings.

• Continued market penetration, especially in lower-tier and township markets.

• No dividend declared for 2024; capital will be used for supply chain, R&D, store expansion, and NEV services.

• Commitment to sustainable growth, franchisee support, and industry leadership.