TUHU Car (9690) H2 2024 earnings summary

Executive summary

• Revenue grew 8.5% year-over-year to RMB14.8 billion, with gross profit up 11.5% to RMB3.7 billion and gross margin rising to 25.4%.

• Adjusted net profit (non-IFRS) increased 29.7% to RMB624 million, while adjusted EBITDA reached RMB777 million.

• Store network expanded to 6,874 workshops, with transacting users up 24.8% to 24.1 million and registered users up 20.4% to 138.8 million.

• Strong cash position with over RMB7.5 billion at year-end and operating cash flow up 29.2% to RMB1.3 billion.

Financial highlights

• Revenue from automotive products and services rose 9.1% to RMB13.8 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.

• Operating profit more than doubled to RMB331 million; profit for the year was RMB482 million, down from RMB6.7 billion in 2023 due to a one-time fair value gain last year.

• Adjusted EBITDA margin was 5.3%; adjusted net profit margin was 4.2%.

• For the six months ended December 2024, revenue grew 7.8% year-over-year to RMB7.6 billion, with gross profit of RMB1.9 billion.

Outlook and guidance

• Management remains confident in long-term growth, focusing on digitalisation, industry standardisation, and expanding NEV-related services.

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