Ubtech Robotics Corp (9880) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, rose 86.6% year-over-year to RMB487.2 million, driven by business expansion, new product launches, and project deliveries.

• Gross profit increased 213.9% to RMB185.2 million, with gross margin improving to 38.0% from 22.6% year-over-year.

• Operating loss narrowed by 3.1% to RMB530.4 million, and net loss decreased by 1.5% to RMB539.8 million compared to the same period last year.

• Adjusted net loss (non-GAAP) was RMB363.5 million, and adjusted EBITDA (non-GAAP) improved to negative RMB234.5 million.

Financial highlights

• Education smart robotic products and services revenue grew 112.9% to RMB161.2 million; consumer-level robots and hardware up 105.5% to RMB174.7 million.

• Logistics smart robotic products and services revenue declined 22.4% to RMB59.6 million.

• Cost of sales increased 49.4% to RMB302.0 million, reflecting higher sales volume.

• Selling, administrative, and R&D expenses rose in absolute terms but decreased as a percentage of revenue.

• Credit impairment losses surged to RMB74.1 million due to delayed payments from government-related customers.

Outlook and guidance

• Strategic focus remains on R&D and commercialization of humanoid robots and AI technologies, with continued investment in the Walker series and large model integration.

• Plans to enhance motion control, multi-modal perception, and autonomous driving for L4 driverless vehicles.

• Proceeds from recent share placements and IPO will support R&D, loan repayment, and working capital.