Weimob (2013) H1 2025 earnings summary

Executive summary

• First-half 2025 revenue was RMB775.5 million, down 10.6% year-on-year, mainly due to advertising platform rebate changes and exit from low-margin businesses, but adjusted revenue rose 7.8% after normalization.

• Adjusted net profit reached RMB16.9 million and adjusted EBITDA was RMB71.8 million, marking the first profit turnaround since 2021.

• Gross profit increased 1.1% to RMB582.3 million; adjusted gross profit surged 36.1% to RMB583.2 million, with gross margin improving to 75.1%.

• Operating profit turned positive at RMB0.3 million, compared to a loss of RMB287.3 million in the prior year; net loss narrowed sharply to RMB47.2 million from RMB569.8 million.

• AI-related revenue reached RMB34 million, accounting for 7.9% of subscription revenue.

Financial highlights

• Subscription Solutions revenue was RMB438 million, down 10.1% year-on-year, but stabilized and grew sequentially; number of paying merchants fell 13.9% to 59,149.

• Merchant Solutions revenue was RMB338 million, down 11.3% year-on-year, but adjusted for rebates, up 45.3%; gross margin for Merchant Solutions jumped to 91.3%.

• Gross billing for Merchant Solutions was RMB8,623 million, up 3.4% year-on-year; number of paying merchants grew 1.5% to 39,281.

• Adjusted EBITDA margin improved to 9.3% from -24.5% year-on-year; adjusted net margin attributable to equity holders was 3.1%.

• Free cash flow nearly break-even with a small outflow of RMB28 million.

Outlook and guidance

• Second half expected to see subscription revenue return to year-on-year growth as deferred revenue impact fades.

• AI commercialization and expansion of AI Agent applications in SaaS and targeted marketing to drive further revenue growth.

• Merchant Solution revenue projected to grow at least 90% year-on-year in the second half, with net rebate ratio maintained.

• Continued dedication to the WeChat e-commerce ecosystem and multi-channel expansion, including Douyin, Huawei HarmonyOS, Meituan, Xiaohongshu, and Alipay.

• Internationalization efforts to drive growth in North America, Southeast Asia, Middle East, Europe, Africa, and beyond.