Weimob (2013) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 rose 12.1% year-over-year to RMB869.4 million, driven by rapid growth in AI Application and improved Targeted Marketing efficiency.

• Gross profit increased 5.1% to RMB612.1 million, but gross margin declined from 75.1% to 70.4% due to higher costs in AI Application.

• Loss for the period widened to RMB181.6 million, mainly due to one-off share-based compensation (RMB109 million) and tax effects (RMB41 million).

• Adjusted EBITDA was RMB56.3 million and adjusted net profit remained positive at RMB4.8 million, marking three consecutive positive half-year periods.

• Operating cash outflow was RMB397 million, attributed to short-term capital needs for Targeted Marketing channel expansion.

Financial highlights

• SaaS and AI revenue grew 5.4% year-over-year to RMB461.4 million; AI Application revenue surged 89.2% to RMB133.1 million.

• Targeted Marketing revenue increased 20.9% to RMB408 million, while gross billing declined 10.4% to RMB7.72 billion.

• Gross margin for SaaS and AI dropped to 49.5% (from 62.6%), while Targeted Marketing margin improved to 94.0% (from 91.3%).

• Adjusted EBITDA margin was 6.5%, and adjusted net margin attributable to equity holders was 2.7%.

• Cash and bank balances stood at RMB1,995 million as of June 30, 2026.

Outlook and guidance

• Focus remains on advancing AI Native solutions, deepening integration with WeChat AI ecosystem, and expanding overseas and computing power businesses.

• Plans to launch new AI-driven products and further embed AI into organizational processes to enhance efficiency and growth.

• Continued investment in omni-channel operations and international expansion, especially in Japan, Europe, and Southeast Asia.