Xinhua Winshare Publishing and Media Company (811) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB5,788 million, up 6.64% year-over-year, driven by educational services and online sales.

• Net profit was RMB752 million, down 4.63% year-over-year, mainly due to increased income tax expenses from changes in preferential tax policies.

• Gross profit margin declined slightly to 38.46%, with principal business margin at 37.73%.

• Interim dividend of RMB0.19 per share proposed, totaling RMB234.43 million, pending EGM approval.

• Earnings per share was RMB0.58, down 6.45% year-over-year.

Financial highlights

• Total profit for H1 2024 was RMB848 million, up 5.83% year-over-year.

• Operating costs rose 7.29% to RMB3,562 million, reflecting expanded sales scale.

• Selling expenses increased 8.33% to RMB716 million, mainly from higher advertising, e-commerce fees, and labor costs.

• Administrative expenses rose 4.36% to RMB749 million, primarily due to labor cost increases.

• Investment income grew 21.68% to RMB123 million, driven by higher dividends from Bank of Chengdu and Wan Xin Media.

Outlook and guidance

• Focus on high-quality development, digital transformation, and integrated online-offline business models.

• Plans to optimize management, deepen innovation, and enhance educational and reading service capabilities.

• Continued investment in logistics, capital operations, and supply chain efficiency to improve efficiency and diversify income.