Xuan Wu Cloud Technology Holdings (2392) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 22.2% YoY to RMB647.5 million, led by CRM SaaS growth; net loss narrowed 69.5% to RMB6.1 million.

• SaaS represented 56.4% of revenue for the first time, while total gross profit was nearly flat and gross margin declined.

• Priorities include scaling SaaS and AI products, expanding standardised offerings and overseas business, and targeting FY 2024 break-even.

Financial highlights

• Revenue was RMB647.5 million versus RMB530.0 million YoY, up 22.2%; gross profit was RMB101.2 million versus RMB100.6 million, up 0.6%.

• Operating loss narrowed to RMB4.1 million from RMB19.6 million; loss before tax narrowed to RMB5.9 million from RMB20.7 million.

• Net loss was RMB6.1 million versus RMB20.2 million YoY; basic and diluted loss per share improved to RMB0.012 from RMB0.037.

• Operating expenses decreased 13.6% YoY amid cost controls; selling, administrative and R&D expenses fell 9.0%, 12.2% and 20.5%, respectively.

Outlook and guidance

• FY 2024 aim is steady business development, stronger self-sustaining capacity and profitability, with a break-even annual result.

• H2 priorities include growing top consumer-goods accounts with SaaS + AI, expanding standardised products to mid-tier clients, and investing in distribution channels.

• Marketing Cloud plans to deepen data marketing and strengthen 5G messaging capabilities; overseas expansion will focus on Southeast Asia and Latin America.