Xuan Wu Cloud Technology Holdings (2392) H2 2024 earnings summary

Executive summary

• Revenue fell 10.1% YoY to RMB1,151.3m as low-margin business was deliberately reduced; gross profit rose 2.5% and attributable earnings turned positive at RMB6.9m.

• SaaS reached 63.6% of revenue for the first time, supported by 23.8% growth; profitability improved through a shift toward higher-margin business and tighter cost control.

Financial highlights

• Revenue was RMB1,151.3m, down 10.1% YoY; gross profit was RMB209.8m, up 2.5%, and operating gains were RMB2.9m versus operating losses of RMB68.9m in 2023.

• Attributable earnings were RMB6.9m versus a loss of RMB72.4m; basic and diluted EPS were RMB0.012 versus losses per share of RMB0.129.

• Loss before tax narrowed to RMB0.9m from RMB71.7m; total loss for the year was RMB1.1m, including a RMB8.0m loss attributable to non-controlling interests.

• Selling, administrative and R&D expenses declined 24.2%, 20.8% and 29.2% YoY, respectively; cost of sales fell 12.6%.

Outlook and guidance

• 2025 priorities are AI + SaaS product integration, product standardisation, refined management and global expansion; no numerical financial guidance was stated.

• Plans include developing vertical AI Agents, advancing 5G messaging and standard products, and expanding distribution through cloud and ecosystem partners.

• Overseas plans target broader market coverage, products and talent, new operator partnerships, and localised operations during 2025.