Yoho Group Holdings (2347) H1 2023 earnings summary

Executive summary

• Revenue rose 30.0% YoY to HK$448.2 million and GMV increased 27.2% to HK$482.9 million in 1H22/23.

• Reported net profit was HK$1.0 million versus a HK$18.9 million loss; adjusted net profit rose to HK$15.8 million from HK$6.8 million.

• OMO operations expanded customer activity, while the marketplace soft-launched in November 2022 to add third-party products and commission income.

Financial highlights

• Gross profit increased 35.9% to HK$67.8 million; gross margin expanded to 15.1% from 14.5%, while cost of goods sold rose 29.0% to HK$380.4 million.

• Selling and distribution expenses were HK$36.8 million and administrative expenses HK$15.9 million; total operating expenses eased to 11.8% of revenue from 12.1%.

• Other income included HK$2.2 million of Employment Support Scheme grants and HK$0.7 million of interest income; other losses narrowed to HK$2.1 million from HK$10.9 million.

• Basic and diluted EPS were each HK$0.27, compared with a HK$10.40 loss per share in 1H21/22.

• Listing expenses were HK$12.5 million, down from HK$14.8 million in 1H21/22.

Outlook and guidance

• Management remained optimistic about the coming half year, citing cash reserves, profitability and e-commerce opportunities while acknowledging macroeconomic uncertainty.

• The 1P strategy targets customer acquisition, repeat purchases, broader product selection and stronger sourcing in consumer electronics and home appliances.

• Two large New Territories stores were planned for 2023, subject to rental conditions and suitable premises; offline expansion is intended to support quick-commerce delivery.

• The 3P marketplace soft-launched in mid-November 2022, expanding categories from five to twelve and targeting commission and merchant-service income with lower inventory needs.