Yoho Group Holdings (2347) H1 2024 earnings summary

Executive summary

• 1H23/24 revenue fell 11.6% YoY to HK$396.278m and GMV declined 10.0% to HK$434.7m amid weak demand; net profit rose to HK$10.283m from HK$1.007m.

• Adjusted net profit fell to HK$10.519m from HK$15.751m; the reported profit increase mainly reflected lower Listing expenses and higher bank interest income.

• Registered members reached 1.048m, up 19.6% YoY, while orders fell 8.6% to 235,000 and average basket value declined 1.6% to HK$1,849.

• Growth was moderated in favor of profitability, alongside continued investment in 1P direct sales, the 3P marketplace and customer experience.

Financial highlights

• Revenue was HK$396.278m versus HK$448.200m; gross profit was HK$58.937m versus HK$67.841m.

• Gross margin was 14.9%, down from 15.1% YoY; net profit margin rose to 2.6% from 0.2%.

• Basic and diluted EPS were HK2.06 cents versus HK0.27 cents.

• Other income rose to HK$4.280m from HK$2.902m, primarily due to interest income; Listing expenses fell to nil from HK$12.5m.

• Adjusted net profit, excluding fair-value changes, Listing expenses and share-option grants, was HK$10.519m versus HK$15.751m.

Outlook and guidance

• FY23/24 priorities include strengthening the 1P business and OMO operations, ramping the 3P marketplace and reaching 60,000 unique SKUs by year-end.

• Plans include refining platform features and recommendations, developing a mobile app, and assessing two additional stores in New Territories East and West.

• 3P plans include onboarding quality merchants, expanding product categories, developing merchant advertising and future fulfillment services.

• Strategic acquisitions are being explored to expand scale, strengthen the customer base and improve supply-chain efficiency; a dedicated China business team is planned for coming years.