Yoho Group Holdings (2347) H1 2025 earnings summary

Executive summary

• H1 FY24/25 revenue fell 2.3% YoY to HK$387.0m, while gross margin rose to 15.2% and net profit increased 8.5% to HK$11.2m.

• OMO operations and a broad product range helped limit declines amid a 10.8% contraction in Hong Kong retail sales; 3P marketplace GMV grew 233.8%.

• Priorities include integrating J SELECT, expanding the 3P marketplace and developing Greater Bay Area cross-border sales.

Financial highlights

• Revenue fell 2.3% to HK$387.0m; gross profit rose 0.1% to HK$59.0m as cost of goods sold declined 2.8% to HK$328.0m.

• Profit before tax was HK$12.9m versus HK$11.5m; net profit rose to HK$11.2m from HK$10.3m, mainly on lower selling and distribution expenses.

• Adjusted net profit, excluding share-option expense, rose 12.5% to HK$11.8m from HK$10.5m; adjusted net profit margin was 3.0%.

• Selling and distribution expenses fell to HK$32.0m, while administrative expenses rose to HK$18.1m, mainly due to staff costs; operating expenses remained 12.9% of revenue.

• An interim dividend of HK$0.015 per share was proposed, totaling HK$7.49m; the prior-year interim dividend was nil.

Outlook and guidance

• The 1P model will remain focused on electronics and appliances, particularly major appliances, supported by local supply-chain, installation and appliance-swap services.

• Plans include adding premium 3P merchants, scaling advertising and 3PL services, and extending logistics and fulfillment solutions.

• Greater Bay Area expansion is underway through a mainland subsidiary and localized team, with mainland e-commerce channels and KOL partnerships planned; progress targeted in FY24/25.

• Dual-brand plans position YOHO for mass-market customers and J SELECT for premium consumers, with shared logistics, warehousing and backend resources.