Yoho Group Holdings (2347) H2 2023 earnings summary

Executive summary

• FY22/23 GMV rose 6.3% to HK$929.2m and revenue rose 8.2% to HK$855.1m amid a sluggish Hong Kong retail market.

• Net profit was HK$6.3m versus a HK$0.2m loss; adjusted net profit declined to HK$23.0m from HK$26.2m as operating investment and post-listing costs increased.

• Growth initiatives included a marketplace launch, a third flagship store and same-day collection through Japan Home Centre; a final dividend of HK$0.024 per share was proposed.

Financial highlights

• Revenue increased 8.2% to HK$855.1m; cost of goods sold rose 8.5% to HK$723.9m and gross profit grew 6.9% to HK$131.2m.

• Gross margin was 15.3% versus 15.5%, reflecting broader product selection, competitive pricing and promotional campaigns.

• Net profit was HK$6.3m versus a HK$0.2m loss; adjusted net profit, excluding preferred-share fair-value changes, listing expenses and controlling-shareholder share-based payment, was HK$23.0m versus HK$26.2m.

• Cash position reached HK$209.9m at 31 March 2023, up from HK$126.3m; net cash from operating activities was HK$9.4m excluding listing-expense settlements.

Outlook and guidance

• FY23/24 plans include a mobile app launch, fulfillment services for marketplace merchants and two New Territories stores, subject to rental conditions and suitable premises.

• By end-2023, the target was 60,000 non-repetitive SKUs across 1P and 3P; marketplace commissions and future value-added services are expected to support growth.

• Plans include expanding quick-commerce delivery, establishing a dedicated China business team and developing GBA sales through KOLs and livestreaming.

• Management expressed cautious optimism on retail recovery, while noting that a return to pre-pandemic levels may take time.