Yoho Group Holdings (2347) H2 2024 earnings summary

Executive summary

• FY23/24 GMV was HK$926.3m, down 0.3% YoY, and revenue was HK$841.1m, down 1.6%; H2 GMV and revenue rose 10.2% and 9.3% YoY, respectively.

• Net profit increased to HK$22.3m from HK$6.3m, largely reflecting nil listing expenses versus HK$12.5m in FY22/23 and disciplined cost management.

• Adjusted net profit was HK$23.4m versus HK$23.0m; the proposed final dividend rose to HK$0.030 per share from HK$0.024.

Financial highlights

• Revenue fell 1.6% to HK$841.1m; gross profit declined 7.1% to HK$121.8m, with gross margin at 14.5% versus 15.3%.

• Profit before tax was HK$26.4m versus HK$9.8m; net profit was HK$22.3m versus HK$6.3m, and basic and diluted EPS were HK4.46 cents versus HK1.31 cents.

• Other income increased to HK$8.9m from HK$6.2m, mainly due to HK$4.8m of interest income; selling and distribution expenses fell to HK$66.6m from HK$76.5m.

• Adjusted net profit, a non-HKFRS measure, was HK$23.4m versus HK$23.0m; it adjusts for fair-value changes, listing expenses and specified share-based payments and options.

Outlook and guidance

• Hong Kong retail conditions are expected to remain challenging, with pressure potentially easing in H2 2024 as lower interest rates, renminbi appreciation and more mainland tourist visits support spending.

• 1P electronics and appliances remain the primary near-term contributor; plans include strengthening supply chains, expanding categories and using AI and data analytics to deepen customer engagement.

• 3P marketplace investment will continue through marketing, broader product selection, logistics, merchant advertising and monetization tools; 3P is expected to drive future GMV and cross-selling.

• GBA expansion strategies are planned for the coming fiscal year; Southeast Asia expansion remains exploratory, while no schedule has been set for new stores in the eastern or western New Territories.