YSB Inc (9885) H1 2024 earnings summary

Executive summary

• H1 revenue rose 10.6% YoY to RMB8,813.955m; IFRS profit was RMB13.354m versus a RMB3,176.580m loss in H1 2023, which included RMB3,171.9m of fair-value losses on financial liabilities.

• Adjusted net profit increased 30.3% YoY to RMB91.411m; total GMV grew 8.1% to RMB23,830m.

• Monthly active buyers rose 20.4% YoY to over 425,000; monthly paying buyers increased 19.6% to 396,000, with a paying ratio above 93%.

Financial highlights

• Revenue increased 10.6% YoY to RMB8,813.955m; gross profit rose 7.9% to RMB881.716m.

• Basic and diluted EPS was RMB0.03, versus a loss per share of RMB23.70 in H1 2023.

• Adjusted net profit, excluding fair-value changes in financial liabilities, share-based payment and listing expenses, rose 30.3% to RMB91.411m; adjusted margin was 1.0% versus 0.9%.

• Operating cash flow was RMB418.9m; cash and cash equivalents were RMB1,404.9m at June-end, up 88.4% from 31 December 2023.

Outlook and guidance

• Priorities include improving marketplace seller tools and product selection, expanding TCM products and standards, and deepening industry-chain digitalisation.

• Plans include strengthening the smart supply chain, expanding intra-city half-day delivery, and testing medical cold-chain delivery before wider rollout.

• Targeted Product Launch plans focus on broader pharmaceutical partnerships and expanding Leyaoshi products and omni-channel coverage.

• Technology investment will support primary-care digital solutions; longer-term plans include evaluating industry-chain M&A, medical approvals and equity investments.