YSB Inc (9885) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 18.9% YoY to RMB16,972.3m; gross profit increased 21.3% to RMB1,740.9m, while IFRS loss widened to RMB3,206.5m.

• Adjusted net profit was RMB130.5m, versus an adjusted net loss of RMB124.9m in 2022; total GMV increased 24.0% to RMB46,912m.

Financial highlights

• Self-operation revenue grew 18.6% to RMB16,036.2m; Online Marketplace revenue rose 25.8% to RMB873.1m; Other Businesses revenue increased 2.1% to RMB62.9m.

• Cost of sales rose 18.6% to RMB15,231.4m, while gross profit increased 21.3% to RMB1,740.9m.

• IFRS loss per share was RMB8.26, compared with RMB11.88 in 2022.

Outlook and guidance

• Targeting RMB100bn GMV over the next two to three years, with plans to expand upstream engagement, supply chain capabilities and digital services.

• Plans include expanding TCM decoction pieces, adding warehouse and intra-city delivery capacity, growing own-brand launches, and deploying tens of thousands of ClouDiagnos testing devices nationwide.

• Residual Global Offering proceeds are expected to be fully used for stated purposes by December 2025.