Zall Smart Commerce Group (2098) H2 2024 earnings summary

Executive summary

• Revenue rose 29.6% year-over-year to RMB162.4 billion, driven by supply chain management and trading business expansion.

• Net profit increased to RMB93.4 million from RMB65.7 million year-over-year.

• Gross profit margin declined to 0.43% from 0.68% due to lower margins in supply chain management and trading.

• No dividend was declared for the year.

Financial highlights

• Revenue: RMB162.4 billion (up from RMB125.3 billion year-over-year).

• Gross profit: RMB699.0 million (down from RMB846.6 million year-over-year).

• Net profit: RMB93.4 million (up from RMB65.7 million year-over-year).

• Basic and diluted EPS: RMB1.04 cents (up from RMB0.41 cents year-over-year).

• Net assets: RMB14.3 billion (up from RMB14.2 billion year-over-year).

Outlook and guidance

• Focus on digital transformation, expanding B2B trading, and enhancing digital supply chain services.

• Plans to improve operating cash flows, refinance borrowings, and dispose of non-core assets to raise capital.

• Continued investment in digital technologies and new trade models to drive efficiency.