Zibuyu Group (2420) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 6.3% YoY to RMB1,462.1m; gross profit increased 8.0% to RMB1,080.9m, and attributable profit reached RMB91.4m versus RMB10.3m.

• Profit recovery reflected higher sales, lower freight, insurance, warehousing and labor costs, inventory optimization, and operating-efficiency measures.

Financial highlights

• Operating profit was RMB97.7m versus RMB15.8m; profit before tax was RMB93.3m versus RMB10.7m, and income tax expense was RMB2.0m versus RMB0.4m.

• Net cash from operating activities rose 127.0% to RMB130.1m from RMB57.3m; cash and cash equivalents were RMB371.7m at 30 June 2024.

• Selling and distribution expenses rose 1.9% to RMB941.7m, mainly on Amazon marketing; G&A fell 21.0% to RMB57.8m, mainly on lower employee-benefit expenses.

Outlook and guidance

• H2 priorities include diversifying sales channels, strengthening platform partnerships and brand and product competitiveness, pursuing higher-end positioning, and developing broader channel coverage.

• Plans include improving organizational efficiency and talent, using data-driven management, and investing in information systems; management expects steady performance improvement and seeks a second growth curve.