Zibuyu Group (2420) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 10.8% YoY to RMB3,325.1m; attributable net profit recovered to RMB150.8m from a RMB265.8m loss in 2023.

• Net operating cash flow reached a record RMB261.9m; the Board proposed a final dividend of HK$0.12 per share, subject to shareholder approval.

• Recovery reflected higher revenue and gross profit, lower inventory provisions and warehousing costs, and lower tax expense; reported gross-margin improvement also benefited from prior-year inventory clearance.

Financial highlights

• Revenue was RMB3,325.1m versus RMB3,000.3m; gross profit increased 26.4% to RMB2,471.3m.

• Operating profit was RMB162.2m versus an operating loss of RMB237.7m; profit before tax was RMB154.7m versus a loss of RMB247.2m.

• Attributable profit was RMB150.8m; basic and diluted EPS was RMB0.31 versus a loss per share of RMB0.53.

• Selling and distribution costs rose 8.5% to RMB2,226.0m, while G&A fell RMB47.5m to RMB110.2m; finance costs declined to RMB7.5m from RMB9.5m.

• Net operating cash flow was RMB261.9m versus RMB76.7m; cash and cash equivalents rose to RMB446.8m from RMB277.5m.

Outlook and guidance

• 2025 priorities include deepening core brands, growing non-Amazon and overseas offline channels, expanding sales in Europe and Asia, and developing Southeast Asian supply chains.

• Plans include using AI across business functions, advancing digital transformation, improving resource allocation, and broadening the international talent base.

• A 4.5-day workweek began in February 2025, with stated aims of improving employee well-being, efficiency and creativity.