Zall Smart Commerce Group (2098) investor relations material

Executive summary

• Revenue rose 33.2% year-over-year to RMB90.9 billion, driven by supply chain management and trading business expansion.

• Net profit increased 71.7% to RMB70.0 million, with basic EPS at 0.78 RMB cents, despite a decrease in gross profit margin to 0.3%.

• Strengthened digital transformation, deepened vertical market presence, and enhanced integration of online and offline operations.

• Recognized for ESG leadership, ranked 160th in Fortune China 500, and as a national model market for digital and intelligent development.

• No interim dividend was declared for the period.

Financial highlights

• Supply chain management and trading contributed 99.7% of total revenue, up 33.3% year-over-year.

• Gross profit: RMB277.3 million, down 23.8% year-over-year; gross margin fell to 0.3%.

• Operating cash flow: Net outflow of RMB1,251.7 million, improved from prior year.

• Net gearing ratio increased to 33.4% from 23.7% at year-end 2024.

• Finance income rose 2.2% to RMB125.5 million; finance costs dropped 13.3% to RMB293.8 million.

Outlook and guidance

• Focus remains on digital transformation, expanding intelligent trading platforms, and enhancing supply chain services.

• Plans to further invest in digital technologies, big data, and AI to enhance B2B trading and supply chain services.

• Will continue to optimize capital structure, seek refinancing, and consider asset disposals to improve liquidity.