East Buy (1797) H1 2025 earnings summary

Executive summary

• Revenue from continuing operations fell 9.3% year-over-year to RMB2.19 billion for the six months ended 30 November 2024, mainly due to the disposal of Time with Yuhui and a decline in GMV.

• Net loss from continuing operations was RMB96.5 million, compared to a net profit of RMB160.7 million in the prior year period; excluding the one-off impact from the disposal of Time with Yuhui, net profit would have been RMB32.7 million.

• Gross profit margin improved to 33.6% from 32.9% year-over-year, reflecting a healthier product mix and growth in private label products.

• Adjusted loss for the period was RMB1.6 million, compared to an adjusted profit of RMB434.3 million a year earlier.

• The company expanded private label product lines to 600 SKUs, with private label contributing 37% of total GMV.

Financial highlights

• Gross profit from continuing operations decreased 7.4% to RMB735.1 million.

• Gross margin improved to 33.6% from 32.9% year-over-year, driven by private label and livestreaming e-commerce.

• Other income, gains and losses rose 83% to RMB113.9 million, mainly from fair value changes and exchange gains.

• Selling and marketing expenses increased 24.3% to RMB459.3 million; administrative expenses surged 180.7% to RMB391.9 million, largely due to the distribution of undistributed profits from Time with Yuhui.

• Cash and cash equivalents stood at RMB1.7 billion, with a gearing ratio of 17.4% as of 30 November 2024.

Outlook and guidance

• Focus remains on expanding private label products, improving supply chain, and increasing paid memberships, especially through the APP and livestreaming channels.

• Plans to further penetrate regions with specialty products and invest in high-frequency household categories, emphasizing quality and value.

• Continued cost control and operational efficiency measures to support sustainable growth.

• No interim dividend declared for the period.