High Templar Tech (HTT) Q1 2024 earnings summary

Executive summary

• Total revenues rose 155.5% year-over-year to RMB55.8 million, driven by the last-mile delivery business, while the QD Food business was fully wound down in 2023.

• Net loss attributable to shareholders was RMB73.6 million, compared to net income of RMB414.3 million in Q1 2023.

• The last-mile delivery business, launched in late 2022, generated RMB53.8 million in Q1 2024, up from RMB0.3 million a year ago.

Financial highlights

• Cost of revenues increased to RMB58.0 million, mainly from last-mile delivery, versus RMB22.8 million in Q1 2023.

• General and administrative expenses rose 11.8% to RMB57.3 million due to higher staff headcount.

• Research and development expenses increased 51.5% to RMB15.9 million, also due to staff expansion.

• Loss from operations widened to RMB72.5 million from RMB28.9 million year-over-year.

• Interest and investment income, net, fell 77.5% to RMB54.2 million, and loss on derivative instruments was RMB36.5 million versus a gain of RMB286.9 million in Q1 2023.

Outlook and guidance

• Management remains committed to executing the business transition to logistics and prudent cash management.

• The last-mile delivery business is scaling in Australia and New Zealand, with further expansion anticipated.