High Templar Tech (HTT) Q2 2024 earnings summary

Executive summary

• Achieved total revenues of RMB53.3 million ($7.3 million) in Q2 2024, up from RMB11.1 million year-over-year, driven by last-mile delivery business growth.

• Net income attributable to shareholders was RMB99.8 million ($13.7 million), reversing a net loss of RMB76.9 million in Q2 2023.

• Last-mile delivery business generated RMB46.2 million in revenue, up from RMB4.3 million year-over-year; QD Food business fully wound down.

Financial highlights

• Operating costs and expenses rose to RMB110.8 million from RMB106.7 million year-over-year.

• Cost of revenues increased to RMB46.2 million, mainly due to last-mile delivery service costs.

• General and administrative expenses decreased by 27.9% to RMB47.2 million, reflecting lower professional service fees.

• Research and development expenses rose 53.4% to RMB15.2 million, driven by increased headcount and salaries.

• Loss from operations narrowed to RMB57.4 million from RMB94.1 million year-over-year.

• Interest and investment income, net, surged to RMB89.5 million from RMB6.8 million year-over-year.

• Gain on derivative instruments increased to RMB58.4 million from RMB10.4 million year-over-year.

Outlook and guidance

• Company remains committed to business transition and prudent cash management to safeguard its balance sheet.

• Expects continued focus on innovative logistics services to meet global e-commerce demand.