XXF Group (2473) H2 2024 earnings summary

Executive summary

• Revenue rose 12.2% year-over-year to RMB1,464.1 million, driven by new outright car sales and expanded sales network.

• Gross profit increased 4.6% to RMB438.4 million, but gross margin declined to 29.9% due to lower margin in outright car sales.

• Adjusted net profit (non-IFRS) grew 3.1% to RMB48.0 million, while reported net profit dropped 63.8% to RMB39.7 million, mainly due to fair value changes in shares with redemption rights.

• Expansion into lower-tier cities and international markets, with 89 self-operated sales outlets and new overseas business contributing RMB41.1 million in revenue.

• Technology upgrades, including AI and RPA, improved operational efficiency and reduced costs.

Financial highlights

• Revenue: RMB1,464.1 million (+12.2% YoY); Gross profit: RMB438.4 million (+4.6% YoY).

• Profit before tax: RMB53.4 million (-58.9% YoY); Net profit: RMB39.7 million (-63.8% YoY).

• Adjusted net profit: RMB48.0 million (+3.1% YoY).

• Gross margin: 29.9% (down from 32.1% YoY).

• EPS: Basic 2.58 RMB cents (down from 10.08 RMB cents YoY).

Outlook and guidance

• Confident in 2025 growth, focusing on lower-tier city expansion, overseas market development, and digital transformation.

• Plans to further consolidate domestic market position and accelerate globalization.

• Continued investment in technology to enhance customer experience and operational efficiency.