Youzan Technology (8083) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 increased by 4% year-over-year to RMB714 million, driven by merchant solutions growth despite a slight decline in subscription solutions revenue.

• Net profit reached RMB73 million in 2025H1, reversing a loss in the prior year period.

• Gross profit margin declined to 65.4% in 2025H1 from 68.4% in 2024H1 due to higher costs, especially in logistics and technology services.

• Net cash from operating activities reached RMB87 million, reversing a negative cash flow in the prior year; cash and cash equivalents stood at RMB939.8 million as of 30 June 2025.

• No interim dividend was declared for the period.

Financial highlights

• Merchant solutions revenue increased 10.3% year-over-year to RMB338.2 million, while subscription solutions revenue declined 1% to RMB373.6 million.

• Adjusted EBITDA (non-HKFRS) nearly doubled year-over-year to RMB70.2 million.

• Adjusted non-HKFRS earnings for the period were RMB82.4 million, up from RMB51.8 million.

• Basic EPS was RMB0.0023, compared to a loss per share of RMB0.0005 in the prior year.

• Semi-annual ARPU rose 15% year-over-year to RMB13,301; average sales per merchant increased 11% year-over-year to approximately RMB930,000.

Outlook and guidance

• Focus remains on business growth with steady profit margin improvement and increased integration of intelligent technologies across operations.

• No specific plans for material investments or acquisitions as of 30 June 2025.