ZO Future Group (2309) H2 2024 earnings summary

Executive summary

• Revenue increased 26.8% year-over-year to HK$275.2 million, driven by growth in the football club and new energy automobile segments.

• Loss attributable to owners rose sharply to HK$182.8 million, up 612.4% from the prior year, mainly due to higher costs, absence of football club compensation, and asset impairments.

• The Group completed the disposal of 24.34% of Birmingham City Football Club, retaining a 51.72% stake; the club was relegated to EFL League One.

• New energy automobiles segment launched, contributing HK$5.6 million in revenue; healthcare business ceased in March 2024.

Financial highlights

• Revenue: HK$275.2 million (2023: HK$217.1 million), up 26.8% year-over-year.

• Operating expenses: HK$570.6 million, up 36.4% year-over-year.

• Loss attributable to owners: HK$182.8 million (2023: HK$25.7 million).

• Basic loss per share: HK23.37 cents (2023: HK3.33 cents).

• Profit on sales of players' registration: HK$151.7 million (2023: HK$20.1 million).

• Other losses, net: HK$54.1 million, mainly from asset impairments and FX losses.

Outlook and guidance

• Management expects lower football club revenue and expenses in the next season due to relegation.

• Focus remains on expanding the new energy automobile business, targeting overseas markets.

• Cautious approach to business operations amid global uncertainties; proactive in managing liquidity and financial resources.