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Huitongda Network (9878.HK) Announces 2024 Annual Results; Member Stores Increased to 248,000; Net Profit Reaching RMB462 million
On 27 March 2025, Huitongda Network (9878.HK) announced its 2024 annual results, reporting a gross profit margin increase of 0.5 percentage points to 3.8%, and a net profit of RMB 462 million for the Year. It is also the sixth consecutive year that it has reported a positive operating cash inflow. Operationally, there was an increase in member stores’ penetration and stickiness, with registered member retail stores increasing by 5% to 248,000, and active member retail stores reaching 95,000. Building its work around “upgrades and innovation, quality and efficiency” during the Year, Huitongda Network specifically implemented its strategic upgrades across 5 areas, achieving satisfactory results. After prioritizing net profit and cash flow instead of operating scale, the change in operational strategy has allowed Huitongda Network to significantly improve its gross profit margin, reporting a 15% YoY increase during the Year. As a result, operating expenses as a percentage of gross profit also decreased by 2%, and the operating capital conversion cycle also improved by 5 days. In terms of its omnichannel network, the Company was able to build on its foundation of 248,000 member stores across 21 provinces and 25,000 villages and towns, further expanding its reach online, on social media, and on overseas channels. In 2024, Huitongda Network recorded sales of RMB3.6 billion through such new channels. Regarding its intelligent upgrades, there was also accelerated AI+SaaS development, with the Company seeing notable results on member store acquisition, value chain collaborations, and management efficiency. Currently, its Qiancheng Cloud SaaS+ platform has already fully integrated with mainstream large models such as DeepSeek. Along with the introduction of new applications such as “AI employees”, it is expected that such services will boost the trade flows between urban and rural areas. Based on the Company’s disclosure, in 2025, Huitongda Network is planning to maintain its focus on profit and cash flow, and will strive to expand its member store network and increase store stickiness, in order to boost platform GMV. By increasing the volume of direct procurement from leading brands while driving self-owned brands and new product categories development, the Company is also looking to further improve its gross profit margin, fast-tracking its business development and resuming business growth.
28/03/2025 Dissemination of a Financial Press Release, transmitted by EQS News. |
