Marketingforce Management (2556) H1 2025 earnings summary

Executive summary

• Revenue rose 25.5% year-over-year to RMB928.3 million for the six months ended June 30, 2025, driven by strong demand for AI + SaaS and precision marketing services.

• Net profit turned positive at RMB35.8 million, compared to a net loss of RMB820.2 million in the prior year period.

• Adjusted net profit (non-IFRS) surged 77.7% year-over-year to RMB84.7 million, exceeding the full-year 2024 adjusted net profit in just six months.

• AI + SaaS business revenue grew 26.0% to RMB504.2 million, with a gross margin of 80.4%; precision marketing revenue increased 25.0% to RMB424.1 million.

• Operational efficiency improved, with reduced selling, administrative, and R&D expenses as a percentage of revenue.

Financial highlights

• Gross profit increased 14.7% year-over-year to RMB450.8 million; overall gross margin declined to 48.6% from 53.1% due to business mix.

• AI + SaaS gross margin was 80.4% (down from 88.3%); precision marketing gross margin was 10.8% (down from 11.7%).

• Free cash outflow was RMB793.2 million, up from RMB61.0 million in the prior year period.

• Gearing ratio improved to 60.7% from 78.4% at year-end 2024.

• Liquidity stood at RMB1,837.2 million as of June 30, 2025.

Outlook and guidance

• Focus on deepening AI Agent integration, international expansion, sustainable growth via innovation and M&A, and operational efficiency.

• Plans to launch new AI Agent products and enhance the Tforce large model/AI-Agentforce platform in the second half of 2025.

• Accelerate global expansion, targeting new international markets and building local agent teams.

• Targeting increased penetration in both SMB and KA segments, with emphasis on recurring revenue and operational efficiency.