Marketingforce Management (2556) H2 2024 earnings summary

Executive summary

• Revenue reached RMB1,558.6 million in 2024, up 26.5% year-over-year, driven by growth in AI + SaaS and precision marketing segments.

• Adjusted net profit turned positive at RMB79.2 million, a 385.6% improvement from a prior year loss, while IFRS net loss was RMB876.7 million due to fair value changes of convertible redeemable preferred shares.

• Listed on the Hong Kong Main Board in May 2024, with two subsequent share placings raising over HK$1.3 billion for AI development, M&A, and global expansion.

• Recognized with multiple industry awards, including top AI SaaS and intelligent marketing rankings for consecutive years.

• Strategic focus on AI-Agent platform commercialization, ecosystem expansion via M&A, and international growth.

Financial highlights

• AI + SaaS business revenue reached RMB842.2 million, up 19.9% year-over-year, with a gross margin of 86.3%.

• Precision marketing revenue grew 35.2% to RMB716.4 million, with gross margin at 14.0%.

• Gross profit increased 16.9% to RMB825.8 million; overall gross margin declined to 53.0% from 57.3% due to higher costs.

• Operating cash inflow was RMB140 million, with free cash flow turning positive to RMB127.9 million in 2024 from negative RMB27.7 million in 2023.

• Cash and equivalents, including restricted cash and time deposits, totaled RMB975.3 million at year-end.

Outlook and guidance

• 2025 is positioned as the commercial launch year for AI-Agent, with plans to accelerate platform development and expand vertical industry applications.

• At least two investments or acquisitions are targeted for 2025 to enhance product, talent, and customer base.

• Global expansion underway, focusing on supporting Chinese enterprises overseas and developing localized solutions for international markets, including the Middle East, Japan, Korea, Europe, and Southeast Asia.

• Intends to fully utilize recent capital raises by end of 2026 for AI R&D, M&A, global expansion, and working capital.