20.11.2024 - Page 22 of 24 - NEW STOCKBURGER

Meta Taps Former Salesforce AI Chief To Lead Enterprise AI Push

20.11.2024 by admin

Meta Platforms Inc. META has appointed Clara Shih, former Salesforce Inc CRM artificial intelligence chief, to head its newly formed Business AI division, marking a significant expansion of the social media giant’s AI strategy for enterprise customers.

What Happened: Shih, who announced her move via LinkedIn on Tuesday, will spearhead Meta’s efforts to develop AI tools for businesses using Meta’s social platforms. “Our vision is to make cutting-edge AI accessible to every business, empowering all to find success and own their future in the AI era,” Shih stated.

The appointment comes as Meta accelerates its unique open-source AI approach, differentiating itself from competitors like Microsoft Corp. MSFT-backed OpenAI and Alphabet Inc.’s GOOG GOOGL Google.

Rather than monetizing AI through direct subscriptions, Meta aims to enhance its existing advertising and social media platforms using its Llama language models.

Why It Matters: Meta’s AI push has gained momentum under CEO Mark Zuckerberg‘s leadership. During the company’s third-quarter earnings call, Zuckerberg revealed plans for Llama 4, announcing an unprecedented computing infrastructure utilizing over 100,000 Nvidia Corp. NVDA H100 GPUs. The next-generation model is scheduled for release in early 2025.

The company has already begun integrating AI-generated content into its platforms, including AI-created photo carousels on Facebook and AI chatbots on Instagram.

Bank of America Securities recently labeled Meta an “AI Story,” citing the growing adoption of Llama and Meta AI. The firm projects AI-driven advertising improvements to materialize by 2025.

The move follows Meta’s strong third-quarter performance, where the company exceeded analyst expectations while signaling increased capital investment in AI infrastructure. Zuckerberg has touted the company’s $405 billion Llama 3.1 model as having superior cost performance compared to competing closed models.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Finance News

ECB warns of 'bubble' in AI stocks as funds deplete cash buffers

20.11.2024 by admin

FRANKFURT (Reuters) – The European Central Bank warned on Wednesday about a “bubble” in stocks related to artificial intelligence (AI), which could burst abruptly if investors’ rosy expectations are not met.

The warning came as part of the ECB’s twice-yearly Financial Stability Review, a laundry list of risks ranging from wars and tariffs to cracks in the plumbing of the banking system.

The central bank for the 20 countries that share the euro noted the stock market, particularly in the United States, had become increasingly dependent on a handful of companies perceived as the beneficiaries of the AI boom.

“This concentration among a few large firms raises concerns over the possibility of an AI-related asset price bubble,” the ECB said. “Also, in a context of deeply integrated global equity markets, it points to the risk of adverse global spillovers, should earnings expectations for these firms be disappointed.”

The ECB noted investors were demanding a low premium to own shares and bonds while funds had cut their cash buffers.

“Given relatively low liquid asset holdings and significant liquidity mismatches in some types of open-ended investment funds, cash shortages could result in forced asset sales that could amplify downward asset price adjustments,” the ECB said.

Among other risks, the ECB flagged the euro area was vulnerable to more trade fragmentation – a key source of concerns for policymakers and investors since Donald Trump won the U.S. Presidential election earlier this month.

The President-elect had made tariffs a key element of his pitch to voters during the campaign and several ECB policymakers have said these measures, if implemented, would hurt growth in the euro area.

The ECB also noted euro area governments – particularly Italy and France – would be borrowing at much higher interest rates over the coming decade, strengthening the need for prudent fiscal policies.

(Reporting By Francesco Canepa; Editing by Alex Richardson)

news

Earnings News

NaaS Technology Inc. Reports Unaudited 2024 Third Quarter Financial Results

20.11.2024 by admin

BEIJING, Nov. 20, 2024 /PRNewswire/ — NaaS Technology Inc. (“NaaS” or the “Company”) NAAS, the first U.S. listed EV charging service company in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Highlights for the Third Quarter of 2024:

Accomplished significant net profit milestone in the third quarter of 2024.
- Non-IFRS net profit^[1] in the third quarter of 2024 reached RMB20.6 million (US$2.9 million). IFRS net loss approached breakeven with a historical low of RMB8.3 million (US$1.2 million).
- Gross profit margin reached a historical high of 57% for the third quarter of 2024.
Strategic business focus started to take effect with the core charging services business continuing to deliver robust growth.
- Charging services revenue increased by 36% year over year for the third quarter of 2024, accounting for 95% of total revenue.
- Charging services business continued to realize positive network effects that increased the proportion of orders with positive NTR^[2] to a record high of 73% in the third quarter of 2024.
Continuous progress in AI-driven technology, with NaaS Energy Fintech (NEF) system strengthening our value proposition to users and charging operators within our ecosystem.
- Number of transaction users through the Company’s platform was up by 34% year over year for the third quarter of 2024 and the cumulative number of connected chargers was up by 49% year over year for the third quarter of 2024, whilst sales expense decreased by 81% year over year for the third quarter of 2024, reflecting improved cost efficiency.
- Deployment of the “Zhejiang Province Charging Infrastructure Governance and Supervision Service Platform” supports the Zhejiang provincial government to optimize EV charging supply/demand balance and signifies NEF’s both business and financial value.

“We reached a significant financial milestone in the third quarter of 2024, delivering a positive non-IFRS net profit for the first time,” said Ms. Yang Wang, Chief Executive Officer of NaaS. “This accomplishment not only reflects our effectiveness in driving profitability but also marks a pivotal point in our growth strategy. By concentrating on our core charging services – which exhibit strong potential for profitability and growth – and leveraging our technology and data insights, we are actively enhancing the industry’s supply and demand connection. The surge in charging demand and the dispersed distribution of charging stations have heightened the market’s need for AI-driven and digital charging solutions to allocate resources effectively. Our NaaS Energy Fintech system and ongoing upgrades empower charging operators to improve operational efficiency, making us an essential partner in their charging infrastructure development efforts. Through strategic focus and resource optimization technology, we are well-positioned to capitalize on market developments and drive the Company’s sustainable growth.”

Mr. Steven Sim, Chief Financial Officer of NaaS, added, “In the third quarter of 2024, we made significant strides in profitability, achieving four consecutive quarters of gross margin improvement, culminating in a record high of 57%. This progress was propelled by our strategic focus on core charging services business and disciplined approach to efficiency enhancement and cost reduction, which have led to substantial decreases in operating costs through refined management and resource optimization. Moreover, by proactively discontinuing lower-margin offline businesses, we have significantly bolstered our financial health. These results demonstrate our commitment to disciplined financial management and delivering sustained value for our stakeholders.”

Business Updates:

Strategy

1. Highlighting AI-Driven Evolution in EV Charging at CIFTIS 2024

In September 2024, Ms. Yang Wang, Chief Executive Officer of NaaS, delivered a keynote speech at the 2024 China International Fair for Trade in Services (CIFTIS) during the UAE-Beijing Economic Forum. Her remarks emphasized China’s accelerating transition from traditional fuel to electric vehicles and AI’s pivotal role in reshaping the transportation energy landscape.

2. Strategic Emphasis on Interconnectivity Charging Business and AI Innovations

In October 2024, NaaS announced a strategic emphasis on its interconnectivity charging business, leveraging AI technology and industry partnerships to accelerate ecosystem development on both the supply and demand sides of China’s rapidly growing electric vehicle charging industry. The company is expanding its charging station network by attracting local operators with advanced AI-powered services. NaaS has made significant investments in developing neural network algorithms to optimize charging efficiency and elevate the user experience. The NEF (NaaS Energy Fintech) system, introduced last year, employs advanced AI algorithms to intelligently manage site selection for charging stations, revenue assessments, operational scheduling, maintenance, and more.

Ecosystem

1. Participation in Zhejiang Province’s Charging Infrastructure Governance and Regulatory Service Platform

In July 2024, NaaS participated in the development and launch of the “Zhejiang Province Charging Infrastructure Governance and Regulatory Service Platform.” This platform utilizes real-time data to achieve a scientifically planned layout of charging infrastructure. It optimizes existing charging facilities, enhances the matching efficiency between supply and demand for new energy vehicle charging, and effectively promotes high-quality development of the charging infrastructure industry in Zhejiang Province. This initiative further advances major actions such as promoting new energy vehicles in rural areas.

2. Strategic Cooperation with FAW-Volkswagen and IM Motors

In August 2024, NaaS announced a deep cooperation with FAW-Volkswagen in the field of charging services. Together with its strategic partner Kuaidian, NaaS is sharing a nationwide network of quality public charging stations and services to provide intelligent, efficient, and convenient charging experiences for FAW-Volkswagen new energy vehicle owners. On September 26, 2024, NaaS entered a strategic partnership with IM Motors, an electric vehicle joint venture among Alibaba, SAIC Motor, and Zhangjiang Hi-Tech. This collaboration significantly expands NaaS’ automotive ecosystem partnerships, leveraging its extensive nationwide charging network to offer IM Motors’ customers enhanced service features.

3. Partnership with Leading Charging Station Operator in Fujian Province

In October 2024, NaaS announced a strategic partnership with a leading regional charging station operator in Fujian Province. This collaboration will integrate over 100 charging stations and more than 1,600 DC fast chargers into NaaS’ strategic partner Kuaidian’s charging service network. The partnership focuses on charging facility interconnectivity, targeted traffic guidance, and seamless payments, enhancing the availability and convenience of charging services in the region.

4. Expansion in charger connections to enhance supply-side infrastructure

In October 2024, NaaS announced that as of September 30, 2024, the Company has connected approximately 1.15 million chargers to its charging network. The rapid expansion in the charging network underscores the Company’s dedication to enhancing China’s supply-side infrastructure and providing efficient, accessible EV charging solutions nationwide.

ESG

1. Participation in China’s First Carbon Inclusive City Cooperation Alliance

In July 2024, at the Hubei Carbon Market’s 10^th anniversary event, China’s first Carbon Inclusive City Cooperation Alliance was officially established. As a green and low-carbon scenario provider for new energy vehicle charging services, NaaS joined the alliance as an inaugural member. The alliance includes 32 enterprises such as Tencent, Alipay, Amap, and China Merchants Bank, covering carbon-inclusive managers and platform operators in multiple cities including Beijing, Shanghai, Guangzhou, and Shenzhen.

2. Release of 2023 Environmental, Social, and Governance Report

In August 2024, NaaS released its 2023 Environmental, Social, and Governance report. The report outlines NaaS’ progress toward its long-term ESG goals, central to the company’s vision and mission. It details strategic initiatives to weave sustainability into various sectors, aligned with its vision to “Empower the World with Green Energy.” The report highlights the Company’s innovative business model driving energy transitions, efforts toward green and low-carbon development, and strategies to sustainably rejuvenate rural areas.

3. Joining the China ESG Alliance as the First Member in EV Charging Service Sector

In October 2024, NaaS announced that it joined the China ESG Alliance as the first member from China’s electric vehicle charging sector. This strategic move underscores NaaS’ dedication to advancing sustainable practices and enhancing green, low-carbon initiatives across the industry. “Joining the China ESG Alliance is a pivotal step for NaaS as we continue to drive sustainable practices across our entire operation,” stated Ms. Yang Wang, Chief Executive Officer of NaaS.

2024 Third Quarter Financial Results

Revenues

Total revenues reached RMB44.4 million (US$6.3 million) for the third quarter of 2024. During this quarter, charging services revenues reached RMB42.4 million (US$6.0 million) with a growth rate of 36% year over year. Meanwhile, our strategy to move away from low margin energy solution projects resulted in a reduction of energy solutions revenues by 99% year over year to RMB0.6 million (US$0.1 million). Overall, the reduction of revenues from low margin energy solution projects contributed to the 55% reduction in total revenues year over year despite the robust growth in both our charging services revenues and new initiatives revenues.

The 36% growth in charging services revenues year over year was mainly attributable to steady growth in GTR^[3] and NTR for NaaS’ charging services, as its market presence and network strengths began to deliver tangible benefits. Charging volume and number of orders transacted through NaaS’ network reached 1,284 GWh and 52.8 million, respectively, in the third quarter of 2024, while the proportion of orders with positive NTR increased to 73%. These factors contributed to an increase in revenue generated from its charging services. NaaS offers platform-based incentives to end-users to boost the use of its network. Charging services revenues are recorded net of end-user incentives. Costs associated with end-user incentives and recorded as reductions to total revenues totaled RMB109.2 million (US$15.6 million) and RMB82.9 million for the third quarter of 2024 and 2023, respectively.

The decrease in energy solutions revenues by 99% year over year was primarily attributable to our strategy to shift away from low margin and infrequent energy solutions projects.

New initiatives revenues were RMB1.5 million (US$0.2 million) for the third quarter of 2024, representing an increase of 71% year over year. This growth was primarily driven by the Company’s efforts to derive new sources of income from promotion services over its charging services network.

Cost of revenues, gross profit and gross margin

Total cost of revenues decreased 73% year over year to RMB19.3 million (US$2.8 million) for the third quarter of 2024. We have reduced costs by a greater margin to revenue growth as less resources were deployed for energy solution projects with lower margins.

The robust performance of our charging services business drove a record-high gross margin of 57%. Our gross profit for the third quarter of 2024 was RMB25.2 million (US$3.6 million) as compared to RMB28.6 million in the same period 2023.

Operating expenses

Total operating expenses decreased by 70% year over year to RMB83.3 million (US$11.9 million) for the third quarter of 2024. Total non-IFRS operating expenses^[4] decreased by 67% year over year to RMB68.4 million (US$9.7 million) for the third quarter of 2024. Operating expenses as a percentage of revenues decreased year over year to 187% for the third quarter of 2024 from 279% for the third quarter of 2023, while non-IFRS operating expenses as a percentage of revenues decreased year over year to 154% for the third quarter of 2024 from 211% for the third quarter of 2023, mainly due to the optimization in operations.

Selling and marketing expenses decreased by 81% year over year to RMB29.7 million (US$4.2 million) for the third quarter of 2024. The decrease was mainly attributable to reduction in incentives to end-users as ongoing enhancements in our service enable us to lessen the reliance on user subsidies to induce usage. Costs associated with excess incentives to end-users recorded as selling and marketing expenses were RMB16.0 million (US$2.3 million) for the third quarter of 2024, compared with RMB78.0 million in the same period of 2023. The significant reduction in these costs was attributable to the realization of network benefits and continuous enhancement in our service which enabled the Company to manage platform-based incentives as a percentage of the commission fees it generated through its charging services more effectively.

Administrative expenses decreased by 52% year over year to RMB48.7 million (US$6.9 million) for the third quarter of 2024. The decrease was primarily due to the optimization of the Company’s organizational and operational structure.

Research and development expenses decreased by 72% year over year to RMB4.9 million (US$0.7 million) for the third quarter of 2024 as the Company refines the balance of resources dedicated to technical developments.

Finance costs

Finance costs were RMB5.5 million (US$0.8 million) for the third quarter of 2024.

Income tax

Income tax benefits were RMB59.5 million (US$8.5 million) for the third quarter of 2024, compared with income tax expenses of RMB2.3 million for the same period of 2023 as we materialize tax benefits from certain operating entity that turned profitable.

Net loss and non-IFRS net profit attributable to ordinary shareholders; net margin and non-IFRS net margin

Net loss attributable to ordinary shareholders was RMB7.7 million (US$1.1 million) for the third quarter of 2024, compared with a net loss attributable to ordinary shareholders of RMB366.9 million for the same period in 2023. Non-IFRS net profit^[5] attributable to ordinary shareholders was RMB21.2 million (US$3.0 million) for the third quarter of 2024, compared with non-IFRS net loss attributable to ordinary shareholders of RMB175.7 million for the same period in 2023. Net margin for the third quarter of 2024 was negative 17%, compared with negative 371% for the same period of 2023. Non-IFRS net margin for the third quarter of 2024 was 48%, compared with negative 178% for the same period of 2023. Please refer to the section titled “Unaudited reconciliations of IFRS and non-IFRS measures” for details.

[1] Non-IFRS net profit was arrived at after excluding share-based compensation expenses, fair value changes of convertible instruments, and fair value changes of financial assets at fair value through profit or loss from net profit. Please refer to the section titled “Non-IFRS Financial Measures” for details.

[2] NTR means Net Take Rate and measures NaaS’ return from transactions arising from its mobility connectivity services after adjusting for incentives which are paid to end-users through NaaS’ partnered platform in the form of discounts and promotions to boost the use of its network. NTR is calculated by taking NaaS’ gross receipts from transactions, deducting transaction outgoings and incentives, and adding income from membership programs. The result is then expressed as a percentage of the total transaction value.

[3] GTR means Gross Take Rate and is calculated as the percentage of NaaS’ commission income derived from the gross transaction value at charging stations, indicating the Company’s share of charging stations’ gross income.

[4] Non-IFRS operating expenses were arrived at after excluding share-based compensation expenses from operating expenses. Please refer to the section titled “Non-IFRS Financial Measures” for details.

[5] Non-IFRS net profit was arrived at after excluding share-based compensation expenses, fair value changes of convertible instruments, and fair value changes of financial assets at fair value through profit or loss from net profit. Non-IFRS net margin was calculated by dividing non-IFRS net profit by total revenue. Please refer to the section titled “Non-IFRS Financial Measures” for details.

Conference Call Information

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern time on November 20, 2024 (9:00 PM Beijing/Hong Kong time on November 20, 2024).

For participants who wish to join the conference using dial-in numbers, please complete online registration using the link provided below prior to the scheduled call start time.

Participant Online Registration:

https://dpregister.com/sreg/10194471/fdf6d1042c

Upon registration, each participant will receive details for the conference call, including dial-in numbers, passcode and a unique access PIN. To join the conference, please dial the provided number, enter the passcode followed by your PIN, and you will join the conference.

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.enaas.com.

A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until November 27, 2024, by dialing the following telephone numbers:

US Toll Free:	+1-877-344-7529
International:	+1-412-317-0088
Replay Passcode:	6398178

Exchange Rate

This press release contains translations of certain RMB amounts into USD at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.0176 to US$1.00, the noon buying rate in effect on September 30, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Non-IFRS Financial Measures

The Company uses non-IFRS measures such as non-IFRS net profit, non-IFRS net margin and non-IFRS operating expenses in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that non-IFRS financial measures help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its results for the period and effects certain instruments convertible to the Company’s equity. The Company believes that non-IFRS financial measures provide useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or construed as an alternative to IFRS financial measures or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS financial measures and the reconciliation to their most directly comparable IFRS measures. Non-IFRS financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

For more information on the IFRS and non-IFRS financial measures, please see the section titled “Unaudited reconciliations of IFRS and non-IFRS financial measures.”

About NaaS Technology Inc.

NaaS Technology Inc. is the first U.S. listed EV charging service company in China. The Company is a subsidiary of Newlinks Technology Limited, a leading energy digitalization group in China. The Company provides one-stop solutions to energy asset owners comprising charging services, energy solutions and new initiatives, supporting every stage of energy assets’ lifecycle and facilitating energy transition.

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NaaS’ goals and strategies; its future business development, financial conditions and results of operations; its ability to continuously develop new technology, services and products and keep up with changes in the industries in which it operates; growth of China’s EV charging industry and EV charging service industry and NaaS’ future business development; demand for and market acceptance of NaaS’ products and services; NaaS’ ability to protect and enforce its intellectual property rights; NaaS’ ability to attract and retain qualified executives and personnel; the COVID-19 pandemic and the effects of government and other measures that have been or will be taken in connection therewith; U.S.-China trade war and its effect on NaaS’ operation, fluctuations of the RMB exchange rate, and NaaS’ ability to obtain adequate financing for its planned capital expenditure requirements; NaaS’ relationships with end-users, customers, suppliers and other business partners; competition in the industry; relevant government policies and regulations related to the industry; and fluctuations in general economic and business conditions in China and globally. Further information regarding these and other risks is included in NaaS’ filings with the SEC.

For investor and media inquiries, please contact:

Investor Relations
NaaS Technology Inc.
E-mail: ir@enaas.com
Media inquiries:
E-mail: pr@enaas.com

NAAS TECHNOLOGY INC.
UNAUDITED CONSOLIDATED STATEMENTS OF LOSS AND OTHER COMPREHENSIVE LOSS

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2023		September 30, 2024				September 30, 2023		September 30, 2024
(In thousands, except for share and per share and per ADS data)	RMB		RMB		US$		RMB		RMB		US$

Continuing operations
Revenues
Charging services revenues		31,258		42,369		6,038		81,648		135,106		19,253
Energy solutions revenues		66,787		556		79		87,754		15,100		2,152
New initiatives revenues		890		1,523		217		2,972		5,526		787
Total revenues		98,935		44,448		6,334		172,374		155,732		22,192

Cost of revenues		(70,383)		(19,298)		(2,750)		(120,778)		(94,927)		(13,527)
Gross profit		28,552		25,150		3,584		51,596		60,805		8,665

Operating expenses
Selling and marketing expenses		(157,909)		(29,697)		(4,232)		(309,630)		(149,359)		(21,283)
Administrative expenses		(100,800)		(48,674)		(6,936)		(407,482)		(222,602)		(31,721)
Research and development expenses		(17,314)		(4,920)		(701)		(36,327)		(37,697)		(5,372)
Total operating expenses		(276,023)		(83,291)		(11,869)		(753,439)		(409,658)		(58,376)

Other gains, net		4,484		7,964		1,135		11,445		22,246		3,170

Operating loss		(242,987)		(50,177)		(7,150)		(690,398)		(326,607)		(46,541)
Fair value changes of convertible instruments		(120,400)		(19,851)		(2,829)		(120,400)		(27,648)		(3,940)
Fair value changes of financial instruments at fair value through profit or loss		(585)		6,464		921		14,546		(59,127)		(8,426)
Finance costs		(8,262)		(5,466)		(779)		(22,529)		(28,614)		(4,077)
Loss before income tax		(372,234)		(69,030)		(9,837)		(818,781)		(441,996)		(62,984)
Income tax		(2,267)		59,513		8,481		(511)		66,708		9,506
Loss from continuing operations		(374,501)		(9,517)		(1,356)		(819,292)		(375,288)		(53,478)

Profit from discontinued operations		9,308		1,205		172		10,070		3,801		542
Net loss		(365,193)		(8,312)		(1,184)		(809,222)		(371,487)		(52,936)
Net loss attributable to:
Equity holders of the Company		(366,863)		(7,684)		(1,095)		(811,183)		(370,553)		(52,803)
Non-controlling interests		1,670		(628)		(89)		1,961		(934)		(133)
		(365,193)		(8,312)		(1,184)		(809,222)		(371,487)		(52,936)

NAAS TECHNOLOGY INC.
UNAUDITED CONSOLIDATED STATEMENTS OF LOSS AND OTHER COMPREHENSIVE LOSS

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2023		September 30, 2024				September 30, 2023		September 30, 2024
(In thousands, except for share and per share and per ADS data)	RMB		RMB		US$		RMB		RMB		US$

Basic and diluted loss per share for loss from continuing operations attributable to the ordinary shareholders of the Company (Expressed in RMB per share)
Basic	(0.166)		(0.004)		(0.001)		(0.369)		(0.144)		(0.021)
Diluted	(0.166)		(0.004)		(0.001)		(0.369)		(0.144)		(0.021)

Basic and diluted loss per ADS for loss from continuing operations attributable to the ordinary shareholders of the Company (Expressed in RMB per ADS)
Basic	(33.295)		(0.705)		(0.100)		(73.850)		(28.828)		(4.108)
Diluted	(33.295)		(0.705)		(0.100)		(73.850)		(28.828)		(4.108)

Basic and diluted loss per share for loss attributable to the ordinary shareholders of the Company (Expressed in RMB per share)
Basic		(0.163)		(0.003)		(0.000)		(0.366)		(0.142)		(0.020)
Diluted		(0.163)		(0.003)		(0.000)		(0.366)		(0.142)		(0.020)

Basic and diluted loss per ADS for loss attributable to the ordinary shareholders of the Company (Expressed in RMB per ADS)
Basic		(32.616)		(0.571)		(0.081)		(73.119)		(28.446)		(4.054)
Diluted		(32.616)		(0.571)		(0.081)		(73.119)		(28.446)		(4.054)

Weighted average number of ordinary shares outstanding-basic		2,249,586,003		2,693,665,713		2,693,665,713		2,218,815,732		2,605,322,746		2,605,322,746
Weighted average number of ordinary shares outstanding- diluted		2,249,586,003		2,693,665,713		2,693,665,713		2,218,815,732		2,605,322,746		2,605,322,746

Net loss		(365,193)		(8,312)		(1,184)		(809,222)		(371,487)		(52,936)
Other comprehensive (loss)/income that will not be reclassified to profit or loss in subsequent period:
Fair value changes on equity investment designated at fair value through other comprehensive loss, net of tax		(4,363)		20,433		2,912		(25,979)		(23,657)		(3,371)
Currency translation differences		(1,258)		(5,259)		(750)		(1,583)		(2,996)		(427)
Other comprehensive (loss)/income, net of tax		(5,621)		15,174		2,162		(27,562)		(26,653)		(3,798)
Total comprehensive (loss)/income		(370,814)		6,862		978		(836,784)		(398,140)		(56,734)
Total comprehensive (loss)/income attributable to:
Equity holders of the Company		(372,484)		7,490		1,067		(838,745)		(397,206)		(56,601)
Non-controlling interests		1,670		(628)		(89)		1,961		(934)		(133)
		(370,814)		6,862		978		(836,784)		(398,140)		(56,734)

NAAS TECHNOLOGY INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	As of
	December 31, 2023		September 30, 2024
(In thousands)	RMB		RMB		US$

ASSETS
Current assets
Cash and cash equivalents		436,242		127,861		18,220
Trade receivables		73,144		79,562		11,337
Contract assets		77,684		—		—
Financial assets at fair value through profit or loss		70,164		9,155		1,305
Inventories		22,458		4,149		591
Prepayments, other receivables and other assets		436,377		461,244		65,727
Other financial assets		27,898		237,733		33,877
Assets classified as held for sale		—		54,940		7,829
Total current assets		1,143,967		974,644		138,886
Non-current assets
Right-of-use assets		14,026		9,369		1,335
Financial assets at fair value through profit or loss		34,788		31,926		4,550
Financial assets at fair value through other comprehensive income		104,970		195,337		27,835
Other financial assets		100,718		—		—
Investments accounted for using equity method		267		267		38
Property, plant and equipment		4,378		2,844		405
Intangible assets		13,320		2,521		359
Goodwill		40,085		—		—
Deferred tax assets		—		67,423		9,608
Other non-current assets		8,580		3,545		505
Total non-current assets		321,132		313,232		44,635
Total assets		1,465,099		1,287,876		183,521
LIABILITIES AND EQUITY
Current liabilities
Borrowings		72,953		821,724		117,095
Current lease liabilities		7,154		4,404		628
Trade payables		152,066		149,970		21,371
Income tax payables		19,170		19,239		2,741
Convertible bonds		272,684		268,558		38,269
Other payables and accruals		293,003		185,919		26,493
Liabilities relating to assets classified as held for sale		—		35,578		5,070
Total current liabilities		817,030		1,485,392		211,667
Non-current liabilities
Non-current lease liabilities		6,936		5,518		786
Borrowings		681,821		15,167		2,161
Deferred tax liabilities		2,917		1,423		203
Total non-current liabilities		691,674		22,108		3,150
Total liabilities		1,508,704		1,507,500		214,817
EQUITY
Share capital		165,183		184,733		26,324
Subscription receivable		(4,696)		(4,696)		(669)
Warrant outstanding		—		29,587		4,216
Additional paid in capital		7,196,341		7,371,480		1,050,428
Other reserves		(65,699)		(92,353)		(13,160)
Accumulated losses		(7,338,168)		(7,708,721)		(1,098,484)
Non-controlling interests		3,434		346		49
Total equity		(43,605)		(219,624)		(31,296)
Total equity and liabilities		1,465,099		1,287,876		183,521

NAAS TECHNOLOGY INC.
UNAUDITED RECONCILIATIONS OF IFRS AND NON-IFRS FINANCIAL MEASURES

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2023		September 30, 2024				September 30, 2023		September 30, 2024
(In thousands, except for share and per share and per ADS data)	RMB		RMB		US$		RMB		RMB		US$

Reconciliation of Non-IFRS net profit/loss attributable to the ordinary shareholders of the Company to Net loss attributable to the ordinary shareholders of the Company

Net loss attributable to the ordinary shareholders of the Company		(366,863)		(7,684)		(1,095)		(811,183)		(370,553)		(52,803)
Add: Share-based compensation expenses		70,160		15,534		2,213		319,348		138,791		19,778
Fair value changes of convertible instruments		120,400		19,851		2,829		120,400		27,648		3,940
Fair value changes of financial assets at fair value through profit or loss		585		(6,496)		(925)		(14,546)		59,066		8,416
Non-IFRS net profit/loss attributable to the ordinary shareholders of the Company		(175,718)		21,205		3,022		(385,981)		(145,048)		(20,669)

Basic and diluted earnings/loss per share for Non-IFRS net profit/loss attributable to the ordinary shareholders of the Company (Expressed in RMB per share)
Basic		(0.078)		0.008		0.001		(0.174)		(0.056)		(0.008)
Diluted		(0.078)		0.004		0.001		(0.174)		(0.056)		(0.008)

Basic and diluted earnings/loss per ADS for Non-IFRS net profit/loss attributable to the ordinary shareholders of the Company (Expressed in RMB per ADS)
Basic		(15.622)		1.574		0.224		(34.792)		(11.135)		(1.587)
Diluted		(15.622)		0.877		0.125		(34.792)		(11.135)		(1.587)

Weighted average number of ordinary shares outstanding-basic		2,249,586,003		2,693,665,713		2,693,665,713		2,218,815,732		2,605,322,746		2,605,322,746
Weighted average number of ordinary shares outstanding-diluted		2,249,586,003		4,837,957,744		4,837,957,744		2,218,815,732		2,605,322,746		2,605,322,746

NAAS TECHNOLOGY INC.
UNAUDITED RECONCILIATIONS OF IFRS AND NON-IFRS FINANCIAL MEASURES

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2023		September 30, 2024				September 30, 2023		September 30, 2024
(In thousands)	RMB		RMB		US$		RMB		RMB		US$

Cost of revenues		(70,383)		(19,298)		(2,750)		(120,778)		(94,927)		(13,527)
Share-based compensation expenses		2,853		640		91		6,568		5,689		811
Non-IFRS cost of revenues		(67,530)		(18,658)		(2,659)		(114,210)		(89,238)		(12,716)

Selling and marketing expenses		(157,909)		(29,697)		(4,232)		(309,630)		(149,359)		(21,283)
Share-based compensation expenses		36,037		521		74		44,295		24,612		3,507
Non-IFRS selling and marketing expenses		(121,872)		(29,176)		(4,158)		(265,335)		(124,747)		(17,776)

Administrative expenses		(100,800)		(48,674)		(6,936)		(407,482)		(222,602)		(31,721)
Share-based compensation expenses		32,165		12,977		1,849		265,654		98,570		14,046
Non-IFRS administrative expenses		(68,635)		(35,697)		(5,087)		(141,828)		(124,032)		(17,675)

Research and development expenses		(17,314)		(4,920)		(701)		(36,327)		(37,697)		(5,372)
Share-based compensation expenses		(895)		1,396		199		2,831		9,920		1,414
Non-IFRS research and development expenses		(18,209)		(3,524)		(502)		(33,496)		(27,777)		(3,958)

Operating loss		(242,987)		(50,177)		(7,150)		(690,398)		(326,607)		(46,541)
Share-based compensation expenses		70,160		15,534		2,213		319,348		138,791		19,778
Non-IFRS operating loss		(172,827)		(34,643)		(4,937)		(371,050)		(187,816)		(26,763)

NAAS TECHNOLOGY INC.
SUPPLEMENTARY DATA — UNAUDITED QUARTERLY FINANCIAL DATA

The following tables present certain unaudited consolidated quarterly financial information for each of the six quarters in the eighteen months ended June 30, 2024. This quarterly
information has been prepared on the same basis as the Unaudited Consolidated Statements of Loss and Other Comprehensive Loss and includes all adjustments necessary
to state fairly the information for the periods presented.
	For the Three Months Ended
	March 31, 2023		June 30, 2023		September 30, 2023		December 31, 2023		March 31, 2024		June 30, 2024
(In thousands, except for share and per share and per ADS data)	RMB		RMB		RMB		RMB		RMB		RMB

Continuing operations
Total revenues		36,161		37,278		98,935		60,989		56,259		55,025

Gross profit		6,114		16,930		28,552		11,593		14,556		21,099

Loss from continuing operations	(109,655)			(335,136)		(374,501)	(474,739)			(227,109)		(138,662)
Profit/(loss) from discontinued operations		—		762		9,308		(23,190)		(623)		3,219
Net loss		(109,655)		(334,374)		(365,193)		(497,929)		(227,732)		(135,443)

Basic and diluted loss per share for loss from continuing operations attributable to the ordinary shareholders of the Company (Expressed in RMB per share)
Basic	(0.050)			(0.152)		(0.166)	(0.199)			(0.091)		(0.053)
Diluted		(0.050)		(0.152)		(0.166)		(0.199)		(0.091)		(0.053)

Basic and diluted loss per ADS for loss from continuing operations attributable to the ordinary shareholders of the Company (Expressed in RMB per ADS)
Basic		(9.982)		(30.339)		(33.295)		(39.873)		(18.106)		(10.635)
Diluted		(9.982)		(30.339)		(33.295)		(39.873)		(18.106)		(10.635)

Basic and diluted loss per share for loss attributable to the ordinary shareholders of the Company (Expressed in RMB per share)
Basic		(0.050)		(0.151)		(0.163)		(0.208)		(0.091)		(0.052)
Diluted		(0.050)		(0.151)		(0.163)		(0.208)		(0.091)		(0.052)

Basic and diluted loss per ADS for loss attributable to the ordinary shareholders of the Company (Expressed in RMB per ADS)
Basic		(9.982)		(30.296)		(32.616)		(41.636)		(18.129)		(10.370)
Diluted		(9.982)		(30.296)		(32.616)		(41.636)		(18.129)		(10.370)

Weighted average number of ordinary shares outstanding-basic		2,196,978,125		2,209,304,961		2,249,586,003		2,381,259,279		2,508,694,151		2,612,637,572
Weighted average number of ordinary shares outstanding-diluted		2,196,978,125		2,209,304,961		2,249,586,003		2,381,259,279		2,508,694,151		2,612,637,572

NAAS TECHNOLOGY INC.

UNAUDITED RECONCILIATIONS OF IFRS AND NON-IFRS FINANCIAL MEASURES

For the Three Months Ended

March 31,
2023

June 30,
2023

September 30,
2023

December 31,
2023

March 31,
2024

June 30,

2024

(In thousands)

RMB

Reconciliation of Non-IFRS net
profit/loss attributable to the ordinary
shareholders of the Company to Net
loss attributable to the ordinary
shareholders of the Company

Net loss attributable to the ordinary
shareholders of the Company

(109,655)

(334,665)

(366,863)

(495,730)

(227,399)

(135,470)

Add: Share-based compensation

expenses

20,940

228,248

70,160

79,728

80,316

42,941

Fair value changes of convertible

instruments

—

120,400

(3,880)

7,790

Fair value changes of financial

assets at fair value through profit or

loss

(13,571)

(1,560)

585

102,065

12,928

52,634

Non-IFRS net profit/loss attributable to
the ordinary shareholders of the
Company

(102,286)

(107,977)

(175,718)

(317,817)

(126,365)

(39,888)

View original content:https://www.prnewswire.com/news-releases/naas-technology-inc-reports-unaudited-2024-third-quarter-financial-results-302311139.html

SOURCE NaaS Technology Inc.

Earnings News

Full Truck Alliance Co. Ltd. Announces Third Quarter 2024 Unaudited Financial Results

20.11.2024 by admin

GUIYANG, China, Nov. 20, 2024 /PRNewswire/ — Full Truck Alliance Co. Ltd. (“FTA” or the “Company”) YMM, a leading digital freight platform, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial and Operational Highlights

Total net revenues in the third quarter of 2024 were RMB3,031.4 million (US$432.0 million), an increase of 33.9% from RMB2,263.9 million in the same period of 2023.
Net income in the third quarter of 2024 was RMB1,121.9 million (US$159.9 million), an increase of 81.4% from RMB618.4 million in the same period of 2023.
Non-GAAP adjusted net income^[1]in the third quarter of 2024 was RMB1,241.2 million (US$176.9 million), an increase of 50.2% from RMB826.6 million in the same period of 2023.
Fulfilled orders^[2] in the third quarter of 2024 reached 51.9 million, an increase of 22.1% from 42.5 million in the same period of 2023.
Average shipper MAUs^[3] in the third quarter of 2024 reached 2.84 million, an increase of 33.6% from 2.13 million in the same period of 2023.

Mr. Peter Hui Zhang, Founder, Chairman and Chief Executive Officer of FTA, commented, “We are pleased to report robust growth in our user base, matching efficiency, freight orders, revenue and profit in the third quarter. This performance was underpinned by our commitment to driving digital and intelligent logistics transformation, which enables shippers to improve cost efficiency, while enabling truckers to secure more orders, maximize vehicle productivity and increase their earnings. In addition, we successfully revitalized the Yunmanman brand during the quarter and enhanced the dual membership program for truckers and shippers, further boosting user engagement and loyalty. As we look ahead to the fourth quarter, we will continue to strengthen our digital and intelligent product innovations to deliver even greater value to our users and society.”

Mr. Simon Cai, Chief Financial Officer of FTA, added, “Buoyed by strong growth in various segments of our platform, we achieved total net revenues of RMB3.0 billion, reflecting a 33.9% year-over-year increase. Our revenue from transaction service once again recorded the highest growth rate among all our business segments at 68.6% year over year, propelled by a sustainable increase in order volume and the continued optimization of our commission strategy. Our revenue growth was complemented by improved profitability, with net income and non-GAAP adjusted net income reaching RMB1.1 billion and RMB1.2 billion, up 81.4% and 50.2% year over year, respectively. Looking ahead, we will continue to prioritize operational efficiency and monetization as we steadily grow our business.”

^[1]Non-GAAP adjusted net income is defined as net income excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; (iv) settlement in principle of U.S. securities class action, which is non-recurring; and (v) tax effects of non-GAAP adjustments. See “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.

^[2]Fulfilled orders on our platform in a given period are defined as all shipping orders matched through our platform during such period but exclude (i) shipping orders that are subsequently canceled and (ii) shipping orders for which our users failed to specify any freight prices, as there are substantial uncertainties as to whether such shipping orders are fulfilled.

^[3]Average shipper MAUs in a given period are calculated by dividing (i) the sum of shipper MAUs for each month of a given period by (ii) the number of months in a given period. Shipper MAUs are defined as the number of active shippers on our platform in a given month. Active shippers are defined as the aggregate number of registered shipper accounts that have posted at least one shipping order on our platform during a given period.

Third Quarter 2024 Financial Results

Net Revenues (including value added taxes, or “VAT,” of RMB1,137.9 million and RMB1,380.7 million for the three months ended September 30, 2023 and 2024, respectively). Total net revenues in the third quarter of 2024 were RMB3,031.4 million (US$432.0 million), representing an increase of 33.9% from RMB2,263.9 million in the same period of 2023, primarily attributable to an increase in revenues from freight matching services.

Freight matching services. Revenues from freight matching services in the third quarter of 2024 were RMB2,551.8 million (US$363.6 million), representing an increase of 34.0% from RMB1,904.5 million in the same period of 2023. The increase was mainly due to the rapid increase in transaction service^[4] and the continued growth in freight brokerage service.

Freight brokerage service. Revenues from freight brokerage service in the third quarter of 2024 were RMB1,280.9 million (US$182.5 million), an increase of 19.7% from RMB1,070.2 million in the same period of 2023, primarily attributable to an increase in transaction volume due to the continued growth in user demand.
Freight listing service. Revenues from freight listing service in the third quarter of 2024 were RMB223.4 million (US$31.8 million), an increase of 4.9% from RMB212.9 million in the same period of 2023, primarily due to the growing number of total paying members.
Transaction service.^[4] Revenues from transaction service amounted to RMB1,047.5 million (US$149.3 million) in the third quarter of 2024, an increase of 68.6% from RMB621.4 million in the same period of 2023, primarily driven by increases in order volume, penetration rate, and per-order transaction service fee.

Value-added services. Revenues from value-added services in the third quarter of 2024 were RMB479.6 million (US$68.3 million), an increase of 33.4% from RMB359.4 million in the same period of 2023. The increase was due to the growing demand from truckers and shippers for credit solutions and other value-added services.

Cost of Revenues (including VAT net of government grants of RMB870.0 million and RMB1,034.4 million for the three months ended September 30, 2023 and 2024, respectively). Cost of revenues in the third quarter of 2024 was RMB1,364.9 million (US$194.5 million), compared with RMB1,142.1 million in the same period of 2023. The increase was primarily due to increases in VAT, related tax surcharges and other tax costs, net of grants from government authorities. These tax-related costs net of government grants totaled RMB1,221.6 million, representing an increase of 18.3% from RMB1,032.5 million in the same period of 2023, primarily due to an increase in transaction activities involving the Company’s freight brokerage service.

Sales and Marketing Expenses. Sales and marketing expenses in the third quarter of 2024 were RMB412.5 million (US$58.8 million), compared with RMB290.8 million in the same period of 2023. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions.

General and Administrative Expenses. General and administrative expenses in the third quarter of 2024 were RMB227.9 million (US$32.5 million), compared with RMB290.4 million in the same period of 2023. The decrease was primarily because the Company recorded settlement in principle of certain U.S. securities class action in the same period last year, which was disclosed in the Form 6-K furnished to the U.S. Securities and Exchange Commission on September 18, 2023.

Research and Development Expenses. Research and development expenses in the third quarter of 2024 were RMB195.1 million (US$27.8 million), compared with RMB237.7 million in the same period of 2023. The decrease was primarily due to lower salary and benefits expenses.

Income from Operations. Income from operations in the third quarter of 2024 was RMB762.0 million (US$108.6 million), an increase of 208.4% from RMB247.1 million in the same period of 2023.

Non-GAAP Adjusted Operating Income.^[5] Non-GAAP adjusted operating income in the third quarter of 2024 was RMB884.5 million (US$126.0 million), an increase of 92.9% from RMB458.5 million in the same period of 2023.

Net Income. Net income in the third quarter of 2024 was RMB1,121.9 million (US$159.9 million), an increase of 81.4% from RMB618.4 million in the same period of 2023.

Non-GAAP Adjusted Net Income. Non-GAAP adjusted net income in the third quarter of 2024 was RMB1,241.2 million (US$176.9 million), an increase of 50.2% from RMB826.6 million in the same period of 2023.

Basic and Diluted Net Income per ADS^[6] and Non-GAAP Adjusted Basic and Diluted Net Income per ADS.^[7] Basic and diluted net income per ADS were RMB1.06 (US$0.15) in the third quarter of 2024, compared with RMB0.58 in the same period of 2023. Non-GAAP adjusted basic net income per ADS was RMB1.18 (US$0.17) in the third quarter of 2024, compared with RMB0.78 in the same period of 2023. Non-GAAP adjusted diluted net income per ADS was RMB1.17 (US$0.17) in the third quarter of 2024, compared with RMB0.78 in the same period of 2023.

Balance Sheet and Cash Flow

As of September 30, 2024, the Company had cash and cash equivalents, restricted cash, short-term investments, long-term time deposits and wealth management products with maturities over one year of RMB27.3 billion (US$3.9 billion) in total, compared with RMB27.6 billion as of December 31, 2023.

As of September 30, 2024, the total outstanding balance of on-balance sheet loans, consisting of the total principal amounts and all accrued interests of the loans funded through our small loan company, reduced by an allowance for estimated losses, was RMB4,326.4 million (US$616.5 million), compared with RMB3,521.1 million as of December 31, 2023. The total non-performing loan ratio^[8] for these loans was 1.8% as of September 30, 2024, compared with 2.0% as of December 31, 2023.

In the third quarter of 2024, net cash provided by operating activities was RMB1,051.1 million (US$149.8 million).

^[4]Effective January 1, 2024, we have renamed our “Transaction commission” revenue stream as “Transaction service,” which consists of all monetization from truckers related to our freight matching service, including the revenue generated from our intra-city business, which was previously classified under “Freight listing service” and “Value-added services.” The comparative periods have been restated to conform to this presentation by reclassifying RMB19.2 million and RMB0.1 million, which were previously included in “Freight listing service” and “Value-added services,” respectively, as “Transaction service”.

^[5]Non-GAAP adjusted operating income is defined as income from operations excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; and (iv) settlement in principle of U.S. securities class action, which is non-recurring. See “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.

^[6]ADS refers to American depositary shares, each of which represents 20 Class A ordinary shares.

^[7]Non-GAAP adjusted basic and diluted net income per ADS is net income attributable to ordinary shareholders excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; (iv) settlement in principle of U.S. securities class action, which is non-recurring; and (v) tax effects of non-GAAP adjustments, divided by weighted average number of basic and diluted ADSs, respectively. For more information, refer to “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.

^[8]Non-performing loan ratio is calculated by dividing the outstanding principal and all accrued interests of the on-balance sheet loans that were over 90 calendar days past due (excluding loans that are over 180 days past due and are therefore charged off) by the total outstanding principal and all accrued interests of the on-balance sheet loans (excluding loans that are over 180 days past due and are therefore charged off) reduced by an allowance for estimated losses as of a specified date.

Business Outlook

The Company expects its total net revenues to be between RMB2.94 billion and RMB3.00 billion for the fourth quarter of 2024, representing a year-over-year growth rate of approximately 22.3% to 24.8%. These forecasts reflect the Company’s current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at a rate of RMB7.0176 to US$1.00, the exchange rate in effect as of September 30, 2024, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

Conference Call

The Company’s management will hold an earnings conference call at 7:00 A.M. U.S. Eastern Time on November 20, 2024, or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the third quarter of 2024.

For participants who wish to join the conference using dial-in numbers, please complete online registration using the link provided below prior to the scheduled call start time.

Participant Online Registration:
https://dpregister.com/sreg/10193772/fdc4c9f64c

The replay will be accessible through November 27, 2024, by dialing the following numbers:

United States:	+1-877-344-7529
International:	+1-412-317-0088
Replay Access Code:	7190368

A live and archived webcast of the conference call will also be available on the Company’s investor relations website at ir.fulltruckalliance.com.

About Full Truck Alliance Co. Ltd.

Full Truck Alliance Co. Ltd. YMM is a leading digital freight platform connecting shippers with truckers to facilitate shipments across distance ranges, cargo weights and types. The Company provides a range of freight matching services, including freight listing, freight brokerage and online transaction services. The Company also provides a range of value-added services that cater to the various needs of shippers and truckers, such as financial institutions, highway authorities, and gas station operators. With a mission to make logistics smarter, the Company is shaping the future of logistics with technology and aspires to revolutionize logistics, improve efficiency across the value chain and reduce its carbon footprint for our planet. For more information, please visit ir.fulltruckalliance.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP adjusted operating income, non-GAAP adjusted net income, non-GAAP adjusted net income attributable to ordinary shareholders, non-GAAP adjusted basic and diluted net income per share and non-GAAP adjusted basic and diluted net income per ADS, each a non-GAAP financial measure, as supplemental measures to review and assess its operating performance.

The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted operating income as income from operations excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions and (iv) settlement in principle of U.S. securities class action. The Company defines non-GAAP adjusted net income as net income excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; (iv) settlement in principle of U.S. securities class action, which is non-recurring; and (v) tax effects of non-GAAP adjustments. The Company defines non-GAAP adjusted net income attributable to ordinary shareholders as net income attributable to ordinary shareholders excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; (iv) settlement in principle of U.S. securities class action, which is non-recurring; and (v) tax effects of non-GAAP adjustments. The Company defines non-GAAP adjusted basic and diluted net income per share as non-GAAP adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted ordinary shares, respectively. The Company defines non-GAAP adjusted basic and diluted net income per ADS as non-GAAP adjusted net income attributable to ordinary shareholders divided by the weighted average number of basic and diluted ADSs, respectively.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as an analytical tool. The non-GAAP financial measures do not reflect all items of expense that affect its operations. Share-based compensation expense, amortization of intangible assets resulting from business acquisitions, compensation cost incurred in relation to acquisitions and tax effects of non-GAAP adjustments have been and may continue to be incurred in its business and are not reflected in the presentation of its non-GAAP financial measures.

The Company reconciles the non-GAAP financial measures to the nearest U.S. GAAP performance measures. Non-GAAP adjusted operating income, non-GAAP adjusted net income, non-GAAP adjusted net income attributable to ordinary shareholders and non-GAAP adjusted basic and diluted net income per share should not be considered in isolation or construed as an alternative to operating income, net income, net income attributable to ordinary shareholders and basic and diluted net income per share or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review FTA’s non-GAAP financial measures to the most directly comparable GAAP measures. FTA’s non-GAAP financial measure may not be comparable to similarly titled measures presented by other companies.

For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this release.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements which are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: FTA’s goal and strategies; FTA’s expansion plans; FTA’s future business development, financial condition and results of operations; expected changes in FTA’s revenues, costs or expenses; industry landscape of, and trends in, China’s road transportation market; competition in FTA’s industry; FTA’s expectations regarding demand for, and market acceptance of, its services; FTA’s expectations regarding its relationships with shippers, truckers and other ecosystem participants; FTA’s ability to protect its systems and infrastructures from cyber-attacks; PRC laws, regulations, and policies relating to the road transportation market, as well as general regulatory environment in which FTA operates in China; the results of regulatory review and the duration and impact of any regulatory action taken against FTA; the impact of health epidemics, extreme weather conditions and production constraints brought by electricity rationing measures; general economic and business condition; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Full Truck Alliance Co. Ltd.
Mao Mao
E-mail: IR@amh-group.com

Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: FTA@thepiacentegroup.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: FTA@thepiacentegroup.com

FULL TRUCK ALLIANCE CO. LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS, per share and per ADS data)

		As of
	December 31,	September 30,	September 30,
	2023	2024	2024
	RMB	RMB	US$
ASSETS
Current assets:
Cash and cash equivalents	6,770,895	4,592,305	654,398
Restricted cash – current	115,513	100,562	14,330
Short-term investments	11,516,304	15,855,809	2,259,435
Accounts receivable, net	23,418	27,038	3,853
Loans receivable, net	3,521,072	4,326,360	616,501
Prepayments and other current assets	2,049,780	2,894,832	412,510
Total current assets	23,996,982	27,796,906	3,961,027
Restricted cash – non-current	10,000	20,000	2,850
Long-term investments^[1]	11,075,739	8,661,163	1,234,206
Property and equipment, net	194,576	267,449	38,111
Intangible assets, net	449,904	407,359	58,048
Goodwill	3,124,828	3,124,828	445,284
Deferred tax assets	149,081	78,576	11,197
Operating lease right-of-use assets and land use rights	134,867	125,476	17,880
Other non-current assets	211,670	130,862	18,648
Total non-current assets	15,350,665	12,815,713	1,826,224
TOTAL ASSETS	39,347,647	40,612,619	5,787,251
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	25,220	28,422	4,050
Prepaid for freight listing fees and other service fees	548,917	618,418	88,124
Income tax payable	154,916	245,855	35,034
Other tax payable	784,617	1,020,169	145,373
Operating lease liabilities – current	37,758	42,215	6,016
Dividends payable	—	16,525	2,355
Accrued expenses and other current liabilities	1,723,245	1,666,619	237,489
Total current liabilities	3,274,673	3,638,223	518,441
Deferred tax liabilities	108,591	98,825	14,082
Operating lease liabilities – non-current	46,709	32,623	4,649
Other non-current liabilities	22,950	15,344	2,187
Total non-current liabilities	178,250	146,792	20,918
TOTAL LIABILITIES	3,452,923	3,785,015	539,359
MEZZANINE EQUITY
Redeemable non-controlling interests	277,420	425,723	60,665
SHAREHOLDERS’ EQUITY
Ordinary shares	1,371	1,343	191
Treasury stock, at cost	(608,117)	(68,495)	(9,760)
Additional paid-in capital	47,713,985	45,780,737	6,523,703
Accumulated other comprehensive income	2,897,871	2,601,815	370,756
Accumulated deficit	(14,400,604)	(11,929,515)	(1,699,942)
TOTAL FULL TRUCK ALLIANCE CO. LTD. EQUITY	35,604,506	36,385,885	5,184,948
Non-controlling interests	12,798	15,996	2,279
TOTAL SHAREHOLDERS’ EQUITY	35,617,304	36,401,881	5,187,227
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY	39,347,647	40,612,619	5,787,251


[1] The Group’s long-term investments consist of RMB6,086 million long-term time deposits, RMB638 million wealth management products with maturities over one year, RMB915 million investments in debt securities, RMB320 million equity method investments, and RMB702 million equity investments without readily determinable fair value as of September 30, 2024.

FULL TRUCK ALLIANCE CO. LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All amounts in thousands, except share, ADS, per share and per ADS data)

	Three months ended					Nine months ended
	September 30,	June 30,	September 30,	September 30,	September 30,	September 30,	September 30,
	2023	2024	2024	2024	2023	2024	2024
	RMB	RMB	RMB	US$	RMB	RMB	US$
Net revenues (including value added taxes,
“VAT”, of RMB1,137.9 million and
RMB1,380.7 million for the three months
ended September 30, 2023 and 2024,
respectively)	2,263,917	2,764,283	3,031,388	431,969	6,028,202	8,064,384	1,149,166
Operating expenses:
Cost of revenues (including VAT net of
government grants, of RMB870.0
million and RMB1,034.4 million
the three months ended September
30, 2023 and 2024, respectively)(1)	(1,142,057)	(1,312,072)	(1,364,884)	(194,494)	(2,966,699)	(3,708,844)	(528,506)
Sales and marketing expenses(1)	(290,782)	(372,288)	(412,499)	(58,781)	(818,231)	(1,124,934)	(160,302)
General and administrative expenses(1)	(290,443)	(219,157)	(227,874)	(32,472)	(671,661)	(711,498)	(101,388)
Research and development expenses(1)	(237,716)	(232,140)	(195,142)	(27,808)	(691,291)	(674,990)	(96,185)
Provision for loans receivable	(62,948)	(71,057)	(71,242)	(10,152)	(166,972)	(222,623)	(31,724)
Total operating expenses	(2,023,946)	(2,206,714)	(2,271,641)	(323,707)	(5,314,854)	(6,442,889)	(918,105)
Other operating income	7,089	7,798	2,242	319	33,265	18,050	2,572
Income from operations	247,060	565,367	761,989	108,581	746,613	1,639,545	233,633
Other income (expense)
Interest income	297,249	305,337	303,268	43,215	828,824	923,968	131,664
Foreign exchange gain (loss)	585	6,306	(3,444)	(491)	760	3,279	467
Investment income	22,605	18,697	7,250	1,033	29,789	44,431	6,331
Unrealized (losses) gains from fair
value changes of investments	(12,124)	(4,522)	10,618	1,513	6,105	(1,292)	(184)
Other income, net	116,885	1,395	126,246	17,990	127,807	129,711	18,484
Share of loss in equity method investees	(236)	(882)	(351)	(50)	(1,242)	(1,281)	(183)
Total other income	424,964	326,331	443,587	63,210	992,043	1,098,816	156,579
Net income before income tax	672,024	891,698	1,205,576	171,791	1,738,656	2,738,361	390,212
Income tax expense	(53,601)	(51,190)	(83,640)	(11,919)	(99,813)	(189,550)	(27,011)
Net income	618,423	840,508	1,121,936	159,872	1,638,843	2,548,811	363,201
Less: net loss attributable to
non-controlling interests	(675)	(568)	(1,254)	(179)	(661)	(2,371)	(338)
Less: measurement adjustment
attributable to redeemable non-
controlling interests	4,745	17,942	16,104	2,295	10,705	39,790	5,670
Net income attributable to
ordinary shareholders	614,353	823,134	1,107,086	157,756	1,628,799	2,511,392	357,869

FULL TRUCK ALLIANCE CO. LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (CONTINUED)
(All amounts in thousands, except share, ADS, per share and per ADS data)

	Three months ended				Nine months ended
	September 30,	June 30,	September 30,	September 30,	September 30,	September 30,	September 30,
	2023	2024	2024	2024	2023	2024	2024
	RMB	RMB	RMB	US$	RMB	RMB	US$
Net income per ordinary
share
—Basic	0.03	0.04	0.05	0.01	0.08	0.12	0.02
—Diluted	0.03	0.04	0.05	0.01	0.08	0.12	0.02
Net income per ADS*
—Basic	0.58	0.79	1.06	0.15	1.54	2.41	0.34
—Diluted	0.58	0.79	1.06	0.15	1.54	2.40	0.34
Weighted average number
of ordinary shares used
in computing net
income per share
—Basic	21,025,267,682	20,805,892,860	20,818,441,720	20,818,441,720	21,166,923,739	20,829,402,911	20,829,402,911
—Diluted	21,059,252,652	20,905,548,181	20,885,299,925	20,885,299,925	21,211,661,056	20,898,475,982	20,898,475,982
Weighted average number
of ADS used in
computing net
income per ADS
—Basic	1,051,263,384	1,040,294,643	1,040,922,086	1,040,922,086	1,058,346,187	1,041,470,146	1,041,470,146
—Diluted	1,052,962,633	1,045,277,409	1,044,264,996	1,044,264,996	1,060,583,053	1,044,923,799	1,044,923,799

* Each ADS represents 20 ordinary shares.

(1) Share-based compensation expense in operating expenses are as follows:


	Three months ended				Nine months ended
	September 30,	June 30,	September 30,	September 30,	September 30,	September 30,	September 30,
	2023	2024	2024	2024	2023	2024	2024
	RMB	RMB	RMB	US$	RMB	RMB	US$
Cost of revenues	2,796	2,734	2,643	377	5,983	8,121	1,157
Sales and marketing
expenses	15,217	12,875	12,799	1,824	39,489	36,359	5,181
General and administrative
expenses	81,249	79,197	73,892	10,530	208,214	272,632	38,850
Research and development
expenses	22,938	21,495	20,172	2,874	57,466	64,651	9,213
Total	122,200	116,301	109,506	15,605	311,152	381,763	54,401

FULL TRUCK ALLIANCE CO. LTD.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share, ADS, per share and per ADS data)

	Three months ended				Nine months ended
	September 30,	June 30,	September 30,	September 30,	September 30,	September 30,	September 30,
	2023	2024	2024	2024	2023	2024	2024
	RMB	RMB	RMB	US$	RMB	RMB	US$
Income from operations	247,060	565,367	761,989	108,581	746,613	1,639,545	233,633
Add:
Share-based
compensation
expense	122,200	116,301	109,506	15,605	311,152	381,763	54,401
Amortization of
intangible assets
resulting from
business acquisitions	13,021	13,021	13,021	1,855	39,063	39,063	5,566
Compensation cost
incurred in relation
to acquisitions	4,281	4,281	—	—	12,843	8,562	1,220
Settlement in principle
of U.S. securities
class action	71,900	—	—	—	71,900	—	—
Non-GAAP adjusted
operating income	458,462	698,970	884,516	126,041	1,181,571	2,068,933	294,820

Net income	618,423	840,508	1,121,936	159,872	1,638,843	2,548,811	363,201
Add:
Share-based
compensation
expense	122,200	116,301	109,506	15,605	311,152	381,763	54,401
Amortization of
intangible assets
resulting from
business acquisitions	13,021	13,021	13,021	1,855	39,063	39,063	5,566
Compensation cost
incurred in relation
to acquisitions	4,281	4,281	—	—	12,843	8,562	1,220
Settlement in principle
of U.S. securities
class action	71,900	—	—	—	71,900	—	—
Tax effects of
non-GAAP
adjustments	(3,255)	(3,255)	(3,255)	(464)	(9,765)	(9,765)	(1,392)
Non-GAAP adjusted net
income	826,570	970,856	1,241,208	176,868	2,064,036	2,968,434	422,996

FULL TRUCK ALLIANCE CO. LTD.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (CONTINUED)
(All amounts in thousands, except share, ADS, per share and per ADS data)

	Three months ended				Nine months ended
	September 30,	June 30,	September 30,	September 30,	September 30,	September 30,	September 30,
	2023	2024	2024	2024	2023	2024	2024
	RMB	RMB	RMB	US$	RMB	RMB	US$
Net income attributable
to ordinary
shareholders	614,353	823,134	1,107,086	157,756	1,628,799	2,511,392	357,869
Add:
Share-based
compensation
expense	122,200	116,301	109,506	15,605	311,152	381,763	54,401
Amortization of
intangible assets
resulting from
business acquisitions	13,021	13,021	13,021	1,855	39,063	39,063	5,566
Compensation cost
incurred in relation
to acquisitions	4,281	4,281	—	—	12,843	8,562	1,220
Settlement in principle
of U.S. securities
class action	71,900	—	—	—	71,900	—	—
Tax effects of
non-GAAP
adjustments	(3,255)	(3,255)	(3,255)	(464)	(9,765)	(9,765)	(1,392)
Non-GAAP adjusted net
income attributable to
ordinary shareholders	822,500	953,482	1,226,358	174,752	2,053,992	2,931,015	417,664
Non-GAAP adjusted net
income per ordinary
share
—Basic	0.04	0.05	0.06	0.01	0.10	0.14	0.02
—Diluted	0.04	0.05	0.06	0.01	0.10	0.14	0.02
Non-GAAP adjusted net
income per ADS
—Basic	0.78	0.92	1.18	0.17	1.94	2.81	0.40
—Diluted	0.78	0.91	1.17	0.17	1.94	2.80	0.40

View original content:https://www.prnewswire.com/news-releases/full-truck-alliance-co-ltd-announces-third-quarter-2024-unaudited-financial-results-302311040.html

SOURCE Full Truck Alliance Co. Ltd.

Finance News

Exclusive-In high-wage Germany, VW's labour costs outstrip the competition

20.11.2024 by admin

By Victoria Waldersee and Christoph Steitz

BERLIN/FRANKFURT (Reuters) – As Volkswagen and unions gear up for the next round of talks over wages and plant closures in Germany, company and industry data reviewed by Reuters show that the automaker spends a higher proportion of sales on labour costs than major rivals.

The data, in an internal memo by Volkswagen’s works council reviewed by Reuters, underscores the company’s challenge to remain competitive in its pricey home market as cheaper models from China arrive.

Management will start the next round of negotiations with unions representing roughly 120,000 German workers on Thursday. Unions are demanding a 7% pay rise, while Volkswagen is threatening a 10% cut.

The proportion of revenue spent on labour at Volkswagen globally has fallen from 18.2% in 2020 to 15.4% in 2023 – but that ratio still exceeds BMW, Mercedes-Benz, and Stellantis, which spent between 9.5% and 11% in 2023, according to the works council memo.

At VW AG, the German subsidiary that governs the six plants in question, the ratio was estimated at 15.8-17.5%. Volkswagen says it does not release separate figures for VW AG.

The findings by the works council, an elected body of employees representing them in negotiations with management, are based on annual reports showing companies’ global spending on personnel compared to revenue. The figures include all staff, from factory to white-collar workers. Reuters checked and confirmed the calculations.

Part of the reason the company spends more on labour is that it makes many components, and software, in-house, Stifel analyst Daniel Schwarz said. But pressure on margins from China means the company needs to cut fixed costs.

“The VW brand has been market leader in Europe every year since 2005 … its cars are competitive. The problem is not the product, but the costs,” he told Reuters.

Germany, where Volkswagen employs nearly 45% of its workforce, has the highest labour costs of any passenger car industry worldwide, averaging 62 euros ($66) per hour in 2023, up around a third from a decade ago, according to the German autos association VDA.

Still, union representatives say labour is a small part of the company’s cost base, challenging management to make cuts elsewhere to boost flagging profits.

In an internal flyer to staff, the works council pointed to steep drops in earnings at other parts of the group – Porsche, Audi, and VW Financial Services – in the first nine months of the year, which it said cost the company 5.5 billion euros ($5.8 billion).

“That alone is an argument for why it’s not enough to put labour costs at the centre of communication,” it wrote.

VW AG’s plants are the only car factories in Germany, except Tesla’s, where wages are not determined by an industry-wide collective agreement for the auto and engineering sectors, but by a separate agreement.

Volkswagen cancelled that agreement in September to seek cuts at the VW brand which it says are vital to its survival.

Big pay cuts would be a bitter pill for German unions after they negotiated a 5.5% increase in the industry-wide agreement this month, and Tesla raised wages for German staff by 4%.

TWICE AS PRICEY

Volkswagen says that even after the planned cuts its salaries would be highly attractive.

Its troubles come amid broader anxiety in Germany over competitiveness, as politicians gear up for an election battle in February over how to revive a weakening industrial base.

“We are not productive enough at our German sites,” VW brand chief Thomas Schaefer said last month, pointing to rising costs for energy and materials as well as personnel.

“Our factory costs are currently 25-50% higher than we had planned. This means that individual German plants are twice as expensive as the competition.”

In France, Italy, and Spain – where Volkswagen competitors Stellantis and Renault have most of their European plants – auto industry workers earn 47 euros, 33 euros, and 29 euros per hour respectively, VDA data shows.

VW AG’s costs are particularly high because it includes staff carrying out administrative functions for the whole Volkswagen Group like sales, management, and technical development, often commanding higher salaries.

Volkswagen has announced tens of thousands of job cuts in Germany in recent years, including a pact with unions struck by previous CEO Herbert Diess to slash 23,000 jobs at the VW brand by 2025.

But the transition to electric, software-driven cars and tighter regulations mean it has also hired many workers in areas like software and administration.

The number of white-collar workers at VW AG is reaching a similar level to blue-collar workers, a source with knowledge of the matter said.

An internal document seen by Reuters showed that while the number of factory workers employed at VW AG fell by over 8,000 between June 2019 and September 2024, the number of administrative staff rose by around 4,000.

Volkswagen declined to comment on the figures.

($1 = 0.9451 euros)

(Reporting by Victoria Waldersee in Berlin and Christoph Steitz in Frankfurt. Editing by Josephine Mason and Mark Potter)

news

Finance News

Analysis-China's cashed-up crowd is back in the stock market

20.11.2024 by admin

By Tom Westbrook and Samuel Shen

SHANGHAI/SINGAPORE (Reuters) – Speculative fever in Chinese stocks is running red hot and catching the attention of some global funds, who figure local money is worth following into market segments sheltered from tariffs and likely to ride an eventual economic recovery.

A series of economic stimulus pledges by China in September unleashed the largest rally in Hong Kong shares in a generation and sent mainland stocks to two-year highs.

However, the subsequent lack of a splashy spending centrepiece tempered the euphoria as many big-time investors cashed out rather than wait for a more patient revival, especially as President-elect Donald Trump installs China hawks in top U.S. departments.

Yet while Hong Kong shares have recoiled, mainland stocks have switched gears and the cash streaming in from household savings accounts is highlighting the markets’ hottest pockets.

“Money would rush into whatever stocks are in the speculative limelight,” said Lu Delong, a retail investor in northeast China who said he has 2 million yuan ($275,000) in stocks and made a 40% profit since late September.

He bet on tech shares gaining as China insulates them from possible U.S. restrictions, buying China Great Wall Technology Group and Huawei supplier Visionox Technology, which have doubled since late September.

“For tech stocks, innovation cannot be proved unsuccessful in early stages, thus creating room for speculation,” he said.

The speculative trade has pushed outstanding margin financing, or the money borrowed from stockbrokers for stock buying, to a nine-year high of 1.85 trillion yuan ($256 billion), according to data vendor Datayes.

Average daily volume for the Shanghai Composite has run at 2-1/2 times the ten-year average for the past two months and price moves point to even more action at the smaller end.

The BSE 50 Index of start-ups listed in Beijing is up 112% since late September, compared with the 12% gain left for the Shanghai Composite after its blistering rally.

“Speculative money and retail investors who don’t care about fundamentals remain feverish,” said Li Bei, founder of Shanghai Banxia Investment Management Centre, in a letter to investors.

Still, she increased her own net stock position to a nine-month high of nearly 50% in September and is focused on state-owned construction companies and the property sector, which has collapsed in recent years and is starting to attract bets on a recovery.

Fervour extends into derivatives, with options bets on rising prices also surging, according to David Wei, general manager of Shenzhen Chengyuan Investment Consulting Co, which helps investors buy such products from brokerages.

FOREIGN FOLLOWERS

The pile-in contrasts with foreign selling. China no longer publishes timely mainland flows data, but statistics from Goldman Sachs showed $16.9 billion outflow over the past four weeks as blue chips wavered and the risk of tariffs went up.

In Hong Kong, which draws many foreigners as there are no capital controls, a 15% fall in the Hang Seng index from October highs also points to selling.

“We have rotated into the A-shares market, and specifically the mid cap space,” said George Efstathopoulos, a portfolio manager at Fidelity International, referring to mainland shares, and a sector that has handily beaten blue chips.

Efstathopoulos has been a seller in Hong Kong where he said stocks are more sensitive to U.S. rates.

“A-shares on the other hand have little sensitivity to U.S. rates and instead are more geared to China domestic liquidity and to fiscal stimulus.”

Investment bank strategists have broadly endorsed the trade, with Goldman, Morgan Stanley and HSBC all preferring mainland stocks in flagship research notes published in recent days, citing exposure to stimulus and to onshore investment trends.

“In mainland China, over $20 trillion is sitting in bank deposits, twice the market cap of the A-share market … some of this money is gradually being allocated to equities,” strategists at HSBC led by Herald van der Linde wrote in note on Tuesday

Both foreign and domestic investors see one consequence of rising trade tensions being a shift to self-sufficiency in China and have bought chip makers in particular in anticipation that they will earn revenue that would previously have flowed abroad.

November’s Bank of America survey of Asia fund managers found just 8% of 120 regional respondents regarded themselves as “fully exposed” – with the rest balanced between bulls and bears and about a third content to wait for more support.

“I am sure there will be one or two more stimulus packages,” said Michael Browne, CIO at Martin Currie, part of Franklin Templeton, an equity specialist fund manager that manages around 22 billion pounds ($28 billion), which is neutral on China.

“We’re positioned for when the rally comes, and it will come,” he said. “The China trade could be the one that catches everyone out.”

($1 = 7.2407 Chinese yuan renminbi)

($1 = 0.7884 pounds)

(Additional reporting by Dhara Ranasinghe in London. Writing by Tom Westbrook.; Editing by Shri Navaratnam)

news

Earnings News

Kuaishou Technology Announces Third Quarter 2024 Unaudited Financial Results

20.11.2024 by admin

HONG KONG, Nov. 20, 2024 /PRNewswire/ — Kuaishou Technology (“Kuaishou” or the “Company”; HKD Counter Stock Code: 01024 / RMB Counter Stock Code: 81024), a leading content community and social platform, today announced its unaudited consolidated results for the three months and nine months ended September 30, 2024.

Third Quarter 2024 Key Highlights

Average DAUs on Kuaishou APP were 407.5 million, representing an increase of 5.4% from 386.6 million for the same period of 2023.
Average MAUs on Kuaishou APP were 714.1 million, representing an increase of 4.3% from 684.7 million for the same period of 2023.
Total e-commerce GMV⁽¹⁾ was RMB334.2 billion, representing an increase of 15.1% from RMB290.2 billion for the same period of 2023.
Total revenue increased by 11.4% to RMB31.1 billion from RMB27.9 billion for the same period of 2023. Online marketing services and live streaming contributed 56.6% and 30.0%, respectively, to the total revenue. The other 13.4% came from other services.
Gross profit increased by 17.0% to RMB16.9 billion from RMB14.5 billion for the same period of 2023. Gross profit margin in the third quarter of 2024 was 54.3%, improving from 51.7% for the same period of 2023.
Profit for the period was RMB3.3 billion, compared to RMB2.2 billion for the same period of 2023. Adjusted net profit⁽²⁾ increased to RMB3.9 billion from RMB3.2 billion for the same period of 2023.
Operating profit from the domestic segment⁽³⁾ increased to RMB3.5 billion from RMB3.2 billion for the same period of 2023. Operating loss from the overseas segment⁽³⁾ decreased to RMB153 million by 75.9% year-over-year.

Mr. Cheng Yixiao, Co-founder, Chairman, and Chief Executive Officer of Kuaishou, said, “In the third quarter of 2024, our commitment to developing breakthrough technology that creates more value for our users propelled our user base to record-breaking heights. The Kuaishou App achieved average DAUs of 407.5 million and MAUs of 714.1 million. Our globally leading large video generation model, Kling AI, is setting new industry standards, redefining how content is created, personalized and experienced. Increased engagement across our ecosystem has fueled steady commercial growth, with total revenue rising 11.4% year-over-year in the third quarter to RMB31.1 billion. Notably, revenue from our core businesses, including online marketing services and e-commerce, grew nearly 20.0% year-over-year. Our adjusted net profit rose 24.4% year-over-year to RMB3.9 billion, showing our ability to increase profitability. Looking ahead, our AI strategy aims to strengthen our current business lines and lay the foundation for sustainable growth across our dynamic user, content and commercial ecosystems.”

Third Quarter 2024 Financial Review

Revenue from our online marketing services increased by 20.0% to RMB17.6 billion for the third quarter of 2024, from RMB14.7 billion for the same period of 2023, primarily attributable to the increased consumption from marketing clients driven by continuous optimization of smart placement capabilities and algorithms.

Revenue from our live streaming business decreased by 3.9% to RMB9.3 billion for the third quarter of 2024 from RMB9.7 billion for the same period of 2023, as a result of our continuous efforts in building a healthy and sustainable live streaming ecosystem.

Revenue from our other services increased by 17.5% to RMB4.2 billion for the third quarter of 2024, from RMB3.5 billion for the same period of 2023, primarily due to the growth of our e-commerce business, represented by the growth in our e-commerce GMV. The growth in e-commerce GMV was driven by increases in the number of e-commerce monthly active paying users and monthly active merchants as a result of our continuous refined omni-domain operations.

Other Key Financial Information for the Third Quarter of 2024

Operating profit was RMB3.1 billion, increasing from RMB2.2 billion for the same period of 2023.

Adjusted EBITDA⁽⁴⁾ was RMB5.6 billion, increasing from RMB5.0 billion for the same period of 2023.

Total available funds⁽⁵⁾ reached RMB86.7 billion as of September 30, 2024.

Notes:

(1) Placed on or directed to our partners through our platform.
(2) We define “adjusted net profit” as profit for the period adjusted by share-based compensation expenses and net fair value changes on investments.
(3) Unallocated items, which consist of share-based compensation expenses, other income, and other gains, net, are not included.
(4) We define “adjusted EBITDA” as adjusted net profit for the period adjusted by income tax (benefits)/expenses, depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, and finance income, net.
(5) Total available funds which we considered in cash management included but not limited to cash and cash equivalents, time deposits, financial assets and restricted cash. Financial assets mainly included wealth management products and others.

Business Review

We grew our user base and increased our revenues and profits in the third quarter of 2024 despite a challenging macro environment. We achieved a new milestone of over 400 million quarterly average DAUs and recorded strong financial performance, driven by our unwavering dedication to our technology-driven, user-centric business philosophy. Our total revenue grew by 11.4% year-over-year to RMB31.1 billion, and revenue from our core commercial business, including online marketing services and other services, primarily e-commerce, increased by nearly 20.0% year-over-year in the third quarter of 2024. Our adjusted net profit rose by 24.4% year-over-year to RMB3.9 billion, evidencing our sustained profitability improvements.

We continued to advance the integration and application of large models for content creation, understanding and recommendation, empowering our content and commercial ecosystem. In the third quarter of 2024, average daily spending with AIGC marketing materials from marketing clients surpassed RMB20 million. In September 2024, we unveiled the latest version of our video generation model, Kling AI (可靈AI) 1.5, which sets new industry benchmarks for video quality with higher-quality resolution of 1080p, dynamic performance, semantic responsiveness and feature enhancements such as motion brush.

User and content ecosystem

In the third quarter of 2024, the average DAUs and MAUs on the Kuaishou App reached 408 million and 714 million, respectively, representing year-over-year increases of 5.4% and 4.3%, respectively, which further solidified our leading position as the third largest app in China in terms of quarterly average DAU. The average daily time spent per DAU on the Kuaishou App was 132.2 minutes. Total user time spent on the Kuaishou App increased by 7.3% year-over-year, with average daily live streaming and short video views reaching nearly 110 billion.

In line with our strategy to promote high-quality user growth, we enhanced our capabilities in leveraging marketing channels for user acquisition and optimized product features, while integrating user acquisition initiatives with commercial scenarios such as e-commerce. These efforts enabled us to expand our user base and enabled more users to access our products more frequently. We also progressed our user retention initiatives by enriching the interactive community experience. For example, to drive user engagement and increase user stickiness, we refined private messaging features across various scenarios, introduced more innovative features and enhanced the comment ranking system. In terms of algorithm, we developed new approaches to improve user retention by modeling users’ diverse interests, user-to-user follow relationships and drivers for opening the Kuaishou App.

In terms of content operations, we have established a unique, multi-faceted ecosystem by developing specialized content verticals aligned with users’ interests, supporting standout creators whose content represents Kuaishou’s distinctive brand, and expanding our brand visibility and user reach with high-profile events. In the sports vertical, as a rights-holding broadcaster of the Olympic Games Paris 2024, we delivered a comprehensive content matrix that included panoramic on-demand event coverage, exclusive self-developed IP content, interactive features, and diverse user-generated content, creating an all-encompassing Olympic experience for users. During the Olympic Games Paris 2024, Olympic-related content on the Kuaishou App generated 310.6 billion impressions, with 640 million users watching the Olympic Games on our platform and generating 15.9 billion interactions.

With respect to our search business, in the third quarter of 2024, we optimized the search results page to improve user experience, significantly increasing our search user penetration. In the third quarter of 2024, average MAUs for Kuaishou searches exceeded 500 million, and average daily searches increased by over 20.0% year-over-year to over 700 million with daily searches peaking at over 800 million. Moreover, user searches accelerated the growth of our revenue-generating businesses related to searches by enabling us to gain deeper insights into users’ needs.

Online marketing services

In the third quarter of 2024, revenue from online marketing services grew by 20.0% year-over-year, reaching RMB17.6 billion, demonstrating the sustainable growth of our online marketing services business. By continuously improving our data infrastructure, smart placement products and algorithms, we achieved a higher placement ROI for our marketing clients, leading to increased bids. Additionally, our large AI models’ semantic understanding of marketing content and merchandise characteristics enables us to match users and merchandise more accurately for our merchants, boosting marketing conversion efficiency.

In the third quarter of 2024, revenue growth of our online marketing services was primarily driven by external marketing clients. Marketing spending in media information, e-commerce platforms and local services grew faster year-over-year. In the media information vertical, marketing spending from commercialized short plays grew significantly. We increased user payment conversion rate through high-quality content offerings and the implementation of smart dynamic subsidy strategies, improved placement outcomes for our marketing clients. In the third quarter of 2024, we accelerated the implementation of the In-Apps Ads (IAA, 應用內廣告) short play model, expanding our user base for free short plays. These efforts contributed to a more than three-fold year-over-year increase in short-play marketing spending during the same period. We also introduced differentiated Universal Auto X (UAX, 全自動投放解決方案) placement solutions for various industries and scenarios, enhancing the stability of clients’ marketing placements and driving increased budget allocation. As a result, total marketing spending through UAX accounted for approximately 50.0% of overall marketing spending by external marketing clients in the third quarter of 2024.

Revenue growth of our closed-loop marketing services remained robust in the third quarter of 2024. The number of monthly active merchants using marketing placements increased by over 50.0% year over year. We provided simplified, automated marketing placement services for small and medium-sized merchants, enabling them to increase their GMV through marketing placements and significantly improving the retention rate of these merchants. We focused on policy support, product iterations, and algorithm optimizations to improve the operating efficiency of converting short video traffic to live streaming, which increased marketing spending in this scenario by nearly 20.0% year-over-year in the third quarter of 2024. Smart marketing placement is now a critical element of merchants’ sustainable operations on the Kuaishou App. In the third quarter of 2024, our omni-platform marketing solution and smart hosting products accounted for approximately 50.0% of total closed-loop marketing spending on the Kuaishou App.

In terms of brand marketing services, we provide clients with integrated solutions that drive both brand awareness and sales conversion through marketing science, KOL recommendations, and customized strategies to attract marketing clients. In the third quarter of 2024, we also capitalized on the Olympic Games Paris 2024 by partnering with over 150 brands, including Yili, China Mobile and FAW-Volkswagen, to support these clients’ rapid growth on Kuaishou with innovative marketing solutions empowered by our “sports+” strategy and content ecosystem.

E-commerce

Our e-commerce business in the third quarter of 2024 demonstrated its differentiation and resilience despite the third quarter being a traditionally slow season for e-commerce and ongoing challenges in consumer demand. We maintained strong market presence due to our solid foundation in content-based e-commerce and our strategy to provide “exceptional content, superior product.” By strategically refocusing on live streaming e-commerce, further unlocking the potential of short video e-commerce, and steadily expanding our pan shelf-based e-commerce, we are maximizing synergies across multiple e-commerce scenarios. These efforts to boost e-commerce supply, enrich our e-commerce ecosystem and increase user spending drove a 15.1% year-over-year increase in e-commerce GMV to RMB334.2 billion in the third quarter of 2024.

On the supply side, the number of average monthly active merchants increased by over 40.0% year-over-year in the third quarter of 2024. Small and medium-sized merchants’ performance on our platform exceeded expectations thanks to our strategic new merchant programs, including the Golden Bounty Initiative (斗金計劃), Set Sail Initiative (啟航計劃) and Uplift Initiative (扶搖計劃). These programs help early-stage merchants increase traffic and reduce uncertainties. In the third quarter of 2024, the number of new merchants joining Kuaishou increased by over 30.0% year-over-year. Meanwhile, for existing small and medium-sized merchants, we offered refined methodologies for content-based e-commerce to support various merchants’ operating capabilities on Kuaishou, facilitating their long-term business growth. Our merchants’ healthy growth enriched our platform’s merchandise ecosystem by expanding the number of merchandise categories by over 20.0% year-over-year in the third quarter of 2024 and providing users with a wider selection of high-quality products.

To enhance our content-based e-commerce, we customized operations for KOLs in different tiers. For top-tier KOLs, we introduced marketing features and tools, such as Exclusive Mega Group Buy (購物團) and Mega Crowd Deals (萬人團), to incentivize them to live stream and enhance the value of their content. To support small and medium-sized KOLs, we launched our Rising Star Initiative (新星計劃) in August 2024, which provides cash incentives and traffic support while collaborating with regional service providers for local operations. In the third quarter of 2024, these initiatives helped small and medium-sized KOLs achieve strong growth, increasing their average daily GMV by over 40.0% quarter-over-quarter and average daily number of merchandise sold by over 25.0% quarter-over-quarter. We also launched our Blockbusters Initiative (爆品計劃), offering subsidies for selected merchandise to provide users with more affordable, high-quality products. As a result of these efforts, our GMV achieved by KOLs increased by over 24.0% year-over-year during the 818 Shopping Festival. Short video e-commerce also maintained rapid growth, with its GMV increasing by over 40.0% year-over-year in the third quarter of 2024, driven by blockbuster products and live-streaming highlights. Through strategy optimization such as integrating e-commerce contents with marketing materials, and joint modeling of short video traffic and simple live streaming rooms, we achieved a nearly 40% quarter-over-quarter growth in GMV driven by short videos directing traffic to live streaming rooms in the third quarter of 2024.

While stabilizing and growing our content-based e-commerce, our pan shelf-based e-commerce has become an increasingly effective complement. In the third quarter of 2024, pan shelf-based e-commerce GMV accounted for 27.0% of our total e-commerce GMV, and its growth continued to outperform our overall GMV growth, driven by both strong supply and demand. Average daily active merchants and average daily active paying users in our shopping mall grew by nearly 70.0% and over 60.0% year-over-year, respectively, in the third quarter of 2024.

The continued enrichment of our e-commerce supply and ecosystem and increased synergies across e-commerce scenarios further stimulated user demand. In the third quarter of 2024, the number of e-commerce monthly active paying users grew by 12.2% year-over-year to 133 million, continuing the growth trend established in the second quarter which was the peak season. Our diverse marketing strategies, which include targeted approaches for new, growing and mature users, also supported this growth. Tools such as coupons for live streaming rooms and order incentives have been instrumental in expanding our user base and improving conversion rate and transaction efficiency. Going forward, we remain committed to our user-centric approach. By leveraging integrated live streaming and short video content, along with our pan shelf-based e-commerce strategy, we will continue to empower merchants and KOLs to grow holistically and provide a better shopping experience for our users.

Live streaming

In the third quarter of 2024, revenue from our live-streaming business was RMB9.3 billion, with the year-over-year decline continuing to narrow sequentially. As an instrumental component of our content ecosystem and ongoing driver of user engagement, we remain focused on fostering a healthy, sustainable live-streaming ecosystem. On the supply side, multi-host live streaming and other emerging product categories continued to grow. Increasing professionalism and institutionalization of streamers and our partner talent agencies’ enhanced operational capabilities supported this growth, contributing to more refined and effective content delivery. By the end of the third quarter of 2024, the number of our partner talent agencies increased by more than 40.0%, and the number of talent agency-managed streamers increased by over 60.0%, both on a year-over-year basis.

We continued to expand the variety of high-quality content on our platform, with rich entertainment and local cultural content as foundational pillars. We focused on different niche areas and launched multiple content IPs featuring talented streamers, such as the Grand Stage (直播大舞台) and the New Episodes of National Arts (國藝有新番) live-streaming programs. By integrating content IPs with local culture and tourism, we successfully promoted the development of local cultural and tourism industries. To further enhance our gaming live-streaming ecosystem, we implemented a comprehensive content marketing strategy that included incubation of new games, game distribution through live streaming, and cultivation of top-tier influencers, among other initiatives. We also developed gaming content with distinct Kuaishou characteristics. In the third quarter of 2024, the number of active gaming live-streaming creators exceeded 30 million, strengthening the appeal of our diverse top-notch content to live-streaming users.

Our “live streaming+” services continued to empower traditional industries. For example, we continued to advance our services related to recruitment and real estate, leading to ongoing rapid growth in the number of customers served and transaction scale. In the third quarter of 2024, the average daily number of resume submissions on Kwai Hire (快聘) nearly doubled, and matching rate grew by over 20.0%, both on a year-over-year basis. For Ideal Housing (理想家), daily lead generation surged by over four-fold compared with the same period last year.

Overseas

We progressed our overseas business in Brazil, where Kwai is building strong local brands by deepening local content operations. In the third quarter of 2024, we maintained high-quality, robust user growth, achieving breakthroughs in innovative user acquisition channels and improving user retention. DAUs in Brazil grew by 9.7% year-over-year in the third quarter of 2024. As for content operations, we promoted greater visibility for premium content through algorithm optimizations across multiple verticals such as entertainment, news, everyday life, sports and others. Leveraging Kwai’s strong user base and growing brand influence, we further optimized the monetization mechanism for creators and refined products flow to enhance their earning potential and motivation. Meanwhile, the efficiency of content subsidy programs improved steadily, supporting creators’ sustainable operations. User activity grew consistently, with the average daily time spent per DAU in Brazil rising by 4.2% year-over-year in the third quarter of 2024.

In terms of monetization, we continued to enhance marketing clients’ experience with improved traffic mechanisms and efficiency while ensuring a healthy ecosystem. We also embedded new traffic scenarios to increase marketing revenue, resulting in a year-over-year increase in online marketing revenue that doubled in the third quarter of 2024, and our total overseas revenues reached RMB1.3 billion, growing by 104.1% year-over-year. Along with this rapid revenue growth, we maintained highly efficient operations under an ROI-driven approach. This led to the operating loss from our overseas business decreasing by 75.9% year-over-year to RMB153 million in the third quarter of 2024. In addition, after more than a year of exploring e-commerce business models in Brazil, we made initial progress with our e-commerce business in terms of products, content, services and transaction efficiency, providing overseas users with more functions and services. These initial strides lay a solid foundation for our future growth overseas.

About Kuaishou

Kuaishou is a leading content community and social platform in China and globally, committed to becoming the most customer-obsessed company in the world. Kuaishou uses its technological backbone, powered by cutting-edge AI technology, to continuously drive innovation and product enhancements that enrich its service offerings and application scenarios, creating exceptional customer value. Through short videos and live streams on Kuaishou’s platform, users can share their lives, discover goods and services they need and showcase their talent. By partnering closely with content creators and businesses, Kuaishou provides technologies, products, and services that cater to diverse user needs across a broad spectrum of entertainment, online marketing services, e-commerce, local services, gaming, and much more.

Forward-Looking Statements

Certain statements included in this press release, other than statements of historical fact, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “might”, “can”, “could”, “will”, “would”, “anticipate”, “believe”, “continue”, “estimate”, “expect”, “forecast”, “intend”, “plan”, “seek”, or “timetable”. These forward-looking statements, which are subject to risks, uncertainties, and assumptions, may include our business outlook, estimates of financial performance, forecast business plans, growth strategies and projections of anticipated trends in our industry. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, many of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in the future. Underlying these forward-looking statements are a large number of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements. Except as required by law, we are not obligated, and we undertake no obligation, to release publicly any revisions to these forward-looking statements that might reflect events or circumstances occurring after the date of this press release or those that might reflect the occurrence of unanticipated events.

For investor and media inquiries, please contact

Kuaishou Technology

Investor Relations
Email: ir@kuaishou.com

CONDENSED CONSOLIDATED INCOME STATEMENT

	Unaudited			Unaudited
	Three Months Ended			Nine Months Ended
	September 30, 2024	June 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
	*RMB’Million*	RMB’Million	RMB’Million	*RMB’Million*	RMB’Million
Revenues	31,131	30,975	27,948	91,514	80,909
Cost of revenues	(14,217)	(13,840)	(13,495)	(41,345)	(40,810)
Gross profit	16,914	17,135	14,453	50,169	40,099
Selling and marketing expenses	(10,364)	(10,040)	(8,939)	(29,788)	(26,298)
Administrative expenses	(796)	(792)	(898)	(2,050)	(2,762)
Research and development expenses	(3,100)	(2,805)	(2,967)	(8,748)	(9,042)
Other income	194	34	434	346	599
Other gains, net	271	374	128	1,090	213
Operating profit	3,119	3,906	2,211	11,019	2,809
Finance income, net	37	66	135	217	404
Share of losses of investments accounted for using the equity method	(6)	(19)	(26)	(28)	(58)
Profit before income tax	3,150	3,953	2,320	11,208	3,155
Income tax benefits/(expenses)	120	27	(138)	162	(368)
Profit for the period	3,270	3,980	2,182	11,370	2,787
Attributable to:
— Equity holders of the Company	3,268	3,979	2,181	11,366	2,788
— Non-controlling interests	2	1	1	4	(1)
	3,270	3,980	2,182	11,370	2,787

CONDENSED CONSOLIDATED BALANCE SHEET

	Unaudited	Audited
	As of September 30, 2024	As of December 31, 2023
	*RMB’Million*	RMB’Million
ASSETS
Non-current assets
Property and equipment	13,366	12,356
Right-of-use assets	9,759	10,399
Intangible assets	1,064	1,073
Investments accounted for using the equity method	163	214
Financial assets at fair value through profit or loss	20,711	5,245
Other financial assets at amortized cost	74	283
Deferred tax assets	6,264	6,108
Long-term time deposits	18,332	9,765
Other non-current assets	732	492
	70,465	45,935

Current assets
Trade receivables	6,215	6,457
Prepayments, other receivables and other current assets	4,599	4,919
Financial assets at fair value through profit or loss	26,846	25,128
Other financial assets at amortized cost	518	950
Short-term time deposits	10,903	9,874
Restricted cash	83	128
Cash and cash equivalents	12,466	12,905
	61,630	60,361

Total assets	132,095	106,296

CONDENSED CONSOLIDATED BALANCE SHEET

	Unaudited	Audited
	As of September 30, 2024	As of December 31, 2023
	*RMB’Million*	RMB’Million
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company

Share capital	–	–
Share premium	269,745	273,459
Treasury shares	–	(88)
Other reserves	34,718	33,183
Accumulated losses	(246,125)	(257,491)
	58,338	49,063
Non-controlling interests	15	11

Total equity	58,353	49,074


LIABILITIES
Non-current liabilities
Borrowings	9,000	–
Lease liabilities	7,592	8,405
Deferred tax liabilities	15	18
Other non-current liabilities	19	21
	16,626	8,444

Current liabilities
Accounts payables	26,084	23,601
Other payables and accruals	22,089	16,592
Advances from customers	4,648	4,036
Income tax liabilities	399	1,222
Lease liabilities	3,896	3,327
	57,116	48,778

Total liabilities	73,742	57,222

Total equity and liabilities	132,095	106,296

Financial Information by Segment

Unaudited Three Months Ended

September 30, 2024

June 30, 2024

September 30, 2023

Domestic

Overseas

Unallocated
items

Total

Domestic

Overseas

Unallocated
items

Total

Domestic

Overseas

Unallocated
items

Total

RMB’Million

RMB’Million

Revenues

29,800

1,331

–

31,131

29,896

1,079

–

30,975

27,296

652

–

27,948

Operating profit/(loss)

3,505

(153)

(233)

3,119

4,498

(277)

(315)

3,906

3,155

(635)

(309)

2,211

	Unaudited Nine Months Ended
	September 30, 2024				September 30, 2023
	Domestic	Overseas	Unallocated items	Total	Domestic	Overseas	Unallocated items	Total
	*RMB’Million*				RMB’Million
Revenues	88,113	3,401	–	91,514	79,472	1,437	–	80,909
Operating profit/(loss)	11,994	(698)	(277)	11,019	7,152	(2,238)	(2,105)	2,809

Reconciliation of Non-IFRS Accounting Standards Measures to the Nearest IFRS Accounting Standards Measures

	Unaudited			Unaudited
	Three Months Ended			Nine Months Ended
	September 30,	June 30,	September 30,	September 30,	September 30,
	2024	2024	2023	2024	2023
	*RMB’Million*	RMB’Million	RMB’Million	*RMB’Million*	RMB’Million

Profit for the period	3,270	3,980	2,182	11,370	2,787
Adjusted for:
Share-based compensation expenses	698	723	871	1,713	2,917
Net fair value changes on investments⁽¹⁾	(20)	(24)	120	(68)	205

Adjusted net profit	3,948	4,679	3,173	13,015	5,909


Adjusted net profit	3,948	4,679	3,173	13,015	5,909
Adjusted for:
Income tax (benefits)/expenses	(120)	(27)	138	(162)	368
Depreciation of property and equipment	997	997	1,029	2,971	2,971
Depreciation of right-of-use assets	765	735	737	2,216	2,333
Amortization of intangible assets	25	26	38	78	115
Finance income, net	(37)	(66)	(135)	(217)	(404)

Adjusted EBITDA	5,578	6,344	4,980	17,901	11,292

Note:
(1) Net fair value changes on investments represents net fair value (gains)/losses on financial assets at fair value through profit or loss of our investments in listed and unlisted entities, net (gains)/losses on deemed disposals of investments and impairment provision for investments, which is unrelated to our core business and operating performance and subject to market fluctuations, and exclusion of which provides investors with more relevant and useful information to evaluate our performance.

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SOURCE Kuaishou Technology

Earnings News

ATRenew Inc. Reports Unaudited Third Quarter 2024 Financial Results

20.11.2024 by admin

SHANGHAI, Nov. 20, 2024 /PRNewswire/ — ATRenew Inc. (“ATRenew” or the “Company”) RERE, a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced its unaudited financial results for the three months ended September 30, 2024.

Third Quarter 2024 Highlights

Total net revenues grew by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the third quarter of 2023.
Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the third quarter of 2023. Adjusted income from operations (non-GAAP)^[1] was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the third quarter of 2023.
Number of consumer products transacted^[2]was 9.1 million compared to 8.2 million in the third quarter of 2023.

Mr. Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer of ATRenew, commented, “We are delighted to report that our total net revenues reached RMB4.05 billion in the third quarter of 2024, representing a robust year-over-year growth of 24.4%. We are particularly encouraged by the widespread adoption of our consumer electronics trade-in services, which provide consumers with a seamless experience and competitive pricing. Our AHS stores maintain their industry-leading position, serving as the preferred destination for users to recycle reusable consumer products and purchase quality-assured, value-for-money pre-owned electronic devices.”

Mr. Rex Chen, Chief Financial Officer of ATRenew, added, “The third quarter marked another milestone in our path to enhanced profitability, as we achieved positive GAAP income from operations and our non-GAAP income from operations exceeded RMB100 million for the first time. These results reflect our successful initiatives to optimize operating expenses and the diminishing impact of amortization expenses from historical acquisitions. We also demonstrated our commitment to shareholder returns by repurchasing over US$12 million of our shares during the quarter. Looking ahead, we remain focused on driving operational efficiency and delivering sustainable value to our users and shareholders.”

^[1].See “Reconciliations of GAAP and Non-GAAP Results” for more information.

^[2].“Number of consumer products transacted” represents the number of consumer products distributed to merchants and consumers through transactions on the Company’s PJT Marketplace, Paipai Marketplace and other channels the Company operates in a given period, prior to returns and cancellations, excluding the number of consumer products collected through AHS Recycle; a single consumer product may be counted more than once according to the number of times it is transacted on PJT Marketplace, Paipai Marketplace and other channels the Company operates through the distribution process to end consumer.

Third Quarter 2024 Financial Results

REVENUE

Total net revenues increased by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the same period of 2023.

Net product revenues increased by 25.6% to RMB3,672.2 million (US$523.3 million) from RMB2,924.0 million in the same period of 2023. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics both through the Company’s online and offline channels.
Net service revenues increased by 13.9% to RMB379.0 million (US$54.0 million), compared to RMB332.8 million in the same period of 2023. This increase was primarily due to an increase in the service revenue generated from PJT Marketplace and multi-category recycling business.

OPERATING COSTS AND EXPENSES

Operating costs and expenses were RMB4,028.1 million (US$574.0 million), compared to RMB3,307.5 million in the same period of 2023, representing an increase of 21.8%.

Merchandise costs were RMB3,242.8 million (US$462.1 million), compared to RMB2,611.0 million in the same period of 2023, representing an increase of 24.2%. This was primarily due to the growth in product sales.
Fulfillment expenses were RMB347.3 million (US$49.5 million), compared to RMB287.7 million in the same period of 2023, representing an increase of 20.7%. The increase was primarily due to (i) an increase in personnel costs and logistics expenses as the Company conducted more recycling and transaction activities compared with the same period of 2023, and (ii) an increase in operation center related expenses as the Company expanded its store networks in the third quarter of 2024.
Selling and marketing expenses were RMB315.3 million (US$44.9 million), compared to RMB299.5 million in the same period of 2023, representing an increase of 5.3%. The increase was primarily due to (i) an increase in advertising expenses and promotional campaign related expenses, and (ii) an increase in share-based compensation expenses. The increase was partially offset by a decrease in amortization of intangible assets and deferred cost resulting from assets and business acquisitions as the maturity of some intangible assets and deferred cost in the third quarter of 2023.
General and administrative expenses were RMB69.3 million (US$9.9 million), compared to RMB69.8 million in the same period of 2023, representing a decrease of 0.7%, primarily due to a decrease in share-based compensation expenses. The decrease was partially offset by an increase in other personnel cost.
Technology and content expenses were RMB53.4 million (US$7.6 million), compared to RMB39.4 million in the same period of 2023, representing an increase of 35.5%. The increase was primarily due to an increase in personnel costs in connection with the ongoing maintenance of the Company’s operation centers and system.

INCOME (LOSS) FROM OPERATIONS

Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the same period of 2023.

Adjusted income from operations (non-GAAP) was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the same period of 2023.

NET INCOME (LOSS)

Net income was RMB17.9 million (US$2.6 million), compared to a net loss of RMB44.2 million in the same period of 2023.

Adjusted net income (non-GAAP) was RMB90.1 million (US$12.8 million), compared to RMB47.6 million in the same period of 2023.

BASIC AND DILUTED NET INCOME PER ORDINARY SHARE

Basic and diluted net income per ordinary share were RMB0.11 (US$0.02), compared to basic and diluted net loss of RMB0.27 in the same period of 2023.

Adjusted basic and diluted net income per ordinary share (non-GAAP) were RMB0.56 (US$0.08) and RMB0.55 (US$0.08), compared to RMB0.30 and RMB0.29 in the same period of 2023.

CASH AND CASH EQUIVALENTS, RESTRICTED CASH, SHORT-TERM INVESTMENTS AND FUNDS RECEIVABLE FROM THIRD PARTY PAYMENT SERVICE PROVIDERS

Cash and cash equivalents, restricted cash, short-term investments and funds receivable from third party payment service providers were RMB2,350.5 million (US$334.9 million) as of September 30, 2024, as compared to RMB2,854.4 million as of December 31, 2023.

Business Outlook

For the fourth quarter of 2024, the Company currently expects its total revenues to be between RMB4,740.0 million and RMB4,840.0 million, representing an increase of 22.4% to 24.9% year-over-year. This forecast only reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Recent Development

On August 29, 2024, ATRenew announced an improvement in its Environmental, Social and Governance (ESG) score as assessed by S&P Global’s Corporate Sustainability Assessment in 2024, placing it in the 93rd percentile among its global RTS retailing industry peers. This is primarily attributable to ATRenew’s commitment to ESG, particularly greater transparency in its climate strategy, human capital management, and business ethics.

During the third quarter of 2024, ATRenew repurchased a total of approximately 4.9 million ADSs for approximately US$12.1 million under its current share repurchase program which authorizes the Company to repurchase up to US$50 million worth of its shares (including ADSs) through June 27, 2025. As of September 30, 2024, the Company had repurchased a total of approximately 8.2 million ADSs for approximately US$20.1 million under this share repurchase program.

Conference Call Information

The Company’s management will hold a conference call on Wednesday, November 20, 2024 at 07:00 A.M. Eastern Time (or 08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers:

International:		1-412-317-6061
United States Toll Free:		1-888-317-6003
Mainland China Toll Free:		4001-206115
Hong Kong Toll Free:		800-963976
Access Code:		3668505

The replay will be accessible through November 27, 2024 by dialing the following numbers:

International:		1-412-317-0088
United States Toll Free:		1-877-344-7529
Access Code:		3972162

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at ir.atrenew.com.

About ATRenew Inc.

Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew. Since its inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, addressing the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services, and distributing the devices to prolong their lifecycle. ATRenew’s open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Through its end-to-end coverage of the entire value chain and its proprietary inspection, grading, and pricing technologies, ATRenew sets the standard for China’s pre-owned consumer electronics industry. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024.

Use of Non-GAAP Financial Measures

The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses adjusted income from operations, adjusted net income and adjusted net income per ordinary share as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted income from operations is loss from operations excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income is net loss excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income per ordinary share is adjusted net income attributable to ordinary shareholders divided by weighted average number of shares used in calculating net loss per ordinary share.

The Company presents non-GAAP financial measures because they are used by the Company’s management to evaluate the Company’s financial and operating performance and formulate business plans. The Company believes that adjusted income from operations and adjusted net income help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that are included in loss from operations and net loss. The Company also believes that the use of non-GAAP financial measures facilitates investors’ assessment of the Company’s operating performance. The Company believes that adjusted income from operations and adjusted net income provide useful information about the Company’s operating results, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company’s operations. The share-based compensation expenses, amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company’s. In light of the foregoing limitations, the non-GAAP financial measures for the period should not be considered in isolation from or as an alternative to income from operations, net income, and net income attributable to ordinary shareholders per share, or other financial measures prepared in accordance with U.S. GAAP.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company’s performance. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliations of GAAP and Non-GAAP Results.”

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew’s strategies; ATRenew’s future business development, financial condition and results of operations; ATRenew’s ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew’s filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

In China:
ATRenew Inc.
Investor Relations
Email: ir@atrenew.com

In the United States:
ICR LLC.
Email: atrenew@icrinc.com
Tel: +1-212-537-0461

ATRENEW INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share and otherwise noted)

	As of December 31,		As of September 30,
	2023		2024
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		1,978,696		1,347,338		191,994
Restricted cash		210,000		132,000		18,810
Short-term investments		410,547		630,123		89,792
Amount due from related parties, net		89,592		218,771		31,175
Inventories		1,017,155		678,026		96,618
Funds receivable from third party payment service providers		253,107		241,047		34,349
Prepayments and other receivables, net		567,622		754,617		107,532
Total current assets		4,526,719		4,001,922		570,270
Non-current assets:
Long-term investments		467,095		558,221		79,546
Property and equipment, net		148,223		159,236		22,691
Intangible assets, net		270,631		100,496		14,321
Other non-current assets		80,411		149,115		21,249
Total non-current assets		966,360		967,068		137,807
TOTAL ASSETS		5,493,079		4,968,990		708,077
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings		349,931		307,291		43,789
Accounts payable		532,293		105,314		15,007
Contract liabilities		119,715		81,571		11,624
Accrued expenses and other current liabilities		465,123		478,145		68,135
Accrued payroll and welfare		146,371		148,945		21,224
Amount due to related parties		78,032		116,255		16,566
Total current liabilities		1,691,465		1,237,521		176,345
Non-current liabilities:
Operating lease liabilities, non-current		22,495		80,366		11,452
Deferred tax liabilities		67,658		42,099		5,999
Total non-current liabilities		90,153		122,465		17,451
TOTAL LIABILITIES		1,781,618		1,359,986		193,796
TOTAL SHAREHOLDERS’ EQUITY		3,711,461		3,609,004		514,281
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		5,493,079		4,968,990		708,077

ATRENEW INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands, except share and per share and otherwise noted)

	Three months ended September 30,						Nine months ended September 30,
	2023		2024				2023		2024
	RMB		RMB		US$		RMB		RMB		US$
Net revenues
Net product revenues		2,923,970		3,672,239		523,290		8,135,824		10,383,813		1,479,682
Net service revenues		332,787		378,999		54,007		956,386		1,095,264		156,074
Operating (expenses) income ⁽¹⁾⁽²⁾
Merchandise costs		(2,611,018)		(3,242,843)		(462,101)		(7,188,902)		(9,181,300)		(1,308,325)
Fulfillment expenses		(287,704)		(347,270)		(49,486)		(822,913)		(985,325)		(140,408)
Selling and marketing expenses		(299,491)		(315,293)		(44,929)		(933,835)		(990,607)		(141,160)
General and administrative expenses		(69,826)		(69,302)		(9,875)		(203,794)		(215,671)		(30,733)
Technology and content expenses		(39,430)		(53,396)		(7,609)		(131,905)		(153,391)		(21,858)
Other operating income, net		22,640		1,751		250		32,512		23,082		3,289
Income (loss) from operations		(28,072)		24,885		3,547		(156,627)		(24,135)		(3,439)
Interest expense		(2,186)		(3,615)		(515)		(5,498)		(12,332)		(1,757)
Interest income		11,083		8,686		1,238		24,658		20,611		2,937
Other (loss) income, net		(4,428)		47		7		(6,719)		(41,305)		(5,886)
Income (loss) before income taxes and share of loss in equity method investments		(23,603)		30,003		4,277		(144,186)		(57,161)		(8,145)
Income tax benefits		10,047		5,949		848		33,607		24,536		3,496
Share of loss in equity method investments		(30,632)		(18,069)		(2,575)		(48,449)		(53,028)		(7,556)
Net income (loss)		(44,188)		17,883		2,550		(159,028)		(85,653)		(12,205)
Net income (loss) per ordinary share:
Basic		(0.27)		0.11		0.02		(0.99)		(0.53)		(0.08)
Diluted		(0.27)		0.11		0.02		(0.99)		(0.53)		(0.08)
Weighted average number of shares used in calculating net income (loss) per ordinary share
Basic		161,338,983		161,405,774		161,405,774		161,393,190		162,011,110		162,011,110
Diluted		161,338,983		164,258,720		164,258,720		161,393,190		162,011,110		162,011,110
Net income (loss)		(44,188)		17,883		2,550		(159,028)		(85,653)		(12,205)
Foreign currency translation adjustments		(5,676)		(7,093)		(1,011)		15,897		(7,183)		(1,024)
Total comprehensive income (loss)		(49,864)		10,790		1,539		(143,131)		(92,836)		(13,229)

ATRENEW INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (CONTINUED)
(Amounts in thousands, except share and per share and otherwise noted)

	Three months ended September 30,						Nine months ended September 30,
	2023		2024				2023		2024
	RMB		RMB		US$		RMB		RMB		US$
(1) Includes share-based compensation expenses as follows:
Fulfillment expenses		(5,362)		(3,021)		(430)		(17,910)		(15,992)		(2,279)
Selling and marketing expenses		(5,165)		(12,220)		(1,741)		(13,266)		(56,792)		(8,093)
General and administrative expenses		(19,239)		(13,854)		(1,974)		(56,182)		(45,924)		(6,544)
Technology and content expenses		(5,218)		(3,657)		(521)		(15,649)		(13,611)		(1,940)
(2) Includes amortization of intangible assets and deferred cost resulting from assets and business acquisitions as follows:
Selling and marketing expenses		(66,412)		(46,263)		(6,592)		(222,337)		(169,154)		(24,104)
Technology and content expenses		(482)		(130)		(19)		(1,446)		(981)		(140)

Reconciliations of GAAP and Non-GAAP Results
(Amounts in thousands, except share and per share and otherwise noted)

	Three months ended September 30,						Nine months ended September 30,
	2023		2024				2023		2024
	RMB		RMB		US$		RMB		RMB		US$
Income (loss) from operations		(28,072)		24,885		3,547		(156,627)		(24,135)		(3,439)
Add:
Share-based compensation expenses		34,984		32,752		4,666		103,007		132,319		18,856
Amortization of intangible assets and deferred cost resulting from assets and business acquisitions		66,894		46,393		6,611		223,783		170,135		24,244
Adjusted income from operations (non-GAAP)		73,806		104,030		14,824		170,163		278,319		39,661
Net income (loss)		(44,188)		17,883		2,550		(159,028)		(85,653)		(12,205)
Add:
Share-based compensation expenses		34,984		32,752		4,666		103,007		132,319		18,856
Amortization of intangible assets and deferred cost resulting from assets and business acquisitions		66,894		46,393		6,611		223,783		170,135		24,244
Less:
Tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions		(10,047)		(6,972)		(994)		(33,607)		(25,559)		(3,642)
Adjusted net income (non- GAAP)		47,643		90,056		12,833		134,155		191,242		27,253
Adjusted net income per ordinary share (non-GAAP):
Basic		0.30		0.56		0.08		0.83		1.18		0.17
Diluted		0.29		0.55		0.08		0.80		1.16		0.17
Weighted average number of shares used in calculating net income per ordinary share
Basic		161,338,983		161,405,774		161,405,774		161,393,190		162,011,110		162,011,110
Diluted		166,112,358		164,258,720		164,258,720		167,609,332		165,040,389		165,040,389

View original content:https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-third-quarter-2024-financial-results-302311061.html

SOURCE ATRenew Inc.

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Major Chinese fund companies have announced a reduction in fees for a selection of equity exchange-traded funds (ETFs). This move intensifies the price war in the booming $400 billion ETF market.

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The ODP now organizes critical information into clear tabs – Summary, Key Risks, Offering Details and Documents – enabling investors to quickly access vital data such as the sponsor’s pro forma, market insights and CrowdStreet’s due diligence reports. This initiative reflects the company’s commitment to transparency and investor empowerment.

Imbriglia also highlighted CrowdStreet’s expansion into new asset classes for 2025, including private lending, private equity and venture capital. These efforts, led by industry veteran Sheldon Chang, aim to unlock opportunities that were once exclusive to institutions and ultra-high-net-worth individuals. By broadening its offerings, CrowdStreet allows members to diversify their portfolios and pursue financial growth in the private markets.

In response to past challenges, such as the Nightingale incident, CrowdStreet has implemented industry-leading security and oversight measures. Transitioning to a FINRA-regulated broker-dealer model and funding deals through third-party escrow accounts are just a few examples of how CrowdStreet safeguards investor funds. These efforts, combined with tools like Project Status Reports, Quarterly Market Snapshots and an enhanced Offering Detail Page (ODP), reinforce the platform’s dedication to transparency and trust.

With a strengthened leadership team, expanded offerings and a clear focus on transparency, CrowdStreet is poised to lead the private market industry into its next chapter – delivering value, confidence and empowerment to a growing community of independent investors.

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Day: November 20, 2024