Weimob Group significantly narrowed its adjusted net loss in 2023.
On the evening of March 28, Weimob (2013:HK) released its 2023 annual report. The company's total revenue in 2023 reached CNY 2.228 billion, representing a 21.1% year-on-year growth. Gross profit also saw a year-on-year increase of 36.0% to CNY 1.484 billion, with a gross profit margin of 66.6%. The adjusted net loss decreased substantially by 73.4% year-on-year. In the second half of 2023, the company's operational cash flow turned positive at CNY 60 million, and the adjusted EBITDA reached CNY 13 million.
The financial report indicates that in 2023, Weimob's subscription solution revenue amounted to CNY 1.349 billion, a 4.5% year-on-year increase. Gross profit from this segment reached CNY 893 million, marking a 16% improvement, with a gross profit margin of 66.1%. The number of paying merchants was 96,339, with an average user income of CNY 14,007, representing an 8% year-on-year increase.
During the reporting period, Weimob's intelligent retail revenue reached approximately CNY 613 million, a 19.5% year-on-year increase, constituting 45.5% of the subscription solution revenue. In 2023, Weimob significantly deepened its "industry solutions" and achieved significant results in four major industries, signing contracts with many benchmark customers.
In 2023, Weimob facilitated an approximate gross advertising revenue of CNY 14.466 billion, a 44.5% year-on-year increase. Its AI application product, Weimob WAI, continuously strengthened its capabilities in core businesses such as SaaS and marketing through independent research and development and collaboration with AI technology partners, thus solidifying its competitive edge in real commercial scenarios.
Benefiting from the growth of video advertising and continuous regional expansion and multi-channel development, Weimob's marketing business maintained rapid growth. With the acceleration of video commercialization, Weimob's marketing is expected to continue its rapid growth this year.
Additionally, as a third-party SaaS service provider for Tencent Advertising, Weimob supports technical services such as landing page construction and collaborates closely with Tencent Advertising to optimize the advertising chain transaction ecosystem and enhance user experience. In 2023, Weimob's consumption from Tencent Advertising increased by 63% year-on-year.
In March 2024, Weimob strategically invested in Banfan Technology to lay out the short video track, complementing each other's advantages in professional investment and content creation, enhancing the original content creation capability of digital marketing, building a full-chain short video business including IP creativity, film and television production, film release, and user growth, and expanding more commercial scenarios that are expected to be profoundly empowered by AI, maximizing the benefits brought about by technological changes.
Moreover, Weimob's international business has made significant progress. Currently, Weimob has collaborated with mainstream foreign media such as Google, Facebook, TikTok, and Apple Ads to expand brand exposure through multiple channels, greatly accelerating the digitalization of Chinese brands going global. In particular, the international business progress of its subsidiary, HEADING, is particularly remarkable. As of now, HEADING has served numerous large enterprises or international supermarket chains such as Miniso, PopMart, SUNGIVEN Food, Dubai WEMART Group, DIVIMART in the Philippines, ATTAW in the Philippines, and Ranch Market in Thailand. Over 80 countries or regions overseas have clients using the Haiding system.
At the time of publication, Weimob Group's stock was priced at HKD 1.92 per share, with a total market value of HKD 5.366 billion.