Yesasia Holdings Limited · HKEX:2209
Yesasia — H1 2024 Earnings Presentation
37 slides from Yesasia's earnings presentation, Sep 9, 2024
Slide 1: 2024 Interim Results
2024 Interim Results YesAsia Holdings Limited 喆麗控股有限公司 HKEX stock code: 2209.HK
Slide 2: Disclaimer
DISCLAIMER THESE MATERIALS HAVE BEEN PREPARED BY YESASIA HOLDINGS LIMITED (THE "COMPANY") SOLELY FOR USE AT THIS PRESENTATION AND ARE NOT FOR PUBLIC DISSEMINATION. THESE SLIDES AND ANY OTHER MATERIALS USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND MUST BE TREATED AS SUCH BY THE ATTENDEES TO
Slide 3: Agenda
AGENDA 1 Executive Summary 2 2024 Interim Highlights 3 Financial Performance 4 Industry Potential & Business Strategies 5 Appendix
Slide 4: Executive Summary
Executive Summary ¢ ‘ie Y oe a \
Slide 5: Ventures into Expansion Phase
VENTURES INTO EXPANSION PHASE Market Recognition Accelerated Growth Long-term Development • 25+ years of global e-commerce track • Revenue (+80.2%) • Influencer program boosts B2C platforms record in Asian products 1H2024: US$163.3 million VS performance 1H2023: US$90.7 million • Included as a const
Slide 6: 2024 Interim Highlights
VW y 2024 Interim Highlights * |
Slide 7: Record High Performance for 1H Results
RECORD HIGH PERFORMANCE FOR 1H RESULTS Revenue Net Profit Beauty Products Sales +80.2% +610.6% +113.9% US$163.3 million US$11.1 million US$149.4 million Revenue Generated by The Largest Contributor to B2B Platform Sales Influencer Program Revenue Growth European Union +112.1% +115.2% +114.1% US$37.0
Slide 8: Financial Performance
Financial Performance
Slide 9: Profit and Loss Highlights
PROFIT AND LOSS HIGHLIGHTS US$’000 1H2024 1H2023 Change Revenue 163,348 90,657 +80.2% Gross Profit 50,192 28,182 +78.1% Profit for the Period 11,107 1,563 +610.6% US Cent 1H2024 1H2023 Change Basic earnings per share 2.80 0.39 +617.9% Diluted earnings per share 2.78 0.39 +612.8% 9
Slide 10: Revenue Analysis
REVENUE ANALYSIS Revenue by Business Unit Revenue by Regions US$’000 % as of total revenue 125,132 1H2023 | 1H2024 36,951 71,450 US & Canada 54,146 17,423 49.8% | 41.3% 4,174 1H2022 1H2023 1H2024 1H2022 1H2023 1H2024 YesStyle Platforms AsianBeautyWholeshale 76.6% of total revenue 22.6% of total reve
Slide 11: Profits Analysis
PROFITS ANALYSIS Gross Profit and Gross Profit Margin Net Profit and Net Profit Margin US$’000 US$’000 6.8% 34.6% 31.1% 30.7% 1.7% 11,107 50,192 1,563 1H2022 1H2023 1H2024 28,182 (2,264) 21,778 Profit before Tax 1H2022 1H2023 1H2024 US$’000 US$’000 1H2022 1H2023 1H2024 YesStyle Platforms 19,510 23,0
Slide 12: Cost Analysis
COST ANALYSIS Cost of Sales as a Percentage of Revenue % as of total revenue 1H2023 | 1H2024 Freight Charges - Trend and Percentage of Revenue (US$’000) 22.0% 21.5% 35,104 19,986 Product cost Freight charges 46.3% | 47.3% 22.0% | 21.5% 1H2023 1H2024 Revenue Trend by Business Unit and Growth Rate (US
Slide 13: Expenses Analysis
EXPENSES ANALYSIS Expenses as a Percentage of Revenue Selling Expenses 16.1% % as of total revenue 11.2% 12.3% 11.4% 1H2023 | 1H2024 Marketing and promotion fees Outsourced fulfilment fee - | - 4.7% | 5.0% Web content translation fee 0.7% 0.3% 0.1% | - Custom duties Finance costs Adminstrative expen
Slide 14: Cash Conversion Cycle Analysis
CASH CONVERSION CYCLE ANALYSIS 1H2024 1H2023 Inventory Turnover Days1 83 69 Payables Turnover Days2 11 12 Receivables Turnover Days3 6 5 Gearing Ratio4 23.9% 47.9% Return on Assets 12.7% 2.6% Return on Equity 25.3% 5.4% Despite increase in inventory level and revenue, inventories are kept in good qu
Slide 15: Financial Position
FINANCIAL POSITION US$’000 As at 30 June 2024 As at 31 December 2023 Current Assets Inventories 49,590 20,849 Trade Receivables 5,316 4,678 Prepayments, deposits and other receivables 8,353 4,197 Bank and cash balances 6,868 25,181 Current Liabilities Trade and other payables and accruals 18,437 12,
Slide 16: Industry Potential & Business Strategies
Industry Potential & Business Strategies
Slide 17: Robust Global Demand for K-Beauty Products
ROBUST GLOBAL DEMAND FOR K-BEAUTY PRODUCTS Market Value Maintains Positive Momentum Gaining Popularity Across the Globe K-Beauty products market size K-Beauty products shipment Overseas shipment of 2023 reached US$25.98 billion US$8.5billion representing a YoY growth of 6.4% US$13.59 billion E-comme
Slide 18: Key Contributors for Business Growth
KEY CONTRIBUTORS FOR BUSINESS GROWTH The number of e-commerce platform customers1 grew to 1,304,000 persons and the average order size2 increased to US$84.0. Revenue (US$’000) YesStyle platforms 158,655 • An e-commerce B2C platform for serving the increasingly popular Asian beauty, fashion and lifes
Slide 19: Strategic Expansion of Global Footprint
STRATEGIC EXPANSION OF GLOBAL FOOTPRINT The Group’s B2C and B2B channels are reaching millions of customers across 50+ countries and regions. US • The largest market of the Group European Union • Sales reaching US$57.8 million, up by 42.4% • The largest contributor to revenue growth of the Group • K
Slide 20: Consciously Enlarging K-Beauty Brand Portfolio
CONSCIOUSLY ENLARGING K-BEAUTY BRAND PORTFOLIO The authorized distributor of 466 K-Beauty brands for global B2C and B2B channels, serving as the go-to e-commerce gateway for leading Asian brand partners seeking to reach audience worldwide. Newly onboarded 40 leading K-Beauty brands Recently granted
Slide 21: Consciously Enlarging K-Beauty Brand Portfolio
CONSCIOUSLY ENLARGING K-BEAUTY BRAND PORTFOLIO The authorized distributor of 466 K-Beauty brands for global B2C and B2B channels, serving as the go-to e-commerce gateway for leading Asian brand partners seeking to reach audience worldwide. 21
Slide 22: AI-Powered Customer Relationship Management System
AI-POWERED CUSTOMER RELATIONSHIP MANAGEMENT (“CRM”) SYSTEM CRM system contributed ~20% of YesStyle platforms’ revenue, totaling US$23.8 million, up by 106.5% YoY. Behind the system Key performance Step 1: Data collection and analysis Number of YesStyle Loyalty Program member as of 30 June 2024 incre
Slide 23: Second Logistics Hub to Meet Booming Demand
SECOND LOGISTICS HUB TO MEET BOOMING DEMAND The deployment of the autonomous mobile robotics (“AMR”) system successfully achieved and demonstrated an annual savings of a 32.5% reduction in labor cost1 Hong Kong’s largest AMR warehouse since October 2022 in Tsing Yi Additional logistics hub and 2nd A
Slide 24: Overseas Warehouses to Facilitate B2B Business
OVERSEAS WAREHOUSES TO FACILITATE B2B BUSINESS Warehouse in United States Warehouses in Europe Sheffield, United Kingdom California, United States Hahn, Germany, European Union • Direct shipment for products from 45 brands from Korea to US • Offers speedy delivery service (1-3 days in UK, 1-7 days i
Slide 25: Influencer Program to Boost B2C Business
INFLUENCER PROGRAM TO BOOST B2C BUSINESS Behind the program Key performance Revenue generated by influencers and it as a Total number of the unique influencers percentage of YesStyle Platforms revenue (US$’000) 27.2% Influencers worldwide can sign up the YesStyle Influencer Program and receive commi
Slide 26: Appendix
Appendix
Slide 27: Consolidated Statement of Profit or Loss and Other Comprehensive Income
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (US$’000) (Unaudited) 1H2024 1H2023 1H2022 REVENUE 163,348 90,657 62,905 Cost of sales (113,156) (62,475) (41,127) Gross profit 50,192 28,182 21,778 Other income and other gains and losses 711 50 438 Selling expenses (18,642) (1
Slide 28: Consolidated Statement of Profit or Loss and Other Comprehensive Income
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (US$’000) (Unaudited) 1H2024 1H2023 1H2022 Earnings per share Basic (US cents per share) 2.80 0.39 (0.57) Diluted (US cents per share) 2.78 0.39 (0.57) Profit for the period 11,107 1,563 (2,264) Other comprehensive income: Item
Slide 29: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (US$’000) As at 30 June 2024 As at 31 December 2023 (Unaudited) (Audited) Non-current assets Property, plant and equipment 3,716 4,320 Right-of-use assets 8,909 10,595 Intangible asset 49 - Financial assets at fair value through profit or loss (“FVTPL”) 1
Slide 30: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (US$’000) As at 30 June 2024 As at 31 December 2023 (Unaudited) (Audited) Current liabilities Trade and other payables and accruals 18,437 12,606 Contract liabilities 10,794 12,735 Provisions 440 371 Leas liabilities 5,005 4,715 Current tax liabilities 2,
Slide 31: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (US$’000) As at 30 June 2024 As at 31 December 2023 (Unaudited) (Audited) Capital and reserves Share capital 21,409 20,640 Reserves 22,529 14,415 Equity attributable to shareholders of the Company 43,983 35,055 Non-controlling interest (4) (1) Total equit
Slide 32: Shareholding Structure
SHAREHOLDING STRUCTURE Number of issued shares: 403,916,322 shares (As of 31 July 2024) PCCW Mr. Lui Pak Shing, In Express Stonepath Other Public Mr. Lau Kwok Chu1 Ms. Chu Lai King2 e-Ventures Michael Limited Group, Inc. Shareholders Limited 30.20% 7.24% 9.83% 7.76% 5.89% 6.44% 32.64% 1. Mr. Lau Kow
Slide 33: Visionary Management Team
VISIONARY MANAGEMENT TEAM LAU Kwok Chu, Joshua (劉國柱) CHU Lai King, Priscilla (朱麗琼) CHU Kin Hang (朱健恒) NG Sai Cheong, Curtis(伍世昌) Founder, CEO and Founder, Chair of the Board and Executive Director and Chief Financial Officer and Executive Director VP of Operations VP of Content Company Secretary • O
Slide 34: Visionary Management Team
VISIONARY MANAGEMENT TEAM FUNG Man Yee (馮敏儀) KIM In Sook TSANG Sau Lin (曾秀蓮) WAN Siu Chung (溫兆聰) Erik HOHMANN VP of Consumer Business and VP of Business Development and VP of Human Resources and VP of Information Technology VP of Marketing Co-Head of the YesStyle GM of South Korean Office Administra
Slide 35: Corporate Milestones
CORPORATE MILESTONES Completed corporate reorganization, which saw incorporation of YesAsia Holdings Limited in Hong Kong YesStyle App in March 2005, and it downloads reached 3 Joshua Lau and became the million The Group is listed on Setup new Pricilla Chu founded investment holding the main board o
Slide 36: Q&A
Q&A
Slide 37: Thank You
THANK YOU CONTACT US Investor Enquiries: SPRG_YesAsia@sprg.com.hk Website: https://www.yesasiaholdings.com YesAsia Holdings Limited 喆麗控股有限公司 HKEX stock code: 2209.HK