(H BEIJING UBOX ONLINE TECHNOLOGY CORP. ( 於中華人民共和國註冊成立的股份有限公司) 股份代號：2429 [1] 2 ---- : 2 中期報告 A START only diaming mil The Property 目錄 釋義 2 公司資料 6 中期業績摘要 8 管理層討論與分析 9 其他資料 24 中期財務資料的審閱報告 33 中期簡明綜合全面虧損表 34 中期簡明綜合財務狀況表 35 中期簡明綜合權益變動表 37 中期簡明綜合現金流量表 38 中期簡明綜合財務資料附註 39 釋義 | --- | --- | --- | |----------------------|-------|-------------------------------------------------| | | | | | 「審核委員會」 | 指 | 董事會審核委員會 | | 「核數師」 | 指 | 本公司核數師 | | 「董事會」 | 指 | 董事會 | | 「企業管治守則」 | 指 | 上市規則附錄 C1 所載企業管治守則 | | 「中國」 | 指 | 中華人民共和國 | | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Beijing UBOX Online Technology Corp. 北京友寶在線科技股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：2429） 截 至2024年6月30日止六個月中期業績公告 北京友寶在線科技股份有限公司（「本公司」）董 事（「董 事」）會（「董事會」）謹此宣 佈本公司及其附屬公司截至2024年6月30日 止 六 個 月 的 經 審 核 中 期 業 績。本 公 告載有本公司2024年中期報告（「2024年中期報告」）全 文，符 合 香 港 聯 合 交 易 所 有限公司（「聯交所」）證券上市規則中有關中期業績初步公告附載的資料的相 關 規 定。 本中期業績公告將於聯交所網站(www.hkexnews.hk)及本公司網站(www.uboxol.com) 刊 發。202 ...

Company History and Development - The company was established on March 1, 2012, and converted to a joint-stock company on September 10, 2015[3] - The company's H-shares were listed on the Hong Kong Stock Exchange on November 3, 2023[4] - The company's "2020 Incentive Plan" was adopted in 2020, details of which are outlined in the prospectus under "History and Development - 2020 Incentive Plan and Pre-IPO Incentive Plan"[3] - The "Pre-IPO Incentive Plan" was adopted on May 31, 2021, details of which are provided in the prospectus under "Legal and General Information - D. Share Incentive Plan - 1. Pre-IPO Incentive Plan"[5] Financial Performance - Revenue for 2023 was RMB 2,672,020 thousand, a 6.1% increase from RMB 2,519,224 thousand in 2022[10] - Gross profit for 2023 was RMB 1,088,669 thousand, a 1.1% increase from RMB 1,076,736 thousand in 2022[10] - Operating loss for 2023 was RMB 299,457 thousand, compared to an operating loss of RMB 243,670 thousand in 2022[10] - Net loss attributable to the company's owners for 2023 was RMB 327,295 thousand, compared to a net loss of RMB 284,529 thousand in 2022[10] - Adjusted EBITDA for 2023 was RMB 65,516 thousand, compared to RMB 21,024 thousand in 2022[10] - Adjusted net loss for 2023 was RMB 203,194 thousand, compared to an adjusted net loss of RMB 260,992 thousand in 2022[10] - Total revenue for 2023 reached RMB 2,672.0 million, a year-on-year increase of 6.1%[18] - Gross profit for 2023 was RMB 1,088.7 million, up 1.1% year-on-year[18] - Adjusted EBITDA for 2023 was RMB 65.5 million, a significant increase of 211.6% year-on-year[18] - Net loss for the year increased by 12.9% from RMB 283.1 million in 2022 to RMB 319.5 million in 2023[43] - Adjusted EBITDA (non-HKFRS measure) increased by 211.6% from RMB 21.0 million in 2022 to RMB 65.5 million in 2023, driven by increased customer traffic and business activity recovery post-COVID-19 policy relaxation and expansion of wholesale business[46] - Adjusted net loss (non-HKFRS measure) decreased by 22.1% from RMB 261.0 million in 2022 to RMB 203.2 million in 2023, primarily due to the same factors driving the increase in adjusted EBITDA[47] Operational Metrics - The "Gross Merchandise Value" (GMV) refers to the total value of all goods sold through the company's unmanned retail business points, including value-added tax[3] - The company's "Point Network" consists of both UBOX points and non-UBOX points[5] - The "Restaurant Model Partners" assist in operating points located in restaurants and other locations, retaining the difference between the transaction GMV and the agreed-upon product price[5] - The number of Youbao points decreased by 9.8% to 59,721 as of December 31, 2023[18] - The number of restaurant model partners decreased by 56.5% to 704 in 2023[18] - Non-Youbao points increased by 3.7% to 17,909 in 2023[18] - Total number of UBox points decreased by 9.8% from 66,232 in 2022 to 59,721 in 2023, primarily due to cautious expansion amid the pandemic's long-term impact[21] - Monthly average gross merchandise value (GMV) per machine increased by 16.8% from RMB 2,700 in 2022 to RMB 3,154 in 2023, driven by recovery in foot traffic and sales post-COVID-19 policy relaxation[23] - Beverage and snack vending machines saw a 35.3% increase in points from 2,056 in 2022 to 2,781 in 2023, with monthly GMV per machine rising by 33.2% from RMB 2,365 to RMB 3,149[21][23] - The number of wholesale customers increased from 496 in 2022 to 1,196 in 2023, driven by aggressive expansion in shared warehouse business[26] - Average selling price of vending machines decreased from RMB 7,130 in 2022 to RMB 5,010 in 2023, mainly due to a higher proportion of lower-priced pick-and-go cabinets and older models sold[27] - The company had 142 digital advertising service customers as of December 31, 2023, leveraging its retail platform for nationwide ad coverage[25] - Mobile device distribution service expanded with 502 physical stores operated by authorized resellers, including 3 UBox Cloud Stores and 623 UBox Cloud Warehouses as of December 31, 2023[29] - Non-UBox point operators increased from 216 in 2022 to 312 in 2023, as some wholesale customers utilized the company's platform to become non-UBox point operators[26] - The company's mini KTV network consists of 1,148 self-operated points and 1,720 franchise points across 262 cities in mainland China, with a music library of over 28,000 songs[30] - Total revenue for 2023 was RMB 2,672.0 million, a 6.1% increase year-over-year, driven by growth in unmanned retail and wholesale businesses[32] - Unmanned retail revenue increased by 3.0% to RMB 2,034.3 million in 2023, attributed to recovery in foot traffic and business activities post-COVID-19 policy relaxation[33] - Advertising and system support services revenue decreased by 40.5% to RMB 115.6 million in 2023 due to cautious marketing strategies by advertisers[33] - Wholesale revenue surged by 117.9% to RMB 287.2 million in 2023, driven by increased customer numbers and procurement volumes post-COVID-19 policy relaxation[33] - Gross profit for 2023 was RMB 1,088.7 million, a 1.1% increase year-over-year, with a gross margin of 40.7%, down 2.0 percentage points[37] Expenses and Costs - Sales and marketing expenses decreased by 2.6% to RMB 1,125.7 million in 2023, primarily due to a reduction in internal sales team size[39] - General and administrative expenses increased by 67.4% from RMB 127.4 million in 2022 to RMB 213.3 million in 2023, primarily due to an increase in share-based compensation expenses of RMB 73.7 million related to the pre-IPO incentive plan[40] - R&D expenses decreased by 8.0% from RMB 31.6 million in 2022 to RMB 29.0 million in 2023, mainly due to a reduction in employee benefits expenses caused by a decrease in average headcount and research projects[40] - Net impairment losses on financial assets decreased by 43.2% from RMB 9.3 million in 2022 to RMB 5.3 million in 2023, driven by a more optimistic macroeconomic outlook and improved collection efforts[41] - Other income decreased by 55.1% from RMB 12.0 million in 2022 to RMB 5.4 million in 2023, primarily due to a reduction in government subsidies[41] - Net other losses increased by 138.4% from RMB 8.5 million in 2022 to RMB 20.2 million in 2023, mainly due to losses from the sale of a 51% stake in Sichuan Youlin Kesi Technology Co., Ltd. and disposal of fixed assets[41] - Financial costs decreased by 35.5% from RMB 13.3 million in 2022 to RMB 8.6 million in 2023, primarily due to reduced interest expenses on lease liabilities following the expiration of finance lease contracts[42] - Income tax expenses decreased by 49.4% from RMB 10.8 million in 2022 to RMB 5.5 million in 2023, mainly due to improved utilization of previously unrecognized tax losses and temporary differences[42] Cash Flow and Capital Expenditures - Operating cash flow for the year ended December 31, 2023, was RMB 106.6 million, primarily due to a pre-tax loss of RMB 314.0 million, adjusted for various factors including depreciation of property and equipment of RMB 144.8 million and share-based compensation expenses of RMB 84.0 million[50] - Net cash used in investing activities for the year ended December 31, 2023, was RMB 53.8 million, mainly due to payments for property and equipment of RMB 49.0 million and purchases of financial assets at fair value of RMB 40.0 million[50] - Net cash from financing activities for the year ended December 31, 2023, was RMB 169.1 million, driven by net proceeds from global offering and lease payments of RMB 43.3 million[51] - Cash and cash equivalents increased by 171.2% from RMB 128.2 million as of December 31, 2022, to RMB 347.6 million as of December 31, 2023[51] - Total debt as of December 31, 2023, was RMB 107.6 million, with a debt-to-equity ratio of 11.1%[53] - Capital expenditures for the year ended December 31, 2023, totaled RMB 66.3 million, including RMB 49.0 million for property and equipment and RMB 17.3 million for intangible assets[54] Strategic Plans and Future Outlook - The company plans to expand point coverage in first-tier, new first-tier, and second-tier cities to achieve economies of scale[17] - The company will continue to invest in AI and big data technologies to enhance data analysis capabilities and backend algorithm optimization[17] - The company introduced the "Pick-and-Go" vending machine, featuring advanced hardware, biometric authentication, and IoT technology[19] - The company plans to expand its point-of-sale network and improve digital operational efficiency, targeting first-tier, new first-tier, and second-tier cities, with gradual development in third-tier and lower-tier cities[57] - The company aims to enhance data analytics capabilities, optimize algorithms, and expand data applications in operations, focusing on AI recognition technology and backend algorithms for unmanned retail[57] - The company will continue hardware R&D to improve the durability, functionality, and energy efficiency of vending machines to cater to broader consumer scenarios[57] Share Incentive Plans - The company has issued a total of 37,862,946 non-listed shares under the Pre-IPO Incentive Plan, representing 4.86% of the total issued shares as of the report date[58] - The exercise price for the options granted under the Pre-IPO Incentive Plan is RMB 1.99 per share[58] - The Pre-IPO Incentive Plan has granted options to 27 participants, allowing them to subscribe for a total of 37,750,000 non-listed shares, representing approximately 4.84% of the total issued share capital[60] - The options under the Pre-IPO Incentive Plan are exercisable in three tranches: 40% after the first 12 months, 30% after the next 12 months, and the remaining 30% after the following 12 months[59] - The total number of shares issued as of the report date is 779,835,433[63] - The Pre-IPO Incentive Plan will terminate no later than ten years from the grant date of January 10, 2023, with approximately 8 years and 9 months remaining as of the report date[61] - The company has granted options to key executives, including Mr. Wang Gao (15,000,000 shares), Mr. Ling Kunbo (6,000,000 shares), and Ms. Cha Rong (4,700,000 shares), with exercise prices ranging from RMB 1.88 to RMB 1.98 per share[62] Corporate Governance and Leadership - Yu has over 24 years of experience in the IT industry and joined the company in November 2017 as Vice President and General Manager of the Community Development Business Unit[66] - Cui Yan, with over 18 years of experience in finance and accounting, joined the company in January 2011 as CFO and has been serving as Board Secretary and Deputy General Manager since February 2016[66] - Zhu Chao, with over 18 years of experience in investment and corporate development, joined the company as a Non-Executive Director in May 2021[66] - An Yufang, with over 14 years of experience in corporate management, was appointed as a Non-Executive Director in May 2021[67] - Wang Xiaochuan, with over 21 years of experience in the internet and related services industry, was appointed as an Independent Non-Executive Director in May 2021[68] - Wang Xiaochuan holds a Bachelor's and Master's degree in Computer Science and Technology from Tsinghua University and an MBA from Tsinghua University[69] - Guo Qi, with over 26 years of experience in accounting, auditing, and financial management, was appointed as an Independent Non-Executive Director in May 2021[69] - Zhang Chen, with over 10 years of experience in corporate management, was appointed as an Independent Non-Executive Director in May 2021[69] - Zhang Chen holds a Master's degree in Dentistry (Periodontology) from the University of Hong Kong and has been a registered dentist in Hong Kong since August 2008[70] - Qin Yi, aged 53, was appointed as the Chairperson of the Supervisory Committee in May 2021, bringing over 30 years of experience in corporate management and investment[71] - Huang Ronghui, aged 54, was appointed as a Supervisor in September 2015, with over 20 years of experience in machinery leasing and operations[71] - Qi Rupeng, aged 43, was appointed as an Employee Representative Supervisor in April 2020, with over 17 years of experience in software development[72] - Wang Ge, aged 46, was appointed as the CFO in September 2016, with over 12 years of experience in finance and corporate management[72] - Chao Hua, aged 45, was appointed as the Deputy General Manager in October 2021, responsible for formulating and implementing the company's IT development strategy[74] - Xu Yanshan was appointed as a Co-Company Secretary effective September 7, 2023, with extensive experience in corporate secretarial and compliance services[74] - The board of directors consists of Chairman, Executive Director, and CEO Wang Bin, along with other executive and non-executive directors[97] - The company has entered into service contracts with directors and supervisors, which can be renewed according to the company's articles of association and applicable listing rules[98] - No directors or supervisors have any significant interests in major transactions, arrangements, or contracts of the company or its subsidiaries[98] - The company has not made any payments to induce high-salary individuals to join the company in 2023[100] - The company has purchased directors' liability insurance to cover potential losses due to alleged or actual misconduct[101] - Wang Bin, the Chairman and CEO, holds approximately 14.91% of the company's H shares and 38.87% of the non-listed shares[104] - Chen Kunrong, an executive director who resigned on January 11, 2024, holds approximately 4.86% of the company's H shares and 4.19% of the non-listed shares[104] - The company has no arrangements for directors or supervisors to benefit from purchasing shares or debentures of the company or any other corporate body[99] Shareholder Information - Ant Group holds 126,315,789 H-shares, representing 19.84% of the relevant share class and 16.20% of the total issued shares[108] - Shanghai Yunxin Venture Capital Co., Ltd., a wholly-owned subsidiary of Ant Group, holds 126,315,789 H-shares, representing 19.84% of the relevant share class and 16.20% of the total issued shares[108] - Wei Lin holds 125,850,476 H-shares, representing 19.77% of the relevant share class and 16.14% of the total issued shares, and 61,671,930 non-listed shares, representing 43.06% of the relevant share class and 7.91% of the total issued shares[108] - Chunhua Qiushi (Tianjin) Equity Investment Management Co., Ltd. holds 42,104,884 H-shares, representing 6.61% of the relevant share class and 5.40% of the total issued shares[108] - China International Capital Corporation Limited holds 35,563,500 H-shares, representing 5.59% of the relevant share class and 4.56% of the total issued shares[109] - The company has issued a total of 143,219,624 non-listed shares, 636,615,809 H-shares, and 779,835,433 total shares[110] Related Party Transactions - The company entered into a payment service framework agreement with Alipay China, with annual caps of RMB 15.0 million, RMB 18.0 million, and RMB 22.0 million for the years ending December 31, 2023, 2024, and 2025, respectively[113] - The company entered into an advertising cooperation framework agreement with Alipay China, with expected annual caps of RMB 9.0 million, RMB 33.0 million, and RMB 35.0 million for the years ending December 31, 2023, 2024, and 2025 respectively[115] - The advertising cooperation framework agreement aims to leverage Alipay China's digital ecosystem to enhance the company's retail channels and maximize revenue[116] - The company's independent non-executive directors have reviewed and confirmed that the related party transactions are conducted under normal commercial terms and are fair and reasonable[117] - The company's auditors have issued an unqualified opinion on the related party transactions, confirming that the actual transaction amounts did not exceed the set annual caps[118] - The company has complied with the disclosure requirements for related party transactions under the Listing Rules[119] - The company's audit committee reviewed the audited financial statements for

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of HKD 25.5, which corresponds to a projected price-to-sales (P/S) ratio of 4.7 times for 2024 [1][3][26]. Core Insights - The report highlights that Youbao Online, established in 2011, has become the largest unmanned retail operator in China, leveraging strong digital and supply chain capabilities. The company aims to achieve breakeven in 2024 through rapid expansion via a franchise model [1][2][26]. - In 2023, Youbao Online reported a revenue of HKD 2.67 billion, a 6% year-on-year increase, while the adjusted net loss narrowed by 22% to HKD 220 million. The company is expected to continue its recovery post-pandemic [2][13][26]. - The report emphasizes the significant growth potential in the unmanned retail sector, with the market penetration of vending machines projected to rise from 8.8% in 2022 to 15.6% by 2027, and the market size expected to grow from HKD 28.9 billion to HKD 73.9 billion during the same period [20][21][26]. Company Overview - Youbao Online operates approximately 60,000 smart retail terminals, including vending machines and smart coffee machines, across 160 cities and 28 provinces in China. The company has established a broad sales network in key consumer locations [1][2][8]. - The company’s core business is unmanned retail, which accounted for 78% of its revenue in 2023. The franchise model is a key part of its long-term growth strategy [15][16]. Financial Performance - The financial outlook for Youbao Online shows a projected revenue increase to HKD 3.71 billion in 2024, with a year-on-year growth rate of 39%. The company is expected to reach breakeven in 2024 and achieve a net profit of HKD 100 million in 2025 [2][25][28]. - The report notes that the gross margin for the company has remained above 40%, with a slight decrease to 41% in 2023. The net profit margin is expected to improve significantly in the coming years [14][29]. Industry Overview - The unmanned retail industry in China is still in its early stages, with significant room for growth. The report indicates that the industry is characterized by low penetration rates and a fragmented market with many participants [19][20][26]. - The report forecasts a compound annual growth rate (CAGR) of 20.7% for the vending machine retail market from 2022 to 2027, driven by increasing disposable income and consumer demand for convenience [20][21]. Competitive Advantages - Youbao Online's competitive edge lies in its strong operational capabilities, extensive nationwide network, and technological advancements in data analysis and automation [23][24]. - The company has established strategic partnerships with major consumer goods brands, enhancing its bargaining power and distribution capabilities [23].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 2,672.0 million, representing a year-on-year increase of 6.1%[2] - Gross profit for the same period was RMB 1,088.7 million, with a year-on-year growth of 1.1%[2] - The net loss attributable to equity holders for the year was RMB 327.3 million, an increase of 15.0% compared to the previous year[7] - Adjusted EBITDA for the group was RMB 65.5 million, showing a significant year-on-year increase of 211.6%[7] - The adjusted net loss (non-HKFRS measure) was RMB 203.2 million, a decrease of 22.1% year-on-year[7] - The company reported a net loss of RMB 319,473 thousand for the year, compared to a net loss of RMB 283,069 thousand in 2022, reflecting increased financial challenges[60] - The company reported a total gross profit of RMB 1,088.7 million for the year ended December 31, 2023, representing a year-on-year increase of 1.1%[25] - The overall gross margin for the same period was 40.7%, a decrease of 2.0 percentage points compared to the previous year[25] Revenue Breakdown - As of December 31, 2023, the company generated revenue of RMB 2,034.3 million from unmanned retail business, an increase of 3.0% year-on-year[22] - Revenue from advertising and system support services was RMB 115.6 million, a decrease of 40.5% year-on-year due to cautious spending by advertisers despite the easing of COVID-19 policies[22] - Revenue from wholesale goods reached RMB 287.2 million, reflecting a significant increase of 117.9% year-on-year, attributed to the implementation of shared warehouse measures and increased customer purchases[22] - Revenue from automatic vending machine sales and rentals was RMB 27.5 million, a decrease of 18.7% year-on-year, primarily due to lower average selling prices and reduced rental units[22] - Revenue recognized from contract liabilities for the year ended December 31, 2023, was RMB 5,854 thousand, compared to RMB 5,411 thousand for 2022, marking an increase of approximately 8.17%[79] Operational Metrics - The number of UBOX points as of December 31, 2023, was 59,721, reflecting a decrease of 9.8% year-on-year[7] - The number of point partners (excluding restaurant model partners) increased by 3.0% to 1,932[7] - The number of restaurant model partners decreased by 56.5% to 704[7] - The company operated 502 physical stores and established three automated stores and 623 automated warehouses in mainland China as of December 31, 2023[18] - The total number of vending machines was 66,232, representing a year-over-year increase of 9.8%[10] Cash Flow and Financial Position - The company recorded a positive operating cash flow of RMB 106.6 million, indicating a healthy cash flow position[7] - The net cash generated from operating activities for the fiscal year ended December 31, 2023, was RMB 106.6 million, primarily due to adjustments for depreciation and share-based compensation[42] - The net cash used in investing activities for the fiscal year ended December 31, 2023, was RMB 53.8 million, mainly attributed to payments for property and equipment purchases[42] - The net cash flow from financing activities for the fiscal year ended December 31, 2023, was RMB 169.1 million, primarily due to net proceeds from global issuance and lease payments[43] - As of December 31, 2023, cash and cash equivalents increased by 171.2% to RMB 347.6 million from RMB 128.2 million as of December 31, 2022[43] Expenses and Cost Management - The total cost of sales increased by 9.8% year-on-year to RMB 1,583.4 million, primarily due to the rise in cost of sold goods consistent with the revenue growth in unmanned retail, wholesale, and mobile device distribution services[23] - Sales and marketing expenses decreased by 2.6% to RMB 1,125.7 million for the year ended December 31, 2023, primarily due to a reduction in the internal sales team size[27] - General and administrative expenses increased by 67.4% to RMB 213.3 million, mainly due to an increase in share-based compensation expenses related to the pre-IPO incentive plan[28] - Research and development expenses decreased by 8.0% to RMB 29.0 million, attributed to a reduction in average headcount and the number of research projects[29] Market and Strategic Initiatives - The company continues to innovate with new vending machine models, including the latest "Instant Pickup" model featuring advanced hardware and IoT technology[8] - The company aims to expand its point network and improve digital operational efficiency to enhance the value chain in the unmanned retail industry[58] - The company is focusing on developing artificial intelligence and big data technologies to enhance data analysis capabilities and optimize algorithms in its operations[59] - The company plans to collaborate with internet enterprises to build diversified payment infrastructure supporting various payment methods, including advanced payment technologies[57] Corporate Governance and Compliance - The company has adhered to the corporate governance code since its listing date, with a commitment to maintaining good governance practices[102] - The audit committee, consisting of independent non-executive directors, has reviewed the financial statements for the year ended December 31, 2023, and confirmed compliance with applicable accounting standards[104] - The company’s financial statements for the year ended December 31, 2023, have been audited by PwC, ensuring consistency with the preliminary announcement figures[105] Employee and Shareholder Information - The company has a total of 1,012 employees as of December 31, 2023, with competitive compensation packages to retain talent[52] - The board of directors did not recommend the distribution of a final dividend for the year ended December 31, 2023[49] - No dividends were declared or paid to shareholders for the years ended December 31, 2023, and 2022[91]

Investment Rating - The report initiates coverage on Beijing UBOX Online Technology with a "Buy" rating [2] Core Investment Thesis - Beijing UBOX is a leading operator of vending machines in China, with a network of 61,888 UBOX vending machine locations across 157 cities and 28 provinces as of June 30, 2023 [3] - The company's revenue for 2020-2022 was RMB19.0/26.8/25.2bn, with a CAGR of 15% from 2020 to 2022 [3] - The penetration rate of vending machines in China is expected to increase from 8.8% in 2022 to 15.6% in 2027, with the retail market size projected to grow from RMB289bn in 2022 to RMB739bn in 2027, a five-year CAGR of 20.7% [3] - The company is expanding rapidly in high-tier cities, with the number of machines in first-tier/new first-tier/second-tier cities expected to increase to 27,000/29,000/28,000 respectively by the end of 2024 [3] - Revenue for 2023-2025 is forecasted to be RMB27.6/40.9/49.9bn, with net profit attributable to shareholders expected to be RMB-1.5/0.3/1.8bn [3] Financial Forecasts & Valuation - Revenue for 2023-2025 is projected to be RMB2,761.85/4,090.24/4,994.10mn, with YoY growth of 9.63%/48.10%/22.10% [3] - Net profit for 2023-2025 is forecasted to be RMB-150.82/26.15/184.19mn, with YoY growth of 46.99%/117.33%/604.47% [3] - EPS for 2023-2025 is expected to be RMB-0.19/0.03/0.24 [3] - P/E ratios for 2023-2025 are projected at -68.44/394.80/56.04 [3] Market Data & Company Overview - The company's closing price as of the report date is HKD14.60, with a 52-week range of HKD11.84-22.80 [5] - Market capitalization is HKD11,385.59mn, with a P/B ratio of 9.48 [5] - The company has a total of 61,888 vending machine locations, with 87.3% concentrated in first-tier, new first-tier, and second-tier cities [3] - The company's revenue for 2020-2022 was RMB19.0/26.8/25.2bn, with significant fluctuations due to the pandemic and changes in consumer demand [3] Industry Analysis - The vending machine market in China is expected to grow significantly, with the retail market size projected to increase from RMB289bn in 2022 to RMB739bn in 2027, a five-year CAGR of 20.7% [3] - The market is currently fragmented, with the top five participants holding a 17.0% market share based on total commodity turnover in 2022 [3] - Leading companies are expected to achieve growth surpassing the industry through mergers and acquisitions [3] Business Model & Expansion Strategy - The company operates a comprehensive service platform for unmanned retail, leveraging digitalization and operational capabilities to create value for various participants [3] - The company is focusing on expanding in high-tier cities, with plans to increase the number of machines in first-tier/new first-tier/second-tier cities to 27,000/29,000/28,000 by the end of 2024 [3] - The company is also targeting third-tier and below cities through cooperation with operators and platform empowerment, with the number of machines expected to increase from 7,881 in June 2023 to 16,000 by the end of 2024 [3]