Be Friends Holding Announced the 2024 Interim Results, Revenue Increased by over 43%, Net Profit Surged by over 90%

PR Newswire

Mon, Aug 26, 2024, 5:04 AM 6 min read

For the first half of 2024, the Group recorded revenue of approximately RMB622.1 million, representing a 43.8% year-on-year increase compared to approximately RMB432.7 million for the six months ended June 30, 2023 (the "Corresponding Period of the Previous Year"). The Group's net profit amounted to approximately RMB83.8 million, marking an approximately 93.8% growth compared to RMB43.3 million in the Corresponding Period of the Previous Year.

Business Review

In the first half of 2024, China's economy steadily recovered, demonstrating an upward trend toward stabilization. The nation's gradual relaxation of industrial policies and further emphasis on consumption-driven growth positively impacted various industries. Consequently, the Group's new media services segment experienced sustained robust growth during the Interim Period, generating revenue of approximately RMB563.6 million, representing an increase of approximately 43.9% compared to approximately RMB391.7 million in the Corresponding Period of the Previous Year. This segment contributed roughly 90.6% of the Group's total revenue. By implementing a standardized and replicable "matrix live-streaming channel" operation model, the Group has been able to cater to consumers' diverse and nuanced preferences, thereby enabling more precise user engagement and fostering enhanced user conversion efficiency. During the Interim Period, the Group completed gross merchandise volume (GMV) of approximately RMB5.96 billion on the new media platform, representing an increase of approximately 18.2% as compared to the Corresponding Period of the Previous Year, and remained firm in occupying the top spot in the live-steaming e-commerce industry. The number of live-streaming channels independently owned and operated by the Group exceeded 50, which is one of the most significant numbers of live-streaming channels in the new media business area, reflecting the Group's valuable operational experience, methodology, and data capabilities in the field of live-streaming e-commerce, and demonstrating the successful practice of our standardized and replicable "matrix live-streaming channel" operation model.

The Group's live-streaming e-commerce business is always committed to building a long-term trust environment for merchants and consumers, creating a shopping channel that satisfies merchants and makes consumers comfortable, and becoming a trustworthy friend of our partners. The Group consistently deepens its efforts in product selection, diligently discovering and promoting high-quality merchandise with solid credentials. On the supply chain front, the Group continues to expand its capabilities, with its self-developed "Friend Cloud" platform providing stable and efficient operational support for multi-platform live streaming across various channels, realizing end-to-end management of the entire chain from merchant recruitment, intelligent product selection, compliance audit, goods management to financial settlement, which has greatly improved the efficiency and standardization of the live-streaming retail business. Concurrently, as the live-streaming e-commerce industry experiences rapid development, the Group actively explores innovative technologies and emerging opportunities to spearhead industry advancement. The Group has formally set up a team to initiate the research and development of artificial intelligence ("AI") live-streaming project during the Interim Period. The goal of the AI live-streaming project is to realize full-scene decision-making by AI system in the field of live-streaming e-commerce, including product selection decision-making, data analysis, traffic placement decision-making, and data review, etc., to ensure that the entire operation process is highly efficient and intelligent.

The Group's strategic layout of new media services business has passed the fourth year, "Be Friends" has become a popular brand in the field of new media. During the Interim Period, the Group set up the "Be Friends Industry Research Institute" and were included in the "Specialized, Sophisticated and New Enterprises Cultivation Plan for Improving Quality and Efficiency in Zhejiang Province" as a think-tank. In addition, the Group was awarded the "Best MCN Organization of the Year" by Douyin E-commerce for its outstanding performance and contribution to the field of e-commerce live-streaming.

The Group's television broadcasting business segment also strongly performed during the Interim Period. With the impact of the pandemic gradually fading and improved annual budget conditions among clients, the Group's television broadcasting business segment generated approximately RMB58.4 million, representing an approximately 42.6% increase compared to approximately RMB41.0 million in the Corresponding Period of the Previous Year. This segment accounted for roughly 9.4% of the Group's total revenue. The Group has continued to invest in research and development, responded to the government's policy of supporting the localization of scientific and technological achievements, and persisted in accumulating self-developed products in the field of communication and transmission. Relying on its strong technical strength, rich industry experience, and sales channels, the Group's television broadcasting business segment remains in a relatively leading position in the industry.

Looking to the future, the all-media industry has entered a new stage of development. As industry concentration gradually increases, it presents challenges and significant opportunities for the Group. The Group will firmly march towards becoming a technology-driven new retail enterprise. The Group persists in cultivating technological innovation and digital infrastructure development. By leveraging the "Friend Cloud" platform and AI systems, the Group strives to enhance supply chain management and operational efficiency comprehensively. Additionally, the Group actively promotes the new retail model of industrial traceability, explores overseas markets, and aspires to achieve long-term, stable business growth globally.

Meanwhile, to express its gratitude for the unwavering support from the shareholders, the Group announced on July 8 that it intends to use its own funds of up to HK$30 million to repurchase shares of the Company in the open market from time to time to bolster market confidence, enhance shareholder returns, and demonstrate the management's belief in the long-term value of the Group.

About Be Friends Holding Limited

Be Friends Holding Limited (1450.HK) is dedicated to becoming a technology-driven new retail enterprise with a core focus on all media live-streaming operations within its new media services and television broadcasting business. The Group has successfully established its presence across multiple platforms, including Douyin, Taobao, and JD.com, independently owning and operating over 50 live-streaming channels, with a total live-streaming fan base exceeding 68 million and a standardized and replicable "matrix live-streaming channel" operation model, enabling the Group to become a trusted channel brand for both merchants and consumers, ultimately contributing to steady business growth.

For more information about the Company, please visit: https://www.befriends.com.cn

For inquiry, please contact: IR@befriends.com.cn, or DLK Advisory: +852 2857 7101 pr@dlkadvisory.com