Rongzhong Finance reported on February 23 that Tuhu announced that according to the preliminary assessment of the company's unaudited comprehensive management accounts (management accounts) for the year ended December 31, 2023, as well as other relevant information currently available to the board of directors, the group is expected to record a net profit of no less than 6.6 billion yuan for the year ended December 31, 2023, turning losses into profits, and in 2022, Tuhu will record a net loss of about 2.1 billion yuan from the group.
The Group expects an adjusted non-IFRS (NFRS) net profit for the year ended 31 December 2023 to be no less than 4$500 million, turning losses into profits, and recorded the Group's adjusted net loss (non-IFRS measure) of approximately 55.2 billion yuan.
The company's turnaround was mainly attributed to the increase in the total mileage of passenger cars in China in 2023 due to the release of travel demand after the end of the pandemic, which boosted the demand for tire replacement and other car maintenance products and services for Tuhu car owners. the further expansion of the nationwide network of Tuhu workshops and the growing customer base; Benefiting from the improvement of economies of scale, we were able to obtain better commercial terms from the best merchants, combined with the change in the product and service category mix, which led to an increase in gross profit margin; improved operational efficiency; About RMB 64A positive change in the fair value of the convertible redeemable preference shares of $700 million (reflecting a one-time fair value adjustment following the 2023 IPO).
All of Tuhu's convertible redeemable preference shares were converted into Class A ordinary shares upon completion of the IPO and as such, there will be no change in the fair value of the convertible redeemable preference shares.
In September 2023, Tuhu was listed on the Hong Kong Stock Exchange, but the road to listing was not smooth sailing, and it submitted its form three times. According to the prospectus information, Tuhu has been in a state of loss for the past four years.
According to the prospectus, from 2019 to 2022, Tuhu's revenue will be 70400 million yuan, 875.3 billion yuan, 1172.4 billion and 115$4.7 billion; The net loss attributable to the parent company was 342.8 billion yuan, 392.8 billion yuan, 58400 million yuan and 213.6 billion yuan, with a cumulative loss of more than 15 billion yuan in 4 years.
Oriental Wealth.
The size of China's auto service market has reached one trillion yuan, and according to the CIC report, the size of China's auto service market has reached 12 trillion yuan, which is expected to grow at a CAGR of 9% from 2023 to 2027 to reach 19 trillion yuan.
In the past few years, major Internet companies have tested the waters of this industry, and JD.com, Tmall, and Didi have all gone down. In the fierce competition, Tuhu has also achieved quite good results. According to the CIC report, Tuhu is the largest independent auto service platform in China in terms of annual revenue in 2022 and the number of auto service stores in operation as of the end of March 2023.