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JFU Nasdaq· 9F Inc.
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JFU Nasdaq· 9F Inc.
Earnings report Q4 2023

9F Inc. Reports Decrease in Revenue for First Half of 2023

Segments of revenue

In the first half of 2023, 9F Inc. reported total net revenues of RMB260.1 million (US$35.9 million), representing a decrease of 20.6% compared to the first half of 2022. This decline was primarily driven by a decrease in technical services revenues due to the business contraction of institutional partners and a scaling down of services for which upfront payments were made in previous years.

  • Sales income: RMB96.4 million (US$13.3 million)
  • Technical services: RMB147.9 million (US$20.4 million)
  • Post-origination services: RMB0.9 million (US$0.1 million)
  • Other: RMB14.9 million (US$2.1 million)

Strengths

Despite the decrease in total net revenues, 9F Inc. has maintained a relatively stable operation of its e-commerce business line, which experienced significant expansion in late 2021. This stability in the e-commerce business line has contributed to the company's overall financial performance.

Challenges

The main weakness for 9F Inc. in the first half of 2023 was the decrease in demand for their technical services by institutional partners, primarily due to the economic downturn. This decline in demand resulted in a decrease in technical services revenues. Additionally, the company faced challenges in the wealth management services segment, as the weak performance of the Hong Kong stock market led to a decrease in revenues in this area.

Noteworthy

It is worth noting that 9F Inc. experienced an increase in net loss, which amounted to RMB135.7 million (US$18.7 million) in the first half of 2023, representing a 5.7% increase compared to the net loss of RMB128.4 million in the first half of 2022. The company attributed this increase to the scaling down of services for which upfront payments were made in previous years, resulting in a decrease in recognized revenues.

Summary

9F Inc. faced challenges in the first half of 2023, with a decrease in total net revenues primarily driven by a decline in technical services revenues due to the business contraction of institutional partners. However, the company's e-commerce business line remained stable, contributing to its overall financial performance. The weak performance of the Hong Kong stock market also impacted the company's wealth management services segment. Despite these challenges, 9F Inc. will need to focus on diversifying its revenue streams and adapting to changing market conditions to improve its financial performance in the future.

Source documents

Form 6-K  filed on Dec 01, 2023
35 pages scanned

Reference data

Company financials Q4 revenue 130M
Analyst estimates Q4 EPS missed by NaN%
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