YesAsia Holdings 2024 Interim Net Profit Rises Six-Fold to US$11.1 Million Total Revenue Rises 80.2% to US$163.35 Million | 29.08.24

Maintaining momentum on robust global demand for K-Beauty products

Results Highlights

HONG KONG SAR – Media OutReach Newswire – August 29, 2024 – YesAsia Holdings Limited (“YesAsia Holdings”, and together with its subsidiaries, the “Group”) (stock code: 2209), a leading e-commerce platform operator renowned for its expertise in identifying and sourcing high-quality Asian beauty and lifestyle products, today announced its unaudited interim results for the six months ended 30 June 2024 (the “Period” or “1H 2024”).

For the first half of 2024, the Group recorded a historically high revenue in the first half of 2024 of US$163.35 million, an increase of 80.2%, mainly driven by the increase in sales of beauty products through the YesStyle And AsianBeautyWholesale platforms. Gross profit increased by 78.1% to approximately US$50.2 million and the gross profit margin was 30.7%. As a result, profit for the period reached US$11.1 million, an increase of 610.6%, and the net profit margin improved steadily by 5.1 percentage points to 6.8%. Basic earnings per share were US$2.80 cents (1H2023: US$0.39 cents).

Expand K-Beauty portfolio with expanded offerings

Beauty products were the main source of revenue for the Group in the Period, with revenue doubling from the same period last year to US$149.4 million, accounting for 91.4% of the Group’s total revenue. The Group also brought on board some more prestigious brands, Mother And B.READY under Amorepacific Corporation, CARE PLUS under CJ Olive Young Corporation, plus Believe And CNP Laboratory under LG Household & Health Care. In addition, the Group became the exclusive distributor of a well-known K-Beauty brand — Too cool for school, in the US market, operating through both B2C and B2B channels. Positioned as an authorized distributor of 466 K-Beauty brands for global B2B and B2C channels, the Group has strengthened its position as a premier destination for capturing a growing consumer base, as well as for overseas enterprises looking for high-quality Asian beauty products to grow their business.

Unlock global growth through innovative digital marketing initiatives

During the period, the US remained the Group’s largest market, accounting for 35.4% of the Group’s total revenue and a growth rate of 42.4% compared to the previous period. Meanwhile, the European Union recorded a high growth rate of 114.1%, with a revenue of US$49.8 million, accounting for 30.5% of the Group’s total revenue, followed by the United Kingdom with 7.2% and Canada with 6.0%. The Group’s growing market share was partly attributable to its innovative digital marketing strategy that leverages influencers for the B2C platform from 2022. With the total number of unique influencers increasing, the revenue generated from influencer referrals during the period amounted to US$33.9 million, an increase of 115.2%, accounting for 27.2% of the B2C platform’s revenue.

Currently, the Group’s B2C platform ranks first in traffic among Asian beauty shopping platforms in major overseas markets such as the US, UK, Canada, Australia, France, Germany, Italy and Spain.(1) In order to cater to a wider geographical distribution of customers, YesStyle is available in several languages, including Chinese, English, French, German, Spanish, Italian and Dutch. In addition, the website was launched in Arabic in August 2024. Meanwhile, cooperation with influencers, who share the same characteristics as the target group of K-Beauty products, on various platforms, such as Instagram, TikTok and YouTube, has not only increased the market dominance of the Group’s B2C platform, but also increased global exposure in a cost-effective way.

Meet growing customer demand with an additional logistics hub

In addition to the current autonomous mobile robotics (AMR) warehouse and fulfillment center in Hong Kong, the Group has also established three overseas warehouses in the US, UK and Germany for its B2B channel. To keep pace with the booming K-Beauty market, the Group is expanding its fulfillment capacity with a second AMR warehouse in the Mapletree Logistics Hub in Hong Kong, which will be operational in the first quarter of 2025. By building on the proven experience of the current fulfillment center, the new highly automated facility will enable the Group to increase operational efficiency and fulfillment capacity with relatively less manpower, thereby meeting the rapidly growing demand from customers on its e-commerce platforms.

Mr. Joshua Lau, Founder, Executive Director and CEOsaid: “YesAsia Holdings is very honored to have the trust of many K-Beauty brand partners and is pleased to have achieved a historically high first half revenue and profit during the period, thanks to these partnerships. The Group has entered the expansion phase, not only able to reach new promising markets through our B2C platforms and strengthen the strength of our digital marketing strategy through the influencer program, but also opens the door through its B2B platform for more overseas companies to capture the global increase in demand for K-Beauty products. Looking ahead, we remain steadfast in our vision of ‘being the go-to e-commerce gateway for leading Asian brand partners seeking to reach a global audience’, and will continue to strengthen our competitive brand portfolio, digital marketing strategy and fulfillment capabilities, to return value to our stakeholders in the long term.”

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About YesAsia Holdings Limited (share code: 2209)

Founded in 1997, YesAsia Holdings is a leading e-commerce platform operator renowned for its expertise in identifying and sourcing high-quality Asian beauty, fashion, lifestyle and entertainment products. Headquartered in Hong Kong, the Group delivers products quickly and efficiently to a global audience through its strong relationships with over 400 leading Asian beauty brands and supplier partners. The Group operates three main e-commerce platforms: YesStyle, an e-commerce B2C platform for offering the increasingly popular Asian beauty, fashion and lifestyle products, particularly Korean beauty products; AsianBeautyWholesale, a B2B platform for Asian beauty products; and YesAsia, an e-commerce retail platform for entertainment products. With effect from closing on 30 August 2024, YesAsia Holdings will be included as a constituent of the MSCI Hong Kong Micro Cap Index.

For more information, please visit the Group’s official website: https://www.yesasiaholdings.com/

News Source: YesAsia Holdings Limited