Boqii Holding Limited

Boqii said first-half fiscal 2024 revenue was RMB389.4 million, down 34% year over year. Gross profit was RMB77.9 million, with gross margin at 20%, down 100 basis points year over year. Post-fulfillment margin improved to 11.2% from 9.5%. Net loss was RMB37.7 million and non-GAAP net loss was RMB34.2 million; excluding one-off items, net loss was RMB27.7 million and non-GAAP net loss was RMB24.2 million, improvements of 6% and 15% year over year, respectively. On the balance sheet, cash and cash equivalents were RMB86.8 million as of September 30, 2023, and debt-to-asset ratio was 39.5%. Management did not give formal quarterly or full-year numerical guidance, but said revenue is expected to stabilize in the short term, losses should move toward breakeven in the short term, and operating expenses should remain on a downward trend as efficiency improves.

Lisa Tang framed the first half as a period of strategic progress despite a tough market, emphasizing revenue mix enhancement, cost control, and the growing role of high-margin private labels. Her tone was cautiously confident, saying management believes it is moving in the right direction and remains confident in the development of China’s pet industry. She also said the company has resolved its delisting risk through its transfer from NYSE to NYSE American and now has no delisting risk.

The financial update highlighted sharp cost reductions alongside lower revenue. Operating expenses fell to RMB110 million, down 27.1% year over year, with fulfillment expenses down 49.4% to RMB34.5 million and sales and marketing down 28.6% to RMB45.4 million; G&A rose to RMB32.2 million due mainly to share-based compensation. The company ended the period with RMB86.8 million in cash and cash equivalents, said there was no major capex, and pointed to strong credit-line backup plus additional capital from financing agreements signed in September 2023 as support for operations and new initiatives.

Analysts focused on why revenue fell, whether delisting risk had been resolved, and what further expense reductions could look like. Management said the revenue decline was mainly from product-mix optimization and weaker consumer sentiment, and it expects revenue to stabilize once the mix reset is complete and the economy improves. On the listing issue, Lisa Tang said the company resolved the delisting risk in October by transferring to NYSE American and now meets compliance requirements. Management also said it expects operating expenses to keep trending down as logistics and customer-acquisition efficiency improve.