According to the Zhitong Finance App, Qi Yi Technology (01739) announced its annual results for the year ended December 31, 2023. The group achieved revenue of 1,187 billion yuan (RMB, same below) during the period, an increase of 35.54%; gross profit of 495 million yuan, an increase of 4.54%; R&D expenses of 37.148 million yuan; and plans to distribute a final dividend of HK$0.0131 per share.

According to the announcement, the increase in revenue is mainly due to the gradual return to normal business in 2023, especially the interior design and construction business, which showed a positive growth trend this year.

The Group operates three full-service interior design and construction brands, namely “Borosun”, “Jumei” and “Yuzu”. They all use a self-operated model, but they target different customer groups. Interior design and construction revenue increased 111.4% from $345 million for the year ended 31 December 2022 to $730 million for the year ended 31 December 2023.

The interior design and construction revenue of the Group's overall decoration brand “Boruson” increased 60.1% from 55 million yuan for the year ended December 31, 2022 to 88.1 million yuan for the year ended December 31, 2023. This was mainly due to the expansion of Nanchang, Wuhan and Hefei to achieve a total contract output value of 132 million yuan, an increase of 87.2% over the previous year.

The interior design and construction revenue of the “JUMEI” brand, which provides customized services for real estate developers and commercial public decoration, increased by 121.2% from $284 million for the year ended December 31, 2022 to $628 million for the year ended December 31, 2023. The reason for the sharp increase is that due to the impact of last year's low base, the resumption of operations brought about revenue growth; the Group's efforts to expand and implement a strategy of gradual transformation to commercial public decoration services have led to a significant increase of 764.7% in commercial public decoration revenue, from 44 million yuan for the year ended 31 December 2022 to 381 million yuan for the year ended 31 December 2023. Furthermore, the total contract output value of this service reached 852 million yuan, an increase of 243.4% compared with the same period last year.

The interior design and construction revenue of the Group's partial decoration brand “Yuzu” increased by 115.9% from 6.1 million yuan for the year ended 31 December 2022 to 13.3 million yuan for the year ended 31 December 2023. The Group continues to explore the sustainability of this business.