Zhongtong Finance APP learned that on August 16, Hang Seng Index Company announced the latest quarterly review results, in which Tarsus Group (01405) was included in the Hang Seng Composite Small Cap Index. The changes will be implemented after the market closes on September 6, 2024 (Friday) and will take effect from September 9, 2024 (Monday). According to CICC research reports, Tarsus Group may be included in the Hong Kong stock connect because it meets a series of criteria including market cap, liquidity, and listing time.

On July 31, Tarsus Group announced that it is expected to achieve a total revenue of not less than RMB 2 billion for the first half of 2024 (ending on June 30, 2024), which is an increase of not less than 45.0% YoY compared to the first half of 2023 (ending on June 30, 2023) with a total revenue of approximately RMB 1.376 billion. The net income attributable to shareholders for the first half of 2024 is expected to be no less than RMB 10 million, while the net income for the first half of 2023 was approximately RMB 8.8 million (this RMB 8.8 million net income was positively impacted by the fair value gain of RMB 0.119 billion from the convertible preferred stock).

According to the announcement, the strong business performance of Tarsus Group in the first half of 2024 (reflected in the positive net income and adjusted net income) is mainly attributed to (including): the expansion of store networks by the group, with the total number of stores increasing from 672 on June 30, 2023 to 768 on December 31, 2023 and further increasing to 914 on June 30, 2024; the continuous growth in revenue of existing stores and strong sales performance of new stores in emerging markets in the first half of 2024; and the improvement of the group's profitability at the store and corporate level in the first half of 2024.