Event: It's worth buying to release the 2024H1 earnings report.

① 2024H1: Revenue of 0.72 billion yuan, +5.7% YoY; net profit to mother of 0.01 billion yuan, -72.8% YoY, mainly due to increased R&D expenses and 24Q1 charitable donations.

② 2024Q2: Revenue of 4.2 yuan, -1.0% YoY; net profit to mother 0.03 billion yuan, +5.3% YoY.

Split by product: 2024H1 information promotion revenue was 0.31 billion yuan, -4.2% year over year; Internet effect marketing platform revenue was 0.17 billion yuan, -10.3% year over year; operating service fee revenue was 0.18 billion yuan, -10.3% year over year.

Gross profit and expenses: 2024H1 gross margin was 47.0%, respectively, -2.2 pcts year over year. The 2024H1 sales/management/R&D/finance expense rates were 18.2%/12.6%/-0.3%, respectively, -1.2/-0.2/-1.3/-0.1 pcts.

GMV and product categories: 2024H1, “What's Worth Buying” and corresponding mobile apps confirmed that GMV reached 9.181 billion, -16.14% year over year, and completed orders of 0.098 billion orders, +9.64% year over year. In terms of product categories, digital computers, fresh food, and household appliances are the top categories. The proportion of categories such as maternal and child products, home improvement, sports and outdoor, and personal care and makeup continues to increase as the company's diversified category strategic layout progresses.

Users: The number of users has maintained steady growth. 2024H1 had an average monthly activity of 37.7903 million people, +1.62% YoY, 29.6445 million registered users, +7.02% YoY, and 74.9805 million mobile app activations, +11.56% YoY.

AIGC: Based on a third-party generic model and using its own unique data resources and corpus, the company independently developed a big model worth buying and using its own unique data resources and corpus, and launched a series of applications such as “AI Review Bot”, “AI Purchase Suggestions”, and “ZDM-CoPilot Creator Tool” within the “What's Worth Buying” app. 2024H1AIGC accounted for 36.61% of output content, +46.03% YoY.

24-year strategic drive: ① Promote “what is worth buying” core product version upgrades. ② Promote the implementation of AIGC based on the big model of worth buying and spending. ③ Promote a worthwhile model to go overseas and expand the global market.

Profit forecasting and valuation: By providing high-quality consumer content, innovative forms of interaction, and a continuously optimized product operation system, the company provides users with comprehensive, one-stop consumer decision support. The company's core business is steady, and AI application fields are laid out earlier. In the future, with the continuous introduction of AI-related applications, the company model is expected to achieve new growth. The consolidated net profit for 2024-2025 is 0.082 billion/0.127 billion, which should be 39x/25xPE to maintain the “recommended” rating.

Risk warning: consumer recovery falls short of expectations, AI application implementation falls short of expectations, overseas business falls short of expectations