East Buy profit surges on private label sales boom

Livestreaming e-commerce platform East Buy Holding Ltd. (1797.HK) said on Thursday it expects to report its revenue ranged from 5.6 billion ($827 million) to 5.8 billion yuan for its fiscal year through May, up 27.3% to 31.8% year-on-year. It projected its profit for the year would reach 520 million to 550 million yuan, representing a massive 85- to 90-fold surge year-on-year.

The big profit growth was driven by expansion of its private-label offerings, along with a more diversified selection of third-party products, which improved its overall product mix. During the period, several private-label items emerged as smash hits.

In line with its multi-channel growth strategy, the company launched a broader network of livestreaming accounts on Douyin, expanded its roster of livestream hosts and extended broadcasting hours, all of which bolstered its overall gross merchandise volume (GMV).

The company also credited an increase in paying members, higher user repurchase rates and steady revenue growth from its proprietary app, combined with an ongoing supply chain buildout and an upgraded, end-to-end quality control management system.

Shares of Easy Buy opened up 1.4% at HK$22.64 on Friday. The stock is down nearly 60% from its 52-week high

By Lau Chi Hang

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