Since releasing its H1 2025 interim report on August 20, 2025, Hong Kong-listed SaaS leader WEIMOB INC has continued to gain recognition from capital markets. On August 25, WEIMOB INC surged over 15% in early trading, with its stock price reaching a high of HK$2.80 by market close, pushing its market capitalization above HK$10 billion. CICC's research report dated August 23 noted that WEIMOB INC "achieved a turnaround to profitability in the first half and showed signs of stabilization in core business," setting a target price of HK$2.8.

On the evening of August 20, WEIMOB INC disclosed its H1 2025 performance results, recording revenue of RMB 780 million. After adjusting for the impact of reduced merchant solution rebate rates in 2024, H1 2025 revenue increased 7.8% year-over-year. Adjusted net profit reached RMB 17 million, marking the company's first turnaround to profitability since 2021, exceeding market expectations, primarily benefiting from improved gross margins and cost control. In terms of cash flow, the company experienced a minor operating cash outflow of RMB 28 million in H1 2025.

Behind this successful turnaround to profitability, WEIMOB INC's gross margin surged 9 percentage points to 75.1%, with the significant margin improvement attributable to stabilization and renewed growth in the company's core SaaS business and precision marketing business.

In H1 2025, WEIMOB INC's subscription solution revenue stabilized sequentially, while merchant solution net rebate rates improved. Specifically, subscription solution revenue reached RMB 440 million, up 1.38% sequentially, entering a phase of stabilization and recovery. The company reduced lower-quality business segments and scaled back investments in small and micro merchants. During the same period, smart retail revenue was RMB 290 million, with 1,227 brand merchants and average revenue per brand merchant of RMB 179,000, remaining relatively stable.

Merchant solution revenue totaled RMB 338 million. After adjusting for the impact of reduced rebate rates, revenue grew by a robust 45.3% year-over-year, with gross margin rising from 74.5% to 91.3%, achieving strong recovery. During the reporting period, gross advertising revenue from WEIMOB merchants increased 3.4% year-over-year to RMB 8.62 billion, with advertising platform rebates returning to normal levels. After adjusting for the impact of reduced rebate rates in H1 2024, merchant solution revenue growth reached 45.3% year-over-year in H1 2025.

Notably, WEIMOB INC disclosed that AI-related revenue reached RMB 34 million in H1 2025, with the WAI SaaS, WAI Pro, and WIME product matrix continuing to improve, making artificial intelligence-related revenue a new growth driver for the company.

CICC noted in its report that "WEIMOB INC's H1 2025 revenue basically met expectations while profit exceeded expectations." WEIMOB's H1 2025 interim report showed adjusted EBITDA of RMB 72 million, a significant improvement of 140.7% year-over-year, achieving the first turnaround since 2022; adjusted net profit of RMB 17 million, a substantial improvement of 109.0% year-over-year, marking the first turnaround since 2021.

On August 25, WEIMOB INC announced that company Chairman and CEO Sun Taoyong purchased 4 million shares of the company on the open market of The Stock Exchange of Hong Kong Limited on August 25, 2025, at an average price of approximately HK$2.44 per share, representing about 0.11% of the company's total issued shares as of the announcement date. Following this purchase, Sun Taoyong owns approximately 6.76% of WEIMOB INC's issued share capital. Sun Taoyong expressed full confidence in WEIMOB INC's overall development prospects and growth potential, and does not rule out further share purchases at appropriate times in the future.

CICC's research report indicated that looking ahead to H2 2025, with the weakening negative impact of deferred revenue, expansion of local lifestyle scenarios, incremental AI revenue, and normalization of rebate rates, WEIMOB INC's subscription solutions and merchant solutions revenue is expected to gradually recover, potentially achieving positive year-over-year and sequential growth.

CICC believes that considering the company's margin improvement and cost control, it has raised its 2025 adjusted net profit forecast by 36% to RMB 55.75 million. Introducing 2026 performance forecasts: revenue is expected to reach RMB 1.75 billion, with adjusted net profit of RMB 110 million. Given the company's stabilizing subscription revenue, continued improvement in profitability and cash flow conditions, and rising industry valuation levels, the firm maintains its outperform rating.