Huifu Payment Limited (01806.HK, “Huifu”) has announced its 2019 interim results. During the first half of 2019, the company had a payment transaction volume of 1.06 trillion, with YoY growth of 25% and operation revenue of 1.87 billion with YoY growth of 34%. Huifu realized gross profits of 460 million with YoY growth of 21 %, net profits of 142 million with YoY growth of 73%, and technology R&D equaling 123 million with YoY growth of 66%.
Focusing on Digital Strategy; SaaS Service Became a New Growth Point
According to the latest data released by the PBOC, the transaction volume of internet and mobile payments provided by third-party payment companies increased by 13.4% in the first quarter of 2019 over the same period last year. The payment industry is expected to maintain steady growth, while digitalization has become an important breakthrough point for its development.
According to a report produced by IDC, a research institution specializing in the science and technology market, the scale of China’s SaaS market is expected to exceed RMB 32.3 billion in 2021, and the compound growth rate from 2018 to 2021 is expected to exceed 30%. Huifu has seized development opportunities within the industry, continuously pushed forward a digital strategy and achieved remarkable results. According to interim results, in the first half of 2019, the transaction volume of SaaS services totaled RMB 76.2 billion, while operating income totaled RMB 199 million, an increase of 1338% and 1521% respectively from the same period last year. Meanwhile, emerging businesses showed geometric growth.
Huifu SaaS services mainly cooperates with SaaS providers in the new retail sector to provide converged payment services for merchants and improve value-added services such as financial technology and digital operations. Huifu has significantly improved its SaaS service capability and exceeded a 10-million-transaction daily trading peak through sustained financial technology empowerment. So far, Huifu has cooperated with 221 SaaS providers, an increase of more than 60%, compared to 137% at the end of 2018.
In addition, Huifu and Weimob, a smart business service provider, jointly launched the “Weimob Smart Payment” solution in June 2019. Through the sharing of resources and complementary advantages, the two sides can empower small-mid size enterprises with intelligent payment, creating a “payment + marketing” closed loop, and jointly empowering the digital upgrading of intelligent commerce.
Thorough Business Layout; Helping All Industries Digitally Upgrade
In 2019, Huifu comprehensively implemented a core strategy of digitalization transition and continued to increase investment in Integrated merchants acquiring, SaaS service, Industry solutions, and Cross-border and International business.
Huifu Payment set its technology and data management committee under the board of directors to promote the company’s digital strategy, which was effectively executed. At the same time, Huifu also developed Industry solutions, actively expanded client networks such as Taikang Insurance and other famous merchants, and helped traditional industries like aviation, logistics, and supply chain management to complete digital transitions.
Previously, Huifu Payment cooperated with Jingtie Cloud Intelligent Logistics Co., Ltd. With Huifu’s Cnvex wallet, Jingtie Cloud Smart Logistics’ “Air net + ground net” multi-railway transportation system was able to cover its “Online + Offline” full transaction application scenarios.
Huifu’s Cross-border and International business efforts provided robust cross-border payment, finance and comprehensive service solutions to both domestic and foreign e-commerce organizations. During the period, the company accomplished a Cross-border and International business transaction volume of 20.8 billion with a rapid growth of 210% YoY. In exporting e-commerce, Huifu cooperated with financial institutions to launch a project that allows instant transaction processing + financing to release exporters’ supply-chain asset pressures. As for importing e-commerce companies, Huifu integrated merchants acquiring, custom transaction processing, accounts system establishment, cross-border settlement and other one-stop cross-border payment services. So far, Huifu is one of the leading payment company in the industry to provide a full-steps solution for overseas purchasing. Moreover, Huifu will receive the honor of The Best Cross-Border Payment Service Provider in July from CCPIT (China Council for the Promotion of International Trade).
Technology Changes Life; Huifu Promoted Business Mode Innovation
Huifu has always believed that “Technology Changes Payments” and has thus intensely focused on technological capability. With the technology application, capital power and resource integration abilities accumulated by Huifu through long-term development efforts, Huifu efficiently integrated account management system, payment transaction channel, and data value-added services. Huifu also focused on financial technological capabilities output based on payment.
In 2019, Huifu continued to increase technology R&D investment. As of June 30, 2019, R&D investment expenses reached 123 million, which grew 66% compared to the same period in 2018. Currently the percentage of R&D employees at Huifu reaches more than 43%, and the company is on the same playing field as other global tech leaders. Huifu’s daily transaction processing capability has reached a level of 100 million, 90% of which is based on cloud computing. Transaction stability achieved 99.997%.
“Smart payment butler”, a payment solution wholly innovated and developed by Huifu, has won the fourth award of “Top 10 Financial Technology Innovations”, and Huifu has applied for five patents related to the solution. The project was also recognized as A level and a Shanghai high and new technology achievements transition program.
Additionally, the company has created an online tool for new retailing and cross-border business, which supports API and SDK for all payment services. Huifu is also developing an open technology platform that provides payment settlement, capital collection, accounts and value-added services, membership and marketing, data analysis and other functions, which could serve all business lines in the company, entrepreneurs and partners with open API. Through its shared service platform, Huifu is enhancing the automation, flexibility and measurability of all business operations by upgrading and rebuilding the flow and establishing a connection with clients. At the same time, Huifu provides data analysis and visualization tools to ease decision-making, marketing and employee empowerment, thus providing value-added services.
With current technology development trends, the new technology, including cloud computing, big data, artificial intelligence, 5G and block chain could bring unlimited possibilities for businesses. In the future, Huifu will keep designing new strategies and actively work towards digitalization transformation. The company will also promote business intelligence upgrading with partners in the supply chain, supported by leading technology and operations.
Huifu is dedicated to becoming a payment-tech company in a digital age, and the company’s future potential is expected to come from continued technical innovations.
Source : ACN Newswire