- Beats Expectations, Gradually Expands from Payment to Digital Technology-Enabled Business Services
Yeahka Limited (Yeahka or the Company) (HKG:9923), a leading payment-based technology platform in China, is pleased to announce the interim results for the six months ended 30 June 2021 (the Reporting Period or the first half).
— During the Reporting Period, the Company’s total revenue reached RMB1,402 million, representing a YoY increase of 30.2%. Revenue from technology-enabled business services increased rapidly by 86.6% to RMB358 million.
— The Company recorded net profit of RMB291 million, growing 30.7% YoY; adjusted net profit grew 142.2% YoY to RMB318 million. Earnings per share was RMB 0.71.
— Revenue of the Company’s SaaS digital solutions was nearly RMB27.34 million, an increase of 134.3% YoY.
— Revenue from fintech services amounted to RMB42.72 million, representing a YoY increase of 18.7%. The total amount of loans that the Company facilitated was approximately RMB537.3 million, with a weighted average tenure of 10.2 months.
— Precision marketing services revenue was RMB240 million, an increase of nearly 68.5% YoY.
— The newly launched in-store e-commerce service recorded revenue of RMB44.95 million.
— The total gross payment volume (“GPV”) of the payment services has recorded significant growth and exceeded RMB990.4 billion, up 56.1% YoY. Of which, app-based payment services GPV increased by 72.9% YoY, accounting for 61.8% of total GPV, up from 55.8% in the same period of last year. The peak daily count of QR code payment transactions was nearly 42 million.
— The scale of merchants and consumers traffic within the Company’s ecosystem has continuously fueled the rapid growth of technology-enabled business services. The number of technology-enabled business service customers reached 1.69 million representing a YoY increase of 188.9% in the first half of 2021.
— For the newly established in-store e-commerce platform, the number of paid consumers was more than 1.42 million and the gross merchandise value (“GMV”) from the platform exceeded RMB71 million.
Mr. Luke Liu, Chairman of the Board, Chief Executive Officer and Executive Director of the Company, said, “The recovery of China’s real economy in the first half of 2021 has provided Yeahka a perfect opportunity to expand its business from payments to digital technology-enabled services. With that we continued to innovate and meet the diverse needs of merchants and consumers. Regarding the merchant ecosystem, the number of active payment service merchants increased 30.6% year-on-year (“YoY”) to approximately 6.13 million. For the consumer ecosystem, by focusing on small and high-frequency purchases for offline payment services case scenarios, the number of consumers reached via our merchant ecosystem grew by 67.2% YoY to 822.4 million. Through the continuous innovation of our mobile payment and technology-enabled business services, we cater to the needs of merchants and consumers alike. On commercial digitalization, we focus on improving the operating efficiency for our merchants. To achieve this, we continued to optimize and upgrade our self-developed SaaS digital solutions through deployment of a series of upgrade modules which help enhance the stores’ economics. Moreover, on top of helping merchants improve their brand awareness through our marketing services, we are also dedicated to improving merchants’ sales directly. In achieving this, we launched the in-store e-commerce service, where merchants can now easily create various forms of promotions to connect millions of consumers through our online and offline sales network.
Mr. Liu continued, “Technology-enabled services continued to grow rapidly, the number of technology-enabled business service customers surged 189% YoY, and its gross profit contribution also increased significantly to 43.5%, from 34.9% in the same period last year. The Company’s growth of payment traffic has significantly accelerated in the first half of the year through building a diversified channel system and attractive fee rate policies, which support business enablement, consumer insights and outreach. With our full confidence in the Company’s growth strategy and focus to incentivize our core talent, the Company recently announced a share purchase program of up to a total of US$100 million. The repurchased shares will be used for the issuance of restricted shares to outstanding employees.
We are committed to establishing a commercial digitalized ecosystem with strong self-reinforcing network effect. Based on its favorable initiatives for different brands, merchants, consumers, marketing personnel, advertisers and other participants, the Company conducts cross-selling for participants across its entire ecosystem to maximize monetization and facilitate the growth and success of the digital economy.
In the future, the Company will continue to explore the value of traffic and data derived from payments, led by its experienced production and research team in order to extend the boundaries of its business and promote technology innovation and digital solutions among merchants and consumers. The Company will also strive to become an integrated internet service provider and create sustainable long-term value for shareholders, employees and society.
About YEAHKA LIMITED (HKG:9923)
Yeahka is a leading payment-based technology platform dedicated to creating value for merchants and consumers. The Company was listed on The Stock Exchange of Hong Kong Limited under stock code 09923.HK. The Company’s vision is to build a commercial digitalized ecosystem to enable seamless, convenient and reliable payment transactions among merchants and consumers, and to further provide a rich portfolio of diversified technology-enabled business services, including (i) SaaS digital solutions, which help customers improve their operating efficiency; (ii) precision marketing services, which allow customers to effectively reach their target markets; (iii) fintech services, which satisfy customers’ diversified financing needs; and (iv) in-store e-commerce services, which help merchants to increase sales and consumers to enjoy local lifestyle discount benefits.