Strengthened Commercialization across
Payments and Digital Commerce
Ecosystem
Remarkable Overseas Expansion
Progress
Wider AI Technology
Application
HONG
KONG, Aug. 27, 2024 /PRNewswire/
-- Yeahka Limited ("Yeahka" or the "Company," Stock
Code: 9923.HK), a leading payment and digital commerce technology
platform in China, is pleased to
announce its interim results for the six months ended June 30, 2024 (the "Reporting Period" or the
"first half").
Business and Financial Summary
- Our one-stop payment services continue to lead the industry and
our market-leading position in app-based payments is solidified,
with peak daily transaction counts reaching nearly 60 million;
- Against the backdrop of the high base in the same period last
year and macroeconomic volatility, our gross payment volume (GPV)
for the six months ended June 30,
2024 was RMB1,166.2 billion,
representing a decrease of 17.8% compared to the same period in
2023;
- Commercialization capability was solid with our payments fee
rate maintaining at 12.3 basis points (bps);
- Revenue for the six months ended June
30, 2024 was RMB1,577.7
million, representing a decrease of 23.5% from the same
period in 2023;
- Revenue contribution from non-payment digital commerce
services, comprising merchant solutions and in-store e-commerce
services, continue to increase, with their percentage to total
revenue increasing from 11.0% for the six months ended June 30, 2023 to 14.6% for the same period in
2024;
- Overall gross profit margin increased from 17.7% for the six
months ended June 30, 2023 to 19.0%
for the same period in 2024;
- Gross profit contribution from non-payment digital commerce
services continue to increase, with their percentage to total gross
profit increasing from 52.6% for the six months ended June 30, 2023 to 69.1% for the same period in
2024;
- Driven by our wider application of artificial intelligence,
selling and administrative expenses decreased by 11.2% for the six
months ended June 30, 2024 compared
to the same period in 2023;
- Finance costs reduced by 6.2% for the six months ended
June 30, 2024 compared to the same
period in 2023;
- Profit for the Period amounted to RMB32.6 million for the six months ended
June 30, 2024, exceeding the amount
for the full year of 2023; and
- Gearing ratio decreased to 41.1% as at June 30, 2024 on the back of the Company's early
repurchase of its convertible bonds using its internal cash
flow.
Mr. Luke Liu, Chairman of the
Board and Chief Executive Officer, said, "Amid the macroeconomic
volatility in the first half of 2024, we remain steadfast to our
long-term vision being an all-rounded commerce enablement services
provider to merchants. We made more progress increasing synergies
beyond payments into other business lines, more international
expansion and wider application of AI. We believe this provides
higher quality of bases to seize many opportunities in the longer
game and to deliver sustainable profits and value to our
stakeholders. We made great strides overseas winning over 200
global brands covering more than 20,000 stores. Our investment
company, Fushi, also offers proprietary and localized merchant
solutions that satisfy demands from world-renowned customers. It is
ramping up its products & verticals coverage. Overseas markets,
especially developed ones, have many pockets with attractive
economics and relatively high willingness to pay. This paves the
way for a very wide channel of profits to come. On AI and
technology, we also further integrated large language models for
both revenue-generating and cost-optimizing purposes. Our new
products helped merchants automate price setting to optimize
monetization. We empowered them with precise marketing and
automatic content generation tools to raise sales conversion. We
also applied to our own customers servicing system, thereby
meaningfully driving down our selling and administrative
expenses. Our ESG efforts were also recognized
internationally, for instance, in S&P Global's 2024
Sustainability Yearbook and ranked first in our industry in
China. Our business uplifts
underserved merchants and consumers in communities locally and
abroad. In this year's first half, we increased energy usage
utilization rate by 7% through constructing green data centers and
treated 12 million risky transactions with wider adoption of
AI."
Mr. Vincent Chan, General Manager
of Capital Markets, added, "We upped both our non-payment services'
commercialization and share of revenue and profit contribution.
This makes our service offerings even more comprehensive and
resilient than before. These non-payment businesses also enhanced
their profit margins year over year. We also significantly
increased sales efficiencies in our in-store e-commerce services
and there is a visible pathway to run-rate profitability in the
second half and sustainable growth in the years to come for this
business. We also advanced our one-stop payment services' business
model with wider regions covered in underserved markets, further
diversified & resilient sets of verticals penetrated, more
profitable customer segments served and broader customer
acquisition channels through deeper collaboration with strategic
partners. We served more large-and-medium-sized merchants
leveraging the network and partnerships with over 5,000 SaaS
providers and over a hundred of banks as we scaled our product and
region coverage. Our one-stop offerings of payments plus other
commerce enablement services also gave us a unique edge in
digitizing for and satisfying the various demands of
large-and-medium-sized merchants. We therefore maintain our market
leadership with a strengthened foundation. Our proposition has
always been to leverage our extensive payments platform to fully
digitize merchants all around their commerce. Such full-suite
technology remains our edge over others in being more agile scaling
up. And now is increasingly about "Going global", as we play a more
important role in the global journey of digitization."
Outlook
Mr. Luke Liu concluded, "We are
committed to being the go-to commerce enablement services provider
for merchants. Whilst maintaining our established market leadership
in the one-stop payment services segment. We strive to continue
accelerating the growth and profit contribution of other services
including merchant solutions and in-store e-commerce services as we
upgrade our intrinsically synergistic business model. We have a
strong foundation underscored by technical set-up, merchants
servicing insights and business network domestically and beyond to
further our progress in international expansion into attractive
segments and widespread application of AI tools for both
commercialization and efficiency purposes. By being steadfast to
our vision and business model upheld for over a decade, such
strategies will build a natural moat against further externalities
whilst equipping us with early mover advantage capturing emerging
opportunities on a much wider scale in the long-term."
About YEAHKA LIMITED (Stock Code: 9923.HK)
Yeahka is a leading payment-based technology platform empowering
businesses, dedicated to creating value for merchants and
consumers. We are committed to expanding an independent digital
commerce ecosystem by (i) providing seamless, convenient, and
reliable payment service to merchants and consumers through our
one-stop payment service business, (ii) enabling merchants to
better manage and drive business growth through our merchant
solutions business, and (iii) offering consumers high-value local
lifestyle services through our in-store e-commerce service
business.
For more information, please visit
https://www.yeahka.com/
Investor and media inquiries, please contact:
Yeahka Limited
IR Team
E-mail: ir@yeahka.com
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SOURCE Yeahka