交银国际研究 公司更新 互联网 收盘价 目标价 潜在涨幅 2024年2月26日 港元13.98 港元16.00↓ +14.4% 移卡 (9923 HK) 支付业务调整，到店竞争加剧，利润或不及此前预期；下调至中性  下调2023年全年收入及利润预期，经调整EBITDA快速增长趋势不变。我 个股评级 们下调2023 年总收入预期11%至39 亿元（人民币），下同），同比增 中性↓ 14%，主要因：1）支付业务一次性调整影响及费率短期承压；2）受竞争 影响，到店业务增长承压。基于收入下调，我们相应调整归母净利润预期 1年股价表现 至8000万元，对应净利率2%，对比此前预期的1.5亿元/4%。剔除一次性 影响，我们预计经调整EBITDA同比增160%至5.5亿元，维持扩张趋势， 9923 HK 10% MSCI中国指数 受益于支付业务扩张及到店亏损收窄。 0% -10%  支付GPV增势不变，费率短期承压。我们预计2023年支付规模（GPV）2.8 -20% 万亿元，同比增26%，与此前预期基本一致，主要受益于线下消费复苏及 -30% -40% 代理商渠道扩张。但考虑：1）259号文件全面实施，收单合规化发展 ...

Financial Performance - Revenue for the first half of 2023 reached RMB 2,062.2 million, a 25.6% increase compared to RMB 1,641.8 million in the same period of 2022[12]. - Adjusted EBITDA for the first half of 2023 surged by 317.4% year-on-year to RMB 290.9 million[12]. - The gross profit margin decreased to 17.7% from 32.2% in the same period last year[12]. - The gross profit for the first half of 2023 was RMB 366.0 million, down from RMB 529.3 million in the same period of 2022[23]. - The company reported a net profit of RMB 30.4 million for the six months ended June 30, 2023, up 42.8% from RMB 21.3 million in the same period of 2022[44]. - Basic earnings per share decreased to RMB 0.09, down from RMB 0.19 in the same period of 2022[93]. - The company reported a net cash outflow from operating activities of RMB (231,415) thousand for the six months ended June 30, 2023, compared to a cash inflow of RMB 50,762 thousand in the same period of 2022[99]. - Total comprehensive income for the period was RMB 38,231 thousand, which includes a profit of RMB 33,163 thousand and other comprehensive income of 5,068 thousand[97]. Revenue Growth - Total GPV for one-stop payment services increased by 33.5% year-on-year to RMB 1,419.2 billion, with 70.5% from app-based payment services[8]. - Active payment service merchants grew by 20.7% year-on-year to 9.2 million[8]. - Total GMV for in-store e-commerce services exceeded RMB 2.4 billion, representing a year-on-year growth of 78.9%[9]. - Revenue from the one-stop payment service increased by 44.3% to RMB 1,835.3 million in the first half of 2023, up from RMB 1,271.5 million in the same period of 2022[26]. - Revenue from the merchant solutions segment grew by 65.7% compared to the second half of 2022[19]. Operational Efficiency - The company experienced a significant operational efficiency improvement reflected in the substantial growth of adjusted EBITDA[11]. - The number of active merchant solution merchants exceeded 1.5 million, a year-on-year increase of 6.2%[9]. - The peak daily transaction volume for app-based payment services reached nearly 60 million transactions[8]. - The company aims for a full-year GPV guidance of RMB 2.7 trillion to RMB 2.9 trillion for 2023[16]. Cost and Expenses - The company's operating costs increased by 52.5% from RMB 1,112.5 million in the six months ended June 30, 2022, to RMB 1,696.2 million in the same period of 2023, primarily due to increased commissions paid to payment distribution channels as a result of higher GPV from one-stop payment services[29]. - The gross margin dropped from 32.2% in the six months ended June 30, 2022, to 17.7% in the same period of 2023, with one-stop payment services' gross margin falling from 20.9% to 9.5%[32]. - Sales expenses decreased by 64.6% from RMB 234.0 million in the six months ended June 30, 2022, to RMB 82.9 million in the same period of 2023, mainly due to stabilized investment in in-store e-commerce services[33]. Assets and Liabilities - Total assets rose from RMB 7,290.0 million as of December 31, 2022, to RMB 7,662.4 million as of June 30, 2023, while total liabilities increased from RMB 4,608.7 million to RMB 4,951.1 million[48]. - The debt-to-equity ratio increased from 39.5% as of December 31, 2022, to 44.2% as of June 30, 2023, mainly due to the issuance of convertible bonds and an increase in borrowings[49]. - Cash and cash equivalents decreased by 16.9% from RMB 1,591.5 million as of December 31, 2022, to RMB 1,323.3 million as of June 30, 2023, primarily due to payments for restricted share units and cash used for expanding e-commerce services[49]. Investments and Shareholder Actions - The company repurchased approximately 1,893,600 shares at a price range of HKD 16.8 to 21.5 per share, representing 0.425% of the issued shares as of June 30, 2023[21]. - The company has not granted any additional restricted share units under the plan since the reporting date[74]. - The company has made investments in non-listed entities valued at RMB 699,871,000 as of June 30, 2023, up from RMB 620,764,000 at the end of 2022, indicating strategic growth in investments[150]. Financial Risks and Management - The company faces various financial risks, including market risk, credit risk, and liquidity risk, with risk management overseen by senior management[107]. - Credit risk is associated with cash and cash equivalents, restricted cash, receivables, and loans, with the company providing guarantees for loans issued by certain partners[108]. - The expected credit loss provision for accounts receivable as of June 30, 2023, is RMB 20,745 thousand, a decrease from RMB 29,531 thousand at the end of 2022[116]. Corporate Governance - The company is committed to maintaining rigorous corporate governance and has adopted the principles of the corporate governance code[84]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial information for the six months ended June 30, 2023[87]. - The company has confirmed compliance with the standard code for securities transactions by directors during the reporting period[86].

Yeahka (09923) H1 2023 Earnings Call August 24, 2023 08:00 AM ET Speaker0 Ladies and gentlemen, good day, and welcome to ECAL Limited twenty twenty three Interim Results Announcement Call. At this time, all participants are in a listen only mode. After management's prepared remarks, there will be a question and answer session. Please be advised that today's conference is being recorded. I'll now pass the call to Mr. Ben Chao, Board Secretary and General Manager of Corporate Development and Capital Markets f ...

Financial Performance - Total Gross Payment Volume (GPV) increased by 33.5% year-on-year to RMB 1,419.2 billion, with 70.5% from app-based payment services[2] - Revenue for the first half of 2023 reached RMB 2,062.2 million, a 25.6% increase from RMB 1,641.8 million in the same period of 2022[6] - Revenue from one-stop payment services rose by 44.3% year-on-year to RMB 1,835.3 million[5] - Adjusted EBITDA for the first half of 2023 surged by 317.4% to RMB 290.9 million[7] - The company's GPV increased by 33.5% year-on-year, driven by the recovery of offline consumption and strategic execution[8] - Revenue grew by 44.3% year-on-year, despite adjustments for non-recurring income, with transaction fee rates improving from 12.0 basis points in 2022 to 12.9 basis points in 2023[8] - The company achieved a net profit of RMB 30.4 million for the period, compared to RMB 21.3 million in the previous year[16] - The profit attributable to equity holders for the six months ended June 30, 2023, was RMB 33,163,000, a decrease of 56% from RMB 75,103,000 in the same period of 2022[94] Merchant Activity - Active payment service merchants grew by 20.7% year-on-year to 9.2 million[2] - The number of active merchant solutions merchants increased by 6.2% year-on-year to over 1.5 million[2] - The number of merchants using the merchant solutions increased from 1.2 million in the second half of 2022 to 1.5 million in the first half of 2023, reflecting a 65.7% revenue growth in this segment[12] Cost and Profitability - The gross profit decreased by 30.9% year-on-year to RMB 366.0 million, with a gross margin of 17.7%[7] - Operating costs increased by 52.5% from RMB 1,112.5 million to RMB 1,696.2 million, mainly due to increased commissions paid to payment distribution channels as GPV grew[22] - The gross margin improved from 57.1% in the first half of 2022 to 76.9% in the first half of 2023, while net losses narrowed by 83.8% to RMB 25.9 million[10] - The gross margin for the one-stop payment service fell from 20.9% in the six months ended June 30, 2022, to 9.5% in the same period of 2023[24] Assets and Liabilities - Total assets increased from RMB 7,290.0 million as of December 31, 2022, to RMB 7,662.4 million as of June 30, 2023, representing a growth of 5.1%[41] - Total liabilities rose from RMB 4,608.7 million as of December 31, 2022, to RMB 4,951.1 million as of June 30, 2023, an increase of 7.4%[41] - Cash and cash equivalents decreased by 16.9% from RMB 1,591.5 million as of December 31, 2022, to RMB 1,323.3 million as of June 30, 2023[42] - The debt-to-equity ratio increased from 39.5% as of December 31, 2022, to 44.2% as of June 30, 2023, primarily due to the issuance of convertible bonds[42] Shareholder Actions - The company repurchased 21,200 shares at a cost of approximately HKD 0.4 million, representing 0.005% of the issued shares as of June 30, 2023[14] - The company also purchased 1,893,600 shares for approximately HKD 33.8 million, accounting for 0.425% of the issued shares as of June 30, 2023[14] Research and Development - Research and development expenses decreased by 8.4% from RMB 134.0 million to RMB 122.7 million, attributed to improved efficiency in system development[28] Risk Management - The company continues to focus on risk management, particularly in credit risk associated with cash and receivables, ensuring that clients have appropriate credit histories[78] - The company’s financial risk management strategy aims to mitigate potential adverse impacts on financial performance due to market risks, including foreign exchange and interest rate risks[76] International Expansion - The company is actively pursuing international expansion, having established operations in Singapore and Hong Kong, and is building a team in Indonesia[9] Corporate Governance - The company has complied with most of the corporate governance code provisions, with a noted deviation regarding the roles of the Chairman and CEO being held by the same individual[121] - The audit committee has reviewed the unaudited interim financial information for the six months ended June 30, 2023, ensuring adherence to accounting principles and internal controls[125]

Financial Performance - In 2022, the company's revenue reached RMB 3,418.0 million, representing a year-on-year growth of 11.8%[13] - Revenue for 2022 was RMB 3,418.0 million, an increase of 11.8% compared to RMB 3,058.6 million in 2021[27] - Revenue from the one-stop payment service grew by 21.4% year-on-year, amounting to RMB 2,754.3 million[13] - Revenue increased by 11.8% from RMB 3,058.6 million in 2021 to RMB 3,418.0 million in 2022, driven mainly by growth in one-stop payment services and in-store e-commerce services[52] - Revenue from in-store e-commerce services surged by 139.0%, exceeding RMB 354.2 million[13] - The total GMV for in-store e-commerce services exceeded RMB 3.3 billion, representing a year-on-year growth of 733.1%[22] - The number of orders for in-store e-commerce services reached nearly 37 million, a year-on-year increase of 305.0%[22] - Adjusted EBITDA rose by 73.0% year-on-year to RMB 213.4 million, with a significant 106.1% increase in the second half of 2022 compared to the first half[13] - Adjusted EBITDA for 2022 was RMB 213.4 million, reflecting a 73.0% increase compared to 2021, despite a net loss of RMB 211.3 million in the in-store e-commerce service[30] Profitability and Margins - Gross profit increased by 26.6% year-on-year to RMB 1,030.9 million, with a gross margin improvement of 3.6 percentage points to 30.2%[13] - Gross profit rose by 26.6% from RMB 814.6 million in 2021 to RMB 1,030.9 million in 2022, with gross margin improving from 26.6% to 30.2%[30] - The gross margin for the one-stop payment service improved from 16.7% in 2021 to 19.3% in 2022[34] - The gross margin for in-store e-commerce rose from 57.1% in the first half of 2022 to 75.8% in the second half[38] Assets and Liabilities - The company's total assets increased to RMB 7,289.998 million in 2022, up from RMB 6,755.776 million in 2021[9] - Total liabilities rose to RMB 4,608.731 million in 2022, compared to RMB 3,555.105 million in 2021[9] - Total debt increased significantly from RMB 551.3 million to RMB 1,086.3 million, with convertible bonds at RMB 379.3 million and bank borrowings at RMB 680.4 million[92] - The capital debt ratio rose from 15.9% to 39.5%, primarily due to the issuance of convertible bonds and increased borrowings[90] Market and Growth Strategy - The company plans to leverage its technological capabilities and digital ecosystem to establish strategic alliances for market leadership and business growth[12] - The company aims to leverage the recovery of the Chinese economy in 2023 to drive significant growth across its three main business lines[18] - The company plans to continue increasing fee rates and expand digital currency electronic payment (DC/EP) scenarios while obtaining payment licenses in the US, Singapore, and Hong Kong[35] - The company plans to expand into overseas markets while focusing on creating sustainable value for stakeholders[44] Operational Highlights - The number of active payment service merchants reached a historical high of 8.1 million, with daily transaction volume exceeding 50 million[12] - The number of active payment service merchants grew by 11.4% to 8.1 million, reflecting the continued expansion of the merchant base[21] - The company achieved a 40% increase in data processing volume, handling over 1 billion risk transactions throughout the year[48] - The company has implemented a comprehensive training program for employees, focusing on technical, regulatory, and management training[141] Expenses and Financial Management - Selling expenses rose by 49.1% from RMB 259.2 million in 2021 to RMB 386.5 million in 2022, mainly due to increased outsourcing costs and synergies from the acquisition of Dingding Cultural Tourism[67] - Administrative expenses increased by 19.9% from RMB 269.2 million in 2021 to RMB 322.8 million in 2022, driven by higher employee benefits and outsourcing labor costs post-acquisition[68] - R&D expenses grew by 12.4% from RMB 240.4 million in 2021 to RMB 270.3 million in 2022, reflecting increased commitment to new business and product development[69] Shareholder and Equity Information - The company repurchased approximately 5.89 million shares at prices ranging from HKD 16.42 to HKD 22.65, representing 1.3% of the issued shares as of December 31, 2022[45] - The company issued USD 70 million convertible bonds with a 6.25% interest rate, maturing in 2027, to support long-term business expansion[46] - The company has a strategic focus on cross-border e-commerce and digital solutions to accelerate development in upstream and downstream industries[112] Risk Management and Compliance - The company has established various security measures, including firewalls and intrusion detection systems, to mitigate risks related to IT system failures and security threats[149] - The company maintains a fraud prevention system to minimize risks associated with fraudulent transactions, including a multi-dimensional monitoring system for merchants[154] - The company has a close communication strategy with business partners to develop risk response plans in case of operational failures caused by third parties[152] Employee and Corporate Governance - As of December 31, 2022, the company had 1,299 employees, primarily located in China[100] - The company has established a dual career path to enhance personal and professional development opportunities for employees[141] - The company is actively participating in various employee social security programs as required by Chinese regulations[141]

Financial Data and Key Metrics Changes - Total revenue reached RMB 400 million in 2022, an increase of 11.8% year on year from RMB 359 million in 2021 [22] - Gross profit increased by 26.6% year on year to RMB 1.3 billion in 2022, with gross profit margin expanding from 26.6% to 30.2% [22][23] - Adjusted EBITDA rose 73% year on year to RMB 230 million in 2022, with significant half-on-half growth of 106% in the second half [24] Business Line Data and Key Metrics Changes - Payment business GPV grew over 5% year on year to RMB 2.2 trillion, with app-based GPV increasing by 21% year on year [14][16] - In-store e-commerce GMV increased more than seven times to RMB 3.3 billion, with revenue rising 139% to over RMB 1 billion [17] - Merchant solutions gross profit margin improved from 57% in the first half to 75% in the second half of 2022 [19] Market Data and Key Metrics Changes - Active payment merchants increased to 8.1 million, with daily transactions exceeding 50 million [13] - The company maintained a leading position in the QR code payment industry, capturing over 30% market share [56] - The total GPV in January and February 2023 grew by 34.1% year on year, indicating a strong recovery in offline consumption [16] Company Strategy and Development Direction - The company aims to create value for merchants and expand its ecosystem by leveraging partnerships with local media platforms like Douyin and Kuaishou [10][20] - A focus on profitability and operational efficiency is emphasized, particularly in the in-store e-commerce segment [19] - The company is exploring overseas markets and has obtained payment licenses in Singapore, Hong Kong, and the US [16][98] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of offline consumption and provided a full-year GPV guidance of RMB 2.7 trillion to RMB 2.9 trillion for 2023 [29] - The competitive landscape is evolving, with a focus on maintaining market share and profitability amidst increasing competition [96] - The company is optimistic about achieving breakeven in the in-store e-commerce business soon [67] Other Important Information - The company has developed over 10 functions based on AI-generated content (AIGC) to enhance operational efficiency [45] - ESG ratings were highlighted, with the company scoring an industry-leading 48 on the S&P Global ESG ratings [20] Q&A Session Summary Question: Can management share more about the offline consumption recovery trend? - Management noted significant recovery in Tier 1 cities, particularly in retail and restaurant sectors, with similar trends observed in March [28] Question: What is management's view on the competition landscape in the Douyin ecosystem? - Management acknowledged the complexity of the competitive landscape and emphasized a dual model strategy to address different city tiers [32][36] Question: Can management provide insights on the applications of AIGC in the merchant solutions business? - Management detailed three applications of AIGC, including content creation for marketing and customer service automation [48][50] Question: What are the growth drivers for payment GPV in 2023? - Management identified joint merchant acquiring services with banks and partnerships with SaaS providers as key growth drivers [80] Question: How does management view the competition between Douyin and Meituan? - Management believes the competition will not negatively impact their business model due to the different approaches of the platforms [84] Question: What is the outlook for the in-store e-commerce gross margin? - Management explained that gross margin improvements were driven by accounting policy changes and increased scale [90][92]

Financial Performance - Total Gross Payment Volume (GPV) increased by 5.1% year-on-year to RMB 2,231.6 billion, with 69.9% of transactions being app-based payments, up 9.4 percentage points from the previous year[2]. - Revenue for the year increased by 11.8% to RMB 3,418.0 million, with revenue from one-stop payment services rising by 21.4% to RMB 2,754.3 million[5]. - Adjusted EBITDA increased by 73.0% year-on-year to RMB 213.4 million, with an adjusted EBITDA margin of 6.2%[5]. - Revenue increased by 11.8% from RMB 3,058.6 million in the year ended December 31, 2021, to RMB 3,418.0 million in the year ended December 31, 2022[20]. - Revenue from the one-stop payment service rose by 21.4% from RMB 2,268.3 million to RMB 2,754.3 million[22]. - Revenue from in-store e-commerce services surged by 139.0% from RMB 148.2 million to RMB 354.2 million[23]. - The company reported a net profit of RMB 96,013 thousand for the year, down from RMB 383,459 thousand in the previous year[70]. - Basic earnings per share for the year were RMB 0.39, compared to RMB 1.00 in 2021, reflecting the decline in profitability[74]. E-commerce and Merchant Services - The number of orders for in-store e-commerce services reached nearly 37 million, a year-on-year increase of 305.0%[7]. - In-store e-commerce service GMV exceeded RMB 3.3 billion, representing a year-on-year growth of 733.1%[7]. - The number of merchants using the merchant solutions exceeded 1.2 million in 2022, focusing on cultivating their usage habits[15]. - The gross profit margin for the in-store e-commerce business increased from 57.1% in the first half of 2022 to 75.8% in the second half[12]. Market Expansion and Strategy - The company aims to continue increasing market share and enhancing profitability as China shifts focus from pandemic control to economic growth[7]. - The company plans to expand its payment services into overseas markets, including obtaining payment licenses in the US, Singapore, and Hong Kong[10]. - The company plans to allocate 80% of the convertible bond proceeds (approximately HKD 426.6 million) to expand overseas business by 2026[69]. - The company aims to form strategic alliances or acquire complementary business service providers, with 15% of the placement funds allocated for this purpose, totaling HKD 116.7 million[67]. Financial Position and Liabilities - Total assets rose from RMB 6,755.8 million in 2021 to RMB 7,290.0 million in 2022, while total liabilities increased from RMB 3,555.1 million to RMB 4,608.7 million[44]. - The debt-to-equity ratio increased from 15.9% in 2021 to 39.5% in 2022, primarily due to the issuance of convertible bonds and increased borrowings[45]. - Cash and cash equivalents decreased by 22.7% from RMB 2,057.9 million in 2021 to RMB 1,591.5 million in 2022[45]. - The asset-liability ratio increased from 52.6% in 2021 to 63.2% in 2022[44]. Expenses and Cost Management - Operating costs increased by 6.4% from RMB 2,244.0 million in 2021 to RMB 2,387.1 million in 2022, primarily due to increased commissions paid to distribution channels and marketing partners as GPV volume grew[25]. - Selling expenses increased by 49.1% from RMB 259.2 million in 2021 to RMB 386.5 million in 2022, mainly due to outsourced service costs rising with rapid growth and synergies from the acquisition of Dingding Cultural Tourism[29]. - Administrative expenses rose by 19.9% from RMB 269.2 million in 2021 to RMB 322.8 million in 2022, attributed to increased employee benefits and outsourcing labor costs post-acquisition[30]. - R&D expenses increased by 12.4% from RMB 240.4 million in 2021 to RMB 270.3 million in 2022, reflecting a commitment to new business and product development[31]. Shareholder and Corporate Governance - The company purchased approximately 46,006,000 shares for a total of about HKD 882.6 million, representing 10.3% of the issued shares as of December 31, 2022[17]. - The company repurchased 5,888,800 shares for approximately HKD 109.3 million, accounting for 1.3% of the issued shares as of December 31, 2022[17]. - The company does not recommend the distribution of a final dividend for the year ending December 31, 2022[52]. - The company has adhered to the corporate governance code and has maintained high ethical standards and transparency in its operations[152]. Risk Management and Credit Exposure - The expected credit loss provision for accounts receivable increased to RMB 29,531 thousand as of December 31, 2022, up from RMB 20,442 thousand as of December 31, 2021[92]. - The expected loss rate for overdue accounts receivable over 270 days is 100% as of December 31, 2022, indicating a significant risk[91]. - The company has established policies to ensure that sales are made to customers with appropriate credit records, mitigating credit risk[86]. - The company regularly reviews the recoverability of accounts receivable to ensure adequate provisions for impairment losses[86]. Employee and Stock Options - The company has a stock incentive plan that has granted multiple batches of stock options to employees and directors since 2013, with a total of 34,109,384 stock options converted to restricted share units in August 2019[142]. - The company recognized share-based compensation expenses of RMB 15,136,000 for the year ended December 31, 2022, compared to RMB 12,141,000 in 2021, representing an increase of approximately 24.7%[144]. - The company aims to attract and retain talented employees through its stock option plan, which has been approved by shareholders[135]. Future Outlook - The management has indicated a cautious outlook for the upcoming fiscal year, anticipating challenges in the competitive landscape[80]. - New product development initiatives are underway, aimed at enhancing the user experience and increasing transaction volumes[80].

Financial Performance - Total payment transaction volume (GPV) increased by 7.4% year-on-year to RMB 1,063.2 billion[77] - Revenue for the first half of 2022 reached RMB 1,641.8 million, a 17.1% increase compared to RMB 1,402.5 million in the same period of 2021[80] - Revenue from one-stop payment services grew by 21.8% to RMB 1,271.5 million[80] - Revenue from in-store e-commerce services surged by 259.4% to RMB 161.6 million[80] - Gross profit for the first half of 2022 increased by 13.5% to RMB 529.3 million compared to RMB 466.5 million in the second half of 2021[91] - Adjusted EBITDA for the first half of 2022 rose by 39.7% to RMB 69.7 million, up from RMB 49.9 million in the second half of 2021[91] - The company's net profit dropped from RMB 291.1 million for the six months ended June 30, 2021, to RMB 21.3 million for the six months ended June 30, 2022[149] - Adjusted EBITDA decreased by 5.2% from RMB 73.5 million for the six months ended June 30, 2021, to RMB 69.7 million for the comparable period in 2022[149] User Engagement and Merchant Activity - Active payment service merchants rose by 24.1% to 7.6 million[77] - The number of paid consumers in in-store e-commerce services increased by 578.9% to 9.7 million[83] - Monthly active users (MAU) reached 19.0 million, with a significant increase in user engagement[86] - Active merchant solution clients grew by 25.8% to nearly 1.5 million[87] - The number of active merchants served by the company increased by 25.8% year-on-year, reaching approximately 1.5 million[111] Market Trends and Projections - The market for third-party mobile payment transactions is projected to reach RMB 325.6 trillion in 2022, with a compound annual growth rate of 12.9% from 2020 to 2025[94] - The estimated market size for small and medium-sized merchant digital services based on aggregated payments is approximately RMB 75.4 billion, with a projected compound annual growth rate of 31.4% from 2020 to 2025[94] - The online penetration rate for local life services is expected to increase to 30.8% by 2025[94] Cost and Profitability - Gross profit margin improved to 32.2%, up from 24.8% year-on-year[80] - Revenue from merchant solutions reached RMB 208.8 million, with a year-on-year growth of 14.0% and a gross margin increase of 34.1 percentage points[111] - Total operating costs increased by 5.5% from RMB 1,054.3 million in the first half of 2021 to RMB 1,112.5 million in the first half of 2022, mainly due to increased commissions paid to payment distribution channels and marketing expenses[127] - Operating profit decreased from RMB 360.7 million in the first half of 2021 to RMB 68.2 million in the first half of 2022, primarily due to ongoing investments in in-store e-commerce services[142] Investments and Financial Position - The company raised USD 70 million in July 2022 to strengthen its offshore balance sheet, exploring overseas opportunities as cross-border travel in China gradually opens up[112] - The company's total liabilities increased, reflecting the challenges faced in the second half of 2022 due to consumer fatigue[112] - Total assets decreased from RMB 6,755.8 million as of December 31, 2021, to RMB 6,549.0 million as of June 30, 2022, while total liabilities increased from RMB 3,555.1 million to RMB 3,648.0 million[150] - Cash and cash equivalents decreased by 34.4% from RMB 2,057.9 million as of December 31, 2021, to RMB 1,350.3 million as of June 30, 2022[151] Shareholder Structure and Equity - As of June 30, 2022, the total number of issued ordinary shares was 451,902,842[173] - Liu Yingqi holds 165,710,764 shares, representing 36.67% of the total shares[169] - The second-largest shareholder, Recruit Holdings Co., Ltd, owns 39,051,196 shares, accounting for 8.64%[178] - The company has a significant trust structure, with Creative Brocade International Limited holding 165,710,764 shares, also 36.67%[178] Restricted Share Unit Plan - The company adopted a Restricted Share Unit Plan on August 1, 2019, which is effective for ten years[165] - The plan aims to incentivize directors, senior management, and selected individuals to hold equity in the company, thereby attracting and retaining skilled personnel for future development and expansion[183] - As of June 30, 2022, a total of 39,523,384 shares were granted under the Restricted Share Unit Plan, with 2,939,160 shares (approximately 0.65% of total issued shares) granted but not yet vested, lapsed, or cancelled[189] - The maximum number of Restricted Share Units that can be granted under the plan is not capped, allowing for flexibility in granting to eligible participants[186] Stock Option Plan - The stock option plan has a remaining term of approximately 8 years and 3.5 months as of June 30, 2022[193] - The maximum number of shares that may be issued upon exercise of options under the stock option plan is capped at 10% of the total issued shares as of October 13, 2020, which amounts to 42,620,507 shares[195] - The options granted to employees include 3,421,000 unexercised options from a previous grant and 983,000 options from a new grant[198]

Financial Performance - For the year ended December 31, 2021, Yeahka Limited reported a revenue of RMB 3,058.6 million, representing a year-on-year increase of 33.4%[10] - Gross profit for the same period increased by 9.5% to RMB 814.6 million, with non-payment business gross profit contribution rising to 53.4%[10] - Adjusted net profit for 2021 increased by 20.6% to RMB 434.8 million[10] - The company's revenue increased by 33.4% from RMB 2,292.9 million in 2020 to RMB 3,058.6 million in 2021, driven by the recovery of its one-stop payment services and rapid growth across all business lines[32] - The company's operating profit for the fiscal year ending December 31, 2021, was RMB 482.4 million, compared to RMB 352.4 million in 2020[31] - Net profit decreased by 13.0% from RMB 440.8 million for the year ended December 31, 2020, to RMB 383.5 million for the year ended December 31, 2021[55] - Profit before income tax decreased by 1.8% from RMB 454.5 million for the year ended December 31, 2020, to RMB 446.4 million for the year ended December 31, 2021[53] Revenue Streams - The revenue from merchant solutions grew by 38.5% year-on-year to RMB 642.2 million, while the newly launched in-store e-commerce service generated RMB 148.2 million in revenue[10] - Revenue from one-stop payment services rose by 24.0% to RMB 2,268.3 million, while the number of active payment service merchants and consumers reached approximately 7.3 million and 945 million, reflecting year-on-year growth of 32.5% and 46.5% respectively[20] - Merchant solutions revenue grew by 38.5% to RMB 642.2 million, with the number of active merchant solution users increasing by 53.3% to 1.38 million[23] - The gross merchandise volume (GMV) for the in-store e-commerce service reached RMB 398 million, with revenue of RMB 148.2 million and 5.2 million paying customers as of December 31, 2021[31] Business Segments - The company has restructured its business lines into three segments: (1) one-stop payment services, (2) merchant solutions, and (3) in-store e-commerce services[9] - The company continues to focus on building an independent and scalable digital business ecosystem amid the ongoing digital transformation in China[9] - The company has established a channel network across 30 provinces and 324 cities, collaborating with nearly 15,000 independent sales agents and partners[21] Market Growth and Consumer Base - Total payment transaction volume reached RMB 2.12 trillion, a year-on-year increase of 45.5%[11] - The number of active payment service merchants increased by 32.5% to 7.3 million[11] - The number of consumers reached nearly 945 million, reflecting a growth of 46.5%[11] - The number of active merchant solution merchants grew by 53.3% to 1.38 million[11] Strategic Initiatives - The company plans to expand its business overseas to seek further growth opportunities[12] - The company aims to establish a vibrant business community through its local e-commerce services, enhancing interaction between merchants and consumers[26] - The company is actively exploring the integration of commercial digital ecosystems with the metaverse, utilizing augmented reality and blockchain technology[24] Operational Efficiency - The company aims to reduce physical equipment by about 30% through self-developed private cloud technology, saving approximately 798 MWh of electricity annually[18] - The company has implemented a dual-review process for core server and database operations to prevent malicious actions by employees[102] - The company has established a comprehensive fraud prevention system to minimize fraud risk, including monitoring merchant activities[104] Investments and Acquisitions - The company completed the acquisition of CHUANGXINZHONG LTD for a total consideration of RMB 170 million, with RMB 15 million paid in cash and 4,902,718 shares issued at HKD 37.50 per share[67] - The company invested RMB 100 million in Ding Ding Cultural Tourism, acquiring a 60% stake, with the transaction completed on October 29, 2021[68] Financial Position - Total assets as of December 31, 2021, amounted to RMB 6,755.8 million, up from RMB 5,623.4 million in 2020[6] - The company's equity attributable to owners increased to RMB 3,259.3 million in 2021 from RMB 3,119.8 million in 2020[6] - Total liabilities rose from RMB 2,456.5 million to RMB 3,555.1 million[59] Governance and Compliance - The company has appointed independent directors with extensive backgrounds in finance and technology, enhancing its governance structure[84] - The company has established an Environmental, Social, and Governance (ESG) Committee to oversee and report on ESG strategies and compliance[193] - The board consists of eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors[195] Employee and Shareholder Engagement - The company has implemented various employee social security plans, including housing, pension, medical, work injury, and unemployment relief plans[132] - The company aims to attract and retain skilled personnel through the restricted share unit plan to support future development and expansion[108] Future Outlook - The expected total merchant transaction volume for in-store e-commerce services in 2022 is projected to grow to between RMB 2.8 billion and RMB 3.5 billion[11] - The company plans to expand its business into East Asia and Southeast Asia markets, including Japan and Singapore, to seek further growth opportunities[30]

Revenue and Profitability - Revenue for the six months ended June 30, 2021, increased by 30.2% to RMB 1,402.5 million from RMB 1,077.1 million for the same period in 2020[10]. - The company reported a profit of RMB 291.1 million for the period, up 30.7% from RMB 222.6 million in the previous year[12]. - Net profit increased by 30.7% from RMB 222.6 million for the six months ended June 30, 2020, to RMB 291.1 million for the six months ended June 30, 2021[50]. - The company reported a profit attributable to equity holders of RMB 302,746,000 for the six months ended June 30, 2021, compared to RMB 222,641,000 in the prior year[147]. - Profit before tax increased by 42.4% from RMB 244.4 million for the six months ended June 30, 2020, to RMB 348.0 million for the comparable period in 2021[49]. Customer and Merchant Growth - The number of active payment service merchants increased by 30.6% to 6,129 thousand from 4,692 thousand year-on-year[9]. - The number of consumers served through payment services rose by 67.2% to 822,445 thousand from 491,865 thousand year-on-year[9]. - The number of technology-enabled business service customers increased by 188.9% to 1,689 thousand from 585 thousand year-on-year[9]. - The number of active payment service merchants increased by 30.6% year-on-year to nearly 6.13 million, while the number of consumers reached 822.4 million, up 67.2% year-on-year[16]. Revenue Streams - Revenue from the one-stop payment service increased by 18.0% to RMB 1,044.2 million from RMB 885.1 million year-on-year[12]. - Revenue from technology-enabled business services surged by 86.6% to RMB 358.2 million from RMB 192.0 million year-on-year[12]. - Revenue from SaaS digital solutions increased significantly by 134.3% to RMB 27.3 million, due to efforts in improving existing products and expanding service coverage[33]. - Revenue from marketing services increased by 68.5% to RMB 243.2 million for the six months ended June 30, 2021, compared to RMB 144.3 million in the same period of 2020[34]. - Revenue from fintech services rose by 18.7% to RMB 42.7 million for the six months ended June 30, 2021, up from RMB 36.0 million in the prior year[35]. Operating Performance - Gross profit margin decreased to 24.8% from 30.7% year-on-year[10]. - Operating profit surged to RMB 360.7 million for the six months ended June 30, 2021, up from RMB 127.4 million in the previous year[28]. - Operating costs increased by 41.3% to RMB 1,054.3 million for the six months ended June 30, 2021, compared to RMB 746.1 million in the same period of 2020[38]. - Sales expenses surged by 191.3% to RMB 88.7 million for the six months ended June 30, 2021, compared to RMB 30.5 million in the same period of 2020[42]. Financial Position - Total assets increased from RMB 5,623.4 million as of December 31, 2020, to RMB 5,777.3 million as of June 30, 2021[54]. - Total liabilities decreased from RMB 2,456.5 million as of December 31, 2020, to RMB 2,255.5 million as of June 30, 2021[54]. - Cash and cash equivalents decreased by 16.4% from RMB 2,542.3 million as of December 31, 2020, to RMB 2,126.3 million as of June 30, 2021[55]. - The company's equity attributable to owners increased to RMB 3,528,163 thousand, up from RMB 3,119,787 thousand, indicating a growth of around 13.1%[105]. Investments and Acquisitions - The company agreed to acquire all issued share capital of CHUANGXINZHONG LTD for a total consideration of RMB 170,000,000, consisting of RMB 15,000,000 in cash and 4,902,718 shares issued at HKD 37.50 per share[60]. - The company completed the sale of 60% equity in the SaaS provider Zhizhanggui for a total consideration of RMB 179,588,000, including cash of RMB 100,000,000 and preferred shares valued at RMB 79,588,000[187]. - The company completed the acquisition of an additional 42.5% stake in Chuangxinzhong for RMB 170,000,000, increasing its ownership to 85%[190]. Shareholder Information - The total number of issued ordinary shares as of June 30, 2021, was 451,902,842 shares[67]. - Liu Yingqi held 165,710,764 shares, representing approximately 36.67% of the company[65]. - The company did not recommend an interim dividend for the six months ended June 30, 2021, consistent with the previous year[62]. Risk Management and Compliance - The overall risk management plan focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[119]. - The company has not made any significant changes to its risk management policies since December 31, 2020[119]. - The company has not reported any incidents of non-compliance with employee trading guidelines as of June 30, 2021[89]. Employee and Compensation - The total number of employees as of June 30, 2021, was 1,199, primarily located in China[62]. - Employee benefit expenses increased to RMB 184,085,000 from RMB 87,577,000, reflecting a significant rise in workforce costs[141]. - The company continues to focus on attracting and retaining talent, offering competitive compensation and benefits[62].