Lakala(SZ:300773)2020-04-09 16:00Financial Performance - The company reported a total revenue of RMB 4,000,100,000 for the year 2019, marking a significant increase compared to the previous year[7]. - The company's operating revenue for 2019 was ¥4,899,421,582.02, a decrease of 13.73% compared to 2018[28]. - Net profit attributable to shareholders for 2019 was ¥806,342,383.91, an increase of 34.50% year-over-year[28]. - The total assets at the end of 2019 amounted to ¥11,186,865,198.40, a substantial increase of 122.04% compared to the end of 2018[28]. - The company reported a basic earnings per share of ¥2.09 for 2019, up 25.15% from ¥1.67 in 2018[28]. - The total net assets attributable to shareholders increased by 70.02% to ¥4,956,041,948.26 at the end of 2019[28]. - The company’s total revenue for 2019 was approximately ¥4.90 billion, a decrease of 13.73% compared to ¥5.68 billion in 2018[72]. - Payment business revenue accounted for 88.71% of total revenue, amounting to ¥4.35 billion, down 16.74% from ¥5.22 billion in 2018[72]. - Merchant operation revenue saw significant growth, increasing by 119.59% to ¥441.74 million, representing 9.02% of total revenue[72]. - The company achieved a 67.08% year-on-year growth in financial technology business revenue, reaching CNY 0.94 billion, with over 80,000 loans successfully processed for merchants[61]. - The e-commerce technology business revenue grew by 48.70% year-on-year, totaling CNY 0.93 billion, driven by a 103.3% increase in transaction amount for points operation[61]. - The information technology business experienced a significant growth of 208.27%, achieving revenue of CNY 2.56 billion[62]. Market Expansion and Product Development - The company aims to expand its market presence through new product development and technological advancements in mobile payment solutions[7]. - New product launches included "Cloud Collection" and "Cloud Store," aimed at integrating online and offline retail experiences[40]. - The company is focusing on enhancing its POS and mPOS services to cater to the evolving needs of merchants and consumers[7]. - The company plans to continue expanding its market share in the payment sector by enhancing cooperation with major financial institutions and promoting cloud store services[114]. - The company aims to integrate its four technology sectors: payment, finance, e-commerce, and information, to better serve small and micro businesses[114]. - The company intends to optimize its online platforms and enhance user experience to increase active users and conversion rates[117]. - The company plans to expand its SaaS product matrix to provide comprehensive services for various industries, helping merchants embrace mobile internet and new retail[117]. - The company is actively expanding its overseas business, establishing localized business centers in North America, the UK, Europe, and Japan, with plans to complete its global payment technology service layout within 3-5 years[118]. - A strategic acquisition of a fintech startup was announced, which is anticipated to enhance the company's technological capabilities and customer service[183]. Risk Management and Compliance - The board highlighted the importance of risk management strategies in response to potential market fluctuations and uncertainties in future business operations[7]. - The company emphasizes the importance of maintaining compliance with regulatory requirements set by the People's Bank of China and other financial authorities[7]. - The company has developed a mature customer risk monitoring system to manage and analyze transactions, aiming to prevent potential violations by merchants[122]. - The company has established comprehensive risk management policies to address payment fraud risks, ensuring continuous monitoring and improvement of customer identification methods[123]. - The company is enhancing its risk control processes, establishing a three-tier risk prevention system to ensure compliance and orderly business operations[119]. - The management emphasized the importance of regulatory compliance and has committed to ensuring all operations meet local laws and standards[183]. Profit Distribution and Shareholder Policies - The profit distribution plan approved by the board includes a cash dividend of RMB 20 per 10 shares, totaling RMB 80,000,000, and a capital reserve conversion of 10 shares for every 10 shares held[7]. - The company implements a stable profit distribution policy, prioritizing cash dividends, with a minimum of 15% of distributable profits allocated for cash dividends if there are no major investment plans[133]. - The company aims for cumulative cash dividends over the last three years to be at least 30% of the average annual distributable profits[133]. - In cases of negative cash flow for two consecutive years, cash dividends are limited to 50% of the beginning accumulated distributable profits[133]. - The company may distribute stock dividends if undistributed profits reach or exceed 30% of the share capital[134]. - The board of directors is responsible for proposing profit distribution plans based on the company's financial status and operational conditions[138]. - Independent directors must provide clear opinions on profit distribution proposals, requiring majority approval for agreement[138]. - The company has a profit distribution policy prioritizing cash dividends to ensure reasonable returns for investors while considering sustainable development[165]. - The company plans to distribute cash dividends of RMB 800,020,000, which is 100% of the distributable profit of RMB 1,903,365,476.61 for the reporting period[142]. - Major shareholders, including Legend Holdings and Sun Taoran, hold a combined 55.04% of the company's shares and have committed to a 36-month lock-up period post-IPO[156]. Innovation and Technology Development - The company has a strong focus on innovation, having filed over 40 patents and developed new products such as "cloud store" and "collection code" to empower small and micro merchants[50]. - The company has successfully transitioned to a comprehensive enterprise service provider, moving beyond payment services to include technology in finance, e-commerce, and information services[55]. - The company is increasing its investment in technology research and development, focusing on cloud construction, data empowerment, and a new generation payment system, aiming to enhance operational capabilities and user accessibility[118]. - The company achieved a 50% increase in overall resource utilization through the integration of cloud-native technologies and DevOps[65]. - The company has made substantial progress in AI integration, achieving a service replacement rate exceeding 60% through intelligent automation[67]. - The company has established a new payment core system and a SaaS platform for barcode payments, enhancing operational capabilities[66]. - The company has collaborated with leading firms to develop a big data platform, improving real-time data service capabilities[65]. User Engagement and Customer Base - User data indicates a growing trend in mobile payment adoption, with an increase in both B-end and C-end users engaging with the platform[7]. - The company served over 22 million small and micro merchants and online users, providing a range of services including payment, loans, and marketing[40]. - The number of merchants served exceeded 22 million, with 95% of them having an annual payment transaction scale below CNY 500,000[58]. - The company registered over 30 million users across its various apps and WeChat public accounts, with monthly active users exceeding 3 million[60]. - User data showed that the active user base reached 30 million by the end of 2019, an increase of 15% compared to the previous year[183]. Investment and Financial Strategy - The company has made strategic investments in various sectors, including banking, securities, and insurance, enhancing its ability to provide integrated services to small and micro merchants[50]. - The total investment amount for the reporting period was ¥647,737,198.52, representing a 104.71% increase compared to ¥316,423,804.88 in the previous year[95]. - The company made a significant equity investment of ¥112,000,000.00 in Jiangsu Qianmi Network Technology Co., holding a 32.79% stake[95]. - The company reported a net amount of ¥1,232,456,537.75 from its fundraising activities after deducting various fees[103]. - The company’s financing cash inflow reached ¥1,323,061,101.89, a remarkable increase of 1,403.48% due to funds raised from the IPO[87].