Lakala(SZ:300773)2023-04-27 16:00Market Overview - The third-party cross-border payment market in China reached nearly 1.3 trillion yuan in 2022, growing by 15% year-on-year[1]. - The scale of cross-border RMB settlement exceeded 42 trillion yuan in 2022, a 3.4 times increase compared to 2017[1]. - The domestic third-party payment market experienced a phase decline, with the total amount of card consumption decreasing by 4.28% to 130.15 trillion CNY in 2022[72]. - The company anticipates a return to normal growth in the third-party payment market as economic conditions improve[72]. Digital Payment Developments - The digital RMB pilot expanded to 17 provinces, with cumulative transactions reaching 360 million and a total amount of 100.04 billion yuan by August 31, 2022[14]. - The number of merchants supporting digital RMB exceeded 5.6 million, indicating strong growth in the digital payment market[14]. - The company actively participates in the digital renminbi pilot program, having formed strategic partnerships with the People's Bank of China[81]. - The company aims to enhance its core competitiveness by leveraging its first-mover advantage in the digital renminbi space[81]. Financial Performance - The company’s operating revenue for 2022 was ¥5,365,796,526.95, a decrease of 18.65% compared to ¥6,596,029,958.35 in 2021[50]. - The net profit attributable to shareholders for 2022 was -¥1,437,123,234.69, representing a decline of 232.75% from ¥1,082,584,146.29 in 2021[50]. - The net cash flow from operating activities was -¥356,876,381.66 in 2022, down 122.53% from ¥1,584,020,916.21 in 2021[50]. - The total assets at the end of 2022 amounted to ¥10,442,960,117.56, a decrease of 11.13% from ¥11,750,929,934.90 at the end of 2021[50]. - The net assets attributable to shareholders decreased by 30.07% to ¥3,348,539,216.23 at the end of 2022 from ¥4,788,195,994.37 at the end of 2021[50]. - The basic earnings per share for 2022 was -¥1.84, a decline of 233.33% compared to ¥1.38 in 2021[50]. - The company reported a significant increase in non-operating losses, including a loss from the disposal of non-current assets of -¥9,340,314.72 in 2022[52]. Operational Challenges - The company has indicated ongoing challenges in maintaining operational profitability, with all recent annual net profits being negative after deducting non-recurring gains and losses[50]. - The company experienced a substantial drop in the weighted average return on net assets, which was -35.31% in 2022 compared to 23.12% in 2021[50]. - The company reported a net profit of -1,316,450,848.83 CNY, with a significant decrease in other operating income and expenses amounting to -1,393,713,396.30 CNY[56]. Technological Advancements - The company is leveraging a hybrid cloud architecture and advanced technologies like AI and blockchain to offer digital solutions to small and micro businesses[6]. - The company has developed intelligent risk assessment and customer management products based on big data and AI technology, enhancing operational efficiency[69]. - The company’s digital retail SaaS platform integrates procurement and store management systems, creating a data closed loop from procurement to sales[70]. - The company’s AI-driven fraud risk monitoring system achieves over 95% coverage, maintaining a fraud loss rate of one in a million[77]. - The company completed the development of several key R&D projects, including a distributed database settlement system and a new generation POSP system, enhancing market competitiveness[121]. Revenue Streams - The payment business generated revenue of CNY 4,581,074,612.9, down 21.12% from CNY 5,807,381,012.6 in the previous year[109]. - The technology service business reported revenue of CNY 341,596,985.46, a decrease of 8.41% year-on-year[109]. - The "Payment+" industry digital solution revenue increased by 126% to CNY 70 million, driven by growth in cloud acquisition services and customer acquisition SaaS platform[105]. - The company’s digital marketing revenue from channel partners reached CNY 84 million, a 120% increase year-on-year[101]. Strategic Initiatives - The company has established partnerships with major international card organizations, enhancing its cross-border payment capabilities[77]. - The company launched the "Lakala Merchant Wallet App," which integrates various business management services for merchants, aiming to become a super traffic entry point[104]. - The company has established new subsidiaries, including the acquisition of Lakala Cloud Super Technology Co., Ltd., and the establishment of Hebei Cloud Super Intelligent Technology Co., Ltd.[119]. - The company is focusing on expanding its market presence through new product developments and technological advancements, including a one-stop payment open platform and mobile collection solutions[126]. Governance and Management - The company maintains clear and complete asset ownership, with no reliance on major shareholders or their controlled enterprises[172]. - The company’s board members and senior management are independent, with no overlapping roles or compensation from major shareholders[172]. - The company has a strong focus on internal auditing and governance, with key personnel involved in supervisory roles[188]. - The company has a commitment to gender representation, with female executives in significant roles[188]. - The total pre-tax remuneration for the company's directors, supervisors, and senior management in 2022 amounted to RMB 18.13 million[200].