Financial Data and Key Metrics Changes - The company reported a total revenue of RMB 62 billion for the first half of 2023, representing a year-on-year increase of 25.6% [23] - Adjusted EBITDA increased by 317% year-on-year to RMB 291 million, reflecting significant operational efficiency improvements [24][26] - Net loss narrowed by 83.8% year-on-year to RMB 25.9 million in the first half of 2023 [16] Business Line Data and Key Metrics Changes - Payment services experienced a 33.5% increase in Gross Transaction Value (GTV) and a 44.3% increase in revenue year-on-year [12] - The number of active payment service merchants grew to over 9 million, a record high [12] - In-store e-commerce GMV exceeded RMB 2.4 billion, with a gross profit margin increase to 76.9% from 57.1% year-on-year [15] Market Data and Key Metrics Changes - The local lifestyle service market in China is expected to reach RMB 35 trillion by 2025, with an online penetration rate of 30.8% [19] - The company has expanded its geographic coverage and established teams in markets such as Singapore and Indonesia [9] Company Strategy and Development Direction - The company is focusing on profitability while expanding its co-op model and traffic platform partnerships [19] - The strategy includes leveraging AI-driven tools for content generation and enhancing merchant services [18] - The company aims to solidify its competitive edge by supporting digital currency payments and exploring international markets [14] Management's Comments on Operating Environment and Future Outlook - Management noted a strong recovery in offline consumption, particularly in catering services, which is expected to drive GPV growth [32] - The competitive landscape is intensifying, but the company believes it can maintain strong growth due to its market position and innovative strategies [44] - Management expressed confidence in achieving monthly breakeven and sustainable growth in the in-store e-commerce segment [59] Other Important Information - The company has been recognized in S&P's 2023 Sustainability Yearbook, highlighting its commitment to ESG [21] - The co-op model has accounted for nearly half of the total GMV, demonstrating a successful asset-light strategy [48] Q&A Session Summary Question: Insights on summer holiday consumption changes and category performance - Management observed healthy month-over-month growth in offline consumption, particularly in catering services, benefiting overall GPV growth [32] Question: Competition in the in-store e-commerce business - Management highlighted the introduction of the co-op model as a strategy to expand market share in lower-tier cities, leveraging local resources [35] Question: Midterm growth rate of payment volume - Management expressed confidence in maintaining strong growth in the payment space, driven by offline consumption recovery and market penetration in lower-tier cities [44] Question: GMV contribution from the co-op model and take rate balance - Management indicated that the co-op model contributes close to 50% of total GMV, with expectations for take rates to stabilize in the coming years [50] Question: Recent developments in OSCP - Management reported smooth operations in the OSCP business, with ongoing development of acquiring, remittance, and online payment products [55] Question: Breakeven visibility in the second half of 2023 - Management is close to achieving monthly breakeven in the in-store e-commerce segment and anticipates positive trends with city licenses being issued [61]
YEAHKA(09923) - 2023 H1 - Earnings Call Transcript