Lakala(SZ:300773)2022-12-04 09:40Group 1: Impact of COVID-19 on Business - The COVID-19 pandemic has a limited short-term impact on the company's main business, which focuses on providing online and offline payment technology and financial services to small and micro businesses [2][3] - The demand for online services from merchants is expected to increase during the pandemic, although sectors like dining, hotels, retail, and tourism will be significantly affected [3] - The transaction volume from affected sectors is relatively small, and a slight decline in transaction volume is anticipated in Q1, with recovery expected post-pandemic [3] Group 2: Industry Growth and Company Positioning - The growth of the third-party payment industry is assured, driven by economic growth, rising consumption levels, and technological innovations [3] - The company positions itself as a comprehensive service provider for small and micro businesses, integrating payment technology with financial, e-commerce, and information technology services [3][4] - As of 2018, the company's market share was approximately 4%, while its share in the third-party payment industry was about 8% [3] Group 3: Competitive Advantages and Market Strategy - The company's competitive advantages include a strong management and technical team, strategic layout, user scale, industry position, technological strength, product innovation, and a well-established branch network [3] - The company collaborates with major players like WeChat and Alipay, positioning itself on the merchant side of the payment chain [4] - The company has seen rapid growth in QR code payment transactions, leading the industry in both transaction volume and amount [4] Group 4: Financial Performance and Future Outlook - As of Q3 2019, the overall gross margin of the company was 46%, with payment business gross margin at 42.6% and merchant operation business gross margin at 70% [5] - The company operates with a light asset model, has strong cash flow, and no interest-bearing debt, focusing on sustainable development and investor returns [5]