Lakala(SZ:300773)2022-12-04 09:42Group 1: Company Overview and Development Stages - Lakala was established in 2005 and has gone through four development stages: 1.0 (2005-2011) focused on credit card repayments and convenience payments; 2.0 (2011-2015) marked by obtaining the first batch of payment licenses and entering the acquiring market; 3.0 (2015-2018) embracing mobile internet and launching smart POS terminals; and 4.0 (post-2019) focusing on empowering small and micro merchants [2][3][4]. Group 2: Market Position and Competition - Lakala's market share in the acquiring business, including bank acquiring, is approximately 4%, while its share in the third-party payment industry is about 8% [3][4]. - The competitive landscape includes major players like UnionPay Business, Lakala, and Tonglian, with a low industry concentration expected to lead to future consolidation [3][4]. Group 3: Business Performance and Growth - In 2019, Lakala's QR code payment transaction volume grew by over 100% year-on-year, with transaction counts and amounts leading the industry [4][5]. - The company serves over 21 million merchants with an annual transaction volume nearing 4 trillion, indicating strong cash flow and profit margins [4][5]. Group 4: Strategic Goals and Future Outlook - To achieve annual growth of 20-30%, Lakala plans to focus on product innovation and expanding its merchant base, prioritizing the structure of merchants and transaction volumes over sheer numbers [5][6]. - The company emphasizes maintaining merchant loyalty through brand reputation, product quality, and service [5][6]. Group 5: Impact of COVID-19 - The pandemic has had a limited impact on Lakala's main business, as it primarily provides online and offline payment technology and services to small and micro merchants [6]. - The demand for online services from merchants is expected to increase, particularly in sectors like catering, hotels, retail, and tourism, which have been more affected by the pandemic [6].