- Revenue up 17.1%, Gross Margin up 7.4ppt
- In-store E-commerce MAU Surpasses 19 million
Yeahka Limited (Yeahka or the Company, HKG: 9923), a leading payment-based technology platform in China, is pleased to announce the interim results for the six months ended 30 June 2022 (the period or 1H 2022).
- During the period, the Company’s total revenue reached RMB1,641.8 million, representing a year-over-year (YoY) increase of 17.1%.
- Gross profit during the period rose 52.1% YoY to RMB529.3 million, gross margin increased from 24.8% to 32.2%, gross profit contribution from non-payment business was 50%.
- Adjusted EBITDA amounted to RMB69.7million, increased by 39.7% compared with the second half of 2021.
- Gross profit of in-store e-commerce services reached RMB92.3million, gross margin reached 57.1%, increased by 76.9% and 6.6 percentage points respectively, compared with the second half of 2021.
Number of users and scale of one-stop payment services continued to grow:
- Total gross payment value (“GPV”) of the payment services reached RMB1.06 trillion, up 7.4% YoY;
- The number of active payment service merchants increased 24.1% YoY to a historical high of 7.6 million;
- The number of cities covered exceeded 300 nationwide;
- The number of partnership banks increased to nearly 100; the number of independent sales agents in our network reached nearly 16,000; and the number of application programming interface (API) partners on our cloud payment platform exceeded 3,000.
In-store e-commerce services grew rapidly and achieved significant results:
- Total gross merchandise value (“GMV”) was nearly RMB1.4 billion, up 17.9 times YoY, and 3.2 times compared with the second half of 2021;
- The number of monthly active users (“MAU”) reached 19.0 million;
- The number of paying consumers reached nearly 9.7 million, increasing by 578.9% YoY and 136.0% from the second half of 2021;
- Stock keep units (SKU) reached over 205,300, up 1,570.2% YoY and 39.6% from the second half of 2021;
- Number of regional sites exceeded 300.
Steady growth for merchant solutions:
- Number of active merchant solutions merchants increased by 25.8% YoY to nearly 1.5 million.
Mr. Luke Liu, Chairman of the Board, Chief Executive Officer and Executive Director of the Company, said, “The resurgence of the COVID-19 pandemic has made 1H 2022 challenging by slowing down retail sales growth of consumer goods, and significantly disrupting offline commerce. But for us, because of our broad coverage across over 300 cities and low geographic concentration, we continued to make progress in scaling up and monetizing our commercial digitalized ecosystem. We have been proactively adapting to the new norm in China’s internet industry, by being more cost cautious and profitability-driven, which has been demonstrated by our financial performance in the first half – total revenue and gross margin both showed encouraging improvement year over year(“YoY”), particularly with gross profit increasing 52.1% to RMB529.3 million, gross margin improving by 7.4 percentage points on a YoY basis, and adjusted EBITDA reaching RMB69.7 million during the period, increasing by 39.7% compared with the second half of 2021.
“We firmly believe that fast-tracking development in the local lifestyle market brings significant real and quantifiable value to consumers and merchants, because consumers can find intriguing experiences and receive actual discount by using our services, and merchants can boost their revenue and name recognition through our concentrated traffic during a short timeframe. The in-store e-commerce business has experienced strong growth in GMV, with MAU exceeding 19.0 million during 1H 2022, coupled with our effective operations optimization, we have significantly narrowed its loss. Going forward, we will continue to focus on creating user value, driving technology innovation, and taking more social responsibility.
“Also, with confidence in Yeahka’s fundamentals and future strategies, we have purchased a total of 25,533,600 shares of the Company through the restricted share unit scheme, accounting for 5.65% of total shares outstanding. Moreover, on 30 August 2022, we announced an additional US$70 million share purchase scheme, reflecting our continued confidence in Yeahka’s growth potential.”
On one-stop payment services, Yeahka will continue to strengthen its sales network, particularly Open-API SaaS partnerships and bank partnerships. Yeahka will also look to embrace new payment standards such as DC/EP. On in-store e-commerce services, Yeahka will put utmost emphasis on improving user experience and focus on narrowing loss, as it is constantly optimizing its cost structure and operating efficiencies. Based on the strong results in the past few months, Yeahka is confident that it will continue to realize tremendous growth in GMV and increase market share. On merchant solutions, leveraging its strong payment merchant network, Yeahka will continue to empower merchants on optimizing digitalized operations and enhancing efficiency. Yeahka has raised US$70 million in July 2022 to strengthen its offshore balance sheet, and will explore overseas opportunities as cross-border travel gradually become available in China.
Overall, empowering the real economy and creating values for merchants and consumers has always been Yeahka’s core values since its inception in 2011. As Yeahka enters the second half of 2022, the Company may still face challenges from pandemic-driven weakened consumption environment. However, as it has demonstrated with its operating results in 1H 2022, Yeahka will continue to navigate through difficult times, capitalize on the data and traffic in its ecosystem and achieve healthy growth. Yeahka will continue to invest in research and development, enrich its product mix, enhance user experience, increase diversified revenue streams, extend business boundaries, and create sustainable value for shareholders, employees, and society.
About YEAHKA LIMITED (HKG: 9923)
Yeahka is a leading payment-based technology platform dedicated to creating value for merchants and consumers. Our goal is to build an independent and scalable commercial digitalized ecosystem to enable seamless, convenient, and reliable payment services to merchants and consumers, and to further expand into serving merchants and consumers with our diversified product portfolio, which now includes (i) in-store e-commerce services, providing consumers with local lifestyle services of great value, and (ii) merchant solutions, enabling merchants to better manage and drive business growth.
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