PR88704

HONG KONG, March 26, 2021 /PRNewswire=KYODO JBN/ --

- Profit of the Year Surged 420.6% to RMB440.8 Million, Driven by the Rapid

Growth of Technology-enabled Business Services -

Yeahka Limited ("Yeahka" or the "Company", Stock Code: 9923), a leading

payment-based technology platform in China, is pleased to announce the audited

consolidated results for the year ended December 31, 2020 (the "Reporting

Period").

Mr. Luke Liu, Chairman of the Board, Chief Executive Officer and Executive

Director of the Company, said, "I am pleased to present Yeahk's first annual

results as a public company. Over the past year, we were able to maintain solid

growth, and create value for our shareholders as well as merchants and

consumers. As a leading payment-based technology platform in China, our

business philosophy is 'Start From Payment, Go Beyond Payment' and we have

progressively established a sustainable commercial digitalized ecosystem by

leveraging our app-based payment services as the core. Leveraging the resources

within our ecosystem, including traffic, data and R&D, we expanded our

innovation business by launching technology-enabled merchant SaaS products,

precision marketing services and fintech services, which have in turn helped to

drive the rapid growth of various businesses within our company."

Mr. Liu continued, "As we continue to innovatively promote digitalized upgrades

and integration across industries, we are creating greater value for both

merchants and consumers. Looking ahead, the continued development of the

consumer and industrial internet will accelerate the digital transformation of

Chinese enterprises, and the landscape of business services will change

significantly during this process. For both our merchant and consumer business

segments, we will continue to utilize the traffic and data captured by the vast

number of payment transactions that we process to explore new opportunities in

various business segments, and fully commercialize our growing ecosystem."

Financial Highlights

During the Reporting Period, the Company's total revenue reached RMB 2,292.9

million, representing a year-on-year increase of 1.5%, mainly driven by the

growth of the technology-enabled business. Revenue contribution from

technology-enabled business services increased rapidly to 20.2% from 7.8% in

2019. Within this segment:

- Revenue from marketing services reached RMB 364.9 million, representing a

year-on-year increase of 234.1% and 15.9% of the total revenue.

- Revenue from merchant SaaS products reached RMB 29.9 million, representing a

year-on-year increase of 99.5% and 1.3% of the total revenue.

- Revenue from fintech services reached RMB 68.7 million, representing a

year-on-year increase of 30.2% and 3.0% of the total revenue.

Gross profit increased 14.9% year-on-year to RMB 743.7 million. Gross profit

margin increased to 32.4% from 28.7% in 2019.

Net profit increased 420.6% year-on-year to RMB 440.8 million. Adjusted net

profit increased 19.8% year-on-year to RMB 360.6 million. Earnings per share

was RMB 1.45.

Business Highlights

Despite the impact from the pandemic, the total number of app-based payment

transactions saw a 119.1% increase in the second half of 2020 compared with the

first half. As of December 31, 2020, the number of active payment service

customers increased by 4.5% year-on-year to 5.5 million, and the number of

payment service customers increased by 75.5% year-on-year to 645.3 million.

The Company continued to expand and diversify its distribution channels. As of

the end of 2020, the Company had collaborated with more than 10,000 independent

sales agents and sales partners. Among them, the Company proactively cooperated

with nearly 900 merchant SaaS service providers from offline scenarios spanning

catering, retail, parking, refueling, ticketing, bicycle sharing, charger

sharing, internet cafés, tourist attractions and vending machines. Fushi

Technology, the Company's one-stop digitalized platform for merchants,

accumulated more than 320,000 merchants. The daily active users of its merchant

App had exceeded 120,000. The number of peak daily payment transactions of grew

over 4 times year-on-year to over 7.3 million.

During the Reporting Period, the Company's technology-enabled business services

achieved significant breakthroughs. The number of customers from

technology-enabled business services hit 982,000, representing an increase of

128.2% year-on-year. Specifically, among the Company's merchant SaaS products,

Juhuisaosao, the Company's payment aggregation tool, served over 63,000

merchants in 2020 and recorded a daily peak sales volume of 1,191 units. Smart

Shopkeeper, an integrated SaaS management platform for restaurants, maintained

solid growth, as its total number of merchants increased by 201.1% year-on-year

and it ranked at the top of the charts in terms of sales volume and review

ratings on various Chinese mainstream e-commerce platforms. On the precision

marketing front, the total exposures generated by the Company's precision

advertising platform were more than 23.9 times greater than 2019. For the

Fintech services, the total number of transactions that the Company facilitated

was approximately RMB568.5 million, a 15,2% growth year-on-year, and the

weighted average tenor was 10.39 months. As of December 31, 2020, the M1+

delinquency rate by vintage (over 30 days overdue) has remained stable at

around 1.05% since the second quarter of the year.

Business Review

Payment Services

The Company regards payment services as an important portal to attract traffic.

During 2020, the Company continued to steadily expand its payment business and

remained focused on building out its app-based payment services. The Company

continued to diversify payment channels to rapidly expand its merchant base.

Meanwhile, it also actively optimized its payment-based technology platform,

further integrated its internal resources, substantially increased R&D

investments and continuously refined the management of its payment business

operations.

Payment services continued to expand during the Reporting Period. The  number

of app-based payment transactions jumped 119.1% , while GPV increased by 28.5%

in the second half of 2020 as compared to that in the first half of 2020. . The

peak daily average number of QR code payment transactions exceeded 30 million.

Despite the pandemic, the number of active payment service customers increased

by 4.5% year-on-year to 5.5 million, and the number of payment service

customers increased by 75.5% year-on-year to 650.0 million.

The Company continued to collaborate with premium industry partners. As of

December 31, 2020, the Company had collaborated with more than 10,000

independent sales agents and sales partners. The Company also proactively

cooperated with almost 900 merchant SaaS service providers that offer services

in a wide range of offline-scenarios, including across food and beverage,

retail and parking, by providing one-stop payment services to the merchants

they serve. By leveraging the abundant merchant resources and the nationwide

branch network of joint stock banks, urban commercial banks and rural

commercial banks, the Company co-developed a merchant payment service system

and jointly provided bank card acquiring services with these banks, and had

established a merchant resources sharing system with almost 50 banks,

efficiently expanding the Company's payment service business. In terms of

emerging payment methods, the Company set up dedicated teams during the

Reporting Period to support development in digital currencies.

Merchant SaaS Product Portfolio

As merchants continued to digitalized their operations, the Company developed

and provided a comprehensive merchant SaaS product portfolio, allowing

merchants to reduce their operational costs and acquire customers more easily.

The Company's SaaS products and services are primarily accessible to merchants

through online channels such as WeChat mini programs and merchant applications,

as well as other offline touch-points. During the Reporting Period, the Company

invested in Fushi Technology (Shenzhen) Co., Ltd. Fushi's one-stop merchant

digitalized platform, Haoshengyi, is an important part of the Company's

ecosystem that helps the Company expand and serve its merchant base. As of

December 31, 2020, Fushi had expanded its coverage to 25 cities nationwide and

accumulated more than 320,000 merchants. The number of its peak daily payment

transactions exceeded 7.3 million, which was more than four times higher than

2019, and the daily active users ("DAU") of its merchant app exceeded 120,000

as of December 31, 2020. Furthermore, the latest data shows that, as of March

22, 2021, its peak daily payment transaction counts rose further to 8.1

million.

For the retail industry, in the first half of 2020, the Company launched

Juhuisaosao, a proprietary QR code payment SaaS with a voice reminder function.

Leveraging the big data capabilities of the Company's ecosystem, Juhuisaosao

can provide merchants with multi-dimensional transaction reports and analysis,

cash flow analysis and forecasts via mobile devices and WeChat mini programs

based on their needs, thereby allowing merchants to gain additional insights

into their business performance and facilitating business decisions. Since its

launch, Juhuisaosao has been well received by merchants as it effectively

reduce delays and omissions during rush hours. In the first half of 2020, it

had served over 11,000 merchants, which further increased significantly by

439.1% to 63,250 merchants in the second half of the year. During the Reporting

Period, Juhuisaosao recorded daily peak sales volume of 1,191 units. In 2020,

the Company also launched Smart Store, a lightweight SaaS product that offers

merchants a one-stop platform to manage store procurement, sales and inventory.

For the catering industry, the Company launched its first one-stop SaaS

platform Smart Shopkeeper in China in 2015. Since then, Yeahka has developed

two brands, namely Smart Shopkeeper and Milican, that target different segments

of the catering industry and different types of merchants to offer better

solutions. In particular, Smart Shopkeeper targets catering merchants with

single stores, while Milican targets catering franchises with multiple stores.

As of December 31, 2020, the total number of merchants served by Smart

Shopkeeper increased by 201.1% year-on-year. The App ranked at the top of

various Chinese mainstream e-commerce platforms in terms of sales volume and

review ratings. In order to help merchants manage decentralized native traffic,

in March 2020, the Company launched Yuehuiquan, a coupon aggregation and

distribution platform built on blockchain technology. During the Reporting

Period, the platform has served over 56 thousand merchants and expanded to

become a platform that manages millions of coupons. In October 2020, Yuehuiquan

was officially titled and given a recordation number in the domestic

blockchain-based information service by the Cyberspace Administration of the

PRC. In January 2021, the Group launched Yuehuiquan Pro, a community-based

fully-automated hosting membership management system, with the aim of assisting

more merchants build customized membership programs from scratch and satisfying

merchant's' increasing needs for customization.

In 2020, the Company made a number of strategic investments through RYK Capital

Partners Limited, an investment platform jointly established by the Company and

Recruit Holdings Co., Ltd., a renowned Japanese internet company, including

Shenzhen Zhibaiwei Technology Development Co., Ltd., an O2O mobile internet

SaaS provider focusing on retail and F&B POS-ERP services, and Jiangsu Ruipos

Data Technology Co., Ltd., a SaaS service provider focusing on domestic

catering chains, including tea and beverages, fast food and lu wei (braised

snacks) restaurants (operated under the Shuaishouzhanggui brand).

Precision Marketing Services

The Company is dedicated to building a precision digital advertising platform

which is based on diversified data traffic. Using proprietary payment data,

integrated from a wide range of case scenarios, Yeahka maximizes value for its

customers by intelligently matching target users with advertisers and merchants

through its precision marketing services. In recent years, the Company has

established a proprietary data management platform (DMP)  and used it as the

core to launch a precision advertising marketing platform "Juliang". Yeahka

leveraged its growing artificial intelligence ("AI") and machine learning

capabilities to intelligently match target users, refining and labelling data

in Juliang, thus precisely matching offline traffic owners' demands for

monetization with advertisers' demand for advertisement placement results.

In November and December 2020, the Company reached an agreement to acquire an

85% equity interest in Beijing Chuangxinzhong Technology Co., Ltd., a leading

content performance-based marketing service provider in China. The acquisition

will not only allow the Company to quickly expand its advertising inventory,

but will also further enhance its capabilities to collect data related to user

behaviors and preferences. Beijing Chuangxinzhong's online media network will

quickly bolster the Company's consumer profiles and data based on their

preferences, strengthen traffic labels on Juliang, as well as improve ad

placement efficiency.

Fintech Services

Yeahka provides fintech services, including loan facilitation services,

entrusted loan services, and small-sized loan and insurance referral services

to merchants. During the Reporting Period, the total number of transactions

that the Company facilitated was approximately RMB568.5 million, representing

an increase of 15.2% from 2019, with a weighted average tenure of 10.39 months.

As of December 31, 2020, the M1+ delinquency rate by vintage (over 30 days

overdue) had remained stable at around 1.05% since the second quarter of the

year, demonstrating the effectiveness of the Company's credit risk management

capabilities across various economic cycles.

Outlook

Looking ahead, the continued development of the consumer and industrial

internet will facilitate the ongoing digital transformation of Chinese

enterprises. The landscape of business services will change significantly

during this process. For both its merchant and consumer business segments, the

Company will continue to utilize the traffic and data captured through the vast

number of payment transactions it processes to explore and capitalize on

opportunities in various business segments. The Company will further leverage

its ecosystem to support digital transformation and commercialize services

around it.

For technology-enabled business services, the Company will continue to enhance

its ecosystem, which includes merchant SaaS products, precision marketing

services and fintech services. In addition, the Company will accelerate its

embrace of market changes, stay at the forefront of technological advancements,

and proactively promote emerging payment methods such as digital currencies.

The Company will continue to expand its business boundaries, strive to enable

businesses to operate and acquire customers through decentralization, and

enhance consumer lifestyles and merchant capabilities by providing greater

convenience.

About YEAHKA LIMITED (9923.HK)

Yeahka Limited is a leading payment-based technology platform in China

providing payment and technology-enabled business services to merchants and

consumers. The Company was listed on The Stock Exchange of Hong Kong Limited

(the "Stock Exchange") in June 2020 under the stock code "09923.HK". The

Company's value proposition is to create a commercial digitalized ecosystem

that enables seamless, convenient and reliable payment transactions between

merchants and consumers and further offer a rich variety of technology-enabled

business services, including (i) merchant SaaS products, which help customers

improve their operational efficiency, (ii) precision marketing services,

allowing customers to effectively reach their target markets, and (iii) fintech

services, which cater to customers' diverse financial needs.

Please refer to the link below for the audited consolidated results of Yeahka

Limited and its subsidiaries (collectively, the "Group") for the year ended

December 31, 2020 together with the comparative figures for the year ended

December 31, 2019.

https://yk-webapp-static.leshuazf.com/20210325/1616667943732474.pdf  

source: Yeahka Limited