Mar 28, 2023 | Business
Yeahka Limited (“Yeahka” or the “Company”, Stock Code: 9923.HK), a leading payment-based technology platform in China, is pleased to announce the annual results for the twelve months ended 31 December 2022 (the “year” or “2022”).
Financial Highlights
— Total revenue reached RMB3,418.0 million, representing a year-over-year (YoY) increase of 11.8%;
— Gross profit rose 26.6% YoY to RMB1,030.9 million, while gross profit margin increased 3.6 p.p. to 30.2%;
— Adjusted EBITDA amounted to RMB213.4 million, an increase of 73.0% YoY;
— The gross profit margin of in-store e-commerce services improved from 35.9% in 2021 to 67.3% in 2022;
— Net loss of in-store e-commerce services significantly narrowed to RMB51.9 million in the second half of 2022, a decrease of 67.4% from the first half of 2022.
Operational Highlights
Number of merchants and fee rate of one-stop payment services continued to grow:
— Total gross payment value (“GPV”) of payment services reached RMB2.23 trillion, up 5.1% YoY;
— The number of active payment service merchants reached a historical high of 8.1 million, an increase of 11.4% YoY;
— Fee rate increased to 12.3 basis points (bps) in 2022 from 10.7 bps in 2021, trending upward (first half of 2022: 12.0bps; second half of 2022: 12.7bps);
— The peak daily count of app-based payment transactions reached over 50 million, hitting a record high;
— Number of independent sales agents in nationwide channel network reached nearly 18,000;
— In January and February of 2023, the year-on-year growth rate of our GPV was 9.8% and 34.1%, respectively;
— Official guidance of GPV in 2023: RMB2.7 trillion ~ RMB2.9 trillion.
In-store e-commerce services grew rapidly and achieved significant results:
— Total gross merchandise value (“GMV”) reached over RMB3.3 billion, up 7.3 times YoY;
— Total number of orders reached nearly 37 million, increasing by 3.1 times YoY;
— Stock keep units (SKU) reached over 400,000, up 1.5 times YoY.
Mr. Luke Liu, Chairman of the Board and Chief Executive Officer, said, “2022 was an unusual year, but our business continued to grow at a healthy rate and delivered strong financial results thanks to our broad geographic coverage and the strong synergies within our commercial digitalized ecosystem. Notably, our payment business saw an increase of both GPV and fee rate, and our in-store e-commerce business contributed significant revenue and gross profit and while drastically reducing its loss on monthly basis. “
Mr. Ben Zhao, Board Secretary and General Manager of Corporate Development explained, “For payment, we continued to diversify ISO base, expanded our joint merchant acquiring services with banks, and launched various DC/EP pilot programs. Our payment platform is becoming increasingly inclusive and robust, and we have begun to upgrade our clientele strategy to include mid-to-large sized customers and vertical brand leaders. ”
“For in-store e-commerce, we grew GMV over 7 times, and have upgraded to multi-layer market strategies including self-operated sites and co-op sites that helped us to reduce our BD costs while expanding our geographic coverage. We optimized our organizational structure and developed technology-empowered services such as KOL-matching, live-streaming optimization and ads deployment for our co-op partners. Jointly, we have created a merchant alliance that shares merchant resources, and offers Yeahka’s digital empowerment tools and additional cross-selling solutions such as payments and SaaS offerings.”
Outlook
Mr. Luke Liu concluded, “Today, our scalable ecosystem has shown its ability to create a virtuous cycle among the payment, in-store e-commerce, and merchant solutions segments. The merchant base and consumer insights we accumulated over the years directly led to the prosperity of our merchant solutions and in-store e-commerce business, and they in turn enhanced loyalty and stickiness in our payment business, sometimes even bringing new merchants to the payment business. Because of our strategic direction, we have a healthy and sustainable business that will endure for a long time. In 2023, we will continue to focus on creating value for our merchants and providing a wide range of local lifestyle experiences to consumers, and create sustainable value for shareholders, employees, and society at large.”
About YEAHKA LIMITED (Stock Code: 9923.HK)
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.
Investor and media enquiry:
Yeahka Limited
IR team
Email: ir@yeahka.com
Topic: Press release summary
Feb 4, 2023 | Business
In 2022, Yeahka Limited (09923.HK) participated for the first time in the assessments for the S&P Global ESG Scores and Hang Seng Corporate Sustainability Indexes, earning impressive scores of 48 and A- (54.02), respectively. Yeahka’s S&P Global ESG score is equal to Tencent’s and higher than those of other internet companies such as Weimob, Meituan and Alibaba. Meanwhile, Yeahka’s Hang Seng ESG score is higher than both the industry average (50) and the average score of all Hong Kong listed companies that participated in the assessment (52).
Initiated by S&P Global in 1999, the S&P Global ESG Scores is one of the most influential and credible corporate sustainability assessments worldwide, with 11,000 companies invited to participate in 2022. The Hang Seng Corporate Sustainability Indexes is also a well-recognized ESG rating system among investment institutions, whose results are widely used in investment decisions.
As sustainable development becomes the new consensus, ESG ratings have become an important indicator used by the capital market to assess a company’s investment value. A high ESG rating implies more efficient management as well as better alignment with stakeholder expectations, indicating more favorable attention from the capital market.
With outstanding performance in corporate governance, environmental protection, consumer issues and social responsibility, Yeahka received impressive ratings in its first year participating in the assessments. In 2022, Yeahka established an ESG Committee, further strengthened its ESG governance structure and fully upgraded ESG governance authority and responsibilities within the company, and also conducted many compliance trainings internally.
In terms of environmental protection, Yeahka invested millions of RMB under the supervision and leadership of the ESG Committee to adopt green server rooms with low energy consumption, reducing its Power Usage Effectiveness (PUE) value to 1.56 and resulting in expected annual electricity savings of 798 MWh.
On the consumer side, in line with its core belief in establishing a commercial digitalized ecosystem, Yeahka is committed to expanding in-store e-commerce services that provide consumers with more convenient, favorable and timely lifestyle services. At the same time, the Company continues to optimize the product experience and enhance customer satisfaction through technology innovation.
Regarding social responsibility, Yeahka has strengthened its transaction risk control, making over 10 billion risk control decisions and conducting over 3 million risk control transactions in 2021. Yeahka continued to carry out the “Power of Small Shops” program, providing a total of RMB 22 million in financial support for small and medium-sized merchants in conjunction with third-party institutions.
Yeahka said: “We will continue to enhance ESG governance, integrating the concept of ESG development into our overall development strategy and embedding social responsibility concepts into every aspect of our operations. We are committed to helping our merchants and consumers live better through continuous technological innovation, as well as to creating long-term sustainable investment value through continuous sustainable development efforts.”
S&P Global ESG scores can be found on the official website:
https://www.spglobal.com/esg/scores/results?cid=4279124
About YEAHKA LIMITED (Stock Code: 9923.HK)
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.
Topic: Press release summary
Sep 7, 2022 | Business
Yeahka Limited (“Yeahka” or the “Company”, Stock Code: 9923), a leading payment-based technology platform in China, increased by 4.45% and closed at HK$17.86 per share. Its share price climbed by about 30% in the past five trading days.
Yeahka recently announced its FY2022 interim results. For the six months ended 30 June 2022, the Company’s revenue was RMB1,642 million, representing a year-over-year increase of 17.07%. Gross profit rose 52.05% year-over-year to RMB529 million. The company’s gross payment value (“GPV”) reached RMB1.06 trillion, up 7.4% year-over-year. The gross merchandise value (“GMV”) of its in-store e-commerce services and the number of paying consumers was nearly RMB1.4 billion and 9.7 million, respectively, representing a year-over-year increase of 1,789.7% and 578.9%, respectively. The number of monthly active users (“MAU”) exceeded 19.0 million during the reporting period.
At the same time, Yeahka also disclosed the news of its share repurchase, stating that pursuant to a resolution passed by the shareholders of the Company at the annual general meeting held on June 24, 2022, the Directors were granted a general unconditional mandate to repurchase up to 45.1903 million shares. On September 5, Yeahka spent HK$4.955 million on the repurchase of 292,000 shares at a repurchase price of HK$16.74-17.08 per share. This is a relatively rare move among small and medium-sized technology companies and shows that the management is extremely confident in the Company’s future performance growth.
In view of its outstanding interim results and the management’s expectations for the Company’s future growth, Nomura and CLSA both upgraded their ratings to “Buy”. Nomura published a research report stating that its interim performance was solid, with revenue increasing by 17% year-over-year, mainly driven by strong growth in its payment business and in-store business. As of the market close today, more than a dozen institutions, including CICC, Guosheng Securities, GF Securities, and China Securities International, have all given the Company a “Buy” rating, which further demonstrates the investment value of Yeahka.
About YEAHKA LIMITED (Stock Code: 9923.HK)
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.
Topic: Press release summary
Aug 31, 2022 | Business
Yeahka Limited (“Yeahka” or the “Company”, Stock Code: 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”).
Financial Highlights
— 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.
Operational Highlights
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.”
Outlook
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 (Stock Code: 9923.HK)
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.
Investor and media enquiry:
Yeahka Limited
IR team
Email: ir@yeahka.com
Topic: Press release summary
Mar 30, 2022 | Business
Industrial Securities initiated coverage on Yeahka Limited (“Yeahka” or the “Company”) (09923.HK) with an “Overweight” rating. Since 2021, Yeahka has been covered actively by 13 leading brokerages (by alphabetic order), including China Renaissance, China Securities, CICC, CITI, CLSA, Daiwa, Essence Securities, Guosheng Securities, Guotai Junan Securities, Huatai Securities, Industrial Securities, Jefferies, and Zhongtai Securities.
Yeahka’s sustainable, solid growth is the key to the attention from these brokerages. Recently, Yeahka stated that it will announce its audited consolidated results for the year ended 31 December, 2021.The Company’s management will host an earnings conference call on 31 March, 2022 at 8:00 PM Beijing Time (8:00 AM U.S. Eastern Time). Dial-in details for the earnings conference call are as follows:
Mainland China: 400 820 6895
Hong Kong, China: +852 3018 8307
U.S.: 1833 239 5575 (Toll Free) / +1 332 208 9458
U.K.: 0800 279 8053 (Toll Free) / +44 203 692 8123
International: +65 6780 1201
Passcode: 3779473
About YEAHKA LIMITED (Stock Code: 9923.HK)
Yeahka Limited is a leading payment-based technology platform. Yeahka’s vision is to build an independent and scalable commercial digitalized ecosystem. Yeahka seamlessly connects merchants and consumers through payment services of different kinds, including QR code and traditional bank card payment. In addition, Yeahka provides merchant solutions including SaaS digital solutions, precision marketing services, and fintech services to help merchants better manage and drive business growth. On consumer front, Yeahka officially launched in-store e-commerce services in 2021, providing consumers with one-stop local lifestyle services of great value, and a more enjoyable lifestyle.
Topic: Press release summary
Sectors: Cards & Payments, Cloud & Enterprise
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