Lianlian DigiTech (2598) H1 2024 earnings summary

Executive summary

• Achieved total revenue of RMB617.4 million for the six months ended June 30, 2024, up 40.1% year-over-year, driven by strong growth in digital payment and value-added services.

• Digital payment services TPV reached RMB1.57 trillion, up 120.1% year-over-year; global payment TPV at RMB102.3 billion (+35.4%), domestic payment TPV at RMB1.47 trillion (+130.1%).

• Net loss narrowed to RMB350.0 million, an 8.5% improvement year-over-year; adjusted EBITDA loss reduced by 39.9% to RMB188.4 million.

• Gross profit increased 20.3% to RMB324.9 million, but gross margin declined to 52.6% (down 8.7 percentage points) due to lower-margin domestic payment expansion.

Financial highlights

• Digital payment services revenue rose 41.4% to RMB541.9 million; global payment revenue up 21.9% to RMB372.4 million, domestic payment revenue up 117.8% to RMB169.5 million.

• Value-added services revenue grew 41.2% to RMB66.8 million, mainly from digital marketing.

• Cost of sales increased 71.6% to RMB292.5 million, reflecting higher TPV and expansion costs.

• Basic and diluted loss per share were RMB0.34, improved from RMB0.38 year-over-year.

• Cash and cash equivalents: RMB575.6 million as of June 30, 2024.

Outlook and guidance

• Plans to continue focusing on innovation, global expansion, and compliance, supporting Chinese enterprises' international growth.

• Expects continued growth in TPV and revenue, leveraging global license coverage and compliance framework.