Lianlian DigiTech (2598) H1 2025 earnings summary

Executive summary

• Achieved record first-half 2025 results with revenue of RMB 782.7 million, up 26.8% year-over-year, and TPV of RMB 2.1 trillion, up 32%, driven by strong digital payment and value-added services growth.

• Global payment TPV surged 94% year-over-year to RMB 198.5 billion, with global payment revenue up 27% to RMB 472.8 million.

• Net profit reached RMB 1,511.3 million, a turnaround from a loss last year, mainly due to a one-time gain from the LianTong equity disposal.

• All business segments—global payments, domestic payments, and value-added services—grew over 20% year-over-year.

• Strategic focus on globalization, compliance, technology innovation, and expansion into AI, Web3, and blockchain.

Financial highlights

• Global payment revenue: RMB 472.8 million (+27% YoY), gross profit: RMB 340 million, gross margin: 72.7%.

• Domestic payment revenue: RMB 211.2 million (+24.6% YoY), gross profit: RMB 42 million, gross margin: 19.9%.

• Value-added services revenue: RMB 89.6 million (+34.2% YoY), gross profit: RMB 17.78 million, gross margin: 19.8% (down 7pp YoY due to virtual card business mix).

• Net profit: RMB 1,511.3 million, including RMB 1,601.5 million gain from LianTong equity disposal and RMB 452.2 million dilution gain; operating profit (excluding non-operating items): RMB 63 million (+85% YoY).

• Cash and cash equivalents: RMB 1,560.7 million as of June 30, 2025; additional HKD 387.25 million raised in July via share placement.

Outlook and guidance

• Expect global payment TPV growth above 50% for the full year, with take rate stabilizing at 20+ basis points.

• Confident in maintaining 20%-25% annual revenue growth over the next three years, with gross margin above 50%.

• Plans to deepen global compliance, expand cross-border fund flow systems, and integrate advanced AI and blockchain technologies.

• Expense categories projected to rise RMB 50-60 million in 2H 2025, with revenue and gross margin seasonally higher in the second half.