Yeahka (9923) H1 2024 earnings summary

Executive summary

• Maintained market leadership in one-stop payment services, expanded into underserved and international markets, and leveraged AI for revenue generation, cost optimization, and new product offerings.

• Non-payment services' share of revenue and profit increased, with merchant solutions and in-store e-commerce driving higher margins and efficiency.

• Achieved significant overseas growth, especially in Singapore and Southeast Asia, with GPV up over 50% and major global brands onboarded.

• ESG efforts recognized internationally, including top industry ranking in S&P Global's 2024 Sustainability Yearbook (China Edition).

• Strategic focus on AI, international expansion, and higher-quality customer segments enhanced operational efficiency and business resilience.

Financial highlights

• Revenue for H1 2024 was RMB1,577.7 million, down 23.5% year-over-year, mainly due to macroeconomic volatility and a high 2023 base.

• Gross profit margin improved to 19.0% from 17.7% year-over-year, driven by higher-margin non-payment businesses.

• Net profit reached RMB32.6 million in H1 2024, up 7.4% year-over-year, with profit margin rising to 2.1% from 1.5%.

• Non-payment businesses contributed 14.6% of total revenue and 69.1% of gross profit in H1 2024.

• Selling and administrative expenses decreased by 11.2% year-over-year due to AI-driven efficiency gains.

Outlook and guidance

• Focus on expanding high-quality, profitable customer segments and international markets, especially in Asia-Pacific and Southeast Asia.

• Expectation of sustainable, higher-quality growth in non-payment business lines and visible profitability in in-store e-commerce by H2 2024.

• Continued investment in AI and digitalization to drive operational efficiency and business model resilience.

• Confident in maintaining fee rates at low teens and see industry consolidation favoring full-suite service providers.

• Expect improved revenue and gross profit in one-stop payment services as non-recurring adjustments end in H2 2024.