Yeahka (9923) H1 2025 earnings summary

Executive summary

• Achieved robust overseas growth, with overseas GPV exceeding RMB1.5 billion in H1 2025, surpassing 2024's full-year total, and secured key payment licenses in the US and Japan, expanding international payment services and partnerships, notably with HSBC.

• AI-driven innovations and digital human video tools revolutionized marketing, driving significant cost reductions, efficiency gains, and 40% month-on-month growth in AI-related transaction volume, with AI-generated content accounting for 20% of video production.

• Revenue rose 4.0% year-over-year to RMB1,641.5 million for H1 2025, with gross profit up 27.6% to RMB383.0 million and profit for the period up 27.0% to RMB41.4 million.

• Strategic upgrades in in-store e-commerce and merchant solutions improved profitability and operational efficiency, with in-store e-commerce achieving consecutive monthly profitability in Q2.

• International operations delivered higher fee rates and margins, with overseas payment fee rates at 67.0 bps and gross margin over 50%.

Financial highlights

• Revenue for H1 2025: RMB1,641.5 million, up 4.0% year-over-year, mainly from one-stop payment services.

• Gross profit: RMB383.0 million, up 27.6% year-over-year; gross profit margin increased from 19.0% to 23.3%.

• Net profit grew 27.0% year-over-year to RMB41.4 million; net profit margin rose from 2.1% to 2.5%.

• Adjusted EBITDA increased 6.2% to RMB173.3 million.

• Finance costs decreased 52.7% year-over-year to RMB19.8 million.

Outlook and guidance

• Focus on international expansion and product innovation, leveraging AI, blockchain, and digital currencies, with ongoing investment in global market presence and R&D.

• Overseas business expected to deliver multiples of growth, contributing a larger share of gross profit, supported by structural advantages in fee rates, margins, and transaction values.

• One-stop payment services to remain the foundation, with ongoing optimization of merchant solutions and in-store e-commerce.