Yeahka (9923) H1 2026 earnings summary

Executive summary

• Gross profit margin rose to 28.8% (up 5.5 percentage points year-over-year), with net profit at RMB 41.9 million, marking the best half-year profit margin since 2023 and four consecutive years of first-half profit growth.

• Revenue declined 23.9% year-over-year to RMB 1,249 million, mainly due to a 23% drop in domestic GPV, but overseas and Hong Kong/Macau businesses saw accelerated growth, with overseas GPV up 293.8% to RMB 6 billion.

• Overseas and in-store e-commerce segments delivered strong profit growth, with overseas gross profit margin at 43.5% and in-store e-commerce GMV up over 75% year-over-year.

• AI integration across business lines enhanced operational efficiency, product development, and profitability, with AI-driven value-added services and video business gross margin over 94%.

• Interim dividend of HKD 0.03 per share (HKD 13.8 million) declared for the first time since listing, reflecting a focus on sustainable growth and shareholder returns.

Financial highlights

• Group revenue declined 23.9% year-over-year to RMB 1,249 million, while gross profit reached RMB 360 million with margin improving to 28.8% from 23.3% year-over-year.

• Net profit for the period was RMB 41.9 million, up 1.3% year-over-year, with net profit margin at 3.4%.

• Core EBITDA was RMB 138.5 million, margin at 11.1%.

• Administrative and R&D expenses decreased by 8.1% year-over-year due to AI-driven efficiency.

• Cash and cash equivalents increased 14.6% to RMB 865 million as of June 30, 2026.

Outlook and guidance

• Management expects continued high profitability in domestic payments by focusing on higher-margin customers and leveraging AI for efficiency.

• Overseas profit is targeted to contribute 50% of total payment profit within three years, with expansion into high-growth markets and further leveraging AI.

• Plans to commence online payment business in the US and Asia, with significant growth expected in Japan.

• Board will consider further share buybacks and dividends to enhance shareholder returns.

• Focus on high-value customer segments and ecosystem partnerships to drive sustained profit growth.