Yeahka (9923) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 15.6% YoY to RMB3,950.6m; reported net profit fell to RMB10.1m from RMB96.0m, while adjusted EBITDA increased 160.6% to RMB556.0m.

• Payment activity expanded, with GPV up 29.2% to RMB2,882.9bn; in-store e-commerce GMV grew 30.3% to RMB4.3bn as segment losses narrowed.

Financial highlights

• Gross profit was RMB738.2m, down 28.4%; operating profit fell to RMB125.0m from RMB166.8m.

• Profit before tax fell 71.1% to RMB35.4m; profit attributable to equity holders was RMB11.6m versus RMB153.9m.

• Excluding the RMB344.4m non-recurring revenue adjustment, gross profit was RMB1,082.6m and gross margin 25.2%.

• Basic and diluted EPS were RMB0.03 each, versus RMB0.39 and RMB0.38, respectively, in 2022.

Outlook and guidance

• 2024 priorities include increasing commercialization, expanding overseas, localizing products and services, and partnering with overseas banks, card organizations and local enterprises.

• In-store e-commerce plans focus on diversified traffic, vertical-specific strategies, business synergies and AI-enabled efficiency improvements.

• Overseas payment plans include acceptance, remittance, currency exchange and settlement services.