Yeahka (9923) H2 2024 earnings summary

Executive summary

• Embraced AI and generative technologies to drive operational efficiency, cost reduction, and revenue growth, resulting in a significant surge in profit and cash flow.

• Reinforced market leadership in payments, merchant solutions, and in-store e-commerce, leveraging a large transaction volume and data ecosystem.

• Overseas payment volume grew nearly fivefold year-over-year to over RMB 1.1 billion, with expansion into Japan, Singapore, Hong Kong, and new global partnerships.

• Net profit surged over sixfold year-over-year to RMB 73.0 million, with profit margin rising to 2.4% from 0.3% in 2023.

• Adjusted EBITDA reached RMB 384.5 million, and cash flow from operations improved significantly.

Financial highlights

• Total revenue declined by 21.9% year-over-year to RMB 3,086.7 million, mainly due to macroeconomic volatility and phasing out less profitable projects.

• Gross profit margin improved to 23.6% from 18.7% in 2023, with gross profit at RMB 728.8 million, down 1.3% year-over-year.

• Operating profit was RMB 115.5 million, slightly down from RMB 125.0 million in 2023.

• Selling, administrative, and R&D expenses all declined by over 10% year-over-year, reflecting AI-driven cost optimization.

• Net cash from operating activities reached RMB 384.5 million, up from RMB 45.3 million year-over-year.

Outlook and guidance

• Focus on leveraging AI to further reduce costs, increase efficiency, and drive revenue growth.

• Continued global expansion, especially in Southeast Asia, Japan, Singapore, and Hong Kong SAR, with deepening of vertical client penetration.

• Ongoing enhancement of product and service offerings, including AI-powered merchant solutions and in-store e-commerce services.

• Optimistic about continued growth in payment volume and profitability, supported by improving consumer sentiment and favorable government policies.

• One-stop payment services to remain foundational, with increased emphasis on merchant solutions and in-store e-commerce for profitability.