Yeahka (9923) H2 2024 earnings summary

Executive summary

• Embraced AI and generative technologies to expand product range, reduce costs, and drive operational efficiency and commercial sustainability, resulting in significant profit and cash flow surge.

• Strengthened market leadership as a one-stop technology platform, leveraging large payment transaction volumes and data to develop merchant solutions and in-store e-commerce businesses.

• Overseas GPV grew nearly fivefold year-over-year to over RMB 1.1 billion, with expanded partnerships and product offerings in Japan, Singapore, and Hong Kong.

• Net profit surged over sixfold year-over-year to RMB 73.0 million, with improved gross margin and profitability.

• Achieved record highs in precision marketing and in-store e-commerce, with significant profitability enhancements and business model transformation.

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.

• Adjusted EBITDA exceeded RMB 384 million; net profit margin rose to 2.4% from 0.3% year-over-year.

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

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

Outlook and guidance

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

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

• No significant capital-raising activities expected for the rest of the year; organic cash flow generation seen as sufficient for planned expansion.