Yeahka Announces 2022 Annual Results

Hong Kong – (NewMediaWire) – March 27, 2023 – (ACN Newswire) – Yeahka Limited (“Yeahka” or the “Company”, Stock Code: 9923.HK), a leading payment-based technology platform in China, is pleased to announce the annual results for the twelve months ended 31 December 2022 (the “year” or “2022”).

Financial Highlights
— Total revenue reached RMB3,418.0 million, representing a year-over-year (YoY) increase of 11.8%;
— Gross profit rose 26.6% YoY to RMB1,030.9 million, while gross profit margin increased 3.6 p.p. to 30.2%;
— Adjusted EBITDA amounted to RMB213.4 million, an increase of 73.0% YoY;
— The gross profit margin of in-store e-commerce services improved from 35.9% in 2021 to 67.3% in 2022;
— Net loss of in-store e-commerce services significantly narrowed to RMB51.9 million in the second half of 2022, a decrease of 67.4% from the first half of 2022.

Operational Highlights
Number of merchants and fee rate of one-stop payment services continued to grow:
— Total gross payment value (“GPV”) of payment services reached RMB2.23 trillion, up 5.1% YoY;
— The number of active payment service merchants reached a historical high of 8.1 million, an increase of 11.4% YoY;
— Fee rate increased to 12.3 basis points (bps) in 2022 from 10.7 bps in 2021, trending upward (first half of 2022: 12.0bps; second half of 2022: 12.7bps);
— The peak daily count of app-based payment transactions reached over 50 million, hitting a record high;
— Number of independent sales agents in nationwide channel network reached nearly 18,000;
— In January and February of 2023, the year-on-year growth rate of our GPV was 9.8% and 34.1%, respectively;
— Official guidance of GPV in 2023: RMB2.7 trillion ~ RMB2.9 trillion.

In-store e-commerce services grew rapidly and achieved significant results:
— Total gross merchandise value (“GMV”) reached over RMB3.3 billion, up 7.3 times YoY;
— Total number of orders reached nearly 37 million, increasing by 3.1 times YoY;
— Stock keep units (SKU) reached over 400,000, up 1.5 times YoY.

Mr. Luke Liu, Chairman of the Board and Chief Executive Officer, said, “2022 was an unusual year, but our business continued to grow at a healthy rate and delivered strong financial results thanks to our broad geographic coverage and the strong synergies within our commercial digitalized ecosystem. Notably, our payment business saw an increase of both GPV and fee rate, and our in-store e-commerce business contributed significant revenue and gross profit and while drastically reducing its loss on monthly basis.”

Mr. Ben Zhao, Board Secretary and General Manager of Corporate Development explained, “For payment, we continued to diversify ISO base, expanded our joint merchant acquiring services with banks, and launched various DC/EP pilot programs. Our payment platform is becoming increasingly inclusive and robust, and we have begun to upgrade our clientele strategy to include mid-to-large sized customers and vertical brand leaders.

“For in-store e-commerce, we grew GMV over 7 times, and have upgraded to multi-layer market strategies including self-operated sites and co-op sites that helped us to reduce our BD costs while expanding our geographic coverage. We optimized our organizational structure and developed technology-empowered services such as KOL-matching, live-streaming optimization and ads deployment for our co-op partners. Jointly, we have created a merchant alliance that shares merchant resources, and offers Yeahka’s digital empowerment tools and additional cross-selling solutions such as payments and SaaS offerings.”

Outlook
Mr. Luke Liu concluded, “Today, our scalable ecosystem has shown its ability to create a virtuous cycle among the payment, in-store e-commerce, and merchant solutions segments. The merchant base and consumer insights we accumulated over the years directly led to the prosperity of our merchant solutions and in-store e-commerce business, and they in turn enhanced loyalty and stickiness in our payment business, sometimes even bringing new merchants to the payment business. Because of our strategic direction, we have a healthy and sustainable business that will endure for a long time. In 2023, we will continue to focus on creating value for our merchants and providing a wide range of local lifestyle experiences to consumers, and create sustainable value for shareholders, employees, and society at large.”

About YEAHKA LIMITED (Stock Code: 9923.HK)
Yeahka is a leading payment-based technology platform dedicated to creating value for merchants and consumers. Our goal is to build an independent and scalable commercial digitalized ecosystem to enable seamless, convenient, and reliable payment services to merchants and consumers, and to further expand into serving merchants and consumers with our diversified product portfolio, which now includes (i) in-store e-commerce services, providing consumers with local lifestyle services of great value, and (ii) merchant solutions, enabling merchants to better manage and drive business growth.

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