- Profit of the Year Surged 420.6% to RMB440.8 Million, Driven by the Rapid 
Growth of Technology-enabled Business Services -

Yeahka Limited ("Yeahka" or the "Company", Stock Code: 9923), a leading 
payment-based technology platform in China, is pleased to announce the audited 
consolidated results for the year ended December 31, 2020 (the "Reporting 
Period").

Mr. Luke Liu, Chairman of the Board, Chief Executive Officer and Executive 
Director of the Company, said, "I am pleased to present Yeahk's first annual 
results as a public company. Over the past year, we were able to maintain solid 
growth, and create value for our shareholders as well as merchants and 
consumers. As a leading payment-based technology platform in China, our 
business philosophy is 'Start From Payment, Go Beyond Payment' and we have 
progressively established a sustainable commercial digitalized ecosystem by 
leveraging our app-based payment services as the core. Leveraging the resources 
within our ecosystem, including traffic, data and R&D, we expanded our 
innovation business by launching technology-enabled merchant SaaS products, 
precision marketing services and fintech services, which have in turn helped to 
drive the rapid growth of various businesses within our company."

Mr. Liu continued, "As we continue to innovatively promote digitalized upgrades 
and integration across industries, we are creating greater value for both 
merchants and consumers. Looking ahead, the continued development of the 
consumer and industrial internet will accelerate the digital transformation of 
Chinese enterprises, and the landscape of business services will change 
significantly during this process. For both our merchant and consumer business 
segments, we will continue to utilize the traffic and data captured by the vast 
number of payment transactions that we process to explore new opportunities in 
various business segments, and fully commercialize our growing ecosystem."

Financial Highlights

During the Reporting Period, the Company's total revenue reached RMB 2,292.9 
million, representing a year-on-year increase of 1.5%, mainly driven by the 
growth of the technology-enabled business. Revenue contribution from 
technology-enabled business services increased rapidly to 20.2% from 7.8% in 
2019. Within this segment:

- Revenue from marketing services reached RMB 364.9 million, representing a 
year-on-year increase of 234.1% and 15.9% of the total revenue. 
- Revenue from merchant SaaS products reached RMB 29.9 million, representing a 
year-on-year increase of 99.5% and 1.3% of the total revenue. 
- Revenue from fintech services reached RMB 68.7 million, representing a 
year-on-year increase of 30.2% and 3.0% of the total revenue.


Gross profit increased 14.9% year-on-year to RMB 743.7 million. Gross profit 
margin increased to 32.4% from 28.7% in 2019. 
Net profit increased 420.6% year-on-year to RMB 440.8 million. Adjusted net 
profit increased 19.8% year-on-year to RMB 360.6 million. Earnings per share 
was RMB 1.45. 
Business Highlights

Despite the impact from the pandemic, the total number of app-based payment 
transactions saw a 119.1% increase in the second half of 2020 compared with the 
first half. As of December 31, 2020, the number of active payment service 
customers increased by 4.5% year-on-year to 5.5 million, and the number of 
payment service customers increased by 75.5% year-on-year to 645.3 million. 
The Company continued to expand and diversify its distribution channels. As of 
the end of 2020, the Company had collaborated with more than 10,000 independent 
sales agents and sales partners. Among them, the Company proactively cooperated 
with nearly 900 merchant SaaS service providers from offline scenarios spanning 
catering, retail, parking, refueling, ticketing, bicycle sharing, charger 
sharing, internet cafés, tourist attractions and vending machines. Fushi 
Technology, the Company's one-stop digitalized platform for merchants, 
accumulated more than 320,000 merchants. The daily active users of its merchant 
App had exceeded 120,000. The number of peak daily payment transactions of grew 
over 4 times year-on-year to over 7.3 million. 
During the Reporting Period, the Company's technology-enabled business services 
achieved significant breakthroughs. The number of customers from 
technology-enabled business services hit 982,000, representing an increase of 
128.2% year-on-year. Specifically, among the Company's merchant SaaS products, 
Juhuisaosao, the Company's payment aggregation tool, served over 63,000 
merchants in 2020 and recorded a daily peak sales volume of 1,191 units. Smart 
Shopkeeper, an integrated SaaS management platform for restaurants, maintained 
solid growth, as its total number of merchants increased by 201.1% year-on-year 
and it ranked at the top of the charts in terms of sales volume and review 
ratings on various Chinese mainstream e-commerce platforms. On the precision 
marketing front, the total exposures generated by the Company's precision 
advertising platform were more than 23.9 times greater than 2019. For the 
Fintech services, the total number of transactions that the Company facilitated 
was approximately RMB568.5 million, a 15,2% growth year-on-year, and the 
weighted average tenor was 10.39 months. As of December 31, 2020, the M1+ 
delinquency rate by vintage (over 30 days overdue) has remained stable at 
around 1.05% since the second quarter of the year.
Business Review

Payment Services

The Company regards payment services as an important portal to attract traffic. 
During 2020, the Company continued to steadily expand its payment business and 
remained focused on building out its app-based payment services. The Company 
continued to diversify payment channels to rapidly expand its merchant base. 
Meanwhile, it also actively optimized its payment-based technology platform, 
further integrated its internal resources, substantially increased R&D 
investments and continuously refined the management of its payment business 
operations.

Payment services continued to expand during the Reporting Period. The  number 
of app-based payment transactions jumped 119.1% , while GPV increased by 28.5% 
in the second half of 2020 as compared to that in the first half of 2020. . The 
peak daily average number of QR code payment transactions exceeded 30 million. 
Despite the pandemic, the number of active payment service customers increased 
by 4.5% year-on-year to 5.5 million, and the number of payment service 
customers increased by 75.5% year-on-year to 650.0 million.

The Company continued to collaborate with premium industry partners. As of 
December 31, 2020, the Company had collaborated with more than 10,000 
independent sales agents and sales partners. The Company also proactively 
cooperated with almost 900 merchant SaaS service providers that offer services 
in a wide range of offline-scenarios, including across food and beverage, 
retail and parking, by providing one-stop payment services to the merchants 
they serve. By leveraging the abundant merchant resources and the nationwide 
branch network of joint stock banks, urban commercial banks and rural 
commercial banks, the Company co-developed a merchant payment service system 
and jointly provided bank card acquiring services with these banks, and had 
established a merchant resources sharing system with almost 50 banks, 
efficiently expanding the Company's payment service business. In terms of 
emerging payment methods, the Company set up dedicated teams during the 
Reporting Period to support development in digital currencies. 

Merchant SaaS Product Portfolio

As merchants continued to digitalized their operations, the Company developed 
and provided a comprehensive merchant SaaS product portfolio, allowing 
merchants to reduce their operational costs and acquire customers more easily. 
The Company's SaaS products and services are primarily accessible to merchants 
through online channels such as WeChat mini programs and merchant applications, 
as well as other offline touch-points. During the Reporting Period, the Company 
invested in Fushi Technology (Shenzhen) Co., Ltd. Fushi's one-stop merchant 
digitalized platform, Haoshengyi, is an important part of the Company's 
ecosystem that helps the Company expand and serve its merchant base. As of 
December 31, 2020, Fushi had expanded its coverage to 25 cities nationwide and 
accumulated more than 320,000 merchants. The number of its peak daily payment 
transactions exceeded 7.3 million, which was more than four times higher than 
2019, and the daily active users ("DAU") of its merchant app exceeded 120,000 
as of December 31, 2020. Furthermore, the latest data shows that, as of March 
22, 2021, its peak daily payment transaction counts rose further to 8.1 
million. 

For the retail industry, in the first half of 2020, the Company launched 
Juhuisaosao, a proprietary QR code payment SaaS with a voice reminder function. 
Leveraging the big data capabilities of the Company's ecosystem, Juhuisaosao 
can provide merchants with multi-dimensional transaction reports and analysis, 
cash flow analysis and forecasts via mobile devices and WeChat mini programs 
based on their needs, thereby allowing merchants to gain additional insights 
into their business performance and facilitating business decisions. Since its 
launch, Juhuisaosao has been well received by merchants as it effectively 
reduce delays and omissions during rush hours. In the first half of 2020, it 
had served over 11,000 merchants, which further increased significantly by 
439.1% to 63,250 merchants in the second half of the year. During the Reporting 
Period, Juhuisaosao recorded daily peak sales volume of 1,191 units. In 2020, 
the Company also launched Smart Store, a lightweight SaaS product that offers 
merchants a one-stop platform to manage store procurement, sales and inventory.

For the catering industry, the Company launched its first one-stop SaaS 
platform Smart Shopkeeper in China in 2015. Since then, Yeahka has developed 
two brands, namely Smart Shopkeeper and Milican, that target different segments 
of the catering industry and different types of merchants to offer better 
solutions. In particular, Smart Shopkeeper targets catering merchants with 
single stores, while Milican targets catering franchises with multiple stores. 
As of December 31, 2020, the total number of merchants served by Smart 
Shopkeeper increased by 201.1% year-on-year. The App ranked at the top of 
various Chinese mainstream e-commerce platforms in terms of sales volume and 
review ratings. In order to help merchants manage decentralized native traffic, 
in March 2020, the Company launched Yuehuiquan, a coupon aggregation and 
distribution platform built on blockchain technology. During the Reporting 
Period, the platform has served over 56 thousand merchants and expanded to 
become a platform that manages millions of coupons. In October 2020, Yuehuiquan 
was officially titled and given a recordation number in the domestic 
blockchain-based information service by the Cyberspace Administration of the 
PRC. In January 2021, the Group launched Yuehuiquan Pro, a community-based 
fully-automated hosting membership management system, with the aim of assisting 
more merchants build customized membership programs from scratch and satisfying 
merchant's' increasing needs for customization.

In 2020, the Company made a number of strategic investments through RYK Capital 
Partners Limited, an investment platform jointly established by the Company and 
Recruit Holdings Co., Ltd., a renowned Japanese internet company, including 
Shenzhen Zhibaiwei Technology Development Co., Ltd., an O2O mobile internet 
SaaS provider focusing on retail and F&B POS-ERP services, and Jiangsu Ruipos 
Data Technology Co., Ltd., a SaaS service provider focusing on domestic 
catering chains, including tea and beverages, fast food and lu wei (braised 
snacks) restaurants (operated under the Shuaishouzhanggui brand).

Precision Marketing Services

The Company is dedicated to building a precision digital advertising platform 
which is based on diversified data traffic. Using proprietary payment data, 
integrated from a wide range of case scenarios, Yeahka maximizes value for its 
customers by intelligently matching target users with advertisers and merchants 
through its precision marketing services. In recent years, the Company has 
established a proprietary data management platform (DMP)  and used it as the 
core to launch a precision advertising marketing platform "Juliang". Yeahka 
leveraged its growing artificial intelligence ("AI") and machine learning 
capabilities to intelligently match target users, refining and labelling data 
in Juliang, thus precisely matching offline traffic owners' demands for 
monetization with advertisers' demand for advertisement placement results.

In November and December 2020, the Company reached an agreement to acquire an 
85% equity interest in Beijing Chuangxinzhong Technology Co., Ltd., a leading 
content performance-based marketing service provider in China. The acquisition 
will not only allow the Company to quickly expand its advertising inventory, 
but will also further enhance its capabilities to collect data related to user 
behaviors and preferences. Beijing Chuangxinzhong's online media network will 
quickly bolster the Company's consumer profiles and data based on their 
preferences, strengthen traffic labels on Juliang, as well as improve ad 
placement efficiency. 

Fintech Services

Yeahka provides fintech services, including loan facilitation services, 
entrusted loan services, and small-sized loan and insurance referral services 
to merchants. During the Reporting Period, the total number of transactions 
that the Company facilitated was approximately RMB568.5 million, representing 
an increase of 15.2% from 2019, with a weighted average tenure of 10.39 months. 
As of December 31, 2020, the M1+ delinquency rate by vintage (over 30 days 
overdue) had remained stable at around 1.05% since the second quarter of the 
year, demonstrating the effectiveness of the Company's credit risk management 
capabilities across various economic cycles. 

Outlook

Looking ahead, the continued development of the consumer and industrial 
internet will facilitate the ongoing digital transformation of Chinese 
enterprises. The landscape of business services will change significantly 
during this process. For both its merchant and consumer business segments, the 
Company will continue to utilize the traffic and data captured through the vast 
number of payment transactions it processes to explore and capitalize on 
opportunities in various business segments. The Company will further leverage 
its ecosystem to support digital transformation and commercialize services 
around it.

For technology-enabled business services, the Company will continue to enhance 
its ecosystem, which includes merchant SaaS products, precision marketing 
services and fintech services. In addition, the Company will accelerate its 
embrace of market changes, stay at the forefront of technological advancements, 
and proactively promote emerging payment methods such as digital currencies. 
The Company will continue to expand its business boundaries, strive to enable 
businesses to operate and acquire customers through decentralization, and 
enhance consumer lifestyles and merchant capabilities by providing greater 
convenience.

About YEAHKA LIMITED (9923.HK)

Yeahka Limited is a leading payment-based technology platform in China 
providing payment and technology-enabled business services to merchants and 
consumers. The Company was listed on The Stock Exchange of Hong Kong Limited 
(the "Stock Exchange") in June 2020 under the stock code "09923.HK". The 
Company's value proposition is to create a commercial digitalized ecosystem 
that enables seamless, convenient and reliable payment transactions between 
merchants and consumers and further offer a rich variety of technology-enabled 
business services, including (i) merchant SaaS products, which help customers 
improve their operational efficiency, (ii) precision marketing services, 
allowing customers to effectively reach their target markets, and (iii) fintech 
services, which cater to customers' diverse financial needs.

Please refer to the link below for the audited consolidated results of Yeahka 
Limited and its subsidiaries (collectively, the "Group") for the year ended 
December 31, 2020 together with the comparative figures for the year ended 
December 31, 2019.

https://yk-webapp-static.leshuazf.com/20210325/1616667943732474.pdf  

source: Yeahka Limited