HONG KONG, Nov. 9, 2020 /PRNewswire/ -- YEAHKA LIMITED ("Yeahka" or the "Company", stock code: 9923.HK), a leading technology platform in China, announced an agreement to acquire a 42.5% stake in Beijing Chuangxinzhong Technology Co., Ltd. ("Chuangxinzhong") for RMB 170 million in cash.
Chuangxinzhong is a leading content performance marketing service provider in China. It provides accurate content delivery through audience analysis based on big data, while providing advertisers with overall performance marketing strategies, creativity, performance monitoring and optimization services. Chuangxinzhong has accumulated a large advertiser base in the fields of Internet insurance, online education and e-commerce, creates unique content through multiple formats, including short form videos, and optimizes distribution of that content through leading online media platforms, such as Tencent and Tik Tok. Chuangxinzhong is also a core service provider for Tencent, ranking first among Tencent's new service providers in terms of consumption in the first half of 2020.
Yeahka strives to create a marketing platform for precision advertising based on offline traffic. Yeahka has launched its Data Management Platform ("DMP"), Juliang, which is a precision advertising platform powered by AI and machine learning. Juliang has attracted a large amount of offline traffic from various QR code-based payment scenarios, including supermarkets and retailers, gas stations, car parks, colleges and universities. Juliang has also accumulated a large number of advertiser resources in industries such as e-commerce, finance, and online education. In the first half of 2020, Yeahka's marketing services revenue recorded an increase of more than 11 times compared with the same period in 2019. Moreover, the number of exposures on Yeahka's precision marketing platform from July 1 to October 31, 2020 has nearly doubled compared with the first half of this year.
This strategic cooperation between Yeahka and Chuangxinzhong will enable both companies to strengthen the integration of high-quality resources, unleash online and offline media resources, integrate user data, enhance content creativity, and enable Yeahka to achieve more effective marketing services for digital content.
As China's macro-economy recovers after Covid-19, as of October 31, 2020, Yeahka's active paying customer numbers rebounded to pre-pandemic levels. The number of consumers using the Company's payment service approached 600 million and has continued to grow quarter-to-quarter. Meanwhile, the number of transactions of app-based payment services continued to grow rapidly from July and October 2020, with growth exceeding 30% over the first half of this year. This strategic investment and cooperation will further improve the Company's data management platform (DMP) driven by artificial intelligence and machine learning through diversified media channels, and is expected to help customers achieve more accurate advertising.
Mr. Luke Liu, Chairman of the Board, Chief Executive Officer and Executive Director of Yeahka, said, "The Chuangxinzhong team has built an exciting and robust marketing platform that complements Yeahka's existing precision marketing platform, allowing us to generate greater value through significant synergy in talents, technology and client base. The scale of China's online advertising market is constantly expanding and is expected to exceed RMB 1 trillion in 2022. Together, we are in a powerful position to explore this market opportunity, gather more insight on user profiles and data traffic across the Company's data management platform, and optimize our artificial intelligence-driven delivery model to achieve increasingly better marketing ROIs."
Mr. Qin Lingjin, founder of Chuangxinzhong, said, "We are very pleased to have reached an agreement with Yeahka. By joining forces, we can leverage Yeahka's deep expertise and rich pool of resources in the Internet industry to enhance Chuangxinzhong's service capabilities and outcomes for performance marketing, which will benefit our existing and potential customers and media partners. I am confident that this partnership will further consolidate and strengthen the competitive advantages and positioning of Chuangxinzhong in the mobile Internet marketing field."
About YEAHKA LIMITED (9923.HK)
YEAHKA LIMITED ("Yeahka" or the "Company") is a leading payment-based technology platform in China providing payment and technology-enabled business services to merchants and consumers. According to Oliver Wyman, we are the second largest non-bank independent QR code payment service provider in China, with approximately 14.0% market share in terms of transaction count in 2019. The Company's value proposition is a cohesive ecosystem that enables seamless, convenient and reliable payment transactions between merchants and consumers, and leveraging its vast customer base and data assets accumulated from payment services, to further offer a rich variety of technology-enabled business services, including (i) merchant SaaS products, which help customers improve their operational efficiency, (ii) marketing services, allowing customers to effectively reach their target markets, and (iii) fintech services, which cater to customers' financial needs.
