Yeahka Announces 2021 Annual Results

Beats Expectations, GPV Exceeds RMB 2 Trillion

HONG KONG, March 31, 2022 /PRNewswire/ -- Yeahka Limited ("Yeahka" or the "Company", Stock Code: 9923), a leading payment-based technology platform in China, is pleased to announce the annual results for the year ended 31 December 2021 (the "year" or "2021").

Mr. Luke Liu, Chairman of the Board, Chief Executive Officer and Executive Director of the Company, said, "In 2021, following our rapid recovery from the pandemic, our total gross payment volume ("GPV") and revenue from payment services recorded strong growth given our effective marketing and channel strategies. Meanwhile, the number of active payment services merchants reached recorded historical highs at 7.3 million. Moreover, with the significant increase in the number of active merchant solutions merchants, and rapid development of the newly-launched in-store e-commerce services, all three business segments have achieved remarkable results, contributing to the solid growth of our financial results.

"With efforts over the past ten years, we have enriched our product matrix to empower merchants with comprehensive digital solutions, while simultaneously providing value for money local lifestyle service packages to consumers. To better reflect our strategic plans and the way how management evaluates business performance, we have reclassified our business lines from (1) one-stop payment services, and (2) technology-enabled business services, to (1) one-stop payment services, (2) merchant solutions, and (3) in-store e-commerce services.

"We have been working in the payment industry for over ten years, and accumulated a broad and loyal merchant base, which became the broad customer source for our merchant solutions. Due to the pandemic, certain consumption habits such as contactless self-ordering have gradually become popular, and demands from small and medium merchants for technological upgrades have been increasing, driving continued rapid growth of the merchant solutions business.

"The in-store e-commerce services that we launched in December 2020 has achieved outstanding performance in 2021. The objective of this business is to explore the local lifestyle services market in China that has huge growth potential, and connect merchants and consumers to facilitate their interaction. Our goal is to build a vibrant community where consumers discover interesting, exclusive local experiences at great value, and local lives thrive. This business has covered nearly 300 cities, and recorded rapid growth of total gross merchandise value ('GMV') and number of paying consumers, reaching RMB398 million and 5.2 million respectively in 2021.

"Also, with confidence in the Company's fundamentals and future strategies, we have purchased a total of 17,686,800 shares of the Company through the restricted share unit scheme 2021, accounting for 3.90% of total shares outstanding. Moreover, on March 31, 2022, we announced an additional US$50 million share purchase scheme, reflecting our continued confidence in the Company's growth potential."

To demonstrate the Company's commitment to good ESG practices, Yeahka formed a dedicated board-level ESG Committee which Mr. Luke Liu serves as the chairperson, to review key trends in ESG as well as related risks and opportunities and all other ESG efforts, and to invest appropriate resources and attention for further strengthening our ESG governance.

Financial Highlights

• During the year, the Company's total revenue reached RMB3,059 million, representing a YoY increase of 33.4%. Revenue from merchant solutions increased rapidly by 38.5% to RMB642 million; the newly launched in-store e-commerce service recorded revenue of RMB148 million.
• Gross profit during the year rose 9.5% YoY to RMB815 million, gross profit contribution from non-payment business increased to 53.4%.
• Profit attributable to equity holders of the Company was RMB421 million; adjusted net profit grew 20.6% YoY to RMB435 million.

Operational Highlights

• The GPV of the payment services has recorded significant growth and exceeded RMB2.12 trillion, up 45.5% YoY. Of which, app-based payment services GPV increased by 59.0% YoY, accounting for 60.5% of total GPV, up from 55.4% in last year.
• The number of active payment service merchants increased 32.5% YoY to 7.3 million.
• The number of active merchant solutions merchants reached 1.38 million, representing a YoY increase of 53.3%.
• For the in-store e-commerce business, the GMV reached RMB398 million, and the number of paying consumers reached 5.2 million.
• The GMV of the in-store e-commerce business is expected to be ranging from RMB2.8 billion to RMB3.5 billion for 2022.

Outlook

Yeahka's goal is to build a commercial digitalized ecosystem to benefit all stakeholders involved, in which synergies among the products and services Yeahka provides can be leveraged to realize cross-selling, and gradually create a close-looped ecosystem that has strong self-reinforcing network effects.

"Going forward, Yeahka will continue to utilize our experienced product and research team to upgrade and enrich our products and services, explore the value of the traffic and data in our ecosystem, extend business boundaries, and drive future growth by providing full lifecycle services for users, creating sustainable long-term value for shareholders, employees and the society." Mr. Luke Liu emphasized.

About YEAHKA LIMITED (Stock Code: 9923.HK)

Yeahka is a leading payment-based technology platform. The Company's goal is to build an independent and scalable commercial digitalized ecosystem. Yeahka seamlessly connects merchants and consumers through payment services of different kinds, including QR code and traditional bank card payment. And on this basis, it provides merchant solutions including SaaS digital solutions, precision marketing services, and fintech services to help merchants better manage and drive business growth. In addition, Yeahka launched in-store e-commerce services in December 2020, providing consumers with one-stop local lifestyle services that are value for money.