HONG KONG, Aug. 20, 2024 /PRNewswire/ -- Lianlian DigiTech Co., Ltd. (HKEX: 2598), a leader in China's digital payment solution market and global commerce digitalization, today released unaudited financial results for 1H2024.
Xin Jie, Executive Director and CEO of Lianlian DigiTech, commented, "We are proud to have driven business growth for our customers, which has resulted in expansion of our customer base. We achieved a year-on-year increase in transaction payment volume (TPV) of 120.1% to RMB1.57 trillion, and a year-on-year revenue growth of 40.1% to RMB617.4 million. Our global licenses, stringent compliance, and two decades of experience serving Chinese businesses have earned us the trust of regulators, partners, and customers. This trust, combined with our technology, global network, and value-added services, have given us a lasting competitive advantage."
Xin continued, "In the first half of the year, we launched innovative payment services, such as enterprise wallets, and expanded our presence in Europe. Obtaining an Electronic Money Institution (EMI) License in Luxembourg has allowed us to conduct payment and related services virtually in all EU countries. Looking ahead, we remain focused on internationalization and digitalization. We plan to launch differentiated payment and value-added services to help Chinese businesses expand their product capacities, sell to more customers, and operate more globally."
Wei Ping, CFO of Lianlian DigiTech, added, "Following our successful Hong Kong listing, we are pleased to report strong inaugural interim results marked by notable revenue growth and increasing economies of scale, as shown by a declining expense-to-revenue ratio on non-IFRS basis. While our gross profit margin was lower due to rapid expansion of our lower-margin domestic payments business, we still achieved a healthy 20.3% year-on-year growth in total gross profit. We will continue making prudent investments in technology, innovation, and differentiated services to achieve healthy long-term growth."
Business Highlights for 1H2024
Global Business
Our global digital payment services recorded a TPV of RMB102.3 billion, up by 35.4% year-on-year. This was driven by more companies using global payment services for cross-border transactions.
During the period, we continued to broaden our one-stop service capabilities, upgrade our virtual bank card services, and further improve in acquiring solutions with five major card organizations to meet the varied payment needs of our diverse clientele. In May 2024, we were awarded the EMI license in Luxembourg, marking another substantial breakthrough in penetrating the European market and propelling our internationalization strategy.
Domestic Business and Value-Added Services
Our domestic TPV for digital payment services grew by 130.1% year-on-year to RMB1.47 trillion. This was primarily driven by a major growth in volume from payment products launched in 2023. We also launched our global network and payment capabilities to launch a new enterprise wallet product, empowering enterprise customers to streamline the management of employee business related disbursements on a global scale while optimizing their financial management and internal control procedures. The product is rapidly gaining traction across diverse markets, with promising adoption among state-owned enterprises, listed companies, industry leaders, and SMEs.
Financial Highlights for 1H2024
Total Revenue
Our total revenue for the six months ended June 30, 2024 amounted to RMB617.4 million, representing a year-on-year increase of 40.1%. Most of this was driven by RMB158.7 million in revenue growth from digital payment services, as well as an increase of RMB19.5 million in revenue from value-added services. These gains were partially offset by a decrease of RMB1.3 million in other revenues.
The table below sets forth the breakdown of our revenue over the period:
Six months ended June 30
Revenue
2024
2023
Change
Change in %
(RMB in thousands)
Digital Payment Services
541,888
383,231
158,657
41.4 %
– Global payment (i)
372,374
305,383
66,991
21.9 %
– Domestic payment (ii)
169,514
77,848
91,666
117.8 %
Value-added services
66,773
47,303
19,470
41.2 %
Others (iii)
8,726
10,055
(1,329)
(13.2) %
Total
617,387
440,589
176,798
40.1 %
Notes:
i. Refers to payment transactions for cross-border activities or activities occurring outside of mainland China.
ii. Refers to payment transactions occurring within mainland China.
iii. In addition to providing digital payment solutions, we also operate several ...
