#China #Hangzhou #AI Technology #Lianlian DigiTech #digital payment solutions

Lianlian DigiTech Achieves Significant Growth in 2024

Introduction
Lianlian DigiTech Co., Ltd. (HKEX: 2598), a prominent player in China's digital payment sector, has reported extraordinary financial results for the year 2024. The company achieved a total payment volume (TPV) of RMB3.3 trillion, marking a staggering 64.7% increase compared to the previous year. This remarkable growth sets the stage for Lianlian DigiTech as a leader in digital payment solutions and global commerce digitalization.

Financial Highlights
In addition to the impressive TPV, Lianlian DigiTech's total revenue surged to RMB1.32 billion, reflecting a year-on-year increase of 27.9%. The revenue derived from digital payment services reached RMB1.15 billion, showcasing a growth of 31.6%. The company achieved a gross profit of RMB683 million, equating to a notable profit margin of 51.9%. Furthermore, an adjusted profit of RMB78.7 million demonstrates a significant turnaround from a loss reported in 2023.

Strategic Growth Initiatives
During this period, Lianlian DigiTech has made significant strides in expanding its global footprint. The global payment segment achieved a TPV of RMB 281.5 billion, a 63.1% increase year-on-year. The total revenue from this segment also saw a boost to RMB 808 million, indicating a 23.1% year-on-year growth. By the end of 2024, Lianlian has successfully served over 5.9 million customers, effectively leveraging its interconnected domestic and international business model.

The domestic payment sector alone achieved a TPV of RMB3.0 trillion, which marks an impressive growth of 64.9% year-on-year, with revenues climbing to RMB343 million, a 57.1% increase. The inclusion of value-added services brought in additional revenue of RMB146 million, up 9.5% on a year-on-year basis.

Technological Integration
A core component of Lianlian DigiTech's growth strategy includes empowering enterprises through digital transformation and globalization. To achieve this, the company has introduced a suite of new products, such as digital marketing tools and corporate wallets. Additionally, Lianlian DigiTech is deeply integrating cutting-edge technologies like AI and blockchain in its operations, thereby refining products to enhance user experience and operational efficiency.

CEO Xin Jie remarked, "2024 was a landmark year as it was our first year listed on HKEX. Our acquisition of the Luxembourg Electronic Money Institution License, alongside DFX Labs' virtual asset trading platform license from the Securities and Futures Commission of Hong Kong, showcases our commitment to growth. We are focused on leveraging our licensing portfolio and innovating our technology offerings to enhance customer experience and optimize shareholder returns."

Financial Discipline and Future Prospects
CFO Wei Ping echoed the company's stability, stating, "Our growth is a testament to our balanced strategy of investing in new businesses, technologies, and licenses while adhering to financial discipline. Looking ahead, we will further solidify our global licensing portfolio and enhance partnerships throughout our value chain. Our commitment to technological innovation and differentiation in our products will remain a priority."

Conclusion
Lianlian DigiTech's stellar performance in 2024 highlights its robust growth trajectory and resilience in a competitive market landscape. With a focus on innovation, strategic partnerships, and technological integration, the company is well-positioned to revolutionize digital payments and expand its global reach well into the future.