Yeahka Reports Strong Growth in Annual Results for 2024 with AI Integration

Yeahka's 2024 Annual Results: A Year of Significant Growth

In recent news, Yeahka Limited, a prominent payment and digital commerce technology platform in Asia, unveiled its annual results for the year ended December 31, 2024. This year proved to be transformative for the company, showcasing a strong emphasis on generative AI technology application, which has proven beneficial in streamlining operations and enhancing efficiency.

Business and Financial Insights

Yeahka has reported an impressive overseas business transaction volume exceeding RMB1.1 billion, showing a remarkable nearly five-fold increase compared to the previous year. Their expansion into additional Asian markets such as Japan and Singapore has significantly contributed to this growth. Daily transaction peaks reached nearly 60 million, reiterating Yeahka's position as a leader in the one-stop payment services industry.

Despite facing challenges within the industry, including a decrease in average transaction value per customer, the company managed to record a gross payment volume (GPV) of RMB2,335.5 billion in 2024. However, this represents a 19.0% decrease in comparison to 2023. Notably, the payment fee rate was recorded at 11.9 basis points (bps), showcasing their ability to maintain commercialization capabilities in line with evolving industry trends.

Revenue for 2024 was reported at RMB3,086.7 million, reflecting a decline of 21.9% from the previous year. Despite this, Yeahka demonstrated a steadfast commitment to improving its business structure, with the revenue contribution from higher gross profit margin value-added services increasing from 11.8% in 2023 to 13.0% in 2024. The overall gross profit margin also improved—from 18.7% in 2023 to 23.6% in 2024—with the second half of the year reaching a substantial 28.4%, suggesting recovery to pre-pandemic levels.

Cost management has been a cornerstone of Yeahka's strategy in 2024, significantly aided by the broader application of AI across their operations. The company reported a decrease in selling, administrative, and research and development expenses, signifying an effective cost-cutting strategy that saw reductions of 11.0%, 10.8%, and 10.5% respectively when compared to 2023.

Additionally, an update to their financial structure has led to a reduction in finance costs by 31.5%, contributing to a net cash generation of approximately RMB118.9 million from operating activities. Adjusted EBITDA for the year also showed promising results at RMB384.5 million, while the profit for the year surged to RMB73.0 million, indicating an increase of over six times compared to 2023. This has resulted in a gearing ratio decrease to 35.9% as of December 31, 2024, bolstered by the early repurchase of convertible bonds.

Mr. Luke Liu, Chairman and CEO, emphasized the importance of embracing AI and generative technologies throughout 2024. They expanded their product offerings, delving deeper into various Asian markets while focusing on improving margins and commercial viability across both payments and value-added services.

Throughout the year, Yeahka introduced the first industry AI agent solution for merchants in Southeast Asia, developed by Fushi Technology, a company in which they have invested. With a thriving digitalized ecosystem, their payment business captured trillions of RMB worth of transactions and consumer behavioral data, which subsequently allowed for the development of various use cases that catered to merchant needs.

Outlook for 2025 and Beyond

Looking forward, Mr. Liu expressed Yeahka's intention to harness the potential of AI technology further, enhancing both operational efficiency and product competitiveness. They are dedicated to addressing local market needs as they expand globally while continuing to build on the robust frameworks established in China.

Yeahka aims to establish itself further as a leading payment-based technology platform for merchants across varied regions, ensuring its products and services are not only innovative but also commercially viable. The company’s dedication to innovation and expansion positions it well for future success in the evolving landscape of digital commerce.

For more insights and updates on Yeahka, please visit their website at Yeahka's Official Website.