#China #Hangzhou #Digital Payments #growth #Lianlian DigiTech

Lianlian DigiTech's Remarkable Growth in 2024

In a groundbreaking announcement, Lianlian DigiTech Co. Ltd., listed on the Hong Kong Stock Exchange (HKEX: 2598), has revealed its outstanding performance for the year 2024. The company, a frontrunner in China's digital payment solutions and global commerce digitalization, recorded an impressive total payment volume of 3.3 trillion RMB. This figure represents a striking year-on-year growth of 64.7%, indicating a robust recovery and expansion in the digital payment landscape.

The firm's total revenue for the year reached 1.32 billion RMB, marking a significant increase of 27.9%. Notably, the revenue from its digital payment segment alone surged to 1.15 billion RMB, reflecting a growth rate of 31.6%. This positive turnover is complemented by a gross margin of 683 million RMB, translating to an exceptional gross margin percentage of 51.9%. Moreover, the adjusted profit amounted to 78.7 million RMB, a remarkable turnaround from the losses experienced in 2023.

Business Expansion and Technological Advancements

Xin Jie, the CEO of Lianlian DigiTech, emphasized the company's transition to a listed entity on the HKEX and celebrated the achievements made during 2024. A noteworthy milestone includes obtaining an electronic money institution (EMI) license in Luxembourg, alongside securing a Virtual Asset Trading Platform (VATP) license from the Hong Kong Securities and Futures Commission for its subsidiary, DFX Labs Company Limited.

Leveraging its impressive portfolio of licenses, Lianlian DigiTech is harnessing cutting-edge technologies such as artificial intelligence (AI) and blockchain. The focus for the company is to enhance customer service experiences, increase operational efficiency, and provide superior returns for shareholders.

The overall payment services segment showed significant development during this period, with its value addition reaching 281.5 billion RMB, which is a notable 63.1% increase year-on-year. The revenues for the global payment services segment also rose, totaling 808 million RMB, an increase of 23.1% compared to the previous year. By the end of 2024, Lianlian DigiTech had served over 5.9 million total clients, reinforcing its expansive reach.

Domestic Market Success

In terms of domestic operations, Lianlian DigiTech witnessed a total payment volume of 3.0 trillion RMB, up 64.9% year-on-year, generating revenues of 343 million RMB, which is a 57.1% increase. The value-added services segment also saw growth, accumulating 146 million RMB, indicative of a 9.5% year-on-year increase. This growth highlights Lianlian DigiTech's strategic role in assisting businesses with digital transformation and globalization efforts through innovative offerings such as digital marketing and enterprise wallets.

Wei Ping, Chief Financial Officer at Lianlian DigiTech, underscores the company's balanced strategy which includes investing in new activities and technologies while maintaining strict financial discipline. As it looks toward the future, there’s a commitment to fortifying its global licensing portfolio and enhancing partnerships throughout its value chain, along with sustained investment in technological innovation and differentiated products.

In conclusion, Lianlian DigiTech's impressive 2024 results not only demonstrate its capability to capitalize on market trends but also indicate a promising trajectory fueled by technological advancements and strategic investments. As the digital payment landscape continues to evolve, Lianlian DigiTech is poised to play a pivotal role in shaping the future of commerce in both domestic and international markets.