Shulou(Shulou.com)11/24 Report--

Hong Kong, August 24, 2023-Mobile Card Co., Ltd. ("Mobile Card" or "Company", stock code: 9923.HK), China's leading payment-based technology platform, is pleased to announce its interim results for the six months ended June 30, 2023 ("period" or "first half").

Financial summary

. The company's total revenue reached 2062.2 million yuan, an increase of 25.6% over the same period last year.

. The gross profit reaches 366.0 million yuan, with a gross profit margin of 17.7%.

. Adjusted EBITDA reached 290.9 million yuan, an increase of 317.4% over the same period last year.

. The gross profit margin of incoming e-commerce services rose from 57.1% in the first half of 2022 to 76.9% in the first half of 2023, and the net loss narrowed sharply compared with the same period last year.

Operation summary

The expanded merchant base and diversified channel network promote the growth of one-stop payment services:

. Total payment transactions ("GPV") increased by 33.5% year-on-year to 1.42 trillion yuan, of which 70.5% were application-based payment services

. The number of active payment service merchants increased by 20.7% to 9.2 million over the same period last year.

. Rates increased from 12.0 basis points in the first half of 2022 to 12.9 basis points in the first half of 2023, showing a continuous upward trend

. The number of daily payment transactions based on applications peaked at nearly 6000.

. There are nearly 19000 independent sales agents in the national channel network and more than 4000 cloud payment platform partners.

. The official GPV guidelines for 2023 will remain unchanged: RMB 2.7 trillion to RMB 2.9 trillion.

E-commerce services to stores maintain a strong growth momentum:

. The total merchant trading volume ("GMV") exceeded 2.4 billion yuan, an increase of 78.9% over the same period last year.

Merchant solutions benefit from cross-selling synergies:

. In the 12 months ended June 30, 2023, the number of active merchant solutions increased by 6.2% year-on-year to 1.5 million, up 25.7% from the second half of 2022.

Mr. Liu Yingqi, Chairman of the Board of Directors and Chief Executive Officer of the company, said: "with the recovery of offline consumption, the mobile card performance was strong in the first half of 2023, the total revenue grew steadily, and the three core business segments further coordinated. The number of GPV and active merchants of one-stop payment services continues to grow. Merchant solutions ushered in a new positive, and the scale of users and the cash-out ability of merchants recovered steadily. Online store-to-store e-commerce services greatly improve efficiency through the technological innovation of AIGC tools and virtual human live streaming, and further expand our geographic coverage and GMV on the basis of break-even on the basis of a more efficient direct marketing and light asset partnership strategy. The company has been in the local life service market of RMB 35 trillion for a long time, and will continue to be the preferred partner for offline merchants and traffic platforms to live locally. As the market matures, arrival e-commerce services will contribute more revenue and more revenue and cross-selling opportunities to other business lines of the company. "

Mr. Zhao Weichen, the company's secretary and general manager of corporate development, said, "in terms of payment services, we are targeted at small and medium-sized merchants in various industries under the service line, and they are a key component of the consumer goods industry, which is less affected by macro-environmental upheaval. This unique positioning enables us to achieve a remarkable year-on-year growth of 33.5% in GPV, demonstrating our business resilience and our ability to thrive in a complex environment. We work with banks to promote joint order collection business, develop digital currency solutions, expand KA brand merchants and chain stores, and further expand the coverage of head merchants in various vertical areas across the country. In terms of e-commerce services, the AIGC tool developed by our AI lab can automatically generate short videos and copywriting. Artificial intelligence interactive virtual anchors are widely used in LVB scenarios, increasing our content generation efficiency by 70% and reducing production costs by 90%. On the market expansion side, we cover the sinking market merchants more efficiently through the partner model. On the traffic side, we continue to expand diversified traffic platform partners such as Douyin, Kuaishou, Amap, pinduoduo, etc., to further optimize the company's coverage in catering, leisure, hotel, culture, travel and other industries, and seize the business opportunities contained in the recovery of offline business. In terms of merchant solutions, we integrate many digital business modules into mobile card payment applications, and the one-stop service experience helps us efficiently realize the smooth transformation of customers from payment to merchant solutions. In the first half of this year, customer unit prices have rebounded to nearly the level of the first half of 2022, and there is still a lot of room for improvement in the future. "

Prospect

Mr Lau Ying-Ki said, "We have established operations in Singapore and Hong Kong, China, and set up teams in Indonesia to provide cross-border and local payment services, including bank card and QR code collection and remittance. Looking forward to the future, we will continue to explore and innovate and accelerate our layout on a global scale. We firmly believe that with cutting-edge products, effective execution and unique business model, our customer base will continue to grow, which will enhance the long-term stickiness of merchants and effectively support the long-term sustainable development of the platform. create more value for all stakeholders. "

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