【True Insight Hong Kong Stock Trends】LianLian DigiTech (02598.HK) released its 2023 annual report: Total Payment Volume (TPV) surged 74%, revenue increased by 38% year-on-year, and operating cash flow turned significantly positive.
Zhenzhuo Financial News April 25, 2024 - LianLian DigiTech (ST/HK/2598), a leader in China's digital payment solutions market and the digitalization of global trade, released its 2023 annual report. In 2023, the company's total revenue reached RMB 1.03 billion, a year-on-year increase of 38%; gross profit margin remained at a high level of 56%. The company's non-GAAP profit for the year was RMB 16 million. Operating cash flow significantly turned positive to approximately RMB 95 million.
Continuous Optimization of Business Structure with Significant Year-on-Year Growth in Core Revenue
Leveraging its years of accumulated global license portfolio, extensive customer infrastructure, and robust product capabilities, LianLian DigiTech saw growth across its main businesses in 2023. Digital payment services, accounting for over 80% of the company's annual revenue, increased by 39% year-on-year to RMB 870 million. The company's Total Payment Volume ("TPV") surged by 74% year-on-year to RMB 2.0 trillion. Within digital payment services, global payment revenue rose 37% to RMB 660 million, domestic payment revenue grew 44% to RMB 220 million, and value-added service revenue increased 47% to RMB 130 million, gradually becoming a new highlight for the company's performance growth.
Active Customer Base Surges Over 51% to 1.3 Million, Highlighting One-Stop Service Advantages
As of December 31, 2023, LianLian DigiTech established a global license portfolio comprising 64 payment licenses and related qualifications, covering seven key markets including Hong Kong (China), Singapore, the U.S., the U.K., Thailand, and Indonesia. Its service scope spans over 100 countries and regions, supporting transactions in more than 130 currencies.
In 2023, LianLian DigiTech served 1.3 million active customers, a 51% year-on-year increase. The company also developed and provided comprehensive solutions for merchants and enterprises in China and globally, striving to build close partnerships with key players in the e-commerce ecosystem. It created diverse digital payment application scenarios, offering one-stop digital solutions for cross-border e-commerce clients, platform and institutional clients, foreign trade clients, and overseas education institution clients, among others.
For platform and institutional clients, LianLian DigiTech built a one-stop payment experience, enabling clients to connect to its global payment network in one go, significantly improving integration efficiency. For foreign trade clients, the company combined system and manual approaches to accelerate transaction background reviews, effectively controlling risks while continuously enhancing customer experience. For overseas education institution clients, LianLian DigiTech collaborated with card organizations such as Visa, Mastercard, and American Express to provide card payment services.
Looking ahead, LianLian DigiTech will continue to seize the growth potential of the global trade market and the opportunities presented by the digitalization and internationalization of Chinese enterprises in 2024, further expanding its global business. The company will particularly strengthen its presence in Southeast Asia, the Middle East, and Latin America. At the same time, LianLian DigiTech will continue to enhance its technological capabilities, innovate and iterate solutions, and explore cutting-edge technologies in digital payments and fintech, aiming to improve its ability to serve global clients.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
