Total Payment Volume (TPV) Surged by 74% to RMB2 Trillion
Revenue Increased Significantly by 38%
Adjusted Earning of Core Business was RMB16 Million,
with Dramatic Turnaround in Operating Cash Flow
HONG KONG, May 8, 2024 /PRNewswire/ -- Lianlian DigiTech Co., Ltd. ("Lianlian DigiTech" or the "Company", HKEX: 2598), a leader in China digital payment solution market and global commerce digitalization, today published its 2023 Annual Report. In 2023, the Company's total revenue amounted to RMB1.030 billion, a year-on-year growth of 38%. The gross profit margin remained at a high level of 56%. Lianlian DigiTech's own non-GAAP earning amounted to RMB16 million for the year. The Company has registered a significant turnaround to positive operating cash flow of approximately RMB95 million.
With Continuous Optimization of Business Structure, Revenue from Core Businesses Increased Significantly Year on Year
With years of accumulated global license acquisition, strong customer base, and solid product capabilities, Lianlian DigiTech's core businesses registered growth in 2023. In 2023, the revenue of digital payment services, which accounts for more than 80% of the Company's total revenue, increased by 39% to RMB870 million. The total payment volume ("TPV") of the Company's digital payment services also surged by 74% year-on-year to RMB2 trillion. Among the Company's digital payment services, the global payment revenue grew by 37% to RMB660 million. The domestic payment revenue increased by 44% to RMB220 million. The value-added services revenue increased by 47% to RMB130 million, and the value-added services emerged as a new growth highlight for the Company.
Number of Active Customers Increased by Over 51% to 1.3 Million, Highlighting the Advantages of One-Stop Service
As of December 31, 2023, Lianlian DigiTech's global license layout consists of 64 payment licenses and relevant qualifications, covering seven major markets, namely Hong Kong SAR, Mainland China, Singapore, the United States, the United Kingdom, Thailand, and Indonesia. The Company serves over 100 countries and regions and manages transactions in over 130 currencies.
In 2023, the number of active customers Lianlian DigiTech served reached 1.3 million, a year-on-year growth of 51%. Meanwhile, the Company has developed and provided comprehensive solutions for merchants and enterprises in China and around the world. The Company is dedicated to building a close partnership with the essential players in the e-commerce ecosystem. Lianlian DigiTech has created diverse digital payment application scenarios to provide various customer types, including cross-border e-commerce customers, platform and institutional customers, foreign trade customers, and overseas education institutions with one-stop, comprehensive digital solutions.
For platform and institutional customers, Lianlian DigiTech created an integrated one-stop payment experience to enable customers to access Lianlian's global payment network with a single connection, significantly improving efficiency. For foreign trade customers, Lianlian DigiTech leveraged a combination of system-based and manual review to accelerate the review of transaction backgrounds for customers, effectively controlling risks and continuously improving customer experience. For overseas education institutions, Lianlian DigiTech collaborated with card organizations like Visa, Mastercard, and American Express to provide card payment services for overseas education institutions.
Looking ahead, Lianlian DigiTech is poised to seize the potential of global trade and the opportunities presented by the digitalization and globalization of Chinese enterprises. The Company will broaden its international reach, with particular emphasis on markets in Southeast Asia, the Middle East, and Latin America. Meanwhile, Lianlian DigiTech will continue to refine its technological capabilities, innovate relentlessly, and incorporate cutting-edge technologies in digital payments and fintech, elevating its service capabilities to meet the needs of customers across the globe.
About Lianlian DigiTech
Lianlian DigiTech Technology Co., Ltd. ("Lianlian DigiTech") was founded in 2009. As a a leader in China digital payment solution market and an enabler of global commerce digitalization, Lianlian DigiTech leverages the global payment network built upon global license layout, proprietary technology platform and extensive network of partners to provide a full suite of digital payment services and value-added services to customers in China and around the world. The digital payment services include pay-in, pay-out, acquiring, foreign exchange, virtual card and payment aggregation. The value-added services include digital marketing, operation support, referral services, account and e-wallet services, and software development services.
As of December 31, 2023, Lianlian DigiTech had built a global license layout consisting of 64 payment licenses and relevant qualifications. Lianlian DigiTech's business covers a digitally integrated ecosystem of global payments and services, bank card clearing, and other services. The Company served merchants and enterprises from various industries, including trade, e-commerce, retail, travel, logistics, education, real estate and manufacturing, with services covering more than 100 countries and regions, and supporting transactions in over 130 currencies.
