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Lianlian DigiTech's Stellar Revenue Surge Sets New Industry Standards

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Lauren Miller

May 8, 2024 - 03:39 am

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Lianlian DigiTech Achieves Significant Financial Gains with Transformative Business Strategies

In a recent release of its 2023 Annual Report, Lianlian DigiTech Co., Ltd., a giant in the digital payment solution industry in China and a key driver of global commerce digitalization, disclosed an impressive year of financial performance, characterized by substantial growth in revenue and total payment volume. The Hong Kong-listed company (HKEX: 2598) reported that for the year 2023, it achieved a revenue increase of 38% year-on-year, totaling an extraordinary RMB1.030 billion. Alongside its robust revenue gains, the firm upheld a high gross profit margin of 56%.

The tech behemoth didn't just excel in revenue terms; it also managed a remarkable positive shift in its operating cash flow, with non-GAAP earnings reaching an estimated RMB16 million. This has marked a sweeping turnaround, with the operating cash flow estimated to be approximately RMB95 million.

Unprecedented Growth in Digital Payment Services

Over the past year, Lianlian DigiTech's core businesses have seen remarkable advancements, owing to a culmination of years of acquiring global licenses, a strong and ever-growing customer base, and unparalleled product capabilities. Representing the lion's share of over 80% of the total revenue, digital payment services have witnessed a 39% increase to RMB870 million. The company's Total Payment Volume (TPV), an essential indicator of the volume processed through its payment system, has seen a sharp 74% year-on-year ascent to RMB2 trillion.

This surge in the TPV signifies not just the company's ability to retain its existing customer base but also to attract new segments and expand its market reach. In detailed figures, the global payment revenue within the digital payment sector augmented by 37% to RMB660 million, whilst the domestic segment spiked by 44% to RMB220 million. The company's value-added services, a relatively new contender in its portfolio, didn't lag, marking a 47% increase to RMB130 million, thus becoming a significant growth engine for the firm.

Expanding Footprint: A Global License Portfolio

Boasting an inclusive global license layout that comprises 64 payment licenses and necessary qualifications, Lianlian DigiTech has successfully established a remarkable international presence. The company's reach spans across seven major markets, comprising Hong Kong, China, Singapore, the United States, the United Kingdom, Thailand, and Indonesia. This expansive network places the company at the forefront of digital payment solutions, serving a diverse customer base in over 100 countries and regions and handling transactions in more than 130 currencies.

Customer Growth: Strengthening Market Dominance

As a testament to the company's increasing influence and market strength, there has been a 51% increment in its number of active customers, soaring to an impressive 1.3 million by December 31, 2023. This upsurge showcases the company's success in implementing customer-centric strategies and creating a myriad of digital payment application scenarios.

Lianlian DigiTech's adeptness at understanding various customer needs has paved the way for providing comprehensive digital solutions. The firm caters to a diverse clientele, including those involved in cross-border e-commerce, platform and institutional clients, foreign trade enterprises, and overseas education institutions, delivering a seamless one-stop service experience.

Vision for the Future: Riding the Wave of Digitalization

Looking towards an ever-changing economic horizon, Lianlian DigiTech is strategically positioned to capitalize on the burgeoning potential of global trade. The company has geared itself to ride the wave of digitalization, particularly noting the prospect of globalizing Chinese enterprises. With the digital economy taking centre stage, Lianlian DigiTech's forward-thinking vision places it at a vantage point to harness the sweeping trends of digitalization and to anchor itself as a global leader in the sector.

Conclusion

Reflecting on the year 2023, it is clear that Lianlian DigiTech has delivered an exceptional performance, setting new industry benchmarks and demonstrating its capacity for sustained growth and innovation. As it navigates an increasingly digital future, Lianlian DigiTech remains unwavering in its commitment to excellence, customer satisfaction, and strategic global expansion. With such robust foundations, the financial community eagerly anticipates its continued growth and success in the years to come.

For more details and insights regarding the accomplishments of Lianlian DigiTech, interested parties are invited to access the full 2023 Annual Report on the company’s official website or through PRNewswire.

(Should you wish to reach out to Lianlian DigiTech for further information or comment, you might inquire via the contact links facilitated on their corporate website or through their media relations department.)