Continuous enhancement of commercialization capabilities in the payment and digital business ecosystem

Significant progress in overseas expansion

Wider application of AI technology

HONG KONG, 28 AUGUST 2024/NEWS/-- CHINA'S LEADING PAYMENT AND DIGITAL BUSINESS TECHNOLOGY PLATFORM - TRANSFER CARD LIMITED (“TRANSFER CARD” OR THE “COMPANY”, STOCK CODE: 9923.HK) IS PLEASED TO ANNOUNCE ITS INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024 (“IN THE PERIOD” OR THE “FIRST HALF”).

Business and Financial Summary

• One-stop payment services remain the industry leader, with a solid position as an app-based payment leader, with daily transaction volumes peaking at nearly 60 million;
• In the context of high underlying and macroeconomic volatility in the same period last year, the total payment transaction volume (GPV) for the six months ended 30 June 2014 was RMB1166.2 billion, down 17.8% compared to the same period in 2013;
• SOLID COMMERCIALIZATION CAPABILITY, KEEPING THE PAYMENT RATE AT 12.3 BASIS POINTS;
• Revenue for the six months ended 30 June 2004 amounted to RMB1,577.7 million, a decrease of 23.5% compared to the same period in 2003;
• Revenue contribution from non-paid digital business services (including merchant solutions and to store e-commerce services) continued to rise to 14.6% from 11.0% of total revenues for the six months ended 30 June 2003;
• The overall gross profit margin increased from 17.7% for the six months ended 30 June 2003 to 19.0% for the same period in 2014;
• The contribution of gross profit from non-paid digital business services continued to increase from 52.6% of the total gross profit for the six months ended 30 June 2003 to 69.1% for the same period in 2014;
• Sales and administrative expenses for the six months ended 30 June 2014 decreased by 11.2% compared to the same period in 2003 as a result of wider application of artificial intelligence;
• The cost of financing for the six months ended 30 June 2004 decreased by 6.2% compared to the same period in 2003;
• Profit for the six months ended 30 June 2014 was RMB32.6 million, exceeding the profit for the full year of 2013; and
• As of 30 June 2014, due to the Group's early repurchase of the Company's convertible bonds, the asset liability ratio decreased to 41.1% as of 30 June 2014 due to the Group's use of internal cash flow.

Mr. Liu Ying-qi, Chairman of the Board and Chief Executive Officer of the Company, said: “In the first half of 2024, despite the many challenges facing the macro landscape, we remain committed to our long-term vision of becoming a provider of all-round business empowerment services, further enhancing the synergies across business lines and further expanding overseas expansion. And AI technology has been applied more widely. We firmly believe that these measures will strengthen our ability to capture business opportunities in the long term competition and provide a solid foundation for continued profitability and value creation for shareholders. We have made great progress overseas, serving more than 200 global brands and covering more than 20,000 stores. The company we invest in, Full Key Technology, also provides localized merchant solutions for world-renowned brands and continuously enriches product and vertical industry coverage. Overseas markets, especially developed regions, have many economically efficient segments and stronger willingness to pay, giving us a wider margin. In terms of artificial intelligence and technology, we are also further leveraging the big language model for both revenue generation and cost optimization. Our new products are able to help merchants automate pricing to enhance their commercialization capabilities. We also provide precision marketing and automated content generation tools to increase sales conversions. We also applied AI to our own customer service systems, significantly reducing our sales and management costs. Our ESG (Environmental, Social and Governance) work has also received international recognition. For example, we were included in the S&P Global Sustainability Yearbook 2024 and ranked China number one in our industry. We serve merchants and consumers who are less served in various communities at home and abroad. In the first half of this year, we built a green data center that increased total energy utilization by about 7% and processed 12 million high-risk transactions through broader AI applications.”

Mr. Chan, Managing Director, Capital Markets, said, “We have further enhanced the commercialization capacity of non-payment services, as well as our revenue and profit contribution, which makes our services more comprehensive and resilient. The profitability of these non-paying businesses is also increasing year on year. We have also significantly improved the sales efficiency of our in-store e-commerce services and are expected to achieve profitability over the next six months, which will also lead to long-term sustainable growth. We've upgraded our one-stop payment business model to cover more depressed areas, opened up more vertical industry markets, served more, more profitable customer groups, and expanded customer acquisition channels through deep collaboration with strategic partners. As our product and regional coverage expands, we serve more mid-sized merchants through partnerships with over 5,000 SaaS providers and over 100 banks. Our one-stop payments and other business empowerment services give us enough unique advantages to meet the diverse digital needs of medium and large merchants. As a result, we are able to maintain our market leadership on a solid foundation. We have been committed to building on our extensive payment platform, extending to the full range of digital business needs of our merchants. This comprehensive solution makes us more flexible than our peers when expanding. Now that “going global” is becoming increasingly important, and we will play an increasingly important role in the global digitization process.”

prospect

“We are committed to being the preferred business empowerment service provider for merchants, while maintaining the market leadership we have established in the one-stop payment services sector,” said Mr. LAU. As we upgrade our business model with intrinsic synergy effects, we continue to work to accelerate the growth and profit contribution of other services, including merchant solutions and in-store e-commerce services. We have a solid foundation to further expand our international business, move into attractive areas, and apply AI tools to commercialize and more efficiently, with our strong foundation, supported by our technical layout, merchant service insights, and domestic and foreign business networks. Through decades of unwavering commitment to our vision and business model, these strategies will build a natural moat for us against other peripheral factors, while giving us a leading edge that will, in the long run, allow us to exploit opportunities in a wider market.”

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About Transfer Card Co., Ltd. (stock code: 9923.HK)

Shift Card is a leading business empowerment technology platform focused on creating value for merchants and consumers. We are committed to expanding our independent business digital ecosystem to (i) provide seamless, convenient and reliable payment services to merchants and consumers through our one-stop payment services business, and (ii) enable merchants to better manage and drive business growth through our merchant solutions business long, and (iii) provide consumers with value-for-money local living services through our in-store e-commerce services business.

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For investor and media inquiries, please contact:

Transfer Card Co., Ltd
Investor Relations Team
E-mail: ir@yeahka.com