Author | Observer Group

Source | New Economy Observer Group

On August 20, LianLian Digital (02598.HK), listed in Hong Kong, released its 2024 interim financial report.

The report revealed that in the first half of 2024, LianLian Digital's total payment volume (TPV) for digital payment services reached RMB 1.57 trillion, a year-on-year increase of 120.1%. During the reporting period, total revenue amounted to RMB 617 million, up 40.1% year-on-year; gross profit was RMB 325 million, up 20.3% year-on-year, with an overall gross margin of 52.6%, and non-GAAP operating profit reached RMB 16.66 million.

LianLian Digital CEO Xin Jie stated that in the first half of 2024, LianLian achieved outstanding business growth. Its comprehensive global licensing layout, rigorous compliance and risk control standards, two decades of experience serving Chinese enterprises, as well as its extensive global partner network and comprehensive technical, innovative, and service capabilities, have earned LianLian widespread trust from regulatory agencies, partners, and customers, establishing a differentiated competitive barrier.

Publicly available information indicates that LianLian Digital, founded in 2009, is one of China's pioneering digital technology companies that provides extensive payment solutions globally. It successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited on March 28, 2024, with its primary businesses encompassing digital payment services and value-added services.

Currently, LianLian Payment's digital payment services include global payments and domestic payments.

Global payment services have been a growth highlight for LianLian Digital. In the first half of this year, LianLian Digital further expanded its business coverage and cross-border e-commerce platform reach in the global payment sector, continuously enhancing product service capabilities, thereby forging a stronger bridge between China's production capacity and international demand.

Data shows that in the first half of 2024, LianLian Digital's global payment services TPV reached RMB 102.3 billion, a year-on-year increase of 35.4%, with total revenue of RMB 372 million, up 21.9% year-on-year.

Regarding the expansion of global operations specifically, LianLian Digital accelerated its global network layout and upgraded its global service capabilities in the first half of this year.

Among them, in terms of licensing, LianLian Digital successfully obtained the Luxembourg EMI (Electronic Money Institution) license, laying the foundation for entering the European market and promoting its globalization strategy.

Furthermore, LianLian Digital is the only company holding money transfer licenses in all US states. As of June 30, 2024, LianLian Digital has established a global licensing layout comprising 65 payment licenses and related qualifications, providing services covering over 100 countries and regions and supporting transactions in over 130 currencies.

Concurrently, LianLian Digital continues to innovate and provide comprehensive payment solutions for merchants and enterprises in China and globally. In the first half of the year, LianLian successively partnered with DingTalk, the global B2B payment infrastructure platform Thunes, and the UK electronic money institution Guavapay, among others, and innovatively launched the global payment service—LianLian Global Payout Service (abbreviated as "LGPS"), further expanding the boundaries of global payments.

In terms of domestic payment services, in the first half of 2024, leveraging its global layout and payment capabilities, LianLian Digital introduced an enterprise wallet product to assist clients in facilitating global payments and optimizing their financial management and internal control processes. Currently, this product is gradually being promoted among state-owned enterprises, listed companies, industry leaders, and small and medium-sized enterprises.

The interim report shows that during the reporting period, LianLian Digital's domestic payment services TPV reached RMB 1.47 trillion, a year-on-year increase of 130.1%, with total revenue of RMB 170 million, up 117.8% year-on-year.

Moreover, thanks to the traffic contribution brought about by the growth of digital payment services, LianLian Digital's value-added services also experienced rapid growth in the first half of 2024, with total revenue increasing by 41.2% year-on-year to RMB 67 million.

As a digital payment company, LianLian Digital continues to explore the application of cutting-edge technologies in the fields of digital payment and financial technology, continually upgrading and improving its technology platform to maintain industry competitiveness.

The report indicates that LianLian Digital's research and development expenses in the first half of this year were RMB 147 million, an increase of RMB 28.1 million from the same period last year; after excluding share-based compensation expenses, adjusted research and development expenses were RMB 121 million, up 10% year-on-year, primarily due to its continuous investment in technological innovation.

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