Yeahka Limited

In 1H25, revenue increased 4% year over year to RMB 1.64 billion from RMB 1.57 billion in 1H24. Gross profit rose 27.6% to RMB 383 million, and gross margin improved to 23.3% from 19.0%. Net profit was RMB 41.3 million, up 27% from RMB 32 million, and adjusted EBITDA increased 6.2% to RMB 173 million from RMB 163 million. One-stop payment service gross margin rose from 6.9% to 13.7%, while merchant solutions gross margin improved from 90.9% to 91.3%. Management did not provide formal next-quarter or full-year financial guidance, but said it remained confident in continued GPV and fee-rate growth for the rest of the year, and highlighted overseas GPV of RMB 1.5 billion in 1H25, already above full-year 2024 GPV of about RMB 1.1 billion.

The CEO framed the half as evidence that Yeahka’s strategy is working: product innovation, AI commercialization, and international expansion are translating into stronger growth, higher efficiency, and better profitability. He emphasized that overseas business, AI-generated digital human videos, and in-store e-commerce are becoming meaningful growth legs, and said the company is building a “borderless” merchant platform beyond payments. His tone was confident and expansionary, with repeated references to global scale, market leadership, and long-term upside.

The CFO focused on the financial benefits of operational leverage and cost discipline. He cited revenue of RMB 1.64 billion, gross profit of RMB 383 million, net profit of RMB 41.3 million, and adjusted EBITDA of RMB 173 million, alongside gross margin expansion to 23.3%. He said selling, administrative, and R&D expenses fell 19.3% year over year thanks to AI integration, financing costs declined 52%, and the debt ratio improved from 35.9% at year-end 2024 to 33.4% in mid-2025. He also highlighted higher take rates in payments, merchant solutions gross margin above 90%, and the profitability of in-store e-commerce after the strategic upgrade.

Analysts pressed on GPV trends, fee-rate sustainability, shareholder returns, new investment opportunities, domestic competition, overseas expansion, and cross-border payments. Management said GPV improved sequentially in Q2 versus Q1 in both traditional and app-based payments despite industry softness, and that the higher fee rate of 12.5 was driven by broader partner networks, more higher-quality/larger customers, and more refined pricing; they said the strategy still appears to be working. On overseas, management stressed the structural advantage of higher fee rates, margins, and transaction values, noted new licenses in the U.S. and Japan, and said tighter overseas licensing rules create barriers to entry. They also said larger domestic players are gaining share because of better service, more value-added offerings, and stronger risk-management capabilities, and they expect cross-border demand to benefit from supply-chain restructuring.