Huifu Releases 2018 Annual Report: Y-o-Y Revenue up 88% amid All-round Accelerated Digital Upgrading
March 26, 2019. Shanghai – China’s leading independent payment company Huifu Co., Ltd. (01806.HK, hereinafter referred to as ‘Huifu’ or ‘the company’) disclosed its first annual performance report after going public. Thanks to continuous and rapid development of the payment industry, the company’s business scale has maintained rapid growth. As of December 31, 2018, the company’s transaction volume in payment services had reached RMB 1.8013 trillion, up 58% from the previous year. Its operating revenue reached RMB 3.246 billion, up 88% from the previous year, and its adjusted net profit reached RMB 263 million, an increase of 51% over the previous year.
Leading the industry: continuous and rapid growth in business scale
As a leading payment and fintech services provider, Huifu has maintained rapid growth in mature business such as mobile payment for small and micro businesses and solutions for vertical industries during the reporting period. The number of small and micro businesses Huifu has been servicing has reached 8.3 million, up from 5.8 million at the end of 2017. The number of industry customers has also risen to 8,700, up from 5,700 at the end of 2017.
Along with continuous growth of customer base and expansion of business scope, in 2018, the company’s transaction volume in payment service reached RMB 1.8013 trillion, up 58% from 2017, higher than the industry average. With the significant increase in the payment volume, the company’s operating revenue reached RMB 3.246 billion, up 88% on a y-o-y basis.
In the meantime, through deepening the cooperation on the solutions for e-exporters, the company’s cross-border business transaction scale has rapidly increased. In 2018, the cross-border payment transaction volume reached RMB 20.2 billion, up 312% year on year, and the operating revenue was about RMB 30 million, up 115% year on year. The company has built strategic cooperation with well-known enterprises at home and abroad. In September 2018, Huifu has become the exclusive strategic partner of global payment giant First Data in China. It is also the official support partner of the World Artificial Intelligence Conference 2018.
Business innovation: integral deployment in the ‘new retail’
In 2018, against the background of accelerated changes in the industry landscape, the use space of accounts and wallets is rapidly expanding, and the role of payment in the industry chain has also changed. It has become more of an entry point for data flow. New retail, which is based on digital marketing, is growing rapidly. Huifu has arranged its innovative business in an all-round way, showing a steady development trend.
Adhering to the concept of ‘technology makes payments easier’, in 2018, Huifu continued to strengthen its cooperation with SaaS providers, the number of the company’s SaaS partners had significantly increased to 137, up from 10 at the end of 2017. It also successfully established business relations with many KA merchants in healthcare and education. The transaction volume within single day keeps reaching new peaks, and the bearing capacity of the system enjoys a leading position in the industry.
Through the cooperation with SaaS providers, Huifu will connect more payment scenarios, further improve its ability in data analysis and processing and provide various financial services to empower SaaS partners and other service providers and their merchants.
Focus on technology to accelerate digital upgrading
Today, digital transformation has become a mega trend. The integration of digitalization and various industries has created innovative business models such as Industry 4.0, new retail, fintech and sharing services. Digitalization is reshaping the payment industry as well.
According to the report, comprehensive digitalization is the core strategic direction of the company in the future. Huifu continues to strengthen R&D and application in areas such as the mobile internet, big data, artificial intelligence, and cloud computing. It will stick to the technical principles of agile development and continuous delivery, follow the technology development trend in the era of 5G, improve the user experience through the adoption of multi-client and multi-screen support, and provide strong technical support and systematic guarantee for the digital upgrading.
During the reporting period, the company kept increasing investment in R&D and strengthening the development of technologies. In 2018, the company invested RMB 232 million in R&D, up 77% from 2017, and researcher staff accounted for more than 40% of the total employees. The company has been working hard to improve the following three core capabilities in an all-round way: processing and operating super-large transactions, supporting account system and wallet in multiple scenarios, and making data-driven intelligent analysis and decisions.
In the future, Huifu will focus on its four major businesses. The acquiring business will continue to expand in terms of business scale, and meet the needs for value-added financial services of small and micro businesses. The new retail business will seize the huge opportunities for market development, continue to strengthen the depth of cooperation with SaaS providers, and improve the distribution of value-added services in fintech, predictive marketing, digital operation and other areas. The industry customization business will be committed to meeting the core needs of customers for self-established account systems and wallet application, and assisting traditional industries such as air-ticketing, logistics and supply chain to complete digital upgrading. The cross-border and international business will actively respond to the regulators’ policy that “payment institutions go abroad”, and comprehensively expand overseas business deployment, strengthen strategic cooperation with international leading industry players, and improve cross-border payment solutions.
Huifu always believes that technology changes payment, payment connects scenarios, scenarios collect data, and data create value. In the future, Huifu will provide payment processing and account settlement services in the digital era through leading technologies and excellent operation; it will stay committed to ensuring the safety of customers’ data assets and creating value for customers.