Finance Link October 29th news (Reporter Guo Zishuo) Several listed payment companies have disclosed their financial reports for the first three quarters. According to the currently disclosed data, the revenue and net income of payment companies in the first three quarters are showing a year-on-year decline trend.

In the first three quarters, Lakala (300773.SZ) achieved main business income of 4.39 billion yuan, a year-on-year decrease of 0.78%; the company achieved a net profit attributable to the parent company's shareholders of 0.513 billion yuan, a year-on-year decline of 17.49%. Lakala explained in the financial report that the after-tax net profit attributable to the parent company in the first three quarters decreased by 95 million yuan year-on-year, mainly due to investment income of 50 million yuan included in the same period last year, and the seasonal differences in payment service revenue, among other factors.

XGD Inc. (300130.SZ) achieved operating income of 2.445 billion yuan in the first three quarters, a year-on-year decrease of 15.53%; net profit attributable to the listed company's shareholders was 0.297 billion yuan, a year-on-year decrease of 46.18%. Among them, XGD Inc.'s non-operating expenses increased by 117932.10% year-on-year, reaching 0.335 billion yuan. XGD Inc. explained in the third-quarter report that this was mainly due to tax adjustment issues related to its subsidiary Jialian Payment for the current reporting period.

Newland Digital Technology (000997.SZ) achieved operating income of 5.573 billion yuan in the first three quarters, a year-on-year decrease of 5.27%; net profit attributable to the listed company's shareholders was 0.819 billion yuan, a year-on-year increase of 0.07%. "The company's operating income in the first three quarters has declined, mainly due to the impact of Regulatory Document No. 259 on regulatory reform policies, accelerating the clearing-out of the third-party payment industry, which led to a general decrease in industry transaction volume." Newland Digital Technology explained in the third quarterly report.

Analyst Wang Pengbo from Broadcom Consultancy, specializing in the financial industry, told Finance Link reporters: 'On one hand, the macroeconomy has not yet reached an absolute turning point, mobile payment transactions have peaked, and overall transaction volume has significantly decreased after bank card acquiring; on the other hand, with increased compliance requirements, operational costs have also increased. For example, some companies are heavily impacted by the need to pay taxes or fines, which greatly affect profits. In addition, continuous technological innovations in the payment industry may have a longer return cycle, making it difficult to bring significant revenue growth in the short term.'

Some companies predict signs of stabilization in the scale of scan code payments.

Upon review, the payment transaction volume of payment companies in the first three quarters has decreased year-on-year. In the first three quarters, Lakala's payment transaction volume was 3.19 trillion yuan, a 6.04% year-on-year decrease. Among them, scan code transactions grew rapidly, with a transaction volume of 1 trillion yuan, a 18.86% year-on-year increase; bank card transactions amounted to 2.18 trillion yuan, a 14.80% year-on-year decrease, which was lower than the overall industry level. Meanwhile, Newland Digital Technology's total transaction scale in the first three quarters was approximately 1.55 trillion, a 19.69% year-on-year decrease.

"Previously, the transaction scale of payment institutions was relatively high," Wang Peng further explained that payment transaction volume is closely linked to macroeconomic performance, regulatory trends, and fee changes. When the above factors stabilize, the transaction scale of various institutions may return to a stable state.

Some payment companies also indicated in their quarterly reports that there are signs of stabilization in their scan-to-pay transaction volume. Newland Digital Technology pointed out in the quarterly report that with the increasing enthusiasm of consumer spending, the consumption market began to stabilize and improve in September. The scan-to-pay amount and the average number of transactions per user showed an upward trend that month. By the end of the third quarter, the company's scan-to-pay amount as a percentage had increased by 6 percentage points compared to the same period last year, and the scan-to-pay transactions as a percentage had increased by 3 percentage points compared to the same period last year.

At the same time, Newland Digital Technology disclosed in their third-quarter report that the company plans to distribute mid-year dividends for 2024, based on the total amount of shares entitled to profit distribution, distributing cash of 3.30 yuan (tax included) per 10 shares.

Lakala Payment had previously announced that the company's mid-year profit distribution plan for 2024 is to distribute a cash dividend of 4 yuan (tax included) per 10 shares to all shareholders, with a total cash dividend distribution of 320,007,976.80 yuan (tax included). XGD Inc. also stated that the company plans to distribute a cash dividend of 2 yuan (tax included) per 10 shares to all shareholders based on the total share capital as of the record date for implementing the profit distribution plan, calculated at 560,301,923 shares as of August 15, 2024, totaling a cash dividend distribution of 112,060,384.60 yuan. There will be no bonus shares or capital reserve conversion into share capital in this distribution. According to China Fortune, there is currently no clear timetable for Lakala Payment and XGD Inc.'s mid-term dividend distribution.