Acquisition expected to accelerate Company's exposure to local lifestyle services
HONG KONG, Nov 11, 2021 - (ACN Newswire) - Yeahka Limited ("Yeahka" or the "Company", Stock Code: 09923), a leading
payment-based technology platform in China, announced today that it has agreed to invest RMB100 million in Dingding
Cultural Tourism (Chengdu) Co., Ltd. (the parent company of Qianqianhui, "Qianqianhui") as registered capital and
capital reserve of Qianqianhui. Following the acquisition, Yeahka will hold 60% of the enlarged share capital of
Qianqianhui, and Qianqianhui will be integrated into Yeahka's in-store e-commerce services solutions segment.
Yeahka's strategic investment in Qianqianhui further strengthens the Company's capabilities in its technology-enabled
business services segment by deepening the connection between merchants and consumers, and improving the sales
performance of merchants. At the same time, consumers will be able to conveniently enjoy local lifestyle benefits such
as discounts and promotions.
Liu Yingqi, Chairman and Chief Executive Officer of Yeahka, said, "Qianqianhui has been a highly competitive player in
the local lifestyle services market in China, and our company delivers services to millions of merchants that have
expressed a great deal of interest in more local lifestyle service solutions. We look forward to continuously creating
value for merchants and consumers, and realizing synergies between our existing businesses."
Chen Jiading, Founder of Qianqianhui, said, "Qianqianhui has accumulated extensive experience and capabilities in local
lifestyle services, e-commerce services and the distribution through of new media KOL. We are delighted to join the
Yeahka family and look forward to writing the next chapter as we roll out our combined capabilities in the local
lifestyle services market.
Qianqianhui is a highly competitive player in local lifestyle services, delivering a high of nearly RMB100 million in
GMV in a single month
Established in May 2020, the Qianqianhui platform positions itself as a popular "high-end shopping platform," offering
users access to tourist attractions, high-end resorts, buffets, catering, other local lifestyle services and products.
In just the half year following its establishment, Qianqianhui achieved breakthroughs in terms of both revenue and
business scale. To-date, the platform has served more than 6 million merchants, and its peak monthly GMV has exceeded
RMB93 million. Qianqianhui has branches in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, as well
as key provincial cities such as Chengdu, Hangzhou, Changsha and Suzhou.
As a highly competitive player in the local lifestyle services sector in the post-mobile Internet era, Qianqianhui has
emerged as a strong player through its precise product positioning and the extensive experience of its management team.
In terms of merchandising, with its high-quality product supply chains and diversified channels, Qianqianhui helps
merchants increase exposure and sales, reduce inventory pressure and lower customer acquisition costs while helping
consumers obtain products and services with better value-for-money.
Qianqianhui's product supply chain business covers more than 200 cities nationwide, but still has strong expansion
capabilities. At present, the platform targets selected quality merchants, including five to seven-star hotels, special
catering brands and major national catering chains to guarantee a superior user experience.
Qianqianhui has also established comprehensive sales channels to improve its penetration and operational capabilities in
the consumer space. Currently, Qianqianhui has built a comprehensive communications network covering WeChat official
accounts, boasting over 8 million followers, and other mini programs. On the WeChat platform, Qianqianhui also has more
than 3 million registered community experts specializing in social network distribution. It is a leader in terms of KOL
recommendations and shop-visit operations on Douyin. From July to November 2021 alone, the GMV from short videos on
Douyin and live-streaming sales exceeded RMB100 million.
Qianqianhui's founder, Chen Jiading, has accumulated years of experience in the local lifestyle services industry. He
has managed and operated the LianLian Travel Around project for three years. Other core team members also have years of
local lifestyle services experience and are veterans in merchandise product innovation and channel expansion.
Yeahka continues to strengthen its local lifestyle services, and evolve its technology-enabled business solutions
To bolster the Group's development in technology-enabled business solutions, Yeahka has presented its development
roadmap for local lifestyle services in the recent years.
With a market potential of trillions of dollars, the local lifestyle services sector is not sufficiently connected.
According to publicly available data, as at the first half of 2021, Yeahka served over 6.13 million merchants reaching
820 million consumers. Most merchants have expressed strong demand for services that support customer acquisition and
sales, while consumers are constantly looking for more offline local lifestyle benefits, discounts and promotions.
Yeahka officially entered the local lifestyle services sector after launching its in-store e-commerce solutions business
in the second half of 2020. Services such as the "Leshangquan Small Gold Card" and "Leshangquan In-store Services" grew
rapidly after their debut. In the first half of 2021, the Company's in-store e-commerce business served nearly 10,000
merchants, and more than 1.42 million paid consumers. The platform's GMV exceeded RMB71 million, and overall revenue
nearly reached RMB45 million.
For merchants, Yeahka's in-store e-commerce services include guidance from local merchandising experts, design of
promotional packages, and support for launching on e-commerce platforms, payment and SaaS sales networks. The Company
helps merchants precisely drive consumer traffic and improve direct sales through its omnichannel coverage.
For consumers, services such as the "Leshangquan Small Gold Card" and "Leshangquan In-store Services," and the Company's
diversified marketing methods can offer customized and cost-effective in-store or to-home lifestyle services.
Following the integration of Qianqianhui, Yeahka will not only further consolidate its foundation in the local lifestyle
services sector, but also create new growth opportunities for its technology-enabled business service solutions.
For Yeahka's in-store e-commerce business, Qianqianhui's strong supply chain, sales and channel operations will create
strong synergies after connecting with the brands, traffic and technologies of existing businesses, thus further
optimizing the portfolio of its in-store e-commerce business solutions. In addition to the in-store e-commerce sector,
Qianqianhui can also generate strong synergies with businesses such as payment and SaaS digital solutions and boost
development of their businesses.