Lakala II received inquiries, responded to questions such as high gross profit margin, military replacement business, etc.

Lakala II received inquiries, responded to questions such as high gross profit margin, “military” replacement business, etc.
Lakara, who was asked to explain for reacquisition of a divestiture company less than a year after listing, received an inquiry letter from the Shenzhen Stock Exchange twice within a month.In the evening of May 8, Lacara responded to eight issues such as whether the business still needs to be redistributed, why accounts receivable increased, revenue and net profit growth did not match, and gross profit margins increased.Is the weapon segmentation business still underway?Lakala: The divestiture business is different from the operating business. The Shenzhen Stock Exchange pointed out that the Lakra prospectus shows that it will no longer operate the financial value-added business after replacing the financial value-added business in October 2016, and the growth data of the financial technology business described in the 2019 annual reportIt shows that the company is still engaged in financial value-added services in 2018.Regarding the logical replacement of the relevant content of the prospectus and the content disclosed in the annual report, Lacara replied that in 2016, the company stripped off the financial value-added business. At present, the company is engaged in financial technology business, which is not the same concept or business.Lakala said that before the divestiture of value-added financial business in October 2016, the company’s value-added financial business refers to the small loan business, and the company obtains interest income.The financial technology business (ie, financial value-added service business) in the 2019 annual report includes micro-loan business drainage promotion, wealth management transaction services, credit card issuance promotion, system and solution output and other services, which provide financial technology service income.Lakala also said that obtaining merchants through payment services and providing them with various products and services including financial services are a common business model and business logic of large third-party payment companies.At the company level, due to the relatively small size and proportion of these revenues, in the listing application documents such as prospectuses, these business revenues are accounted for by individual payments and merchant receipts.Does it provide drainage for P2P?Lakala: There are indeed two partners, but there is no compliance risk in the business model. Lakala’s fintech services revenue in 2019 totaled 93.53 million yuan, an increase.08%; of which, 63.92 million yuan for loan drainage services, an annual increase of 110%.Shenzhen Stock Exchange asked, who is the main business partner of the loan drainage service?Is there a way to provide drainage for small loans and P2P platforms?Are there compliance risks?In this regard, Lakala replied that the partners of the company’s loan drainage business are mainly companies such as Guangzhou Lakala Small Loan and Chongqing Ant Small Loan.In 2019, he also led two U.S. listed company partners involved in P2P business, namely Shenzhen Yingzhongtong Financial Information Service Co., Ltd. and Shanghai Youwodai Internet Financial Information Service Co., Ltd.The total business revenue of the above partners totals 53.870,000 yuan, accounting for 0 of the total revenue of loan drainage services.84%.The specific business model is: Lakala uses its own webpage, App and other business platform display and other promotional pages to provide diversion promotion services for the partner’s micro-loan business, and replaces the service fee according to the promotion effect.Lakala said that the financial technology services mainly include the promotion of credit / card issuance business, wealth management transactions and system services, etc. The cooperative partner replaces the licensed operation, and the commercial banks, microfinance companies, and listed companies with better compliance.In the process of providing the above-mentioned services, the company strictly reviews the qualifications of its partners, and replaces the core business transfer that requires the replacement of the partners ‘military qualifications. There is no compliance risk in the business model.Why did revenue decline but net profit increased?Lacara: It is the result of actively adjusting the business strategy. Lacara’s 2019 annual report shows that the company achieved operating income of 48 during the year.9.9 billion yuan, down by 13 every year.73%, the payment business achieved revenue of 43.4.6 billion, down by 16.74%, and the net profit of the mother is 8.6.0 billion, an annual increase of 34.5%.In the first quarter of this year, revenue and net profit growth remained negative and positive.To proceed, the Shenzhen Stock Exchange requested to explain the reason and rationality of the mismatch between revenue and net profit growth.Lakara said in his reply that the scale and revenue of Lakara’s payment transactions have decreased in 2019, which is the result of its active adjustment of its business strategy.At the end of 2016, the company stripped off the value-added financial business, and spent the funds it received on the main payment industry; in 2017, it began to expand its scale and promote smart terminals, etc., which led to a substantial increase in the size of scanning code payment users and business., The company expands the focus on the in-depth operation of merchant services; in 2019, the company focuses on expanding small, medium and micro businesses with high operating value.“In 2019, the company ‘s average card-swapping rate and average net-acquisition rate were basically the same as in previous years, while the transaction scale and the size of active merchants both declined, resulting in a decline in revenue in 2019.However, due to a significant reduction in marketing and promotion expenses, and at the same time, the operating income of high-margin merchants increased rapidly, and ultimately the company’s profits continued to grow in 2019.Lakala said that in the first quarter of this year, the company’s revenue has declined due to the epidemic, but due to the reduction of promotion costs, the cost has been compressed to achieve a net profit1.68 ppm, an annual increase of 5.17%.The gross profit margin is as high as 70.Is 5% reasonable?Lacara: It is a typical feature of a new economy operated by users.In 2019, the business of Lakala merchants mainly includes financial technology, information technology, and e-commerce technology, and the gross profit margin is as high as 70.5% is also required by Shenzhen Stock Exchange to introduce reasons and rationality.Lakala responded to the weighing, and the high gross profit margin of merchants is a typical feature of the new economy of user management, that is, acquiring users through a rigid demand and high-viscosity business, and then fully exploring user needs and satisfying themselves or with partnersUser needs and user operating income, such as WeChat and SQUARE in the United States, are all such business models. This is a sustainable growth business model.On the basis of acquiring merchants through the payment business, the company does not need to pay extra costs for acquired customers for operating various service income generated by the merchants, and the gross profit margin remains at a relatively high level.Sauna, Ye Wang Cheng Weimiao editor Chen Li proofreading Lu Qian