Youzan achieved substantial growth in revenue in 2019, but is still not profitable.
In the evening of March 27, China Youzan (08083.HK) released the annual results announcement for the year ended December 31, 2019. The announcement shows that China Youzan’s total revenue in 2019 was 1.171 billion yuan (RMB, the same below), a year-on-year increase of 99.7%, and its net loss attributable to its mother was 592 million yuan, a year-on-year increase of 37.2%.
As of December 31, 2019, the company’s stock of paying merchants was 82343, a year-on-year increase of 40%. The number of new paid merchants in 2019 was 54,702.
In addition, the total merchandise transaction (GMV) generated by merchants through SaaS products provided by Youzan in 2019 reached 64.5 billion yuan, an increase of 95% year-on-year.
Youzan is an e-commerce SaaS company. In 2018, Youzan merged with China Innovation Payment to achieve a backdoor listing, and obtained a payment license through China Innovation Payment’s subsidiary, Gao Huitong. After the merger of the two, the listed company was renamed “China Youzan”.
Youzan’s revenue source is divided into three parts: SaaS and extended services, transaction fees, and others.
Specifically, this year’s SaaS and extended service revenue was 744 million yuan, a year-on-year increase of 137.6%. Among them, SaaS revenue was 594 million yuan, an increase of 145.0% year-on-year, which was mainly due to the increase in the number of paid merchants and the average revenue brought by each merchant. Revenue from extended services was 150 million yuan, a year-on-year increase of 112.2%, which was mainly due to the growth of GMV and more merchants using extended services.
This year’s transaction fee income was 334 million yuan, an increase of 41.5% year-on-year. Benefited from the increase in GMV generated by merchants using the SaaS system, it was partially offset by the decrease in the original third-party payment business. Other income was 93 million yuan, a year-on-year increase of 150.0%. In 2019, the company continued to strategically shrink Yiming China and general trade business, but at the same time, the marketing service revenue increased.
In 2019, Youzan ’s cost was 563 million yuan, a year-on-year increase of 45.1%.