Yeahka (9923.HK) Raises HK$787.7 million in Placing of Existing Shares and Subscription of New Shares

HONG KONG, Dec. 3, 2020 /PRNewswire/ -- YEAHKA LIMITED ("Yeahka" or the "Company", stock code: 9923.HK), a leading payment-based technology platform in China, announced that the Company has entered into a top-up placing transaction. A total of 20,795,052 shares will be placed at HK$37.88 per share. The gross proceeds from the placement and subscription are approximately HK$787.7 million. Morgan Stanley and Credit Suisse are the joint global coordinators for this placement.

The shares will be placed at HK$37.88 per share to investors who are independent third parties, representing a discount of approximately 8.83% to the closing price of HK$41.55 per share on December 3, 2020. The number of shares under the placement and subscription will represent approximately 4.65% of the issued share capital of the Company upon completion of the transaction. The Company intends to use the net proceeds for developing and enhancing the Company's marketing services, investing in new initiatives, recruiting talents to support the Company's technology-enabled business services, and for strategic alliances with, investments in or acquisitions of business service providers.

With the Covid-19 pandemic in 2020, customers increasingly rely on diversified marketing strategies to restore sales, further expand business, as well as establish and enhance stickiness of target customers. The Company's precision marketing business has expanded rapidly since 2020. Revenue generated from marketing services increased by 1,182.5% year-on-year for the six months ended June 30, 2020. Meanwhile, from July 1, 2020 to October 31, 2020, total impressions on the Company's marketing platform for precision advertising nearly doubled compared with that of the first half of 2020. In addition, the Company successfully acquired Chuangxinzhong, a leading content performance marketing service provider in China. This acquisition brings substantial synergies to Yeahka and together, the two parties will expand the Company's marketing services.

Yeahka intends to use 25% of the net proceeds from the placement for the continuous development and enhancement of its marketing services. In addition, the Company intends to use a further 25% of net proceeds for investments in new initiatives that are highly complementary to the current business, including value-added services such as solutions for setting up online stores, membership management or social media marketing to merchants. Furthermore, the Company intends to use 15% for recruitments related to the Company's technology-enabled business services to enhance big data analytics and artificial intelligence technologies of the Company's data management platform, and develop diversified merchant SaaS products and marketing solutions, and to attract talents for the support of acquisitions such as Chuangxinzhong. A further 15% will be used for strategic alliances with, investments in or acquisitions of highly complementary business service providers, including advertising platforms and SaaS developers. The remaining 20% will be used for general working capital and corporate purposes.

Mr. Luke Liu, Chairman of the Board, Chief Executive Officer and Executive Director of Yeahka, said, "Despite the challenges brought by the Covid-19 pandemic, the Company has developed rapidly in the first half of 2020. In addition, as of October 31, 2020, the number of active customers using Yeahka's payment services regained pre-Covid-19 levels and we reached nearly 600 million consumers via our payment services. Revenue and customer base of our major SaaS products continued to grow. This Placement will help supplement long-term funding for our expansion plan and strategies, broaden our shareholder base and increase our financial strength. Looking forward, we will continue to take advantage of the post-pandemic opportunities brought by the digital transformation of small and micro sized merchants, accelerate the pace of product and service innovation, and increase our strategic investments. Leveraging its payment platform, Yeahka will connect millions of merchants and hundreds of millions of consumers to create a comprehensive technology ecosystem powered by data that interacts with the merchants and customers. Yeahka will in turn continue to create value for them."


YEAHKA LIMITED ("Yeahka" or the "Company") is a leading payment-based technology platform in China providing payment and technology-enabled business services to merchants and consumers. According to Oliver Wyman, we are the second largest non-bank independent QR code payment service provider in China, with approximately 14.0% market share in terms of transaction count in 2019. The Company's value proposition is a cohesive ecosystem that enables seamless, convenient and reliable payment transactions between merchants and consumers, and leveraging its vast customer base and data assets accumulated from payment services, to further offer a rich variety of technology-enabled business services, including (i) merchant SaaS products, which help customers improve their operational efficiency, (ii) marketing services, allowing customers to effectively reach their target markets, and (iii) fintech services, which cater to customers' financial needs.

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