Merchant services provider Youzan Technology Ltd. (6051.HK) announced on Monday it expects to report revenue of 765 million yuan ($113 million) to 775 million yuan for the first half of this year, up 7.2% to 8.6% year-on-year. It said its net profit ranged between 65 million yuan and 72 million yuan, down by as much as 11% from about 73 million yuan a year earlier.
The company attributed the revenue growth to its efforts to attract more high-quality merchants, which drove a steady increase in revenue contribution per merchant, as well as initial progress in commercializing AI. But expansion of its sales talent pool and increased investment in AI-related projects during the period caused its expenses to rise alongside revenue and weighed on its profit.
The company’s shares opened higher on Tuesday before reversing course, falling 1.76% to HK$1.395 at the midday break. The stock has lost about 49% since the start of the year.
By Lee Shih Ta
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