- Acquisition expected to accelerate Company’s exposure to local lifestyle services
Yeahka Limited (Yeahka or the Company, HKG: 9923), 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.