Huifu sees 39% net profit growth in 2019

Huifu Payment Ltd posted a 39 percent net profit growth in 2019 thanks to booming transaction volume and business expansion of SaaS (software as a service) and cross-border payment services, the Shanghai-based technology firm said on Thursday. 

Hong Kong-listed Huifu surged 6.3 percent to close at HK$2.54 (36 US cents) on Thursday, with an intra-day surge of over 9 percent.

A digital payment service provider, Huifu had a net profit of 243 million yuan (US$34.7 million) last year. Revenue grew 13 percent to 3.68 billion yuan.

The company’s transaction volume in 2019 surged 21 percent to hit 2.2 trillion yuan, surpassing 2 trillion yuan for the first time. Huifu has over 100 enterprise partners including logistics, insurance, funds and B2B platforms.

During the period, SaaS business became a growth engine for Huifu with transactions growing 10-fold. The growth came through partnership with firms such as Hong Kong-listed Weimob, a Tencent-invested firm offering systems for online shoppers now with Huifu’s payment service.

Meanwhile, Huifu’s cross-border business surged 148 percent to 50.1 billion yuan in 2019, when it obtained a key certification from Visa.

The company invested 300 million yuan on research and development in 2019, a 32 percent growth year on year.