Mobile Payment Network News: On August 26, Fujian Chuangshi Technology Co., Ltd. (hereinafter referred to as "Chuangshi Technology") disclosed its 2022 interim report. During the reporting period, Chuangshi Technology's operating income was approximately RMB 152 million, a year-on-year decrease of 14.14%; net profit attributable to shareholders of listed companies was approximately RMB 39.7 million, an increase of 8.03% year-on-year.
Financial report believes that the repeated epidemic has had a major impact on offline merchants, the business risks of merchants have increased, and the expiration cycle has become shorter. Banks pay more and more attention to the input and output ratio of merchants. Paying for card swiping is getting less and less, and payment acceptance terminals such as cloud speakers and code scanning devices are gradually eroding the smart POS equipment market in small and medium-sized merchants.
information shows that Chuangshi Technology is an electronic payment IT solution provider. It passed the meeting on GEM in September 2020 and officially landed on the Shenzhen Stock Exchange. Chuangshi Technology mainly provides merchants and banks with software and hardware products and services involved in electronic payment, including merchant payment solutions and bank-side products and services.
Among them, the merchant payment solution is Chuangshi Technology's main business, adopting the method of "company development software + cloud platform + outsourcing/OEM hardware + service". Depending on the payment object, there are two modes: "bank payment, merchant usage" and "merchant payment, merchant usage".
"Bank payment, merchant usage" means that the user of its products and services is a bank's special merchant, and the payer is a bank. From the perspective of role composition, it belongs to the "three-party cooperation between merchants, banks and companies" model, and Chuangshi Technology is the bank's collection outsourcing service provider. "Merchant pay, merchant use" means that both the user and the payer of the product are merchants. From the perspective of role composition, it belongs to the "company-merchant" model.
Above picture: Merchant-bank-company cooperation model; below picture: Company-merchant cooperation model
Financial industry customers contributed about 146 million yuan in revenue to Chuangshi Technology, accounting for more than 96%. According to product division, the revenue of merchant hardware products is approximately 115 million yuan, accounting for more than 75% of the total revenue.
It is worth noting that Chuangshi Technology's customers are mainly Agricultural Bank of China. During the reporting period, the revenue from Agricultural Bank of China accounts for as much as 89% of its operating income. In the past five years (2017, 2018, 2019, 2020, and 2021), this proportion was 90.19%, 89.64%, 87.75%, 92.02% and 93.52% respectively, and Agricultural Bank of China can be regarded as its "VIP" customer. To this end, the supply contracts for POS, smart payment terminals, cloud speakers and scanning code series signed by Chuangshi Technology and Agricultural Bank of China stipulate that they will be delivered with each batch of equipment, and spare equipment with 5% of the total batch of equipment will be given to them without additional charges.
Financial report points out that Chuangshi Technology and Agricultural Bank of China have a history of more than 20 years. Both parties have high trust and strong stickiness, but excessive customer concentration has brought certain risks to the operation, especially its impact on its income structure and revenue volatility. If the Agricultural Bank of China's demand for Chuangshi Technology's business declines or turns to other competitors, it will have a significant adverse impact on its future production and operation.
