Yeahka's Ambitious Expansion: Balancing Short-Term Needs and Long-Term Growth

In the dynamic world of fintech, Hong Kong-listed Yeahka (9923.HK) has announced plans to issue shares, raising funds to fuel its overseas expansion and artificial intelligence (AI) business. This strategic move, completed with significant oversubscription, reflects the company's commitment to balancing short-term working capital needs with long-term growth strategies.

Yeahka, a technology platform based on payment services, has allocated the net proceeds from its share subscription as follows: 40% for overseas expansion, 40% for AI integration, and 20% for working capital and general corporate purposes. This balanced approach allows the company to address immediate working capital needs while investing in long-term growth opportunities.

In terms of specific AI applications and overseas markets, Yeahka plans to prioritize AI Agent applications tailored for specific industries, such as an AI Agent application for the restaurant industry in Southeast Asia. This application aims to enhance efficiency and refine operations, with the first Singaporean brand client expected in the first half of 2025. Additionally, Yeahka will collaborate with Ascentis, a leading Singaporean CRM company it has acquired, to develop and deploy AI-driven marketing agents. These innovations will enable businesses to autonomously plan and execute marketing campaigns and manage customer relationships using natural language processing.

In terms of overseas markets, Yeahka is focusing on Asia, with a significant presence in Southeast Asian markets like Singapore, Indonesia, Vietnam, and Malaysia, spanning over 20,000 retail locations. These investments will drive future growth and revenue by providing more extensive business empowerment solutions to overseas merchants, fostering greater merchant loyalty, and offering sustainable gross margins.



To mitigate the risks associated with international expansion and AI integration, Yeahka has implemented several strategies. Firstly, the company has obtained licenses such as Hong Kong MSO, Singapore MPI, and US MSB, which helps reduce transaction funds and regulatory risks. Secondly, Yeahka has built an intelligent risk control system to further enhance regulatory compliance. In terms of technological challenges, Yeahka focuses on integrating large model capabilities to improve core businesses and achieve scenario-specific implementations, rather than competing head-on with giants in underlying technology. Additionally, the company emphasizes localization and rejects copycat approaches, ensuring AI applications are tailored to specific business needs and user advantages. Lastly, Yeahka's strategic approach aligns with the 2024 industry focus on commercialization and real-world application of large models, positioning the company to effectively navigate the AI revolution.

In conclusion, Yeahka's share issuance and allocation strategy demonstrate a balanced approach to addressing short-term working capital needs while investing in long-term growth opportunities. By prioritizing AI applications and overseas markets, Yeahka is well-positioned to drive future growth and revenue, while effectively mitigating risks associated with international expansion and AI integration. As an investor, keeping an eye on Yeahka's progress in these areas can provide valuable insights into the company's long-term prospects and the broader fintech landscape.