Lakala was recently fined by the People's Bank of China (PBOC) for failing to accurately identify and send complete transaction information, and has previously received large fines for failing to comply with customer identification obligations.
Tian Wenhui, a researcher at the Investment Times.
Lakala pays shares*** hereinafter referred to as Lakala, 300773SZ) was punished by the People's Bank of China more than once in the second half of this year. At the same time, the company's operating income growth in the first three quarters of this year was relatively slow.
According to information released on the official website of the People's Bank of China on December 1, the Guangxi Zhuang Autonomous Region Branch of the People's Bank of China decided to fine Lakala Guangxi Branch 30,000 yuan for failing to accurately identify and send complete transaction information. Previously, Lakala was fined 875 by the Beijing branch of the People's Bank of China for failing to fulfill customer identification obligations in accordance with regulations40,000 yuan.
Researchers from the Investment Times noted that Lakala issued the "Notice on Reiterating the Relevant Regulatory Management Requirements of Document No. 259" in October this year, saying that it had taken the lead in implementing Document No. 259 and related regulatory requirements in early September this year, and had taken the lead, ahead of schedule, and fully realized the core requirements of "one machine, one code", eliminated old terminals, and accurately sent transaction information.
In terms of performance, due to the large increase in investment income caused by the equity of **BlueFocus, the net profit attributable to shareholders of listed companies in the first three quarters of this year increased by 50% year-on-year01%, but the operating income increased by only 1 year-on-year59%。
In 2022, the company's performance was not ideal: operating income fell by 18% year-on-year65%；The net profit attributable to shareholders of the listed company turned from profit to loss, and the loss amounted to 143.7 billion yuan.
In the first three quarters of this year, Lakala also saw a net outflow of cash flow, with a net increase of -9,816 cash and cash equivalents in the current period470,000 yuan. Among them, the net cash flow outflow from financing activities was 4RMB1.3 billion, mainly due to a year-on-year decrease of 55.5 in cash received from borrowings9%, cash paid for debt repayment increased by 626 year-on-year36%。
Investment Times sent a communication letter to Lakala on the above-mentioned penalties, cash flow and other issues, but has not received a reply as of press time.
Punished again
Since the second half of the year, Lakala has been punished no less than twice.
According to information released by the People's Bank of China** on December 1, on November 23 this year, the Guangxi Zhuang Autonomous Region Branch of the People's Bank of China decided to fine Lakala Guangxi Branch 30,000 yuan, mainly for failing to accurately identify and send complete transaction information.
Previously, Lakala had been fined a large amount by the People's Bank of China. On August 20 this year, the Beijing branch of the People's Bank of China decided to fine Lakala 87540,000 yuan, the main reasons include: failure to fulfill customer identification obligations in accordance with regulations;Failure to submit large-value transaction reports or suspicious transaction reports as required;Trade with unidentified clients.
On October 27, Lakala issued the Notice on Reiterating the Regulatory Requirements of Circular No. 259 (the "Notice"). According to the Notice, the strict implementation of Circular 259 and related regulatory requirements is the legal obligation and responsibility of all practitioners. In early September this year, Lakala took the lead, ahead of schedule, and fully realized the core requirements of "one machine, one code", eliminated old terminals, and accurately delivered transaction information. At the same time, we will focus on the investigation and revision of merchant information to improve the completeness, standardization and accuracy of information.
The Notice also requires all cooperative institutions to firmly establish a sense of compliance, fully cooperate with Lakala to fully implement various laws and regulations on the management of the acquiring market such as Document No. 259, adhere to the two red lines of merchant real-name system and transaction authenticity, standardize the specific work of non-core business outsourcing, and conduct business in accordance with laws and regulations.
On October 13, 2021, the People's Bank of China issued the Notice of the People's Bank of China on Strengthening the Management of Payment Acceptance Terminals and Related Business (Yinfa 2021 No. 259), which stipulates that one bank card acceptance terminal can only correspond to one acceptance terminal serial number;One bank card acceptance terminal can only correspond to one special merchant;In principle, the bank card acceptance terminal and the barcode payment acceptance terminal should have the positioning function;Effectively distinguish the scenarios and uses of collection barcodes used by individuals and special merchants, and prevent collection barcodes from being rented, lent, or used for illegal activitiesTake effective measures to verify the identity information of special merchants;The clearing institution shall, in conjunction with the acquirer, verify the consistency of transaction information and payment acceptance terminals, and network access information of special merchants.
Circular 259 will come into force on March 1, 2022.
In the "Risks and Countermeasures Faced by the Company" section of this year's semi-annual report, Lakala said that with the continuous expansion of the scale of merchants, some merchant expansion service agencies and contracted merchants may have illegal business practices. In the future, if the company does not manage merchants, manage merchant development service institutions, and monitor and dispose of risky transactions, it may lead to regulatory penalties.
Debt service cash payments increased more than sixfold
In terms of performance, Lakala achieved rapid growth in net profit in the first three quarters of this year, but the growth of operating income was slow.
Specifically, in the first three quarters of this year, the company's net profit attributable to shareholders of listed companies was 62.2 billion yuan, an increase of 50 percent year-on-year01%；Operating income was 442.4 billion yuan, an increase of only 1 year-on-year59%。The sharp increase in net profit attributable to shareholders of listed companies was mainly due to a year-on-year decrease in operating costs1%, and investment income other than operating income increased by 28136%。
However, in the first three quarters of this year, the company's non-operating expenses grew rapidly, increasing by 80% year-on-year03% to 1559710,000 yuan.
According to Lakala's semi-annual report, in the first half of this year, the company's net profit attributable to shareholders of listed companies increased by 54% year-on-year69%, but the operating income fell by 1 year-on-year37%。Among them, the revenue of digital payment business decreased by 054%。Lakala achieved a payment transaction amount of 227 trillion yuan, also down 2 percent year-on-year72%。
For the first half of this year 2The investment income of 7.1 billion yuan, Lakala said that it was mainly due to the increase in investment income from the transfer of part of the equity in the current period and the investment income of associates, and the income from the transfer of equity was not sustainable.
According to the "** major equity situation" in Lakala's semi-annual report, in March, April and June this year, the total amount of Lakala's three ** blue cursors was about 38.3 billion yuan, from the beginning of the current period to the first day, the total net profit contributed by the equity to the listed company is about 14.4 billion yuan, and the proportion of net profit contributed by equity ** to the total net profit of the listed company is about 282%。
Investment Times researchers noted that in the first three quarters of this year, Lakala also saw a net outflow of cash flow, with a net increase in cash and cash equivalents of -9,816470,000 yuan, compared with 2 in the same period last year5.7 billion yuan. Net cash flow from operating activities was 18.6 billion yuan, down 66 percent year-on-year61%；Net cash flow from financing activities was -41.3 billion yuan, compared with 45.9 billion yuan.
Other cash paid in connection with operating activities was 62.5 billion yuan, an increase of 220 percent year-on-year51%。Lakala said that the decrease in net cash flow from operating activities was mainly due to the increase in other current payments from operating activities.
Cash inflows from financing activities were 46.3 billion yuan, down 20 percent year-on-year85 per cent, of which 25.8 billion yuan, down 55 percent year-on-year9%。Cash outflow from financing activities was 87.6 billion yuan, an increase of 595 percent year-on-year24%, of which, 79.9 billion yuan, an increase of 626 percent year-on-year36%。Lakala said that the decrease in net cash flow from financing activities was mainly due to the repayment of bank borrowings in the current period.
Lakala was punished by the People's Bank of China
Source**: Official website of the People's Bank of China.