By MIAO Yiwei

Lakala Payment Co Ltd. lost as much as 400 million yuan (US$60 million) last year, the third-party payment company said on Tuesday night, adding that it is facing the most difficult time in three years.

The company said the collapse of revenue was due to the pandemic and global economy changes. Brick-and-mortar stores, Lakala’s main source of income, were often disrupted by the pandemic and lockdowns.

But the real trouble came from within. 

On January 16, Lakala bought 70 percent of Jianlian Technology for 175 million yuan, a move widely criticized. 

Jianlian is a fintech company founded in 2022, and still bleeding money, it lost 1.5 million yuan last year. WANG Guoqiang, president of Lakala, owned 10 percent of Jianlian before the merger.