Sentage Holdings Inc. is a financial service provider that operates prepaid payment network services in China through variable interest entities. The company enables consumers to purchase goods and services using multipurpose prepaid cards issued by its affiliated operating companies. Its core activities include issuing prepaid cards, providing payment processing services, and offering technology consulting and support to merchant clients. The company does not directly own the operating entities but controls them through contractual agreements known as VIE agreements, allowing it to consolidate their financial results under US GAAP.

Sentage Holdings Inc. generates revenue primarily from two types of fees charged to merchant customers for its prepaid payment network services. The first is technology consulting and support fees, which are based on the estimated annual transaction volume and range from $14,474 to $72,370 per engagement. The second is payment service fees, which are either a percentage of each transaction amount, ranging from 0.3% to 0.5%, or a fixed rate of 0.2% of the agreed annual transaction volume. All revenue is derived from the prepaid payment network stream after the company discontinued its loan repayment and collection management and loan recommendation lines in 2024. The company’s revenue is reported in United States dollars and reflects the fees collected from its sole remaining business line after the discontinuation of its credit related operations.

Sentage Holdings Inc. operates in a highly competitive third party payment market dominated by Alipay and WeChat Pay, which together control the majority of mobile payment transactions in China. The company also faces competition from domestic specialists such as Shandong Chenglian Card Payment Co., Ltd., Qingdao Baisentong Payment Co., Ltd., and Shandong Feiyin Intelligent Technology Co., Ltd. Its competitive advantage stems from holding a valid third party payment license that allows it to issue multipurpose prepaid cards usable across diverse merchants, a capability not available to operators limited to single purpose cards. Additionally, its integration with NetsUnion provides access to a broad clearing network, and its proprietary technology platform supports scalable transaction processing and data management. Despite the dominant market share held by Alipay and WeChat Pay, the company targets niche merchants that require specialized payment solutions and regulatory compliance support. Its licensing status also enables it to partner with banks and payment processors that require proof of third party authorization.

As of the date of this annual report, Sentage Holdings Inc. serves a single corporate customer, Zhiwei Cultural Development (Shanghai) Co., Ltd., for its prepaid payment network services. The company intends to expand its client base to include midsized supermarkets, shopping malls, and online platform operators seeking reliable payment solutions. Its customers are primarily enterprise level merchants that require licensed payment processing and customized technical support. Expansion efforts focus on signing agreements with regional retail chains and online marketplaces seeking to offer prepaid card options to their consumers. The company works closely with its client to tailor payment solutions that meet specific industry needs, such as retail and digital commerce.