Group 1 - The Hang Seng Index rose by 0.78%, gaining 185 points to close at 24,073 points, while the Hang Seng Tech Index increased by 1.29% [1] - The trading volume in Hong Kong reached HKD 117.2 billion in the morning session [1] - Stablecoin-related stocks surged, with Guotai Junan International rising by 16%, Multi-Point Smart increasing by 8%, and OSL Group also up by 8% [1] Group 2 - Jinyong Investment experienced a 150% surge due to a strategic partnership with AnchorX to explore stablecoin applications [2] - Kuaishou-W saw a 3% increase, with institutions expecting the company's Q2 performance to meet market expectations [2] - Gold stocks rebounded in the morning session, with Tongguan Gold rising by 6% and China Gold International increasing by 3.82% [2] Group 3 - Huitongda Network rose over 7% after applying for full circulation of H-shares, which is expected to enhance stock liquidity and investment attractiveness [3] Group 4 - Basestone Pharmaceuticals-B increased by over 4% after granting commercialization rights for Sugli to Gentili in Western Europe and the UK [4] Group 5 - GCL-Poly Energy rose over 9%, with the polysilicon segment potentially becoming a breakthrough point for reversing internal competition, and the company is expected to achieve profitability [5] Group 6 - China Rare Earth Holdings rose over 7% after a failed transaction involving the sale of an Australian gold mine, and plans to spin off its business through an introduction [6] Group 7 - Hon Teng Precision rose by 8.8%, driven by strong performance in AI servers and iPhone business, with Foxconn showing steady growth in Q2 [7] Group 8 - Zhaoyan New Drug increased by over 10%, assisting in the approval of the restructuring of human coagulation factor VIIa for Chengdu Tianqing [8] Group 9 - Steel stocks saw a midday rally, with Chongqing Steel rising by 11%, as institutions expect improvements in industry supply and demand [9]

Summary of Multi-Point Digital Conference Call Company Overview - Multi-Point Digital is a leader in retail digitalization, benefiting from the growth in digital demand and the application of AI technology in vertical industries, particularly in its core businesses of operating systems and AIoT solutions [2][3] Core Business Segments - The company operates primarily in two segments: operating systems and AIoT solutions. The operating system encompasses various aspects of store management, inventory management, payment, procurement, logistics, and customer relationship management. AIoT solutions combine software and hardware, integrating AI technology [4][5] Financial Performance - The company reported a rapid growth in international business revenue, which is expected to reach 160 million yuan in 2024, a year-on-year increase of 28%, accounting for nearly 9% of total revenue [2][9] - The gross margin for SaaS software is approximately 70%-80%, while the gross margin for AIoT solutions has improved from 10% to nearly 20% [2][10][11] - The adjusted net profit for 2024 is projected to be close to 30 million yuan, with expectations for continued profit growth in 2025 and 2026 [4][13] Market Strategy - The domestic retail industry is undergoing transformation, with increasing demand for high-quality service experiences. Multi-Point Digital is actively collaborating with major retailers like Pang Donglai and Bubugao to develop standardized software modules [7][8] - The company aims to optimize its customer structure by expanding its third-party and international client base, which will drive revenue growth [6][10] International Expansion - Multi-Point Digital has established partnerships in international markets, including collaborations with DFI to provide systems for 7-Eleven and Mannings in Hong Kong, and is expanding into Southeast Asia [9][10] AI and Technology Integration - AI applications are being utilized to enhance operational efficiency and reduce costs. The company has implemented AI systems that have generated significant profit increases in retail environments [14] - The integration of stablecoins for cross-border payments is being explored, with partnerships established to enhance competitive positioning in the market [15][17] Future Outlook - The company is optimistic about maintaining a revenue growth rate of 15%-20% in the coming years, driven by its dual business model of operating systems and AIoT solutions [13][20] - The current valuation is approximately 4 times price-to-sales (PS), which is considered low compared to other digital software companies, indicating significant long-term growth potential [19][20] Key Takeaways - Multi-Point Digital is well-positioned in the rapidly growing retail digitalization market, with strong partnerships and a focus on AI and stablecoin integration to enhance its service offerings and market reach [2][19]

Core Insights - On July 4, 2025, Guotai Junan International (01788), Alibaba-W (09988), and SMIC (00981) were the top three stocks by trading volume in the Southbound Stock Connect, with trading amounts of 10.714 billion, 3.571 billion, and 3.184 billion respectively [1] - In the Southbound Stock Connect for the Shenzhen-Hong Kong Stock Connect, Guotai Junan International (01788), Alibaba-W (09988), and Xiaomi Group-W (01810) also led the trading volume, with amounts of 3.641 billion, 3.489 billion, and 2.435 billion respectively [1] Southbound Stock Connect (Shanghai-Hong Kong) - Top active companies by trading volume: - Guotai Junan International (01788): 10.714 billion, net buy of 91.5226 million [2] - Alibaba-W (09988): 3.571 billion, net sell of 334 million [2] - SMIC (00981): 3.184 billion, net buy of 37.2 million [2] - Xiaomi Group-W (01810): 3.087 billion, net sell of 370 million [2] - Meituan-W (03690): 2.379 billion, net sell of 270 million [2] - China Construction Bank (00939): 2.120 billion, net buy of 168 million [2] - XPeng Inc. (09868): 2.108 billion, net buy of 919 million [2] - Tencent Holdings (00700): 1.900 billion, net sell of 145 million [2] - CanSino Biologics (09926): 1.674 billion, net sell of 95.5519 million [2] - Dmall (02586): 1.249 billion, net buy of 30.1596 million [2] Southbound Stock Connect (Shenzhen-Hong Kong) - Top active companies by trading volume: - Guotai Junan International (01788): 3.641 billion, net buy of 50.5414 million [2] - Alibaba-W (09988): 3.489 billion, net sell of 1.153 billion [2] - Xiaomi Group-W (01810): 2.435 billion, net sell of 443 million [2] - SMIC (00981): 1.969 billion, net buy of 39.6 million [2] - Tencent Holdings (00700): 1.777 billion, net sell of 28.7313 million [2] - CanSino Biologics (09926): 1.675 billion, net buy of 19.5 million [2] - Meituan-W (03690): 1.660 billion, net buy of 96.5584 million [2] - XPeng Inc. (09868): 1.480 billion, net sell of 462.813 million [2] - Innovent Biologics (01801): 819 million, net buy of 18.2291 million [2] - China Mobile (00941): 622 million, net buy of 47.7507 million [2]

Summary of Multi-Point Intelligence Conference Call Company Overview - Multi-Point Intelligence, established in 2015, is the largest retail digital solution provider in China and a leading player in Asia, offering comprehensive operational solutions for retail enterprises [6][9] - The company has served 591 clients, including major retailers like Metro China and Lawson, showcasing its expansion capabilities and potential in digital solutions [4][15] Industry and Market Dynamics - The global retail market exceeded 100 trillion yuan by 2023, with significant growth potential for Multi-Point Intelligence as a key participant [9] - The retail digitalization market in Asia is projected to reach nearly 100 billion yuan by 2029, indicating substantial future market space for Multi-Point Intelligence [10] Financial Performance - For 2024, Multi-Point Intelligence reported revenue of 1.859 billion yuan, a year-on-year increase of nearly 20% [2][7] - The company recorded a net loss of 2.19 billion yuan, but after excluding non-operating losses, it achieved a turnaround to profitability [7][8] - The gross margin has been steadily increasing, and the cost structure has significantly improved, laying a solid foundation for sustained performance growth [8] Strategic Initiatives - Multi-Point Intelligence has formed a strategic partnership with HASTK to explore digital asset trading, Web 3 technology, and blockchain ecosystem development, which may benefit from the overall market performance of virtual currencies [2][3] - The company is planning to apply for a renminbi license to enhance cross-border payment efficiency and reduce costs, aligning with its retail payment systems [2][4] - The company has introduced AI technology solutions, such as the AI agent series, which have been successfully implemented in clients like Wumart, resulting in significant cost savings and improved client attraction [2][12] Collaborations and Partnerships - A deep collaboration with the well-known retail brand Fat Donglai has integrated its management philosophy into Multi-Point Intelligence's systems, creating a replicable model for digital transformation in retail [2][13] - The company has also partnered with notable international clients, including DFI and SM Group, and is expanding its presence in Southeast Asia and Europe [17][18] Future Outlook - Multi-Point Intelligence is optimistic about its future growth, particularly in the stablecoin sector, which is expected to synergize with its business development [5][20] - The company aims to enhance its international business, focusing on Asia and Europe, where the retail industry's digitalization is relatively underdeveloped [19] - The subscription and commission-based SaaS model has shown strong customer retention, with a net revenue retention rate of 114% in 2024, indicating robust future growth potential [10][11] Investment Highlights - The company is well-positioned in the retail SaaS sector, leveraging AI technology to enhance product competitiveness and market influence [9][10] - Multi-Point Intelligence's strategic initiatives and partnerships are expected to drive significant growth and investment value in the coming years [20]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net selling from Northbound trading, with a total of HKD 30.47 billion in net sales on July 3, 2023, indicating a bearish sentiment among investors [1]. Group 1: Northbound Trading Activity - Northbound trading saw a net sell of HKD 30.47 billion, with HKD 18.66 billion from Shanghai Stock Connect and HKD 11.81 billion from Shenzhen Stock Connect [1]. - The most bought stocks included Meituan-W (03690), SMIC (00981), and Innovent Biologics (01801) [1]. - The most sold stocks were Alibaba-W (09988), Tencent (00700), and Guotai Junan International (01788) [1]. Group 2: Individual Stock Performance - Alibaba-W (09988) had a net sell of HKD 32.26 billion, with a total trading volume of HKD 71.91 billion, indicating a strong sell-off [2]. - Meituan-W (03690) received a net buy of HKD 9.87 billion, supported by the announcement of a new initiative to invest in 1,200 "Raccoon Canteens" over three years [4]. - SMIC (00981) saw a net buy of HKD 4.78 billion following the U.S. government's lifting of export restrictions on certain chip design software [5]. Group 3: Sector Insights - The healthcare sector, particularly innovative pharmaceuticals, is expected to benefit from new supportive policies from the National Healthcare Security Administration and the National Health Commission [5]. - The social services sector is projected to experience valuation recovery due to favorable government policies aimed at expanding domestic demand [4]. Group 4: Other Notable Stocks - Xiaomi Group-W (01810) had a net buy of HKD 22.71 million, with the CEO addressing order fulfillment priorities [6]. - Multi-point Smart (02586) received a net buy of HKD 61.61 million as it prepares to apply for a stablecoin license in Hong Kong [5].

Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a target price of HKD 13.32 for the next six months [6]. Core Viewpoints - The company is positioned as a leader in the retail digitalization market in China and Asia, leveraging AI and retail SaaS solutions, and collaborating with well-known retail brand Pang Donglai to expand its domestic customer base while steadily pursuing international business growth [4][18]. - The retail digitalization market is vast, with significant growth potential as the current digitalization rate in China's retail sector is notably lower than that of the United States [1][46]. - The company has a strong product matrix focusing on Dmall OS systems and AIoT solutions, covering the entire retail value chain and enhancing customer retention through a sustainable subscription and commission-based SaaS model [2][34]. Summary by Sections 1. Company Overview - The company is recognized as the largest retail digitalization solution provider in China, with a market share of approximately 6.5% in 2023, and a leading position in Asia with a market share of 4.2% [1][19]. - Established in 2015, the company has expanded its operations across various retail formats and into multiple Asian and European markets [19]. 2. Industry Landscape - The retail market is complex and fragmented, with a significant need for digital transformation, presenting both opportunities and challenges for the industry [46][50]. - The global retail market is projected to reach CNY 105.5 trillion in 2024, driven by technological advancements and increasing consumer demand [47]. 3. Competitive Advantages - The company’s comprehensive product offerings and deep industry experience, combined with a unique business model, enhance its competitive edge [2][3]. - The collaboration with Pang Donglai has established a benchmark for retail digital transformation, significantly reducing customer acquisition costs and enhancing brand recognition [17][18]. 4. Growth Drivers - The company has launched several AI Agent solutions tailored for retail scenarios, contributing to substantial profit growth for clients [3][16]. - International business has expanded to nine countries, with a projected revenue growth rate of nearly 30% for 2024 [3][18]. 5. Financial Projections - Revenue forecasts for 2025, 2026, and 2027 are estimated at CNY 2.19 billion, CNY 2.57 billion, and CNY 2.93 billion, respectively, with net profits expected to reach CNY 170 million, CNY 299 million, and CNY 429 million [4][11].

Investment Rating - The report assigns an "Outperform" rating to the company [4][19]. Core Insights - The company, Multi-Point Intelligence, is a leader in retail digitalization, driven by its core operating system and AIoT solutions, which are opening new market opportunities globally [1][4]. - Revenue projections for 2025-2027 are estimated at RMB 22.37 billion, RMB 26.35 billion, and RMB 30.25 billion, reflecting year-on-year growth rates of 20.3%, 17.8%, and 14.8% respectively. Net profit attributable to shareholders is expected to be RMB 1.01 billion, RMB 1.99 billion, and RMB 3.14 billion, with growth rates of 104.6%, 96.4%, and 58.0% respectively [4][8][19]. Financial Summary - Revenue and profit forecasts indicate a strong growth trajectory, with operating income expected to rise from RMB 18.59 billion in 2024 to RMB 30.25 billion by 2027, alongside a significant recovery in net profit from a loss of RMB 2.195 billion in 2024 to a profit of RMB 314 million by 2027 [3][8][10]. - The company’s gross profit margin is projected to improve from 40.34% in 2025 to 42.30% in 2027, indicating enhanced operational efficiency [3][10]. Business Model and Strategy - Multi-Point Intelligence focuses on two main business segments: the retail operating system (Dmall OS) and AIoT solutions, which are essential for the digital transformation of retail [20][29]. - The Dmall OS system is designed to enhance store operations, financial integration, and human resource management, with a strong emphasis on high-frequency, essential modules that exhibit SaaS characteristics [8][29]. - The AIoT solutions are positioned as a key driver for intelligent upgrades in retail scenarios, integrating AI agents and IoT devices to improve efficiency and reduce costs [9][31]. Market Position and Growth Potential - The retail digitalization market in Asia is projected to reach RMB 94.7 billion by 2029, with a compound annual growth rate (CAGR) of 22.5% from 2024 to 2029, indicating significant growth potential for the company [4][8]. - The company has expanded its international presence, serving clients in 10 countries and regions, with overseas revenue reaching RMB 1.58 billion in 2024, a year-on-year increase of 27.9% [41][42]. Customer Base and Retention - As of 2024, the company serves 591 clients, with a notable retention rate of 114%, showcasing strong customer loyalty and the effectiveness of its solutions [37][41]. - Key clients include major retail players such as Metro AG and 7-Eleven, which enhances the company's credibility and market penetration [37][41].

Core Viewpoint - The release of the white paper titled "Current Status and Trends of Chinese Retail Digitalization Enterprises Going Global" highlights the significant role of Chinese retail digitalization companies in the global retail industry's digital transformation, emphasizing the necessity of digital transformation in the retail sector [1][3]. Group 1: Industry Trends - The white paper analyzes the current state of the retail digitalization industry and the changing demands of retailers for digital transformation, indicating a strong need for digital solutions among retail enterprises [3]. - The market size of the Asian retail digitalization industry is projected to reach 94.7 billion by 2029, with a compound annual growth rate (CAGR) of 22.5% from 2024 to 2029, showcasing substantial growth potential in the sector [3]. Group 2: Company Initiatives - Multi-Point Intelligence, as a representative of Chinese digital technology companies, has actively explored and practiced digital transformation solutions over the past decade, establishing a consensus that "retail digitalization is the future" [3]. - The company aims to leverage AI, cloud computing, and big data technologies to deepen its presence in the Chinese market while expanding globally, accelerating the development of retail digitalization [6].

Core Insights - The report highlights the accelerating digital transformation among global retail enterprises to enhance operational efficiency and competitiveness, creating significant opportunities for Chinese retail digital enterprises to expand internationally [2][3] - The demand for digital solutions in the global retail market is increasing, allowing Chinese companies to showcase their capabilities on the international stage and diversify their business [2] - Artificial Intelligence (AI) is expected to significantly improve the retail sector by enhancing customer experience, operational methods, and overall efficiency, with generative AI rapidly influencing retail operations [2][3] Industry Trends - The white paper indicates a high demand for digital transformation among retail enterprises due to rising consumer expectations and the need for further development, with the Asian retail digital market projected to reach 94.7 billion RMB by 2029, growing at a compound annual growth rate (CAGR) of 22.5% from 2024 to 2029 [3] - The retail digitalization industry possesses substantial growth potential, with companies like Multi-Point Intelligence actively exploring low-cost, reusable digital transformation solutions for retail businesses [3] Company Initiatives - Multi-Point Intelligence showcased its core product, Dmall OS, at the NRF APAC 2025 event, along with various AI products such as AI smart shopping guides and AI smart inspections, demonstrating the transformative impact of software and hardware integration on retail operations [4] - The company aims to leverage AI, cloud computing, and big data to deepen its presence in the Chinese market while expanding globally, accelerating the digital transformation of retail and supporting sustainable development in the AI era [4]

Financial Performance - Dmall Inc. achieved a revenue of RMB 1,859,002,000 in 2024, representing a 17.2% increase from RMB 1,585,357,000 in 2023[14] - The gross profit for 2024 was RMB 746,376,000, up 34.6% from RMB 554,701,000 in 2023[14] - The company reported a loss for the year of RMB 2,220,276,000, which is a significant increase from a loss of RMB 655,439,000 in 2023[14] - Adjusted profit from continuing operations for 2024 was RMB 29,795,000, compared to a loss of RMB 276,704,000 in 2023[14] - Total assets as of December 31, 2024, were RMB 1,659,186,000, an increase from RMB 1,377,772,000 in 2023[14] - Total liabilities decreased to RMB 1,018,157,000 in 2024 from RMB 8,142,896,000 in 2023[14] - The net assets improved to RMB 641,029,000 in 2024, recovering from net liabilities of RMB 6,765,124,000 in 2023[14] Market Expansion and Strategy - Dmall Inc. was listed on the Stock Exchange of Hong Kong in 2024, marking a significant milestone for the company[15] - Future strategies include continued focus on digital retail solutions and potential market expansion initiatives[15] - The international business accounted for 8.5% of the total revenue in 2024, driven by significant growth in the Southeast Asian market[21] - The Group's dual-engine strategy focuses on both Chinese and international markets, enhancing collaboration with leading retail enterprises[36] - The Group aims to strengthen its leadership position in the Chinese market while promoting globalization strategies in collaboration with industry leaders[113] Customer Engagement and Retention - The number of customers served by the Group reached 591 in 2024, indicating a growing customer base[16] - The Group's dollar-based net retention rate reached 114% in 2024, indicating strong customer retention and loyalty[95] AI and Technology Innovations - The Group launched ten major innovative AI applications in 2024, enhancing the digital intelligence capabilities across the retail chain[24] - The Dmall Solution 3.0 was successfully launched, incorporating AI technology and introducing cutting-edge applications[31] - The Group's AI agent products include AI Clearance, AI Customer Service, and AI Replenishment, with the AI Replenishment System winning an award in 2024[46] - The AI Clearance program was deployed in over 200 Wumart stores, generating annual profit growth exceeding RMB 1 million for Wumei Group through real-time discount recommendations[50] - AI Customer Service achieved an online resolution rate of 80%, significantly reducing labor costs while maintaining high user satisfaction[50] Operational Efficiency - The Group's intelligent energy efficiency solutions promote energy conservation and emission reduction, contributing to sustainable retail operations[61] - The Dmall store dashboard product has enabled store managers to access key performance indicators in real-time, resulting in an annual saving of RMB 439,000 in store manager working hours[107] - The transportation management system implemented with Sichuan Hongyuan has improved loading efficiency by 10% and increased handover efficiency by 10% through paperless operations[105] Financial Adjustments and Restructuring - Following the restructuring in April 2024, the Group divested all equity interests in Dmall Fresh (Beijing) and ceased operations of the Dmall APP, focusing on retail core service cloud solutions[109] - The Group recorded a loss for the year from continuing operations of RMB2,453.4 million, an increase from RMB749.0 million in the previous year, representing a 227.5% increase[174][176] - The fair value change of convertible redeemable preferred shares increased to RMB 2,275,701 thousand in 2024 from RMB 476,160 thousand in 2023, reflecting a substantial improvement[191] Revenue Breakdown - Revenue for retail core service cloud grew by 39.3% from RMB 1,298.7 million in 2023 to RMB 1,809.5 million in 2024[39] - The retail core service cloud accounted for 97.3% of total revenue in the Reporting Year, with AIoT solutions contributing 55.0% and operating system revenue at 42.3%[117] - E-commerce service cloud revenue plummeted by 98.6% from RMB300.0 million in 2023 to RMB4.3 million in the Reporting Year, as customers shifted to in-house operations[126] Cost Management - The Group's revenue cost increased by 8.0% from RMB1,030.7 million in 2023 to RMB1,112.6 million in the Reporting Year, primarily due to a rise in outsourcing and labor costs from RMB465.5 million to RMB856.5 million[146] - Selling and marketing expenses decreased by 38.8% from RMB150.9 million for the year ended December 31, 2023 to RMB92.4 million for the Reporting Year[161] - General and administration expenses increased by 18.7% from RMB259.4 million for the year ended December 31, 2023 to RMB308.0 million for the Reporting Year[166] Corporate Social Responsibility - The Group is committed to corporate social responsibility, implementing energy efficiency solutions to reduce carbon emissions in retail operations[25] - The Group's intelligent energy efficiency solutions promote energy conservation and emission reduction, contributing to sustainable retail operations[61]