Summary of the Conference Call for Lianlian Digital Company Overview - Lianlian Digital operates primarily in two segments: digital payment services (87% of revenue) and value-added services (10% of revenue) [3] - The company’s overall GDP for 2024 is projected to be approximately 3.3 trillion, representing a year-on-year growth of 65% [2][3] - Global payment accounts for 61% of total revenue, while domestic payment accounts for 26% [3] Financial Performance - Overall revenue growth for the company is expected to be 28% year-on-year [2][3] - Global payment GDP is estimated at 281.5 billion, with a growth rate of 64% [3] - Domestic payment GDP is projected at 3 trillion, also with a year-on-year growth of 65% [3] - Global payment fee rate remains stable at around 0.3%, with a gross margin of approximately 72% [2][3] - Domestic payment fee rate is about 0.1%, with a gross margin of 20% [2][3] Future Strategy - The company plans to increase investment in cross-border payments, targeting local cross-border e-commerce and tourism sectors [2] - Expected annual growth rate for cross-border payment GTV is around 30%, with fee rates maintaining at 0.3% and gross margins around 70% [2][3] - Domestic payment GTV growth is expected to remain at 10%-15%, with fee rates at 0.1% and gross margins between 20%-25% [5] Innovations and Developments - Establishment of DFX Labs and acquisition of the Hong Kong Virtual Asset Trading Platform (VATP) license to enhance cross-border small currency settlement efficiency [2][7] - The trading platform will focus on processing RMB settlements for cross-border trade funds, primarily serving institutional clients [9] - The platform is expected to officially operate by Q4 2025, with initial application scenarios accounting for 30% of cross-border trade flow [9] Market Positioning - The trading platform will not cater to retail clients but will focus on institutional clients and cross-border trade scenarios [13] - The company aims to provide a seamless process for converting small currencies into RMB and then into required fiat currencies, reducing risks associated with exchange rate fluctuations [14] Competitive Advantages - The VATP license is a combination of four licenses, making it challenging to obtain, but essential for conducting trading platform operations [10][11] - The company’s cross-border payment services may be opened to other payment institutions in the future, providing compliant solutions for RMB transactions in cross-border trade [19] Operational Efficiency - The trading platform allows for rapid conversion of small currencies to stablecoins, significantly reducing transaction times from several days to within one day [17] - The company has established a fund aggregation center in Hong Kong to streamline the withdrawal process for clients, avoiding complex domestic procedures [23] Regulatory Compliance - The company engages with regulatory bodies to ensure compliance with foreign exchange management and customs regulations, ensuring the authenticity of funds and trade [19] Conclusion - Lianlian Digital is positioned to capitalize on the growing demand for cross-border payment solutions, leveraging its technological innovations and regulatory compliance to enhance operational efficiency and expand its market reach [2][3][19]

Group 1 - The Hong Kong government is set to implement the "Stablecoin Ordinance" in August, which will establish a licensing system for fiat-backed stablecoin issuers in Hong Kong [1][2] - The Financial Secretary, Xu Zhengyu, indicated that the number of licenses issued will be in the "single digits," with expectations to receive applications after the ordinance takes effect [2] - There are currently at least nine institutions interested in applying for stablecoin licenses, including three that are part of the Hong Kong Monetary Authority's stablecoin issuer sandbox [2] Group 2 - Following the announcement, Hong Kong's stablecoin concept stocks saw significant gains, with notable increases in share prices for companies such as Guotai Junan International (+10.77%) and Yika (+9.87%) [3] - Stablecoins are expected to facilitate cross-border payments and reduce transaction costs, serving as a local currency alternative in specific regions [4] - Analysts from various securities firms suggest that the stablecoin market is expanding beyond cryptocurrency trading into broader payment applications, indicating a rapid increase in market size and trading activity [4]

Core Viewpoint - The company is well-positioned to benefit from the growing interest in stablecoins and has a strong foundation for growth in its payment business, supported by its licenses, compliance, technology, partnerships, and customer resources [1][2]. Group 1: Business Model and Market Position - The company focuses on providing payment services to B2B merchants, differentiating itself from consumer-focused e-wallets and third-party payment processors [1]. - In 2024, the company's digital payment revenue is expected to contribute 88% from TPV fees, with cross-border payments accounting for 61% and domestic payments for 26% [1]. - The company has a unique competitive advantage with its self-built licensing system and an open cooperation ecosystem, supported by 65 global payment licenses [1]. Group 2: Growth Expectations and Future Drivers - The company is expected to maintain a stable growth trajectory with a projected payment revenue growth rate of over 20% in the coming years, driven by a low dependency on any single market [1]. - The company plans to enhance its global licensing and local service capabilities while expanding its value-added services to support comprehensive business operations [1]. - The company has begun exploring opportunities in the Web3 space, which aligns with the application of stablecoins in cross-border payments, potentially improving global payment efficiency [2]. Group 3: Profitability and Valuation - The company maintains its profit forecast, currently trading at 7x/5x P/S for 2025/2026, with a target price increase of 6% to HKD 15.3, reflecting a 45% upside potential [3].

Core Viewpoint - The article discusses the recent performance and strategic positioning of Lianlian Digital (02598.HK) in the context of the stablecoin market and its efforts to adapt to changes in cross-border trade dynamics. Group 1: Market Performance - Lianlian Digital's stock price experienced a significant increase of 158% over nine trading days, followed by a 40% drop on the tenth day, stabilizing at 10.54 HKD as of June 27 [2] - The stock price rose approximately 65% from May 21 to June 27, following the Hong Kong Legislative Council's approval of the Stablecoin Bill [3] Group 2: Stablecoin and Virtual Asset Strategy - Lianlian Digital is actively involved in the stablecoin sector, having partnered with Yuan Coin Technology, one of the first three stablecoin issuers in Hong Kong, to develop the "Yuan Coin Wallet" [3] - The company has obtained a Virtual Asset Trading Platform (VATP) license, which positions it to expand its virtual asset financial services [4] - The stablecoin concept is seen as a key entry point for traditional finance, offering advantages in payment efficiency and cost [4] Group 3: Financial Performance - In 2024, Lianlian Digital reported total revenue of 1.315 billion CNY, a year-on-year increase of 27.9%, and achieved a profit of 78.7 million CNY, reversing a previous loss of 403 million CNY [7] - The total payment volume (TPV) reached 3.3 trillion CNY, a significant increase of 64.7% year-on-year, driven by growth in cross-border e-commerce and B2B traditional trade [8] Group 4: Strategic Adjustments - The company sold a 14.56% stake in Lian Tong Company for approximately 1.6 billion CNY, reducing its ownership to 17.63%, which alleviates the financial burden from previous losses [9] - Lianlian Digital is focusing on global expansion by acquiring local licenses and supporting transactions in over 130 currencies, aiming to mitigate risks from changing trade dynamics [13] Group 5: Industry Challenges and Opportunities - The cross-border payment sector faces challenges due to uncertain tariff policies, which may increase transaction costs and compliance risks [11][12] - Lianlian Digital plans to enhance its competitiveness through technology-driven operations and by expanding into emerging markets such as Southeast Asia and Latin America [15]

Investment Rating - The report does not provide a specific investment rating for the company [7] Core Insights - The company is a digital payment service provider that is expected to benefit from the implementation of stablecoin regulations in Hong Kong, which will take effect on August 1, 2023 [1] - The company has achieved profitability, with total revenue of 1.31 billion RMB in 2024, a year-on-year increase of 28%, and a net profit of 79 million RMB [3][11] - The company plans to apply for stablecoin issuance in Q4 2024, targeting cross-border trade payments [4] Summary by Sections Company Overview - The company primarily offers digital payment solutions, including payment collection, remittance, virtual cards, and aggregated payments, mainly serving small and medium-sized enterprises, particularly in the cross-border e-commerce sector [2] - As of December 2024, the company has served 5.9 million merchants and holds 65 payment licenses across various jurisdictions [2] Financial Performance - In 2024, the company's total transaction volume (TPV) is projected to reach 3.3 trillion RMB, representing a year-on-year growth of 65% [2] - The digital payment service revenue is expected to account for 88% of total revenue, with global payments contributing 70% of digital payment revenue [2][11] - The gross profit margin for 2024 is estimated at 52%, with a gross profit of 683 million RMB [3][11] Business Developments - The company has obtained a Virtual Asset Trading Platform (VATP) license, allowing it to conduct regulated activities under Hong Kong's Securities and Futures Ordinance [3][12] - The company is also involved in clearing services through a joint venture established with American Express, holding one of the three available clearing licenses in China [4] Market Position and Valuation - The company's current price-to-sales (P/S) ratio is 6.2x for 2025E and 5.1x for 2026E, compared to the average P/S ratios of 7.5x for overseas digital payment companies [5][13] - The company has a market capitalization of approximately 10.74 billion HKD [7]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 Lianlian DigiTech Co., Ltd. 連連數字科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 於股東週年大會上所提呈決議案的投票表決結果如下： （股份代號：2598） 於2025年6月6日舉行之股東週年大會投票表決結果 茲提述連連數字科技股份有限公司（「本公司」）發佈的日期均為2025年4月23日的 通函（「通函」）及通告（「通告」），內容有關本公司2024年股東週年大會（「股東週 年大會」）。除文義另有所指外，本公告所用詞彙與通函所界定者具有相同涵義。 2024年股東週年大會 董事會欣然宣佈股東週年大會已於2025年6月6日（星期五）上午十時正於中國浙江 省杭州市濱江區越達巷79號A座12樓本公司會議室舉行。 於股東週年大會日期，本公司已發行股份總數為1,079,060,000股股份，包括 418,668,764股H股及660,391,236股非上市股份。其中包括771, ...

Summary of the Conference Call for Lianlian Technology Company Overview - Lianlian Technology is the largest independent digital payment solution provider in China, with digital payment service volume exceeding 3 trillion RMB in 2024 and over 5.9 million customers. Revenue growth is reported at 27.9%, significantly outpacing the average growth rate of the cross-border e-commerce industry at 10.8% [2][7]. Core Business and Services - The company operates as a ToB provider, facilitating cross-border trade by offering both financial services (such as payment processing, currency exchange, and trade declaration) and logistical services (including marketing and supply chain management) [3]. - Lianlian has established partnerships with major e-commerce platforms like Amazon, Shopee, and TikTok, as well as financial institutions such as City Bank and Deutsche Bank, creating a robust ecosystem [2][12]. Financial Performance - In 2024, the company reported a total payment volume (TPV) growth of 64.7% and revenue growth of 27.9%. Global payment TPV grew by 63.1%, with domestic payment TPV increasing by 64.9% [16]. - The core revenue model consists of digital payment services (90% of revenue) and value-added services (10% of revenue), with profitability achieved in the main business by 2023 [16][17]. Industry Positioning - Lianlian is recognized as the only publicly listed cross-border payment company in China, holding a market share of approximately 10% in the independent digital payment solutions sector. The competitive landscape includes major players like PingPong and Payoneer, with the top five companies controlling about 80% of the market [6][21]. Technological Advancements - The company is embracing digital technologies, integrating AI and Deepfake technology to enhance customer service and operational efficiency. It is also exploring the establishment of a digital asset exchange to improve settlement efficiency [2][8][15]. Regulatory Compliance and Risk Management - Lianlian maintains strict compliance with regulatory requirements and has a robust risk management framework, including a dedicated IT team for compliance processes [11]. Future Growth Strategies - The company plans to expand its global footprint by acquiring licenses in the Middle East and Latin America, aiming to diversify its business and mitigate geopolitical risks [15][23]. - Lianlian is also focusing on the development of stablecoin and digital asset services, which are expected to enhance settlement efficiency and profitability [19][24]. Market Trends and Projections - The cross-border e-commerce sector is projected to grow at approximately 30% in 2025, with overall revenue growth expected to exceed 20% [27]. - The trend towards online trade is driving small and micro enterprises to seek comprehensive solutions, which Lianlian aims to provide through its one-stop service model [9]. Conclusion - Lianlian Technology is positioned for significant growth in the digital payment sector, leveraging its extensive partnerships, technological innovations, and strategic global expansion plans to capitalize on the increasing demand for cross-border payment solutions.

Market Performance - Jinli Permanent Magnet (06680) rose over 17% due to significant increases in overseas medium and heavy rare earth prices, which are expected to gradually transmit to the domestic market [1] - Zhixing Technology (01274) increased over 3% after securing a platform-based logistics vehicle contract with a leading domestic brand [1] - Weimeng Group (02013) surged over 9% as its upgraded Weimeng Guide Agent product is anticipated to benefit from the growth of WeChat e-commerce [1] - Zhaoke Ophthalmology-B (06622) gained over 8% following FDA approval for a new drug trial application for cyclosporine eye gel [1] - Zai Ding Pharmaceutical (09688) rose over 5% after reporting excellent data from the low-dose group of ZL-1310 [1] - Lianlian Digital (02598) saw a mid-session increase of over 5% as it partnered with BVNK to provide stablecoin payment solutions for its merchants [1] - Reading Group (00772) increased over 7% after acquiring a 26.67% stake in Yihua Kaitian, with its IP+AI strategy expected to unlock more value [1] - NIO opened nearly 4% higher, projecting a year-on-year revenue growth of 11.8%-15% for Q2 [1] - Kuaishou-W (01024) rose over 6% as its Kecing AI recently launched a new 2.1 series model, with institutions optimistic about its profitability [1] - Meituan (03690) surged over 3%, reaching a nearly two-month high, with southbound funds continuing to accumulate for 13 consecutive days [1] US Market Highlights - Applied Digital (APLD.US), a stock related to Nvidia, surged nearly 30%, with a 94% increase over three trading days, as long-term contracts are expected to generate $7 billion in revenue [2] - Tesla (TSLA.US) fell 3.55% due to declines in both the Chinese and European automotive markets, with a 15% year-on-year drop in China's May wholesale sales of new energy passenger vehicles [2] - MongoDB (MDB.US) saw a nearly 15% increase in after-hours trading following better-than-expected Q1 results and an $800 million stock buyback plan [2] - Broadcom (AVGO.US) rose over 3% before earnings, reaching a new historical high, with Morgan Stanley stating that AI is operating at full speed, expecting strong Q2 results [3] - Meta increased over 3% as it was reported to be accelerating the development of ultra-lightweight open-headset projects [3] - Guidewire Software (GWRE.US) surged over 16% after exceeding Q3 earnings expectations and raising its guidance [3] - Dollar Tree (DLTR.US) fell over 8% after warning of potential 50% declines in adjusted earnings due to tariffs and weak consumer spending [3] - STMicroelectronics (STM.US) rose nearly 11% amid reports that Italy and France are considering splitting its joint management rights [3]

Core Viewpoint - The rebound of Hong Kong stocks related to stablecoins, with notable increases in share prices for several companies in the sector [1] Group 1: Company Performance - Lianyi Technology (09959.HK) saw a rise of 5.77% [1] - Lianlian Digital (02598.HK) increased by 3% [1] - ZhongAn Online (06060.HK) experienced a gain of 1.21% [1]

Group 1: Digital Currency Market - The Hong Kong digital currency sector remains active, with Lianlian Digital surging over 60% and Okex Chain rising by 41.21% [1] - The Hong Kong government has officially implemented the Stablecoin Regulation, enhancing the regulatory framework for digital assets [1] Group 2: Quantum Communication - A Chinese research team has proposed a new theoretical framework for long-distance scalable quantum direct communication, achieving a 300-kilometer quantum communication network [2] - The experiment demonstrated a fidelity of over 85% in shared quantum states among nodes, confirming the reliability of the communication method [2] Group 3: Brain-Computer Interface - Clinical trials for implantable brain-computer interfaces have commenced, aiming to validate the effectiveness and safety of the treatment for spinal cord injury patients [3] - Shanghai plans to establish a specialized committee for brain-computer interfaces, integrating various sectors to foster innovation [3] Group 4: Robotics - Galaxy General has launched TrackVLA, an end-to-end navigation model that utilizes visual perception and natural language instructions for robotic actions [4] Group 5: U.S. Debt Concerns - The International Financial Association warns that the rising U.S. debt could trigger a global bond market crisis, as borrowing costs in other countries often correlate with U.S. Treasury fluctuations [5] Group 6: Fund Performance - In the first five months of the year, some funds have reported returns exceeding 70%, particularly those focused on innovative pharmaceuticals and new consumer sectors [6] Group 7: Bond ETF Growth - Bond ETFs have seen significant inflows, with over 40 billion yuan in net inflows in May, indicating strong market interest despite overall weak bond market returns [7] Group 8: Consumer Goods Sales - The sales of consumer goods through trade-in programs have surpassed 1 trillion yuan this year, significantly boosting consumption [8] Group 9: Green Data Centers - China's first national standard for evaluating green data centers has been implemented, providing guidelines for energy efficiency and sustainable practices in data center operations [9] Group 10: Tesla Sales Decline - Tesla's new car registrations in France fell by 67% in May, marking the lowest level in nearly three years, despite the launch of a redesigned Model Y [10]