Group 1 - The company announced a placement agreement on May 13, aiming to issue up to 17,480,000 shares, representing approximately 1.77% of the company's existing share capital as of the announcement date, with expected proceeds of about HKD 209.59 million [1] - The placement price is set at HKD 11.99 per share, reflecting a discount of approximately 6.91% compared to the closing price on May 12 and an 8.50% discount compared to the average closing price over the previous five trading days [1] - The placement received strong demand, with over 10 times the initial target of HKD 156 million, leading to a final fundraising increase of about 35% [1] Group 2 - Strategic shareholders, including Jingtai Technology and Jiaoge Friends, are expected to accelerate the company's new business development, leveraging AI research and automation systems [2] - The net proceeds from the placement will primarily be used to enhance platform technology services, increase R&D investment, and support general working capital [2] - The company maintains a "buy" rating, anticipating sustained high growth driven by emerging industries and improved operational quality due to increasing platform revenue share [2]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company plans to introduce strategic shareholders through a placement, which is expected to accelerate new business development [7] - The placement is oversubscribed, indicating strong demand, with the final amount raised being approximately 209.59 million HKD, which is about 35% more than the initial target [7] - Strategic partnerships with companies like Jingtai Technology and Jiaoge Friends are anticipated to enhance the company's new business expansion and provide technological support for AI development [7] - The funds raised will primarily be used to accelerate the expansion of platform technology services, increase R&D investment, and cover general operational expenses [7] - The company is expected to benefit from high credit quality of its core clients and growth in emerging industries, leading to sustained high growth in the future [7] Financial Projections - Total revenue is projected to grow from 976.22 million CNY in 2024 to 1,658.05 million CNY by 2027, reflecting a compound annual growth rate (CAGR) of approximately 17.51% [8] - Net profit attributable to the parent company is expected to increase from 380.18 million CNY in 2024 to 849.83 million CNY in 2027, with a CAGR of about 23.30% [8] - The earnings per share (EPS) is forecasted to rise from 0.38 CNY in 2024 to 0.86 CNY in 2027 [8] - The price-to-earnings (P/E) ratio is projected to decrease from 32.16 in 2024 to 14.39 in 2027, indicating improving valuation [8]

Core Viewpoint - The company maintains its earnings forecast for 2025 and 2026, with a current trading P/E of 22.6x and 17.5x for those years, respectively, and a target price of HKD 15, indicating a potential upside of 16.5% from the current stock price [1] Group 1: Placement Details - The company plans to issue up to 17,480,000 shares at a placement price of HKD 11.99 per share, representing a discount of approximately 6.91% compared to the closing price of HKD 12.88 on May 12 [2] - The total gross proceeds from the placement are estimated to be around HKD 209.59 million, with a net amount of approximately HKD 208.71 million after deducting placement commissions and estimated expenses [2] Group 2: Use of Proceeds - The funds raised will primarily be used for upgrading AI capabilities and accelerating the implementation of innovative business scenarios, focusing on areas such as e-commerce, AI applications, robotics, and cross-border business [3] - Additional investments will be made in R&D, including the intelligent upgrade of the "Shengyitong Cloud Platform" and the commercialization of AI applications based on industry data [3] Group 3: Potential Investors - The company anticipates that the potential investors will include at least six parties, with significant industry backgrounds, which may enhance the industrial ecosystem and data connectivity [4] - The expected major investors are likely to subscribe for over 88.6% of the shares, which could help accelerate the company's long-term development and strengthen its core competitiveness in supply chain finance and innovative business expansion [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 21 HKD, representing a potential upside of over 20% from the current price of 13.42 HKD [5][14]. Core Insights - The company is raising up to 210 million HKD through a placement of shares at 11.99 HKD each, which is a discount of approximately 6.91% from the last closing price [1]. - The funds raised will be used to enhance collaboration with leading companies in AI and e-commerce, aiming to expand technology revenue and improve AI research capabilities [1][4]. - The strategic partnerships with Jingtai Holdings and Jiaoge Friends Holdings are expected to leverage AI research and e-commerce strengths, respectively, to enhance the company's market position [3][4]. Financial Projections - Revenue forecasts for FY2025, FY2026, and FY2027 are projected at 1.111 billion HKD, 1.346 billion HKD, and 1.615 billion HKD, respectively, with net profit estimates of 498 million HKD, 653 million HKD, and 836 million HKD [4]. - The company’s total market capitalization is approximately 13.29 billion HKD, with a total share capital of 990.26 million shares [6]. - The company has a net asset value per share of 4.45 HKD and a debt-to-asset ratio of 61.18% [6].

Financial Performance - Total revenue for the fiscal year 2024 reached RMB 919.37 million, a decrease of 4.6% from RMB 963.52 million in 2023[7]. - Net profit for 2024 grew by 37% to RMB 390.87 million, compared to RMB 285.55 million in 2023[4][9]. - The company's main business revenue was approximately RMB 919.4 million, a slight year-on-year decrease of about 4.6%[21]. - The company achieved a net profit of approximately RMB 390.9 million, a significant year-on-year increase of about 36.9%[21]. - Adjusted net profit rose by 17.7% year-on-year to RMB 343.3 million for the year ended December 31, 2024, compared to RMB 291.6 million in 2023[48]. - The company recorded other income of RMB 72.9 million, a 208.4% increase from RMB 23.6 million in the previous year[41]. - The share of profits from joint ventures increased significantly by 511.8% year-on-year to RMB 124.6 million[42]. - Revenue from digital financial solutions decreased by 27.8% year-on-year to RMB 521.9 million[37]. User and Market Growth - Cumulative platform users increased by 18.3% to over 18,100 as of December 31, 2024[4][13]. - The company facilitated RMB 248.9 billion in orders and financing services for SMEs, a 29% increase year-on-year[13]. - The number of funding partners linked to the platform increased to 163, a year-on-year growth of 24.4%[25]. - The company aims to expand into new industries, targeting a potential market size exceeding RMB 10 trillion and over 10 million potential customers[26]. Research and Development - Total R&D investment exceeded RMB 250 million, with 80 national invention patents and software copyrights[11]. - The company has invested over RMB 250 million in R&D, with R&D personnel accounting for nearly 30% of the workforce[25]. - The group is focused on increasing R&D investments in key areas such as data, models, and computing power to support the growth of small and micro enterprises[105]. Operational Efficiency and Technology - The company plans to enhance operational efficiency by at least 50% by 2025 through AI-driven data analysis and smart asset matching algorithms[32]. - AI-related revenue is projected to increase to over 50% of total revenue in the future, driven by ongoing technological integration[11]. - The company has established a comprehensive integration with domestic open-source AI models, enhancing its capabilities in supply chain management and digital transformation[34]. - The company is focusing on developing AI agents to assist small and medium enterprises in achieving more precise market analysis and efficient supply chain management[32]. Financial Position and Borrowings - As of December 31, 2024, total borrowings, including related party loans, amounted to RMB 5,136.1 million, a decrease of 28.5% year-on-year[63]. - The average daily borrowing balance for 2024 was RMB 5,917.4 million, down 9.1% compared to the previous year[63]. - The financing cost decreased by RMB 49.7 million year-on-year, primarily due to the decline in average daily borrowing balance and the average borrowing interest rate dropping from 6.3% in 2023 to 6.1% in 2024[63]. - The leverage ratio, calculated as total liabilities divided by total equity, improved to 1.58 as of December 31, 2024, compared to 1.91 a year earlier[75]. Corporate Governance - The company aims to enhance shareholder confidence through robust corporate governance practices, adhering to the corporate governance code as per the listing rules for the fiscal year ending December 31, 2024[132]. - The board consists of two executive directors, one non-executive director, and four independent non-executive directors, ensuring a diverse and independent oversight structure[139]. - The company is committed to maintaining high standards of corporate governance and will regularly review its governance practices to align with shareholder expectations[132]. - The company has established effective mechanisms to ensure independent viewpoints from board members are communicated, enhancing decision-making objectivity[143]. Dividend and Shareholder Communication - The company plans to distribute a dividend of RMB 0.347 per share, maintaining a dividend payout ratio of no less than 90% for the next three years (2024-2026)[17]. - The board proposed a final dividend of RMB 0.347 per ordinary share for the year ended December 31, 2024, compared to HKD 0.269 per share for the previous year[76]. - The company has a shareholder communication policy to ensure transparent and timely communication with shareholders[198]. - The company encourages shareholder participation in annual general meetings and allows proxy representation[198]. Risk Management - The group conducts an annual review of the adequacy and effectiveness of its risk management and internal control systems[200]. - The audit committee is authorized to oversee risk management and internal control, ensuring the effectiveness of these systems is evaluated annually[200]. - The internal audit function has been established to continuously improve the effectiveness of risk management and internal controls[200]. Employee and Workforce Development - The total employee cost for the year ended December 31, 2024, was approximately RMB 214.6 million, compared to RMB 202.0 million for the year ended December 31, 2023[108]. - The number of employees increased to 363 as of December 31, 2024, from 358 as of December 31, 2023, indicating growth in workforce[108]. - The group has implemented a comprehensive incentive plan to reward existing senior management and employees, aimed at retaining talent for future development[109]. Strategic Partnerships and Acquisitions - The company has established strategic partnerships in the cross-border e-commerce sector, helping hundreds of e-commerce businesses address supply chain financing needs amounting to billions[26]. - The acquisition agreement for Mingfeng Holdings was signed on July 9, 2024, with a conditional purchase price of RMB 300 million, and potential additional payments of up to RMB 500 million based on performance targets[94]. - The group has diluted its indirect equity in Wuxi Guojin from 80% to 49% through a capital increase of RMB 569.4 million, resulting in Wuxi Guojin no longer being a subsidiary[92].

Investment Rating - The report maintains a "Buy-A" investment rating for the company [3][6]. Core Insights - The company reported a total revenue of 919 million yuan for 2024, a year-on-year decrease of 4.6%. However, platform technology service revenue surged by 103.6% to 347 million yuan, partially offsetting the impact of Wuxi Guojin's exit from the financial statements. The net profit attributable to shareholders reached 380 million yuan, reflecting a year-on-year increase of 41.7% [2]. - The company has seen a doubling of its platform technology service revenue, with a total of 163 funding partners linked to the platform, an increase of 24% year-on-year, and total funding partner amounts exceeding 36.6 billion yuan, up 58% year-on-year. The cumulative customer base surpassed 18,100, with over 96% being small and micro-enterprises and a retention rate exceeding 80% [2]. - The digital financial solutions revenue decreased by 28% to 522 million yuan, primarily due to Wuxi Guojin's exit in February 2024. The company is focusing on a light asset operation strategy, which is expected to optimize its business structure and enhance platform service revenue and profitability in the long term [3]. - The company is actively embracing the AI era, with cumulative R&D investment exceeding 250 million yuan and nearly 30% of its workforce dedicated to R&D. This is expected to further promote the company's platform development and industrial collaboration [3]. Financial Summary - The company forecasts earnings per share (EPS) of 0.42 yuan, 0.49 yuan, and 0.58 yuan for 2025, 2026, and 2027 respectively. A price-to-earnings (P/E) ratio of 30x for 2025 is applied, leading to a target price of 13.56 HKD over the next six months [3][9]. - The total revenue is projected to recover to 644 million yuan in 2025, with net profit expected to reach 417 million yuan [9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15.03 HKD, indicating an expected return of over 20% within the next six months [7]. Core Insights - The company has successfully implemented a platform-based development strategy, leading to a significant increase in platform technology service revenue, which reached 3.47 billion HKD, a year-on-year growth of 103.6% [2]. - The company's net profit for 2024 is projected to be 3.80 billion HKD, reflecting a 42% increase year-on-year, despite a decline in overall revenue due to the impact of the sale of a subsidiary [1]. - The integration of AI technology into the supply chain has positioned the company as a leader in the digital transformation of key industries such as infrastructure, pharmaceuticals, and commodities [3][4]. Summary by Sections Financial Performance - The company's total revenue for 2024 is expected to be 9.19 billion HKD, a decrease of 4.6% year-on-year, primarily due to the divestment of Wuxi Guojin Commercial Factoring Co., Ltd. [1]. - The platform technology service revenue has become a major growth driver, accounting for 37.7% of total revenue in 2024, up from 17.7% in 2023 [2]. Strategic Development - The company has established strong partnerships with local state-owned enterprises, enhancing its platform-based financial services and increasing the number of funding partners to 163, a growth of 24.4% [2]. - The company is actively exploring new markets, including e-commerce and robotics, with potential market sizes exceeding 10 trillion HKD and over 10 million potential clients [4][5]. AI and Technology Integration - The company has integrated its cloud platform with advanced AI models, enhancing its capabilities in supply chain management and decision-making processes [4]. - The company has also secured significant computational resources to support its AI initiatives, further solidifying its position in the digital ecosystem [4]. Future Projections - Revenue forecasts for FY2025 and FY2026 have been adjusted to 11.11 billion HKD and 13.46 billion HKD, respectively, with net profit projections of 4.98 billion HKD and 6.53 billion HKD [6]. - A new revenue forecast for FY2027 is introduced at 16.15 billion HKD, with a net profit of 8.36 billion HKD [6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15.03 HKD, indicating an expected return of over 20% within the next six months [7]. Core Insights - The company has successfully implemented a platform-based development strategy, leading to a significant increase in platform technology service revenue, which reached 3.47 billion HKD, a year-on-year growth of 103.6% [2]. - The company's net profit for 2024 is projected to be 3.80 billion HKD, reflecting a 42% increase year-on-year, despite the impact of the divestment of Wuxi Guojin Commercial Factoring Co., Ltd [1]. - The integration of AI technology into the supply chain has positioned the company as a leader in the AI + industrial supply chain sector, with a focus on infrastructure, pharmaceuticals, and bulk commodities [3][4]. Summary by Sections Financial Performance - For 2024, the company expects total revenue of 9.19 billion HKD, a decrease of 4.6% year-on-year, primarily due to the divestment impact, which is offset by growth in platform technology services [1]. - The platform technology services now account for 37.7% of total revenue, up from 17.7% in 2023 [2]. Strategic Developments - The company has established strong partnerships with local state-owned enterprises, enhancing its platform-based financial services and increasing the number of funding partners to 163, a growth of 24.4% [2]. - The company is actively exploring new markets, including e-commerce and robotics, with potential market sizes exceeding 10 trillion HKD [4][5]. AI and Technology Integration - The company has integrated its cloud platform with DeepSeek AI, enhancing its capabilities in supply chain management and decision support [4]. - The company has also secured computational resources from Wuxi Economic Development Zone, which will support its AI initiatives [4]. Future Projections - Revenue forecasts for FY2025 and FY2026 have been adjusted to 11.11 billion HKD and 13.46 billion HKD, respectively, with net profit projections of 4.98 billion HKD and 6.53 billion HKD [6]. - A new revenue forecast for FY2027 is set at 16.15 billion HKD, with a net profit of 8.36 billion HKD [6].

Investment Rating - The investment rating for the company is "Buy" with a target price of 15.03 HKD, indicating an expected return of over 20% within the next six months [7][16]. Core Insights - The company has successfully implemented a platform-based development strategy, leading to a significant increase in platform technology service revenue, which reached 3.47 billion HKD, a year-on-year growth of 103.6% [2]. - The company has transformed into an AI-driven digital technology firm focused on the industrial supply chain, achieving a net profit of 3.80 billion HKD in 2024, a 42% increase year-on-year [1][3]. - The integration of AI technology into the supply chain has enhanced customer acquisition and risk control capabilities, with the number of funding partners increasing by 24.4% to 163 [2][6]. Summary by Sections Financial Performance - In 2024, the company's revenue was 9.19 billion HKD, a decrease of 4.6% year-on-year, primarily due to the impact of the sale of Wuxi Guojin Commercial Factoring Co., Ltd. However, the platform technology service business significantly offset this decline [1]. - The projected revenue for FY2025 is adjusted to 11.11 billion HKD, with a net profit forecast of 4.98 billion HKD, reflecting continued growth expectations [6]. Business Strategy - The company has established strong partnerships with local state-owned enterprises, enhancing its platform-based financial services and expanding its supply chain finance capabilities [2]. - The company is actively exploring new markets, including e-commerce and robotics, with potential market sizes exceeding 10 trillion HKD [4][5]. Technological Advancements - The integration of the company's 盛易通云 platform with DeepSeek AI models aims to optimize AI capabilities for supply chain management and decision-making processes [4]. - The company has secured computational resources from Wuxi Economic Development Zone, enabling further development of AI applications in various industries [4]. Market Position - The company has maintained a leading position in key sectors such as infrastructure, pharmaceuticals, and commodities, while also expanding into emerging industries [3][4].

Customer and Partner Growth - The total number of cumulative platform customers exceeded 18,100, representing an increase of approximately 18.3% compared to over 15,300 as of December 31, 2023[3]. - The number of funding partners increased by 24.4% to 163, with a total funding limit exceeding RMB 36.6 billion, a significant increase of approximately 57.8% from over RMB 23.2 billion as of December 31, 2023[3]. Financial Performance - Net profit increased by approximately 36.9% to RMB 390.9 million from RMB 285.5 million for the year ended December 31, 2023[5]. - The company's main business revenue and income were approximately RMB 919.4 million, a slight decrease of about 4.6% year-on-year[5]. - The total revenue for the year ended December 31, 2024, decreased by 4.6% to RMB 919.4 million from RMB 963.5 million in 2023, primarily due to the impact of the sale of Wuxi Guojin Commercial Factoring Co., Ltd. in February 2024[19]. - The net profit for the year increased by 36.9% to RMB 390.9 million, compared to RMB 285.5 million in 2023[18]. - Adjusted net profit increased by 17.7% year-on-year to RMB 343.3 million, compared to RMB 291.6 million in the previous year[30]. Revenue Breakdown - Platform technology service revenue was RMB 346.6 million, a substantial increase of approximately 103.6% compared to RMB 170.2 million for the year ended December 31, 2023[3]. - Digital financial solutions revenue fell by 27.8% year-on-year to RMB 521.9 million, mainly due to the sale of Wuxi Guojin and a shift towards a light asset operation strategy[22]. - The revenue from supply chain asset refinancing decreased by 27.8% year-on-year to RMB 50.9 million, down from RMB 70.5 million in the same period last year[23]. - Other income increased by 208.4% year-on-year to RMB 72.9 million, compared to RMB 23.6 million in the previous year, primarily due to gains from revaluation of previously held interests in associates and increased fair value gains on other financial assets[24]. Strategic Initiatives - The company has established strategic partnerships in the cross-border e-commerce sector, aiming to unlock nearly RMB 100 billion in business scale through collaboration with Sinbada[10]. - The company is actively expanding into new industries, including e-commerce and robotics, with a potential market size exceeding RMB 10 trillion and over 10 million potential customers[9]. - The company plans to enhance operational efficiency by at least 50% by 2025 through AI-driven data analysis and processing capabilities[16]. - The company has signed a strategic cooperation framework agreement with Wuxi Economic Development Zone to establish a digital ecosystem hub in East China[17]. Research and Development - Research and development investment exceeded RMB 250 million, with R&D personnel accounting for nearly 30% of the workforce[8]. - Continued investment in R&D focusing on data, models, and computing power to support the growth of small and medium-sized enterprises[73]. Shareholder Returns - The company proposed a dividend of RMB 0.347 per ordinary share, compared to HKD 0.269 per share for the year ended December 31, 2023[3]. - The board proposed a final dividend of RMB 0.347 per ordinary share for the year ended December 31, 2024, compared to HKD 0.269 per share for the year ended December 31, 2023[52]. Asset Management - The total amount of supply chain assets processed by the platform reached approximately RMB 249 billion, an increase of about 29.0% from RMB 193 billion as of December 31, 2023[3]. - The average daily balance of proprietary supply chain assets decreased by 27.2% to RMB 5,778.9 million, primarily due to the classification of Wuxi Guojin as held for sale[33]. - The total value of supply chain assets as of December 31, 2024, was secured by trade receivables, with RMB 217.1 million backed by commercial acceptance bills received from customers[34]. Financial Position - The group's total liabilities were RMB 15,883,238,000, with current liabilities at RMB 6,684,916,000[93]. - The group's leverage ratio as of December 31, 2024, was 1.58, improved from 1.91 as of December 31, 2023[51]. - The company’s total assets decreased to RMB 7,513,121 thousand in 2024 from RMB 9,617,336 thousand in 2023, a decline of about 21.8%[100]. Compliance and Governance - The company has maintained compliance with applicable regulations as confirmed by the board[80]. - The company has adhered to corporate governance codes since its listing on July 6, 2017, and continues to comply as of December 31, 2024[91]. Acquisitions and Investments - The company acquired 100% equity of Mingfeng Holdings Limited in July 2024, aiming to expand its supply chain financing and investment business[155]. - The total consideration for the acquisition of Mingfeng is RMB 789,796,000, which includes cash of RMB 300,000,000 and contingent consideration of RMB 489,796,000[156].