Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company is focusing on high-quality development and improving operational capabilities through business adjustments [1] - Revenue for the service segment in H1 2025 was 312 million, down 18.97% year-on-year, with SaaS and subscription revenue at 250 million, also down 18% [2] - The company has launched three major projects to enhance supply chain efficiency, including a "Brand Direct Access Project" and an "Open Smart Supply Chain Project" [3] - A partnership with Alibaba Cloud aims to develop AI and digital solutions for the lower-tier market, leveraging the company's extensive data assets [4] - The company submitted an application for full circulation of 350 million domestic shares, which is expected to significantly increase market capitalization and facilitate re-inclusion in the Hong Kong Stock Connect [5] Financial Summary - The company is a leading player in the B2B e-commerce sector for lower-tier markets, with projected revenues of 65.8 billion, 72.3 billion, and 79.5 billion for 2025, 2026, and 2027 respectively, reflecting a 10% growth each year [6] - The forecasted net profit for the same years is 350 million, 460 million, and 580 million, representing growth rates of 31%, 30%, and 28% respectively [6] - The company’s P/E ratios are projected to be 25, 19, and 15 for the years 2025, 2026, and 2027 [6]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 匯通達網絡股份有限公司 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 呈交日期: 2025年10月8日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09878 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 180,266,339 | RMB | | 1 | RMB | | 180,266,339 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 180,266,339 | RM ...

Core Viewpoint - The company reported a revenue decline in the first half of 2025 due to strategic adjustments aimed at optimizing inefficient businesses, while net profit showed a positive growth trend [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved a revenue of 24.34 billion, a year-on-year decrease of 25.9%, while the net profit attributable to shareholders was 140 million, reflecting a year-on-year increase of 10.8% [1]. - The overall gross margin for the first half of 2025 was 4.6%, an increase of 1.1 percentage points year-on-year, primarily due to the company's decision to abandon low-efficiency businesses and enhance collaboration with leading brands [2]. Group 2: Business Segments - The trading business segment generated a revenue of 23.96 billion, down 26.0% year-on-year, with declines in consumer electronics and agricultural production materials, while home appliances remained stable due to government subsidies [1]. - The service business segment reported a revenue of 310 million, showing a slight year-on-year decline, but there was significant growth in store SaaS and subscription services compared to the second half of 2024 [1]. Group 3: Strategic Initiatives - The company entered into a comprehensive partnership with Alibaba Cloud in August 2025, focusing on AI and SaaS business growth, which is expected to enhance its platform value through the integration of AI capabilities with industry data [2]. - The development of proprietary AI models, such as the Qiancheng Cloud AI, aims to penetrate various business scenarios, enhancing sales predictions and customer service capabilities [2]. Group 4: Investment Outlook - The company is expected to see net profits of 346 million, 438 million, and 533 million for the years 2025 to 2027, reflecting year-on-year growth rates of 28.3%, 26.6%, and 21.6% respectively [3]. - A target price of 21.36 HKD is set for 2026, based on a 25X PE valuation, maintaining a "recommended" rating for the company [3].

Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of HKD 21.36 [2][8]. Core Insights - The company reported a revenue of HKD 243.4 billion for the first half of 2025, a year-on-year decrease of 25.9%, while the net profit attributable to shareholders was HKD 1.4 billion, reflecting a year-on-year increase of 10.8% [2][4]. - The strategic shift towards enhancing efficiency has shown results, with a gross margin of 4.6% in the first half of 2025, up 1.1 percentage points year-on-year, driven by the abandonment of low-efficiency businesses and deeper collaborations with leading brands [8]. - A partnership with Alibaba Cloud was established in August 2025, aiming to leverage AI and SaaS capabilities, which is expected to drive growth in these areas [8]. Financial Performance Summary - **Revenue Forecasts**: - 2024A: HKD 60,059 million - 2025E: HKD 53,513 million - 2026E: HKD 57,819 million - 2027E: HKD 62,010 million - Year-on-year growth rates are projected at -27.2% for 2024A, -10.9% for 2025E, 8.0% for 2026E, and 7.2% for 2027E [4][9]. - **Net Profit Forecasts**: - 2024A: HKD 270 million - 2025E: HKD 346 million - 2026E: HKD 438 million - 2027E: HKD 533 million - Year-on-year growth rates are projected at -39.8% for 2024A, 28.3% for 2025E, 26.6% for 2026E, and 21.6% for 2027E [4][9]. - **Earnings Per Share (EPS)**: - 2024A: HKD 0.48 - 2025E: HKD 0.62 - 2026E: HKD 0.78 - 2027E: HKD 0.95 [4][9]. - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio is projected to decrease from 32.5 in 2024A to 16.5 in 2027E [4][9]. Strategic Developments - The company is focusing on optimizing its business structure, which has led to a short-term revenue decline but is expected to enhance long-term profitability [8]. - The collaboration with Alibaba Cloud is anticipated to significantly enhance the company's AI and SaaS offerings, potentially revitalizing growth in these segments [8].

Group 1 - The core viewpoint of the article highlights the significant rise in the stock price of HuTongDa Network (09878), which increased by over 10% and reached HKD 16.97, with a trading volume of HKD 49.03 million [1] - Alibaba's 1688 platform showcased its AI capabilities at the Yunqi Conference, launching the global first cross-border e-commerce AI entity "AoXia" aimed at small and medium overseas buyers, indicating a shift towards AI-driven B2B transactions [1] - The S2B2C model, as emphasized by Zhitong Finance, is gaining momentum with major players like Alibaba and Tencent investing heavily, positioning HuTongDa Network as a pioneer in the S2B2C model in China's lower-tier markets [1] Group 2 - HuTongDa Network's S2B2C model focuses on dual empowerment through a smart supply chain that integrates "reverse + short chain + digitalization" and is driven by "AI + SaaS," enhancing efficiency from factories to stores [2] - The company has established a platform network covering 21 provinces and over 250,000 B-end member stores, making it a rare example of a "light asset, high value, strong cash flow" industrial empowerment platform [1][2] - With the consumption upgrade and accelerated digitalization in the 20 trillion yuan lower-tier market, HuTongDa Network's S2B2C ecosystem is expected to become a scarce infrastructure [2]

Group 1 - The core viewpoint of the news highlights the significant rise in the stock price of Huitongda Network, which increased by over 10% and reached HKD 16.97, with a trading volume of HKD 49.03 million [1] - Alibaba's 1688 platform showcased its AI capabilities at the Yunqi Conference, launching the cross-border AI entity "Aoxia" aimed at overseas small and medium-sized buyers, marking a significant step in B2B transactions [1] - Huitongda Network is recognized as a pioneer in the S2B2C model in China's lower-tier markets, having established a network covering 21 provinces and over 250,000 B-end member stores, positioning itself as a valuable asset-light platform with strong cash flow [1] Group 2 - Unlike traditional B2B models, Huitongda Network's S2B2C model focuses on dual empowerment through a smart supply chain driven by "reverse + short chain + digitalization" and "AI + SaaS," enhancing efficiency from factories to stores [2] - The S2B2C ecosystem built by Huitongda Network is expected to become a rare infrastructure as the consumption upgrade and digitalization process accelerate in the 20 trillion yuan lower-tier market [2]

Core Insights - Huitongda Network (09878) has seen a significant stock price increase, rising over 10% recently, with a current price of HKD 16.97 and a trading volume of HKD 49.03 million [1] - Alibaba's 1688 platform showcased its AI capabilities at the Yunqi Conference, launching the "Aoxia" cross-border AI agent aimed at small and medium overseas buyers, marking a significant step in B2B transactions [1] - The S2B2C model, which Huitongda Network has pioneered in China's lower-tier markets, is gaining traction as major players like Alibaba and Tencent invest heavily in this sector [1] Company Overview - Huitongda Network has established a platform network covering 21 provinces in China with over 250,000 B-end member stores, positioning itself as a unique "light asset, high value, strong cash flow" industry empowerment platform [1] - The company's S2B2C model focuses on dual empowerment through a smart supply chain that integrates "reverse + short chain + digitalization" and is driven by "AI + SaaS," enhancing efficiency from factories to retail stores [2] - The ongoing consumption upgrade and digitalization in the 20 trillion yuan lower-tier market are expected to make Huitongda Network's S2B2C ecosystem a rare infrastructure [2]

Core Viewpoint - Huitongda Network (9878.HK) has seen a significant stock price increase of approximately 10% on the latest trading day, marking a nearly 20% rise over two days, reaching a new high of 17 HKD, with a total market capitalization of 9.55 billion HKD [1] Group 1: Company Developments - Alibaba announced its AI strategy at the "2025 Yunqi Conference" on September 24, which includes a strategic investment in Huitongda Network [1] - Huitongda Network has entered into a comprehensive cooperation with Alibaba Cloud in August this year, focusing on the construction of intelligent agent matrices and the exploration of data asset value [1] - The collaboration aims to deploy over 13 AI agents in the retail and industrial scenarios of the lower-tier markets by the end of this year, providing enhanced AI support for small-town family stores and upstream production enterprises [1] Group 2: Industry Context - The S2B2C industry empowerment model is gaining momentum with increased investments from major players like Alibaba and Tencent [1] - Huitongda Network is recognized as a pioneer in the S2B2C model within China's lower-tier markets, having established a platform network that covers 21 provinces and over 250,000 B-end member stores [1] - The company is characterized as a "light asset, high value, strong cash flow" industrial empowerment platform, making it a rare example in the industry [1]

Core Viewpoint - The S2B2C model is gaining momentum in China's industrial internet landscape, with major players like Alibaba and Tencent emphasizing its importance for future growth [1][2] Group 1: Industry Trends - Tencent's Ma Huateng predicts that the C-end market profits will diminish, suggesting that the future lies in the B-end market [1] - Alibaba's research institute identifies the S2B2C model as the golden opportunity for the next decade [1] - The shift from "heavy asset sales" to "light asset empowerment" is a significant transformation in China's industrial internet [1] Group 2: Company Insights - Huitongda Network has established a platform network covering 21 provinces and over 250,000 B-end member stores, positioning itself as a rare example of a "light asset, high value, strong cash flow" industrial empowerment platform [1] - Huitongda's S2B2C model focuses on dual empowerment through a smart supply chain that integrates "reverse + short chain + digitalization" and is driven by "AI + SaaS" [1][2] - The company has upgraded its "Qiancheng Cloud AI" model and partnered with Alibaba Cloud for comprehensive AI collaboration, achieving over 30% efficiency improvement in various operational aspects for member stores [2] Group 3: Strategic Development - Huitongda employs a dual-driven model of "industry + capital" to replicate its S2B2C experience across multiple sectors, including daily chemical products and instant retail [2] - The company has built a "platform + technology + supply chain" moat over its ten years of operation, converting 250,000 rural stores into platform endpoints, creating network effects and data barriers [2] - With the acceleration of consumption upgrades and digitalization in the 20 trillion yuan sinking market, Huitongda's S2B2C ecosystem is expected to become a critical infrastructure [2]

2025 中期報告 匯通達網絡股份有限公司 HUITONGDA NETWORK CO., LTD. 二零二五年中期報告 Interim Report 2025 1 目錄 Contents 2 公司資料 Corporate Information 9 管理層討論與分析 Management Discussion and Analysis Consolidated Statement of Profit or Loss for the Six Months Ended June 30, 2025 (Unaudited) Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 (Unaudited) Consolidated Statement of Financial Position at June 30, 2025 (Unaudited) Consolidated Statement of Changes in Equity for the Si ...