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Summary of Conference Call Records Company Overview - The company, 移卡, is a technology platform focused on payment solutions, leveraging AI and data analytics to meet merchants' digital needs. The company has a significant annual transaction volume of approximately 2.3 trillion yuan, with overseas transaction volume growing at five times the rate of previous years, contributing to strong profitability and cash flow [3][4][5]. Industry Insights - The cross-border payment industry is undergoing significant changes due to trade tensions and tariff policies. Companies are restructuring their trade chains to mitigate impacts, which presents more opportunities for 移卡's full network payment channels to charge fees at various stages [6][7]. - The CIPS (Cross-Border Interbank Payment System) is growing rapidly, with a projected growth rate exceeding 40% in 2024, although it is currently not expected to replace SWIFT in the short term [11]. Key Points Financial Performance - 移卡's overseas payment business has seen transaction volume increase fivefold, with strong profitability and cash flow. The revenue structure has improved, with value-added service revenue rising to over 80%, leading to an increase in overall profit margin from 18.7% in 2023 to 24% in 2024 [4][5]. - The net profit for 2024 is projected to rise sixfold to 73 million yuan, with EBITDA reaching 390 million yuan. The debt-to-asset ratio has decreased from 45% to 35.9% [4]. Market Expansion - 移卡 is actively expanding in Southeast Asia, focusing on partnerships with local service providers to meet the consumption needs of Chinese consumers in regions like Southeast Asia and Japan [3][10]. - The company plans to maintain exponential growth by expanding its presence in Southeast Asia, particularly in countries like Malaysia and Indonesia, and by offering both payment and non-payment value-added services [9][10]. AI Integration - 移卡 has fully embraced AI technology to optimize risk control and improve R&D efficiency. The introduction of AI agents has enhanced customer service and reduced costs, with net profit expected to rise significantly due to these innovations [2][14][17]. - AI technology has improved risk management capabilities, processing approximately 20 million risky transactions in 2024, and has increased coding efficiency by 30% through automation [17]. Domestic Market Dynamics - In the domestic market, despite a decrease in average transaction value due to macroeconomic conditions, transaction frequency has increased, maintaining total transaction volume. The company anticipates significant growth in GPV (Gross Payment Volume) in 2025 due to improving consumer sentiment and macroeconomic policies [12][13]. Future Outlook - 移卡's future strategies include enhancing AI applications to further improve operational efficiency and exploring new areas for AI integration to drive growth in 2025 and 2026 [18]. Additional Insights - The company is focusing on high-value clients, such as gas stations, which are less price-sensitive and have higher service quality demands, contributing to improved overall fee rates and profitability [13]. - The company is also adapting its strategies to include diverse industry coverage, such as maternal and infant products, to capture future growth opportunities [12].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 3,086,742, a decrease of 21.8% compared to RMB 3,950,585 in 2023[12] - Gross profit for 2024 was RMB 728,764, down from RMB 738,164 in 2023, reflecting a gross margin of approximately 23.6%[12] - Adjusted EBITDA for 2024 was RMB 384,483, a decline of 30.8% from RMB 556,047 in 2023[12] - Total revenue for 2024 reached RMB 3,086.7 million, a year-on-year decrease of 21.9%[20] - Profit for the year reached RMB 73.0 million, an increase of over six times compared to 2023[21] - The company's GPV decreased by 19.0% year-on-year to RMB 233.55 billion for the year ending December 31, 2024, compared to RMB 288.29 billion for the previous year[36] - Revenue for the year ending December 31, 2024, was RMB 3,086.7 million, a decline of 21.9% from RMB 3,950.6 million in the same period last year[36] - The company's net profit surged over six times to RMB 73.0 million for the year ending December 31, 2024, compared to RMB 10.1 million in the previous year, resulting in a net profit margin of 2.4%[38] - The revenue from the one-stop payment service decreased by 22.9% to RMB 2,685.9 million, primarily due to macroeconomic fluctuations affecting the average transaction amount per customer[68] Operational Efficiency - The company is focusing on profitability and operational sustainability, optimizing payment and value-added services[16] - The company reduced sales, management, and R&D expenses by 11.0%, 10.8%, and 10.5% respectively, through enhanced AI tool utilization, leading to a 20% reduction in related operational costs[38] - The company's operating costs decreased by 26.6% from RMB 3,212.4 million in 2023 to RMB 2,358.0 million in 2024, primarily due to improved bargaining power leading to reduced commission fees paid to distribution channels[72] - The gross margin for the one-stop payment service improved from 9.7% in 2023 to 14.2% in 2024, attributed to the absence of non-recurring income adjustments and reduced commission payments[76] Market Expansion - The company achieved a fivefold year-on-year growth in Gross Payment Volume (GPV) in overseas markets[18] - New e-commerce services were launched in Japan, Singapore, and Hong Kong, further integrating payment and value-added solutions[18] - The company’s overseas GPV reached over RMB 1.1 billion for the year 2024, representing a nearly fivefold increase year-on-year, showcasing strong market expansion capabilities[44] - The company plans to accelerate its globalization strategy and expand into overseas markets, leveraging its established product system and operational experience in China[56] Technology and Innovation - The company launched a series of AI-driven products aimed at reducing costs and increasing efficiency, including the Winsfor in-store business intelligence platform[17] - The company aims to enhance operational efficiency and product competitiveness through deeper AI integration in future operations[24] - The AI-driven "Y-Copilot" coding assistant improved internal code adoption rates to over 30%, enhancing project efficiency[43] - The company expanded its product offerings by launching an AI Agent solution for Southeast Asian merchants, enhancing customer service and operational efficiency[42] - The company is investing in artificial intelligence and big data analytics to ensure the competitiveness of its products and services[148] Financial Position - The total assets as of December 31, 2024, were RMB 7,705,476, a decrease from RMB 8,420,361 in 2023[13] - The company's equity attributable to shareholders was RMB 2,665,238, down from RMB 2,707,876 in 2023[13] - Total liabilities decreased from RMB 5,803.0 million as of December 31, 2023, to RMB 5,116.0 million as of December 31, 2024[96] - The debt-to-equity ratio improved from 45.3% as of December 31, 2023, to 35.9% as of December 31, 2024, primarily due to the early redemption of convertible bonds using internal cash flow[99] - Cash and cash equivalents decreased by 32.9% from RMB 887.9 million as of December 31, 2023, to RMB 595.7 million as of December 31, 2024[99] Shareholder Returns - The board approved a total of USD 10 million for share buybacks to enhance shareholder returns[59] - The company repurchased $35 million in convertible bonds and reduced financial costs by over 30% year-on-year, resulting in a net profit increase of over six times to RMB 73.0 million[55] - The board does not recommend the payment of a final dividend for the year ending December 31, 2024 (2023: nil) [160] Leadership and Governance - Liu Yingqi, the CEO, has over 25 years of experience in corporate management and information technology, previously serving as General Manager at Tencent's online payment platform[117] - The company has a strong leadership team with executives like Yao Zhijian, who has been CFO since 2011, overseeing financial and accounting matters[119] - The management team emphasizes innovation and technology as key drivers for future growth[121] - The leadership is committed to environmental, social, and governance (ESG) initiatives, with dedicated committees in place[119] Employee Incentives - The company has implemented a restricted share unit plan and stock option plan to attract and retain skilled and experienced personnel for future development and expansion[144] - The restricted share unit plan was adopted to replace the pre-IPO share incentive plan, with the aim of attracting and retaining skilled personnel for future development [172] - The performance assessment for vesting includes metrics such as work quality, efficiency, collaboration, and management skills[182] Risk Management - The company has established security systems including firewalls and intrusion detection systems to monitor and protect its IT infrastructure[151] - The company maintains a fraud prevention system that automatically monitors merchants and assesses fraud risks[156] - The company provides regular training for employees on anti-money laundering, fraud, and misconduct to enhance awareness and understanding of these issues[156]

华夏时报（www.chinatimes.net.cn）记者 胡梦然 深圳报道 近日，多个投诉平台出现针对乐刷支付POS机突然涨价的用户投诉，其中黑猫投诉平台近30天内便收录有600余 条，大部分内容为投诉乐刷POS机未提前告知用户的情况下单方面上调费率并私自扣费。 乐刷支付是深圳市移卡科技有限公司（下称"移卡科技"）的全资子公司，同时也是移卡科技核心业务的主要运营 主体。根据移卡科技2024年年度财报，一站式支付服务业务占总营收约87%。 公开资料显示，移卡科技（09923.HK）成立于2011年，主要为商户及消费者提供支付及商业服务。2014年，公司 获得央行支付业务许可证，提供全国银行卡收单及移动电话支付业务。2020年，移卡科技成功在港交所主板上 市。 针对费率上调、近期投诉增多等问题，《华夏时报》记者联系移卡科技，但截至发稿未获回复。 合规性建设受考验 除了收入下滑，移卡科技支付业务的合规性建设也备受考验。 今年3月底，中国人民银行深圳市分行连续对5家支付机构开出罚单，其中乐刷支付被罚款金额最高。具体来看， 乐刷支付因存在违反机构管理规定、违反商户管理规定、违反清算管理规定、未对外包服务商开展尽职调查 ...

Investment Rating - The report maintains a positive outlook on the cross-border payment industry, highlighting significant growth potential driven by policy support and technological innovation [4][7]. Core Insights - The internationalization of the Renminbi (RMB) is a key strategic move in the US-China rivalry, with a positive feedback loop beginning to form. The report notes that since 2024, there has been a surge in policies aimed at promoting cross-border e-commerce and payment systems, with 11 relevant policy documents issued compared to only two per year from 2021 to 2023 [5][20]. - The report emphasizes the importance of innovative payment systems such as CIPS, mBridge, and Brics Pay in facilitating RMB internationalization and improving payment efficiency compared to traditional systems like SWIFT [5][28]. - The cross-border payment industry is expected to see substantial growth as domestic payment institutions actively seek international expansion, with significant opportunities in both B2B and B2C segments [8][61]. Summary by Sections 1. Promoting RMB Internationalization - The report discusses the critical role of cross-border payments in RMB internationalization, highlighting the recent policy initiatives aimed at encouraging the development of cross-border e-commerce and payment systems [16][17]. - It outlines the strategic importance of RMB internationalization in mitigating the impacts of US dollar hegemony and enhancing China's global economic standing [21][22]. 2. Political and Technological Innovations Driving Payment System Reforms - The report compares existing systems like SWIFT with emerging Chinese systems (CIPS, mBridge, Brics Pay), noting the latter's advantages in transaction speed and cost [29][34]. - It details the operational frameworks of these new systems, emphasizing their potential to enhance the efficiency of cross-border payments [28][32]. 3. Industry Chain Expansion: Trends and Opportunities - The report identifies key players in the payment industry, including clearing institutions, banks, and third-party payment providers, and discusses their internationalization efforts [61][62]. - It highlights the competitive landscape, noting that while UnionPay has a strong global presence, there remains significant room for growth in overseas penetration [67]. 4. Listed Companies Related to the Payment Industry - The report provides insights into specific companies involved in the payment industry, such as Newland, which has obtained a rare European acquiring license, and Sifang Jingchuang, which is uniquely involved in the mBridge project [6][8]. - It also mentions companies like Lianlian and Feitian Chengxin, which are engaged in cross-border payment services and digital RMB initiatives [6][8].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 8.2 HKD, based on a 13x P/E valuation for 2025 [5]. Core Insights - The company's 2H24 performance fell short of market expectations, with total revenue of 1.5 billion HKD, a year-on-year decline of 20%, and a 11% miss compared to Bloomberg consensus [2][3]. - The payment business, which accounts for 89% of revenue, also underperformed, with a 6% revenue miss due to a larger-than-expected decline in GPV [1][2]. - The company is expected to see a recovery in its payment business in 2025, with projected revenue growth outpacing GPV growth, leading to a stabilization in profits [1][3]. Financial Performance Summary - Total revenue for 2H24 was 1.5 billion HKD, down 20% year-on-year, with a gross profit margin of 28%, up 9 percentage points year-on-year [2]. - The adjusted EBITDA for 2H24 was 220 million HKD, a 17% decline year-on-year, with an EBITDA margin of 14.7% [2][4]. - The company reported a net profit of 51 million HKD for 2H24, compared to a loss of 22 million HKD in the same period last year [2][4]. Business Segment Analysis - The one-stop payment service revenue decreased by 19% year-on-year in 2H24, while merchant solutions revenue fell by 30% due to a decline in the number of paying merchants [3]. - The overseas business showed significant progress, with a GPV of 1.1 billion HKD in 2024, nearly a fivefold increase year-on-year, driven by channel development and customer expansion [3][4]. Financial Projections - For 2025, the company anticipates a 9% year-on-year increase in payment GPV, with revenue growth slightly exceeding GPV growth [3][4]. - The adjusted net profit for 2025 is projected to be 270 million HKD, with a net profit margin of 4.5% [4][10].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 8.2, reflecting a 13x price-to-earnings ratio for 2025 [5]. Core Insights - The company's 2H24 performance fell short of market expectations, with total revenue of HKD 1.5 billion, a year-on-year decline of 20%, and a 11% miss compared to Bloomberg consensus [2][3]. - The payment business, which accounts for 89% of revenue, also underperformed, with a 6% revenue miss due to a greater-than-expected decline in Gross Payment Volume (GPV) [1][2]. - The company is expected to see a recovery in its payment business in 2025, projecting a high single-digit year-on-year growth, with revenue growth outpacing GPV growth [1][3]. Financial Performance Summary - Total revenue for 2023 was HKD 3.951 billion, with a projected decline to HKD 3.087 billion in 2024, followed by a recovery to HKD 3.402 billion in 2025, representing a 10.2% year-on-year growth [4]. - The adjusted net profit for 2025 is estimated at HKD 274 million, with a net profit margin of 4.5% [4][9]. - The company achieved a gross margin of 24.4% in 2025, up from 23.6% in 2024 [4]. Business Segment Analysis - The one-stop payment service revenue decreased by 19% year-on-year in 2H24, while merchant solutions revenue fell by 30% due to a decline in the number of paying merchants [3][9]. - The overseas business showed significant progress, with a GPV of HKD 1.1 billion in 2024, nearly a fivefold increase year-on-year, driven by bank channel development and customer expansion [3][4]. Market Position and Valuation - The company’s market capitalization is approximately HKD 3.166 billion, with a circulating market value of HKD 1.766 billion [5]. - The stock has experienced a 12-month low of HKD 6.4 and a high of HKD 13.4, indicating volatility in its market performance [5].

Macroeconomic Insights - China will impose a 34% tariff on all imports from the United States starting April 10, 2025, which is expected to significantly reduce agricultural imports from the U.S. [3] - In 2024, China imported agricultural products worth $24.9 billion from the U.S., with major imports including soybeans (22.1 million tons), sorghum (5.7 million tons), corn (2.1 million tons), and wheat (1.9 million tons) [3]. Agricultural Sector - The increase in tariffs is likely to enhance domestic grain prices and benefit the planting industry chain, emphasizing the need for self-sufficiency in grain production [3]. - The report highlights the importance of technological advancements in agriculture, particularly in genetically modified and gene-edited crops, which are expected to accelerate, benefiting seed companies with leading technology reserves [3]. - The report recommends focusing on companies that are actively expanding their domestic brands in the pet food sector, such as Guibao Pet and Zhongchong Co., which primarily generate revenue from domestic sales [4]. Livestock Industry - The report indicates that the pig farming sector is expected to see a significant improvement in profitability for the 2024 annual report and the first quarter of 2025, driven by favorable pig prices and reduced costs [5]. - The analysis of March's supply and demand dynamics in the pig farming industry shows a balanced market, but a potential downward trend in prices is anticipated if there is no support from state reserves [4][5]. Investment Recommendations - Recommended stocks in the poultry sector include Shengnong Development, Yisheng Shares, and Lihua Shares; for the post-cycle sector, recommended stocks are KQ Bio, Haida Group; in the pig farming sector, recommended stocks include Muyuan Foods, Wens Foodstuff Group, Tiankang Bio, and Shennong Group [7]. - In the seed industry, recommended stocks include Fengle Seed Industry, Quanyin High-Tech, Longping High-Tech, and Dabeinong [7]. - In the pet sector, recommended stocks are Guibao Pet, Zhongchong Co., and Ruipu Bio [7]. Chemical Industry - The report suggests that the imposition of a 34% tariff on U.S. imports will accelerate the domestic substitution process for chemical products, particularly in high-end markets [17]. - Beneficiary products include lubricant additives, nucleating agents, adsorption separation resins, and nano-silica, with specific companies recommended for investment [19]. Rare Earth Industry - The report maintains an "overweight" rating on the rare earth sector, anticipating that the recent tariffs will enhance China's strategic advantages in rare earth production and lead to price increases due to supply-demand mismatches [22]. - The export control measures on heavy rare earths are expected to stimulate overseas stockpiling, further driving up prices [23]. Insurance Sector - The insurance sector is projected to see stable growth in 2025, with a focus on improving asset-liability matching strategies [25]. - The report recommends increasing holdings in companies like China Pacific Insurance and New China Life Insurance, which are expected to benefit from improved investment returns and stable business strategies [40].

Core Viewpoint - The performance of the company in 2024 is generally in line with market expectations, with a revenue decline of 22% year-on-year to 3.1 billion yuan, while net profit increased significantly by 6.1 times to 82.45 million yuan [1] Group 1: Financial Performance - The adjusted EBITDA for 2024 decreased by 31% year-on-year to 380 million yuan, reflecting the impact of macroeconomic conditions [1] - The company is currently trading at 8x/5x EV/EBITDA for 2025/2026 estimates, with a target price reduction of 39% to 9.5 HKD, indicating an 18% upside potential [1] - The gross payment volume (GPV) for 2024 decreased by 19% year-on-year to 2.34 trillion yuan, primarily due to macroeconomic fluctuations and a decline in average transaction amounts per customer [2] Group 2: Business Segments - The company's overseas payment transaction volume increased nearly fivefold to over 1.1 billion yuan, benefiting from its ongoing global expansion strategy [2] - The overall fee rate for the company's acquiring business slightly decreased by 0.6 basis points year-on-year to 11.5 basis points, leading to a 23% decline in overall acquiring business revenue to 2.7 billion yuan [2] - The value-added services, including merchant solutions and in-store e-commerce services, contributed 13% to total revenue, with a slight increase of 1.2 percentage points year-on-year [3] Group 3: Operational Efficiency - The company has enhanced its operational efficiency through AI deployment, reducing related operational expenses by 20% in 2024, with sales, management, and R&D expenses each decreasing by approximately 11% [4] - Financial costs decreased by over 30% year-on-year due to streamlined debt structure and cost control measures, contributing to the significant increase in net profit [4] - The gross margin for value-added services remained stable at 87.2%, supported by high product profitability and cost management [3]

Group 1 - The company achieved a revenue of 30.9 billion yuan in 2024, a year-on-year decrease of 21.9%, but net profit increased by 622% to 0.7 billion yuan, driven by revenue structure optimization and cost reductions from AI-enabled efficiency improvements [4][5] - The payment business showed marginal improvement with a revenue decline of 22.9% to 26.9 billion yuan, attributed to a 19% drop in total GPV and a slight decrease in payment rates [5][6] - The company’s overseas payment business expanded significantly, with transaction volume exceeding 1.1 billion yuan, a nearly fivefold increase year-on-year [5] Group 2 - The company reported a revenue of 31.48 billion yuan in 2024, a decrease of 17.2%, with a net profit of 2.34 billion yuan, down 68.98% [11][12] - The domestic acquiring business processed a total of 1.47 trillion yuan, maintaining stable monthly transaction volumes, while overseas market revenue reached 9.01 billion yuan, with a 63.61% increase in high-end market revenue [13][14] - The company’s AI digital employee product has been commercialized, with applications in digital marketing and e-commerce [15] Group 3 - China Aluminum reported a revenue of 237.07 billion yuan in 2024, an increase of 5.2%, and a net profit of 12.4 billion yuan, up 85.4% [16][17] - The increase in profits was primarily due to rising aluminum and alumina prices, with alumina revenue reaching 74 billion yuan, a 38.3% increase [18] - The company plans to distribute a cash dividend of 0.135 yuan per share, with a total dividend amount of 3.72 billion yuan, reflecting a payout ratio of 30.2% [20] Group 4 - Three Squirrels reported a revenue of 10.622 billion yuan in 2024, a year-on-year increase of 49.3%, with a net profit of 408 million yuan, up 85.51% [22][23] - The company’s online revenue reached 7.407 billion yuan, with significant growth in various channels, particularly Douyin [23][24] - The company is planning to issue H shares to enhance its brand and global supply chain capabilities [25][26] Group 5 - Kailai Ying reported total revenue of 5.805 billion yuan in 2024, a decrease of 25.82%, with a net profit of 949 million yuan, down 58.17% [27][28] - The small molecule business showed stable growth, with revenue of 4.571 billion yuan, reflecting an 8.85% increase when excluding large orders [28][29] - The emerging business segment achieved revenue of 1.226 billion yuan, a growth of 2.25% [29] Group 6 - Zhejiang Shuju reported a revenue of 3.097 billion yuan in 2024, a slight increase of 0.61%, with a net profit of 512 million yuan, down 22.84% [30][31] - The online gaming business generated 1.34 billion yuan in revenue, with a gross margin of 91.04% [33] - The company plans to distribute a cash dividend of 1.60 yuan per 10 shares, totaling 203 million yuan [32] Group 7 - Zhongke Xingtou focuses on the space-earth big data industry, with a projected revenue of 40.78 billion yuan in 2025, increasing to 63.98 billion yuan by 2027 [38][41] - The company has established a comprehensive digital earth solution, integrating data collection, processing, and application [39][40] - The company aims to expand its business into low-altitude economy and commercial aerospace sectors [40] Group 8 - Yinghe Technology reported a revenue of 8.524 billion yuan in 2024, a decrease of 12.58%, with a net profit of 503 million yuan, down 9.14% [43][44] - The lithium battery equipment segment faced challenges, while the electronic cigarette segment showed strong performance with a revenue of 3.191 billion yuan [44][45] - The company expects growth in the lithium battery equipment market due to domestic production recovery and expansion into overseas markets [45][46] Group 9 - Meiya Optoelectronics achieved a revenue of 2.311 billion yuan in 2024, a decrease of 4.7%, with a net profit of 649 million yuan, down 12.8% [48] - The color sorting machine business grew by 9.9%, while the medical equipment segment faced a decline of 33.4% [49] - The company anticipates a recovery in the medical equipment sector due to ongoing economic development and demographic trends [49]