Lakala(SZ:300773) Zheng Quan Zhi Xing·2025-04-25 09:50Core Viewpoint - Lakala is experiencing significant declines in both revenue and net profit, particularly in Q1 2025, where net profit has halved compared to the previous year, indicating severe operational challenges and investment losses [1][2][3]. Financial Performance - In 2024, Lakala reported a revenue of 5.759 billion yuan, a decrease of 2.96% year-on-year, primarily due to reduced hardware sales and technology service income [2]. - The net profit for 2024 was 351 million yuan, down 23.26% year-on-year, influenced by high investment income in the previous year and losses from equity disposals [2]. - For Q1 2025, revenue fell by 13.02% year-on-year, while net profit dropped by 51.71% [2][3]. Investment Losses - Lakala faced a significant investment loss from its stake in Baotou Rural Commercial Bank, where it incurred a fair value loss of approximately 135 million yuan after opting for a zero-value buyout of its shares [4][5]. - This investment failure has adversely affected the company's financial health and investor confidence [5]. Business Challenges - The company’s digital payment business saw a slight revenue decline of 0.27% in 2024, with total payment transaction volume at 4.22 trillion yuan, down 13.62% year-on-year [6]. - The technology service segment experienced a revenue drop of 18.43%, primarily due to a 78.17% decrease in credit card marketing service income [6]. - The competitive landscape in the payment industry is intensifying, with major players like Alipay and WeChat Pay dominating market share, posing a threat to Lakala's growth [6][7]. Stock Market Reaction - Following the release of disappointing financial results, Lakala's stock price fell significantly, with a cumulative drop of over 15% in two days, closing at 23.28 yuan per share [1][7].