Venture(US:VEMLY) 3 6 Ke·2025-10-20 09:49Core Viewpoint - The recent announcement by the National Cybersecurity Center regarding 34 mobile applications, including 51 Credit Card's app, for illegal collection and use of personal information has led to a significant decline in the company's stock price, which has dropped 22% since the news broke [1][3]. Group 1: Company Background and Transformation - 51 Credit Card, which has rebranded to VALA, has shifted its focus from financial technology to the electric vehicle sector, marking a significant change in its business model [3][12]. - The company was initially founded in 2012 by entrepreneur Sun Haitao, who identified a market need for credit card management, leading to the development of the 51 Credit Card app [9][10]. - The app gained popularity and expanded into loan facilitation, becoming a significant player in the fintech space, with a peak loan facilitation amount exceeding 300 billion yuan before facing regulatory challenges [10][11]. Group 2: Regulatory Issues and Compliance Failures - The app has faced multiple regulatory issues, including a 2019 incident where the company was investigated for illegal debt collection practices, leading to a sharp decline in its stock price [4][10]. - In December 2022, the app was again flagged for violations related to the collection and use of personal information, highlighting ongoing compliance challenges [5][6]. - The company has been criticized for repeatedly failing to adhere to personal information protection laws, which has contributed to its declining reputation and business performance [5][7]. Group 3: Current Business Performance and Challenges - As of mid-2025, the 51 Credit Card app had approximately 88.8 million registered users and managed around 153 million credit cards, but the company has struggled to maintain its previous growth trajectory [6]. - The transition to VALA has not yet yielded significant results, with the company facing challenges in achieving its sales targets for its new electric vehicles, having delivered only 342 cars in the first three quarters of the year [15][16]. - The company's attempts to diversify into other sectors, such as SaaS and camping, have not produced substantial revenue, indicating difficulties in its transformation strategy [11][12]. Group 4: Market Perception and Future Outlook - VALA's marketing strategy relies heavily on social media and influencer engagement, but there are concerns about the effectiveness of this approach in the automotive sector, where consumer decision-making processes are longer and more complex [15][19]. - The brand's limited recognition and the challenges of establishing a lifestyle brand in a niche market may hinder its growth potential, as evidenced by the slow sales and mixed consumer feedback [17][19]. - The company's future success will depend on its ability to build a solid brand reputation and deliver quality products and services, as any shortcomings could lead to significant public relations issues [19].