Lakala(SZ:300773) Sou Hu Cai Jing·2025-11-05 08:44Core Viewpoint - Lakala is seeking to list on the Hong Kong Stock Exchange to enhance its international development strategy and strengthen its global competitiveness, despite facing challenges such as declining performance and compliance issues [1][5]. Group 1: IPO and Strategic Goals - Lakala has submitted an application for a main board listing on the Hong Kong Stock Exchange, aiming to establish an "A+H" share listing structure [1]. - The funds raised from the IPO will primarily be used for license expansion, overseas market growth, technology enhancement, and strategic investments [1]. Group 2: Shareholder Actions - Founder Sun Haoran has completed a share reduction plan, selling a total of 1.927 million shares for approximately 500 million yuan [2]. - Lenovo Holdings, the largest shareholder, plans to reduce its stake by up to 23.64 million shares over three months, continuing a trend of share reductions since Lakala's listing [4]. Group 3: Market Position and Financial Performance - In 2024, China's digital payment market is projected to reach approximately 331.7 trillion yuan, with Lakala holding a 9.4% market share among independent digital payment service providers [3]. - Lakala's revenue has fluctuated significantly, with a decline in net profit from -1.438 billion yuan in 2022 to 351 million yuan in 2024, reflecting ongoing challenges in the digital payment sector [5][6]. Group 4: Operational Challenges - The company reported a 7.32% year-on-year decline in revenue for the third quarter, attributed to a decrease in digital payment income and overall pressure on card payments [5][6]. - The total transaction volume for Lakala's domestic and cross-border payment services reached 2.99 trillion yuan in the first three quarters, with a notable increase in cross-border payments [7]. Group 5: Compliance and Industry Outlook - Lakala has faced multiple compliance issues since its listing, with fines exceeding 16 million yuan due to inadequate customer due diligence and transaction management [8]. - The company is attempting to transition from traditional payment services to comprehensive fintech solutions, but the effectiveness of this strategy remains to be seen [9].