Core Viewpoint - The announcement highlights that the parent company, Cuiwei Co., Ltd., has provided a bank credit guarantee of 200 million yuan to its subsidiary, Haike Rongtong Payment Service Co., Ltd., to support its financing needs and daily operations amid ongoing financial losses [2][3]. Group 1: Financial Support and Guarantees - Cuiwei Co., Ltd. signed a guarantee contract with Tianjin Bank to provide a joint liability guarantee for Haike Rongtong's credit application, with a guarantee period of three years [3]. - This is not the first time Cuiwei has provided guarantees; since 2025, it has signed agreements with multiple banks, totaling 560 million yuan in credit guarantees, with an actual guarantee balance of 400 million yuan, accounting for 18.7% of Cuiwei's latest audited net assets [3][4]. - The guarantee is seen as necessary due to Haike Rongtong's smaller scale and lower credit rating, which makes direct financing challenging [3]. Group 2: Financial Performance of Haike Rongtong - As of the end of 2024, Haike Rongtong reported total assets of 1.284 billion yuan and total liabilities of 1.096 billion yuan, resulting in a net loss of 378 million yuan for the year [6]. - In the first half of 2025, total assets slightly increased to 1.377 billion yuan, with liabilities rising to 1.284 billion yuan, and a net loss of 95 million yuan, indicating a slight improvement in loss compared to the previous year [6]. - The company's revenue for the first half of 2025 was 725 million yuan, reflecting a year-on-year decline of 0.5% [6]. Group 3: Industry Challenges and Strategic Recommendations - Haike Rongtong's ongoing losses are attributed to its heavy reliance on traditional acquiring services and the competitive pressure from declining fee rates in the industry [7]. - The payment market is expected to see rising compliance costs and regulatory demands, further squeezing the survival space for mid-sized payment institutions like Haike Rongtong [7]. - Recommendations for Haike Rongtong include optimizing cost structures, focusing on high-value sectors such as cross-border payments and SaaS services, and potentially seeking strategic investors to enhance capital [8].