Core Viewpoint - The company has experienced a 27% year-on-year profit growth driven by an increase in payment service fees, aligning with expectations. The overseas payment business shows promising growth potential [1][2]. Group 1: Financial Performance - The company reported a revenue of 1.642 billion RMB for the first half of 2025, a 4% increase year-on-year, with net profit reaching 41 million RMB, reflecting a 27% growth [1]. - Payment business revenue was 1.429 billion RMB, up 6% year-on-year, contributing significantly to overall revenue growth, despite a slight decline in GPV by 1.9% to 11.4 trillion RMB due to macroeconomic fluctuations [1]. - The payment service fee rate increased to 0.125% in the first half of 2025 from 0.115% in the same period of 2024 [1]. Group 2: Business Segments - The merchant solutions business saw a revenue decline of 7.8% to 187 million RMB, although the number of active merchants grew by 5.8% [1]. - The gross profit margin for merchant solutions improved from 90.9% in 2024 to 91.3% in 2025 due to a shift towards higher-margin services [1]. - The in-store e-commerce business reported a revenue of 26 million RMB, down 13.5% year-on-year, primarily due to a strategic shift away from less profitable merchants [1]. Group 3: Overseas Payment Business - The overseas payment business has shown rapid growth, with transaction volume reaching 1.5 billion RMB in the first half of 2025, surpassing the total for the entire year of 2024 [2]. - The overseas payment fee rate stands at 0.67%, significantly higher than domestic rates, with a gross profit margin of 50%, well above the overall payment margin of 13.7% [2]. - Continued expansion in overseas payment services is expected to enhance profitability and better serve local merchants and consumers [2].

Group 1: Stablecoin and Digital Currency Applications - The company is actively collaborating with financial institutions to explore applications in stablecoins and digital currencies, leveraging its experience in retail payment research based on Web3 technology and expanding overseas digital fiat currency operations [2] - The company has extensive involvement in the digital renminbi sector, assisting state-owned banks in promoting digital currency applications and integrating them into consumption scenarios [2][3] Group 2: CIPS Business Focus - The company's focus on CIPS (Cross-border Interbank Payment System) includes infrastructure development, bank channel connections, and business application development, indicating a broad potential for future applications [3] Group 3: Overseas Payment Business - The company is strategically utilizing its domestic clearing and payment transaction systems to establish a comprehensive overseas layout, particularly in cross-border payment services [3] - The company has successfully launched related products and services in regions such as Hong Kong, Macau, and Southeast Asia, supporting local payment business development, including cross-border payments [3] Group 4: Risk Awareness - The investor relations activity highlighted that the content discussed, including future development plans and performance expectations, does not constitute a substantive commitment from the company, emphasizing the need for investors to remain aware of associated risks [3]