Core Insights - The company reported a revenue of 1.42 billion yuan for the first half of 2025, a year-on-year decline of 5.0%, with gross profit also down by 2.0%. However, the net profit attributable to shareholders after deducting non-recurring items was 220 million yuan, showing a significant increase of 49.5% year-on-year [1] - In Q2 2025, the company achieved a revenue of 890 million yuan, a slight increase of 0.1% year-on-year, with gross profit rising by 0.7%. The net profit attributable to shareholders after deducting non-recurring items was 160 million yuan, up by 41.8% year-on-year [1] Business Analysis - For the first half of 2025, the revenue from banking IT solutions was 1.2 billion yuan, down 8.9% year-on-year, while gross profit only decreased by 0.7%. Non-banking IT solutions generated 150 million yuan in revenue, up 28.2% year-on-year, with gross profit increasing by 13.9%. The innovative operations business saw revenue of 60 million yuan, a growth of 17.7%, but gross profit declined by 29.3% [2] - The significant increase in net profit attributable to shareholders was primarily due to a 14.0% reduction in total expenses, particularly a 39.2% decrease in sales expenses. Additionally, accounts receivable decreased by 30.6% compared to the same period last year, leading to a positive turnaround in credit impairment [2] - The company reported overseas business revenue of 16 million yuan, a remarkable growth of 121.3% year-on-year. The company is strengthening its presence in Southeast Asia and has recently entered the European market, while also expanding into the Middle East and Central Asia. To support its international strategy, the company plans to issue H shares and list on the Hong Kong Stock Exchange [2] Profit Forecast and Valuation - Based on the mid-year report for 2025, the company forecasts revenues of 3.9 billion yuan, 4.03 billion yuan, and 4.33 billion yuan for 2025 to 2027, reflecting year-on-year changes of -1.6%, 3.5%, and 7.5% respectively. The net profit attributable to shareholders is expected to be 520 million yuan, 580 million yuan, and 660 million yuan for the same period, with year-on-year growth rates of 35.8%, 13.2%, and 12.8%. The corresponding price-to-earnings ratios are projected to be 37.3, 32.9, and 29.2 times, maintaining a "buy" rating [3]

Core Viewpoint - Zandong Technology Co., Ltd. has submitted an application to the Beijing Stock Exchange after previously withdrawing its IPO application from the Shanghai Stock Exchange, indicating a significant shift in its fundraising strategy amid declining financial performance [2][4]. Group 1: IPO and Financial Performance - The company attempted to go public on the Shanghai Stock Exchange in 2021 but faced scrutiny over its risk disclosures and financial data, leading to the withdrawal of its application in June 2024 [2][4]. - Zandong Technology's revenue has been declining, with reported revenues of 1.184 billion yuan, 1.124 billion yuan, and 1.071 billion yuan for 2022, 2023, and 2024 respectively, reflecting year-on-year changes of -11.82%, -5.08%, and -4.67% [7]. - The net profit attributable to the parent company also decreased significantly, with figures of 117 million yuan, 90.61 million yuan, and 73.43 million yuan for the same years, showing year-on-year changes of 26.24%, -22.36%, and -18.97% [7]. Group 2: Business Model and Clientele - Zandong Technology specializes in providing IT solutions for banks and financial institutions, with over 90% of its revenue coming from software development and services [5][6]. - The company has established a strong client base, including one policy bank, four large state-owned commercial banks, eleven joint-stock banks, and over 200 regional banks and non-bank financial institutions [5]. Group 3: Fundraising and Project Plans - The company plans to raise 294 million yuan in its current IPO, a significant reduction of 65% from the previously planned 834 million yuan during its initial attempt [11][14]. - The funds will be allocated to projects such as the upgrade of smart cloud cabinets, the construction of a financial collaboration platform, and the development of the Zhi Yan banking system [11][12][14].