Core Viewpoint - The company reported strong financial performance in 1H25, with significant revenue growth and a return to profitability, driven by strategic asset sales and robust payment processing activity [1][2]. Financial Performance - 1H25 revenue increased by 27% year-on-year to 780 million yuan, with net profit turning positive at 151 million yuan compared to a net loss of 35 million yuan in 1H24, largely due to over 1.6 billion yuan in gains from the sale of a stake in a subsidiary [1][2]. - Adjusted recurring operating profit was 6.258 million yuan, a significant improvement from a loss of 8.88 million yuan in 1H24, indicating enhanced core business profitability [2]. Business Trends - Total Payment Volume (TPV) for 1H25 grew by 32% year-on-year to 2.1 trillion yuan, outpacing revenue growth of 27% [1]. - Global payment TPV surged by 94% to 198.5 billion yuan, while domestic payment TPV rose by 28% to 1.9 trillion yuan, with stable fee rates contributing to revenue growth [1]. - Value-added services revenue increased by 34% to 90 million yuan, driven by virtual card offerings and the expansion of digital products [1]. Profitability Metrics - Gross profit for 1H25 rose by 25% to 410 million yuan, maintaining a high gross margin of 52% [2]. - The gross margin for global payments was 72.7%, while domestic payments stood at 19.9%, with a slight decline in value-added services margin attributed to lower profitability in virtual card operations [2]. Strategic Outlook - The company anticipates steady growth in payment business, projecting TPV to continue increasing and revenue growth to exceed 20% in the coming years, with a target recurring operating profit of nearly 70 million yuan in 2025 [3]. - The company plans to allocate 30% of its fundraising to enhance global licensing and local service capabilities, while 50% will focus on blockchain technology innovations in cross-border payments [3]. Market Position - As a leading cross-border payment service provider, the company is well-positioned to benefit from Web3 payment innovations and has obtained a VATP license, which opens new growth avenues [3]. Valuation and Forecast - Revenue forecasts for 2025 and 2026 have been raised by 2% to 1.65 billion yuan and 2.02 billion yuan, respectively, while maintaining adjusted profit estimates [4]. - The target price has been increased by 3.3% to 15.8 HKD, reflecting a potential upside of 39% based on a price-to-sales ratio of 9x for 2025 and 8x for 2026 [4].

Core Viewpoint - CICC maintains a "outperform industry" rating for Lianlian Digital (02598.HK) and raises the target price by 3.3% to HKD 15.8 due to improved market sentiment [1] Financial Performance - Lianlian Digital's 1H25 performance met expectations, with revenue increasing by 27% year-on-year to CNY 780 million, and net profit turning positive to CNY 1.51 billion [1] - Total Payment Volume (TPV) rose by 32% year-on-year to CNY 2.1 trillion, outpacing the revenue growth of 27% [1] - Gross profit increased by 25% year-on-year to CNY 410 million, maintaining a high gross margin of 52% [1] Future Projections - CICC has adjusted revenue forecasts for 2025 and 2026 upwards by 2% each to CNY 1.65 billion and CNY 2.02 billion respectively, anticipating steady growth in TPV and payment revenue [1] - The company is expected to achieve a recurring operating profit of nearly CNY 70 million in 2025 [1] Competitive Advantages - Lianlian Digital has significant advantages in licensing compliance, having recently obtained SFC Type 3 license for regulated leveraged foreign exchange trading, as well as in technological innovation and global network [1] - The company is continuously enhancing its global licensing layout and local service capabilities overseas [1] - As a leading cross-border payment service provider, Lianlian Digital is poised to benefit from Web3 payments and VATP licenses, which open up growth opportunities [1]

Core Viewpoint - The report from CICC indicates a significant increase in the Total Payment Volume (TPV) for Lianlian Digital, leading to an upward revision of revenue forecasts for 2025 and 2026 by 2% to 1.65 billion and 2.02 billion HKD respectively, while maintaining adjusted profit estimates unchanged [1] Group 1: Financial Performance - In 1H25, Lianlian Digital's revenue increased by 27% year-on-year to 780 million HKD, with net profit turning positive at 151 million HKD compared to a net loss of 350 million HKD in 1H24, largely due to over 1.6 billion HKD in gains from the sale of part of its stake in LianTong [2] - The TPV for 1H25 rose by 32% year-on-year to 2.1 trillion HKD, outpacing the revenue growth of 27% [3] - Gross profit for 1H25 increased by 25% year-on-year to 410 million HKD, maintaining a high gross margin of 52% [4] Group 2: Business Segments - Global payment TPV surged by 94% year-on-year to 198.5 billion HKD, although the overall fee rate declined to 24 basis points due to higher growth in lower-fee service trade and B2B sectors [3] - Domestic payment TPV grew by 28% year-on-year to 1.9 trillion HKD, with a stable fee rate of 1.1 basis points [3] - Value-added services revenue increased by 34% year-on-year to 90 million HKD, primarily driven by contributions from virtual card services [3] Group 3: Strategic Initiatives - The company plans to allocate 50% of the funds raised from placements to enhance blockchain technology applications in cross-border payments, aiming to improve efficiency and security [7] - The company has received approval for the VATP virtual asset trading platform license, which is expected to expand its service capabilities in cross-border payments [7] - The company anticipates steady growth in TPV and payment revenue, projecting a near 700 million HKD in regular operating profit for 2025 [6]

Core Viewpoint - The report from CICC indicates a strong performance for Lianlian Digital, with an upward revision of revenue forecasts for 2025 and 2026 by 2% to 1.65 billion and 2.02 billion HKD respectively, while maintaining adjusted profit estimates unchanged [1] Group 1: Financial Performance - In 1H25, Lianlian Digital's revenue increased by 27% year-on-year to 780 million HKD, with net profit turning positive at 1.51 billion HKD compared to a net loss of 350 million HKD in 1H24, largely due to over 1.6 billion HKD in gains from the sale of part of its stake in LianTong [2] - The total payment volume (TPV) for 1H25 rose by 32% year-on-year to 2.1 trillion HKD, outpacing the revenue growth of 27% [3] - Gross profit for 1H25 increased by 25% year-on-year to 410 million HKD, maintaining a high gross margin of 52% [4] Group 2: Business Segments - Global payment TPV surged by 94% year-on-year to 198.5 billion HKD, with a decline in overall fee rates to 24 basis points due to higher growth in lower-fee service trade and B2B sectors [3] - Domestic payment TPV grew by 28% year-on-year to 1.9 trillion HKD, with stable fee rates at 1.1 basis points [3] - Value-added services revenue increased by 34% year-on-year to 90 million HKD, contributing 11% to total revenue, driven by virtual card services and the expansion of digital products [3] Group 3: Strategic Outlook - The company expects steady growth in payment business, with TPV projected to increase and payment revenue maintaining a growth rate of over 20% in the next 2-3 years [6] - The company plans to allocate 50% of its fundraising to enhance blockchain technology in cross-border payments, aiming to improve efficiency and security [7] - The recent approval of the VATP license opens up new growth opportunities in the Web3 payment sector, allowing the company to explore additional revenue streams [7]

Core Insights - The seminar focused on the explosive growth of stablecoins, regulatory reshaping, and payment transformation in the Web3 payment industry [1][3] Group 1: Stablecoin Market Dynamics - The stablecoin market is characterized by a significant scale and oligopolistic effect, with USDT and USDC accounting for over 86% of the market share [3] - There are seven key information gaps between traditional payment systems and stablecoin payments identified by industry experts [3] Group 2: Regulatory and Compliance Framework - Discussions highlighted the importance of a robust technical compliance framework for stablecoins, including risk management and anti-money laundering (AML) measures [3][5] - The need for a risk-based transaction monitoring system to track the flow of stablecoins and maintain a blacklist of sanctioned addresses was emphasized [3] Group 3: Innovation and Licensing in Crypto Payments - The seminar covered the innovative pathways and compliance practices for crypto payments, detailing licensing requirements in major regions such as the EU and Singapore [7] - The EU's MiCA CASP licensing requirements were specifically discussed, including capital requirements and management reviews [7] Group 4: RWA as a Use Case for Stablecoins - Real World Assets (RWA) were identified as a valuable application scenario for stablecoins, providing significant use cases within the stablecoin ecosystem [10] Group 5: Industry Perspectives and Future Directions - The roundtable discussion addressed the regulatory landscape for stablecoins globally, with a focus on the challenges and pathways for implementation [11] - Experts suggested that practitioners in the Web3 space should prioritize entering regions with mature regulations to gain experience in compliance and industry logic [12]

Core Insights - The passage of the "Stablecoin Regulation" in Hong Kong marks a significant milestone for the financial technology ecosystem, leading to increased interest in stablecoins and Web3 payments [1][2] - A seminar hosted by OKG Research and Hong Kong University focused on the implications of stablecoin legislation and the future of Web3 payments [1] Group 1: Stablecoin Market Overview - As of May 2025, the global supply of stablecoins is projected to approach $250 billion, reflecting a growth of over 54% in the past 12 months [2] - The market capitalization of stablecoins is equivalent to 1.13% of the U.S. M2 money supply, with annual transaction volume expected to exceed $10 trillion [2] - The penetration rate of Web3 payments is anticipated to rise to around 20% in the next two years due to improved user experience and merchant coverage [2] Group 2: Opportunities and Challenges in Hong Kong - The stablecoin legislation presents a major opportunity for Hong Kong, leveraging its unique position to connect Eastern and Western markets [4] - Key factors for the promotion and application of stablecoins include ensuring their stability and establishing sufficient market scale and application scenarios [4] Group 3: Web3 Payment Ecosystem - Experts at the seminar discussed the transformative potential of Web3 payments, emphasizing the importance of building a verifiable trust structure to address traditional challenges in cross-border payments and transactions [5] - The infrastructure for Web3 is rapidly evolving, but achieving bank-level trust and scale requires further institutional and ecological support [5] - The future of stablecoins is seen as optimistic, with trends indicating stronger international regulatory integration, increasing market acceptance, and the development of a robust stablecoin ecosystem [5] Group 4: Future Projections - OKG Research predicts that the global stablecoin market supply could reach $3 trillion by 2030, with annual transaction volume surpassing $100 trillion, positioning stablecoins as a crucial bridge between Web3 and the real world [6]

Group 1: Huawei Pura 80 Launch - Huawei officially announced the launch of Pura 80 Pro and Pura 80 Pro+ with over 40,000 reservations within two and a half hours [1] - The new series is expected to enhance imaging technology, performance, and user experience, and will come pre-installed with HarmonyOS 5 [1] - Analysts predict sales could reach over 10 million units, intensifying competition in the high-end smartphone market [1] Group 2: JD's Stablecoin Development - JD has entered the second phase of sandbox testing for its stablecoin, focusing on scenarios like cross-border payments, investment transactions, and retail payments [3] - The stablecoin is pegged 1:1 to fiat currencies such as HKD and USD, with the first phase targeting these currencies [3] - JD aims to provide efficient, economical, and secure payment infrastructure for global enterprises and individuals [3] Group 3: SHEIN Consumer Complaint - The European Consumer Organization has filed a complaint against SHEIN, accusing it of using "dark patterns" to promote excessive consumer spending [4] - This practice is said to exacerbate environmental and social issues caused by the fast fashion industry [4] Group 4: 6G User Projections - Omdia forecasts that by 2030, the number of global 6G users will reach 289 million, supported by significant investments in RAN [6][7] - RAN investment is expected to grow to $4 billion by 2030 and $25 billion by 2035, indicating a substantial increase in market size [6][7] Group 5: AMD's Acquisition of Brium - AMD has acquired open-source software company Brium to enhance its AI capabilities, marking a strategic commitment to AI development [8] - This acquisition follows previous investments in AI-focused companies, aiming to improve performance on AMD hardware [8] Group 6: NASA Director Nomination Withdrawal - The White House has withdrawn the nomination of Jared Isaacman for NASA director, with implications linked to his close relationship with Elon Musk [9] Group 7: Gree's Dividend Policy - Gree Electric's chairman, Dong Mingzhu, emphasized the company's commitment to dividends, stating that over 170 billion has been distributed since its IPO [10] - This approach is framed as a moral obligation to share wealth with shareholders who supported the company [10] Group 8: Citigroup's Restructuring - Citigroup announced adjustments to its global technology and business support departments, clarifying that these changes will not affect its operations in China [11] Group 9: Support for Mergers and Acquisitions - The China Securities Regulatory Commission (CSRC) expressed strong support for mergers and acquisitions among listed companies to enhance market vitality [12] Group 10: Legal Issues for Evergrande - Evergrande Group faces over 7 billion in legal executions, with numerous cases related to financial disputes [15] - The company has a total of over 630 execution records, amounting to more than 80.5 billion in total claims [15]