Core Insights - Recently, Lianyi Rong (9959.HK), a Chinese supply chain fintech service provider, announced a strategic partnership with XRPL, a global enterprise-level blockchain solution provider, to deploy its global digital supply chain financial application on the XRP Ledger mainnet [1] - This collaboration aims to facilitate the circulation and cross-border settlement of digital assets in real trade contexts, marking Lianyi Rong's integration into the global decentralized finance ecosystem and showcasing its continuous innovation in cross-border trade finance [1] - Future explorations will include deeper cooperation in stablecoins and supply chain financial innovations, focusing on RWA asset trading based on smart contracts and the integration of blockchain and AI in global trade finance scenarios [1] Company Overview - Lianyi Rong aims to empower supply chain finance through technology, targeting to become a leading global digital solution provider, with cross-border operations established in 27 countries and regions since 2019 [3] - The company has processed cross-border assets amounting to 20.7 billion in 2024 and has formed significant partnerships, including obtaining a digital banking license in Singapore and collaborating with Standard Chartered Bank to create a blockchain-driven digital trade finance platform [3] - In 2023, Lianyi Rong participated in the Project Dynamo asset tokenization initiative alongside the Bank for International Settlements Innovation Hub and Standard Chartered Bank, successfully issuing the industry's first tokenized product backed by trade assets [3] Industry Context - XRPL was launched in 2012 by developers aiming to create a more efficient and sustainable value transfer system compared to Bitcoin, utilizing a distributed ledger and its native digital asset, XRP [2] - The XRPL ecosystem is supported by global partners, including Coil and Ripple, to accelerate technological development and widespread adoption of decentralized finance solutions [2] - In 2024, Lianyi Rong co-founded SuperFi Labs, a DeFi innovation lab focused on building next-generation consumer products on-chain, further promoting the development of digital currencies and decentralized finance [4]

Core Insights - The company reported a slight decline in revenue for the first half of 2025, achieving 405 million yuan, a decrease of 7.1% year-on-year, while net profit increased by 23% to 203 million yuan [1] - The company's light asset strategy has led to a revenue decline, but it has strengthened its technology platform capabilities to meet the supply chain financing needs of small and micro enterprises [1][2] - The growth in net profit aligns with expectations, with adjusted net profit reaching 203.5 million yuan, a year-on-year increase of 22.6% [1] Revenue and Profit Analysis - Revenue from platform technology services reached 210.6 million yuan, a year-on-year increase of 37%, accounting for 52% of total revenue, up 14 percentage points [1] - Digital financial solutions revenue declined by 29.5% to 194.02 million yuan [1] Client and Funding Growth - The platform's cumulative client base grew to 19,128, an increase of 1,015 clients compared to the end of 2024 [2] - The platform has helped clients resolve 278 billion yuan in funding turnover, an increase of 29 billion yuan from the end of 2024 [2] - The number of funding partners increased by 31% year-on-year to 181, with a credit limit of 38.497 billion yuan, up 28% year-on-year [2] Supply Chain Asset and Industry Outlook - As of the end of the first half of 2025, the supply chain asset balance was 26.4 billion yuan, a year-on-year increase of 10.5% [2] - The company anticipates growth in the e-commerce and robotics sectors, having provided over 2.8 billion yuan in loans to e-commerce businesses [2] - A strategic partnership with Stand Robotics aims to enhance supply chain services and AI applications [2] Investment Rating - The company maintains a "buy" rating, with expectations for continued rapid growth in supply chain finance and fintech services [3] - Adjusted net profit forecasts for 2025, 2026, and 2027 are slightly lowered to 497.43 million yuan, 655.01 million yuan, and 821.54 million yuan, respectively [3] - Current stock price corresponds to a PE ratio of 22, 17, and 14 for the respective years, indicating attractive valuation and dividend potential [3]

Core Viewpoint - Shengye (06069) reported a mixed performance in its interim results, with a decline in revenue but an increase in net profit, reflecting the impact of its strategic transformation and successful platform initiatives [1] Financial Performance - The company achieved a revenue of 405 million yuan in the first half of the year, a year-on-year decrease of 7.1% [1] - The net profit attributable to shareholders was 200 million yuan, representing a year-on-year increase of 28.7% [1] Strategic Insights - The decline in revenue is attributed to the company's ongoing shift towards a light-asset strategy, which has led to reduced interest income from self-owned capital investments and a continuous drop in income from supply chain asset refinancing [1] - The successful advancement of the platform strategy has partially offset the negative impact of the revenue decline [1] Future Outlook - The company is expected to continue benefiting from its strategic positioning in e-commerce, AI, and robotics, which are anticipated to drive the expansion of its supply chain technology platform [1] - There is potential for further optimization of the overall fee structure as the proportion of high-value-added income increases, which could enhance profitability [1] - The projected total dividend payout for 2025 is approximately 950 million yuan, corresponding to an expected dividend yield of 8.6%, providing substantial returns to shareholders [1] - The forecast for the company's net profit attributable to shareholders in 2025 is 512 million yuan, reflecting a year-on-year growth of 35% [1]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [7]. Core Views - The company's 2025 interim results met expectations, with a revenue of 405 million yuan, a slight year-on-year decline of 7.1%, while net profit reached 203 million yuan, reflecting a year-on-year growth of 22.9% [7]. - The company is focusing on a light asset strategy, enhancing its technology platform capabilities to better serve small and medium enterprises in their supply chain financing needs [7]. - The growth in net profit is attributed to an increase in platform clients and financial lending, with the total number of platform clients rising to 19,128, up from 18,113 at the end of 2024 [7]. - The report highlights the anticipated growth in e-commerce and robotics sectors, with significant partnerships established to enhance service offerings [7]. Financial Summary - Total revenue projections for the company are as follows: 2023A: 1,024.23 million yuan, 2024A: 976.22 million yuan, 2025E: 1,097.31 million yuan, 2026E: 1,328.74 million yuan, and 2027E: 1,571.74 million yuan [7]. - The forecasted net profit for the company is projected to be: 2023A: 268.25 million yuan, 2024A: 380.18 million yuan, 2025E: 497.43 million yuan, 2026E: 655.01 million yuan, and 2027E: 821.54 million yuan [7]. - The earnings per share (EPS) estimates are: 2023A: 0.27 yuan, 2024A: 0.38 yuan, 2025E: 0.49 yuan, 2026E: 0.65 yuan, and 2027E: 0.81 yuan [7]. - The current price-to-earnings (P/E) ratios are projected to be 41.56 for 2023A, 29.33 for 2024A, 22.41 for 2025E, 17.02 for 2026E, and 13.57 for 2027E [7].

Core Viewpoint - The company aims to expand into the fintech sector by integrating upstream and downstream resources such as farmers and stores, enhancing supply chain finance to support diversified development and reduce reliance on external financing [2] Group 1 - The company plans to broaden its financial technology initiatives [2] - The integration of resources from farmers and stores is a key strategy [2] - The focus on supply chain finance is intended to support the group's diversified development [2]

Core Insights - The company, Shengye, reported a net profit of approximately 200 million RMB for the first half of the year, marking a 23% year-on-year increase, and has been profitable for 11 consecutive years [2][5] - Shengye processed a total supply chain asset of about 62 billion RMB over the past 12 months, with expectations to reach close to 1 billion RMB in net profit by 2027 [4][5] - The company is transitioning from a traditional financing model to a platform-based model, significantly reducing its reliance on self-funded loans and increasing its technology service revenue, which grew by 37% year-on-year [5][6] Financial Performance - For the first half of 2025, the company's total revenue from core business was approximately 405 million RMB, a decrease of 7.1% compared to the previous year [6] - Platform technology service revenue reached 210.6 million RMB, up 37% year-on-year, while digital financial solutions revenue fell by 29.5% [6] - The net profit for the first half of 2025 was 202.96 million RMB, reflecting a 22.9% increase from the previous year [6] Business Strategy - Shengye's management is focusing on expanding its partnerships, having linked with 181 funding partners, a 31% increase year-on-year [7] - The company is diversifying its service offerings, with a significant focus on e-commerce, where service fees can reach nearly 5%, compared to 1% to 2.5% in traditional sectors [13][15] - The company aims to fully transition to a platform-based model by 2026, reducing its reliance on self-funding for loans [15] Market Potential - Shengye's primary business sectors include infrastructure, commodities, and healthcare, which represent a potential market size of 4 trillion RMB, with the company currently capturing only 2% of this market [8][9] - The company has identified significant growth opportunities in the e-commerce sector, with a reported 8-fold increase in e-commerce funding facilitation, totaling over 2.8 billion RMB [13][15] Technological Development - The company is positioning itself as a "smart technology company" focused on AI and supply chain solutions, with plans to enhance its technological capabilities [20] - Shengye is investing in computing power and robotics, with a new headquarters in East China aimed at supporting its technological infrastructure [21][23]

Investment Rating - The report maintains a "Buy" rating for the company, anticipating a price increase of over 15% in the next 6-12 months [5][12]. Core Insights - In the first half of 2025, the company achieved a revenue of 405 million RMB, a year-on-year decrease of 7.1%, while the net profit attributable to shareholders increased by 28.7% to 200 million RMB [2]. - The decline in revenue is attributed to the company's ongoing shift towards a light-asset strategy, which has led to reduced interest income from self-funded investments and declining returns from supply chain asset refinancing. However, this impact has been partially offset by the successful implementation of a platform strategy [3]. - The company's platform technology service revenue reached 211 million RMB, showing a robust year-on-year growth of 37.0%, accounting for over 50.0% of total revenue, thus becoming a core growth driver [3]. - The company has seen a significant increase in its share of joint venture performance, which rose by 94.1% to 79 million RMB, providing crucial support for net profit growth [3]. - The cumulative transaction scale of the company's platform exceeded 2,780 billion RMB by the end of June 2025, reflecting a year-on-year growth of approximately 29% [3]. - The company is actively expanding into innovative sectors such as e-commerce, achieving a cumulative transaction scale of over 2.8 billion RMB in this area, which represents an almost eightfold increase year-on-year [3]. - A strategic partnership with a leading global industrial robotics company has been established, marking significant progress in the emerging robotics sector [4]. Financial Forecasts and Valuation - The company is expected to continue benefiting from its strategic positioning in e-commerce, AI, and robotics, driving further expansion of its supply chain technology platform [5]. - The overall fee structure is anticipated to improve as the proportion of high-value income increases, enhancing profitability [5]. - The total dividend payout for 2025 is projected to be approximately 950 million RMB, resulting in a high expected dividend yield of 8.6% for shareholders [5]. - The forecasted net profit for the full year 2025 is estimated to reach 512 million RMB, representing a year-on-year growth of 35%, with a corresponding price-to-earnings ratio of 21.4 times [5].

Core Viewpoint - Shengye Holdings Group Limited has demonstrated a successful strategic transformation, achieving a net profit increase of approximately 23% despite a slight decline in overall revenue, highlighting the effectiveness of its platform technology services and light-asset strategy [1][3][8]. Financial Performance - For the six months ending June 30, 2025, Shengye reported a main business revenue of 405 million yuan, a year-on-year decrease of 7.1%, while net profit rose to 203 million yuan [1]. - The platform technology service revenue reached 211 million yuan, a significant year-on-year increase of 37%, accounting for over 50% of total revenue [1][3]. - The company has maintained profitability for 11 consecutive years and has committed to a dividend payout ratio of no less than 90% from 2024 to 2026, with an expected total dividend of 950 million yuan for 2025 [2]. Strategic Transformation - The increase in platform technology service revenue is attributed to the continuous expansion of Shengye's platform ecosystem and enhanced technological capabilities, with over 19,100 cumulative clients, a 14.4% year-on-year growth [1][3]. - The light-asset strategy has led to a 33.9% reduction in financing costs, while the average financing cost for clients using the platform has decreased by over 30% [3][4]. Technological Investment - Shengye has invested nearly 270 million yuan in R&D in the first half of 2025, maintaining a high proportion of R&D personnel at 30% [4]. - The company holds 88 national invention patents and software copyrights, with applications in AI, big data, and cloud computing [4][6]. New Industry Layout - Shengye is actively expanding into emerging industries such as e-commerce, robotics, and AI applications, with significant growth in e-commerce partnerships, achieving a funding scale of over 2.8 billion yuan, an increase of nearly 800% year-on-year [5][6]. - The company has established strategic cooperation with leading firms in the robotics sector, positioning itself for growth in the rapidly expanding Chinese robotics market, which exceeds 190 billion yuan [5]. Internationalization and Innovation - Shengye has designated its Singapore subsidiary as its international headquarters and is expanding its presence in Southeast Asia and Turkey, successfully completing its first international funding facilitation [7]. - The company is exploring Web 3.0 and stablecoin applications to reduce cross-border payment costs and mitigate exchange rate risks, with a current operating cash flow of 3.56 billion yuan [7]. Industry Outlook - The supply chain finance industry is experiencing growth driven by national policies, particularly in technology finance, green finance, and digital finance, despite challenges such as information inadequacies and financing difficulties for SMEs [8][9]. - Shengye's performance reflects significant changes in China's supply chain finance and technology service sectors, leveraging AI and big data to enhance efficiency and reduce costs for SMEs [8].

Core Viewpoint - The company reported a decline in revenue but an increase in net profit for the six months ending June 30, 2025, indicating a shift in business strategy towards a lighter asset model [1] Financial Performance - The company's main business revenue and income amounted to 405 million RMB, representing a year-on-year decrease of 7.1% [1] - Shareholders' profit attributable to the company was 200 million RMB, showing a year-on-year increase of 28.66% [1] - Basic earnings per share were 0.20 RMB [1] Business Strategy - The revenue decline was primarily due to the company's deepening of its light asset strategy, which redirected customer funding needs to be met through external partners [1] - The decrease in revenue from digital financial solutions and supply chain asset refinancing was partially offset by significant growth in platform technology service income [1]

Core Insights - RWA (Real World Assets) represents a new asset form that connects physical assets with the digital economy through blockchain technology, enhancing efficiency and transparency in asset transactions [1][2][7] - RWA serves as a digital twin of physical assets, allowing for the binding of asset ownership and value to traceable tokens on the blockchain, thus facilitating instantaneous ownership transfer without intermediaries [2][3] - The implementation of RWA relies heavily on blockchain technology, utilizing smart contracts for automated processes and oracles for real-time data synchronization [3][4] Group 1: Definition and Essence of RWA - RWA is defined as the digital representation of physical assets, enabling their integration into the digital economy [2] - The core difference between RWA and traditional assets lies in the transaction process, where RWA transactions are executed via smart contracts, making them faster and more secure [2] - RWA encompasses a wide range of asset types, including real estate, financial assets, and intellectual property, each with varying degrees of tokenization complexity [2] Group 2: Technological Support for RWA - Blockchain platforms such as Ethereum and Hyperledger provide the foundational infrastructure for RWA, with different consensus mechanisms ensuring transaction security [3] - Smart contracts act as the automation engine for RWA, allowing for predefined rules regarding revenue distribution and ownership transfer [3] - Cross-chain technology enhances the liquidity of RWA by enabling asset movement across different blockchain networks [3] Group 3: Industry Applications of RWA - In real estate, RWA facilitates fractional investment, allowing investors to purchase shares in high-value properties with lower capital [4] - RWA is pivotal in supply chain finance, enabling small and medium enterprises to convert receivables into RWA for quicker financing [4] - The green energy sector benefits from RWA by tracking data related to energy production and carbon credits, thus enhancing investment transparency [4][5] Group 4: Global Perspective and Future Outlook - Regulatory attitudes towards RWA vary globally, with the U.S. integrating it into securities law, while the EU offers more flexible regulations for non-security RWA [6] - The future of RWA is expected to expand with the integration of AI for asset valuation and the exploration of RWA in education and healthcare sectors [6][7] - RWA is positioned as a complement to traditional finance, aiming to create a more efficient and inclusive value flow network [7]