Core Viewpoint - Lakala is planning to issue H-shares and list on the Hong Kong Stock Exchange, which has led to a significant increase in its stock price, but the company faces challenges such as declining revenue and compliance risks [1][3][11]. Company Overview - Lakala Payment Co., Ltd. was established in 2005 and became the first digital payment company listed on the A-share market in April 2019 [4]. - The company holds a payment license issued by the central bank and operates various payment services [4]. Recent Developments - Lakala announced its plan for overseas share issuance and listing on the Hong Kong Stock Exchange, with discussions ongoing with relevant intermediaries [3][4]. - Following the announcement, Lakala's stock price surged, with a peak increase of 16.16% on June 17, but later experienced a decline of 6.28% by June 19 [3]. Financial Performance - In Q1, Lakala reported a revenue of 1.299 billion yuan, a year-on-year decrease of 13.01%, and a net profit of 101 million yuan, down 51.71% [11]. - For the full year 2024, the company expects a revenue of 5.759 billion yuan, a decrease of 2.96%, and a net profit of 351 million yuan, down 23.26% [11]. - The company’s cross-border payment transaction volume reached 49.2 billion yuan in 2024, a year-on-year increase of 14% [4]. Market Position and Challenges - Lakala's cross-border payment transactions accounted for only about 1.2% of its total payment transaction volume of 4.22 trillion yuan last year, indicating limited contribution to overall performance [4]. - The company faces intense competition from major players like PingPong, Alipay, and WeChat Pay, which dominate the market [4][11]. - Lakala's efforts to transition from traditional payment services to comprehensive financial technology services have encountered significant challenges [11]. Compliance and Governance Issues - Lakala has been reducing its registered capital, with a decrease from 788.08 million yuan to 776.66 million yuan in April 2023, marking the second reduction this year [7]. - The company has faced multiple compliance issues, including fines for regulatory violations, which could pose challenges for its future listing in Hong Kong [9][11]. - The company’s major shareholder has been frequently reducing their stake, raising concerns about governance and stability [8][9]. Shareholder Structure - The largest shareholder of Lakala is Legend Holdings, holding 26.54% of shares, followed by Chairman Sun Taoran with 7.01% [5].

Core Viewpoint - Leading payment institutions Alipay and WeChat Pay are actively exploring innovative payment products in the mobile payment sector, focusing on biometric identification technology to enhance payment experiences [1][2]. Group 1: Innovations in Payment Technology - WeChat Pay has introduced iris XR technology, combining high-security iris recognition with extended reality (XR) devices for seamless and secure identity verification and payment services in mixed reality environments [1]. - Alipay has partnered with Rokid to launch smart glasses payment, allowing users to complete payments directly through smart glasses, enhancing convenience in situations where using a mobile phone is impractical [1]. Group 2: Market Trends and User Adoption - Alipay's "Tap to Pay" feature, launched last year, has rapidly gained popularity, with over 100 million users and deployment in more than 400 cities across China [2]. - The competitive landscape among payment institutions is intensifying, prompting companies to innovate in wearable and contactless payment solutions to capture new market segments [2]. Group 3: Policy and Industry Implications - The Chinese government is encouraging payment institutions to transition towards functionality, security, and inclusivity, as outlined in the March 2024 policy document aimed at optimizing payment services [2]. - Innovations in mobile payment products are seen as a means to enhance financial service quality, improve accessibility for special groups, and support the global competitiveness of China's mobile payment technology [3].

支付公司Visa一度跌约4%，万事达卡跌超3%，PayPal跌约3%，Block跌2.2%。 ...

Core Viewpoint - The latest data from the People's Bank of China indicates a rise in non-financial institution deposits (payment institution reserve funds) to 24,931.1 billion yuan as of May 2025, reflecting a month-on-month increase of 357.56 billion yuan, driven by seasonal consumption trends and payment service enhancements [1][3]. Group 1: Payment Institution Reserve Funds - As of May 2025, the reserve funds for payment institutions reached 24,931.1 billion yuan, up from 24,573.54 billion yuan in April 2025, marking an increase of 357.56 billion yuan [1]. - The peak for payment institution reserve funds occurred in January 2025, surpassing 30,000 billion yuan, reaching a historical high of 30,909.63 billion yuan due to factors like the Spring Festival [2]. - After the January peak, reserve funds fell below 24,000 billion yuan in February and March 2025, but showed a recovery in April and May, stabilizing around 25,000 billion yuan [3]. Group 2: Economic and Regulatory Factors - The increase in reserve funds in May is attributed to seasonal consumption during holidays and the optimization of payment services, reflecting a positive economic outlook [3]. - Analysts suggest that the growth in reserve funds correlates with the increase in M1 money supply, indicating heightened market transaction activity since reserve funds were included in M1 statistics from January 2025 [3]. - The payment institution reserve funds exhibit clear cyclical fluctuations, influenced by seasonal consumer demand and regulatory pressures, with a trend towards normalization in growth due to stricter compliance requirements [4]. Group 3: Future Outlook - Short-term factors such as consumption promotions are expected to significantly impact reserve fund levels, while long-term projections suggest that reserve funds will stabilize around 25,000 billion yuan due to high mobile payment penetration [4]. - The potential for growth in niche areas like cross-border payments and B2B payments may provide additional increments to reserve funds in the future [4]. - Payment institutions are encouraged to enhance compliance with reserve fund management while focusing on consumer-driven policies to improve service quality [5].

[Table_Title] 研究报告 Research Report 18 Jun 2025 VISA VISA (V US) 稳定币冲击 VISA，影响几何？ The Stablecoins Challenge to VISA 寇媛媛 Yuanyuan Kou 陈芳园 Ashley Chen yy.kou@htisec.com ashley.fy.chen@htisec.com [Table_yemei1] 热点速评 Flash Analysis [Table_summary] (Please see APPENDIX 1 for English summary) 近日 VISA 股价出现显著波动，我们认为市场担忧大型零售平台发行稳定币可能影响支付生态，对 VISA 等传统支付 网络构成潜在冲击，是此次股价下行的主要诱因。自 6 月 13 日《华尔街日报》发布《Walmart 和 Amazon 正在探 索发行自己的稳定币》以来，市场对大型零售平台可能重构支付生态的担忧迅速升温，支付类股票集体承压。其 中，行业龙头 VISA 和 Mastercard 分别下跌 5.4%和 4.6%。投资者担心，若平台型稳定币 ...

Core Viewpoint - Lakala Payment Co., Ltd. has experienced significant stock price fluctuations, with a cumulative increase of over 30% in three consecutive trading days, prompting an announcement regarding abnormal trading activity [1] Group 1: Company Announcements - Lakala is planning to issue shares overseas (H-shares) and list on the Hong Kong Stock Exchange to enhance its international competitiveness and facilitate the application of digital currency in cross-border scenarios [2] - The company has been actively communicating with intermediaries regarding the H-share listing, with specific details yet to be finalized [2] - The third-largest shareholder, Sun Haoran, is planning to reduce his holdings by up to 2.45% of the total share capital within a specified timeframe [2] Group 2: Financial Performance - Lakala's financial performance has shown significant volatility, with a decline in both revenue and net profit reported in the 2024 annual report [4] - For 2024, the company reported revenue of 5.759 billion yuan, a year-on-year decrease of 2.96%, and a net profit of 351 million yuan, down 23.26% year-on-year [4] - The first quarter of 2025 continued this downward trend, with revenue of 1.299 billion yuan, a year-on-year decline of 13.01%, and a net profit of 101 million yuan, a substantial drop of 51.71% year-on-year [4] Group 3: Regulatory Issues - Lakala has faced multiple fines due to compliance issues, including a warning and a fine of 4.06 million yuan from the People's Bank of China for various violations [4] - In 2024, the Chengdu branch was penalized for failing to provide accurate inspection materials and was fined 3.2 million yuan [4] - Additional fines were imposed for violations related to foreign exchange regulations, totaling 139,100 yuan [4]

Group 1 - The innovative drug sector has become a hot investment area, with approximately 30 new pharmaceutical-themed funds reported in the second quarter, matching the total for the entire year of 2024 [1] - The valuation of the pharmaceutical industry is considered high but not in a bubble phase, with potential for continued value increase as clinical data improves [1] - Dividend-themed funds are gaining traction as safe-haven investments, with several ETFs reaching record high shares, indicating their growing allocation value [1] Group 2 - Active equity funds are experiencing significant net value fluctuations, indicating that fund managers are beginning to build positions, with some funds ending their issuance early due to favorable entry points [2] - Multiple companies have announced share buyback plans, with a total buyback amount of 71.71 billion yuan this year, reflecting a commitment to shareholder value [2] Group 3 - Hong Kong's IPO financing has surged over 500% year-on-year, totaling 779.88 billion HKD, driven by favorable policies and market conditions [3] - The production of 3D printing equipment has increased by 40% year-on-year, outpacing other sectors, attributed to rising demand and improved technology [3] Group 4 - A new stringent battery safety regulation will shift the focus from energy density to safety performance, impacting major battery manufacturers like CATL and BYD [4] - The payment industry is witnessing a concentration of market share among larger players, while smaller firms face market exit and regulatory challenges [4] Group 5 - Chinese scientists have made advancements in developing an efficient "artificial leaf" for solar hydrogen production, enhancing the efficiency of water-splitting reactions [5] - JD.com plans to apply for stablecoin licenses in major currency countries to reduce cross-border payment costs significantly [5] Group 6 - Yunda Express has faced penalties related to a fraud case, with 58 franchise outlets fined or suspended for regulatory violations [6] - Baoneng Auto has denied rumors of dissolution, asserting that operations are normal and new vehicles are set to launch [7] Group 7 - Fuwai Group has passed the Hong Kong Stock Exchange hearing, aiming for an IPO after previous unsuccessful attempts, with significant losses reported [7] - Anshun Xixiu Industrial Investment has been listed as an executor due to a rental contract liability amounting to 212.6 million yuan [8] Group 8 - Tianwei Video has completed the acquisition of a 70% stake in Tianqing Digital for 84.28 million yuan, integrating it into its financial reports [9] - Weichuang Electric has set an inquiry transfer price of 38.79 yuan per share, with significant interest from institutional investors [10] Group 9 - Baoxin Technology's subsidiary's planned acquisition of a 40% stake in Jiangsu Yingsu has been halted due to the counterparty's unilateral termination [11]

Group 1 - The core viewpoint is that stablecoins are gaining significant attention both domestically and internationally, with the U.S. Senate passing the GENIUS Act to establish a federal regulatory framework for stablecoins, while Hong Kong has enacted its own stablecoin regulations [1][2] - Stablecoins have seen rapid growth, with their total market size reaching $247.7 billion by June 2025, a 190-fold increase from $1.3 billion in June 2019, with 99% of stablecoins pegged to the U.S. dollar [2][3] - The main function of stablecoins is to tokenize existing money within the banking system, allowing for a new method of currency circulation without creating new money [3][4] Group 2 - Stablecoins differ from non-bank payment systems in that they are based on distributed ledgers, allowing for open and anonymous transactions, while non-bank systems use centralized ledgers and require real-name registration [4][5] - A significant portion of U.S. dollar stablecoins (over 70%) is issued offshore, which raises concerns regarding regulatory compliance, particularly in areas like KYC and AML [4][5] - The trading volume of U.S. dollar stablecoins reached $100.7 billion by June 2025, surpassing the combined trading volume of Bitcoin and Ethereum, primarily serving as a medium for transactions in the cryptocurrency market [7][8] Group 3 - U.S. dollar stablecoins are rapidly penetrating various applications beyond cryptocurrency trading, including cross-border payments and corporate financing, driven by their efficiency and low costs [8][9] - The U.S. strategy regarding stablecoins involves a regulatory approach that allows commercial entities to promote the digitalization of the dollar while maintaining oversight as the market matures [8][9] - The relationship between U.S. dollar stablecoins and traditional payment systems like SWIFT and Visa is fundamentally different, with stablecoins not intended to replace these systems [9][10] Group 4 - There is a growing concern regarding the use of U.S. dollar stablecoins by residents and businesses in mainland China, necessitating monitoring and regulatory measures to protect monetary sovereignty [10][11] - The potential for issuing offshore renminbi stablecoins is discussed, which could be managed by Chinese financial institutions to mitigate risks associated with capital outflow [11][12] - The technology underlying stablecoins presents both opportunities for financial inclusion and challenges related to compliance with existing financial regulations [10][11]

Core Viewpoint - The article discusses the recent developments of Lakala, a Chinese payment company, including its planned listing in Hong Kong and the ongoing consolidation in the payment industry, highlighting both opportunities and challenges for the company and the sector as a whole [4][5][10]. Company Developments - Lakala announced its plan to list on the Hong Kong Stock Exchange, which is part of its strategy to enhance international competitiveness and expand its capital operations [4][5]. - Following the announcement, Lakala's stock price surged, closing with a 16.16% increase, marking a nearly 130% rise since its low point in April [1][4]. - The company reported a slight decline in revenue from its digital payment business, with a total income of 5.165 billion yuan for 2024, down 0.27% year-on-year, and a significant drop in technology service revenue by 18.43% [6]. Industry Trends - The payment industry is undergoing significant consolidation, with six payment companies having their licenses revoked this year, indicating a trend of market exit for smaller players [2][10]. - Regulatory changes have increased the barriers to entry in the payment sector, leading to a focus on compliance and a more concentrated market share among larger firms [3][14]. - Major payment companies are increasing their capital investments, with Tencent's payment subsidiary, Tenpay, recently approved for a capital increase of 7 billion yuan, reflecting a trend of larger firms strengthening their market positions [12][13]. Challenges and Risks - Lakala faces challenges related to its declining revenue and high customer concentration, which may impact its valuation and growth potential in the Hong Kong market [8]. - The company has encountered compliance issues, having been penalized multiple times for regulatory violations, which could pose risks for its future operations in a more stringent regulatory environment [8][14].

Group 1: Company Overview - Lakala has announced plans to list on the Hong Kong Stock Exchange, aiming to enhance its international competitiveness and support its international development strategy [2][3] - The company's main business segments include digital payment services and technology services, with digital payment services comprising domestic payments, cross-border payments, and payment services [3] Group 2: Financial Performance - In 2024, Lakala's digital payment business generated revenue of 5.165 billion yuan, a slight decrease of 0.27% year-on-year, while technology services revenue was 283 million yuan, down 18.43% due to a significant drop in credit card marketing services [3] - For the first quarter of this year, Lakala reported a net profit attributable to shareholders of 101 million yuan, a decrease of 51.71% year-on-year, with total revenue of 1.299 billion yuan, down 13.01% [3] Group 3: Industry Trends - The payment industry is undergoing accelerated consolidation, with six payment institutions having their licenses revoked this year, indicating a trend towards increased regulatory scrutiny and higher entry barriers [4][6] - Major payment companies are increasing their capital investments, with Tencent's payment subsidiary receiving approval for a capital increase of 7 billion yuan, raising its registered capital from 15.3 billion yuan to 22.3 billion yuan [6]