Core Viewpoint - The current strength in the Hong Kong and A-share markets, particularly in technology stocks, is mirrored in the financial technology sector, which is benefiting from both market liquidity and the long-term trend of digital finance transformation [1] Group 1: Company Performance - In the first half of the year, the company achieved a revenue of 2.5 billion RMB, representing a year-on-year growth of 43.8%, and a net profit of 216 million RMB, up 79.5% [2] - The adjusted net profit reached 218 million RMB, with a growth rate exceeding 80% [2] - As of August 25, the company's stock price has increased by over 90% year-to-date [2] Group 2: Market Valuation and Expectations - The company's value potential remains underappreciated, with the market overlooking the "threefold expectation gap" that could catalyze valuation recovery and growth [3] - The first expectation gap relates to the underestimated business resilience and asset quality, with a loan realization volume of approximately 38 billion RMB, a 40% increase year-on-year [4] - The company has a solid user base, with cumulative registered users in mainland China reaching 167 million, an 11.7% increase [4] Group 3: Asset Quality and Risk Management - The company has maintained stable asset quality, with the overdue rate for loans over three months decreasing to 2.43% by the end of Q2 2025 [8] - Strategic initiatives have been implemented to enhance business resilience, including upgrades to the risk control system and a focus on high-quality customer segments [8] Group 4: Technological Advancements - The company has made significant progress in smart upgrades, enhancing operational efficiency and creating a secure digital ecosystem [9] - The upgraded "Hummingbird" 2.0 platform has improved risk identification accuracy and response efficiency [9] - AI-generated code now accounts for 25% of the company's programming efforts, boosting productivity and code quality [9] Group 5: Strategic Investments and Future Growth - The company has strategically invested in EXIO Group, a licensed virtual asset trading platform, which will help integrate traditional finance with Web 3.0 [10] - The current valuation is at a historical low, with a dynamic P/E ratio around 3, and a dividend yield of 5.8%, indicating significant growth potential [11][12] - The company is expanding into new markets, including potential acquisitions in Portugal and Southeast Asia, which could enhance its growth trajectory [15] Group 6: Conclusion - The combination of the FinTech sector's beta effect and the company's alpha momentum positions it as a valuable investment opportunity, with the recent interim financial report likely to trigger the convergence of the three expectation gaps [17]