Group 1 - The company reported a revenue of 1.527 billion yuan for the first half of 2025, a year-on-year decrease of 3.17% [1] - The net profit attributable to shareholders was 275 million yuan, down 38.61% year-on-year, while the net profit after deducting non-recurring items was 242 million yuan, a decrease of 38.90% [1] - The overseas market showed continuous improvement, with a total transaction volume of approximately 721.8 billion yuan, remaining stable compared to the same period last year, and achieving an operating income of 949 million yuan [1] Group 2 - The electronic payment equipment segment generated an operating income of 544 million yuan, with overseas sales reaching 533 million yuan, reflecting a year-on-year growth of 22.02% [1] - Revenue from high-end overseas markets in Europe, America, and Japan approached 200 million yuan, with a year-on-year increase of over 80% [1] - The company has approved plans for an H-share issuance and listing on the Hong Kong Stock Exchange, indicating a commitment to international expansion [1] Group 3 - The company’s subsidiary, Shanghai Shier District Information Technology Co., Ltd., is actively exploring AI applications, enhancing product efficiency, and expanding into various industries [2] - The AI Agent product has been successfully applied in the payment sector, improving merchant review efficiency and user experience [2] - The company maintains stable performance, with projected EPS for 2025-2027 at 1.05, 1.22, and 1.40 yuan respectively, and a "buy" rating is maintained [2]

Core Viewpoint - The company's performance in the first half of the year is under short-term pressure due to the impact of domestic acquiring merchant expansion suppressing fee rates, while overseas business is progressing smoothly with accelerated growth in cross-border payment volume and significant revenue growth in high-end overseas markets [1]. Financial Performance - The company maintains a "Buy" rating, adjusting the net profit forecast for 2025-2027 to 589 million, 747 million, and 909 million yuan respectively, with corresponding EPS estimates of 1.04, 1.32, and 1.60 yuan. The target price is raised to 38.40 yuan based on a 37x PE for 2025, considering growth in cross-border payment and overseas equipment business [2]. - In the first half of 2025, the company achieved revenue of 1.527 billion yuan, a year-on-year decrease of 3.17%, and a net profit of 275 million yuan, down 38.61% year-on-year. In Q2 alone, revenue was 826 million yuan, up 3.93% year-on-year, while net profit was 119 million yuan, down 47.77% year-on-year [2]. - The decline in revenue and profit is primarily due to the decrease in income and gross margin from the acquiring business, with revenue from acquiring and value-added services at 945 million yuan, down 12.86% year-on-year, and a gross margin of 27.24%, down 15.14 percentage points year-on-year [2]. Business Segments - The company's acquiring transaction volume in the first half of 2025 was 721.8 billion yuan, remaining stable year-on-year, with a significant decline in the acquiring fee rate to 0.131%, down from 0.150% in the first half of 2024, mainly due to increased efforts in new merchant expansion [3]. - In terms of cross-border payments, the company has successfully integrated with major e-commerce platforms such as Amazon, Etsy, Lazada, Shopee, and TikTok, with rapid growth in the number of cross-border payment merchants and transaction amounts, showing a quarter-on-quarter increase of 169% and 272% respectively in Q2 [3]. - The company has made significant breakthroughs in high-end overseas markets for equipment, with nearly 200 million yuan in revenue from overseas high-end markets, growing over 80% year-on-year. Additionally, the company has successfully launched an AI merchant review agent, enhancing review efficiency and user experience [3].