Core Viewpoint - Lakala Payment Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, but its declining performance, regulatory penalties, and significant shareholder sell-offs cast doubt on its IPO prospects [1][3]. Group 1: Company Performance - Lakala is a leading digital payment and business solutions provider in Asia, with a market share of 9.4% among independent digital payment service providers, ranking first in its segment [3]. - The company's revenue has been declining, with figures of 5.361 billion yuan, 5.928 billion yuan, and 5.754 billion yuan from 2022 to 2024, while profits were -1.438 billion yuan, 0.457 billion yuan, and 0.351 billion yuan during the same period [3]. - In the first half of the year, Lakala reported a revenue of 2.647 billion yuan, a year-on-year decrease of 11.1%, and a net profit of 229 million yuan, down 45.3% [4]. Group 2: Financial Health - The company has recorded net current liabilities of 513 million yuan, 63.3 million yuan, and 433 million yuan as of December 31, 2022, December 31, 2024, and June 30, 2025, respectively [6]. - As of June 30, 2025, Lakala held cash and cash equivalents of 693 million yuan [6]. - The gross profit margins from 2022 to the first half of 2025 were 22.8%, 28.1%, 29.9%, and 24.8% [5]. Group 3: Regulatory Issues - Lakala has faced multiple regulatory penalties, including fines for violations related to payment processing and merchant management, with recent fines totaling 406,000 yuan for non-compliance with merchant identification requirements [10][12]. - The company has received over 100,000 complaints on consumer platforms, indicating significant customer dissatisfaction [12][13]. Group 4: Shareholder Activity - Major shareholders, including Lenovo Holdings, have reduced their stakes in Lakala, with Lenovo selling over 23.64 million shares [9]. - The third-largest shareholder, Sun Haoran, has completely divested from the company, selling over 19.27 million shares [9].

Core Viewpoint - Lakala Payment Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, but its declining performance and shareholder sell-offs raise concerns about the IPO's prospects [1][3][4]. Group 1: Company Performance - Lakala's revenue from 2022 to 2024 was 5.36 billion, 5.93 billion, and 5.75 billion RMB, respectively, with profits of -1.44 billion, 457 million, and 351 million RMB during the same period [4][7]. - In the first half of this year, Lakala's revenue was 2.65 billion RMB, a year-on-year decrease of 11.1%, and net profit dropped by 45.3% to 229 million RMB [5][7]. - The company's gross profit margins for the years 2022 to 2025 were 22.8%, 28.1%, 29.9%, and 24.8% [5][7]. Group 2: Market Position - Lakala is a leading digital payment and digital business solutions provider in Asia, with a market share of 9.4% in the independent digital payment service provider segment, ranking first [3][4]. - The total payment volume in China's digital payment market is projected to reach approximately 331.7 trillion RMB by 2024, with independent digital payment service providers accounting for 45.7 trillion RMB [3]. Group 3: Regulatory and Compliance Issues - Lakala has faced multiple fines for compliance violations, including a recent penalty of 250,000 RMB for its Jiangsu branch due to breaches in acquiring business management regulations [10][11]. - The company has been penalized several times since last year, with fines totaling over 3 million RMB for various infractions [11]. Group 4: Shareholder Activity - Major shareholders, including Lenovo Holdings, have recently reduced their stakes in Lakala, with Lenovo's shareholding increasing from 23.54% to 23.88% after a capital reduction [8][9]. - The third-largest shareholder, Sun Haoran, has completed a sell-off of over 19.27 million shares [9].