Core Viewpoint - Lakala Payment Co., Ltd. is facing declining performance in its financial results for the first three quarters of 2025, with revenue and net profit both decreasing year-on-year, while simultaneously preparing for an "A+H" stock listing amid significant shareholder reductions [2][7][14]. Financial Performance - For the first three quarters of 2025, Lakala reported revenue of 4.068 billion yuan, a year-on-year decrease of 7.32%, and a net profit attributable to shareholders of 339 million yuan, down 33.9% [2]. - The decline in revenue is attributed to overall pressure on card payments, with digital payment revenue decreasing by 7.63% year-on-year [2]. - In Q3 2025, Lakala achieved revenue of 1.417 billion yuan, a slight increase of 0.72% year-on-year, and a net profit of 110 million yuan, up 17.46% year-on-year, primarily due to the consolidation of Tian Cai Shang Long and growth in technology business revenue [2][6]. Historical Performance Trends - From 2019 to 2024, Lakala's revenue exhibited significant volatility, with figures of 4.899 billion yuan, 5.562 billion yuan, 6.618 billion yuan, 5.394 billion yuan, 5.938 billion yuan, and 5.762 billion yuan, showing year-on-year changes of -13.73%, 13.53%, 18.98%, -18.50%, 10.09%, and -2.98% respectively [4]. - In terms of net profit, the figures for the same period were 806 million yuan, 931 million yuan, 1.083 billion yuan, -1.437 billion yuan, 458 million yuan, and 351 million yuan, with year-on-year changes of 34.50%, 15.43%, 16.31%, -232.75%, 131.85%, and -23.26% [6]. Upcoming Listing and Shareholder Actions - Lakala has submitted an application for H-share listing on the Hong Kong Stock Exchange, aiming to establish an "A+H" stock structure, with a total payment volume exceeding 4 trillion yuan in 2024 and a market share of 9.4% in the independent digital payment service provider sector [7][14]. - The company has faced significant shareholder reductions, with major shareholder Sun Haoran planning to reduce his holdings by up to 19.27 million shares, representing 2.45% of the total share capital, and has completed this reduction, cashing out approximately 493 million yuan [8][10][11].

Core Viewpoint - Lakala Payment Co., Ltd. has submitted an application for the issuance of overseas listed shares (H shares) and listing on the Hong Kong Stock Exchange, aiming to achieve an "A+H" share listing structure [3] Group 1: Company Overview - Lakala is a digital payment and digital business solutions provider, with a total payment volume exceeding 4 trillion yuan in 2024, holding a market share of 9.4% among independent digital payment service providers, ranking first in its segment [3] Group 2: Listing Details - The company has appointed CITIC Securities International as the sponsor and Ernst & Young as the auditing firm, along with a complete set of professional intermediaries including domestic and foreign lawyers, internal control consultants, industry consultants, and ESG consultants [3] - The funds raised from the listing will be used for four main purposes: accelerating license layout and expanding overseas markets, enhancing technological capabilities to form a global full-process product system, strategic investments and acquisitions over the next five years, and supplementing operational funds [3] Group 3: Regulatory Considerations - The issuance and listing are subject to approvals from the People's Bank of China, the Hong Kong Securities and Futures Commission, the Hong Kong Stock Exchange, and the China Securities Regulatory Commission, indicating potential uncertainties [4]

Core Viewpoint - The Hong Kong Stock Exchange reported that during the week from October 13 to October 19, 9 companies submitted listing applications, 5 companies passed the hearing, 4 companies launched their IPOs, and 2 new stocks were listed [1]. Group 1: Companies Submitted Listing Applications - Hantian Technology (Xiamen) Co., Ltd. is a leader in the global silicon carbide (SiC) epitaxy industry, focusing on the R&D, mass production, and sales of SiC epitaxy chips, with a projected market share of over 30% in 2024 [2]. - Impression Co., Ltd. is a state-owned cultural tourism service enterprise, ranking eighth in China's cultural tourism performance market in 2024, with revenues of approximately 63.04 million yuan in 2022 [3]. - Guangzhou Yujian Noodle Restaurant Co., Ltd. is the fourth largest operator of Chinese noodle restaurants in China, with a market share of 0.5% in 2024 [4]. - Baishan Cloud Holdings Ltd. is the second largest independent edge cloud service provider in China, with a market share of approximately 2.0% in 2024 [5][6]. - Shouchuang Securities Co., Ltd. is a financial service provider with a strong asset management capability, ranking fifth in revenue growth among 42 A-share listed securities companies from 2022 to 2024 [7]. - Chongqing Qianli Technology Co., Ltd. focuses on AI and mobility solutions, with stable growth in automotive products [8]. - Nanjing Qingtian All Tax Information Technology Co., Ltd. is a leading digital service provider for cross-border enterprises, ranking first in the smart tax solution market in China with a market share of 1.7% in 2024 [9]. - Lakala Payment Co., Ltd. is a leading digital payment provider in Asia, with a market share of 9.4% in 2024 [10]. - Sichuan Xin Hehua Traditional Chinese Medicine Co., Ltd. is one of the largest suppliers of traditional Chinese medicine products in China, ranking second in the market with a 0.4% market share in 2024 [12]. Group 2: Companies Passed Hearing - Seres Group Co., Ltd. focuses on the research, manufacturing, and sales of new energy vehicles, achieving revenues of approximately 340.56 billion yuan in 2022 [13]. - Minglue Technology is a leading data intelligence application software company in China, with revenues of approximately 12.69 billion yuan in 2022 [14]. - Pony AI Inc. specializes in autonomous driving services, with a total operational area exceeding 2000 square kilometers [15]. - Ningbo Joyson Electronic Corp. is a global leader in smart automotive technology solutions, ranking second in China and fourth globally in smart cockpit domain control systems [16][17]. - WeRide Inc. is a pioneer in L4 autonomous driving, with operations in over 30 cities across 11 countries [18]. Group 3: Companies Launched IPOs - Yunji Technology launched its IPO with a subscription that was oversubscribed by 5677 times, raising approximately 189.1 billion HKD [19]. - Haixi New Drug's IPO was delayed for regulatory approval, with a price range of 69.88-86.40 HKD per share [20]. - Jushuitan's IPO was set at 30.60 HKD per share, with a total of 681.66 million shares offered [21]. - Guanghetong's IPO was priced between 19.88-21.5 HKD per share, with a total of approximately 135 million shares offered [21]. Group 4: Newly Listed Stocks - Xuan Bamboo Biotechnology was listed on October 15, 2025, with a closing price of 26.30 HKD per share, reflecting a gain of 126.72% [22]. - Yunji was listed on October 16, 2025, with a closing price of 120.5 HKD per share, reflecting a gain of 26.05% [24].

Core Viewpoint - Lakala Payment Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities International as the sole sponsor [1] Company Overview - Lakala is a leading digital payment and digital business solutions provider in Asia, leveraging technologies such as big data, blockchain, and artificial intelligence to create a comprehensive digital operation service system for small and medium-sized merchants and industry clients [3][4] - The company holds a prominent market position in China's digital payment sector, with a projected total payment volume of approximately RMB 331.7 trillion by 2024, of which independent digital payment service providers will account for RMB 45.7 trillion [3] Market Position - By 2024, Lakala is expected to achieve a total payment volume exceeding RMB 4 trillion, capturing a market share of 9.4% among independent digital payment service providers, ranking first in this segment [3][4] - The company is also the largest independent digital payment service provider in China's comprehensive acquiring market, with a market share of 11.7%, and in the QR code acquiring market, with a market share of 9.3% [4] Financial Performance - For the six months ending June 30, 2022, 2023, 2024, and 2025, the company reported revenues of approximately RMB 5.36 billion, RMB 5.93 billion, RMB 5.75 billion, and RMB 2.65 billion respectively, with net profits of approximately -RMB 1.44 billion, RMB 457 million, RMB 351 million, and RMB 229 million [6][7]