Group 1 - The digital renminbi international operation center has officially commenced operations, focusing on cross-border digital payment platforms, blockchain services, and digital asset platforms [1] - The center is managed by the People's Bank of China and aims to enhance cross-border connectivity with domestic and international financial infrastructures, promoting the international use of digital renminbi [1] - In Q1, the cross-border settlement scale of digital renminbi reached 1.8 trillion yuan, a year-on-year increase of 320%, with pilot programs expanding to 50 countries and regions [1] Group 2 - In the global context, China is leading in the adoption of digital renminbi, particularly in the Middle East and ASEAN countries, with a projected penetration rate exceeding 70% by 2025 [2] - Saudi Arabia is using digital renminbi for 20% of its crude oil exports to China, and the Dubai Commodity Exchange has seen an average daily trading volume of 800,000 barrels of digital renminbi-denominated crude oil futures [2] - By April 2025, the CIPS system is expected to have 171 direct participants and 1,500 indirect participants [2] Group 3 - Zhongke Jincai has developed various platforms for digital renminbi, including smart contract security planning and cross-border payment optimization, providing comprehensive lifecycle management services [3] - Kelong Software, as a fintech company with digital banking solutions, anticipates benefits from the increasing demand for digital renminbi and the digital transformation of financial institutions [3]

Investment Rating - The report maintains a "Recommended" rating for the company [5] Core Views - The company has established a strategic partnership with the Beijing Blockchain Technology Application Association to explore the digital asset and Web3.0 industry [1] - The company has a comprehensive service covering the entire business process of banking, serving over 500 domestic and international bank clients, including major state-owned banks and financial infrastructure institutions [2] - The company has announced a stock incentive plan, indicating confidence in its performance recovery, with a projected revenue increase of 14% year-on-year for the first half of 2025 [2] - The company is expected to see significant growth in net profit from 2025 to 2027, with projected figures of 0.22 billion, 0.50 billion, and 0.87 billion respectively, reflecting year-on-year growth rates of 139.1%, 132.1%, and 73.4% [3] Summary by Sections Strategic Developments - The company has proactively entered the blockchain sector by establishing a subsidiary in Hong Kong in March 2025 and has developed various digital currency solutions [1] - The company is a leading player in financial technology, with a focus on blockchain, AI, and asset securitization, and has been involved in drafting key industry reports [2] Financial Performance - The company reported a revenue of 345 million for the first half of 2025, marking a 14% increase year-on-year [2] - The financial forecast indicates a revenue growth from 1.17 billion in 2024 to 2.45 billion in 2027, with corresponding net profits improving from a loss of 55 million in 2024 to a profit of 94 million in 2027 [4][9] Valuation Metrics - The projected price-to-earnings (PE) ratios for 2025, 2026, and 2027 are 740, 319, and 184 respectively, indicating a potential revaluation driven by AI and innovative business segments [3][4]