Core Viewpoint - The market capitalization of Zhaogang Group is significantly lower than that of its international peers, despite being a leading player in the domestic steel industry internet sector [2][3]. Company Performance - As of October 14, Zhaogang Group's market capitalization is HKD 2.6 billion, which is substantially lower than similar companies abroad [2]. - The company's stock price has declined since its listing on March 10, 2025, with a notable drop of 9.3% on April 25, 2025, leading to a market cap of HKD 4.177 billion shortly after [2]. - The stock price further decreased to HKD 2.41 per share by October 14, resulting in a market cap of HKD 2.6 billion [2]. Financial Metrics - Zhaogang Group reported a loss of HKD 500 million in the first half of the year, primarily due to non-operating expenses, with an adjusted operating loss of approximately HKD 50 million [4]. - The company achieved a steel trading volume of 5 million tons in 2024, significantly higher than its peers, yet its market valuation remains low [3]. Business Strategy - The management emphasizes that the recent stock price decline is due to short-term liquidity issues from shareholder sell-offs rather than fundamental business weaknesses [3]. - Zhaogang Group is focusing on three growth areas: international expansion, cross-product business, and the use of AI for efficiency and cost reduction [4][6]. Market Position - The platform has registered over 16,000 suppliers and 189,000 customers, with a trading volume of 1.91 million tons in the first half of the year, reflecting a 15.2% increase compared to the previous quarter [5]. - The international business has shown significant growth, with a revenue increase of 38.9% and a trading volume increase of 58% year-on-year [5][6]. Future Outlook - Zhaogang Group aims to replicate its domestic success in international markets, particularly in countries involved in the Belt and Road Initiative, with plans to establish processing facilities abroad [6]. - The company is also exploring the commercialization of its AI technology, which has already generated revenue of HKD 110 million in cross-category transactions [6].