Group 1 - The company has cleared historical burdens and has promising growth potential, with a total supply chain asset handling of 203.6 billion yuan in H1 2025 [1] - The revenue and profit for the group were 375 million yuan, reflecting a year-on-year decrease of 9.3%, but the business structure continues to optimize [1] - The gross margin has decreased to 56.0% due to adjustments in customer and product mix, as well as pricing strategy optimization under market competition [1] Group 2 - The core business, particularly the multi-level circulation cloud, has shown rapid growth, handling a total of 133.2 billion yuan in supply chain assets in H1 2025, representing a year-on-year increase of 54.4% [2] - The AMS cloud faced short-term pressure, with a total of 29.9 billion yuan in supply chain assets, down 20.2% year-on-year, primarily due to a sluggish securitization market [2] - The ABS cloud in the financial institution sector saw significant growth, handling 9.6 billion yuan in supply chain assets [2] Group 3 - The company is accelerating its global layout, achieving double-digit growth in cross-border cloud asset scale and revenue, with revenue reaching 26 million yuan, up 20.3% year-on-year [3] - In the digital asset sector, the company is exploring compliant stablecoins and multi-chain technology applications, leveraging its international headquarters in Singapore [3] - The company has launched the DTT digital trade token in collaboration with BIS and Standard Chartered, and has completed the first trade asset tokenization product in the industry [3] Group 4 - The company has a strong cash reserve of 5.378 billion yuan and has committed to a share buyback of no less than 80 million USD in the next 12 months, signaling confidence [3] - The target price has been raised to 4.0 HKD, maintaining a buy rating due to strong core business growth momentum and ongoing optimization of customer quality and global layout [3]

Core Viewpoint - 联易融科技 reported a decline in revenue and net profit for the first half of 2025, indicating challenges in the current market environment and a shift in product strategy [1][2]. Financial Performance - In 25H1, the company achieved operating revenue of 375 million yuan, a year-on-year decrease of 9.3% [1] - The adjusted net profit was -372 million yuan, compared to -189 million yuan in 24H1 [1] - The gross margin fell to 56.0%, down 14.9 percentage points year-on-year, primarily due to changes in product structure and a more flexible pricing strategy [1] Share Buyback and Confidence - The company announced a commitment to repurchase at least 80 million USD of B-class shares within the next 12 months, reflecting confidence in its future [1] - In June 2025, the company canceled 148 million shares previously repurchased [1] Supply Chain Financial Technology Growth - The financing amount facilitated by supply chain financial technology reached 198.72 billion yuan in 25H1, a year-on-year increase of 27.4%, driven mainly by the multi-level circulation cloud [2] - The commission rate decreased by 0.07 percentage points to 0.18% [2] Business Segment Performance - Electronic debt certificate business facilitated financing of 159.22 billion yuan, up 38.6% year-on-year, with multi-level circulation cloud financing amounting to 133.23 billion yuan, a 54.4% increase [2] - Asset securitization business facilitated financing of 39.5 billion yuan, down 3.8% year-on-year, with AMS cloud financing at 29.87 billion yuan, down 20.2% [3] - Cross-border cloud financing reached 4.84 billion yuan, up 13.9% year-on-year, supporting Chinese enterprises' overseas expansion [3] Long-term Strategic Initiatives - The company is developing a programmable trade token and a trade finance asset tokenization platform, aiming to capitalize on the growing demand for digital assets [4] - As of 25H1, the company collaborated with 2,565 core enterprises and 389 financial institutions, with a 25% increase in core enterprise clients [4] Investment Outlook - The company is positioned as a leading third-party supply chain financial technology solution provider with a light asset operating model [5] - The anticipated recovery in the real estate sector and growth in non-real estate businesses are expected to drive future performance [5] - Adjusted earnings per share (EPS) forecasts for 2025/2026/2027 are -0.15/0.06/0.09 yuan, with a target price of 3.49 HKD based on a 7x price-to-sales (PS) valuation for 2025 [5]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [4][10]. Core Insights - The company reported a revenue of 375 million yuan for the first half of 2025, a decrease of 9.3% year-on-year, with a net profit attributable to shareholders of -380 million yuan [1][8]. - The company plans a significant share buyback of at least 80 million USD over the next 12 months, reflecting confidence in its future performance [8][9]. - The international business is expected to create a second growth curve, with cross-border financing reaching 4.84 billion yuan, up 13.9% year-on-year [9]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 375 million yuan, down 9.3% year-on-year, and an adjusted net profit of -372 million yuan [1][8]. - The gross margin decreased to 56.0%, down 14.9 percentage points year-on-year, primarily due to changes in product structure and a more flexible pricing strategy [8][9]. Business Segments - **Electronic Debt Certificate Business**: Financing amount reached 159.22 billion yuan, up 38.6% year-on-year, driven by strong growth in multi-level circulation cloud financing [3]. - **Asset Securitization Business**: Financing amount was 39.5 billion yuan, down 3.8% year-on-year, with a notable increase in ABS cloud financing, which rose by 166.3% [3]. Growth Drivers - The company is focusing on expanding its core enterprise customer base, with a 19% increase in partnerships, and a 25% increase in core enterprise clients [9]. - The stablecoin business is positioned for long-term growth, with initiatives like the programmable trade token DTT and the trade finance asset tokenization platform ABT [9]. Future Outlook - The company expects to see a gradual recovery in profitability, with adjusted EPS forecasts of -0.15 yuan for 2025, -0.06 yuan for 2026, and 0.09 yuan for 2027 [10]. - The target price is set at 3.49 HKD, based on a 7x PS valuation for 2025 [4][10].

Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to HKD 4.0, indicating a potential upside of 45% from the current price of HKD 2.8 [4][8]. Core Insights - The company has released historical impairment pressures and is positioned for future growth, with a total supply chain asset volume of CNY 203.6 billion expected by H1 2025, driven by strong performance in its multi-level circulation cloud segment [2]. - Despite a year-over-year revenue decline of 9.3% to CNY 375 million, the company is optimizing its business structure and maintaining a cautious impairment provision strategy, resulting in an adjusted net loss of CNY 372 million [2][3]. - The company has committed to a share buyback of no less than USD 8 million in the next 12 months, reflecting its focus on shareholder returns [2][4]. Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of CNY 867.76 million, a decrease of 6.1% from the previous year, with a projected revenue of CNY 1.03 billion for 2024 [6][10]. - The adjusted net profit for 2023 was a loss of CNY 286.27 million, with forecasts indicating a continued loss of CNY 748.18 million in 2024, but a return to profitability is expected by 2026 with a net profit of CNY 171.95 million [6][10]. - The company’s gross margin is projected to improve significantly, reaching 80.3% by 2026, up from 60.7% in 2023 [10]. Business Segments - The core business, particularly the multi-level circulation cloud, is expected to handle supply chain assets totaling CNY 1.332 trillion by H1 2025, marking a year-over-year growth of 54.4% [3]. - The AMS cloud segment is currently under pressure, with a 20.2% decline in supply chain asset handling to CNY 29.9 billion, primarily due to market conditions [3]. - The company is also expanding its global footprint, with cross-border cloud assets and revenues growing by 20.3% to CNY 26 million, driven by increased financing and service fees [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 3.45 HKD, indicating a potential upside of 25.0% from the recent closing price of 2.76 HKD [6][12]. Core Insights - The company experienced a revenue decline of 9.3% year-on-year in H1 2025, with total revenue reaching 3.75 billion RMB. The gross margin decreased significantly from 70.9% in H1 2024 to 56.0% in H1 2025, primarily due to changes in revenue structure and market competition [1][2]. - The company announced a substantial share buyback plan, committing to repurchase at least 80 million USD (approximately 623 million HKD), which represents about 11% of the total share capital [1][5]. Revenue Breakdown - The core enterprise cloud segment remains the revenue foundation, contributing 2.48 billion RMB, accounting for 66.3% of total revenue. The multi-polar circulation cloud continues to show high growth, with asset processing scale increasing by 54.4% to 133.23 billion RMB and adding 224 new clients [2][3]. - The AMS cloud business faced short-term pressure, with asset processing scale declining by 20.2% to 29.87 billion RMB, influenced by a sluggish supply chain asset securitization market, particularly in the real estate sector [2][3]. Financial Performance - The company reported a net loss attributable to shareholders of 3.80 billion RMB in H1 2025, a year-on-year increase of 57.7%. Adjusted losses (non-IFRS) reached 3.72 billion RMB, a significant increase of 97.4% [1][4]. - Impairment losses rose to 2.70 billion RMB, up 66.5% from 1.62 billion RMB in the same period last year, primarily due to more conservative impairment policies on historical bridge supply chain assets [4][12]. Strategic Outlook - The company plans to focus on three core strategies: "AI + Industrial Finance," strategic acquisitions, and digital assets, aiming to create multiple growth engines. The application of AI technology and the development of digital asset solutions are expected to enhance operational efficiency and address cross-border payment challenges [11][12]. - The company is also optimizing its business structure by divesting non-core assets and concentrating on its primary operations [11][12].

Core Insights - In the first half of 2025, Lianyi Rong Technology Group reported a supply chain asset service scale of 203.6 billion RMB, with total revenue and earnings of 370 million RMB [1] - The company added 244 new core enterprise and financial institution clients, bringing the total to 1,352, a 22% increase compared to 2024 [1] - Lianyi Rong has assisted over 380,000 small and micro enterprises in accessing digital inclusive financial technology services [1] Financial Performance - The company focused on core business areas, accelerating transformation and upgrading, which led to a decrease in operating expenses [1] - Cash reserves reached 5.4 billion RMB, an increase of 300 million RMB from the end of 2024 [1] - The total supply chain assets processed by Lianyi Rong's financial technology solutions amounted to 203.6 billion RMB [1] Business Development - Lianyi Rong has expanded its diverse business partnerships, successfully implementing innovative "de-core" scenario solutions for various enterprises [2] - The company is a leader in the supply chain financial technology industry, continuously innovating in artificial intelligence and blockchain technologies [2] - The founder and CEO, Song Qun, emphasized the company's strategic focus on "AI + industrial finance," mergers and acquisitions, and digital assets to drive sustainable growth [2]

Core Insights - The company reported a supply chain asset service scale of 203.6 billion RMB and total revenue of 370 million RMB for the first half of 2025, with a focus on core business transformation and operational efficiency [1][2] - The company launched a global trade finance digital asset strategy, introducing Digital Trade Token (DTT) and Asset Backed Token (ABT) as part of its "StableCoin+" initiative [1][8] - The company plans to repurchase at least 80 million USD worth of shares in the next 12 months, reflecting confidence in its growth strategies [1][11] Business Performance - The supply chain financial technology solutions processed a total of 203.6 billion RMB in assets, with the multi-level circulation cloud business growing by 54% year-on-year to 133.2 billion RMB [2] - The company added 244 new core enterprise and financial institution clients, bringing the total to 1,352, a 22% increase from 2024 [3] - The average financing cost for small and micro enterprises served by the company was only 2.86% [7] Technological Advancements - The company has established a comprehensive AI technology matrix for supply chain finance, integrating domestic AI models and enhancing its proprietary LDP-GPT model [4] - The company completed the deployment of its AI-driven solutions in over 30 core enterprises and financial institutions, improving operational efficiency [4] Strategic Initiatives - The company is expanding its international supply chain finance layout, achieving double-digit growth in cross-border cloud asset services [6] - The company is committed to sustainable supply chain finance, with assets in sustainable supply chains exceeding 29 billion RMB, a 97% increase year-on-year [7] - The company is actively pursuing strategic acquisitions to diversify its growth drivers [5] Future Outlook - The company aims to leverage AI and compliant stablecoins to reshape cross-border capital flows and enhance financial system resilience amid global economic uncertainties [10][11] - The company is set to explore innovative applications of digital assets in real-world asset tokenization and cross-border digital payments [10]