Core Viewpoint - The international capital is increasingly enthusiastic about long-term allocation of assets in China, particularly in the cross-border payment industry, which plays a crucial role in linking global trade and has a technological attribute that attracts investor interest [1]. Financial Performance - Lianlian Digital's mid-year financial report for 2025 shows significant growth, with total revenue reaching 783 million yuan, a year-on-year increase of 26.8%. Gross profit was 410 million yuan, up 25%, with a gross margin of 51.9%. Net profit reached 1.51 billion yuan, and operating profit was 63 million yuan, reflecting an 85% year-on-year increase in profitability [3]. - The favorable macro environment, including a 2.9% year-on-year increase in China's total goods trade value, has supported Lianlian Digital's high growth [3]. Payment Business Growth - The total payment volume (TPV) for global payment business reached 198.5 billion yuan, a 94% year-on-year increase, while total revenue from global payment business was 473 million yuan, up 27% [4]. - Domestic payment business TPV reached 19 trillion yuan, growing 27.6% year-on-year, with total revenue of 211 million yuan, a 24.6% increase [4]. - The number of customers served by the company reached 7.9 million as of June 30, 2025, up from 5.9 million at the end of 2024, indicating strong customer recognition of Lianlian Digital's products and services [4]. Cost Management - R&D expenses increased by 26.8% year-on-year, while sales and marketing expenses and general administrative expenses grew by 18.3% and 3.3%, respectively, which is significantly slower than revenue growth. This led to a 6.5 percentage point decrease in the proportion of these expenses relative to revenue [5]. Market Opportunities - The cross-border e-commerce market is expanding from Europe and the U.S. to emerging markets such as countries along the Belt and Road Initiative and ASEAN, creating a favorable environment for Lianlian Digital [7]. - The market size of China's cross-border digital payment industry is expected to reach 7.5 trillion yuan by 2024, with cross-border e-commerce transaction volume projected to reach 2.5 trillion yuan by 2025, indicating sustained growth potential [8]. Competitive Advantages - Lianlian Digital has established a global payment license layout consisting of 65 licenses, covering over 100 countries and regions, which creates a significant barrier to entry for competitors [9]. - The company is leveraging its extensive license advantages to deepen its market penetration in Europe and accelerate expansion into Southeast Asia, the Middle East, and Latin America [9]. Innovation and Future Growth - Lianlian Digital is enhancing its service capabilities through AI integration, such as the LOOP AI merchant application, which utilizes a large language model to improve product visibility and sales conversion for cross-border merchants [10]. - The acquisition of the VATP license allows Lianlian Digital to explore opportunities in the emerging financial sector, potentially transitioning from a payment service provider to a digital financial infrastructure provider [14]. Investment Outlook - Analysts are optimistic about Lianlian Digital's potential in the cross-border payment sector, particularly regarding its merchant accumulation, brand recognition, and market share growth [15].