BlueFocus Communication Group

Lakala Payment Co., Ltd. announced on the evening of August 25 that it has formally terminated its plan, which had been in preparation for nearly a year, to issue H shares and list on the main board of the Hong Kong Stock Exchange. The company submitted its listing application in October 2025, and that application lapsed in April 2026, with no new progress disclosed thereafter. The announcement said that due to changes in the market environment and adjustments to the company's planning, and after full communication with all parties and prudent analysis, the company agreed to terminate the H-share issuance. In terms of performance, the company achieved operating revenue of 5.547 billion yuan in 2025, down 3.68 percent year on year. Net profit attributable to the parent company was 1.171 billion yuan, up 233.33 percent year on year, but net profit attributable to the parent company after deducting non-recurring items was only 301 million yuan, down 45.58 percent year on year. In the first half of 2026, the company achieved operating revenue of 3.257 billion yuan, up 22.81 percent year on year. Net profit attributable to the parent company was 669 million yuan, a sharp year-on-year increase of 191.67 percent, but net profit attributable to the parent company in the second quarter alone was only 74 million yuan, down 87 percent quarter on quarter from the first quarter and down more than 40 percent year on year. In the first half of the year, the company recorded investment income of 610 million yuan, accounting for as much as 72.69 percent of total profit, mainly from liquidating its holdings in BlueFocus shares, and this gain is not sustainable. In addition, net cash flow from operating activities in the first half of the year was negative 103 million yuan, a sharp year-on-year decline of 173.26 percent. Lakala said that terminating the H-share listing will not have a material impact on its business operations or sustainable development.