New stock news | XGD INC. (300130.SZ) submits a document to the Hong Kong Stock Exchange, global cumulative sales of electronic payment devices exceed 50 million units.

According to the disclosure of the Hong Kong Stock Exchange on November 26, Shenzhen XGD INC. Limited (referred to as XGD INC., 300130.SZ) has submitted an application to the Hong Kong Stock Exchange Main Board, with CITIC SEC as its exclusive sponsor. According to the prospectus, in the past 15 years, XGD INC. has sold over 50 million electronic payment devices worldwide, with its business footprint covering most countries and regions globally. The prospectus shows that XGD INC. is a leading industry player in payment technology services deeply rooted in China and covering the world. The company's operations span the entire payment technology industry chain. With a strategic deployment of comprehensive, multi-scenario, and multi-form digital payment services, the company provides an integrated "payment hardware + payment service" model, offering end-to-end digital payment technology solutions to ecosystem participants. Driven by the dual engines of "payment hardware + payment service" strategy, XGD INC. has established a diversified payment product and service system, enabling them to provide end-to-end payment solutions to a wide range of ecosystem participants, including financial institutions, licensed acquiring institutions, SMEs, commercial and industrial enterprises, merchants engaged in foreign trade, and e-commerce platforms. The company's comprehensive products and services cover payment terminals, domestic and international acquiring, cross-border payment services, and a range of value-added services, aiming to meet diverse payment processing needs in complex business and cross-border transaction environments through intelligent, technology-driven solutions. The following is a summary of the key business highlights that XGD INC. has achieved as of the last feasible date: Aligned with the globalization strategy of payment hardware, XGD INC. has steadily promoted the global deployment of its hardware business, actively expanding and optimizing its overseas sales network, while accelerating product innovation and iteration to consolidate its competitive position in key international markets. The company has established and continuously strengthened its leading position in the Indian payment hardware market and strategically expanded to high-value markets in Europe and Japan. To further enhance international competitiveness, the company continues to strengthen its local operational capabilities in overseas markets to achieve deeper penetration and sustainable growth. In the past 15 years, XGD INC. has sold over 50 million electronic payment devices worldwide, with its business footprint covering most countries and regions globally. The number of terminals connected to the company's NEXGO CLOUD platform exceeds 1 million. XGD INC. has actively seized the opportunity of the rapid development of the acquiring industry in China by conducting acquiring business nationwide through its wholly-owned subsidiary JALIAN PAYMENT CO. LTD. Leveraging an extensive network of cooperative banks, the company has established a comprehensive "payment + operation" service system, providing convenient payment and settlement services to over 20 million customers from various industries and scales. The company's services mainly include: bank card acquiring, QR code acquiring, and scene-based value-added digital solutions. The company has strategically expanded into cross-border payments and global acquiring business, and has established a global license framework supporting the two business lines. As of the last feasible date, XGD INC. has obtained the Payment Institution (PI) license in Luxembourg, the Money Services Operator (MSO) license in Hong Kong, and the Money Services Business (MSB) license in the United States, laying a solid compliance foundation for conducting cross-border payments and global acquiring business simultaneously. Leveraging its cross-border payment brand PayKKa, the company has launched a diverse portfolio of solutions, including B2B cross-border payments, B2C e-commerce payments, and global acquiring. Furthermore, the company continues to increase strategic investment in cutting-edge technologies represented by AI, actively expanding its business scope in related areas. The company is exploring new application scenarios where AI technology can help enterprises and merchants improve operational efficiency and achieve cost reduction and efficiency improvement, thereby driving business structure and revenue diversification. During the previous reporting period, XGD INC. successfully launched its first intelligent body product, which is based on universal AI technology and can be tailored to the specific needs of customers in different industries. This product has been preliminarily commercialized in several vertical sectors including digital marketing, white goods appliances, music, and animation. Financial information Revenue For the years ending in 2022, 2023, 2024, and the six months ending on June 30, 2025, the company recorded revenues of RMB 4.315 billion, RMB 3.8 billion, RMB 3.146 billion, and RMB 1.527 billion respectively. Net profit for the year/period For the years ending in 2022, 2023, 2024, and the six months ending on June 30, 2025, the company recorded net profits of RMB 44.554 million, RMB 754 million, RMB 2.32 billion, and RMB 2.74 billion respectively. Gross profit/Gross margin For the years ending in 2022, 2023, 2024, and the six months ending on June 30, 2025, the company recorded gross profits of RMB 1.039 billion, RMB 1.437 billion, RMB 1.216 billion, and RMB 515 million respectively, with corresponding gross margins of 24.1%, 37.8%, 38.6%, and 33.7% respectively. Industry overview The global payment industry covers two main dimensions: hardware and software, jointly building the operating foundation of modern payment ecosystems. This industry includes payment services provided by banks and third-party payment service providers, who have established secure payment settlement and clearing systems to support consumers in transferring funds from bank accounts to merchants. The main participants in the global payment market include: payment service providers, issuing banks, digital wallets, acquiring banks, beneficiary banks, clearinghouses, aggregated payment service providers, merchants, consumers, and POS terminal manufacturers. The entire value chain of the payment industry, from basic technological infrastructure (such as payment hardware manufacturing, payment software, and payment SaaS), extends to core transaction services (including domestic acquiring, international acquiring, and cross-border payments). Among the main payment industry participants in China, only a few comprehensive payment service providers can achieve multidimensional business coverage across the entire industry chain, including hardware manufacturing, software, SaaS, domestic/international acquiring, and cross-border payments. In recent years, driven by economic growth, the third-party payment industry in China has experienced rapid development, as evidenced by the increase in per capita GDP and total consumption. With the advancement of payment technologies such as artificial intelligence, blockchain, and big data, the industry has shown significant growth potential. According to Frost & Sullivan, based on TPV calculations, the third-party payment market in China has maintained steady growth in recent years, increasing from RMB 29.46 trillion in 2020 to RMB 33.17 trillion in 2024, with a compound annual growth rate of 3.0%. Looking ahead, with the continuous integration of QR code payments, aggregated acquiring, and DIGIHUMAN digital RMB, as well as the growing demand from platform merchants for unified acquiring operating solutions, it is expected that China's third-party payment TPV will reach RMB 39.27 trillion by 2029, implying a compound annual growth rate of 3.7% from 2025 to 2029. In recent years, digital payment tools have become increasingly popular and integrated into a wider range of payment scenarios, driving the growth of the comprehensive digital payment market, while the diversification of consumption scenarios is expected to further drive market expansion. The TPV of China's comprehensive digital payment market has increased from RMB 19.28 trillion in 2020 to RMB 26.86 trillion in 2024, with a compound annual growth rate of 8.6%, and is expected to reach RMB 36.58 trillion by 2029, with a compound annual growth rate of 7.2% from 2025 to 2029. In terms of the aggregated acquiring market, in recent years, the widespread application of barcode and QR code payment methods has significantly driven the growth of acquiring business. Looking ahead, the continuously expanding merchant base will continue to drive ongoing demand for acquiring services. The size of the aggregated acquiring market has increased from RMB 8.21 trillion in 2020 to RMB 10.89 trillion in 2024, with a compound annual growth rate of 7.3% from 2020 to 2024. In the future, the size of the acquiring market is expected to reach RMB 18.12 trillion by 2029, with a compound annual growth rate of 10.9% from 2025 to 2029. In terms of specific markets, the QR code acquiring market is growing at a faster rate, with a compound annual growth rate of 14.7%. As for the cross-border digital payment market, in recent years, the expansion of China's cross-border e-commerce market has benefited from strong overseas demand and the development of advanced digital infrastructure and global logistics networks. The surge in e-commerce activities has driven the growth of B2C cross-border digital payment industries. Meanwhile, the trend of Chinese companies expanding their overseas business is becoming more apparent, further driving the evolution of the B2B cross-border digital payment landscape. Looking ahead, with the continuous evolution of global and domestic trade environments in China and the continuous progress of market integration and payment technology, the cross-border digital payment market is expected to grow, potentially improving transaction efficiency and convenience. According to TPV, the size of China's cross-border digital payment market has increased from RMB 3.1 trillion in 2020 to RMB 7.5 trillion in 2024, with a compound annual growth rate of 24.7% from 2020 to 2024, and is expected to reach RMB 20.6 trillion by 2029, with a compound annual growth rate of 21.7% from 2025 to 2029. Board of directors information The board of directors consists of ten directors, including five executive directors, one non-executive director, and four independent non-executive directors. Ownership structure The single largest shareholder, company founder, chairman of the board of directors, and executive director and general manager, Mr. Liu Xiang, holds 24.32% of the shares, non-executive director Mr. Jiang Han holds 6.43% of the shares, and Mr. Liu Ya, the brother of Mr. Liu Xiang, holds 2.90% of the shares. Other A-share shareholders collectively hold 66.35% of the shares. As of June 30, 2025, there are over 80,000 other A-share shareholders. Intermediary team Company Legal Advisor: Hong Kong Law: King & Wood Mallesons; China Law: King & Wood Mallesons Beijing Office. Exclusive Sponsor Legal Advisor: Hong Kong Law: Han Kun Law Firm; China Law: Han Kun Law Firm. Reporting Accountant: DHMSY & Co. Industry Consultant: Frost & Sullivan Consulting Co., Ltd. Shanghai Branch. Compliance Advisor: Guosen (Hong Kong) Financing Co., Ltd.