Preview of New Stocks | Shenzhen Forms Syntron Information Resubmits Application "Behind the Increase in Profits, not Revenue" Ambitions in AI and Web3

In the wave of digital transformation of financial institutions, Shenzhen Forms Syntron Information rooted in the Greater Bay Area is trying to achieve a new leap with the help of capital markets. After the failure of its first filing at the end of 2025, the financial technology service provider that has been deeply involved in the banking industry for many years officially updated its listing application to the main board of the Hong Kong Stock Exchange recently, with Zhongyin International and Guosen (Hong Kong) as joint sponsors. Proactively "slimming down" Contracting low-margin business Looking at the financial fundamentals of Shenzhen Forms Syntron Information, the market usually focuses on short-term fluctuations in revenue scale, but if we look beyond the total changes, we can see a proactive strategic contraction and profitability model restructuring. According to the prospectus and regular report data, the company's operating income was 730 million yuan, 740 million yuan, and 631 million yuan respectively from 2023 to 2025, with a 14.8% year-on-year decrease in 2025; however, during the same period, net profit attributable to shareholders increased against the trend from 47.38 million yuan to 74.281 million yuan, and the comprehensive gross profit margin increased from 30.2% to 37.8%. The divergence in revenue and profit trends is rooted in the company's proactive reduction of the scale of low-margin projects in mainland China, reallocating resources systematically towards high-value businesses, thereby achieving substantial improvement in profitability quality. In the first quarter of 2026, the company achieved operating income of 156 million yuan, an 18.82% year-on-year increase, and the initial effects of overseas business expansion were evident. However, net profit attributable to shareholders decreased by 17.76% year-on-year, mainly due to the completion and confirmation of costs related to several historical loss-making projects in mainland China during the period, putting pressure on the quarterly gross profit margin. The recognition rhythm of project-driven income, while causing uneven distribution of profits, also signifies an accelerated clearing of historical burdens. Correspondingly, the company's cash flow position is extremely strong: as of March 31, 2026, the company had cash and cash equivalents of 1.129 billion yuan, and interest-bearing liabilities were zero. This "zero leverage, high liquidity" financial structure not only provides a solid financial guarantee for continued research and development investment in AI and Web3 fields, but also builds a strong safety margin for subsequent horizontal or vertical integration of the industrial chain. In addition to financial robustness, the high customer concentration remains a potential risk that cannot be ignored. From 2023 to 2025, the revenue contribution of the company's top five customers accounted for 90.1%, 93.7%, and 89.1% respectively, with the contribution of the largest customer rising from 41.1% to 52.7%. A highly concentrated customer structure implies that the company's performance elasticity is highly related to the IT capital expenditure and strategic direction of a single institution. If the core client reduces its budget or changes suppliers, it will constitute a significant challenge. However, it should be noted that the replacement cost of core banking systems is very high, and customized service stickiness is strong. Once a long-term cooperation relationship is established, it often forms a strong business lock-in effect, thereby mitigating the risk of customer loss to a certain extent and providing important support for the company's revenue base. "AI+Web3" dual engines to seize the opportunity of cross-border digital financial infrastructure If the optimization of the financial structure constitutes the defensive foundation of Shenzhen Forms Syntron Information, then the forward-looking layout of AI and Web3 is its strategic offensive strategy to build medium and long-term competitive barriers and open up incremental space. As a financial technology service provider deeply rooted in the Greater Bay Area, the company accurately anchors the Hong Kong "Fintech 2030" policy framework, positioning itself as a technology enabler for compliant Web3 financial services and a provider of digital financial infrastructure. In the Web3 track, the company's independently developed FINNOSafe platform integrates regulatory rules into smart contracts to achieve compliant automation of the entire lifecycle of tokenized assets, effectively reducing the compliance costs and operational risks of financial institutions. The company has actively participated in benchmark digital currency projects led by regulatory authorities, such as Project mBridge, Project Ensemble, and e-HKD in Hong Kong, accumulating significant first-mover advantages and implementation experience in central bank digital currencies (CBDCs) and digital asset infrastructure development. With the formal implementation of the stablecoin regulatory licensing system in Hong Kong, these compliance infrastructure capabilities are expected to accelerate the transformation into scalable commercial revenue. In the field of generative AI, the company has shown a forward-looking strategic positioning. Since the introduction of Banking Copilot in collaboration with Microsoft in 2023, the company has continued to iterate and evolve, building the FINNOSmart enterprise-level generative AI platform focused on anti-fraud and compliance prudence. Facing the stringent requirements of the financial industry for data privacy, model interpretability, and regulatory compliance, the company has been continuously selected as the official technology partner of the Hong Kong Monetary Authority's Gen AI Sandbox Program, effectively addressing the risk management pain points of commercial banks in the application of generative AI. Currently, FINNOSmart has formed two major product families, Agent and Engineer, providing financial institutions with secure and controllable, fast-deployable intelligent development and operational capabilities. The core differentiation product strategy of "AI+compliance" has enabled the company to build a unique competitive barrier in the increasingly competitive enterprise AI market. According to industry research data, the financial technology software development services market in mainland China and Hong Kong is expected to continue to expand at a compound annual growth rate of 15.4% from 2025 to 2030, with the Hong Kong market showing a more significant growth rate, providing clear incremental market opportunities for the company. In conclusion, Shenzhen Forms Syntron Information's update of its Hong Kong stock listing application comes at a critical juncture of the global financial technology industry transitioning from "mobilization" to "intelligentization and tokenization". The company actively shrinks low-margin businesses in exchange for improved profit quality, supports its forward-looking layout of AI and Web3 with a debt-free, high-cash balance, and accumulates significant first-mover advantages in compliance technology subtracks through deep involvement in Hong Kong regulatory sandbox and digital currency benchmark projects. However, transitioning from regional cultivation to a global infrastructure service provider still requires facing real challenges such as high customer concentration, verification of cross-border business expansion capabilities, and the pace of technological commercialization. The establishment of the "A + H" capital architecture, if successfully promoted, not only has the potential to broaden financing channels and enhance visibility in the international capital markets but also serves as an important slice to observe the depth of China's financial technology enterprises going global and their compliance competitiveness. The actual progress in the stablecoin ecosystem, generative AI application, and overseas market expansion will be the core yardstick to test the effectiveness of this strategic transformation.