Based on firm confidence in the company's development prospects and growth potential, Mr. Sun Taoyong, Chairman of the Board and CEO of WEIMOB INC (02013), increased his holdings by 4 million shares in the secondary market on August 22 at an average share price of HK$2.44, and indicated he does not rule out the possibility of further increases in the future. Stimulated by this positive news, WEIMOB's stock price gapped up and continued rising on August 25, surging over 16% intraday and closing up 13.17% at HK$2.75 per share, reaching a 120-day high.

Looking beyond the surface phenomenon, WEIMOB's 16% single-day surge was indeed boosted by the CEO's share increase, but the most crucial factor lies in the improvement of the company's fundamentals. The H1 2025 interim report showing a return to profitability has sounded the "trumpet" for WEIMOB INC's (02013) value revaluation.

On August 20, WEIMOB released its interim results announcement for 2025. Data shows that the company's revenue for the reporting period was 775 million yuan. After adjusting for the impact of the merchant solution rebate rate reduction in H1 2024, adjusted revenue increased by 7.8% year-over-year. Meanwhile, adjusted net profit achieved a turnaround from loss to profit, recording 17 million yuan, a significant improvement of 109.0% year-over-year, marking WEIMOB's first return to profitability since 2021.

The growth in adjusted revenue and the return to profitability in adjusted net profit after four years indicates that WEIMOB's fundamentals are quietly changing, with company operations gradually returning to a stable and improving development trajectory. WEIMOB also disclosed for the first time in its financial report that AI commercialization revenue reached 34 million yuan, accounting for nearly 5% of total revenue during the period, demonstrating initial success in AI commercialization.

Notably, international authoritative index agency MSCI recently upgraded WEIMOB's ESG rating to A. This represents a successful "triple jump" from BB to A in just three years, indicating that WEIMOB's long-term sustainable development capabilities have gained high recognition from international capital markets.

Multiple securities firms have expressed approval of WEIMOB's H1 2025 development. Both KaiSource Securities and Bank of America Securities stated that WEIMOB's H1 2025 revenue met market expectations while profit performance exceeded expectations. KaiSource Securities believes that WEIMOB's SaaS business is expected to return to profitability when the macro environment recovers, advertising business expansion across multiple channels is accelerating, and AI applications and overseas expansion are expected to contribute incremental growth, maintaining a "Buy" rating for WEIMOB.

This series of positive signals has indirectly confirmed that with the arrival of the new AI+SaaS era, WEIMOB has accumulated sufficient development momentum through thorough adjustments and has taken the lead in initiating a new round of growth. As the company's various strategies are gradually promoted and implemented, it is expected to enter the fast lane of high-quality development through new AI+SaaS industry opportunities, bringing rich returns to shareholders while injecting new vitality into the entire industry's development.

**Strong Customer Resource Synergy Driving Continued Acceleration of AI Commercialization**

From an industry perspective, benefiting from the dual drivers of policy encouragement and AI technology innovation, China's SaaS industry overall showed a stabilizing trend in H1 2025, but structural differentiation was relatively obvious. Vertical fields such as healthcare and finance accelerated their emergence, while general tools like CRM/ERP faced pressure with further slowing growth rates.

For WEIMOB, although the retail SaaS industry faces potential challenges from macroeconomic weakness and sluggish consumption, the company's determination to go "All in AI" and seize trend opportunities remains unchanged. The SaaS industry has now formed a consensus: with Deepseek leading the era of AI technology democratization, the era of SaaS contractive growth will end early, and the SaaS industry empowered by AI may usher in another "golden decade."

The logic behind this is that SaaS companies have accumulated rich data assets and customer resources through rigid scenarios in the past. After entering the AI democratization era, data quality will determine AI's upper limit, making data assets the scarcest resource. This redefines the value of SaaS portals in the AI era, transforming from "tools" to "ecosystem hubs." SaaS companies, with the scarcity of "data-scenarios-portals" trinity, will become core carriers of AI commercialization.

Minsheng Securities states that after AI democratization, competition in AI applications essentially becomes competition for data and portals, and enterprise SaaS is expected to welcome development opportunities far exceeding the remote office period.

Facing the industry wave of AI+SaaS era, WEIMOB continues to make deep cultivation and implementation of AI innovation capabilities a strategic key point. It is fully betting on the AI track, aiming to leverage AI technology empowerment to release new development momentum and drive the industry's accelerated transformation from traditional operational models to intelligent new ecosystems.

To date, WEIMOB has formed four major directions: "AI+SaaS, AI+Marketing, To B (personalized AI customized solutions), To C (AI e-commerce design tools)," exploring new AI Agent layouts. Based on this business layout, WEIMOB has successfully launched three major intelligent solutions: WEIMOB WAI, WAI Pro, and WIME, which can provide adaptive AI Agent solutions for different customer groups.

During the reporting period, WEIMOB continuously refined and iterated AI products, helping merchants achieve full-process intelligence from store setup and operational management to marketing placement. Various AI solutions achieved significant results. Among them, WAI SaaS average monthly active merchants increased by 57% compared to H2 2024, the shopping guide Agent launched intelligent shopping guide task management functions and shopping guide lead operation capabilities, and the store setup Agent usage increased by 4.5 times while merchants using product listing increased by 3.9 times quarter-over-quarter.

Meanwhile, WAI Pro implemented AI customization services for multiple large clients, providing complete solutions from early AI consultation to subsequent Agent application implementation. WIME serves small and micro e-commerce practitioners as an AI website building tool, was among the first to enter WeChat Mini Store service market, and also landed on Xiaohongshu and opened stores there. In H1, cumulative registered users reached 116,000, an increase of 139% from the end of 2024, with continuously increasing paid users and revenue growth of 172%.

Benefiting from the continued penetration of AI products among customer groups, WEIMOB's AI and related revenue achieved a breakthrough during the reporting period, recording 34 million yuan, accounting for nearly 5% of total revenue for the period.

Notably, AI product penetration has strong synergy with SaaS business in terms of customer resources, meaning WEIMOB's AI product penetration speed may exceed market expectations. Once AI service penetration breaks through 15%, the penetration slope will see significant acceleration, which will have a notable impact on WEIMOB's revenue and profit sides.

**Embracing Tencent's New E-commerce Opportunities with Omnichannel Integration and Cross-border E-commerce Acceleration**

While going "All in AI" to accelerate AI commercialization, WEIMOB is also deploying multi-dimensionally around new changes in the retail SaaS industry. During the reporting period, the launch of Tencent's "WeChat Mini Store," accelerated omnichannel integration, and rapid development of cross-border e-commerce were all significant features of the retail SaaS industry. WEIMOB keenly captured these industry dynamics, responded quickly, and actively addressed new market changes.

Regarding "WeChat Mini Store," as one of the first service providers to access Tencent's WeChat Mini Store, WEIMOB took the industry lead in launching five major "WEIMOB × WeChat Mini Store" solutions. Through integrated operations, intelligent efficiency improvement, organizational node management, and WeChat Mini Store CRM member operation systems, it helps merchants of different business types, stages, and operational levels improve operational efficiency and business capabilities for business growth based on the WeChat Mini Store ecosystem.

These five major solutions penetrated 15% of existing accounts in their first month online, and merchants who activated functions during the reporting period achieved average month-over-month order growth of 27% and average month-over-month member growth of 26%. In H1 2025, WEIMOB's newly bound WeChat Mini Store merchants had monthly GMV of approximately 50 million yuan with monthly growth rates of about 100%.

Clearly, WEIMOB's assistance to merchants in deploying "WeChat Mini Store" has shown significant results. Based on "WeChat Mini Store," while providing more value-added services to existing customers, it is also expected to gain new incremental customers in the future as "WeChat Mini Store" continues to prosper.

In terms of omnichannel integration, due to the current highly fragmented consumption scenarios where single channels cannot cover target customer groups, WEIMOB continues to deeply cultivate mainstream platforms such as Tencent, Kuaishou, Douyin, and Xiaohongshu while accelerating the connection between various channels to provide customers with high-quality refined services.

As a Huawei HarmonyOS meta-service provider, WEIMOB actively explores HarmonyOS ecosystem merchant technology service market opportunities. Meanwhile, WEIMOB mini-programs connect Douyin group purchase coupons and "mini-program/store visit" dual-end verification scenarios, achieving comprehensive connectivity with Meituan group purchase coupon verification capabilities.

Additionally, WEIMOB mini-programs access "Xiaohongshu guaranteed payment capabilities" while further consolidating leading service positions in Xiaohongshu's advantageous industries. WEIMOB also jointly launched the "Vitality Great Price Festival" with Alipay, creating full-link marketing closed-loop services for brands. Served customers' advertising consumption on the Alipay channel has risen strongly, gradually highlighting the commercial value of omnichannel integration.

In cross-border e-commerce, WEIMOB continued its efforts during the reporting period, actively exploring internationalization opportunities. WEIMOB's one-stop e-commerce growth solution Markivo has become a Shopify application service provider and launched multiple paid and free e-commerce application suites covering intelligent discounts, free shipping, viral recommendations, and customer management functions.

WEIMOB's subsidiary Haiding not only assists existing customers in expanding Southeast Asian and European-American businesses but also newly developed three Chinese overseas enterprises targeting Thai and Indonesian markets and one overseas supermarket customer in Oceania. It received the "WAVE2025 Outstanding Brand Overseas Service Provider" award from global industry think tank Xiaguang Society, further consolidating its market position in cross-border e-commerce SaaS.

**Continued Enhancement of Large Client Influence and Significant Improvement in Marketing Business Profitability**

While accelerating deployment toward industry opportunities, WEIMOB pays more attention to operational efficiency and return ratios at the operational level, pursuing high-quality development. Therefore, during the reporting period, the company continued promoting its large client strategy while continuously adjusting customer structure and improving operational efficiency, thereby improving the company's profitability level. This enabled WEIMOB's adjusted net profit to achieve a turnaround after four years.

As integrated solutions represented by "retail + enterprise WeChat" and "retail + enterprise WeChat + membership" are increasingly recognized by customers, WEIMOB's large client effects continue to be consolidated. Data shows that customers using smart retail achieved GMV growth of 13.4% year-over-year during the reporting period, with billion-level GMV accounts increasing 60% year-over-year and million-level GMV accounts increasing 34% year-over-year. Group enterprises showed upward trends in multi-brand cooperation and multi-business line cooperation, with multi-account cooperation customers increasing 22.2% year-over-year and multi-account cooperation customer revenue growing 19.3% year-over-year.

Meanwhile, the smart shopping mall solution jointly launched by WEIMOB and its subsidiary Haiding Technology continues to iterate, building multi-dimensional digital foundations for commercial complexes and successfully serving multiple leading customers including Poly Commercial Travel, Xincheng Holdings Group, Kaiyuan Group, and Wushang Group.

Under the joint promotion of multi-dimensional measures, WEIMOB's influence in the large client market has further improved, accounting for 48% of China's top 100 fashion retailers, 50% of the top 100 commercial real estate companies, and 42% of the top 100 chain convenience stores.

Benefiting from continued promotion of the large client strategy, WEIMOB's average revenue per paying merchant for subscription solutions increased by 4.5% to 7,402 yuan during the reporting period, with continuously rising customer unit prices. The adjusted gross margin of subscription solutions improved by 2.5 percentage points to 62.8%.

Smart retail recorded revenue of 286 million yuan, accounting for 65.2% of subscription solution revenue, with 1,227 brand merchants and average order revenue per brand merchant of 179,000 yuan. Smart retail continues to play a key role as the "ballast" of the subscription solutions business.

In merchant solutions, while continuing to deeply cultivate Tencent, WEIMOB is also accelerating its deep layout in mainstream platforms such as Kuaishou, Douyin, and Xiaohongshu to explore new growth spaces. During the reporting period, WEIMOB's leading position in Tencent advertising was further consolidated, with overall consumption growing 4% year-over-year and video account advertising consumption growing 46% year-over-year, winning a cumulative 25 awards including the 2024 Tencent Advertising Regional Channel Annual Service Provider "Strategic Cooperation Award."

Annual consumption on Xiaohongshu platform grew 87% year-over-year, while winning two awards from Kuaishou Magnetic Engine: "2025 Annual Top Ten Benchmark Partners" and "Lead Management Outstanding Partner."

Notably, during the reporting period, WEIMOB proactively adjusted the customer structure of merchant solutions, no longer serving some low-margin, high-advance payment, or long-term clients, which to some extent affected the growth elasticity of merchant solution services. During the reporting period, WEIMOB's paying merchants for merchant solutions increased 1.5% to 39,281, with average spending per paying merchant of 219,523 yuan, up 1.9%. Gross advertising revenue placed during the period was approximately 8.623 billion yuan, up 3.4% year-over-year.

Although proactively adjusting customer structure somewhat slowed advertising placement gross revenue growth, it effectively improved the profitability level of merchant solution services and ensured financial health, reflected in two aspects. First, adjusted revenue from merchant solutions surged 45.3% to 338 million yuan, becoming the core driver of WEIMOB's adjusted total revenue growth. Second, the adjusted gross margin of merchant solutions during the reporting period reached 91.3%, an improvement of 33 percentage points from the same period in 2024, driving WEIMOB's total gross margin to 75.2%, an increase of over 15 percentage points, with corresponding total gross profit growing 36.1% to 583 million yuan.

Clearly, proactively adjusting the customer structure of merchant solution services played a key role in improving the profitability of this business. While total gross profit increased significantly, WEIMOB's sales and distribution expenses and general and administrative expenses both achieved notable decreases during the reporting period, declining 31.1% and 24.5% respectively. This was mainly due to WEIMOB's significant improvement in operational efficiency, reducing corresponding expenses, which was also one of the core reasons for WEIMOB's return to profitability.

This shows that WEIMOB's first return to profitability since 2021 resulted from the company's joint efforts in multiple aspects, but the significance shown behind the financial figures is more important: after nearly four years of adjustment and accumulation, WEIMOB has explored a high-quality development model suitable for the current industry environment. This is an inevitable result of the company's comprehensive large client transformation and continuous improvement in operational management capabilities, which may also be a new starting point for WEIMOB's fundamental stabilization and recovery.

**Conclusion:**

From the capital market perspective, WEIMOB's fundamental stabilization and recovery has gained capital recognition, with its stock price rising from the April low of HK$1.36 to a high of HK$2.83 in August, a maximum gain of 83%. Although the stock price pulled back somewhat after the interim results release, this was due to funds that had positioned ahead of earnings taking profits, which is quite common in capital markets. The fact that the stock price reached new highs again after just two trading days demonstrates capital's recognition of this financial report.

The key factors determining WEIMOB's subsequent stock price trends still lie in the two dimensions of performance and valuation. WEIMOB stated that in the second half of the year, the company will focus on high-value customers and optimize resource allocation as core strategies for corporate cost reduction and efficiency improvement, further moving toward high-quality development through improving operational quality and developing new AI growth opportunities. This means the possibility of WEIMOB's performance further recovery is relatively high, which can also be supported by securities firms' performance forecasts.

KaiSource Securities predicts WEIMOB's adjusted net profits for 2025-2027 will be 50 million yuan, 130 million yuan, and 240 million yuan respectively. Bank of America Securities forecasts WEIMOB's adjusted net profits for 2025-2027 will be 34 million yuan, 101 million yuan, and 191 million yuan respectively. Although there are differences between the two predictions, both reflect that WEIMOB's future profit release is expected to be stable and improving.

From a valuation perspective, WEIMOB's current market cap corresponds to a PS valuation of only about 4.8 times for 2025, still at historical lows with room for further valuation repair. Based on this, the current time may still be a good opportunity to position in WEIMOB, as in the medium term, the company has a high probability of experiencing a "Davis Double Click" market driven by both performance recovery and valuation repair. From a long-term perspective, the penetration speed of AI services will become a key factor determining the company's valuation ceiling, and the company's intrinsic value is expected to multiply as AI service penetration continues to accelerate, deserving investors' continued tracking and attention.