We recently held a meeting with 03700.HK. The main topics of the meeting are: I) the sustainability of existing services, the growth of ii) and the utilization of iii) financial resources.

The newly launched products are the main growth power: [03700.HK], [active] and [positive] are the core application products of Yingke, which accounts for about half of the revenue. The total income of the people recorded in the first half of 2021 was about 4.03 billion yuan, of which about 97.2% came from value-added services in the application. Compared with the core application products that achieved flat to flat growth, the new R & D products with a product life span of about one year are the main growth force of 03700.HK.

"Social Plus" is still the main product development direction of 03700.HK, and launches about 40-50 models of subscription and live broadcast application products every year, supporting the collection to achieve ideal performance in the future.

Abundant financial resources: as of the end of June 2021, 03700.HK holds about 1.09 billion yuan in government funds and about 4.0 billion yuan in time deposits, equivalent to 31.2 percent of the total output and 46.1 percent of the market value. Abundant financial resources provide a basis for the collection to develop more applications and expand to other regions.

Due to the incomplete disclosure of information, the market value is not reflected: in addition to the above-mentioned financial resources, 03700.HK holds about 150 million yuan in investment, 1.09 billion yuan in financial assets and about 550 million yuan in equity investments, most of which are defined as second-and third-tier financial assets.

The zero dividend policy related to non-liability investment means that I) the number on the account is not sufficient to believe, ii) financial resources are not adequately utilized to return stocks, iii) small stocks are unable to share the results of the collection and are unable to express their opinions on the right to use handheld funds. Our shareholders cannot fully reflect the value of financial resources and operations, but we believe that transparent information and active utilization of financial resources are the primary conditions for the revaluation of financial resources.