--- title: "Goodbye to advertising business and switch to e-commerce, Qian Xun Technology hopes to gild with cryptocurrency" type: "News" locale: "en" url: "https://longbridge.com/en/news/270706122.md" description: "Qian Xun Technology has transformed from an advertising business to e-commerce and cryptocurrency services, launching the PayKet platform, which allows users to make payments and settlements using stablecoins. The company has acquired a fintech company to develop blockchain products. Hong Kong has an open attitude towards stablecoins, and PayKet services may be based on Hong Kong's stablecoin regulatory framework" datetime: "2025-12-24T08:45:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/270706122.md) - [en](https://longbridge.com/en/news/270706122.md) - [zh-HK](https://longbridge.com/zh-HK/news/270706122.md) --- # Goodbye to advertising business and switch to e-commerce, Qian Xun Technology hopes to gild with cryptocurrency _Qian Xun Technology originally focused on advertising services, but is now expanding into e-commerce and cryptocurrency businesses, allowing users to settle transactions in its second-hand electronic products trading business using stablecoins._ #### **Key Points:** - Qian Xun Technology launched the PayKet platform, enabling users to make payments using stablecoins, gradually phasing out its advertising services. - In September this year, the company acquired a fintech company to develop new products and services based on blockchain technology. Liang Wuren It can be said that **Qian Xun Technology Limited** (1640.HK) is a microcosm of the recent transformation trend among Chinese listed companies. These enterprises often quickly adjust their development strategies, abandoning old businesses in favor of pursuing the hottest new directions in the market. For Qian Xun Technology, the company clearly hopes for a future tied to virtual currency-related applications. Last Friday, Qian Xun Technology, which is transitioning from an advertising service provider to an e-commerce platform operator, further showcased its latest strategic direction by launching a brand new **payment service**. This service, named PayKet, is primarily used for cross-border payment settlements in second-hand mobile phone transactions and utilizes stablecoins for transactions. Stablecoins are cryptocurrencies that are pegged to real-world assets like the US dollar. Additionally, the product offers several features that help simplify supply chain finance, including digital currency wallet services. In mainland China, cryptocurrencies are prohibited, but Hong Kong adopts a relatively open attitude towards them, especially stablecoins. Due to their lower speculative nature and their purpose of maintaining value stability, stablecoins have gained a higher level of acceptance in Hong Kong. In August of this year, Hong Kong officially launched a regulatory framework for stablecoins, and the services related to PayKet are likely based on this regulatory framework. The launch of PayKet comes just three months after Qian Xun Technology agreed to acquire Web3 fintech company Punkcode Technology for HKD 25 million (approximately USD 3.2 million). The company was founded by former Tencent employees, and the acquisition is primarily aimed at developing new products and services based on blockchain technology. As the business focus shifts from advertising services to e-commerce, Qian Xun Technology is actively exploring the application of cryptocurrencies in real transaction scenarios. Previously, the company also acquired an online trading platform for second-hand computers and other electronic devices last year. In the process of advancing this transformation, the company officially changed its name from Rui Cheng (China) Media Group Limited to the current Qian Xun Technology Limited earlier this year. Driven by the new e-commerce business, Qian Xun Technology's revenue surged ninefold year-on-year to HKD 647 million (approximately USD 92 million) in the first half of this year, while its advertising business revenue contracted during the same period. However, the e-commerce business has also somewhat lowered Qian Xun Technology's overall gross profit margin in the past six months. Meanwhile, the growth rate of the company's net profit is similar to that of its revenue, but is mainly benefited by non-operating factors, most of which come from gains recorded from the sale of a subsidiary. Encouragingly, the performance in the first half of the year indicates that the company is likely to achieve its first annual net profit in many years #### **Breaking Through Cross-Border Payment Pain Points** One major advantage of stablecoins and other cryptocurrencies is that transaction settlements can be completed almost instantly and at a lower cost than using state-issued currencies like the US dollar or Chinese yuan. Qian Xun Technology stated that this will help alleviate various "pain points" in the cross-border payment process. According to a report released in October by the venture capital fund a16z crypto, which invests in cryptocurrency startups, stablecoins have been used for transactions totaling $46 trillion in the past year. Currently, Qian Xun Technology handles overseas sales of over 1 million mobile phones annually, so the user base for PayKet is expected to expand rapidly. At the same time, the application of PayKet is not limited to payment settlements for second-hand mobile phone transactions; the company plans to expand its product categories to cover all "3C" products, namely computers, communication devices, and consumer electronics. Qian Xun Technology uses PayKet not only as a payment settlement tool but also incorporates it as an important part of its supply chain finance layout. Emerging technologies such as blockchain and artificial intelligence can bring significant changes to such financing activities by accelerating processes, enhancing transparency, and managing risks more effectively. By integrating its self-developed Internet of Things (IoT) smart warehousing technology and AI models for price prediction, PayKet provides credit intermediary services for supply chain finance. At the same time, the platform digitizes inventory goods and combines them with smart contracts, which are digital contracts stored on a blockchain network. Customers can also use idle funds on the platform for wealth management functions. The company pointed out in its announcement regarding PayKet that the launch of this product marks its upgrade to a digital currency fintech service provider. The company also stated that this is an important step towards becoming the "cross-border trade version of Tenpay," which is Tencent's cross-border payment service. Ultimately, PayKet will generate new revenue sources for Qian Xun Technology through fees charged for various services, helping to accelerate the company's transformation from an advertising service provider. Against the backdrop of a long-term slowdown in the Chinese economy, the tightening of marketing budgets by existing advertising service clients has put pressure on the company's traditional core business, prompting Qian Xun Technology to make a transformation decision. During this period, Qian Xun Technology recorded losses for three consecutive years ending in 2024. At the same time, the economic environment in China and many countries around the world remains weak, meaning that more and more consumers may choose to purchase second-hand electronic products rather than spend heavily on new devices, thereby increasing demand for Qian Xun Technology's services. With the rise in market acceptance, along with improvements in standardized processes and refurbishment capabilities, a new generation of Chinese electronic product recycling companies has emerged, including RERE.US, which is listed in the United States, and Flashback Technology, which has applied for a listing in Hong Kong. To develop new services related to second-hand device transactions in China and overseas markets, Qian Xun Technology raised approximately HKD 300 million this year through the issuance of convertible bonds. Investors seem optimistic about Qian Xun Technology's development direction, driving the company's stock price up by about a quarter this year. Its current price-to-sales ratio (P/S) is approximately 2, which is still relatively moderate but significantly higher than that of e-commerce giant JD.US; The valuation of 9618.HK is 0.2 times, and that of WanWu XinSheng is 0.5 times. This valuation is also higher than that of CANG.US at 0.8 times. Recently, CANG has also completed its transformation from an automobile dealer to a Bitcoin mining company and a high-performance computing (HPC) center operator ### Related Stocks - [01640.HK](https://longbridge.com/en/quote/01640.HK.md) ## Related News & Research - [Bank of England weighs issuance caps over holding limits for stablecoins](https://longbridge.com/en/news/286982766.md) - [BankThink Banking lobbyists should take the win on the stablecoin yield ban](https://longbridge.com/en/news/287057987.md) - [The Real Game Behind Hyperliquid Stablecoin Partnerships](https://longbridge.com/en/news/287037674.md) - [Pan-European stablecoin effort expands to 37 lenders in push back against U.S. dollar dominance](https://longbridge.com/en/news/287080267.md) - [Circle May Have 'The Cards' In Stablecoin Race If CLARITY Act Passes: Report](https://longbridge.com/en/news/286785465.md)