Annual Report 年報 年報 Annual Report 202 4 Contents 目錄 | 2 | Corporate Information | 公司資料 | | --- | --- | --- | | 4 | Directors and Senior Management | 董事及高級管理層 | | 7 | Letter from the Board | 董事會函件 | | 9 | Management Discussion and Analysis | 管理層之討論與分析 | | 14 | Report of the Directors | 董事會報告 | | 79 | Corporate Governance Report | 企業管治報告 | | 98 | Independent Auditor's Report | 獨立核數師報告 | | 106 | Consolidated Income Statement | 綜合收益表 | | 107 | Consolidated Statement of Comprehensive Income | 綜合全面收益表 | | 108 | C ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HI SUN TECHNOLOGY (CHINA) LIMITED 高陽科 技（中 國）有限公 司 * （於百慕達註冊成立之有限公 司） （股份代 號：818） 截至二零二四年十二月三十一日止年度之 業績公佈 財務概覽 | | 二零二四年 | 二零二三年 | 變動 | | --- | --- | --- | --- | | | 千港元 | 千港元 | +/(-) | | 業績 | | | | | 收入 | 2,340,040 | 2,709,164 | -14% | | 毛利 | 908,802 | 992,177 | -8% | | # 分類EBITDA （扣除未分配項目前） | 172,840 | 300,875 | -43% | | 經營溢利，未包括出售附屬公司之收益淨額 | 6,543 | 74,545 | -91% | | 經營溢利，包括出售附屬公司之收益淨額 | 99,769 | 77,82 ...

Borrowers and Receivables - The total number of borrowers in the financial technology services business as of December 31, 2023, was 69,818[9] - The total amount of receivables as of December 31, 2023, was approximately HKD 1,682,500,000, including HKD 302,400,000 from small loan business and HKD 1,380,100,000 from supply chain financing business[9] - The receivables from the top five borrowers (all from supply chain financing business) amounted to approximately HKD 210,200,000, accounting for about 12.5% of the total receivables and approximately 1.6% of the company's total assets as of December 31, 2023[9] Interest Rates and Credit Losses - The actual annual interest rate for receivables typically ranges from 4% to 24%[9] - The company recorded credit impairment losses on receivables of approximately HKD 54,700,000 and wrote off receivables of approximately HKD 67,600,000 for the year ended December 31, 2023[10] Small Loan Business - The small loan business targets individuals with small loan financial needs, with loan amounts generally ranging from RMB 2,000 to RMB 50,000 and loan terms ranging from 3 to 12 months[3] Supply Chain Financing Business - The supply chain financing business targets enterprises, with loan terms generally ranging from one month to twelve months[7] - The company maintains a database of potential clients, primarily large enterprises with high credit ratings and strong financial strength[7] Risk Management and Credit Evaluation - The company has implemented post-loan risk management policies for both small loan and supply chain financing businesses to ensure timely repayment and manage credit risks[4][8] - The company uses a comprehensive credit evaluation process for both small loan and supply chain financing businesses, including real-name authentication, income verification, and creditworthiness assessment[3][6]

Revenue and Segment Performance - Payment and digital services segment revenue decreased to HK$892.68 million in 1H2024 from HK$1,023.80 million in 1H2023, a decline of 12.8%[5] - Fintech services segment revenue dropped to HK$46.70 million in 1H2024 from HK$115.66 million in 1H2023, a decrease of 59.6%[5] - Platform operation solutions segment revenue slightly decreased to HK$57.06 million in 1H2024 from HK$59.92 million in 1H2023, a decline of 4.8%[5] - Financial solutions segment revenue increased to HK$99.81 million in 1H2024 from HK$94.86 million in 1H2023, a growth of 5.2%[5] - Total revenue for 1H2024 was HK$1,176.89 million, down from HK$1,310.61 million in 1H2023, a decrease of 10.2%[5] - Segmental turnover for payment and digital services in 1H2024 was HK$892.2 million, down from HK$1,023.5 million in 1H2023[11] - Fintech services segment turnover decreased by 62% to HK$43.9 million in 1H2024 compared to HK$115.7 million in 1H2023, primarily due to a decrease in loan volume[16] - Platform operation solutions segment turnover decreased by 5% to HK$57.1 million in 1H2024 compared to HK$59.9 million in 1H2023[17] - Financial solutions segment turnover increased by 5% to HK$99.8 million in 1H2024 compared to HK$94.9 million in 1H2023[22] - Other business operations segment turnover increased significantly to HK$83.9 million in 1H2024 from HK$16.7 million in 1H2023, contributing 7% to the Group's consolidated turnover[23] - Consolidated turnover decreased by 10% to HK$1,176.9 million in 1H2024 compared to 1H2023, mainly due to a decline in the payment and digital services segment[27] - Revenue for the six months ended 30 June 2024 was HK$1,176,888 thousand, a decrease from HK$1,310,613 thousand in the same period in 2023[155] Profit and Earnings - Operating profit for 1H2024 was HK$9.49 million, significantly lower than HK$69.74 million in 1H2023, a decline of 86.4%[7] - Profit for the period in 1H2024 was HK$23.42 million, compared to HK$357.01 million in 1H2023, a decrease of 93.4%[7] - Basic earnings per share for 1H2024 were HK$0.001, down from HK$0.115 in 1H2023[7] - Diluted earnings per share for 1H2024 were HK$(0.032), compared to HK$0.083 in 1H2023[7] - Profit for 1H2024 totaled HK$23.4 million, down from HK$357.0 million in 1H2023[10] - Segmental operating profit for payment and digital services in 1H2024 was HK$90.8 million, a 20% decrease compared to 1H2023[11] - Fintech services segment operating loss increased to HK$20.5 million in 1H2024 from a profit of HK$55.6 million in 1H2023, driven by lower turnover and higher credit impairment loss[16] - Platform operation solutions segment operating loss increased to HK$21.1 million in 1H2024 from HK$16.1 million in 1H2023, mainly due to a fair value loss of HK$2.2 million on financial assets[20] - Financial solutions segment operating loss decreased to HK$2.5 million in 1H2024 from HK$39.0 million in 1H2023, primarily due to reduced upfront costs[22] - Operating profit for the six months ended 30 June 2024 was HK$9,488 thousand, significantly lower than HK$69,735 thousand in the same period in 2023[155] - Profit for the period ended 30 June 2024 was HK$23,415 thousand, compared to HK$357,007 thousand in the same period in 2023[155] - Basic earnings per share for the six months ended 30 June 2024 were HK$0.001, down from HK$0.115 in the same period in 2023[156] - Diluted earnings per share for the six months ended 30 June 2024 were HK$(0.032), compared to HK$0.083 in the same period in 2023[156] - Profit for the period decreased significantly to HK$23,415 thousand in 2024 from HK$357,007 thousand in 2023, representing a decline of approximately 93.4%[159] - Total comprehensive loss for the period was HK$111,619 thousand in 2024, compared to a total comprehensive income of HK$26,515 thousand in 2023[159] - Profit for the period ending 30 June 2024 was HK$3,397 thousand, compared to HK$316,301 thousand in the same period in 2023[166][170] - Total comprehensive loss for the period ending 30 June 2024 was HK$(11,619) thousand, compared to a comprehensive income of HK$26,515 thousand in the same period in 2023[166][170] EBITDA and Operating Metrics - EBITDA for the payment and digital services segment decreased to HK$117.47 million in 1H2024 from HK$175.41 million in 1H2023, a decline of 33.0%[5] - EBITDA for 1H2024 was HK$117.5 million, a 33% decrease compared to HK$175.4 million in 1H2023[9] - Operating profit for 1H2024 was HK$90.8 million, a 20% decrease compared to HK$113.7 million in 1H2023[9] - Gross profit for the six months ended 30 June 2024 was HK$413,836 thousand, down from HK$476,332 thousand in the same period in 2023[155] Assets and Liabilities - Total assets as of 30 June 2024 were HK$12,147.8 million, compared to HK$13,031.7 million as of 31 December 2023[10] - Net current assets as of 30 June 2024 were HK$3,765.3 million, compared to HK$3,958.4 million as of 31 December 2023[10] - Total assets as of June 30, 2024, were HK$12,147.8 million, a decrease from HK$13,031.7 million as of December 31, 2023[85] - Net asset value per share decreased to HK$2.761 as of June 30, 2024, from HK$2.801 as of December 31, 2023[85] - Capital-to-debt ratio improved to 0.7% as of June 30, 2024, from 1.1% as of December 31, 2023, indicating a stable financial position[85] - Total non-current assets increased to HK$3,915,207 thousand in 2024 from HK$3,841,206 thousand in 2023[160] - Current assets decreased to HK$8,232,616 thousand in 2024 from HK$9,190,512 thousand in 2023[160] - Total liabilities decreased to HK$4,481,707 thousand in 2024 from HK$5,253,700 thousand in 2023[163] - Total equity decreased to HK$7,666,116 thousand in 2024 from HK$7,778,018 thousand in 2023[160] - Total equity as of 30 June 2024 was HK$7,666,116 thousand, a decrease from HK$7,778,018 thousand at the beginning of the year[166] - Retained earnings as of 30 June 2024 were HK$8,624,948 thousand, up from HK$8,621,551 thousand at the start of the year[166] - Non-controlling interests increased to HK$592,656 thousand as of 30 June 2024, up from HK$281,083 thousand at the beginning of the year[166] - Exchange reserve decreased to HK$(329,137) thousand as of 30 June 2024, down from HK$(208,778) thousand at the start of the year[166] - Share capital remained stable at HK$6,942 thousand as of 30 June 2024, consistent with the previous year[166][170] - Treasury shares decreased to HK$(9,971) thousand as of 30 June 2024, down from HK$(9,826) thousand at the start of the year[166] - Other reserves decreased to HK$(2,450,909) thousand as of 30 June 2024, down from HK$(2,450,541) thousand at the beginning of the year[166] - Contributed surplus remained unchanged at HK$168,434 thousand as of 30 June 2024[166] Cash Flow and Financial Activities - Net cash generated from operating activities for the six months ended 30 June 2024 was HK$235,155,000, compared to HK$594,342,000 in the same period in 2023[173] - Net cash used in investing activities for the six months ended 30 June 2024 was HK$150,403,000, compared to net cash generated of HK$83,530,000 in the same period in 2023[173] - Net cash used in financing activities for the six months ended 30 June 2024 was HK$43,863,000, compared to HK$936,886,000 in the same period in 2023[173] - Cash and cash equivalents at the end of the period were HK$3,466,985,000, compared to HK$3,177,587,000 at the end of the same period in 2023[174] - The company received HK$83,720,000 in dividends from an associated company, compared to HK$69,160,000 in the same period in 2023[173] - Interest received during the period was HK$77,460,000, compared to HK$32,217,000 in the same period in 2023[173] - The company recorded a decrease in bank deposits of HK$522,679,000 during the period, compared to no change in the same period in 2023[173] - The company disposed of financial assets at fair value through profit or loss for proceeds of HK$535,275,000, compared to no such disposals in the same period in 2023[173] - The company acquired financial assets at fair value through profit or loss for HK$309,935,000, compared to no such acquisitions in the same period in 2023[173] - The company's cash and cash equivalents included HK$20,418,000 classified as held for sale, compared to none in the same period in 2023[175] - The company reclassified a decrease in restricted bank balances of HKD 142,180,000 from investing activities to operating activities for the period ended June 30, 2023, due to a reassessment of the nature of these balances related to merchant settlement services[183] - The net cash generated from operating activities for the period ended June 30, 2023, was restated to HKD 594,342,000 from HKD 736,522,000, while the net cash used in investing activities was restated to a net cash inflow of HKD 83,530,000 from a net cash outflow of HKD 58,650,000[183] Investments and Financial Instruments - The Group holds 364 million ordinary shares of PAX Global, representing a 34.0% effective interest with a fair value of HK$2,133.0 million as of 30 June 2024[37] - PAX Global's unaudited net profit decreased in 1H2024 primarily due to a decline in revenue, attributed to reduced purchase orders in certain markets amid global economic uncertainty[38] - The Group holds approximately 45.73% of Megahunt's issued shares, with a recoverable amount lower than its carrying amount, resulting in a non-cash impairment loss of HK$140.9 million in 1H2024[42] - The company's financial assets measured at fair value as of June 30, 2024, included unlisted investment funds valued at HKD 78,221,000 (Level 3) and listed equity securities valued at HKD 709,000 (Level 1), totaling HKD 78,930,000[196] - As of December 31, 2023, the company's financial assets measured at fair value included unlisted investment funds valued at HKD 82,321,000 (Level 3), listed equity securities valued at HKD 834,000 (Level 1), and investments at fair value through profit or loss valued at HKD 226,051,000 (Level 2), totaling HKD 309,206,000[198] - No significant transfers of financial assets and financial liabilities between fair value hierarchy classifications during the six months ended 30 June 2024[199] - Fair value of financial instruments in Level 1 is based on quoted market prices at the balance sheet date, using the current bid price for financial assets held by the Group[200] Shareholder and Equity Information - Kui Man Chun holds a total of 653,733,636 shares, representing 23.54% of the company's issued shares[124] - Xu Wensheng holds 11,966,000 shares, representing 0.43% of the company's issued shares[124] - Li Wenjin holds 13,800,000 shares, representing 0.50% of the company's issued shares[124] - Xu Changjun holds 23,958,000 shares, representing 0.86% of the company's issued shares[124] - Hui Lok Yan holds 2,100,000 shares, representing 0.08% of the company's issued shares[124] - Rich Global Limited holds 617,083,636 shares, representing 22.22% of the company's issued shares[125] - Hi Sun Limited holds 617,083,636 shares, representing 22.22% of the company's issued shares[125] - Ever Union Capital Limited holds 334,314,000 shares, representing 12.04% of the company's issued shares[125] - Kopernik Global Investors, LLC holds 166,599,000 shares, representing 6.00% of the company's issued shares[125] - The company did not purchase, sell, or redeem any of its shares during the period[130] - No options were granted, vested, exercised, cancelled, or lapsed under the Share Option Scheme since its adoption, with 277,683,383 options available for grant as of 30 June 2024[141] - No awards were granted, vested, cancelled, or lapsed under the Share Award Scheme during the six months ended 30 June 2024, with 245,688,383 awards available for grant as of 30 June 2024[141] - The VBill (Cayman) Share Option Scheme has a term of 10 years until 12 June 2033, with 800 options available for grant as of 30 June 2024[143] - The VBill OPCO Share Option Scheme expired on 6 February 2024, with no options granted, vested, exercised, cancelled, or lapsed during the six months ended 30 June 2024[144] - The VBill OPCO Share Option Scheme terminated on 6 February 2024, with no further options available for issue[147][149] Business Operations and Strategic Initiatives - The decline in segmental turnover and operating profit was primarily due to the replacement of traditional payment markets by digital payments, which have lower handling fee rates[12] - The company is actively expanding its management service products, platforms, and cross-border business despite short-term pressures during the digital transformation period[12] - The company disposed of two indirect wholly-owned subsidiaries for approximately RMB41.6 million, ceasing its electronic power meters and solutions business[148][150] - The company maintained sufficient public float as required under the Listing Rules throughout the six months ended 30 June 2024[151][152] - The company entered into a 2021 Manufacturer Guarantee Agreement, increasing the guarantee amount to up to US$20 million (approximately HK$156 million)[98][100] - No liability was recognized for the 2021 Manufacturer Guarantee Agreement and the 2020 OEM Guarantee Agreement as of June 30, 2024[99][100] - The total number of employees as of 30 June 2024 was 2,667[102] - Digital payments grew by more than 50% year-on-year in the first half of 2024[109] - The transaction volume of the automotive assets digital service platform "Jiexingchejia" reached RMB 2.6 billion in the first half of 2024[110] - The number of registered enterprises on the Suixin Cloud Chain Platform reached approximately 5,000, with nearly 1,000 new enterprises joining in the first half of 2024, representing a year-on-year increase of 136%[113] - The foreign card business has expanded to 20 provinces, municipalities, and autonomous regions, including Beijing, Jiangsu, Guangdong, Hunan, and Hubei[112] - The company has qualified as a member of and directly connected with three leading international payment card services organizations: VISA, Mastercard, and American Express[112] - The company's digital management product "Diansansan" has been deployed to dozens of sizable chain convenience stores and supermarkets, improving operational efficiency and sales capacity[110] - The company continues to explore opportunities in new regions, new businesses, and new platforms for its cross-border business[112] - The company has optimized the differentiated structure of industry customers and raised the proportion of high-margin business types and scales[112] - The company has gained access to payment collection channels from South America, Brazil, and Southeast Asia, enhancing its differentiated pipeline service capabilities[112] - Suixin Cloud Chain Platform registered nearly 5,000 enterprises, with nearly 1,000 new additions in the first half of 2024, a year-on

Financial Performance - Revenue for the first half of 2024 was HKD 1,176,888, a decrease of 10% compared to HKD 1,310,613 in the same period of 2023[1] - Gross profit for the first half of 2024 was HKD 413,836, down 13% from HKD 476,332 in 2023[1] - Operating profit attributable to joint ventures decreased by 36% to HKD 141,385 from HKD 220,380 year-on-year[1] - Adjusted net profit fell by 53% to HKD 164,011, compared to HKD 349,414 in the previous year[1] - Net profit for the period was HKD 23,415, a significant decline of 93% from HKD 357,007 in 2023[1] - Basic earnings per share for the first half of 2024 was HKD 0.001, down 99% from HKD 0.115 in the same period last year[2] - The company reported a total comprehensive loss of HKD 111,619 for the period, compared to a total comprehensive income of HKD 26,515 in the previous year[4] - The EBITDA for the group, excluding fair value gains on financial assets, was HKD 75,379,000 for the first half of 2024, compared to HKD 168,465,000 in the same period of 2023, indicating a significant decrease of about 55%[19] - The group reported a net profit of HKD 23,415,000 for the six months ended June 30, 2024, compared to HKD 357,007,000 for the same period in 2023, marking a decrease of around 93%[19] Assets and Liabilities - Total assets decreased by 7% to HKD 12,147,823 from HKD 13,031,718 as of December 31, 2023[2] - Total liabilities amounted to HKD 5,253,700,000 as of June 30, 2024, compared to HKD 4,481,707,000, reflecting an increase of 17.3%[6] - The total equity and liabilities amounted to HKD 13,031,718,000, an increase from HKD 12,147,823,000, representing a growth of 7.3%[6] - The total assets of the group as of June 30, 2024, amounted to HKD 12,147,823,000, while total liabilities were HKD 4,481,707,000, resulting in a net asset position[20] - The company’s cash and cash equivalents decreased to HKD 3,010,791,000 as of June 30, 2024, from HKD 3,591,920,000 as of December 31, 2023[52] - The company’s total equity as of June 30, 2024, was HKD 7,666,116,000, compared to HKD 7,778,018,000 at the end of 2023[61] Segment Performance - The company operates in four main segments: payment and digital services, fintech services, platform operation solutions, and financial solutions[15] - The revenue from the payment and digital services segment was HKD 892,230,000, a decline of 13% from HKD 1,023,502,000 in the first half of 2023[64] - The revenue from the fintech services segment dropped 62% to HKD 43,904,000 from HKD 115,660,000 in the first half of 2023[65] - The operating loss for the fintech services segment was HKD 20,536,000, compared to a profit of HKD 55,574,000 in the same period last year[65] - The revenue from platform operation solutions was HKD 57,057,000, a decrease of 5% from HKD 59,918,000 in the first half of 2023[66] - The revenue from financial solutions increased by 5% to HKD 99,810,000 from HKD 94,858,000 in the previous year[67] Investments and Impairments - The group reported a significant impairment loss of HKD 140,865,000 on an investment in an associate during the first half of 2024[19] - The fair value of financial assets recorded a loss of HKD 2,165,000 for non-listed investment funds during the reporting period[14] - The recoverable amount of the investment in Zhaoxun Hengtai was approximately HKD 342,597,000, leading to an impairment loss of HKD 140,865,000 recognized in the income statement for the period[43] - The investment in associates as of June 30, 2024, was HKD 3,459,550 thousand, a decrease from HKD 3,606,250 thousand as of December 31, 2023[39] Employee and Operational Costs - Employee benefits expenses increased to HKD 454,638,000 for the six months ended June 30, 2024, compared to HKD 424,363,000 in the same period last year, reflecting a growth of approximately 7.5%[23] - Research and development costs, including employee costs, rose to HKD 165,965,000, up from HKD 133,553,000, indicating a year-on-year increase of about 24.2%[23] - The group incurred financing costs of HKD 924,000 for the first half of 2024, compared to HKD 2,179,000 in the same period of 2023, showing a reduction of approximately 58%[19] Future Outlook and Strategic Plans - The company anticipates a challenging economic environment in the second half of 2024, despite a stable domestic economy and improving external demand[90] - The company remains optimistic about the recovery of the national economy, despite facing numerous challenges in the domestic market[90] - The company is actively exploring market expansion in the Middle East and Africa, with plans to sign new clients in these regions[96] - The company has adopted a stock incentive plan aimed at enhancing employee alignment with shareholder interests, potentially reducing its stake in Shenzhen Gaoyang from 50.91% to approximately 42.75%[87] Shareholder Information - No dividends were declared or paid for the six months ended June 30, 2024, consistent with the previous year[28] - The company did not purchase, sell, or redeem any of its shares during the period[106] - The audit committee reviewed the unaudited interim consolidated results for the six months ending June 30, 2024[108]

Financial Performance - The consolidated turnover from continuing operations in 2023 was HK$2,709.2 million, a 21% decrease compared to 2022, primarily due to a decline in the payment and digital services segment[19][20] - Consolidated turnover for 2023 decreased by 21% to HK$2,709.2 million compared to HK$3,432.7 million in 2022[71] - Profit for 2023 totaled HK$514.4 million, a significant decrease from HK$1,114.6 million in 2022[71] - Total revenue decreased to HK$2,709,164 thousand in 2023 from HK$3,432,728 thousand in 2022, a decline of 21.1%[123] - EBITDA decreased to HK$300,875 thousand in 2023 from HK$640,002 thousand in 2022, a decline of 53.0%[123] - Operating profit decreased to HK$74,545 thousand in 2023 from HK$378,061 thousand in 2022, a decline of 80.3%[123] - Profit from continuing operations decreased to HK$514,374 thousand in 2023 from HK$605,037 thousand in 2022, a decline of 15.0%[126] - Basic earnings per share decreased to HK$0.169 in 2023 from HK$0.340 in 2022, a decline of 50.3%[129] - Diluted earnings per share decreased to HK$0.133 in 2023 from HK$0.313 in 2022, a decline of 57.5%[129] Segment Performance - The company's segmental turnover in 2023 was HK$198.3 million, a 13% decrease from HK$228.7 million in 2022, while segmental operating profit increased to HK$43.0 million from HK$14.8 million in 2022, primarily due to reduced credit impairment losses[22] - Platform operation solutions segment turnover decreased by 2% to HK$166.0 million in 2023 from HK$169.5 million in 2022[32] - Platform operation solutions segment operating loss improved to HK$19.5 million in 2023 from HK$24.6 million in 2022, primarily due to fair value loss on financial assets of HK$8.2 million[32] - Financial solutions segment turnover decreased by 12% to HK$304.6 million in 2023 from HK$346.1 million in 2022[40] - Financial solutions segment operating loss increased to HK$19.9 million in 2023 from HK$7.4 million in 2022, mainly due to upfront costs on various projects[41] - Other business operations segment turnover increased to HK$46.8 million in 2023 from HK$36.5 million in 2022, contributing 1.7% of total consolidated turnover[43] - Other business operations segment operating loss improved to HK$27.2 million in 2023 from HK$67.0 million in 2022[43] - Segmental turnover for payment and digital services decreased by 25% to HK$1,993.4 million in 2023 from HK$2,652.0 million in 2022[87] - Segmental operating profit for payment and digital services dropped by 64% to HK$196.5 million in 2023[87] - EBITDA for payment and digital services decreased by 57% to HK$297.2 million in 2023 from HK$695.2 million in 2022[87] - Payment and digital services segment revenue decreased to HK$1,994,129 thousand in 2023 from HK$2,655,820 thousand in 2022, a decline of 24.9%[123] - Fintech services segment revenue decreased to HK$200,473 thousand in 2023 from HK$229,917 thousand in 2022, a decline of 12.8%[123] - Platform operation solutions segment revenue decreased to HK$166,856 thousand in 2023 from HK$169,483 thousand in 2022, a decline of 1.5%[123] - Financial solutions segment revenue decreased to HK$325,437 thousand in 2023 from HK$346,068 thousand in 2022, a decline of 6.0%[123] Operating Expenses and Costs - Operating expenses increased in 2023, mainly due to higher research and development costs and staff costs, including a share award scheme of approximately HK$15.0 million, partially offset by reduced depreciation expenses[21] - The company's cost of sales decreased significantly in 2023, primarily due to a decline in total turnover, especially in the payment and digital services segment[21] - The company's credit impairment loss in 2023 was primarily due to impairment losses on aged loan receivable balances under the fintech services segment[21] Investments and Assets - The company holds 364,000,000 ordinary shares in PAX Global Technology Limited, representing a 34.0% effective interest with a fair value of approximately HK$2,202.2 million as of December 31, 2023[25] - The company's investment in PAX Global Technology Limited accounted for 23.4% of the group's total audited assets as of December 31, 2023, with an investment cost of HK$259.8 million[25] - Total assets as of 31 December 2023 increased to HK$13,031.7 million from HK$11,455.3 million in 2022[87] - Net current assets as of 31 December 2023 were HK$3,958.4 million, up from HK$3,689.9 million in 2022[87] - The Group holds 364,000,000 ordinary shares of PAX Global, representing a 34.0% effective interest with a fair value of approximately HK$2,202.2 million as of 31 December 2023[194] - The carrying value of the Group's interest in PAX Global was HK$3,046.0 million, representing approximately 23.4% of the Group's audited total assets as of 31 December 2023[194] - The cost of investment in PAX Global as of 31 December 2023 was HK$259.8 million[194] Share Schemes and Awards - A total of 31,995,000 shares were issued under the awards with a fair value of approximately $15,038,000 as of the grant date[93] - The New VBill (Cayman) Share Option Scheme was adopted on 12 June 2023 and will remain valid for 10 years until 11 June 2033[98] - As of 31 December 2023, 800 VBill (Cayman) shares were available for issue under the New VBill (Cayman) Share Option Scheme, representing 10% of the total issued shares[110] - The 2020 VBill (Cayman) Share Option Scheme was terminated effective 12 June 2023 upon adoption of the New VBill (Cayman) Share Option Scheme[95] - Participants of the New VBill (Cayman) Share Option Scheme include directors and employees of the VBill (Cayman) Group and its holding companies, fellow subsidiaries, or associated companies[98] - The exercise price of options under the New VBill (Cayman) Share Option Scheme must not be less than the highest of the closing price on the grant date, the average closing price for the five preceding trading days, or the nominal value of a share[119] - No options were granted, vested, exercised, canceled, or lapsed under the New VBill (Cayman) Share Option Scheme during the year ended 31 December 2023[110] - The 2021 Share Option Scheme was terminated on 12 June 2023 and replaced by the New Share Option Scheme[106] - The number of shares issued upon exercise of options granted to any grantee in a 12-month period must not exceed 1% of the total issued shares, with a reduced limit of 0.1% and HK$5 million for substantial shareholders or independent non-executive directors[114] - There is no minimum holding period required before exercising options under the New VBill (Cayman) Share Option Scheme[115] - 227,683,383 options were available for grant as at the adoption of the scheme on 12 June 2023 and 31 December 2023, representing 10% of the total number of Shares in issue[135] - 31,995,000 awards were granted under the share schemes of the Company during the year ended 31 December 2023, representing 1.15% of the Shares in issue[147] - 245,688,383 Shares were available for issue under the share award scheme as at the date of the annual report, representing approximately 8.85% of the total number of Shares in issue[153] - No options were granted, vested, exercised, cancelled, or lapsed under the 2020 VBill (Cayman) Share Option Scheme during the year ended 31 December 2023[156] - The vesting period for any option granted shall not be less than 12 months, but the Remuneration Committee or Directors may determine a shorter period if deemed appropriate[177][192] - The exercise period of the options granted should be within 10 years from the date of grant[179][182] - The subscription price for VBill (Cayman) Shares shall be determined by the board of directors but not less than the nominal value of a share[184][185] - The VBill OPCO Share Option Scheme expired on 6 February 2024, with no further options to be granted[187] - The exercise period for VBill OPCO options should be within 6 years from the date of grant[187] - Each participant must pay a nominal consideration of RMB1 to VBill OPCO within 7 days after the grant of options[187] - The subscription price for VBill OPCO options shall not be less than the net asset value of the relevant equity[187] - The exercise price for options should not be less than the highest of: (i) the closing price on the grant date, (ii) the average closing price of the five trading days preceding the grant date, or (iii) the nominal value of the shares[189] Employee and Staff Information - The company's total number of employees as of December 31, 2023, was 2,638[6] - The total number of employees of the Group as at 31 December 2023 was 2,638, with 1,002 in Payment and digital services, 126 in Fintech services, 726 in Platform operation solutions, 544 in Financial solutions, 198 in Others, and 42 in Corporate office[149] Other Income and Expenses - The company's other income in 2023 mainly consisted of interest income and government grants[21] - The company completed the repurchase of VBill shares for approximately $109.3 million in February 2023[67] - The company did not recognize any liability related to the 2021 Manufacturer Guarantee Agreement as of 31 December 2023[76] - The Company entered into a guarantee agreement in 2020 to repay up to US$10 million (equivalent to approximately HK$78 million) owed to an OEM, but no liability was recognized as at 31 December 2023[142] Strategic and Market Developments - The decrease in segmental turnover and operating profit is primarily attributable to the replacement of traditional payment market by digital payments, which have lower handling fee rates[58] - The company is actively expanding its management service products, platforms, and cross-border business despite short-term pressure during digital transformation[58] - Megahunt, an associated company, submitted an application for listing on the SSE STAR Market in June 2023[44] - PAX Global remains at the forefront of payment terminal technology, benefiting from global cashless initiatives and consumer preference for convenient payment options[54] - The Group is optimistic about the future prospects of its associated companies, including PAX Global and Megahunt Technologies Inc.[193] Financial Reporting and Measures - The Company uses non-GAAP measures such as EBITDA to assess performance, providing consistency in financial reporting[151] - The Directors do not recommend the payment of dividend for the year 2022[169] Business Operations - The principal activities of the Group are the provision of payment and digital services, fintech services, platform operation solutions, and financial solutions[159] - PAX Global is primarily engaged in the development and sales of electronic payment point-of-sale terminals and related services[195] Restricted Bank Balances and Cash Equivalents - The company's restricted bank balances and cash equivalents as of December 31, 2022, were denominated in various currencies: RMB (HK$2,693.6 million), HKD (HK$681.7 million), USD (HK$1,125.4 million), EUR (HK$71.5 million), GBP (HK$18.5 million), SGD (HK$5.3 million), and JPY (HK$6.4 million)[1][2]

HI SUN TECHNOLOGY (CHINA) LIMITED 高陽科 技（中 國）有限公 司 * （於百慕達註冊成立之有限公 司） （股份代 號：818） | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------|----------------------------------------|-------------------------------------------|---------------------| | | 二零二三年 千港元 | 二零二二年 千港元 | 變動 +/(-) | | 業績 持續經營業務 收入 毛利 分類 EBITDA # （扣除未分配項目前） 經營溢利 | 2,709,164 992,177 300,875 74,545 | 3,432,728 1,283,582 640,002 378,061 | –21% –23% –53% –80% | | 應佔聯營公司之業績 | 402, ...

5 財務風險管理及金融工具 Notes to Interim Condensed Consolidated Financial Information 中期簡明綜合財務資料附註 Notes to Interim Condensed Consolidated Financial Information 中期簡明綜合財務資料附註 5.2 Fair value estimation (Continued) The following table presents the Group's financial liability that were measured at fair values at 31 December 2022. 第一級及第二級公平值之間的轉撥 Notes to Interim Condensed Consolidated Financial Information 中期簡明綜合財務資料附註 51 | --- | --- | --- | |------------------------------------------------------------------------------- ...

Financial Performance - Basic earnings per share for the first half of 2023 was HKD 0.115, a decrease of 55% compared to HKD 0.256 in the same period of 2022[2] - Revenue from continuing operations for the first half of 2023 was HKD 1,310,613, down 25% from HKD 1,742,494 in the first half of 2022[6] - The adjusted net profit for the first half of 2023 was HKD 349,414, a decrease of 12% from HKD 395,343 in the same period of 2022[6] - The company reported a total profit of HKD 357,007 for the first half of 2023, down 57% from HKD 824,564 in the same period of 2022[6] - The net profit attributable to the owners of the company was HKD 316,301, a decrease of 55% compared to HKD 710,401 in the first half of 2022[6] - The gross profit for the same period was HKD 476,332, down 21% from HKD 602,867 in 2022[28] - Operating profit decreased to HKD 69,735 from HKD 201,163, reflecting a decline of 65.3% year-over-year[28] - The total profit for the period was HKD 357,007, down from HKD 824,564 in the previous year, indicating a decline of 56.7%[31] - The company reported a net loss from foreign exchange differences of HKD 139,016 for the period[31] - The company recorded a total comprehensive income of HKD 26,515 for the first half of 2023, down from HKD 198,520 in the same period of 2022[173] Assets and Liabilities - Total equity as of June 30, 2023, was HKD 7,580,130, reflecting a 1% increase from HKD 7,554,282 at the end of 2022[2] - The total assets as of June 30, 2023, amounted to HKD 10,389,172, a decline of 9% from HKD 11,455,311 at the end of 2022[2] - The total liabilities as of June 30, 2023, were HKD 2,809,042, down from HKD 3,901,029 at the end of 2022[12] - The company’s total assets as of June 30, 2023, were approximately HKD 239,345,000, down from HKD 331,143,000 as of December 31, 2022, indicating a decrease of about 27.7%[150] - The company’s total liabilities decreased from HKD 2,807,871,000 as of December 31, 2022, to HKD 2,067,634,000 as of June 30, 2023[109] Cash Flow and Investments - The company achieved a net cash inflow from operating activities of HKD 736,522,000 for the period[174] - The company reported a net cash inflow of HKD 34,766,000 from operating activities during the terminated operations period[166] - The company’s investment in joint ventures as of June 30, 2023, was HKD 3,512,246 thousand, an increase from HKD 3,399,895 thousand at the end of 2022, representing a growth of about 3.3%[200] Taxation - The company recorded a tax credit of HKD 66,018,000 for continuing operations, compared to a tax expense of HKD 94,605,000 in the prior year, reflecting a significant turnaround[52][74] - The company reported a tax credit of HKD 66,018 for the first half of 2023, compared to a tax expense of HKD 81,402 in the same period of 2022[199] Employee and Operational Costs - Employee benefits expenses rose to HKD 424,363,000, compared to HKD 365,546,000 in the previous year, which is an increase of 16%[6] - Research and development costs, including employee costs, amounted to HKD 133,553,000 for the six months ended June 30, 2023, up from HKD 112,816,000 in the previous year, indicating an 18% increase[6] Future Outlook and Strategy - The company continues to focus on its fintech services, which include microloans, supply chain financing, and credit assessment services[23] - The company plans to continue focusing on digital payment solutions and financial technology services to drive future growth[42] - The company plans to issue asset-backed securities with a maximum issuance scale of RMB 1,000,000,000 (approximately HKD 1,230,000,000) by December 31, 2023[150] Shareholder Information - The company did not declare or pay any dividends for the six months ended June 30, 2023, consistent with the previous year[79] - The company had three classes of potential dilutive shares for the six months ended June 30, 2023, down from four classes in the same period of 2022[85] Miscellaneous - The company has not made any significant changes to its accounting policies or made retrospective adjustments due to the adoption of revised standards[19] - There were no significant impacts expected from new accounting standards that have been issued but not yet adopted[20]

In December 2021, Mega Hunt Mircroelectronics Limited, a wholly-owned indirect subsidiary of the Company, entered into agreements to dispose of an aggregate of approximately 20% interest in Megahunt Technologies Inc. ("Megahunt") at an aggregate consideration of approximately RMB208.7 million (equivalent to approximately HK$254.6 million) (the "Disposal"). In May 2022, the Disposal completed and the Company's interest in Megahunt decreased from approximately 65.73% to 45.73%, subsequent to which Megahunt ha ...