| (03004) | | | | | --- | --- | --- | --- | | 江苏宁沪高速公路 | 10.440 | 10.520 | 0.57% | | (00177) | | | | | 嘉里建设(00683) | 18.880 | 19.360 | 0.57% | | 万洲国际(00288) | 7.280 | 7.350 | 0.55% | | 港灯－ＳＳ(02638) | 5.720 | 5.780 | 0.52% | | 富邦沪深港高股息 | 14.460 | 14.490 | 0.49% | | (03190) | | | | | ＧＸ０３月债－Ｕ | 7.040 | 7.040 | 0.43% | | (09440) | | | | | 农业银行(01288) | 5.150 | 5.160 | 0.39% | | 中国财险(02328) | 15.560 | 15.560 | 0.39% | | 恒隆集团(00010) | 11.360 | 11.380 | 0.35% | | 贤能集团(01730) | 3.020 | 3.020 | 0.33% | | 粤港湾控股(0139 ...

| 朝云集团(06601) | 558.91 | 0.87 | 1 | | --- | --- | --- | --- | | 招商银行(03968) | 90208.86 | 0.84 | 1 | | 新天绿色能源(00956) | 3408.94 | 0.81 | 3 | | 新吉奥房车(00805) | 519.87 | 0.79 | 2 | | 赢家时尚(03709) | 881.37 | 0.78 | 1 | | 耀才证券金融(01428) | 142664.51 | 0.78 | 1 | | 粤港湾控股(01396) | 829.66 | 0.76 | 5 | | 同源康医药-B(02410) | 8492.89 | 0.73 | 2 | | 长飞光纤光缆(06869) | 12912.22 | 0.70 | 1 | | 国美零售(00493) | 297.49 | 0.70 | 1 | | 中远海运港口(01199) | 3644.33 | 0.68 | 6 | | 亨利加集团(03638) | 165.42 | 0.60 | 4 | | 茂盛控股(00022) | 512.32 | 0.59 ...

Financial Performance - The company reported a consolidated income of $202 million for the fiscal year, representing a 15% increase compared to the previous year[106]. - The Group's consolidated turnover for FY2024 was HK$2,340.0 million, a decrease of 14% from HK$2,709.2 million in FY2023[41]. - Profit for FY2024 totaled HK$176.6 million, down from HK$514.4 million in FY2023[41]. - Total revenue for 2024 decreased to HK$2,340,040,000 from HK$2,709,164,000 in 2023, representing a decline of approximately 13.7%[178]. - Gross profit for 2024 was HK$908,802,000, down from HK$992,177,000 in 2023, indicating a decrease of about 8.4%[178]. - EBITDA for 2024 was HK$172,840,000, compared to HK$300,875,000 in 2023, reflecting a decline of approximately 42.5%[175]. - Profit for the year 2024 was HK$176,554,000, down from HK$514,374,000 in 2023, representing a decline of approximately 65.7%[178]. - Earnings per share for 2024 were HK$0.057, compared to HK$0.169 in 2023, a decrease of about 66.3%[178]. - The company reported a share of results from associated companies of HK$213,160,000 in 2024, down from HK$402,949,000 in 2023, indicating a decline of approximately 47%[178]. User Growth and Market Expansion - User data showed a growth of 25% in active users, reaching a total of 1.5 million users by the end of the fiscal year[106]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[106]. - Digital payment volume grew by over 35% year-on-year in 2024, while cross-border transaction volume increased by more than 70%[44]. Revenue Guidance and Future Projections - The company has provided a revenue guidance of $250 million for the next fiscal year, indicating a projected growth of 23%[106]. - New product launches are expected to contribute an additional $30 million in revenue, with a focus on enhancing user experience and technology integration[106]. - The Group remains optimistic about national economic recovery despite challenges expected in 2025[43]. - Management will focus on financial and operational disciplines to seize growth opportunities in 2025[45]. Corporate Governance and Financial Reporting - The board of directors emphasized a commitment to corporate governance and transparency in financial reporting[79]. - The independent auditor's report confirmed the accuracy of the financial statements, reinforcing stakeholder confidence[98]. Operational Challenges and Strategic Changes - The decline in operating profit was mainly due to reduced interest income and operating profit in the fintech services segment[44]. - The Group ceased its electronic power meters and solutions business to streamline operations and improve overall financial performance[40]. - The handling fee rate for digital payments is lower than traditional payments during its expansion stage, impacting revenue[44]. - The decline in revenue and operating profit was attributed to the transition from traditional payment methods to digital payments, which have lower handling fees[189]. - The company is actively expanding its management service products and platforms, as well as cross-border business, despite short-term pressures during the digital transformation[189]. Financial Position and Assets - As of December 31, 2024, the Group reported total assets of HK$11,858.8 million, down from HK$13,031.7 million in 2023, while total liabilities decreased to HK$4,135.9 million from HK$5,253.7 million[51]. - The net cash position as of December 31, 2024, was HK$3,371.7 million, compared to HK$3,439.3 million in 2023[52]. - The gearing ratio increased to 1.5% in 2024 from 1.1% in 2023, indicating a healthy capital structure suitable for ongoing business growth[52]. - The Group had restricted bank balances of HK$2,593.9 million and cash and cash equivalents of HK$3,011.3 million as of December 31, 2024[52]. Employee and Shareholder Information - The Group's principal activities include providing payment and digital services, fintech services, platform operation solutions, and financial solutions[81]. - The Group operates a Share Option Scheme and a Share Award Scheme to incentivize and retain employees, with the Share Option Scheme adopted on June 12, 2023[94]. - The Company does not recommend the payment of dividends for the year ended December 31, 2024, consistent with the previous year[82]. - The Group's performance analysis by business and geographical segments is detailed in the consolidated financial statements[81]. Share Option and Incentive Schemes - No options were granted, vested, exercised, cancelled, or lapsed during the year ended 31 December 2024, with 227,683,383 options available for grant as of 1 January 2024 and 31 December 2024, representing 10% of the total number of Shares in issue[104]. - The Share Award Scheme will remain valid and effective for a period of 10 years from 29 June 2021 until 29 June 2031[105]. - The total number of Shares that may be issued under the Share Award Scheme shall not exceed 1.5% of the issued Shares as of the Adoption Date[108]. - The exercise price of an option shall not be less than the higher of the closing price of the Shares on the date of grant or the average closing price of the Shares for the five trading days immediately preceding the date of grant[100]. - The scheme for share options will remain valid and effective for a period of 10 years until 11 June 2033[117].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 2,340,040,000, a decrease of 14% compared to HKD 2,709,164,000 in 2023[2] - Gross profit decreased by 8% to HKD 908,802,000 from HKD 992,177,000[2] - Adjusted net profit fell by 54% to HKD 233,439,000 from HKD 512,670,000[2] - Basic earnings per share decreased by 66% to HKD 0.057 from HKD 0.169[3] - Net profit for the year was HKD 176,554,000, down from HKD 514,374,000 in the previous year, representing a decline of approximately 66%[17] - EBITDA for the fiscal year was HKD 172,840,000, compared to HKD 300,875,000 in 2023, reflecting a decrease of 43%[15] - The consolidated revenue for the year 2024 was HKD 2,340,000,000, a decrease of 14% compared to 2023, primarily due to declines in payment and digital service revenues[30] - The group reported a net profit of HKD 176,554,000 for the year ended December 31, 2024, compared to HKD 514,374,000 for the year ended December 31, 2023, reflecting a significant decline of 65.7%[90][92] Assets and Liabilities - Total assets decreased by 9% to HKD 11,858,778,000 from HKD 13,031,718,000[3] - Total liabilities decreased to HKD 4,135,902,000 from HKD 5,253,700,000, indicating a reduction of approximately 21.2%[18] - Total liabilities decreased to HKD 3,976,415,000 in 2024 from HKD 5,121,080,000 in 2023, with accounts payable dropping significantly[47] - The total assets as of December 31, 2024, were HKD 11,858,778,000, down from HKD 13,031,718,000 in 2023[18] Cash and Equivalents - Cash and cash equivalents were HKD 3,011,300,000, down from HKD 3,482,000,000 in 2023[6] - Total cash and cash equivalents, including restricted bank balances, decreased to HKD 5,605,195,000 in 2024 from HKD 7,024,334,000 in 2023[45] - Cash and cash equivalents decreased to HKD 3,011,282,000 from HKD 3,482,016,000, a reduction of approximately 13.5%[19] Segment Performance - The payment and digital services segment reported revenue of HKD 1,749,898,000, a decline of 12% from HKD 1,994,129,000 in 2023[22] - The company reported a net loss of HKD 20,631,000 in the fintech services segment, compared to a profit of HKD 47,748,000 in 2023[15] - The financial technology services segment reported revenue of HKD 87,800,000 for 2024, down 56% from HKD 198,300,000 in 2023, attributed to a decrease in loan volumes[24] - The platform operation solutions segment generated revenue of HKD 145,300,000 in 2024, a 12% decline from HKD 166,000,000 in 2023, with an operating loss of HKD 20,900,000[25] - The financial solutions segment achieved revenue of HKD 273,900,000 in 2024, down 10% from HKD 304,600,000 in 2023, but turned an operating profit of HKD 9,200,000 compared to a loss in the previous year[26] Employee and Operational Metrics - The total number of employees as of December 31, 2024, was 2,411[13] - Total employee benefits expenses, including director remuneration, remained stable at HKD 946,907,000 compared to HKD 945,914,000, showing a slight increase of 0.1%[96] Investments and Acquisitions - The company had no major acquisitions or disposals of subsidiaries during the year[10] - The company holds a 34.3% equity interest in PAX Global Technology Limited, valued at approximately HKD 1,954,700,000, which is below its book value[37] - The company reduced its equity interest in Dian San San from 70% to 49% through an investment agreement, resulting in Dian San San no longer being a subsidiary[144] Research and Development - The group is progressing well with various R&D projects, focusing on cost reduction across its product lines[41] - Research and development costs increased from HKD 303,079,000 to HKD 345,677,000, representing a growth of about 14%[96] Market Outlook and Strategy - The company is actively expanding its management services, platforms, and cross-border business despite short-term pressures during the digital transformation phase[23] - The company anticipates stable development in the information security chip market in 2025, despite potential policy impacts from the payment market[41] - The company plans to continue its digital payment strategy, with digital payment volume expected to grow over 30% year-on-year in 2024[58] Governance and Compliance - The company has adopted corporate governance practices in accordance with the principles and code provisions set out in the Listing Rules Appendix C1, ensuring compliance for the fiscal year ending December 31, 2024[154] - The audit committee has reviewed the accounting policies adopted by the group and the audited consolidated financial statements for the year ending December 31, 2024[156] Shareholder Information - The company did not declare or pay any dividends for the year ended December 31, 2024, consistent with 2023[109] - The company repurchased a total of 10,388,000 ordinary shares in 2024, compared to 13,759,000 shares in 2023, with 10,388,000 shares subsequently canceled within the year[122]

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]

Financial Performance - For the year ended December 31, 2023, the company reported revenue of HKD 2,709,164,000, a decrease of 21% compared to HKD 3,432,728,000 in 2022[1] - The gross profit for 2023 was HKD 992,177,000, down 23% from HKD 1,283,582,000 in the previous year[1] - Adjusted net profit decreased by 26% to HKD 512,670,000 from HKD 694,756,000 in 2022[1] - The company recorded a net profit of HKD 514,374,000, representing a 54% decline from HKD 1,114,614,000 in 2022[1] - Total revenue for the year ended December 31, 2023, was HKD 2,733,682,000, a decrease of HKD 24,518,000 compared to 2022[70] - EBITDA for the group was HKD 300,875,000 for the year ended December 31, 2023, reflecting a decrease from the previous year[70] - The group reported a diluted earnings per share of HKD 0.133 for continuing operations, down from HKD 0.142 in 2022[81] - The company reported a total of HKD 5,121,080,000 in receivables as of December 31, 2023, compared to HKD 2,575,967,000 in 2022[95] - The company reported a total payable amount of HKD 5,121.08 million in 2023, a substantial increase from HKD 2,575.97 million in 2022[1] Assets and Liabilities - The total assets increased by 14% to HKD 13,031,718,000 compared to HKD 11,455,311,000 in the previous year[15] - The total equity rose by 3% to HKD 7,778,018,000 from HKD 7,554,282,000 in 2022[15] - The company maintained a low debt-to-capital ratio of 1.1%, significantly down from 13.8% in 2022, indicating a strong financial position[4] - The company’s total liabilities increased to HKD 5,121,080,000 in 2023 from HKD 2,575,967,000 in 2022, reflecting growth in operational scale[120] Cash Flow and Investments - Cash and cash equivalents were reported at HKD 3,482,000,000, slightly down from HKD 3,537,500,000 in 2022[4] - The company’s cash inflow from operating activities was HKD 34,766,000, indicating positive cash generation from core operations[145] - The company completed the sale of a subsidiary for a total consideration of HKD 676,494,000, enhancing its liquidity position[129] - The company recognized revenue of HKD 40,177,000 from contract liabilities at the beginning of the year, down from HKD 68,939,000 in 2022, reflecting a decrease in deferred revenue[123] Research and Development - The group incurred research and development costs of HKD 303,079,000, an increase from HKD 251,422,000 in the previous year[48] Corporate Governance - The company has adopted a written code for securities trading by directors and senior management, which is not less stringent than the standards set out in the listing rules[150] - The company has implemented corporate governance practices in accordance with applicable code provisions for the year ended December 31, 2023[149] Market Outlook - The company remains optimistic about the market demand for its payment terminals and is prepared to seize significant opportunities in the global payment industry[196] Discontinued Operations - The profit from discontinued operations after tax was HKD 80,238,000, while the gain from the sale of a subsidiary amounted to HKD 429,339,000[164] - The total comprehensive income from discontinued operations was HKD 491,996,000[165] Accounting and Compliance - The group is evaluating the impact of adopting new accounting standards and interpretations on future reporting periods[38] - The company’s auditor confirmed that the figures in the preliminary announcement are consistent with the audited consolidated financial statements for the year ended December 31, 2023[153]

Financial Position - As of June 30, 2023, the total assets of the Group were HK$10,389,200,000, down from HK$11,455,300,000 as of December 31, 2022[21] - The total liabilities decreased to HK$2,809,000,000 from HK$3,901,000,000 as of December 31, 2022[21] - The total equity increased slightly to HK$7,580,100,000 from HK$7,554,300,000 as of December 31, 2022[21] - The net asset value per share was HK$2.730 as of June 30, 2023, compared to HK$2.720 as of December 31, 2022[21] - The net cash position as of June 30, 2023, was HK$3,176.5 million, a decrease from HK$3,481.8 million as of December 31, 2022[46] - The gearing ratio improved to 3.6% as of June 30, 2023, down from 13.8% as of December 31, 2022, indicating a healthier capital structure[46] - The Group had restricted bank balances of HK$1,160.7 million as of June 30, 2023, compared to HK$1,064.9 million as of December 31, 2022[46] - Cash and cash equivalents decreased to HK$3,177.6 million as of June 30, 2023, from HK$3,537.5 million as of December 31, 2022[46] - As of June 30, 2023, the Group had bank borrowings of HK$1.1 million, a significant decrease from HK$55.7 million as of December 31, 2022[47] - The Group's banking facilities amounted to approximately HK$185.2 million as of June 30, 2023, down from HK$284.0 million as of December 31, 2022[47] - The Group's restricted bank balances and cash equivalents totaled approximately HK$3,289.5 million as of June 30, 2023, compared to HK$2,693.6 million as of December 31, 2022[51] - The balance of advances from business channel partners was HK$405.0 million as of June 30, 2023, compared to HK$426.3 million as of December 31, 2022[55] - Trade receivables increased to HK$202.5 million as of 30 June 2023, up from HK$182.0 million as of 31 December 2022[152] - The Group's total trade payables amounted to HK$2,481.6 million as of June 30, 2023, a decrease from HK$2,575.9 million as of December 31, 2022[184] Revenue and Profitability - Total revenue for 1H2023 was HK$1,310,613, a decrease of 25% compared to HK$1,742,494 in 1H2022[90] - EBITDA for 1H2023 was HK$175,405, down 55% from HK$389,627 in 1H2022[85] - Operating profit decreased by 65% to HK$69,735 in 1H2023 from HK$201,163 in 1H2022[90] - Profit from continuing operations for 1H2023 was HK$357,007, compared to HK$314,987 in 1H2022, showing an increase of 13.4%[93] - Basic earnings per share for 1H2023 was HK$0.115, up from HK$0.085 in 1H2022[76] - The company reported a profit attributable to owners of HK$316,301 for 1H2023, down from HK$710,401 in 1H2022[94] - The company's profit for the period in 1H2023 was HK$357 million, a decrease of 57% compared to HK$825 million in 1H2022[104] - Total comprehensive income for the period attributable to owners of the company was HK$12.8 million, down 90% from HK$131.6 million in 1H2022[104] - Segmental turnover from external customers decreased by 29% to HK$1,023.5 million in 1H2023 from HK$1,448.8 million in 1H2022[106] - Segmental operating profit fell by 64% to HK$113.7 million in 1H2023 compared to HK$313.7 million in 1H2022[106] - The consolidated turnover for Hi Sun Technology (China) Limited in 1H2023 was HK$1,310.6 million, representing a decrease of 25% compared to HK$1,743.2 million in 1H2022[125] - The digital services business is in an expansion stage, with lower handling fees impacting revenue during the transition from traditional to digital payments[128] - The turnover from other business operations, including electronic power meters, contributed approximately 1.3% of the total consolidated turnover from continuing operations[135] - The financial solutions segment reported a turnover of HK$60.0 million in 1H2023, down from HK$62.0 million in 1H2022, but with a reduced operating loss of HK$16.1 million compared to HK$24.7 million in the prior period[134] Investment and Financial Instruments - The Group recognized a fair value gain of HK$4,339,000 on financial assets at fair value through profit or loss for the six months ended June 30, 2023[7] - The Group's financial liability related to written put options was derecognized, resulting in a reclassification to a derivative financial liability at fair value through profit or loss[17] - The first phase of the ABS Scheme had an issue size of RMB309 million (approximately HK$380.1 million) established on January 27, 2022[22] - The second phase of the ABS Scheme had an issue size of RMB362 million (approximately HK$419.9 million) established on May 20, 2022[22] - The third phase of the ABS Scheme had an issue size of RMB303 million (approximately HK$339.4 million) established on December 30, 2022[22] - The proceeds from the ABS issuance are primarily used as general working capital for the fintech services segment, improving the financing structure of the Company[22] - The maximum issue size of the asset-backed securities scheme is RMB1,000 million (approximately HK$1,230 million), which can be issued in not more than 15 phases by December 31, 2023[57] - The Group's investment cost in associated companies as of 30 June 2023 was HK$127.8 million[148] - The fair value of equity securities listed in Hong Kong was HK$1.0 million as of 30 June 2023[148] - The Group remains optimistic about the future prospects of its associated companies and will continue to assess its investment strategy prudently[166] - The Group's interest in Megahunt was valued at HK$515.2 million, representing approximately 5.0% of the Group's total assets as of June 30, 2023[172] - As of June 30, 2023, the Group held approximately 33.85% effective interest in PAX Global, valued at approximately HK$2,162.2 million, with the recoverable amount exceeding the carrying value[188] - The interest in PAX Global represented approximately 28.6% of the Group's unaudited total assets as of June 30, 2023, with an investment cost of HK$259.8 million[188] Operational Performance - The segment of payment and digital services generated revenue of HK$1,023,799, a decline of 29% from HK$1,451,052 in 1H2022[90] - Financial solutions segment revenue was HK$94,858, down from HK$101,040 in 1H2022, reflecting a decrease of 6.5%[90] - The segment turnover for fintech services was HK$115.7 million in 1H2023, a slight decrease of 2% from HK$117.5 million in 1H2022, while EBITDA increased by 130% to HK$58.9 million[130] - The operating profit for fintech services rose to HK$55.6 million in 1H2023, up 155% from HK$21.8 million in 1H2022, reflecting improved operational efficiency[130] - The overall operating loss for the company was HK$16.1 million in 1H2023, improved from a loss of HK$24.7 million in 1H2022[111] - Operating expenses increased mainly due to higher staff costs during 1H2023[137] - The Group's employee count was 2,672 as of June 30, 2023[196] Taxation and Regulatory Matters - The income tax credit for the first half of 2023 was primarily due to a subsidiary qualifying as a Software and Integrated Circuit Enterprise, resulting in a 0% corporate income tax rate for two years[35] - The Group has not entered into any agreements to hedge exchange rate risks, which may impact operating results due to fluctuations in currencies such as the Hong Kong dollar and Renminbi[50] - There were no material acquisitions or disposals of subsidiaries, associates, and joint ventures during the six months ended June 30, 2023[48] - The Group did not have any specific plans for material investments or capital assets as of June 30, 2023[49] - As of June 30, 2023, the company has no specific plans for significant investments or capital assets[197]