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]

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]

Disposals and Investments - In December 2021, the Company disposed of approximately 20% interest in Megahunt Technologies Inc. for approximately RMB208.7 million (equivalent to approximately HK$254.6 million), reducing its interest from 65.73% to 45.73%[1]. - The disposal resulted in Megahunt ceasing to be a subsidiary and being accounted for as an associate of the Company[1]. - The Group sold approximately 20% equity in Zhaoxun Hengtai Technology Co., Ltd. for a total consideration of approximately RMB 208.7 million (approximately HK$254.6 million), reducing its stake from 65.73% to 45.73%[62]. - In January 2023, the Company submitted a new application for the possible spin-off and separate listing of Megahunt on the Science and Technology Innovation Board of the Shanghai Stock Exchange[2]. - A new application for the potential spin-off and separate listing of Zhaoxun Hengtai on the Shanghai Stock Exchange's Sci-Tech Innovation Board was submitted in January 2023[69]. Financial Performance - The Group's consolidated turnover from continuing operations was HK$3,432.7 million in FY2022, representing an 18% decrease from HK$4,182.7 million in FY2021[73]. - Profit for FY2022 totaled HK$1,114.6 million, down from HK$3,685.0 million in FY2021, while a non-cash aggregate gain of approximately HK$3,055.7 million was recorded in FY2021 related to the Cloopen Listing[76]. - The Group's share of results from associated company PAX Global increased by 16% in FY2022 compared to FY2021[73]. - For the year ended December 31, 2022, the group's consolidated revenue was HK$3,432,700,000, a decrease of 18% compared to HK$4,188,000,000 for the year ended December 31, 2021[114]. - The net profit for the year was HK$1,114,600,000, down from HK$3,685,000,000 in the previous year[114]. Assets and Liabilities - Total assets as of 31 December 2022 were HK$11,455.3 million, an increase from HK$10,818.8 million in 2021[89]. - Total liabilities increased to HK$3,901.0 million in 2022 from HK$3,327.8 million in 2021[89]. - The net cash position as of 31 December 2022 was HK$3,481.8 million, compared to HK$3,252.2 million in 2021[89]. - The gearing ratio was 13.8% in 2022, up from 11.1% in 2021, indicating a healthy capital structure[89]. - Cash and cash equivalents at the end of the year were HK$3,537.5 million, an increase from HK$3,295.3 million at the beginning of the year[110]. Employee and Management Structure - The company has a strong leadership team with extensive experience in technology and finance, including the Chairman and CEO who have over 30 years of combined experience in the industry[35][36][37]. - The company has a robust management structure, with senior executives holding advanced degrees in relevant fields, ensuring informed decision-making[48][51]. - As of December 31, 2022, the total number of employees in the Group was 2,782, with the largest segments being Payment and Digital Services (968 employees) and Financial Solutions (641 employees)[150]. - The Group's management ensures competitive employee compensation, including fixed salaries and performance-linked bonuses[154]. Strategic Focus and Growth - The company is focused on expanding its market presence, particularly in the third-party payment industry, with key management having over 16 years of experience in this sector[48]. - The company aims to leverage its strategic partnerships to drive business growth and market expansion, particularly in the fintech sector[49]. - The company is well-positioned for future growth, with a strategic focus on leveraging technology to meet evolving market demands[49]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service capabilities[49]. Governance and Compliance - The company has a diverse board of directors with expertise in law, finance, and corporate management, which supports its governance and strategic decision-making[40][54][56]. - The company is committed to continuous improvement in its operational efficiency and compliance, as evidenced by the experience of its independent non-executive directors in auditing and corporate advisory services[45][54]. - The Group has no material contingent liabilities as of December 31, 2022, aside from the previously mentioned guarantee agreement[144]. Share Option Scheme - The Group operates a share option scheme that allows for the issuance of 277,683,383 shares, representing 10% of the total shares in issue, to attract and retain talented employees[170]. - No share options were granted, vested, exercised, cancelled, or lapsed under the share option scheme during the year ended December 31, 2022[174]. - The exercise price of options under the share option scheme is determined by the Board and must be at least the highest of the closing price on the grant date or the average closing price for the five trading days prior[173]. - Eligible participants of the VBill OPCO Share Option Scheme include directors, supervisors, general managers, and other employees of the VBill OPCO Group[198].

Revenue Performance - Total revenue for the year ended December 31, 2022, was HKD 3,432,728, a decrease of 18% from HKD 4,182,684 in 2021[8]. - Revenue from financial technology services increased to HKD 210,097, up 18% from HKD 177,564 in the previous year[8]. - Revenue from continuing operations for the year ended December 31, 2022, was HKD 3,432,728, a decrease of 18% from HKD 4,182,684 in 2021[198]. - For the year ended December 31, 2022, the company reported a revenue of HKD 2,688,668,000, an increase of 12.3% from HKD 2,393,435,000 in 2021[63]. - The total revenue from joint ventures for the year ended December 31, 2022, was 3,399,895 thousand HKD, compared to 2,695,559 thousand HKD in 2021, indicating a growth of approximately 26.1%[32]. Profitability - The group reported a net profit of HKD 3,623,736 for the year, compared to HKD 61,300 in 2021, indicating a significant increase[14]. - The company’s EBITDA for the year was HKD 788,193, a decrease of 24% from HKD 1,036,441 in the previous year[14]. - Profit attributable to owners of the company for the year was HKD 939,416, a significant decline of 73.3% from HKD 3,521,526 in 2021[124]. - The net profit attributable to the company's owners for the year ended December 31, 2022, was HKD 939,416,000, representing a 73% decrease from HKD 3,521,526,000 in 2021[179]. - The total comprehensive income for the year was HKD 218,030, down 77.6% from HKD 964,234 in the previous year[125]. Assets and Liabilities - The total assets for the group as of December 31, 2022, were HKD 3,234,828, down from HKD 4,021,961 in 2021[16]. - The company’s total liabilities decreased from 1,076,401 thousand HKD in 2021 to 967,734 thousand HKD in 2022, a reduction of about 10.1%[44]. - The company’s total liabilities increased to HKD 3,901,029 in 2022 from HKD 3,327,814 in 2021[194]. - The total assets as of December 31, 2022, amounted to HKD 2,846,550,000, reflecting an increase from HKD 2,688,668,000 in 2021[63]. - The total equity as of December 31, 2022, was HKD 7,554,282,000, a 1% increase from HKD 7,490,994,000 in 2021[179]. Cash Flow - The company reported a net cash inflow from operating activities of HKD 34,766,000 for the period ending May 23, 2022, compared to HKD 15,955,000 for the year ending December 31, 2021[152]. - The company reported a net cash inflow from operating activities of HKD 441,335 in 2022, compared to an outflow of HKD 743,189 in 2021[195]. - The company’s cash and cash equivalents increased from 902,581 thousand HKD in 2021 to 857,069 thousand HKD in 2022, indicating a decrease of about 5.0%[49]. - Cash and cash equivalents at the end of 2022 were HKD 3,537,506, up from HKD 3,295,300 in 2021[195]. Research and Development - The company incurred research and development costs of HKD 251,422, an increase from HKD 214,497 in the previous year[18]. - The company has increased its R&D investment, launching new products in microservices platforms, container cloud platforms, and enterprise marketing tools[142]. Acquisitions and Investments - The company has acquired 40% of the issued share capital of Good Chain, with a purchase price of HKD 19,101,000, which will enhance its fintech service offerings[83][84]. - The acquisition of Beijing Xuanjia Technology Co., Ltd. involved a cash payment of HKD 3,603,000 for 60% of the issued share capital, expanding the company's digital payment services[88][89]. - The company acquired 20% of Beijing Zhongjin's issued share capital for approximately HKD 31,801,000, enhancing its stake in the fintech services sector[133]. Market Outlook - The company plans to expand its market presence and enhance its product offerings in the upcoming fiscal year[10]. - The company plans to expand its market beyond telecommunications operators, with a continuous increase in contract scale expected in 2023[142]. - The company anticipates a challenging economic outlook for 2023, despite an optimistic view on the recovery momentum of the national economy[141]. Employee and Operations - The company had a total of 2,782 employees as of December 31, 2022[191]. - In 2022, the company continued to provide product technology services and operational support to its main client, China Mobile Financial Technology Co., Ltd., maintaining stable business scale and receiving client recognition[142].

Financial Performance - Total revenue for 1H2022 was HK$1,742,494, a decrease of 13.3% compared to HK$2,010,976 in 1H2021[14] - Operating profit for 1H2022 was HK$201,163, down 50.5% from HK$406,654 in 1H2021[14] - Profit attributable to owners of the Company for 1H2022 was HK$710,401, a decline of 78.4% from HK$3,290,907 in 1H2021[14] - Basic earnings per share for profit from continuing operations was HK$0.240 in 1H2022, compared to HK$1.177 in 1H2021[14] - EBITDA for 1H2022 was HK$329,177, down 11.9% from HK$373,447 in 1H2021[11] - The consolidated turnover for Hi Sun Technology (China) Limited in 1H2022 was HK$1,742.5 million, a decrease of 13% compared to HK$1,673.4 million in 1H2021[27] - Profit for the period in 1H2022 totaled HK$824.6 million, significantly down from HK$3,373.5 million in 1H2021[27] - The overall consolidated turnover for the group was HK$1,742.5 million in 1H2022, a decrease of 13% compared to HK$2,000.0 million in 1H2021[30] Segment Performance - Payment processing solutions segment generated revenue of HK$1,451,052 in 1H2022, compared to HK$1,676,083 in 1H2021, reflecting a decrease of 13.5%[11] - Segmental turnover for payment processing solutions decreased to HK$1,448.8 million in 1H2022 from HK$1,673.4 million in 1H2021, a decline of 13%[29] - Segmental turnover for platform operation solutions fell to HK$62.0 million in 1H2022 from HK$80.7 million in 1H2021, a decrease of 23%[39] - Segmental operating profit for fintech solutions increased by 7% to HK$21.8 million in 1H2022 from HK$20.4 million in 1H2021, driven by steady growth in micro-lending and supply chain financing services[33] - Financial solutions segment reported a turnover of HK$101.0 million in 1H2022, up 2% from HK$98.8 million in 1H2021, but incurred an operating loss of HK$41.6 million[40] Assets and Liabilities - Total assets as of June 30, 2022, amounted to HK$10,887.3 million, slightly up from HK$10,818.8 million as of December 31, 2021[28] - Net current assets as of June 30, 2022, were HK$3,617.9 million, down from HK$3,816.8 million as of December 31, 2021[28] - The Group's total liabilities decreased to HK$3,293.9 million as of June 30, 2022 from HK$3,327.8 million as of December 31, 2021[122] - The Group's total receivables, including other receivables and prepayments, totaled HK$335,489,000 as of June 30, 2022, compared to HK$327,230,000 as of December 31, 2021[80] Cash Flow and Financing - Cash and cash equivalents at the end of the period were HK$3,837.96 million, compared to HK$3,770.28 million at the end of 1H2021[20] - Net cash generated from operating activities in 1H2022 was HK$304.38 million, a turnaround from a cash outflow of HK$128.12 million in 1H2021[20] - The company experienced a net increase in cash and cash equivalents of HK$640.91 million in 1H2022, compared to a decrease of HK$12.51 million in 1H2021[20] - The maximum issue size of the asset-backed securities (ABS) scheme is RMB1,000 million (approximately HK$1,230 million), with the first phase issued at RMB309 million (approximately HK$380.1 million) and the second phase at RMB362 million (approximately HK$419.9 million)[107] - The proceeds from the ABS issuance are primarily used for general working capital in the fintech solutions and services business segment[121] Investments and Fair Value - The company reported a fair value loss on financial assets of HK$2,509 in 1H2022, compared to a gain of HK$199,370 in 1H2021[11] - The Group recognized a fair value loss of approximately HK$401.7 million in the first half of 2022 due to changes in the fair value of its interest in Cloopen Group Holding Limited[58] - As of June 30, 2022, the Group held 364 million ordinary shares of PAX Global, with a fair value of approximately HK$2,224.0 million, representing about 25.7% of the Group's unaudited total assets[61] - The cost of investment in PAX Global as of June 30, 2022, was HK$259.8 million, with the recoverable amount exceeding the carrying value based on a discounted cash flow model[61] Operational Developments - The company has implemented internal organization alignment to better serve market dynamics and customer needs[26] - The company is focused on enhancing its fintech solutions and services business segment through strategic financing initiatives[107] - The company has launched various smart products aimed at enhancing operational efficiency for retail merchants, covering over 20,000 stores in cooperation with more than 10 leading chain merchants[157] - The company has built a global overseas payment network, with monthly transaction amounts exceeding US$10 million, covering regions such as Hong Kong, the United States, Japan, and Singapore[155] Management and Governance - Mr. Xu Wensheng was appointed as Chairman following the resignation of Mr. Cheung Yuk Fung on August 18, 2022[190] - Mr. Chang Kai-Tzung retired as an independent non-executive Director effective April 19, 2022[199] - Directors' annual fees/salaries increased during the six months ended June 30, 2022, with Kui Man Chun receiving HK$3,020,000[193] - The total number of ordinary shares as of June 30, 2022, was 2,776,833,835[188]

Financial Performance - The company reported a consolidated income statement showing a revenue increase of 15% year-over-year, reaching HKD 1.2 billion[120] - The Group's consolidated turnover from continuing operations for FY2021 was HK$4,182.7 million, representing a 9% increase compared to HK$3,844.6 million in FY2020[59] - Profit for FY2021 totaled HK$3,685.0 million, a significant increase from HK$779.1 million in FY2020[59] - The company's turnover for 2021 was HK$4,182,684,000, an increase from HK$3,844,618,000 in 2020, representing a growth of approximately 8.8%[191] - EBITDA for 2021 was HK$788,193,000, slightly down from HK$790,726,000 in 2020, indicating a decrease of about 0.3%[191] - Profit attributable to the owners of the company for 2021 was HK$3,521,526,000, significantly up from HK$656,685,000 in 2020, marking an increase of approximately 436.5%[199] User Growth and Market Expansion - User data indicated a growth in active users by 25%, totaling 3 million users by the end of the fiscal year[120] - Market expansion plans include entering two new Southeast Asian countries, projected to increase market share by 5%[120] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[120] - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on enhancing digital payment solutions[120] Cost Management and Efficiency - The management highlighted a 20% reduction in operational costs due to efficiency improvements implemented over the past year[120] Strategic Initiatives - The company is considering strategic acquisitions to enhance its service offerings, with a budget of up to HKD 300 million allocated for potential deals[120] - A new partnership with a leading fintech firm is expected to enhance service delivery and customer engagement, potentially increasing user retention by 15%[120] Research and Development - The company is investing HKD 50 million in research and development for new technologies aimed at improving cybersecurity measures[120] Management Team Experience - Mr. Xu has over 30 years of experience in corporate management in Hong Kong and the PRC[22] - Mr. Tam has over 30 years of experience in auditing, corporate advisory services, and financial management[23] - Mr. Chang has more than 28 years of experience in the electronic payments industry across Southeast Asia, Japan, and Greater China[25] - Mr. Li has over 27 years of experience in corporate management and strategic development[31] - Mr. Liu has over 17 years of experience in the financial technology industry[39] - Mr. Li has over 24 years of experience in the integrated circuit design industry[40] - Ms. Hui is currently a certified public accountant and has been with the Group since 2007[41] - The Group's strategic development department is led by Mr. Li, who joined in 2021[34] - The Group has a strong management team with diverse expertise in finance, law, and technology[38] - The company aims to leverage its management's extensive experience to enhance its market position and drive growth[38] Financial Position and Assets - As of December 31, 2021, the Group reported total assets of HK$10,818.8 million, an increase of 11.4% from HK$9,717.1 million in 2020[70] - Total liabilities were HK$3,327.8 million, down from HK$3,349.6 million in 2020, while total equity rose to HK$7,491.0 million from HK$6,367.5 million, reflecting a growth of 17.6%[70] - The net asset value per share increased to HK$2.698, up from HK$2.293 per share in 2020, representing a growth of 17.7%[70] - The Group's cash and cash equivalents amounted to HK$3,254.6 million, a decrease of 13.2% from HK$3,747.5 million in 2020[70] - The gearing ratio improved to 11.1% from 12.2% in 2020, indicating a healthier capital structure[70] Employee Information - The total number of employees as of December 31, 2021, was 2,759, with the largest divisions being Payment Processing Solutions (890 employees) and Financial Solutions (613 employees)[91] - The Group ensures competitive remuneration packages for employees, including fixed monthly income and performance-related bonuses[92] Share Option and Award Schemes - The 2021 Share Option Scheme was established to attract and retain talented employees, valid until May 18, 2031[112] - Under the 2021 Scheme, a maximum of 277,683,383 shares, representing 10% of the total shares issued, are available for issuance[114] - The maximum number of shares that can be issued upon exercise of options in any 12-month period is limited to 1% of the total shares in issue[113] - The Share Award Scheme became effective on June 29, 2021, and will last for 10 years until June 29, 2031[177] - The maximum number of Shares subject to an award shall not exceed 1.5% of the issued Shares as of the Adoption Date[181] - Each selected participant must pay HK$1 upon acceptance of the share award granted[181] Financial Reporting and Compliance - The Directors presented their report along with the audited financial statements for the year ended December 31, 2021[96] - The Group utilizes non-GAAP measures, such as EBITDA, to assess performance, which may not be comparable to similar measures from other companies[93] - No dividend was recommended for the year 2021, consistent with 2020[101]

Financial Performance - Total revenue for 1H2021 was HK$2,216,068, an increase of 9.6% compared to HK$2,022,166 in 1H2020[12] - Gross profit for the period was HK$616,658, representing a gross margin of approximately 27.8%, up from HK$409,627 in 1H2020[14] - Operating profit increased significantly to HK$445,614, compared to HK$142,735 in the previous year, marking a growth of 212.5%[15] - Profit for the period reached HK$3,373,474, a substantial increase from HK$215,015 in 1H2020, reflecting a year-on-year growth of 1,570.5%[19] - Earnings per share for profit attributable to the owners of the Company was HK$1.19, compared to HK$0.06 in the same period last year[22] - The consolidated turnover for Hi Sun Technology (China) Limited in 1H2021 was HK$2,216.1 million, representing a 10% increase compared to HK$2,008.7 million in 1H2020[32] - Profit for the period in 1H2021 totaled HK$3,373.5 million, a significant increase from HK$215.0 million in 1H2020[32] - The EBITDA for 1H2021 was HK$398.9 million, reflecting a 15% increase from HK$346.7 million in 1H2020[32] - The company reported a total comprehensive income for the period of HK$1,785.5 million, compared to HK$153.7 million in 1H2020[29] Revenue by Segment - Payment processing solutions generated revenue of HK$1,676,083, up from HK$1,593,937, indicating a growth of 5.2%[9] - Fintech solutions and services revenue increased to HK$101,500 from HK$77,254, representing a growth of 31.3%[9] - Information security chips and solutions revenue rose to HK$205,092, compared to HK$170,757, marking a growth of 20.0%[9] - Segmental turnover from external customers in the fintech solutions and services segment was HK$98.8 million, up 47% from HK$67.2 million in the first half of 2020[54] - The segmental turnover for fintech solutions and services was HK$100.8 million, a 32% increase from HK$76.7 million in the first half of 2020[40] - The turnover for information security chips and solutions was HK$205.1 million, up from HK$170.8 million in the first half of 2020, marking a 20% increase[43] - The electronic power meters and solutions segment reported a turnover of HK$57.2 million, reflecting a 61% increase from HK$35.5 million in the first half of 2020[58] Operating Profit and Loss - Segmental operating profit was HK$485,131, a significant increase from HK$176,092 in 1H2020[9] - The operating profit for 1H2021 was HK$280.1 million, a 24% increase from HK$225.7 million in 1H2020[32] - The operating profit for the payment processing solutions segment was HK$280.1 million, representing a 24% increase from HK$225.0 million in the first half of 2020[39] - The operating profit for fintech solutions and services improved to HK$20.4 million from an operating loss of HK$12.7 million in the first half of 2020[40] - The operating profit for information security chips and solutions increased to HK$38.2 million, compared to HK$16.7 million in the first half of 2020, reflecting a 129% growth[45] - The operating loss for the electronic power meters segment decreased to HK$7.4 million from HK$8.1 million in the first half of 2020[67] Assets and Liabilities - Total assets as of 30 June 2021 amounted to HK$11,295.3 million, up from HK$9,717.1 million as of 31 December 2020[33] - Net current assets as of 30 June 2021 were HK$4,076.4 million, compared to HK$3,778.5 million as of 31 December 2020[33] - The Group's net asset value was HK$8,155.0 million as of June 30, 2021, compared to HK$6,367.5 million at the end of 2020, with a net asset value per share of HK$2.937[148] - The Group's cash and bank balances stood at HK$4,492.2 million as of June 30, 2021, down from HK$4,628.0 million as of December 31, 2020[148] - The total liabilities for trade and bills payables, including other payables and accruals, amounted to HK$2,135,331, down from HK$2,369,414, indicating a decrease of approximately 9.9%[129] - The company’s liquidity position remains strong with significant cash reserves, despite the restrictions on customer reserve accounts mandated by the People's Bank of China[123] Investments and Fair Value Gains - The fair value gain on convertible preference shares of Cloopen Group was approximately HK$197.8 million, contributing to the increase in net profit[32] - The deemed disposal gain from ordinary shares of Cloopen prior to its IPO was approximately HK$2,857.9 million[32] - The company reported a fair value gain of HK$199.4 million on financial assets, compared to a loss of HK$8.4 million in the first half of 2020[44] - The non-cash aggregate gain related to the Cloopen Listing in 1H2021 was approximately HK$3,055.7 million, with a deemed disposal gain of approximately HK$2,857.9 million recognized in profit or loss[79][83] - The Group's investment in Cloopen was valued at HK$1,841.4 million as of June 30, 2021, representing approximately 16.3% of the Group's total assets[151] Market Outlook and Strategic Initiatives - The company remains optimistic about the market demand for its payment terminals in the post-COVID-19 era[92] - The company has prepared adequately to seize significant opportunities in the post-COVID-19 landscape[92] - The company plans to strengthen compliance and anti-money laundering risk management in the second half of 2021, alongside increasing investment in risk prevention and control[197][199] - The economic outlook for 2021 is expected to remain challenging, but the company is cautiously optimistic about the recovery direction due to successful COVID-19 control measures in China[195][198] - The company aims to complete the renewal of the Operating License for Non-Bank Payment Institutions on time in the second half of 2021[197][199] Employee and Operational Insights - The total number of employees as of June 30, 2021, was 2,532, with competitive remuneration packages including fixed monthly income and annual performance-related bonuses[187][189] - The company ensures comprehensive employee remuneration packages and sponsors selected employees for external training courses[187][189] - The company introduced over 1,000 SaaS service providers to enhance payment and information services for offline small and micro merchants[196][199] - The company launched several innovative technology products in the first half of 2021, including "JIM Community," "JIM Good Days," and "JIM Smart Shelves," aimed at enhancing digital transformation for merchants[197][199]