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]

Financial Performance - The company reported a consolidated income statement showing a revenue increase of 15% year-over-year, reaching HKD 1.2 billion[3]. - Consolidated revenue for the year 2020 was HK$4,143.4 million, down from HK$5,576.0 million in 2019, primarily due to a decrease in transaction volume in the payment processing solutions segment[57][59]. - Operating profit increased by 13% to HK$653.1 million in 2020, attributed to significant fair value gains on financial assets related to Cloopen Group Holding Limited[57][59]. - The company reported a net profit margin of 20%, maintaining strong profitability despite market challenges[3]. - Cash flow from operations improved by 18%, totaling HKD 400 million, indicating strong operational efficiency[3]. User Growth and Market Expansion - User data indicated a growth in active users by 25%, totaling 5 million users by the end of the fiscal year[3]. - Market expansion plans include entering two new Southeast Asian countries, projected to increase market share by 5%[3]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[3]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on enhancing digital payment solutions[3]. Research and Development - The company is investing HKD 50 million in research and development for new technologies aimed at improving cybersecurity measures[3]. Strategic Acquisitions - The company is considering strategic acquisitions to enhance its service offerings, with a budget of up to HKD 300 million allocated for potential deals[3]. Marketing Strategy - A new marketing strategy is being implemented, aiming to increase brand awareness by 30% over the next year[3]. COVID-19 Impact - The Group faced unprecedented challenges in 2020 due to the COVID-19 pandemic, implementing various prevention and control measures in compliance with national regulations[56]. - COVID-19 control measures in China have achieved substantial success, effectively quelling the spread of the virus[56]. - The economy in Mainland China has stabilized in many areas, with a cautious optimism regarding the country's full recovery as the COVID-19 vaccine roll-out is underway[56]. Financial Position - Total assets as of December 31, 2020, amounted to HK$9,717.1 million, an increase from HK$8,149.1 million in 2019[71][75]. - Cash and bank balances were HK$4,628.0 million as of December 31, 2020, compared to HK$4,384.1 million in 2019, with no short-term borrowing[72][75]. - The gearing ratio was reported at 12.2% for 2020, slightly down from 12.4% in 2019, indicating a healthy capital structure[72][75]. Employee Information - The total number of employees as of December 31, 2020, was 2,475, with the largest divisions being payment processing solutions (818 employees) and financial solutions (582 employees)[99][100]. Share Option Schemes - As of the date of the annual report, 267,342,983 shares are available for issue under the share option scheme, representing approximately 9.63% of the total shares in issue[125]. - The VBill (Cayman) Share Option Scheme was adopted on October 16, 2020, and became effective on November 18, 2020, lasting for 10 years[138]. - Under the VBill (Cayman) Share Option Scheme, the total number of shares that may be issued upon exercise of options shall not exceed 10% of the shares in issue at the date of approval[139]. - The maximum number of shares issued upon exercise of options granted to each participant shall not exceed 1% of the shares in issue in any 12-month period[142]. - The exercise price of options is determined by the Board and must be at least the highest of the closing price on the offer date or the average closing price for the five trading days preceding the offer date[131]. - The company aims to attract and retain talented employees through its share option schemes[120]. Dividend Policy - The directors do not recommend the payment of dividends for the year ended December 31, 2020, consistent with the previous year[109]. - The company did not recommend any dividend payment for the year ended December 31, 2020, consistent with the previous year[115].

Financial Performance - Revenue for 1H2020 was HK$2,022,166, a decrease of 32.8% compared to HK$3,005,796 in 1H2019[13] - Gross profit for 1H2020 was HK$409,627, down 45.0% from HK$743,718 in 1H2019[13] - Operating profit decreased to HK$142,735 in 1H2020, a decline of 60.4% from HK$360,373 in 1H2019[13] - Profit for the period was HK$215,015, representing a 46.2% decrease from HK$400,271 in 1H2019[13] - Basic earnings per share for 1H2020 was HK$0.06, down from HK$0.12 in 1H2019[13] Segment Performance - Payment processing solutions generated revenue of HK$1,667,327 in 1H2020, a decline of 34.9% from HK$2,564,269 in 1H2019[9] - Information security chips and solutions revenue increased slightly to HK$170,757 in 1H2020, compared to HK$168,775 in 1H2019[9] - Financial solutions segment reported a revenue of HK$67,201 in 1H2020, down 19.3% from HK$83,223 in 1H2019[9] - Total segmental results showed a revenue of HK$2,027,838 in 1H2020, a decrease of 32.6% from HK$3,005,796 in 1H2019[9] - Segmental turnover for payment processing solutions was HK$1,667.3 million, down 35% from HK$2,564.3 million in 1H2019[30] Impact of COVID-19 - Profit for the period was HK$215.0 million, down from HK$400.3 million in 1H2019, primarily due to the impact of COVID-19[19] - The overall decline in turnover and increase in operating losses across segments were primarily attributed to the COVID-19 outbreak and related business interruptions[45] - In the first half of 2020, the transaction volume of the payment processing solutions dropped by 22.4% to approximately RMB 720 billion due to the impact of COVID-19[138] Assets and Liabilities - Total assets as of June 30, 2020, amounted to HK$8,460.9 million, an increase from HK$8,149.1 million as of December 31, 2019[20] - Net current assets increased to HK$3,338.5 million as of June 30, 2020, compared to HK$3,120.1 million at the end of 2019[20] - Total liabilities increased to HK$2,083,219 from HK$2,068,108, indicating a rise of 0.73%[90] - The Group's equity increased to HK$5,456.1 million as of June 30, 2020, compared to HK$5,278.5 million as of December 31, 2019[115] Cash Flow and Financial Position - Net cash generated from operating activities was HK$34.97 million, a significant decrease from HK$913.08 million in 1H2019[17] - The company reported a net increase in cash and cash equivalents of HK$43.09 million, compared to HK$780.77 million in the same period last year[17] - Cash and cash equivalents slightly decreased to HK$3,711,129 from HK$3,712,567, a decline of 0.04%[84] - The Group had no borrowings as of June 30, 2020, compared to HK$5.6 million in borrowings as of December 31, 2019[115] Shareholder Information - As of June 30, 2020, the total number of issued shares of the Company was 2,776,833,835 ordinary shares[171] - Mr. Kui Man Chun held a total of 645,733,636 shares, representing 23.25% of the Company's total shares[166] - Rich Global Limited and Hi Sun Limited each held 617,083,636 shares, accounting for 22.22% of the Company's total shares[166] - The Company did not purchase, sell, or redeem any of its shares during the reporting period[174] Corporate Governance - All directors confirmed compliance with the required standards for securities transactions throughout the six months ended June 30, 2020[175] - The Company has adopted a written code to regulate securities trading by Directors and senior management[179] - The Audit Committee has reviewed the unaudited interim condensed consolidated results for the six months ended June 30, 2020[183] Future Outlook and Strategy - The Group plans to expand its market share in cross-border payment business and promote the scale development of its scanning code business in the second half of 2020[138] - The Group is committed to developing new technologies in collaboration with the State Grid Power Research Institute, particularly in setting GB standards for electronic power meters[154] - The Group established Shenzhen Hi Sun FinTech Global Co., Ltd. in March 2020 to focus on overseas financial IT service opportunities, particularly in the Southeast Asian market[151]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 20% growth year-over-year[3]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 15% to $575 million[3]. - Profit for the year totaled HK$683.0 million, compared to HK$337.3 million in 2018, indicating significant growth in profitability[30]. - The company reported a revenue of HK$5,575,981,000 for 2019, an increase from HK$4,661,954,000 in 2018, representing a growth of approximately 19.6%[155]. - Profit for the year reached HK$682,967,000, significantly up from HK$337,290,000 in the previous year, marking an increase of about 102.3%[155]. - The operating profit for 2019 was HK$578,173,000, compared to HK$258,501,000 in 2018, showing a substantial increase of approximately 123.8%[155]. - The company’s EBITDA for 2019 was HK$1,148,726,000, up from HK$862,647,000 in 2018, representing a growth of about 33.2%[152]. User Growth and Market Expansion - User data showed an increase in active users to 1.2 million, up from 1 million in the previous year, indicating a 20% growth in user base[3]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[3]. - The total number of active domestic merchants exceeded 3,500,000 by the end of December 2019[31]. Product Development and Innovation - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[3]. - Research and development expenses increased by 25% to $30 million, reflecting the company's commitment to innovation[3]. - Management plans to continue investing in product innovation and business development in e-commerce, payment, and internet finance sectors[35]. Financial Position and Assets - Total assets as of December 31, 2019, amounted to HK$8,149.1 million, up from HK$6,632.5 million as of December 31, 2018[30]. - The Group's total liabilities were HK$2,870.6 million, up from HK$2,061.2 million in 2018, while total equity increased to HK$5,278.5 million from HK$4,571.3 million[47]. - The net cash position as of December 31, 2019, was HK$4,378.5 million, compared to HK$2,671.3 million in 2018, reflecting a growth of 63.8%[47]. - Cash and cash equivalents at the end of 2019 were HK$3,712.6 million, compared to HK$2,681.5 million at the end of 2018, indicating strong cash flow management[159]. Segment Performance - Segmental operating profit reached HK$661.0 million, a 90% increase compared to 2018, primarily due to the absence of share option expenses of approximately HK$195.3 million recorded in 2018[30]. - Segmental turnover for the payment processing solutions segment amounted to HK$4,672.6 million, a 25% increase compared to last year[31]. - Segmental operating profit for the payment processing solutions segment was HK$696.5 million, up from HK$397.0 million in 2018, representing a 75% increase[31]. Employee and Shareholder Information - The total number of employees as of December 31, 2019, was 2,857, with competitive remuneration packages including fixed monthly income and annual performance-related bonuses[75]. - The company operates a share option scheme effective from April 29, 2011, aimed at attracting and retaining talented employees[85]. - The company did not recommend any dividend payment for the year ended December 31, 2019, consistent with the previous year[81]. Risk Management and Future Outlook - The Group is closely monitoring the market situation and evaluating the ongoing impact of the COVID-19 epidemic on its operations and financial performance[37]. - The Group remains optimistic about the future prospects of PAX Global and Cloopen, focusing on enhancing shareholders' value[199].

Financial Performance - Revenue for the first half of 2019 reached HK$3,005,796, a significant increase of 54.4% compared to HK$1,945,075 in the first half of 2018[12] - Gross profit for the first half of 2019 was HK$743,718, representing a 49.5% increase from HK$497,292 in the same period last year[12] - Operating profit surged to HK$360,373, compared to HK$28,707 in the first half of 2018, marking a substantial increase of 1,256.5%[12] - Profit for the period was HK$400,271, up from HK$69,843 in the first half of 2018, reflecting a growth of 472.5%[12] - Basic earnings per share increased to HK$0.12, compared to HK$0.02 in the first half of 2018, indicating a 500% rise[12] Revenue Breakdown - Payment processing solutions generated revenue of HK$2,564,269, up 72.0% from HK$1,490,689 in the previous year[9] - Information security chips and solutions reported revenue of HK$168,775, a slight decrease of 2.4% from HK$172,979 in the first half of 2018[9] - Platform operation solutions revenue was HK$89,811, down 11.2% from HK$101,093 in the same period last year[9] - Financial solutions revenue decreased to HK$83,223, down 9.5% from HK$91,434 in the first half of 2018[9] Segment Performance - The company reported a segmental operating profit of HK$390,606, compared to HK$50,251 in the first half of 2018, reflecting a significant improvement[9] - Segmental turnover from payment processing solutions reached HK$2,564.3 million, a 72% increase compared to 1H2018[31] - Segmental operating profit for payment processing solutions was HK$431.9 million, significantly up from HK$54.7 million in 1H2018, mainly due to the absence of share option expenses from the previous year[1] - Segmental turnover for electronic power meters and solutions increased to HK$99.7 million, an 11% rise from HK$90.0 million in 1H2018, with an operating profit of HK$4.2 million compared to a loss of HK$9.1 million in the prior period[49][53] - Segmental turnover for financial solutions decreased to HK$83.2 million, down 9% from HK$91.4 million in 1H2018, with an operating loss of HK$36.3 million compared to a loss of HK$13.5 million in the previous year[40][42] Assets and Liabilities - The total assets as of June 30, 2019, amounted to HK$7,335.3 million, an increase from HK$6,632.5 million as of December 31, 2018[22] - Net current assets increased to HK$2,011.8 million as of June 30, 2019, compared to HK$1,606.1 million as of December 31, 2018[22] - Trade receivables increased to HK$244.5 million as of June 30, 2019, compared to HK$148.2 million as of December 31, 2018, reflecting growth in the electronic power meter and information security chips segments[77] - Total liabilities as of June 30, 2019, are HK$2,364.0 million, up from HK$2,061.2 million as of December 31, 2018[200] Cash Flow - The net cash generated from operating activities was HK$913.1 million, a substantial increase from HK$139.5 million in 1H2018[16] - Cash and cash equivalents at the end of the period were HK$3,448.4 million, up from HK$2,531.3 million at the end of 1H2018[16] Shareholder and Investment Activities - The Company entered into a subscription agreement allowing an Investor to subscribe for up to 15% of VBill (Cayman) shares at a total price of up to RMB588,000,000[171] - The first tranche of the subscription involves 1,263 VBill shares, representing approximately 11.21% of issued shares, at a price of RMB378,000,000[172] - The completion of the first capital increase is expected within 10 business days after the last condition is satisfied, no later than June 30, 2019[172] - The final subscription price for the second tranche will be based on the actual net profit of VBill OPCO, with completion expected no later than 15 business days after the first capital increase[176] Corporate Governance and Compliance - The Group faces risks under the Contractual Arrangements, including potential non-compliance with future regulatory changes in the PRC[132] - The Yunrong Control Documents may not be as effective as direct ownership in providing control over Hunan Yunrong[134] - The Company does not have insurance covering risks related to the Yunrong Control Documents and associated transactions[143] - Independent non-executive Directors will review the Yunrong Control Documents annually, confirming transactions were conducted in the ordinary course of business and on normal commercial terms[164]