Financial Performance - Revenue for 2024 decreased by 22.7% to RMB 1,095,301,000 from RMB 1,416,573,000 in 2023[16] - Profit attributable to owners of the Company fell by 61.5% to RMB 50,889,000 compared to RMB 132,051,000 in the previous year[16] - Net profit margin decreased to 4.5% from 10.7%, a decline of 6.2 percentage points[16] - Gross profit was approximately RMB0.259 billion, a year-on-year decrease of approximately 38.4%, with a gross profit margin of approximately 23.6%, down 6.1 percentage points compared to the same period in 2023[55] - The Group expects a revenue decrease of approximately 15% to 25% for the three months ending March 31, 2025, compared to approximately RMB286.95 million for the same period in 2024[62] - Profit attributable to owners of the Company is expected to decrease by approximately 25% to 35% for the three months ending March 31, 2025, compared to approximately RMB17.30 million for the same period in 2024[62] Business Segments - Revenue from embedded software and secure payment products dropped by 34.5% to RMB 622,362,000, while platform and service revenue increased by 1.3% to RMB 472,939,000[17] - The embedded software and secure payment products business segment recorded revenue of approximately RMB0.622 billion, a year-on-year decrease of approximately 34.5%[60] - The platform and service business segment recorded revenue of approximately RMB0.473 billion, representing a year-on-year increase of approximately 1.3%[61] Assets and Liabilities - Total assets decreased by 8.6% to RMB 2,463,484,000 from RMB 2,693,907,000 in 2023[18] - Total liabilities reduced by 24.6% to RMB 451,493,000 compared to RMB 598,836,000 in the previous year[18] - The Group's total current assets amounted to approximately RMB1,657.0 million, representing a year-on-year decrease of approximately 15.2%[56] - The company had no bank borrowings as of December 31, 2024, maintaining a conservative financial management approach[99] - The aggregate amount of bank balances and cash reached approximately RMB1,332.8 million as of December 31, 2024, with RMB1,178.9 million (approximately 88.5%) denominated in RMB[98] - The company's current ratio improved to approximately 4.1 as of December 31, 2024, compared to approximately 3.5 in 2023, indicating strong liquidity[102][107] - The company's gearing ratio decreased to approximately 18.3% as of December 31, 2024, from approximately 22.2% in 2023, reflecting a lower level of financial leverage[102][107] Strategic Initiatives - The Group is focusing on new business models, technologies, and human resources to prepare for transformation and enhance operational efficiency[50] - The Group's digital and platform-based strategy has led to the transformation of payment card service operations from a decentralized process to an intelligent and visualized one[51] - The Group is investing in new technologies such as AIGC, eSIM, and multi-scenario security authentication to support digital development[41] - The Group is building a comprehensive credit card benefits platform to improve user experience and support financial institutions in digital marketing[38] - The Group has successfully expanded its UMV platform, increasing the number of financial institutions from over 30 to more than 200 banks and 1,600 branches[53] - The UMV platform addresses core banking issues such as cost, efficiency, and user experience by enabling real-time online interactions for payment card operations[67] - The UMV platform enhances banks' risk management capabilities by reducing manual operations and improving compliance with regulatory requirements[68] Awards and Recognition - Goldpac was recognized with four ICMA Élan Awards in 2024, marking 20 consecutive years of awards[21] - The UMV platform was awarded the Development Potential Service Demonstration Case at the 2024 China International Fair for Trade in Services[22] - Goldpac was listed as one of the 2024 KPMG China Corporate Governance Pioneers, excelling in ESG practices[26] Workforce and Management - The Group's workforce decreased to 1,282 employees as of December 31, 2024, from 1,507 employees in the previous year, reflecting a reduction of 225 employees[132] - The Group's total employee benefits expenses for the year ended December 31, 2024, were approximately RMB 206.8 million, down from approximately RMB 224.7 million in 2023[132] - A youth-oriented talent strategy has been initiated, increasing the appointment of younger professionals across the organization[79] - The management team has extensive experience in the financial card industry, with key executives having over 30 years of relevant experience[146][152] - The Group emphasizes employee training and development, providing comprehensive internal and external training programs[137] Corporate Governance - The board consists of nine directors, including six executive directors and three independent non-executive directors[142] - The Company has appointed experienced professionals to its board, enhancing its governance and strategic oversight capabilities[180] - The independent non-executive Directors bring valuable insights from their respective fields, contributing to the Company's decision-making processes[181] - The board's composition reflects a commitment to strong corporate governance and accountability, essential for maintaining investor confidence[180] Future Outlook - The company has set a future outlook with a projected revenue growth of 20% for the upcoming fiscal year[156] - The company plans to enhance customer engagement through digital marketing strategies, aiming for a 15% increase in customer retention rates[156] - The Group is unable to provide revenue and profit forecasts for the six months ending June 30, 2025, due to current order conditions and business cycles[66]

Summary of Conference Call Company Overview - The conference call was held by Jin Guang Da, which has maintained profitability for over 30 years and continues to do so in 2024 despite a slight decline compared to previous years. The company aims to undergo a comprehensive transformation and rejuvenate its workforce [1][5]. Core Industry Insights - The banking industry is facing challenges, with a notable decline in credit card issuance, which has decreased for nine consecutive quarters by approximately 0.5% to 1.5%. Conversely, the total amount of credit card debt overdue for six months has increased for eight consecutive quarters [6][7]. - Consumer confidence in China is at a ten-year low, impacting the overall economic environment and putting pressure on the company's operations [6]. Strategic Shifts - The company is shifting its strategy from merely providing services based on banks' needs to actively transforming the ecosystem to better serve consumers and banks [1][2]. - The introduction of a new platform allows consumers to purchase credit cards directly, changing the previous model where banks issued cards without targeting specific customers [2][3]. Financial Performance - For 2024, the company expects revenue of approximately 1.1 billion, with a net profit of 50 million. Revenue from mainland China is projected to decline by about 10.8%, while overseas revenue is expected to drop significantly by 63.5% due to extended procurement cycles and geopolitical risks [9][10]. - The company has invested around 1.1 to 1.2 billion in R&D since its listing, representing 9.5% of its revenue, with 25% of its workforce dedicated to R&D [10][11]. Technological Advancements - The company is focusing on integrating AI and quantum computing technologies to enhance security and product offerings. It aims to develop localized products to meet increasing demands for digital security [11][12]. - The UMV platform is designed to optimize banking operations and improve customer experiences through AI-driven solutions [16][24]. Market Expansion Plans - The company plans to expand its market presence in Asia, the Middle East, Southeast Africa, Europe, and South America, despite challenges in the procurement cycle for overseas clients [17][18]. - The number of banks connected to the platform has increased from 34 to over 1,800, indicating strong recognition and acceptance of the platform by the banking sector [23]. Future Outlook - The management anticipates continued pressure on operations but remains optimistic about potential recovery. They are committed to enhancing the platform's capabilities and expanding their market reach [22][21]. - The company emphasizes the importance of attracting international talent to support its global expansion and technological advancements [20][19]. Additional Notes - The company has maintained a healthy cash flow, with available cash of 1.33 billion and a significant dividend payout ratio of 81% [13]. - The management is focused on improving operational efficiency and customer experience through the integration of AI technologies and enhanced service offerings [24].

Financial Performance - For the year ended December 31, 2024, the company reported revenue of approximately RMB 1.095 billion, a decrease of about 22.7% year-on-year[3]. - Gross profit for the same period was approximately RMB 258.9 million, down approximately 38.4% year-on-year, resulting in a gross margin of 23.6%, a decline of 6.1 percentage points compared to the same period in 2023[3]. - The annual profit was approximately RMB 49.5 million, representing a year-on-year decrease of about 67.2%, but the company has maintained profitability since its listing[3]. - Basic and diluted earnings per share for the year were RMB 6.3, a decrease from RMB 16.3 in 2023[6]. - The company reported a pre-tax profit of RMB 49,718,000 for 2024, down 71.4% from RMB 173,733,000 in 2023[21]. - The company recorded an annual profit of approximately RMB 495 million, a year-on-year decrease of about 67.2% due to high R&D investments[65]. Revenue Breakdown - Revenue from the embedded software and secure payment products segment was RMB 622,362,000, down 34.4% from RMB 949,781,000 in 2023[21]. - Revenue from the platform and services segment increased slightly to RMB 472,939,000 from RMB 466,792,000 in 2023, representing a growth of 1.2%[21]. - Embedded software and secure payment products accounted for 56.8% of total revenue in 2024, compared to 67.0% in 2023[21]. - The group's platform and service business recorded revenue of approximately RMB 473 million, a slight increase of 1.3% year-on-year[67]. Assets and Liabilities - Total assets as of December 31, 2024, were approximately RMB 2.463 billion, down from RMB 2.694 billion in 2023[7]. - Total liabilities decreased to approximately RMB 451.5 million from RMB 598.8 million in the previous year[8]. - As of December 31, 2024, total current assets amounted to approximately RMB 1.657 billion, a year-on-year decrease of about 15.2%[65]. - The group had a debt-to-asset ratio of approximately 18.3% as of December 31, 2024, down from 22.2% in 2023[83]. Cash and Liquidity - As of December 31, 2024, total cash and bank deposits amounted to approximately RMB 1.3328 billion, compared to RMB 1.353 billion as of December 31, 2023[3]. - The current ratio improved to approximately 4.1 from about 3.5 in 2023, while the quick ratio increased to approximately 3.5 from about 3.0 in the previous year[3]. - The group's liquidity ratios improved, with a current ratio of approximately 4.1 and a quick ratio of approximately 3.5 as of December 31, 2024, compared to 3.5 and 3.0 in 2023, respectively[83]. Dividends - The board proposed a final dividend of HKD 0.055 per share, equivalent to approximately RMB 0.051, down from HKD 0.10 in the previous year[4]. - The total dividend proposed for the year ending December 31, 2024, is HKD 5.5 cents per share, down from HKD 10.0 cents in 2023, with total dividends for 2023 amounting to RMB 103,343,000 compared to RMB 115,292,000 in 2022[44]. Employee and Operational Metrics - The total employee benefit expenses decreased to RMB 206,802 thousand in 2024 from RMB 224,680 thousand in 2023, a reduction of 7.9%[36]. - The group employed 1,282 staff as of December 31, 2024, a reduction of 225 employees from 1,507 in 2023[96]. - The weighted average number of ordinary shares used for calculating basic earnings per share was 807,377,000 in 2024, slightly down from 811,326,000 in 2023[43]. Future Outlook and Strategic Initiatives - The board anticipates a revenue decrease of approximately 15% to 25% for the three months ending March 31, 2025, compared to approximately RMB 286.95 million for the same period in 2024[68]. - The expected profit attributable to the owners for the three months ending March 31, 2025, is projected to decrease by approximately 25% to 35% from approximately RMB 17.30 million for the same period in 2024[68]. - The company is developing a new generation of encryption algorithms, focusing on forward-looking research in finance, telecommunications, and social security[75]. - The UMV platform aims to enhance risk management for banks by reducing manual operations and improving compliance with data regulations[71]. - The company plans to continue investing in AI technology to enhance user experience and improve service efficiency for B-end clients[76]. Compliance and Governance - The company has complied with all applicable provisions of the Corporate Governance Code for the year ending December 31, 2024[100]. - All directors confirmed compliance with the standards for securities transactions as per the listing rules for the year ending December 31, 2024[101]. - The auditor's report on the financial statements has no reservations and does not highlight any matters of emphasis[102].

Revenue Performance - Revenue for the embedded software and secure payment products segment decreased by 39.2% to RMB 290,292,000 in H1 2024 compared to RMB 477,310,000 in H1 2023[6]. - Revenue for the platform and service segment decreased by 6.3% to RMB 251,720,000 in H1 2024 compared to RMB 268,574,000 in H1 2023[6]. - Total revenue for the six months ended June 30, 2024, was RMB 542,012,000, a decline of 27.3% from RMB 745,884,000 for the same period in 2023[7]. - For the six months ended June 30, 2024, the Group recorded a revenue of approximately RMB542.0 million, representing a year-on-year decrease of approximately 27.3%[13]. - Revenue from embedded software and secure payment products was RMB 290,292,000, down 39.2% from RMB 477,310,000 in the prior year[131]. - Revenue from data processing and other services amounted to RMB 164,202,000, compared to RMB 268,574,000 in the previous year, reflecting a decline of 38.9%[131]. - The Chinese mainland contributed RMB 479,975,000 to total revenue, while non-Chinese mainland markets generated RMB 62,037,000, indicating a shift in geographical revenue distribution[129]. Profitability and Financial Performance - Gross profit for the period was RMB 132,310,000, down 37.2% from RMB 210,537,000 in H1 2023[7]. - Profit for the period decreased by 64.4% to RMB 30,472,000 compared to RMB 85,615,000 in H1 2023[7]. - Net profit margin for H1 2024 was 5.6%, down from 11.5% in H1 2023, representing a decline of 5.9 percentage points[7]. - Total comprehensive income for the period was RMB 30,902,000, down 64.7% from RMB 87,490,000 in the previous year[109]. - Basic and diluted earnings per share were both 3.8 cents, a decrease from 9.3 cents in the same period of 2023[109]. - Profit before income tax for the six months ended June 30, 2024, was RMB 31,498,000, a decrease of 67.3% compared to RMB 96,215,000 for the same period in 2023[138]. - The effective income tax expense for the six months ended June 30, 2024, was RMB 1,026,000, significantly lower than RMB 10,600,000 in 2023, indicating a reduction of 90.3%[141]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 2,465,759,000, a decrease of 8.5% from RMB 2,693,907,000 as of December 31, 2023[8]. - Total liabilities decreased by 22.9% to RMB 461,711,000 as of June 30, 2024, from RMB 598,836,000 as of December 31, 2023[8]. - Current liabilities decreased to RMB 419,886,000 from RMB 554,055,000, a decline of about 24.2%[111]. - Total equity attributable to owners of the Company was RMB 2,001,562,000, down from RMB 2,073,331,000 at the end of 2023[110]. - The company reported total trade receivables of approximately RMB380.6 million as of June 30, 2024, an increase from RMB331.0 million as of December 31, 2023[53]. - The total current assets of the Group as of June 30, 2024, were approximately RMB1,711.7 million, down from approximately RMB1,952.9 million as of December 31, 2023[58]. Research and Development - The Group invested approximately RMB53.4 million in research and development, representing a year-on-year increase of approximately 4.3%, and accounting for approximately 9.9% of the revenue[14]. - Research and development expenses for the six months ended June 30, 2024, were RMB 53,410,000, slightly higher than RMB 51,223,000 in 2023, indicating a year-over-year increase of 4.2%[138]. Employee and Management Information - Total employee benefits expenses for the six months ended June 30, 2024, amounted to approximately RMB111.1 million, compared to approximately RMB109.8 million for the same period in 2023[72]. - The Group had a total of 1,342 employees as of June 30, 2024, a decrease of 165 employees from 1,507 as of December 31, 2023[72]. - The company conducts an annual salary review and has implemented various incentive schemes, including share option and share reward plans, to motivate potential employees[75]. - Directors' fees for the period amounted to RMB 294,000, a slight decrease from RMB 300,000 in the previous period[187]. Corporate Governance and Compliance - The company has complied with all applicable Code Provisions in the Corporate Governance Code throughout the six months ended June 30, 2024[79]. - The Board consists of nine Directors, including six executive Directors and three independent non-executive Directors[78]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim report[90]. - The company complies with corporate governance codes and has established an audit committee[90]. Strategic Initiatives and Market Outlook - The company is facing challenges due to geopolitical tensions and slower economic growth in developed economies, impacting its outlook[9]. - The company aims to reinforce confidence and accelerate the implementation of its digital and platform-based strategy in response to market conditions[9]. - The Group aims to adapt its product structure and accelerate the implementation of its digital and platform-based strategy in response to market challenges[11]. - The Group plans to expand its global business territories by actively promoting successful business models in target regions, focusing on diverse needs across different countries[29][31]. Shareholder Information - The company declared a final dividend of HK10.0 cents per ordinary share for 2023, down from HK12.0 cents in 2022, with total dividends amounting to HK$73,817,000 compared to HK$86,469,000 in the previous year[35]. - As of June 30, 2024, the company had issued a total of 817,935,000 shares[92]. - Chairman LU Run Ting holds 299,759,422 shares, representing 36.65% of the company's interests[91]. - The company has a discretionary trust established by Chairman LU, influencing share ownership[91]. Cash Flow and Capital Expenditure - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 227,989,000, compared to a net cash used of RMB 37,987,000 in the same period of 2023, indicating a significant improvement[116]. - Cash flows from investing activities resulted in a net cash outflow of RMB 216,000,000 for the first half of 2024, compared to a net cash outflow of RMB 71,934,000 in the same period of 2023[116]. - Capital expenditures for the Group amounted to approximately RMB 11,574,000 for the six months ended June 30, 2024, a decrease from RMB 14,993,000 in the same period of 2023[155].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of approximately RMB 542.0 million, a decrease of about 27.3% year-on-year[1]. - Gross profit for the period was approximately RMB 132.3 million, down about 37.2% year-on-year, with a gross margin of 24.4%, a decline of 3.8 percentage points compared to the same period in 2023[1]. - Profit for the period was approximately RMB 30.5 million, representing a year-on-year decrease of about 64.4%[1]. - Revenue from the embedded software and secure payment products segment was approximately RMB 290.3 million, down about 39.2% year-on-year due to prolonged procurement cycles from customers outside mainland China[1]. - The platform and services segment recorded revenue of approximately RMB 251.7 million, a decrease of about 6.3% year-on-year, attributed to intensified market competition and a decline in digital device sales[1]. - For the six months ended June 30, 2024, the profit attributable to the company's owners was RMB 31,144,000, a decrease of 58.8% compared to RMB 75,393,000 for the same period in 2023[19]. - The basic and diluted earnings per share for the six months ended June 30, 2024, were based on a weighted average of 809,789,000 shares, compared to 811,431,000 shares for the same period in 2023[19]. Research and Development - Research and development expenses for the period were approximately RMB 53.4 million, an increase of about 4.3% year-on-year, accounting for approximately 9.9% of total revenue[1]. - R&D expenses for the period amounted to approximately RMB 53.4 million, an increase of about 4.3% year-on-year, accounting for approximately 9.9% of total revenue[30]. Market and Product Development - The company launched the UMV digital platform, which integrates AI and big data technologies to provide comprehensive financial solutions for financial institutions[31]. - The UMV-Card Cloud platform has onboarded over 18 clients from the finance and transportation sectors since its launch, while the UMV-Youmi platform has partnered with over 20 banks, showing positive growth in C-end user numbers[32]. - The global credit card market is projected to grow at a compound annual growth rate of 5%-9% from 2023 to 2033, indicating growth potential for the company's credit card business[33]. - The company is focusing on promoting innovative products and services through the UMV platform, which has received positive feedback from C-end users[34]. - The transition from a traditional B2B business model to a B2C2B model is underway, leveraging the UMV digital platform to enhance customer engagement and marketing precision[35]. - The company aims to expand its global market presence by connecting various participants in the fintech industry and addressing differentiated needs across regions[36]. Financial Position and Liquidity - As of June 30, 2024, the company's total current assets were approximately RMB 1.712 billion, with a current ratio of about 4.1 and a quick ratio of about 3.4, indicating high liquidity[30]. - The company's current ratio improved to approximately 4.1 as of June 30, 2024, compared to 3.5 as of December 31, 2023, indicating strong liquidity[40]. - As of June 30, 2024, the company reported cash and cash equivalents totaling approximately RMB 1,163.0 million, a decrease from RMB 1,353.0 million as of December 31, 2023[40]. - The company's accounts receivable amounted to RMB 386,499,000 as of June 30, 2024, up from RMB 336,018,000 as of December 31, 2023[21]. - The total inventory as of June 30, 2024, was RMB 269,451,000, a decrease from RMB 301,577,000 as of December 31, 2023[23]. - Inventory costs decreased significantly to RMB 310,463,000 for the six months ended June 30, 2024, from RMB 451,990,000 in the same period of 2023, representing a reduction of 31.2%[14]. Employee and Operational Metrics - Total employee costs for the six months ended June 30, 2024, were RMB 98,080,000, slightly up from RMB 97,073,000 in the same period of 2023[14]. - The company employed 1,342 staff as of June 30, 2024, a reduction of 165 employees from 1,507 as of December 31, 2023[51]. - Total employee benefits expenditure, including director remuneration, was approximately RMB 111.1 million for the six months ended June 30, 2024, compared to RMB 109.8 million for the same period in 2023[51]. Compliance and Governance - The company did not adopt any new accounting standards that would have a significant impact on its financial performance for the current or foreseeable future reporting periods[9]. - The company anticipates that the newly issued accounting standards will not have a significant impact on its financial statements in the current or future reporting periods[10]. - The company has adhered to all provisions of the Corporate Governance Code as of June 30, 2024[53]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2024[55]. - The company's independent auditor has reviewed the interim financial information in accordance with the relevant standards[56]. - The interim results announcement and the 2024 interim report will be published on the company's and the stock exchange's websites[57]. Dividends and Capital Expenditure - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[18]. - The total capital expenditure for the six months ended June 30, 2024, was approximately RMB 11.7 million, down from RMB 15.2 million for the same period in 2023[42]. - The company has no significant investments or acquisitions in the six months ended June 30, 2024[45][46]. - The company has no major contingent liabilities as of June 30, 2024[44]. - The company has utilized approximately RMB 860.9 million of the net proceeds from its IPO for various purposes, including capacity expansion and market development[39]. Tax and Financial Income - The company reported a net financial income of RMB 866,000 for the six months ended June 30, 2024, compared to RMB 1,062,000 in 2023, indicating a decline of about 18.4%[12]. - The company's tax expense for the six months ended June 30, 2024, was RMB 1,026,000, a significant decrease from RMB 10,600,000 in the same period of 2023[16]. - The company reported a net foreign exchange gain of RMB 881,000 for the six months ended June 30, 2024, compared to a gain of RMB 3,975,000 in the same period of 2023[14].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[6]. - Revenue for the year ended December 31, 2023, was RMB 1,416,573, a decrease of 7.4% from RMB 1,530,251 in 2022[111]. - Profit for the year attributable to owners of the Company was RMB 132,051, down 10.4% from RMB 147,427 in 2022[111]. - The net profit margin improved to 10.7%, up 0.2 percentage points from 10.5% in 2022[111]. - Total assets as of December 31, 2023, were RMB 2,693,907, down from RMB 2,813,857 in 2022[113]. - Net assets increased to RMB 2,095,071 from RMB 2,070,563 in 2022[113]. - Revenue from markets outside the Chinese mainland grew by approximately 27.2% to approximately RMB296.7 million[92]. - Revenue from markets outside the Chinese mainland was approximately RMB319.9 million, accounting for approximately 22.6% of total revenue, with a significant year-on-year growth of approximately 27.5%[151]. - The Group's gross profit was approximately RMB420.1 million, with a gross profit margin increase of 3.3 percentage points to approximately 29.7%[151]. - Operating expenses decreased by approximately 10.1% year-on-year, while net profit decreased by approximately 6.1% to approximately RMB151.2 million, maintaining a net profit margin of approximately 10.7%[151]. Strategic Initiatives - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $625 million[6]. - New product launches included a state-of-the-art payment solution, expected to contribute an additional $50 million in revenue[6]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[6]. - A strategic acquisition of a local competitor was completed for $30 million, enhancing the company's service offerings[6]. - The Group aims to focus on four key strategies to increase market share, including consolidating efforts in UMV platform development and expanding secure payment technologies into multiple fields[163]. - The Group's digital platform integrates AI, privacy computing, and big data to meet the transformation needs of bank customers and SMEs, reshaping the traditional financial institution business model[135]. - The UMV platform aims to create an innovative ecosystem for the payment value chain, leveraging AI and big data to support small batches and rapid payment product issuance[170]. Research and Development - Research and development expenses increased by 30%, totaling $15 million, focusing on innovative technologies[6]. - The Group has continuously increased its investment in digital transformation and platform building, enhancing its information security system software and hardware[72]. - The Group owns close to 100 cutting-edge algorithms and three invention patents, focusing on AI applications such as facial recognition and speech recognition[82]. - The Group has developed nearly 100 high-performance AI algorithms and holds 3 invention patents, providing advanced technology services to clients[137]. Sustainability and ESG Commitment - The company emphasized its commitment to sustainability, with a goal to reduce carbon emissions by 40% by 2025[6]. - The Group emphasizes sustainable development as a long-term goal and actively integrates ESG factors into business decisions[26]. - The Group achieved SA8000 certification for its social responsibility management system and received the "2023 CLS•ESG ZhiYuan Award – Governance (G) Pioneer Enterprise Award" for its fintech digitalization strategy[30]. - The Group complies with all relevant environmental laws and regulations, focusing on energy saving, emission reduction, and waste management[41]. - The Group's environmental protection measures include energy consumption reduction, waste disposal management, and compliance with environmental regulations[58]. - The Group is focusing on green finance and low-carbon technology innovation, aligning with ESG development targets to create eco-friendly payment solutions[176]. Customer Engagement and Satisfaction - User data showed a 15% increase in active users, reaching 2 million by the end of the reporting period[6]. - Customer satisfaction ratings improved to 90%, reflecting enhanced service quality and user experience[6]. - The Group prioritizes employee welfare and safety, providing a fair and healthy work environment[42]. - The Group engages with the community through regular communications and community activities to address social issues[52]. Governance and Risk Management - The Board is responsible for overseeing ESG management policies, assessing ESG-related risks, and approving ESG reports[34]. - The Group's governance structure includes a decision-making layer led by the Board and an implementation layer involving all departments[36]. - The Group's risk management framework allows for proactive identification and management of risks, including ESG-related risks[40]. - The Group has established a risk management framework to systematically identify and manage risks, including ESG-related risks[49]. Market Challenges and Future Outlook - The global economic recovery faces challenges due to geopolitical turmoil and disrupted supply chains, impacting effective demand and exports in China[149]. - The Group's digital and platform-based strategy is expected to bring considerable potential for medium-to-long term strategic development[141]. - The Group is responding to the increasing demand for innovative technologies in customer acquisition and retention within the financial sector[172]. Shareholder Information - The company will suspend share transfer registration from May 16, 2024, to May 21, 2024, to determine shareholders eligible to vote at the annual general meeting[200]. - Share transfer forms must be submitted by May 14, 2024, at 4:30 PM to ensure voting rights at the AGM[200]. - The proposed final and special dividends will be distributed on June 28, 2024, pending approval at the AGM[200]. - The company will also suspend share transfer registration from June 3, 2024, to June 5, 2024, for determining shareholders eligible for the proposed dividends[200]. - Share transfer forms for dividend eligibility must be submitted by May 31, 2024, at 4:30 PM[200]. - The company’s registered office is located at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong[200].

Revenue and Profitability - Revenue for 2023 was RMB 1,416,573 thousand, a decrease of 7.4% from RMB 1,530,251 thousand in 2022[2] - The company reported a net profit of RMB 151,165 thousand for 2023, compared to RMB 160,979 thousand in 2022, reflecting a decline of 6.1%[2] - Total revenue for the year was RMB 1,416,573 thousand in 2023, up from RMB 466,792 thousand in 2022, indicating a significant growth[41] - Net profit was approximately RMB 151.2 million, representing a year-on-year decrease of about 6.1%[147] - The pre-tax profit for 2023 was RMB 173,733 thousand, compared to RMB 164,070 thousand in 2022, indicating a growth of approximately 5.1%[189] Gross Profit and Expenses - Gross profit increased to RMB 420,052 thousand, up 4.2% from RMB 403,136 thousand in the previous year[2] - The cost of goods sold decreased to RMB 848,085 thousand in 2023 from RMB 933,325 thousand in 2022, representing a reduction of approximately 9.1%[26] - Employee benefit expenses decreased to RMB 224,680 thousand in 2023 from RMB 250,861 thousand in 2022, a decline of about 10.4%[26] - Total sales costs, R&D expenses, selling and distribution expenses, and administrative expenses amounted to RMB 1,290,870 thousand in 2023, down from RMB 1,454,515 thousand in 2022, reflecting a decrease of approximately 11.3%[26] - Operating expenses decreased by approximately 10.1% year-on-year due to strategic advancements and refined management[97] Assets and Liabilities - Total assets included cash and cash equivalents of RMB 404,550 thousand, down from RMB 627,594 thousand in 2022[4] - Total assets as of December 31, 2023, were RMB 2.694 billion, down from RMB 2.814 billion in 2022[164] - Total liabilities decreased to RMB 598.8 million from RMB 743.3 million in the previous year[166] - Non-current assets totaled RMB 741.1 million, a decrease from RMB 994.8 million in 2022[150] - The current ratio as of December 31, 2023, was approximately 3.5, compared to 2.6 in 2022, indicating improved liquidity[77] Taxation - The income tax expense for 2023 was RMB 22,568 thousand, compared to RMB 3,091 thousand in 2022, showing a substantial increase[50] - The company continues to benefit from a preferential tax rate of 15% for high-tech enterprises, applicable for the years 2023 to 2025[51] - The company reported a tax expense of RMB 22,568 thousand for 2023, significantly higher than RMB 3,091 thousand in 2022, indicating a substantial increase in tax liabilities[189] Research and Development - Research and development expenses decreased to RMB 102,451 thousand, down 9.3% from RMB 112,955 thousand in 2022[2] - The company continues to focus on providing embedded software and secure payment products in the smart security payment sector, integrating innovative financial technology solutions[152] Market Performance - Revenue from embedded software and secure payment products in mainland China reached RMB 653,112 thousand in 2023, compared to RMB 443,611 thousand in 2022, an increase of about 47.2%[41] - Revenue from markets outside mainland China for the embedded software and secure payment products segment grew by approximately 27.2% year-on-year, reaching about RMB 296.7 million[70] - Revenue from markets outside mainland China amounted to approximately RMB 319.9 million, accounting for about 22.6% of total revenue, representing a significant year-on-year growth of approximately 27.5%[147] Strategic Initiatives and Future Outlook - The company plans to continue focusing on embedded software and secure payment products as key growth areas[15] - Future outlook includes potential market expansion and new product development initiatives[15] - The group plans to focus on four strategic initiatives: developing the UMV platform, enhancing new business layouts, advancing secure payment technologies, and expanding into global markets[100] - The group aims to build a comprehensive digital service platform utilizing AI, privacy computing, and big data analytics to innovate within the secure payment industry[72] Shareholder Returns - The board proposed a final dividend of HKD 0.10 per ordinary share (approximately RMB 0.092), down from HKD 0.12 in the previous year, and a special dividend of HKD 0.04 per ordinary share (approximately RMB 0.037), unchanged from the previous year[147] Financial Position - The group maintains a low debt-to-asset ratio of approximately 22.2%, reflecting a strong financial position[69] - The group has no bank borrowings as of December 31, 2023, compared to RMB 448 million in 2022[104] - The group has sufficient liquidity and financial resources to meet operational needs and support expansion plans[76] Inventory Management - Inventory decreased to RMB 301,577 thousand from RMB 362,621 thousand in 2022, indicating improved inventory management[4] - The total inventory value decreased from RMB 430,887 thousand in 2022 to RMB 301,577 thousand in 2023, a reduction of approximately 30%[197]

Revenue Performance - For the six months ended June 30, 2023, the Group's revenue from the embedded software and secure payment products segment was approximately RMB 477.3 million, representing a year-on-year growth of approximately 2.7%[15]. - The digital equipment business recorded revenue of approximately RMB 191.5 million, reflecting a year-on-year growth of 34.8%[17]. - The platform and service business segment achieved revenue of approximately RMB 268.6 million, which is a year-on-year growth of 9.7% and accounted for approximately 36.0% of the Group's total revenue[17]. - Revenue from overseas markets, including Hong Kong and Macao, reached approximately RMB 148.6 million, marking a significant year-on-year growth of approximately 66.7%[14]. - For the first half of 2023, the Group recorded revenue of approximately RMB 745.9 million, representing a year-on-year increase of approximately 5.1%[30]. - Revenue from overseas, Hong Kong, and Macau regions reached approximately RMB 159.4 million, with a significant year-on-year increase of approximately 65.4%[46]. - The platform and service business segment grew by approximately 9.7% year-on-year to about RMB 268.6 million, accounting for approximately 36.0% of the group's total revenue[51]. - The secure payment products segment saw revenue of approximately RMB 148.6 million from overseas, Hong Kong, and Macau, representing a year-on-year growth of approximately 66.7%[48]. - The group achieved revenue of approximately RMB 745.9 million for the six months ended June 30, 2023, representing a year-on-year growth of about 5.1%[46]. Financial Performance - The Group's gross profit margin improved by 1.7 percentage points to approximately 28.2%, with net profit of approximately RMB 85.6 million, a year-on-year increase of approximately 9.1%[30]. - Gross profit margin improved by 1.7 percentage points to approximately 28.2%, with net profit reaching approximately RMB 856 million, reflecting a year-on-year growth of about 9.1%[46]. - The Group's total assets as of June 30, 2023, were approximately RMB 2.78 billion, a decrease of 1.1% compared to the end of 2022[35]. - Current assets totaled approximately RMB 2.09 billion, representing a growth of approximately 15.1% compared to the end of 2022[35]. - The Group maintained a healthy financial position with adequate liquidity and financial resources to support daily operations and expansion plans[1]. - The current ratio of the Group as of June 30, 2023, was approximately 3.0, indicating strong liquidity compared to 2.6 as of December 31, 2022[127][130]. - The Group's total current assets increased by approximately 15.1% to RMB 2,094.3 million as of June 30, 2023, compared to RMB 1,819.0 million as of December 31, 2022[1]. - The Group's total trade receivables were approximately RMB 525.1 million as of June 30, 2023, up from RMB 340.3 million as of December 31, 2022[1]. - The Group had no bank borrowings as of June 30, 2023, compared to approximately RMB 44.8 million as of December 31, 2022[101]. - The Group's gearing ratio was approximately 26.6% as of June 30, 2023, slightly up from 26.4% as of December 31, 2022[101]. Strategic Initiatives - The Group is focusing on building its UMV platform to promote a digital ecosystem for green finance, aligning with the ongoing technological revolution and industrial transformation[11]. - The Group's strategic initiatives include enhancing its influence in the international market through participation in global conferences and exhibitions[14]. - The Group's digital transformation strategy is being fast-tracked to capitalize on the opportunities presented by the digital economy[17]. - The Group plans to promote the construction of the UMV platform to enhance customer service capabilities and improve traditional business processes[81]. - The Group aims to maintain stable core product business scale while developing environmentally friendly payment solutions, including eco-friendly cards and a digital issuance platform, to support financial institutions in achieving ESG goals[84]. - The Group plans to expand its overseas customer base and markets by utilizing the UMV platform for digital marketing services, enhancing market coverage and core business scale[85]. - The Group will explore untapped overseas markets to expand the reach of its secure payment products and card issuance solutions[83]. - The Group will transform its development under new market conditions, focusing on technological self-reliance and leveraging quality customer resources to explore new market opportunities[84]. - The UMV platform will enhance B-end customer service capabilities by digitizing traditional business processes, aiming to reduce costs and improve efficiency[84]. Research and Development - The Group's R&D of new products and services accounted for 35% of the utilized net proceeds, amounting to RMB 341.1 million[96]. - As of June 30, 2023, the Group has utilized approximately RMB 857.3 million of the net proceeds from its IPO for production capacity expansion, R&D, and market expansion[94]. - The total net proceeds from the IPO amounted to approximately RMB 975.0 million, with an unutilized balance of RMB 117.3 million as of June 30, 2023[96]. Employee and Governance - The Group employed 1,513 staff as of June 30, 2023, a decrease of 70 employees from 1,583 as of December 31, 2022, reflecting a streamlined organizational structure[162]. - Total employee benefits expenses for the six months ended June 30, 2023, were approximately RMB 109.8 million, down from approximately RMB 120.2 million for the same period in 2022[162]. - The company emphasizes employee performance and development through comprehensive training programs[166]. - The company provides competitive compensation and benefits, including social insurance plans for employees in mainland China[165]. - The company complies with the Corporate Governance Code and has confirmed adherence to the Model Code for Securities Transactions throughout the six months ended June 30, 2023[170]. - The Board consists of nine Directors, including six executive Directors and three independent non-executive Directors[167]. Shareholder Information - As of June 30, 2023, Chairman LU holds 299,759,422 shares through Goldpac International (Holding) Limited, representing a significant interest in the company[180]. - Mr. HOU Ping, a beneficial owner, holds 12,000,000 shares, accounting for 1.46% of the total shares[181]. - Cititrust Private Trust (Cayman) Limited holds 299,759,422 shares, representing 36.57% of the Company's total shares[190]. - Ms. Zhang Jian, as the spouse of Chairman LU, holds 301,499,422 shares, which is 36.79% of the Company's total shares[190]. - Agende des participations de l'Etat ("APE") has an interest in 152,931,181 shares, accounting for 18.66% of the Company's total shares[190]. - The interests held by Mr. LU Runyi include 47,120,000 shares transferred from GIHL on June 10, 2020[4]. - The interests of Mr. HOU Ping include 1,200,000 shares awarded under the Share Award Scheme[3]. Compliance and Risk Management - The Group has complied with all relevant laws and regulations related to its business, including anti-corruption and health and safety, during the six months ended June 30, 2023[136][160]. - The Group's environmental, social, and governance (ESG) management team has been actively managing and reporting on ESG aspects continuously during the six months ended June 30, 2023[158]. - The Group's emolument policies are periodically reviewed by the remuneration committee, ensuring alignment with individual performance and market statistics[163].

Revenue and Profit Growth - Total revenue for the six months ended June 30, 2023, reached RMB 745,884 thousand, an increase from RMB 709,419 thousand in the same period of 2022, representing a growth of approximately 5.1%[7] - Revenue from embedded software and secure payment products was RMB 477,310 thousand, up from RMB 464,555 thousand year-over-year, indicating a growth of about 2.5%[7] - Revenue from platforms and services increased to RMB 268,574 thousand, compared to RMB 244,864 thousand in the previous year, reflecting a growth of approximately 9.7%[7] - The gross profit for the six months ended June 30, 2023, was RMB 96,215 thousand, compared to RMB 85,947 thousand for the same period in 2022, marking an increase of around 14.0%[7] - The company reported a net profit before tax of RMB 96,215 thousand for the six months ended June 30, 2023, compared to RMB 85,947 thousand in the same period of 2022, an increase of about 11.8%[10] - The net profit for the same period was approximately RMB 856 million, reflecting a year-on-year increase of about 9.1%[34] - The gross profit margin improved by 1.7 percentage points to approximately 28.2%[34] - The company reported a profit of approximately RMB 85.6 million for the same period, reflecting a year-on-year increase of approximately 9.1%[90] - The company’s net profit margin was approximately 11.5%, an increase of 0.4 percentage points year-on-year[90] Dividend and Shareholder Returns - The company declared a final dividend of HKD 0.12 per share for the year ended 2022, totaling RMB 86,469 thousand, compared to RMB 69,292 thousand for the previous year, reflecting an increase of about 24.8%[17] - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to no interim dividend declared for the same period in 2022[17] Research and Development - Research and development costs for the period were RMB 3,976 thousand, significantly lower than RMB 26,889 thousand in the previous year, indicating a reduction of approximately 85.2%[7] - Future outlook includes continued investment in research and development for new technologies and products to enhance market competitiveness[98] Market Expansion and Strategy - The company is focusing on expanding its market presence in various sectors, including finance, government, healthcare, transportation, and retail, through innovative fintech solutions[5] - The group aims to expand its overseas customer base and markets by leveraging the UMV platform for digital marketing services[45] - The company is focused on expanding its embedded software and secure payment product offerings, integrating innovative fintech solutions across various sectors[98] - The group plans to enhance its B2B services through the UMV platform, aiming to digitize traditional business processes and improve customer service capabilities[44] - The company plans to explore market expansion opportunities and potential mergers and acquisitions to drive growth[98] Financial Position and Liquidity - The accounts receivable as of June 30, 2023, amounted to RMB 533.4 million, up from RMB 345.3 million as of December 31, 2022[24] - As of June 30, 2023, the group's current assets totaled approximately RMB 2.09 billion, representing a quarter-on-quarter increase of about 15.1%[40] - The group's liquidity ratios are strong, with a current ratio of approximately 3.0 and a quick ratio of about 2.5, while the debt-to-asset ratio stands at approximately 26.6%[40] - The total cash and cash equivalents, including bank deposits, amounted to approximately RMB 1.1484 billion as of June 30, 2023, down from RMB 1.3492 billion as of December 31, 2022[52] - The current ratio of the group as of June 30, 2023, was approximately 3.0, up from 2.6 as of December 31, 2022, indicating good liquidity[59] - As of June 30, 2023, the group had no bank borrowings, compared to RMB 44.8 million as of December 31, 2022[59] Environmental and Social Responsibility - The company is actively promoting green transformation and has developed a series of environmentally friendly payment products, achieving multiple patents and certifications[37] - The company is actively promoting the integration of digital technology and green finance, launching innovative low-carbon solutions for secure payments[90] - The group maintained compliance with all relevant laws and regulations related to environmental, social, and governance standards during the six months ended June 30, 2023[71] Operational Performance - The digital equipment business achieved revenue of approximately RMB 191.5 million, marking a year-on-year increase of approximately 34.8%[38] - The company expanded its international market presence, with revenue from overseas, Hong Kong, and Macau regions reaching approximately RMB 159.4 million, a year-on-year increase of about 65.4%[34] - The total employee benefits expenses, including directors' remuneration, amounted to approximately RMB 109.8 million for the six months ended June 30, 2023, down from RMB 120.2 million for the same period in 2022[72] - The company reported an increase in accounts receivable to RMB 525,058 thousand from RMB 340,322 thousand, marking a rise of approximately 54.3%[96] Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 2,783,853 thousand, a decrease from RMB 2,813,857 thousand as of December 31, 2022, reflecting a decline of approximately 1.1%[96] - The company's total liabilities were RMB 741.1 million as of June 30, 2023, slightly down from RMB 743.3 million as of December 31, 2022[95] - Accounts payable and notes payable amounted to RMB 462.8 million as of June 30, 2023, compared to RMB 336.7 million as of December 31, 2022[95] - The total current assets of the group as of June 30, 2023, were approximately RMB 2,094.3 million, representing a 15.1% increase from RMB 1,819.0 million as of December 31, 2022[58] - The total capital commitments of the group as of June 30, 2023, were approximately RMB 25.3 million, compared to RMB 24.0 million as of December 31, 2022[63]

Financial Performance - The Group achieved double-digit growth in both revenue and net profit in 2022 despite global challenges, including geopolitical turmoil and COVID-19 impacts[34]. - The Group's revenue for the year ended December 31, 2022, was RMB 1,530,251, representing an 11.2% increase from RMB 1,376,524 in 2021[56]. - Profit attributable to owners of the Company for the same period was RMB 147,427, a 6.7% increase from RMB 138,184 in 2021[56]. - The net profit margin improved to 10.5%, up from 10.0% in the previous year, reflecting a 0.5 percentage point increase[56]. - Revenue from embedded software and secure payment products reached RMB 1,009,115, a significant increase from RMB 752,828 in 2021[57]. - Revenue from platform and service decreased by 16.4% to RMB 521,136, down from RMB 623,696 in 2021[57]. - The Group recorded revenue of approximately RMB 1.53 billion for the year ended December 31, 2022, representing a year-on-year growth of approximately 11.2%[102]. - Net profit for the year was approximately RMB 161 million, reflecting a year-on-year increase of approximately 16.7%, with a net profit margin of about 10.5%[105]. - The Group's gross profit for the year was approximately RMB 403.1 million, a slight decrease of about 0.2% year-on-year due to rising costs of raw materials[103]. Strategic Initiatives - The Group has established a leadership position in the global industry, winning the trust of over 1,000 financial institutions and maintaining steady growth[34]. - The core strategy focuses on digitalization and platformization, with the UMV platform being a key product[41]. - The Group aims to leverage new technologies like Artificial Intelligence to enhance operational efficiency and meet personalized consumer needs[40]. - The Group aims to build a new ecosystem for the secure payment value chain, integrating Fintech innovation with the digital transformation needs of financial institutions[79]. - The Group plans to continue leveraging AI technology, privacy computing, and Big Data to enhance operational effectiveness and consumer acquisition capabilities[93]. - The Group aims to accelerate its digital and platform-based transformation to consolidate its leading market position and generate new growth momentum in the future[108]. Dividend and Shareholder Value - The Group has distributed over HKD 1.3 billion in dividends since its listing, reflecting its commitment to shareholder value[29]. - The Board proposed a final dividend of HKD 0.12 per share and a special dividend of HKD 0.04 per share for the year ended December 31, 2022[106]. - The Group has declared dividends exceeding HKD 1,300 million over the past 10 years since its listing[38]. Technological Advancements - The Digital RMB Hardware Wallet successfully passed the POC test of the Level 2 Digital Currency Operator, marking a significant technological advancement[30]. - The UMV platform launched AI voice call and intelligent image audit functions, enhancing the digital transformation capabilities for the finance industry[30]. - The Group's technologies have been recognized as world-class after passing stringent laboratory security tests, providing secure payment tools to over 5 billion consumers globally[32]. - The digital RMB hardware wallet has successfully passed the POC test, and the Group is collaborating with Bank of China Zhuhai Branch to establish a pilot digital RMB platform in the Guangdong-Hong Kong-Macao Greater Bay Area[146][148]. Market Expansion and Growth - Revenue from overseas, Hong Kong, and Macau regions reached approximately RMB 250.9 million, achieving a breakthrough growth of about 107.5%[102]. - The Group's core business embedded software and secure payment products saw revenue growth of approximately 34.0% year-on-year[102]. - The revenue from the embedded software and secure payment products in the Chinese mainland was approximately RMB 775.8 million, reflecting a year-on-year increase of approximately 14.8%[133]. - The Group is building a one-stop digital comprehensive financial service platform through the UMV platform to meet the diverse and personalized consumption needs of new generation C-end customers[143]. Financial Position and Assets - Total assets increased by 23.6% to RMB 2,813,857, compared to RMB 2,609,965 in 2021[58]. - The Group's net assets stood at RMB 2,070,563, slightly up from RMB 2,008,605 in the previous year[58]. - Total current assets amounted to approximately RMB 1,819 million, with a current ratio of approximately 2.6 and a quick ratio of approximately 2.1[104]. - The Group maintained a low gearing ratio of approximately 26.4%, indicating a high level of liquidity[104]. - As of December 31, 2022, the Group's total bank balances and cash reached approximately RMB 1,349.2 million, an increase of about 9.3% from RMB 1,233.6 million in 2021[165]. Future Plans and Investments - The Group plans to strengthen its presence in existing markets outside mainland China and finance future strategic alliances with complementary companies[163]. - The Group plans to focus on three key strategies: promoting digital and platform-based construction, expanding core business, and enhancing cross-domain application capabilities[167]. - The Group aims to develop secure payment products and solutions in alignment with the Chinese government's rural revitalization policy, expanding its market coverage[175]. - The Group will increase investment in innovative financial technology research and application, particularly in secure payment products for various industries[176]. Operational Challenges - Revenue from platform and service business segment's revenue decreased to approximately RMB 521.1 million, a year-on-year decline of approximately 16.4% due to COVID-19 impacts[136]. - The Group's current ratio was approximately 2.6, down from approximately 3.2 in 2021, indicating a decrease in liquidity[195]. - The Group's gearing ratio as of December 31, 2022, was approximately 26.4%, an increase from approximately 23.0% in 2021, reflecting a rise in financial leverage[195]. - The Group had no significant investments for the year ended December 31, 2022, indicating a conservative investment strategy[197].