Financial Performance - For the year ended December 31, 2022, the group recorded revenue of approximately RMB 1.53 billion, representing a year-on-year growth of approximately 11.2%[20] - The group achieved a gross profit of approximately RMB 403.1 million, a slight decrease of about 0.2% year-on-year, due to rising costs of key raw materials like chips amid ongoing global supply chain constraints[20] - The net profit for the year was approximately RMB 161 million, reflecting a year-on-year increase of about 16.7%, with a net profit margin of approximately 10.5%, up by 0.5 percentage points year-on-year[20] - Total revenue for 2022 was RMB 1,530,251, up 11.1% from RMB 1,376,524 in 2021[22] - The company reported a net profit before tax of RMB 164,070, an increase of 5.3% from RMB 154,939 in 2021[22] - The company reported a total comprehensive income for the year of RMB 166,688,000, up from RMB 135,668,000 in 2021, reflecting an increase of approximately 22.8%[161] Revenue Breakdown - Revenue from the core business of embedded software and secure payment products grew strongly, increasing by approximately 34.0% year-on-year[20] - Revenue from embedded software and secure payment products reached RMB 1,009,115, an increase of 33.9% from RMB 752,828 in 2021[22] - Revenue from the domestic market in China was RMB 1,279,351, while overseas markets contributed RMB 250,900[26] - Revenue from regions outside mainland China was approximately RMB 250.9 million, achieving a breakthrough growth of about 107.5%[20] - The platform and service business segment recorded revenue of approximately RMB 521.1 million, a year-on-year decline of about 16.4%, accounting for approximately 34.1% of total revenue[109] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.12 per ordinary share (equivalent to approximately RMB 0.105), an increase from HKD 0.10 in the previous year, along with a special dividend of HKD 0.04 per ordinary share (equivalent to approximately RMB 0.035)[20] - The company proposed a final dividend of HKD 0.12 per share for 2022, compared to HKD 0.10 per share in 2021, which is a 20% increase[51] Costs and Expenses - Research and development costs were RMB 112,955, compared to RMB 120,502 in 2021, indicating a decrease of 6.1%[22] - Total sales, research and development, and administrative expenses amounted to RMB 1,454,515, an increase of 15.4% from RMB 1,259,883 in 2021[37] - The company reported a net financial cost of RMB 8,499, compared to RMB 783 in 2021, indicating a significant increase in financial expenses[22] Assets and Liabilities - The company's current assets totaled approximately RMB 1.82 billion, with a year-on-year growth of about 1.9% and a debt-to-asset ratio of approximately 26.4%[106] - Total assets increased to RMB 2,813,857 thousand in 2022, up from RMB 2,609,965 thousand in 2021, representing a growth of approximately 7.8%[166] - Total liabilities increased to RMB 743,294 thousand in 2022, up from RMB 601,360 thousand in 2021, which is an increase of approximately 23.5%[167] - The asset-liability ratio as of December 31, 2022, was approximately 26.4%, compared to 23.0% in 2021[132] Inventory and Receivables - The total inventory cost recognized as an expense for the year ended December 31, 2022, was RMB 933,325,000, up from RMB 826,971,000 in 2021, indicating an increase of about 12.87%[80] - The total inventory as of December 31, 2022, was RMB 362,621,000, compared to RMB 286,921,000 in 2021, reflecting a rise of approximately 26.36%[79] - The accounts receivable net value as of December 31, 2022, was RMB 340,322,000, slightly down from RMB 342,339,000 in 2021, showing a decrease of about 0.59%[82] - The aging analysis of accounts receivable showed that the amount overdue for more than one year increased to RMB 26,272,000 in 2022 from RMB 14,120,000 in 2021, representing an increase of approximately 86.61%[83] Strategic Initiatives - The company is actively expanding its business related to the third-generation social security card in mainland China, with revenue from this segment in the domestic market reaching approximately RMB 775.8 million, a year-on-year increase of about 14.8%[109] - The company aims to leverage new technologies such as 5G, blockchain, and artificial intelligence to expand its secure payment products and solutions into various industries[117] - The group aims to build an innovative ecosystem for a secure payment industry as part of its transformation strategy[119] - The Zhuhai Financial Technology Center was put into use in Q4 2022, aiming to attract high-quality talent and projects from the Guangdong-Hong Kong-Macao Greater Bay Area[118] Employee and Compensation - The company employed 1,583 staff as of December 31, 2022, a decrease of 41 employees compared to 1,624 at the end of 2021[147] - Total employee compensation, including directors' remuneration, amounted to approximately RMB 250.9 million for the year, compared to RMB 216.3 million in 2021, marking an increase of about 15.9%[147] Investments and Capital Expenditure - The group reported a capital expenditure of approximately RMB 67.0 million for the year ended December 31, 2022, down from RMB 81.7 million in 2021[135] - The company has no significant investments or capital asset plans for 2023[139] Governance and Compliance - The company maintained compliance with all provisions of the Corporate Governance Code as of December 31, 2022[151]

Financial Performance - Revenue for the first half of 2022 reached RMB 709,419,000, representing a 14.5% increase compared to RMB 619,688,000 in the same period of 2021[9] - Net profit for the period was RMB 81,975,000, a 21.3% increase from RMB 67,570,000 in the first half of 2021[9] - The Group achieved over 10% growth in both revenue and net profit during the first half of 2022 despite challenges from the pandemic and supply chain fluctuations[15] - The gross profit for the first half of 2022 was RMB 188,299,000, a slight decrease of 0.7% from RMB 189,681,000 in the same period of 2021[9] - The recorded profit for the period is approximately RMB78.5 million, representing a year-on-year increase of approximately 14.8%, with a net profit margin of approximately 11.1%[18] - Profit before income tax increased to RMB 85,947,000, up 10.4% from RMB 77,890,000 in the prior year[187] - Profit for the period attributable to owners of the Company was RMB 75,766,000, compared to RMB 69,050,000 in the previous year, reflecting an increase of 9.9%[187] - Total comprehensive income for the period was RMB 81,975,000, compared to RMB 67,570,000 in the same period last year, representing a growth of 21.3%[187] - Earnings per share (basic and diluted) for the period was 9.3 cents, an increase from 8.4 cents in the prior year[187] Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 2,798,930,000, reflecting a 7.2% increase from RMB 2,609,965,000 at the end of 2021[10] - Total liabilities increased by 34.1% to RMB 806,213,000 as of June 30, 2022, compared to RMB 601,360,000 at the end of 2021[10] - The Group's total current assets as of June 30, 2022, were approximately RMB 1,853.7 million, reflecting an increase of approximately 3.8% from RMB 1,785.2 million as of December 31, 2021[71] - Trade receivables increased significantly to RMB 573,977,000 from RMB 342,339,000, reflecting a growth of 67.6%[189] - Inventories rose to RMB 348,131,000, compared to RMB 286,921,000, marking an increase of 21.3%[189] - Total current liabilities rose to RMB 771,430,000, up from RMB 566,686,000, indicating an increase of about 36.1%[190] Cash Flow and Financing - Net cash used in operating activities amounted to $(273,835) for the period[200] - Net cash generated from investing activities was $183,472, compared to $174,764 in the previous period[200] - Net cash generated in financing activities was $42,465, a significant improvement from $(97,279) in the prior period[200] - Proceeds from bank borrowings were $142,360, indicating active financing efforts[200] - The company reported a net decrease in cash and cash equivalents of $(47,898) for the period[200] Market and Strategic Focus - The Group is focusing on digitalization and platform-based strategies to enhance competitiveness in the secure payment field[15] - The global credit card industry is expected to continue steady growth, driven by rising inflation and the Chinese government's promotion of third-generation social security cards[35][39] - The market for A.I. self-service kiosks is projected to expand due to increasing global labor costs and the integration of advanced technologies in China[36][39] - The Group's next-generation secure payment embedded software received international certification in the first half of 2022, enhancing its competitive edge in the credit card industry[43][48] Employee and Governance - The Group's employee count increased to 1,631 as of June 30, 2022, up from 1,624 at the end of 2021, reflecting a growth of 7 employees[95] - For the six months ended June 30, 2022, total staff costs were approximately RMB 107.3 million, compared to approximately RMB 95.0 million for the same period in 2021, representing an increase of about 12.2%[95] - The Group's ESG management team has continuously managed, monitored, and reported on environmental, social, and governance aspects during the six months ended June 30, 2022[92] - The Group has complied with all relevant laws and regulations, including anti-corruption and health and safety, during the period ended June 30, 2022[93] Shareholder Information - As of June 30, 2022, the company had a total of 824,691,000 shares issued[160] - Mr. LU Run Ting holds 299,759,422 shares, representing a 36.35% interest in the company[140] - Ms. ZHANG Jian, spouse of Chairman LU, holds 301,499,422 shares, representing a 36.56% interest in the Company[164] - The total number of issued shares of the Company as of June 30, 2022, was 824,691,000[164] - The company did not incur any expenses related to the grant of incentive shares during the six months ended June 30, 2022[132]

Financial Performance - Revenue for the year ended December 31, 2021, was RMB 1,376,524, an increase of 7.4% from RMB 1,281,903 in 2020[17] - Profit for the year attributable to owners of the Company was RMB 138,184, a decrease of 5.1% from RMB 145,665 in 2020[17] - Gross profit margin decreased to 29.4% from 29.9%, while net profit margin decreased to 10.0% from 11.3%[17] - For the year ended December 31, 2021, the Group recorded revenue of approximately RMB1.377 billion, representing a year-on-year increase of approximately 7.4%[57] - The net profit for the year was approximately RMB138.0 million, reflecting a year-on-year decrease of approximately 5.0%[62] - The Group achieved a gross profit of approximately RMB404.0 million, with a gross margin of 29.4%, despite cost pressures from rising raw material prices[61] Assets and Liabilities - Total assets increased by 1.3% to RMB 2,609,965, and total liabilities increased by 3.7% to RMB 601,360 as of December 31, 2021[18] - The net assets of the Company increased by 0.6% to RMB 2,008,605 as of December 31, 2021[18] - Total current assets as of December 31, 2021, amounted to approximately RMB1.79 billion, a year-on-year decrease of about 11.7%[63] - The Group maintained a high current ratio of approximately 3.2 and a low gearing ratio of approximately 23.0%[63] Revenue Segmentation - Embedded software and secure payment products generated revenue of RMB 752,828, while platform and service revenue was RMB 623,696[17] - The platform and service segment recorded revenue of approximately RMB 624.0 million, representing a year-on-year increase of approximately 16.8%, accounting for 45.3% of the Group's total revenue[77] - The digital equipment business experienced a significant growth trend, with revenue increasing by approximately 24.4% year-on-year, rising to approximately 27.9% of the Group's total revenue[77] - The overseas business generated revenue of approximately RMB 121.0 million, reflecting a year-on-year increase of approximately 33.8%[78] Strategic Initiatives - The Group aims to drive innovation through technology as part of its strategic initiatives[20] - The Group plans to implement a "Digitization and Platform Innovation Strategy" focusing on five key business strategies, including expanding secure transaction technologies into new areas like digital currencies[79] - The Group is committed to advancing a "digitalization and platform-based innovation expansion" strategy to meet the digital transformation needs of core customers[48] - The Group is focused on creating a digital business ecosystem through the integration of new-generation information technologies, aiming to innovate traditional marketing models and services[40] Research and Development - Research and development costs increased by approximately 9.7% compared to the previous year, with 38 new patents and software copyrights registered[62] - The Group has taken the lead in R&D investment for digital currency products, including cryptocurrency hardware wallets and digital currency security application systems[92] - The Group's digital transformation efforts include the integration of AI, big data, and image processing technologies to improve customer service[108] Environmental and Social Responsibility - The Company received the Outstanding Corporate Social Responsibility Award from Daily Mirror in 2021[21] - The Group has launched various environmentally friendly products and actively promoted photovoltaic power generation projects, identifying green and low-carbon development as a key support pillar for enterprise growth[41] - The Group is committed to maintaining high levels of environmental and social standards, preparing an ESG report in accordance with relevant guidelines[141] Employee and Human Resources - As of December 31, 2021, the Group employed 1,624 employees, a decrease of 19 from 1,643 employees as of December 31, 2020[150] - Total employee benefits expenses, including Directors' emoluments, for the year ended December 31, 2021, amounted to approximately RMB 216.3 million, compared to approximately RMB 198.0 million for the year ended December 31, 2020, reflecting an increase of about 9.6%[150] - The Group is committed to providing specialized and challenging career development and training programs to enhance employees' knowledge and skills[148] Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 10% to 12% based on current market trends and user acquisition strategies[165] - New product launches are expected to contribute an additional 200 million in revenue in 2022, focusing on enhanced security payment solutions[165] - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[165] Acquisitions and Investments - A strategic acquisition of a fintech startup is anticipated to close in Q3 2022, which is expected to enhance the company's technological capabilities and customer base[165] - The company has established partnerships with three major banks to enhance its service offerings, which is expected to drive a 15% increase in transaction volume in 2022[165] ESG Reporting - The ESG report outlines the company's policies, strategies, practices, and performance in environmental and social areas for the year 2021[197] - The report aims to provide a comprehensive overview of the company's governance information in the annual report[197] - The company adheres to the requirements of the Hong Kong Stock Exchange's ESG reporting guidelines[197]

Financial Performance - For the six months ended June 30, 2021, the Group recorded revenue of approximately RMB 619.7 million, representing a year-on-year increase of approximately 12.2%[15]. - Gross profit for the same period was approximately RMB 189.7 million, reflecting a year-on-year increase of approximately 19.2%[16]. - The gross profit margin increased by approximately 1.8 percentage points year-on-year[16]. - Operating profit was approximately RMB 85.2 million, representing a year-on-year increase of approximately 4.6%[16]. - Net profit for the period was approximately RMB 68.4 million, a year-on-year decrease of approximately 16.6%[17]. - If excluding the book loss from exchange rate fluctuations, the year-on-year net profit would have increased by approximately 7.2%[17]. - Revenue from the Embedded Software and Secure Payment Products segment was RMB 360.8 million, up 10.1% from RMB 327.6 million in H1 2020[9]. - Revenue from the Platform and Service segment was RMB 258.9 million, reflecting a year-on-year increase of 15.1% from RMB 224.8 million in H1 2020[10]. - The Group's net profit for the six months ended June 30, 2021, was approximately RMB 68.4 million, a year-on-year decrease of approximately 16.6%, primarily due to foreign exchange losses[19]. - Profit for the period attributable to owners of the Company was RMB 69,050,000, a decrease of 15.9% from RMB 82,084,000 in the prior year[147]. - Total comprehensive income for the period was RMB 67,570,000, down from RMB 83,314,000 in the previous year[147]. - Basic and diluted earnings per share for the period were both 8.4 cents, compared to 9.9 cents in the same period last year[147]. Assets and Liabilities - Total assets as of June 30, 2021, were RMB 2,535.1 million, a decrease of 1.6% from RMB 2,577.3 million as of December 31, 2020[11]. - Net assets as of June 30, 2021, were RMB 1,970.3 million, down 1.4% from RMB 1,997.5 million as of December 31, 2020[11]. - The total assets of the Group as of June 30, 2021, were RMB 1,200,000,000, reflecting a stable financial position[149]. - Total non-current assets increased to RMB 773,358,000 from RMB 556,533,000, representing a growth of 39%[150]. - Current assets decreased to RMB 1,761,758,000 from RMB 2,020,730,000, a decline of 13%[150]. - Total liabilities decreased to RMB 564,805,000 from RMB 579,727,000, a reduction of 3%[155]. - Trade receivables increased to RMB 393,299,000 from RMB 271,046,000, a growth of 45%[150]. - Inventories rose to RMB 221,155,000 from RMB 190,375,000, an increase of 16%[150]. Cash Flow and Dividends - The Group proposed an interim dividend of HK2.5 cents (approximately RMB2.1 cents) per ordinary share for the six months ended June 30, 2021[23]. - The company paid dividends amounting to RMB 94,795,000 during the reporting period, compared to RMB 5,501,000 in the previous year[164]. - For the six months ended June 30, 2021, the net cash used in operating activities was RMB 93,009,000, compared to RMB 94,050,000 in the same period of 2020[164]. - Cash generated from investing activities amounted to RMB 174,764,000, a significant increase from RMB 92,377,000 in the previous year[164]. - The company reported a net decrease in cash and cash equivalents of RMB 15,524,000, while cash and cash equivalents at the end of the period were RMB 361,209,000, up from RMB 248,849,000 in 2020[164]. Research and Development - Research and development costs for the period were RMB 55,344,000, an increase from RMB 49,580,000 in the prior year[147]. - The Group's investment in research and development resources aims to strengthen its core technology advantages in software systems and A.I. image processing[42]. - The Group is focusing on developing digital currency-related products and solutions based on its secure chip operating system, aligning with China's strategy to release digital currency[36]. Strategic Initiatives - The Group's strategy focuses on "Promoting Digital Platform and Deepening Fintech Innovation," leveraging digital transformation opportunities within major financial customers[29]. - The UMV platform utilizes customer resources, technology, and supply chain advantages to create an innovative ecosystem for financial payment products[39]. - The self-service kiosks business aligns with the digital transformation trend and the "contact-free" economic activities, leveraging the Group's resource advantages[39]. - The "Zhuhai Fintech Center" is set to officially operate in Q4 2021, aiming to build a fintech park with significant influence in the Guangdong-Hong Kong-Macao Greater Bay Area[48]. Corporate Governance and Shareholder Information - The Company has complied with all Code Provisions as set out in the Corporate Governance Code throughout the six months ended June 30, 2021[102]. - The company maintains a register of substantial shareholders' interests as required by the SFO[123]. - The interests of directors and substantial shareholders are disclosed in accordance with the SFO[127]. - Mr. LU Run Ting, the Chairman, holds 299,759,422 shares, representing approximately 35.96% of the Company[116]. - Mr. LU Runyi holds 48,321,000 shares, representing approximately 5.8% of the Company[116]. - The company has no significant contracts with controlling shareholders during the six months ended June 30, 2021[131].

Financial Performance - Revenue for the year ended December 31, 2020, was RMB 1,281,903,000, a decrease of 9.4% from RMB 1,415,665,000 in 2019[19] - Profit for the year attributable to owners of the Company was RMB 145,665,000, down 17.8% from RMB 177,125,000 in 2019[19] - Gross profit margin improved to 29.9%, up 1.7 percentage points from 28.2% in 2019[19] - Net profit margin decreased to 11.3%, down 1.2 percentage points from 12.5% in 2019[19] - For the year ended December 31, 2020, the Group recorded revenue of approximately RMB1.28 billion, representing a year-on-year decrease of approximately 9.4%[97] - The Group's gross profit for the same period was approximately RMB383.8 million, with a gross margin increase of approximately 1.7 percentage points to approximately 29.9%[97] - The net profit for the year was approximately RMB145.3 million, reflecting a year-on-year decrease of approximately 17.7%, but would have increased by approximately 5.6% if excluding exchange losses[97] Revenue Breakdown - Revenue from embedded software and secure payment products was RMB 747,781,000, down from RMB 980,012,000 in 2019[20] - Revenue from platform and service increased to RMB 534,122,000, up from RMB 435,653,000 in 2019[20] - The platform and service segment recorded revenue of approximately RMB534.1 million, a year-on-year increase of approximately 22.6%, accounting for approximately 41.7% of the Group's total revenue[109] - Revenue from the embedded software and secure payment products segment decreased approximately 23.7% year-on-year to approximately RMB747.8 million, outperforming the industry average[110] - Revenue from the platform and services segment grew approximately 22.6% year-on-year to approximately RMB534.1 million, increasing its share of total revenue from about 30.8% to approximately 41.7%[111] - Overseas business revenue was approximately RMB90.4 million, representing a decrease of 9.3% year-on-year due to the pandemic impact in Southeast Asia and other regions[112] Assets and Liabilities - Total assets as of December 31, 2020, were RMB 2,577,263,000, a decrease of 2.2% from RMB 2,635,228,000 in 2019[21] - Net assets as of December 31, 2020, were RMB 1,997,536,000, a slight decrease of 0.3% from RMB 2,004,404,000 in 2019[21] - As of December 31, 2020, the Group's total bank balances and cash reached approximately RMB1,344.7 million, a decrease of about 6.4% from RMB1,437.1 million in 2019[181] - The Group's current assets amounted to approximately RMB2,020.7 million, representing an increase of approximately 5.1% compared to RMB1,922.8 million in 2019[181] - The Group's current ratio improved to approximately 3.7 as of December 31, 2020, compared to approximately 3.2 in 2019, indicating strong liquidity[181] - The gearing ratio as of December 31, 2020, was approximately 22.5%, a slight decrease from 23.9% in 2019[183] - The Group's trade receivables were approximately RMB271.0 million as of December 31, 2020, down from RMB328.3 million in 2019[181] Strategic Initiatives - Goldpac passed the ISO/IEC20000 IT Service Management System Certification in 2020[24] - Goldpac and American Express established a joint venture clearing house in China to support the issuance of American Express RMB cards[24] - The Group achieved results exceeding the overall industry level despite the uncertainties brought by the COVID-19 pandemic in 2020[50] - The Group is committed to becoming a trustworthy provider for fintech products and services, focusing on digitalization and platform-based strategies[51] - The UMV platform has been successfully connected to banks, marking an important step in the Group's digital transformation efforts[51] - In 2021, the Group plans to invest more resources into the UMV platform and promote the upgrading of the original supply chain system[52] - The UMV platform will enhance overseas market expansion and improve customer engagement through digital transformation[59] - The Group aims to provide advanced fintech products and services globally by changing the traditional supply chain model[59] - The Group will continue to prioritize independent research and development to enhance security and compliance in the financial payment industry[64] - The pandemic has accelerated the demand for innovative ecosystems in the financial industry, presenting opportunities for the Group's UMV platform[58] - The Group will focus on self-service needs in key application industries such as government, finance, and healthcare through digital equipment[60] - The Group has nearly 30 years of accumulated assets in customer relationships, technology, and brand, which will drive future business growth[51] Investments and Capital Expenditure - As of December 31, 2020, the company utilized approximately RMB 827.6 million of the net proceeds from the IPO for various purposes[174] - 35% of the net proceeds (RMB 341,113,000) were allocated for R&D of new products and services, fully utilized[177] - 35% of the net proceeds (RMB 341,113,000) were designated for production facility expansion, with RMB 259,465,000 utilized and RMB 81,648,000 unutilized[177] - 10% of the net proceeds (RMB 97,461,000) were allocated for financing future strategic alliances, with RMB 32,120,000 utilized and RMB 65,341,000 unutilized[177] - The total net proceeds from the IPO amounted to RMB 974,609,000, with RMB 146,989,000 remaining unutilized as of December 31, 2020[177] - The Group's capital expenditure for the year ended December 31, 2020, was approximately RMB80.3 million, down from RMB94.3 million in 2019[184] - The Group's capital commitment increased to approximately RMB68.1 million as of December 31, 2020, from RMB24.8 million in 2019, primarily due to the construction of the "Zhuhai Fintech Center"[184] - The Group plans to utilize its own funds and a bank loan of approximately RMB149.0 million for the construction of the "Zhuhai Fintech Center" in 2021[188] COVID-19 Impact and Response - The COVID-19 pandemic has impacted economic development but is not expected to have a significant effect on the group's business[158] - The Group will improve pandemic prevention measures and continuously review management processes to mitigate potential adverse impacts on operations[138] - No material events occurred after December 31, 2020, up to the date of the annual report[158] Governance and Compliance - The Group's ESG management team managed, monitored, and reported on environmental and social aspects during the year ended December 31, 2019[191] - The Group complied with all relevant laws and regulations related to health and safety, workplace conditions, employment, and the environment in all material aspects[191]

Financial Performance - For the six months ended June 30, 2020, the Group recorded revenue of approximately RMB 552.5 million, representing a year-on-year decrease of approximately 15.4%[14]. - The net profit for the same period was approximately RMB 82.0 million, reflecting a year-on-year decrease of approximately 6.0%[14]. - The Group's gross margin increased by approximately 0.3 percentage points to approximately 28.8%, while the net profit margin increased by approximately 1.4 percentage points to approximately 14.8%[14]. - Revenue from the embedded software and secure payment products segment decreased approximately 30.5% year-on-year to approximately RMB 327.6 million, accounting for approximately 59.3% of total revenue[20]. - The platform and service segment recorded revenue of approximately RMB 224.8 million, representing a year-on-year increase of approximately 23.8%, accounting for approximately 40.7% of total revenue[20]. - Revenue for the six months ended June 30, 2020, was RMB 552,453,000, a decrease of 15.4% compared to RMB 653,143,000 for the same period in 2019[151]. - Gross profit for the period was RMB 159,093,000, resulting in a gross margin of approximately 28.8%[151]. - Profit for the period was RMB 81,999,000, down 6.4% from RMB 87,244,000 in the prior year[151]. - Total comprehensive income for the period was RMB 83,314,000, slightly down from RMB 83,734,000 in the same period last year[151]. - Basic earnings per share for the period were 9.9 cents, compared to 10.6 cents for the same period in 2019[151]. Assets and Liabilities - As of June 30, 2020, total assets were approximately RMB 2.49 billion, including current assets of approximately RMB 1.97 billion[15]. - The total liabilities decreased by approximately 15.4% from RMB 630.8 million to RMB 533.8 million[11]. - The Group's total assets as of June 30, 2020, were approximately RMB 2.49 billion, with current assets of approximately RMB 1.97 billion[18]. - Total assets decreased from RMB 2,635,228,000 to RMB 2,494,545,000, a decline of approximately 5.35%[156]. - Total current assets increased from RMB 1,922,784,000 to RMB 1,971,775,000, an increase of about 2.54%[156]. - Total non-current assets decreased from RMB 712,444,000 to RMB 522,770,000, a decline of approximately 26.61%[156]. - Total liabilities decreased from RMB 630,824,000 to RMB 533,829,000, a reduction of about 15.43%[157]. - Total equity decreased from RMB 2,004,404,000 to RMB 1,960,716,000, a decline of approximately 2.18%[157]. Cash Flow and Investments - The Group's cash flow position remains stable, with no significant changes reported in cash flows from operating activities[151]. - For the six months ended June 30, 2020, the net cash used in operating activities was RMB (94,050,000), an increase from RMB (72,846,000) in the same period of 2019, representing a 29.1% increase[168]. - Cash flows from investing activities generated a net cash of RMB 92,377,000, compared to RMB 70,999,000 in the previous year, reflecting a 30.0% increase[168]. - The total cash and cash equivalents at the end of the period were RMB 248,849,000, down from RMB 277,110,000 at the end of June 2019, indicating a decrease of 10.2%[168]. - The company paid dividends amounting to RMB (121,501,000), slightly increasing from RMB (116,551,000) in the previous year, which is a 4.0% increase[168]. Dividends - The Group declared an interim dividend of HK 3.0 cents (approximately RMB 2.7 cents) per ordinary share, down from HK 4.0 cents (approximately RMB 3.6 cents) for the same period in 2019[16]. - An interim dividend of HK3.0 cents per ordinary share has been declared, amounting to approximately RMB22,379,000[51]. - The interim dividend declared is HKD 0.03 per share, amounting to approximately RMB 22,379,000, compared to RMB 29,935,000 for the same period last year[52]. Strategic Initiatives - The demand for online solution services and AI self-service kiosks has increased due to the COVID-19 pandemic, positively impacting the Group's operations[13]. - The Group aims to enhance product differentiation and invest in personalized product development to support bank customers in improving market competitiveness[30]. - The Group plans to expand its fintech business portfolio and overseas markets as part of its strategic directions[30]. - The Group plans to enhance its A.I. self-service kiosks to meet the "contact-free" business demands from various industries, increasing investment in R&D[37]. - The Group will focus on expanding its fintech business by establishing collaborations and developing high-quality fintech products[39]. - The Group will utilize digital solutions to expand its overseas customer base and enhance customer value through leading fintech products[44]. - The Group's digital transformation strategy includes building a digital sales and service platform to improve customer engagement and operational efficiency[40]. - The Group's focus on the Guangdong-Hong Kong-Macao Greater Bay Area aims to leverage geographical advantages for further market expansion[44]. Governance and Management - The Board consists of nine Directors, including six executive Directors and three independent non-executive Directors[99]. - The Company has adopted the Corporate Governance Code and believes it has complied with all Code Provisions throughout the six months ended June 30, 2020[106]. - The Audit Committee comprises three independent non-executive Directors and has reviewed the Interim Report[121]. - Ms. LI Yijin, aged 50, has approximately 25 years of experience in accounting, auditing, and financial reporting, and has been appointed as an executive Director since May 2020[102]. Research and Development - Research and development costs amounted to RMB 49,580,000, representing a decrease from RMB 51,434,000 in the previous year[151]. - The Group did not purchase from Gemalto N.V. during the six months ended June 30, 2020, as part of its commitment to self-driven R&D, with the purchasing volume expected to remain below 0.1% annually[82]. Market and Revenue Segmentation - The company is engaged in the manufacture and sale of embedded software and secure payment products, leveraging innovative financial technology across various sectors including finance, government, and healthcare[170]. - Revenue from Mainland China was RMB 509,840,000, while revenue from Hong Kong and Macao was RMB 42,613,000[189]. - The embedded software and secure payment products segment is a key driver of the company's revenue growth[198]. - The company aims to leverage innovative Fintech solutions to enhance its service offerings[200].

Financial Performance - Revenue for the year ended December 31, 2019, was RMB 1,415,665,000, representing a slight increase of 0.3% from RMB 1,411,127,000 in 2018[15] - Profit for the year attributable to owners of the Company was RMB 177,125,000, up by 1.1% from RMB 175,187,000 in the previous year[15] - Gross profit margin improved to 28.2% in 2019 from 27.6% in 2018, an increase of 0.6 percentage points[15] - Net profit margin increased to 12.5% in 2019, compared to 12.4% in 2018, reflecting a 0.1 percentage point rise[15] - In 2019, the Group's revenue was approximately RMB1,416.0 million, flat from last year, with a net profit of approximately RMB176.0 million, representing a year-on-year increase of approximately 1.0%[46] - The gross profit increased by approximately 2.2% year-on-year to approximately RMB399.0 million, and the gross margin improved by 0.6 percentage points to approximately 28.2%[46] Revenue Breakdown - Revenue from embedded software and secure payment products decreased to RMB 980,012,000 from RMB 1,110,420,000, a decline of 12%[16] - Revenue from platform and service increased significantly to RMB 435,653,000 from RMB 300,707,000, marking a growth of 44.8%[16] - The Group's embedded software and secure payment products segment recorded revenue of approximately RMB980.0 million, representing a decrease of approximately 11.7% year-on-year[54] - The platform and service segment's revenue increased approximately 44.9% year-on-year to approximately RMB 436.0 million, accounting for approximately 30.8% of the Group's total revenue, up from 21.3% in 2018[68] - Overseas revenue reached approximately RMB 99.0 million, representing a year-on-year increase of approximately 21.3%[69] Strategic Initiatives - Goldpac was awarded the 2019 Hong Kong Awards for Industries: the Award of Smart Productivity, highlighting its innovation in technology[19] - Goldpac and China Mobile (Guangdong) launched a strategic cooperation to build the first 5G+Fintech Innovation Demonstration Base in the Greater Bay Area[21] - The Group plans to consolidate its core competitiveness in smart secure payment products by promoting customized and fashionable high value-added products[35] - The Group is building a bank-oriented credit card ecological service platform to maximize value contribution through integrated industry resources[38] - The Group aims to consolidate core business advantages, accelerate diversified payment development, and expand overseas markets as part of its corporate strategy[70] Innovation and Development - The Group maintained steady business momentum in 2019, with significant growth in the platform and service segment, driven by innovation[32] - The demand for fashionable, high value-added, and innovative products continued to grow, enhancing customer reliance on the platform and service segment[33] - The development of multi-functional AI self-service kiosks is aimed at enhancing customer value and expanding the customer base[38] - The Group plans to increase R&D investment in new materials, technology, and eco-friendly products to enhance the attractiveness of smart secure payment products[75] - The Group has established cooperation agreements with several companies in the IoT sector to actively participate in software and hardware R&D and applications[93] Financial Position - Total assets as of December 31, 2019, were RMB 2,635,228,000, a slight increase of 0.3% from RMB 2,628,452,000 in 2018[17] - Net assets rose to RMB 2,004,404,000, up by 1.2% from RMB 1,980,083,000 in the previous year[17] - As of December 31, 2019, the Group's current assets totaled approximately RMB1,922.8 million, providing strong support for advancing innovative business[47] - The Group's cash and bank balances reached approximately RMB 1,437.1 million as of December 31, 2019, an increase from RMB 1,351.5 million in 2018[112] - The Group maintained a current ratio of approximately 3.2 as of December 31, 2019, indicating strong liquidity[112] Corporate Governance and Management - The board consists of nine directors, including six executive directors and three independent non-executive directors[132] - The chairman and executive director, LU Run Ting, has over 25 years of experience in the financial card industry[135] - The chief executive officer, HOU Ping, has over 30 years of experience in the banking industry, including over 20 years in the card industry[145] - The Company has a strong management team with extensive experience in the banking and security payment sectors, enhancing its operational capabilities[149] - The Company has been focusing on enhancing its corporate governance and social responsibility initiatives[128] Employee and Social Responsibility - The group employed 1,711 employees as of December 31, 2019, a decrease of 24 from 1,735 employees at the end of 2018[128] - The group provides social insurance plans for all employees in mainland China, including retirement, unemployment, work injury, maternity, and medical insurance[128] - The group has a competitive compensation and benefits package, along with specialized and challenging career development and training programs for employees[128] - The group emphasizes the importance of human resources as one of its most valuable assets[128] - The Group's environmental, social, and governance (ESG) management team managed and reported on environmental and social aspects during the year[122]

Financial Performance - Turnover for H1 2019 increased by 3.2% to RMB 653,143,000 compared to RMB 632,973,000 in H1 2018[65] - Gross profit for H1 2019 was RMB 186,202,000, reflecting a 2.9% increase from RMB 180,926,000 in H1 2018[65] - Profit for the period total comprehensive income was RMB 87,244,000, a 1.0% increase from RMB 86,395,000 in H1 2018[65] - Income for the period decreased by 3.3% to RMB 83,734,000 from RMB 86,558,000 in H1 2018[65] - Net profit margin slightly decreased to 13.4% from 13.6%, a decline of 0.2 percentage points[65] - Operating profit decreased by approximately 7.3% year-on-year to about RMB 102 million, while net profit increased by approximately 1.0% year-on-year to around RMB 87.2 million[82] Segment Performance - Turnover of the Platform and Service Segment surged by 37.7% to RMB 181,623,000 in H1 2019 from RMB 131,890,000 in H1 2018[63] - Turnover from the Overseas Market rose by 36.8% to RMB 46,164,000 in H1 2019 compared to RMB 33,741,000 in H1 2018[63] - The turnover from the embedded software and secure payment products segment decreased by approximately 5.9% year-on-year to around RMB 472 million due to market price fluctuations[77] - The platform and service segment's turnover grew approximately 37.7% year-on-year to about RMB 182 million, increasing its contribution to total turnover from 20.8% in 2018 to 27.8%[82] - The overseas market turnover increased nearly 40% year-on-year, rising from approximately RMB 33.7 million to about RMB 46.2 million[82] Assets and Liabilities - Total assets as of June 30, 2019, were RMB 2,506,202,000, a decrease of 4.7% from RMB 2,628,452,000 at the end of 2018[67] - Net assets decreased by 1.6% to RMB 1,948,390,000 from RMB 1,980,083,000 at the end of 2018[67] - Total liabilities were RMB 557,812,000 as of June 30, 2019, down 14.0% from RMB 648,369,000 at the end of 2018[67] - The Group's total current assets amounted to approximately RMB1,847.6 million as of June 30, 2019, representing a decrease of approximately 7.6% compared to RMB2,000.1 million as of December 31, 2018[141] - The Group's trade receivables and contract assets increased by approximately 10.7% to RMB473.1 million as of June 30, 2019, compared to RMB427.4 million as of December 31, 2018[141] Investment and R&D - The Group is committed to increasing investment in personnel and R&D for overseas markets to maintain growth momentum[106] - The Group has established two R&D centers with over 400 staff dedicated to developing security transaction software for banks, enhancing its capabilities in IoT security encryption and identity authentication technology[107] - The Group plans to utilize approximately RMB110.5 million for the construction of the "Zhuhai Fintech Center" during the second half of 2019[136] - The Group has utilized approximately RMB804.8 million of the net proceeds from its IPO for production capacity expansion, R&D, market expansion outside of China, and other corporate purposes as of June 30, 2019[127] Market Strategy - The Group is focusing on high-end fashion product strategies to mitigate market price pressures and enhance product portfolio[77] - The Group's strategy includes a "Product + Service" total solutions approach to penetrate the Southeast Asian market[102][104] - The Southeast Asian market remains a key focus for the Group, with ongoing efforts to enhance product offerings and optimize business structures to increase overseas revenue contributions[108] - The Group aims to establish a world-leading data processing center in Manila, Philippines, focusing on the Southeast Asian market for further development[104][105] Governance and Compliance - The group is committed to maintaining high levels of environmental, social, and governance (ESG) standards, with an ESG report for 2018 published on the company's and the Stock Exchange's websites[162] - The group has complied with all relevant laws and regulations related to health and safety, workplace conditions, and the environment[162] - The company has complied with all Code Provisions set out in the Corporate Governance Code throughout the six months ended June 30, 2019[179] - All directors confirmed compliance with the Model Code for Securities Transactions throughout the six months ended June 30, 2019[180] Employee and Director Information - The group employed 1,664 employees as of June 30, 2019, a decrease of 71 employees compared to December 31, 2018[165] - The board consists of nine directors, including six executive directors and three independent non-executive directors[166] - Mr. Yang Geng was appointed as an independent non-executive director on May 22, 2019, bringing 11 years of experience in securities investment[176] - The total number of options held by directors as of January 1, 2019, was 8,300,000, which remained unchanged by June 30, 2019[195] Dividend Information - The Group's interim dividend for the six months ended June 30, 2019, is HK4.0 cents per ordinary share, amounting to approximately RMB29,935,000, compared to HK4.0 cents and RMB29,008,000 for the same period in 2018[126] - The Group's aggregate dividend paid during the six months ended June 30, 2019, was approximately RMB117.0 million, compared to RMB108.9 million for the same period in 2018[141] - The Group's interim dividend reflects a consistent payout strategy, maintaining the same dividend per share as the previous year[126]

Financial Performance - The company's turnover for the year ended December 31, 2018, was RMB 1,411 million, representing a 0.7% increase from RMB 1,400 million in 2017[27]. - Net profit attributable to owners of the company was RMB 175 million, up 6.5% from RMB 164 million in the previous year[27]. - The gross profit margin decreased to 27.6% from 29.8%, a decline of 2.2 percentage points[27]. - The net profit margin improved to 12.4%, an increase of 0.7 percentage points from 11.7%[27]. - The Group's turnover for 2018 was approximately RMB 1,411 million, representing a year-on-year increase of approximately 0.7%, while net profit was approximately RMB 175 million, reflecting a growth of approximately 6.2% compared to the previous year[68]. - Gross profit declined by approximately 6.5% to approximately RMB 390 million, with a gross margin of 27.6%, down 2 percentage points year-on-year[117]. - Net profit increased by approximately 6.2% to RMB 175 million, including an exchange gain of approximately RMB 23.1 million due to USD-RMB appreciation[123]. - The company recorded a net profit of approximately RMB 175 million for the year, representing a year-on-year growth of about 6.2%, benefiting from foreign exchange gains of approximately RMB 23.1 million[127]. Assets and Liabilities - Total assets decreased by 2.9% to RMB 2,628 million from RMB 2,707 million in 2017, while total liabilities decreased by 16.6%[28]. - The total amount of bank balances and cash as of December 31, 2018, reached approximately RMB 1,337.4 million, a decrease from RMB 1,617.0 million in 2017[184]. - The company's current ratio improved to 3.2 as of December 31, 2018, compared to approximately 2.9 in 2017, indicating high liquidity[199]. - The gearing ratio as of December 31, 2018, was approximately 24.7%, down from approximately 28.7% in 2017, reflecting a stronger financial position[199]. - Trade receivables as of December 31, 2018, were approximately RMB 413.8 million, slightly down from RMB 417.7 million in 2017[198]. - The company has no bank loans as of December 31, 2018, maintaining a conservative financial management approach[186]. Dividends - The Group has declared a total dividend of HKD 20.0 cents per ordinary share for 2018, with a payout ratio of approximately 81.7%, amounting to a total of approximately HKD 723 million (equivalent to approximately RMB 605 million) since its IPO in 2013[71]. - The Board proposed a final dividend of HK10.0 cents per ordinary share, with a total dividend payout ratio of approximately 81.7% for 2018[124]. - The proposed final dividend for the year ended December 31, 2018, is HKD 0.10 per share, equivalent to approximately RMB 0.086, with a total dividend payout ratio of about 81.7%[127]. - The total dividend declared since the company's listing in 2013 will reach HKD 723 million, equivalent to approximately RMB 605 million[127]. Business Development and Strategy - Goldpac launched the world's first EMV product based on China chip technology[37]. - The company cooperated with Guoxin Micro to enhance China's financial outsourcing services and promote high-end integration in the global value chain[39]. - Goldpac partnered with CEC Huada Electronic to promote the deep integration of the industrial chain and expand fintech applications[41]. - Construction of the Zhuhai Fintech Center has commenced, marking a significant development in the company's expansion strategy[45]. - The Group plans to focus on technology-driven innovation and development in 2019, leveraging opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area[72]. - The Group plans to expand its overseas market reach in 2019, adopting a "Product + Service" total solutions strategy[94]. - The Group will continue to enhance its automation processes, including intelligent warehousing and logistics, to establish a flexible and efficient mass customization operation system[154]. - The Group plans to adopt a "Product + Service" total solutions strategy to penetrate international sectors including government, transportation, and education[154]. - The Goldpac Fintech Innovation Hub, named "Zhuhai Fintech Center," aims to foster fintech innovation in the Guangdong-Hong Kong-Macao Greater Bay Area and is expected to be completed in 2020[167]. Research and Development - R&D expenses grew to approximately RMB 114 million in 2018, an increase of approximately 4.4% compared to last year, focusing on secure chips and A.I. self-service kiosks[122]. - R&D expenses reached approximately RMB 114 million in 2018, an increase of about 4.4% year-on-year, primarily invested in security chips, solutions, and smart device software and hardware development[127]. - The Group will prioritize R&D in the IoT area, capitalizing on its strengths in secure encryption authentication, as 2019 may mark the first year of 5G commercialization[156]. - The company has allocated 35.0% of the net proceeds for R&D of new products and services, totaling approximately HKD 341.1 million[179]. Market Trends and Opportunities - The demand for A.I. self-service kiosks in finance and social security sectors is expected to grow significantly over the next five years due to the "One Stop Shop" reform by the Chinese government[80]. - The structural transformation of the Chinese economy is driving the demand for intelligent and unmanned services in governmental, public, and financial sectors[80]. - The banking card transaction amount in China surged to RMB 651.6 trillion, representing an increase of 15.3% compared to the same period in 2017[126]. - The transaction volume of bank cards in China reached a historical high of RMB 65.16 trillion in the first three quarters of 2018, a year-on-year increase of 15.3%[128]. - The per capita credit card ownership in China nearly doubled from 0.25 in 2012 to 0.47 in 2018[139]. - The Guangdong-Hong Kong-Macao Greater Bay Area development plan, released in February 2019, aims to enhance connectivity and promote smart city initiatives[140]. - The company plans to innovate banking card products, including AR cards, CVV cards, and next-generation fingerprint cards, to maintain its competitive edge[149]. - The Group's smart secure payment products received positive feedback in overseas markets, and it aims for breakthroughs in turnover growth and market share in 2019[154].