[Executive Summary and Performance Highlights](index=1&type=section&id=I.%20Executive%20Summary%20and%20Performance%20Highlights) H1 2025 revenue declined, but gross margin improved from product optimization and digital efficiency, ensuring stable operating profitability [H1 2025 Performance Summary](index=1&type=section&id=1.1%20H1%202025%20Performance%20Summary) H1 2025 revenue declined **15.5%** to **RMB 458 million**, but gross profit rose **1.2%** to **RMB 134 million**, with stable operating profitability Metric | Metric | H1 2025 (RMB) | YoY Change | Notes | | :--- | :--- | :--- | :--- | | Revenue | **458 million** | -**15.5%** | | | Gross Profit | **134 million** | +**1.2%** | | | Gross Margin | **29.3%** | +**4.9 percentage points** | | | Profit for the Period | **23.6 million** | -**22.7%** | Affected by lower exchange gains, decreased other income, and increased income tax expenses due to deferred tax | | Operating Profit | Flat | - | | | Operating Expenses | **125 million** | -**1.3%** | | | Embedded Software and Secure Payment Products Revenue | **292 million** | +**0.7%** | Gross Margin **23.8%** (+**2.2 percentage points**) | | Platform and Services Business Revenue | **165 million** | -**34.3%** | Gross Margin **38.9%** (+**11.3 percentage points**) | | UMV Platform Customer Count | over **2200** | - | Financial and transportation sector clients | [Financial Statements](index=2&type=section&id=II.%20Financial%20Statements) This section presents the company's condensed consolidated statements, offering an overview of its financial performance and position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by **15.5%** to **RMB 458 million**, while gross profit slightly increased by **1.2%** to **RMB 134 million**; profit for the period was **RMB 23.55 million**, a **22.7%** decrease year-on-year, primarily impacted by increased income tax expenses and exchange differences Metric | Metric | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | **457,884** | **542,012** | -**15.5%** | | Cost of Sales | (**323,926**) | (**409,702**) | -**21.0%** | | Gross Profit | **133,958** | **132,310** | +**1.2%** | | Other Income | **19,835** | **24,914** | -**20.4%** | | Research and Development Expenses | (**45,654**) | (**53,410**) | -**14.5%** | | Selling and Distribution Expenses | (**56,836**) | (**50,126**) | +**13.4%** | | Administrative Expenses | (**22,565**) | (**23,187**) | -**2.7%** | | Profit Before Income Tax | **27,647** | **31,498** | -**12.2%** | | Income Tax Expense | (**4,095**) | (**1,026**) | +**299.1%** | | Profit for the Period | **23,552** | **30,472** | -**22.7%** | | Basic Earnings Per Share (RMB cents) | **2.9** | **3.8** | -**23.7%** | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly increased to **RMB 2.481 billion**, with current assets rising due to inventory and receivables growth; total liabilities and total equity remained relatively stable Metric | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Non-current Assets | **774,088** | **806,510** | -**3.9%** | | Total Current Assets | **1,707,153** | **1,656,974** | +**3.0%** | | Inventories | **285,149** | **237,645** | +**19.9%** | | Trade Receivables | **291,379** | **261,826** | +**11.3%** | | Cash and Cash Equivalents | **228,917** | **211,153** | +**8.4%** | | Total Assets | **2,481,241** | **2,463,484** | +**0.7%** | | **Equity** | | | | | Equity Attributable to Owners of the Company | **1,991,588** | **2,011,986** | -**1.0%** | | Total Equity | **1,991,613** | **2,011,991** | -**1.0%** | | **Liabilities** | | | | | Total Non-current Liabilities | **42,125** | **42,691** | -**1.3%** | | Total Current Liabilities | **447,503** | **408,802** | +**9.5%** | | Total Liabilities | **489,628** | **451,493** | +**8.4%** | [Financial Notes](index=5&type=section&id=III.%20Financial%20Notes) This section details accounting policies, revenue segmentation, and specific financial items, providing context to the interim financial statements [General Information](index=5&type=section&id=3.1%20General%20Information) The Group provides smart secure payment solutions and fintech services globally, listed in Hong Kong, with Mr. Lu Runting as the ultimate controlling party - The Group's main business involves embedded software and secure payment products in the smart secure payment sector, offering fintech-driven data processing services, digital equipment, system platforms, and comprehensive solutions[7](index=7&type=chunk) - The Company is registered in Hong Kong, with its shares listed and traded on the Main Board of The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - The ultimate controlling party of the Company is Mr. Lu Runting[7](index=7&type=chunk) [Basis of Preparation](index=5&type=section&id=3.2%20Basis%20of%20Preparation) Interim financial information is prepared under HKAS 34 and Listing Rules Appendix D2, using historical cost, with 2024 annual data for comparison - The condensed interim consolidated financial information is prepared in accordance with Hong Kong Accounting Standard **34** 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) - The financial information is prepared on the historical cost convention, except for financial assets measured at fair value through profit or loss[8](index=8&type=chunk) - The financial information for the year ended December **31**, **2024**, included in this condensed interim consolidated financial information as comparative information, is derived from the consolidated financial statements for that year[8](index=8&type=chunk) [Accounting Policies](index=6&type=section&id=3.3%20Accounting%20Policies) Accounting policies align with 2024 annual statements; new standards effective Jan 1, 2025, have no material impact on current financials - The accounting policies adopted are consistent with those followed in the preparation of the financial statements for the year ended December **31**, **2024**, except for the adoption of new and revised standards issued by the Hong Kong Institute of Certified Public Accountants effective for financial years beginning on January **1**, **2025**[10](index=10&type=chunk) - The Directors believe that the adoption of these revised standards has no significant impact on the Group's financial performance and position for the current and prior periods, nor on the disclosures contained in this interim financial information[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.4%20Revenue%20and%20Segment%20Information) The Group operates in two segments: 'Embedded Software and Secure Payment Products' and 'Platform and Services', with mainland China as the main revenue source Revenue by Type of Goods and Services (RMB thousand) | Type of Goods and Services | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Embedded Software and Secure Payment Products | **292,465** | **290,292** | | Data Processing and Other Services | **87,460** | **164,202** | | Digital Equipment | **77,959** | **87,518** | | **Total** | **457,884** | **542,012** | Revenue by Geographical Market (RMB thousand) | Geographical Market | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Mainland China | **400,717** | **479,975** | | Non-Mainland China | **57,167** | **62,037** | | **Total** | **457,884** | **542,012** | Revenue and Performance by Reportable Segment (RMB thousand) | Segment | 2025 Revenue | 2024 Revenue | 2025 Performance (Gross Profit) | 2024 Performance (Gross Profit) | | :--- | :--- | :--- | :--- | :--- | | Embedded Software and Secure Payment Products | **292,465** | **290,292** | **69,545** | **62,784** | | Platform and Services | **165,419** | **251,720** | **64,413** | **69,526** | | **Total** | **457,884** | **542,012** | **133,958** | **132,310** | [Profit Before Income Tax](index=9&type=section&id=3.5%20Profit%20Before%20Income%20Tax) Profit before income tax was impacted by decreased staff and inventory costs, reduced depreciation, lower government grants, and an exchange loss Items Deducted/(Added) in Profit Before Income Tax (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Directors' Remuneration | **4,904** | **5,678** | | Retirement Benefit Scheme Contributions | **8,103** | **7,361** | | Staff Costs | **84,193** | **98,080** | | Cost of Inventories | **255,742** | **310,463** | | Government Grants | (**174**) | (**267**) | | VAT Refunds | (**4,786**) | (**6,027**) | | Interest Income | (**11,315**) | (**16,427**) | | Exchange Loss/(Gain) - Net | **2,516** | (**881**) | | Depreciation of Property, Plant and Equipment | **15,041** | **17,741** | [Income Tax Expense](index=10&type=section&id=3.6%20Income%20Tax%20Expense) H1 2025 income tax expense significantly increased to **RMB 4.095 million**, mainly due to deferred tax shifting from a gain to an expense Income Tax Expense (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current Income Tax | (**2,031**) | (**3,418**) | | Deferred Tax | (**2,064**) | **2,392** | | **Income Tax Expense** | (**4,095**) | (**1,026**) | - Hong Kong profits tax operates under a two-tiered system, with a tax rate of **8.25%** for the first **HKD 2,000,000** of assessable profits for qualifying entities, and **16.5%** for the remainder[21](index=21&type=chunk) - Goldpac Limited, a subsidiary in mainland China, enjoys a preferential corporate income tax rate of **15%** as a high-tech enterprise from **2023** to **2025**[22](index=22&type=chunk) [Dividends](index=11&type=section&id=3.7%20Dividends) The Board resolved not to declare an interim dividend for H1 2025; the 2024 annual final dividend was **HKD 5.5 cents** per share Dividends Declared (RMB thousand) | Dividend Type | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | 2024 Annual Final Dividend (HKD **5.5 cents** per share) | **40,172** | - | | 2023 Annual Final Dividend (HKD **10.0 cents** per share) | - | **73,817** | | 2023 Annual Special Dividend (HKD **4.0 cents** per share) | - | **29,526** | - The Board resolved not to declare an interim dividend for the six months ended June **30**, **2025**[23](index=23&type=chunk) [Earnings Per Share](index=11&type=section&id=3.8%20Earnings%20Per%20Share) H1 2025 basic earnings per share decreased to **RMB 2.9 cents** from **3.8 cents**, with diluted EPS being identical due to no dilutive shares Earnings Per Share (RMB cents) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the Year Attributable to Owners of the Company (RMB thousand) | **23,532** | **31,144** | | Weighted Average Number of Ordinary Shares (thousand shares) | **798,700** | **809,789** | | **Basic Earnings Per Share (RMB cents)** | **2.9** | **3.8** | - For the six months ended June **30**, **2025**, and June **30**, **2024**, diluted earnings per share were the same as basic earnings per share, as there were no potentially dilutive ordinary shares outstanding during the period[24](index=24&type=chunk) [Inventories](index=12&type=section&id=3.9%20Inventories) As of June 30, 2025, total inventories amounted to **RMB 285 million**, an increase from the end of 2024, primarily reflecting growth in raw materials and finished goods inventory; meanwhile, provisions for writing down inventories to net realizable value decreased Inventory Composition (RMB thousand) | Inventory Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials | **212,341** | **179,242** | | Work-in-progress | **2,593** | **4,834** | | Finished Goods | **121,165** | **113,755** | | **Total** | **336,099** | **297,831** | | Less: Write-down of Inventories to Net Realizable Value | (**50,950**) | (**60,186**) | | **Net Inventories** | **285,149** | **237,645** | [Trade Receivables](index=12&type=section&id=3.10%20Trade%20Receivables) As of June 30, 2025, net trade receivables amounted to **RMB 291 million**, an increase from the end of 2024; aging analysis shows an increased proportion of trade receivables aged 91-180 days and 181-365 days Trade Receivables (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Trade Receivables | **295,386** | **266,525** | | Less: Provision for Impairment Loss | (**4,007**) | (**4,699**) | | **Net Trade Receivables** | **291,379** | **261,826** | Aging Analysis of Trade Receivables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0-90 days | **167,334** | **181,298** | | 91-180 days | **53,079** | **21,602** | | 181-365 days | **38,807** | **27,719** | | Over one year | **32,159** | **31,207** | | **Total** | **291,379** | **261,826** | [Trade and Bills Payables](index=13&type=section&id=3.11%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables amounted to **RMB 364 million**, an increase from the end of 2024; some suppliers extended credit terms to **360** days, leading to a significant increase in trade and bills payables aged 181-365 days Trade and Bills Payables (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | **284,504** | **253,412** | | Secured Bills Payable | **79,853** | **63,823** | | **Total** | **364,357** | **317,235** | Aging Analysis of Trade and Bills Payables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0-90 days | **237,878** | **260,262** | | 91-180 days | **46,253** | **39,540** | | 181-365 days | **75,925** | **12,433** | | Over one year | **4,301** | **5,000** | | **Total** | **364,357** | **317,235** | - Some suppliers extended credit terms to **360** days, leading to an increase in trade and bills payables aged **181** to **365** days[30](index=30&type=chunk) [Share Capital](index=14&type=section&id=3.12%20Share%20Capital) As of June 30, 2025, the number of issued and fully paid ordinary shares decreased to **805,802 thousand** shares due to share repurchases and cancellations, but the share capital amount remained unchanged Share Capital Movement (thousand shares) | Metric | Number of Ordinary Shares (thousand shares) | Amount (HKD thousand) | | :--- | :--- | :--- | | December 31, 2024 (Audited) | **807,928** | **1,499,498** | | Shares repurchased and cancelled in the market | (**2,126**) | - | | **June 30, 2025 (Unaudited)** | **805,802** | **1,499,498** | [Management Discussion and Analysis](index=15&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) Management discusses the operating environment, business performance, strategic initiatives, financial position, and capital management for the period [Operating Environment and Overall Performance Review](index=15&type=section&id=4.1%20Operating%20Environment%20and%20Overall%20Performance%20Review) H1 2025 saw revenue pressure but improved gross margin from digital strategies, maintaining robust financials and ample liquidity for future growth - The global political and economic environment is complex and volatile, China's economy is stable but household consumption is weak, and bank clients face challenges such as conservative credit consumption and intensified competition[32](index=32&type=chunk) - The Group firmly implements its digital and platform-based strategies, fully advancing the UMV platform to achieve intelligent and visualized service operation processes, supporting banks in compliance management and marketing innovation[32](index=32&type=chunk) - The global market footprint has expanded to **41** countries and regions, achieving breakthroughs in Asia-Pacific, the Middle East, and other areas[33](index=33&type=chunk) - Despite a **15.5%** year-on-year revenue decrease to **RMB 458 million**, gross profit increased by **1.2%** to **RMB 134 million**, with gross margin improving by **4.9 percentage points** to **29.3%**[34](index=34&type=chunk) - Profit for the period decreased by **22.7%** year-on-year to **RMB 23.6 million**, but excluding exchange gains and losses, it decreased by approximately **11.9%** to **RMB 26.1 million**, indicating stable operating profitability[35](index=35&type=chunk) - The financial position is robust, with total current assets of approximately **RMB 1.71 billion**, a current ratio of approximately **3.8**, a quick ratio of approximately **3.2**, and an asset-liability ratio of approximately **19.7%**[35](index=35&type=chunk) [Business Segment Performance](index=16&type=section&id=4.2%20Business%20Segment%20Performance) H1 2025 embedded software revenue slightly increased with improved gross margin, while platform and services revenue declined but saw significant gross margin growth Business Segment Performance (RMB) | Segment | Revenue (2025 H1) | YoY Revenue Change | Gross Margin (2025 H1) | YoY Gross Margin Change | YoY Gross Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Embedded Software and Secure Payment Products | **292 million** | +**0.7%** | **23.8%** | +**2.2 percentage points** | +**10.8%** | | Platform and Services Business | **165 million** | -**34.3%** | **38.9%** | +**11.3 percentage points** | -**7.4%** | [Strategic Focus and Business Development](index=17&type=section&id=4.3%20Strategic%20Focus%20and%20Business%20Development) The company advances UMV platform construction, launches 'Digital First + Chip Encryption' solutions, and expands global markets and communication & IoT businesses [UMV Platform Construction and Digital First Strategy](index=17&type=section&id=4.3.1%20UMV%20Platform%20Construction%20and%20Digital%20First%20Strategy) The Group leverages its UMV platform and 'Digital First + Chip Encryption' solutions to provide smart payment services, support digital currency, and explore stablecoin hardware wallets - The UMV platform has completed its foundational architecture, featuring industry-leading technical architecture, multi-layered encryption security, and strong scalability, achieving a digital upgrade of its operating model[37](index=37&type=chunk) - As of June **30**, **2025**, over **2,200** clients in the financial and transportation sectors have accessed the UMV platform, achieving full business digitalization[36](index=36&type=chunk) - Launched a 'Digital First + Chip Encryption' comprehensive solution to help global banks and third-party payment institutions deploy independently, enabling rapid card issuance and adapting to digital currency development[38](index=38&type=chunk) - Closely monitoring the effective date of Hong Kong's 'Stablecoin Regulation', the company is developing stablecoin hardware wallets and related derivative products with pre-quantum-resistant cryptographic algorithms based on secure chips[38](index=38&type=chunk) [Global Market and Communication & IoT Business Expansion](index=18&type=section&id=4.3.2%20Global%20Market%20and%20Communication%20%26%20IoT%20Business%20Expansion) The Group expands its global market footprint to **41** countries and focuses on new cellular communication and IoT connectivity businesses, leveraging eSIM technology - The global market footprint has expanded to **41** countries and regions, with rapid progress in Asia-Pacific and Middle Eastern markets, and is expected to achieve breakthroughs in Central and South American markets in H2 **2025**[39](index=39&type=chunk) - Future business development will focus on new areas such as cellular communication and IoT connectivity, leveraging eSIM-related connection management technology to provide digital identity authentication, remote connection management and control, and secure access services[39](index=39&type=chunk) - A global connection management service platform is under construction, focusing on application scenarios such as consumer electronics, connected vehicles, smart manufacturing, and information security[39](index=39&type=chunk) [Financial Position and Liquidity](index=20&type=section&id=4.4%20Financial%20Position%20and%20Liquidity) The Group maintains a robust financial position with ample liquidity, totaling **RMB 1.339 billion** in cash and financial assets, and no bank borrowings - The Group possesses ample liquidity and financial resources, fully capable of meeting daily working capital needs and supporting R&D and business expansion plans[44](index=44&type=chunk) Cash and Financial Assets (RMB million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Cash and Cash Equivalents, Bank Time Deposits, Pledged Bank Deposits, and Financial Assets at Fair Value Through Profit or Loss | **1,338.7** | **1,332.8** | | Of which: RMB proportion | **89.7%** (**1,200.3**) | **88.5%** (**1,178.9**) | | USD and HKD proportion | **10.3%** (**138.4**) | **11.5%** (**153.9**) | - Financial assets at fair value through profit or loss amounted to approximately **RMB 96.4 million**, consisting of principal-protected structured bank deposits[44](index=44&type=chunk) - As of June **30**, **2025**, total trade receivables amounted to approximately **RMB 291.4 million**, with collection peaks concentrated at year-end[45](index=45&type=chunk) Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | **3.8** | **4.1** | | Asset-Liability Ratio | **19.7%** | **18.3%** | - The Group has no bank borrowings and has not used any financial instruments for hedging purposes[46](index=46&type=chunk) - As of June **30**, **2025**, total capital expenditure was approximately **RMB 12.9 million**, and total capital commitments were approximately **RMB 1.0 million**[48](index=48&type=chunk)[49](index=49&type=chunk) [Dividend Policy and Use of IPO Proceeds](index=19&type=section&id=4.5%20Dividend%20Policy%20and%20Use%20of%20IPO%20Proceeds) The Board resolved not to declare an H1 2025 interim dividend; IPO net proceeds of **RMB 975 million** were largely utilized for capacity expansion and R&D - The Board resolved not to declare an interim dividend for the six months ended June **30**, **2025**[42](index=42&type=chunk) - Net proceeds from the initial global offering amounted to approximately **RMB 975.0 million**, of which approximately **RMB 867.3 million** had been utilized as of June **30**, **2025**[43](index=43&type=chunk) - The proceeds were used for capacity expansion, R&D of new products and services, company joint ventures and acquisitions, market expansion, supplementing company working capital, and other general corporate purposes[43](index=43&type=chunk) [Share Repurchases](index=22&type=section&id=4.6%20Share%20Repurchases) For H1 2025, the company repurchased **835,000** ordinary shares for approximately **HKD 848,000**, which were subsequently cancelled on **March 17, 2025** Share Repurchase Details | Month | Number of Shares Repurchased | Highest Price Per Share (HKD) | Lowest Price Per Share (HKD) | Total Consideration Paid (HKD) | | :--- | :--- | :--- | :--- | :--- | | 2025年1月 | **835,000** | **1.02** | **1.00** | **848,231.32** | | **Total** | **835,000** | - | - | **848,231.32** | - All repurchased shares were cancelled on **March 17, 2025**[55](index=55&type=chunk) [Corporate Governance and Social Responsibility](index=22&type=section&id=V.%20Corporate%20Governance%20and%20Social%20Responsibility) This section outlines the company's commitment to ESG standards, employee policies, and adherence to corporate governance principles [Environmental, Social and Corporate Governance](index=22&type=section&id=5.1%20Environmental,%20Social%20and%20Corporate%20Governance) The Group maintains high ESG standards with a dedicated management team, achieving a **Wind ESG A-rating** for three consecutive years - The Group has an ESG management team that continuously manages, monitors, advises, and reports on environmental, social, and governance aspects[57](index=57&type=chunk) - The Group has complied with all anti-corruption, health and safety, working environment, employment, and environmental laws and regulations relevant to its business[57](index=57&type=chunk) - Since **2023**, the Group has received a **Wind ESG A-rating** for **3 years**, indicating its leading position in sustainable development within the industry[39](index=39&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=5.2%20Employees%20and%20Remuneration%20Policy) Benefiting from digital transformation, the Group optimized its workforce to **1,254** employees, offering competitive compensation and incentive schemes - As of June **30**, **2025**, the Group employed **1,254** staff, a decrease of **28** from the end of **2024**[59](index=59&type=chunk) - Total staff welfare expenses were approximately **RMB 97.2 million**, lower than **RMB 111.1 million** in the prior year[59](index=59&type=chunk) - The company offers competitive compensation and benefits, career development, and training programs, and implements share option schemes and share award schemes to incentivize employees[59](index=59&type=chunk) - Compensation policy is based on individual employee performance, qualifications, and capabilities, and is regularly reviewed by the Remuneration Committee[60](index=60&type=chunk) [Corporate Governance Statement](index=23&type=section&id=5.3%20Corporate%20Governance%20Statement) The Company complied with all applicable Corporate Governance Code provisions, with the Chairman and CEO roles combined for effective strategy execution - The Company has complied with all applicable code provisions set out in Part **2** of the Corporate Governance Code, except for the deviation from code provision C.**2.1**[61](index=61&type=chunk) - Mr. Lu Runting concurrently serves as the Chairman and Chief Executive Officer of the Company, an arrangement the Board believes facilitates effective planning and execution of business decisions and strategies[62](index=62&type=chunk) [Standard Securities Dealing Code for Directors](index=24&type=section&id=5.4%20Standard%20Securities%20Dealing%20Code%20for%20Directors) The Company adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C**3** of the Listing Rules[63](index=63&type=chunk) - Following specific enquiries made to all Directors, all Directors of the Company have confirmed compliance with the Model Code for the six months ended June **30**, **2025**[63](index=63&type=chunk) [Review and Publication](index=24&type=section&id=5.5%20Review%20and%20Publication) The Audit Committee reviewed the interim results, audited by PricewaterhouseCoopers, with the announcement published on HKEX and company websites - The Company's Audit Committee has reviewed the Group's unaudited interim results for the six months ended June **30**, **2025**[64](index=64&type=chunk) - The Company's auditor, PricewaterhouseCoopers, has reviewed the interim results in accordance with HongKONG Standard on Review Engagements **2410** issued by the Hong Kong Institute of Certified Public Accountants[64](index=64&type=chunk) - This interim results announcement is available on the HKEX website (www.hkexnews.hk) and the Company's website (www.goldpac.com)[65](index=65&type=chunk)

Group 1 - The company, Jinbang Daboja (03315.HK), announced that its board meeting will be held on August 20, 2025 [1] - The purpose of the meeting is to consider and approve the company's unaudited interim results for the six months ending June 30, 2025 [1] - The board will also discuss the distribution of an interim dividend, if any [1]

主席、執行董事及首席執行官 Goldpac Group Limited 金 邦 達 寶 嘉 控 股 有 限 公 司 （於 香 港 註 冊 成 立 的 有 限 公 司 ） （股份代號：3315） 董事會召開日期 金邦達寶嘉控股有限公司（「本公司」及其附屬公司「本集團」）董事（「董事」）會（「董事會」） 兹通告謹定於二零二五年八月二十日（星期三）舉行董事會會議，藉以（其中包括）考慮及 通過本集團截至二零二五年六月三十日止的六個月中期業績，及派發中期股息（如有）， 以及處理其他事項。 承董事會命 金邦達寶嘉控股有限公司 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 盧閏霆先生 香港，二零二五年八月七日 於本公告日期，本公司的執行董事為盧閏霆先生、盧威廉先生、利應杰先生及遊雪琴女士； 及本公司的獨立非執行董事為蔣勵先生、黎棟國先生及唐國林先生。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 金邦達寶嘉控股有限公司("本公司"） 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03315 | 說明 | | | | | | | | 法定/註冊股份數目 | | 面值 | | 法定/註冊股本 | | 上月底結存 | | | | | | | | 增加 / 減少 (-) | | | | | | | | 本月底結存 | | | | | | | 本月底法定/註冊股本總額： 備註： 本公司乃於香港註冊成立。根據於二零一四年三月三日生效的香港新 《公司條例》第622章在香港註冊成立的公司不再擁有法定股本，而就已發行股份而言並無"面值"的概念。 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. ...

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].