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

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

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

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

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].