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

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

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