Gaoyang Technology released its first half of 2018 results | Adjusted pure Lida HK$265 million

Gaoyang Technology Co., Ltd. released the unaudited interim results of the company and its subsidiaries for the six months ended June 30, 2018 (the “Reporting Period”).

During the reporting period, the Group achieved a consolidated income of HK$1,945.1 million, an increase of 81% over the same period last year of HK$1,075.1 million; operating profit was HK$28.7 million, a decrease of 79% from HK$138.2 million in the same period last year. Profit for the period was HK$69.8 million, representing a 67% decrease from HK$209.8 million for the same period last year; the basic earnings per share attributable to the profit of the Company decreased by 71% to HK$0.02.

The Group's one-off revenue of approximately HK$63.3 million was recorded for the disposal of a subsidiary of the Company in the same period of last year, and the non-cash expenses of the share options confirmed by the payment transaction processing solution during the reporting period amounted to approximately HK$195.3 million. In the report period, the Group's business performance was positive and showed a continuous growth trend. The adjusted EBITDA of the Group's actual core business was HK$386.8 million, compared with HK$172.8 million in the same period last year. The increase was 124%. The profit for the adjusted period was HK$265.1 million, an increase of 81% over the same period last year of HK$146.6 million.

Technological upgrading and channel innovation are two-pronged, traditional payment and financial technology go hand in hand

During the reporting period, the Group's business segmentation turnover and adjustments continued to be the main development direction of the Group and the revenue earning source. The business maintained strong growth. During the reporting period, if the impact of the one-off book factor was removed, the Group's segment revenue and adjusted The segment operating profit achieved a three-year growth. The classified turnover recorded HK$1,490.7 million, an increase of 101% over the same period last year of HK$742.8 million. The adjusted EBITDA recorded a record of HK$387.7 million compared to the same period last year. 172.1 million yuan increased by 125%.

Thanks to the increasing demand for payment services in China's small and micro merchants, and the gradual advancement of payment technology in terms of mobilization, intelligence and diversification, the Group's product performance enhancement and pipeline model innovation have been promoted. As of the first half of 2018, this The Group's subsidiary, Paid Payments Co., Ltd., a subsidiary of the Group's payment transaction processing business, has more than 2.8 million active domestic merchants (as of the end of June 2017, approximately 2 million). RMB 685 billion, a year-on-year increase of more than 46%, of which the monthly transaction volume in the second quarter of 2018 reached a new high, with an average of more than RMB 120 billion per month.

During the reporting period, the Group signed more than 500,000 sales personnel in China through the innovative Xin Alliance pipeline model, which provided a strong driving force for the expansion of small and micro businesses in second and third tier cities, and is expected to continue to flourish in the payment transaction processing business in the second half of the year. The important driving force.

The Group's financial technology business has been launched nationwide during the reporting period, with a total loan of approximately RMB 200 million. At the same time, the Group's supply chain financial asset management platform industry has also been launched, and has reached cooperation intentions with a number of banks. It can effectively solve the financial pains of the small and medium-sized enterprises in the real economy, such as the difficulty of confirming accounts receivable, the difficulty of transfer, and the difficulty of financing.

Information security chip business continues to expand, and various business segments continue to innovate

As the application environment of financial technology becomes more complex and changeable, the demand for security chips in the market has reached a new high. During the reporting period, the Group's information security chip business continued to expand, with a classified turnover of HK$173.0 million, almost 2017 full year. Total sales, among which the safety microcontroller continues to grow rapidly, and the magnetic stripe encryption and decoding chip sales are stable. The Group is actively promoting various research and development projects, striving to stabilize its market advantage by reducing costs and increasing efficiency.

In other basic businesses, each business segment continued to innovate. In terms of financial solutions business, the Group has invested in two aspects on the basis of stabilizing the traditional customer markets such as large state-owned banks, joint-stock commercial banks and overseas branches: (1) ) Expanding small and medium-sized customer groups such as city commercial banks. (2) To explore the financial services market other than bank customers, and successfully entered the list of IT service vendors of certain non-bank financial related customers during the period. Platform operation solution business, this In addition to successfully renewing the China Mobile E-commerce Base, IVR Base and the operation support contract of the animation base, the Group also invested various resources to expand the payment and e-commerce product technical services. It is believed that the basic market layout and development resources will be completed in a short period of time. , and then the business scope from the communications industry to online medical, education and other new areas.

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