Goldpac : Announces 2023 Annual Results

(20 March 2024, Hong Kong) Goldpac Group Limited and its subsidiaries ("Goldpac" or the "Group", stock code: 03315.HK), today announced the annual results for the year ended 31 December 2023.

Steady Business Growth

The Group still recorded a revenue of RMB1.417 billion for the year ended 31 December 2023, representing a year-on-year decrease of 7.4%, despite adverse factors such as insufficient effective demand in China. Leveraging on the leading advantages in the field of secure payments, the Group successfully tapped into emerging markets, and recorded revenue of RMB319.9 million, achieving a growth of 27.5%. The revenue of the embedded software and secure payment products business segment from the emerging markets grew by 27.2% to RMB296.7 million.

Facing changes in market demands, the Group strategically adjusted its product structure, increased the proportion of high value-added products and continuously optimized its supply chain management. The Group's gross profit was RMB420.1 million, and gross profit margin increased 3.3 ppts to 29.7%. Benefiting from its strategic advancement and refined management, operating expenses decreased by 10.1% yoy. In addition, the Group's profit for the year decreased by 6.1% to RMB151.2 million while the exchange gains decreased.The Group's net profit margin remained stable at 10.7%, maintaining its solid profitability.

The Board proposed to declare a final dividend of HK 10 cents per ordinary share and a special dividend of HK 4 cents per ordinary share for the year ended 31 December 2023. If approved by the shareholders at the Annual General Meeting, the final dividend will be HK 14 cents per share, and the dividend payout ratio is up to 79%.

Outlook: propelling forward by breaking technological frontiers

Recently, the Chinese government has initiated the implementation of favorable measures such as improving the acceptance environment for bank cards and further improving the multi-level and diversified payment service systems that include bank cards, which has been actively responded to by leading institutions such as the People's Bank of China, China UnionPay, and NetsUnion Clearing Corporation. Chinese payments industry is about to embrace new changes and opportunities.

Consolidating efforts in UMV platform development

Catering to the needs of digitalization in the payments industry, the Group launches its innovative digital platform - UMV that leverages AI, privacy computing, big data and cutting-edge algorithms to build an one-stop, digitally-integrated service platform. The UMV platform reshapes the value chain of the traditional financial institution business model and helps to realize the on-demand and customized business model to accommodate for various types of order quantities ranging from 1 to 10 million units, thereby creating an innovative ecosystem for payment value chain.

Expanding the scope of new businesses and strengthening core competitive advantages

Responding to the call for "boosting self-reliance and strength in green and low-carbon science and technology", the Group combines eco-friendly payment products such as eco-friendly cards and metal cards with its digital card issuance

platform and launches multifaceted low-carbon secure payment solutions to help financial institutions around the world in building their competitive advantages on the road to sustainable practices.

Seizing the opportunities of digital RMB pilot in China, the Group has fully utilized resources from the E-CNY Industry Alliance to promote the establishment of digital currency in multiple forms, scenarios and applications.

Promoting the expansion of secure authentication technologies into multiple fields

The Group has completed the system interface of its telecommunication products with the operators on digital currency and digital identity authentication applications. It has also established strategic cooperative relationships with a number of telecommunications players. The Group will concentrate on promoting the integration of its secure authentication solutions into other sectors such as telecommunications, transportation, Internet of Things and automotive communication.

Venturing into untapped international markets and enhancing global competitiveness

The Group will continue to actively participate in global conferences, exhibitions, and other marketing activities to further elevate its profile in the international markets. The Group will maximize its global footprint by paying close attention to the localized payment needs of different countries and regions, adopting tailored-made marketing strategies, tapping into emerging markets and potential customers.

Looking ahead, the Group will closely monitor the movement of digital developments in the banking industry to fully implement its digital and platform-based strategy while consolidating core business advantages and strengthening technological competitiveness, propelling the business forward with cutting-edge breakthroughs.

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