Hi Sun Technology (China) Limited is a leading integrated solutions provider of payments, finance, and telecommunications in China. Their offerings include payment and digital services, fintech services, platform operation solutions, and financial solutions. The Group has made some breakthroughs in the fields of IT application innovation, payment and wealth management. Additionally, the Group continued to expand business to industries and customers outside of telecoms operators, so as to develop more revenue in new markets in addition to stabilizing the existing revenue scale. Suixin Cloud Chain and Financing Services of Commercial Bills are based on blockchain technology, providing various financial technology services and products such as Suixin, Suirong, Quick Financing of Commercial Bills and Quick Discounting of Bank Bills. The platform is committed to providing high-quality and efficient financial products to manufacturing SMEs in the upstream and downstream of the industrial chain of state-owned enterprises and central enterprises, solving the problems of difficult, expensive and slow financing for SMEs. The Group is also focusing on the digital transformation of traditional wet markets, assisting in the smart transformation of farmers’ markets, providing market managers, merchants and consumers with smart solutions that integrate management, marketing, and user experience to create a digital ecosystem for wet markets.
Hi Sun Tech Announces 2022 Annual Results: Adjusted Net Profit Increases 8% to HK$694.8 Million
Hi Sun Technology (China) Limited, incorporated in Bermuda with limited liability, announced its 2022 annual results through a press release on 22 March 2023. The company reported that its adjusted net profit increased by 8% to HK$694.8 million.
Gradual Improvement in Profitability and Significant Growth in Digital Business
Despite the impact of the regional spread of the COVID-19 pandemic on China’s economic operations and residents’ lives, Hi Sun Tech reported an overall increase in profitability year-on-year. The Group completed the renewal of the “Payment Licenses,” which are valid for five years until 27 June 2027.
Results Highlights
Hi Sun Tech reported a 74% increase in digital payment transactions during 2022. The company entered into strategic cooperation agreements with several banks, telecommunication operators, China Post, and other organizations to provide merchants with a full range of payment services. The Group’s digital products served over 1.17 million merchants by the end of 2022.
The Group also continued to build a global overseas payment network, targeting overseas mainstream e-commerce platforms, with a monthly transaction amount exceeding US $100 million.
Suixin Cloud Chain and Financing Services of Commercial Bills, the two major platforms under Fintech Services, provided funding support to many micro, small, and medium-sized enterprises to expand their production operations and reduce their financing costs. By the end of December 31, 2022, the amount of funds raised by the Group’s clients through bills was approximately RMB10 billion.
The Group also gained direct access to the primary market capital through asset securitization. As of the end of 2022, the company successfully issued three tranches of asset-backed securities with a total issue amount of RMB 974,000,000.
Overall, Hi Sun Tech’s digital business experienced significant growth, and the Group managed to support several micro, small, and medium-sized enterprises through its Fintech Services. Despite the impact of the COVID-19 pandemic, the company’s overall profitability increased year-on-year, and it completed the renewal of its “Payment Licenses” during the year.
Hi Sun Tech Announces 2022 Audited Consolidated Results
Hong Kong-based Hi Sun Technology (China) Limited (stock code: 818.HK) announced its audited consolidated results for the twelve months ended 31 December 2022 (the “Year”). The company is a leading payment and digital services & finance solutions provider in China.
Results Overview
In 2022, the regional spread of the COVID-19 pandemic affected China’s economy and the Group’s business operations and expansion. Hi Sun Tech’s overall revenue decreased by 18% compared to the same period last year, but the profitability increased year-on-year. The Group’s consolidated revenue was HK$3,432.7 million, while adjusted net profit was HK$694.8 million, an increase of 8% from the same period last year.
Business Review
During the Year, the Group achieved significant growth in digital payment transactions, thanks to the active promotion of digital updates and iterations of technology, products, and management. The Group reported a 74% increase in digital payment transactions, and it entered into strategic cooperation agreements with several banks, telecommunication operators, China Post, and other institutions to provide merchants with a full range of payment services.
The Group also expects an explosive growth in domestic consumption in 2023, which is expected to drive rapid growth in merchant transactions. In terms of cross-border payment business, the Group continued to connect with overseas mainstream e-commerce platforms, built a global overseas payment network, and provided export enterprises with one-stop cross-border capital services such as cross-border payment collection, global payment agency, and foreign exchange management.
By the end of 2022, the monthly transaction amount of the Group’s cross-border payment business exceeded US$100 million, covering Hong Kong, the United States, Europe, Japan, Singapore, and other countries and regions. With the further strengthening of China’s supply chain advantages, the growth of export trade will bring better market opportunities for cross-border payment business.
Hi Sun Tech’s Digital and Financial Services in 2022
Hi Sun Technology (China) Limited, a leading payment and digital services & finance solutions provider in China, achieved several milestones in its digital and financial services in 2022.
Digital Services
Leveraging the Group’s open PaaS platform and established payment business, Hi Sun Tech has connected with several Independent Software Vendors (ISVs) and offered integrated industry digital solutions to more than 1.17 million merchants. The company’s smart decision-making products enable intelligent management of the entire commodity circulation cycle. Hi Sun Tech provides retail merchants, such as offline chain supermarkets, convenience stores, and fresh food stores, with digital solutions that integrate four functional modules including “operation status diagnosis”, “smart supply chain”, “commodity category management”, and “on-site AI management” to improve the operational efficiency of merchants. The company also focused on the digital transformation of traditional wet markets to create a digital ecosystem for wet markets.
Payment Business Permit Renewal
During the Year, the Group completed the renewal of the “Payment Business Permit” for a term of 5 years until 27 June 2027.
Financial Services
Suixin Cloud Chain and Financing Services of Commercial Bills, the two major platforms under Fintech Services Segment, provide various financial technology services and products, including Suixin, Suirong, Quick Financing of Commercial Bills, and Quick Discounting of Bank Bills. The platforms are based on blockchain technology and are committed to providing high-quality and efficient financial products to manufacturing SMEs in the upstream and downstream of the industrial chain of state-owned enterprises and central enterprises.
The segmental operating profit of Fintech Services was HK$14.8 million, an increase of 18% as compared to the same period last year. Hi Sun Tech’s platforms are linked to several financial institutions, including banks, trusts, and factoring companies, to provide funding support for a large number of SMEs through the platform. As of 31 December 2022, the amount of funds raised by the company’s clients through bills approximated RMB10 billion, and business volume continued to grow.
The company also gained direct access to primary market capital through asset securitisation, providing more capital protection for enterprises. As of the end of 2022, Hi Sun Tech successfully issued three tranches of ABS with a total issue amount of RMB974,000,000.
Overall, Hi Sun Tech’s digital and financial services in 2022 provided innovative solutions to merchants and SMEs, and the company’s financial platforms and securitisation offerings provided more capital protection for enterprises.
Hi Sun Technology (China) Limited is optimistic about the country’s economic recovery as China continues to relax its epidemic prevention and control measures. Despite a decrease in overall revenue in 2022 due to the impact of the pandemic on the Group’s business operations, the profitability increased year-on-year. The Group achieved a 74% increase in digital payment transactions and strategic cooperation agreements with banks, telecommunication operators, China Post, and other institutions to provide merchants with a full range of payment services.
In terms of cross-border payment business, the Group built a global overseas payment network and connected with overseas mainstream e-commerce platforms. The monthly transaction amount of the Group’s cross-border payment business exceeded US$100 million by the end of 2022.
Suixin Cloud Chain and Financing Services of Commercial Bills, the two major platforms under Fintech Services, provide funding support for many micro, small and medium-sized enterprises to expand their operations and reduce financing costs. As of December 31, 2022, the amount of funds raised by the Group’s clients through bills was approximately RMB10 billion.
Furthermore, the Group continued to expand business to industries and customers outside of telecoms operators, launching new products in micro-services platform, container cloud platform, and enterprise marketing tools, and increasing investment in research and development. The Group is committed to providing high-quality and efficient financial products to manufacturing SMEs and to developing new revenue streams in addition to stabilizing the existing revenue scale.
Hi Sun Technology (China) Limited (Stock code: 818.HK), a top payment and digital services and finance solutions provider in China, recently announced its audited consolidated results for the twelve months that ended on December 31, 2022. The Group’s consolidated revenue for the year was HK$3,432.7 million, which represents a decrease of 18% compared to the same period last year. Despite the decrease, the company’s profitability increased year-on-year, and its adjusted net profit was HK$694.8 million, an increase of 8% from the previous year.
Digital Payment Transactions and Cross-border Payment Business
The company faced challenges due to the regional spread of the COVID-19 pandemic in 2022, resulting in a decline in revenue. However, the company successfully promoted the digital update and iteration of technology, products, and management. The Group achieved a 74% increase in digital payment transactions, and it expects domestic consumption to increase in 2023, resulting in rapid growth in merchant transactions. The Group continued to expand its cross-border payment business and built a global overseas payment network that provides export enterprises with cross-border capital services such as cross-border payment collection, global payment agency, and foreign exchange management. The monthly transaction amount of the Group’s cross-border payment business exceeded US$100 million by the end of 2022.
Building a Digital and Intelligent Supply Chain Financial Service Ecosystem Platform
The Group’s Fintech Services Segment operates the Suixin Cloud Chain and Financing Services of Commercial Bills platforms. These platforms, based on blockchain technology, provide various financial technology services and products such as Suixin, Suirong, Quick Financing of Commercial Bills, and Quick Discounting of Bank Bills. The platform provides funding support for a large number of SMEs through links to financial institutions such as banks, trusts, and factoring companies. The amount of funds raised by the Group’s clients through bills was approximately RMB10 billion as of December 31, 2022, and the business volume continued to grow. The Group gained direct access to primary market capital through asset securitisation, providing more capital protection for enterprises.
Business Expansion and Innovation of Other Business Segments
The Group provides product technology services and business operation support services to China Mobile Financial Technology Co., Ltd. The Group launched new products in the areas of micro-services platform, container cloud platform, and enterprise marketing tools and continued to increase investment in research and development. The Group expanded its business to industries and customers outside of telecoms operators, in addition to stabilizing its existing revenue scale.
Financial Solutions
Hi Sun Advanced Business Solutions Information Technology Limited provides banking system operation and maintenance support services to its customers in Mainland China. The Group proposed three major downshifting strategies and nine downshifting techniques to facilitate the migration and upgrade of the business system of bank customers. In the payment field, the Group initiated the research and development of business systems such as FPS, ISO 20022 Swift reporting standard upgrade, and cross-border clearing. The Group builds a comprehensive wealth management system and is currently cooperating with several bank customers. Hi Sun FinTech Global set up overseas representative offices in Laos and Cambodia to enhance local technical service capabilities, and the Group achieved business breakthroughs in new markets such as Thailand and Vanuatu.
Future Outlook
The Group is optimistic about the development of the market business in China and plans to continue expanding its cooperation with financial institutions and integrating asset securitization business to provide efficient and low-cost financial services to enterprises. The Group plans to focus on technological innovation and industrial ecological capabilities, help SMEs improve operational efficiency, and create greater value and returns for shareholders, customers, and society.
For investor enquiries, please email [email protected]. This information was provided by Hi Sun Technology (China) Limited. The company’s annual reports and index can be found on their website, as well as on irasia.com. It is important to note that irasia.com Ltd makes no guarantee as to the accuracy or completeness of the information provided on their website and cannot be held liable for damages resulting from the use of this information. All intellectual property rights in the contents of the website belong to irasia.com Ltd or have been lawfully licensed to them, and reproduction of the website is strictly prohibited without their express written permission.
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