Goldpac Announces 2020 Annual Results

March 24, 2021

(24 March 2021, Hong Kong) Goldpac Group Limited (‘Goldpac’ or the ‘Group’, stock code: 03315.HK), a leading Fintech company in China, today announced the annual results for the year ended 31 December 2020.

Performance Review

The COVID-19 pandemic has accelerated the global trend for development in intelligent and digital technologies, and an increasing number of financial and governmental services are being provided through unmanned and platform-based means. During the year, the Group firmly capitalized on the development opportunities under the pandemic, deepening fintech innovation to promote its digitalization and platform-based strategy.

Benefited from the Group’s strategy in platform and service, for the year ended 31 December 2020, the platform and service segment continued its rapid growth, recording revenue of RMB534 million, representing a year-on-year increase of 22.6%. This segment accounted for 41.7% of the Group’s total revenue (30.8% in 2019). Among which, the digital equipment revenue recorded a rapid growth.

The sudden outbreak of the COVID-19 pandemic brought about many challenges for the industry. During the year, the Group recorded revenue and net profit of RMB1.28 billion and RMB145.3 million respectively, though both representing a year-on-year decrease, the Group’s overall profitability remained the industry-leading level. Meanwhile, the application of delicacy management helped the Group to achieve remarkable results, the gross margin has been improved, resulting in an increase by 1.7 percentage points to 29.9%. The operating profit was recorded of RMB201.0 million, representing a year-on-year increase of 2.2%. Should the book loss caused by exchange loss be eliminated, net profit shall increase 5.6% year-on-year to RMB182.3 million.

During the year, the Group’s financial indicators continued to be robust and its cash flow was abundant, representing a high liquidity. At end of 2020, the Group’s total current assets amounted to RMB2.02 billion, all of which provided abundant financial support for the Group to expand into new business and product lines, promote its digitalization and platform-based strategy, and achieve breakthroughs and upgrades.

Based on the Group’s sound operations and healthy financial situation, the Board proposed to declare a final dividend of HK10 cents per ordinary share and a special dividend of HK4 cents per ordinary share for the year ended 31 December 2020. If this proposal is approved by the shareholders of the Goldpac at the forthcoming annual general meeting, the accumulated amount of dividends declared for the year would be HK17 cents per ordinary share, and the dividend payout ratio for the year would be 81%.

Outlook —Digital UMV Platform, Promoting the Digitalization and Platform-based Strategy, Deepening Fintech Innovation

2021 is a new starting point for the Group. The Group will invest more resources to build its UMV platform, gradually promote the upgrading and transformation of the original supply chain system of the industry, and create an innovative ecosystem for the entire financial payment products industrial value chain.

The UMV platform will provide a series of solutions empowered with A.I., image processing, Internet of Things and other innovative technologies. These will gradually introduce and link key constituents in the industry, bringing together the combined strength of even more industry participants. In turn, these will promote multifaceted interactions between participants along traditional business models and cultivate the innovation industry’s ecosystem and industrial value chain.

As a digital business platform for customers, UMV platform will effectively promote digital Fintech and technology services, with the target to re-invent core business, boost the overseas markets expansion and accelerate the business development of digital equipment.

As an important vehicle to promote digitalization and the platform-based strategy, the construction of the “Zhuhai Fintech Center” invested in by the Group is about to be completed and is expected to be put into use in 2021.

Look beyond , the Group will provide customers with a comprehensive suite of services consisting of “Technology + Industry + Ecosystem” for the digital transformation, to provide technological power for the recovery and development of China’s economy in the post-pandemic era, and to realize the Group’s accelerated progress under the guidance of digital strategic reform.