Hi Sun Technology (China) Limited (the "Company", together with its subsidiaries, collectively known as the "Group"; Stock Code : 0818.HK) is principally engaged in the provision of telecommunication solutions, provision of financial solutions, provision of payment platform solutions, provision of payment processing solutions and sales of electronic power meters and solutions.
With the continuous steady growth of the IVR business, the Jiangsu Base of China Mobile is devoted to developing internet integrated and audio portal related innovative products and business, while establishing a consolidated audio service platform with quality content and capacity output. It is expected that we will have even more development opportunities in the future. Alongside the official launch of 4G services by China Mobile in December 2013, together with the merge of colour image business and the colour printing business of China Mobile, the room for future development of mobile animation and comic will be further enhanced. Meanwhile, the cloud communication platform provides applications on internet and mobile internet with various integrated communication ability to both enterprises and developers. In 2013, the cloud communication platform has already built up a cooperation network with various enterprises in the fields of remote medical treatment, remote education, mobile game and e-commerce. The cloud communication business is expected to be a new driver of our business growth.
In 2014, financial solutions segment will continue to strengthen and expand its leading position in the core banking and financial payment solutions area. As for core banking, we are currently participating in various projects, such as those with China Construction Bank, Bank of Communications, China CITIC Bank and also a number of projects in Hong Kong and Macau. At the same time, the ATM outsourcing operation business continues to derive a relatively stable income. In order to capture the opportunity for internet innovations in the financial industry, we established a laboratory jointly with the School of Management, University of Chinese Academy of Sciences to enhance the R&D process with practical market inputs, with an aim to forge a solid foundation for our internet financial business. Meanwhile, we also attempt to provide independent, prompt and innovative solutions to our business partners through an integrated financial IT services platform.
Payment platform solutions
During the year, we continued to support the mobile payment business and mobile wallet business of the e-commerce base of China Mobile. Following the launch of 4G services by China Mobile in December 2013, it is expected that more efforts will be put into the promotion of "和包". The product of China Mobile "和包", which is based on the NFC technology, covers various industries such as UnionPay, banking, public transportation and travelling. Cooperation has been established with a number of national and local banks, with nationwide network connected with various online and offline merchants, covering the payment of a great variety of public utilities in the People's Republic of China (the "PRC"). As one of the major service providers of the e-commerce base of China Mobile, we expect that a subsisting stable income stream will be generated from such rapid development of our base business. In the meantime, we will be more dedicated to the expansion of the e-commerce and payment business of China Mobile at the provincial level. On the other hand, we will keep abreast of the opportunity for innovations in the mobile internet and internet financial industry, and strive to achieve a breakthrough for our own innovative business leveraging our competitive edge and resources.
Payment processing solutions
The huge market potential, brilliant prospect, broad customer base and a great variety of services together create enormous opportunities in the third-party payment market in Mainland China. In the future, the third-party payment industry is expected to become a more segmented and subdivided market. We will capitalize on the existing competitive edge to seize the priority in developing related value-added services. We will focus on providing different customized services to enhance customer satisfaction and loyalty through utilization of customer resources and establishment of close business relationship with them. We will also identify quality merchants through our marketing efforts and expand the operation scale of the payment processing business to strengthen our market position. Apart from this, we will continue to optimize our compliance and risk control measures and consolidate our cooperation with commercial banks, so as to join hands in expanding into a broader market.
Electronic power meters and solutions
In 2014, State Grid Corporation of China will continue to carry forward the smart grid construction and the standardization of the new technical requirements of smart meters as well as data collection devices. The application of multi-rate meters for the power grid reconstruction work in the rural areas will be further implemented, which is expected to reach a sizable scale. Meanwhile, China Southern Power Grid will put forward the tendering for smart meters as well as the smart grid construction. The market capacity for smart meters and data collection devices is expected to be relatively stable in 2014. We will continue to improve our market information collection channels and make prompt and accurate response. In the meantime, we will maintain and enhance the production capacity of the relevant products by reasonably allocating resources to different production lines, with a view to increase our market share through tendering in the future. In addition, we are constantly strengthening ourselves in terms of market competitiveness in the areas of R&D, marketing and production, so as to maintain a sustainable growth and healthy financial performance.