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Company Background
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 sales of electronic power meters and solutions, sales of information technology products, provision of business process operation services, provision of information system consultancy and integration services, and information technology operation value-added services.
Electronic payment products and services
The Group is the largest player in China's EFT-POS terminal market with over 30% market share. Fueled by the increasing acceptance of card payments incessant improvement of payment transactions and processing infrastructure, PAX's EFT-POS terminals sales in Mainland China are expected to maintain its momentum in 2H2008. In addition to the domestic market growth, the Group expects to increase its
overseas market penetration. The Group is in the process of opening a subsidiary in Atlanta, Georgia, U.S., which is expected to be fully operational by Q4 2008. The EFT-POS Electronic payment products and, solutions segment is expected to continue generating consistent cash flow strengthening the Group's balance sheet.
Electronic power meters and solutions
Our electronic power meters and solutions segment ("HZ PAX") resumed its full operation in Q1 2008 after certain restructuring and reorganisation exercises subsequent to the Group's acquisition in July 2007. It is expected that the segment's turnover will increase as a result of backlog ready for the 2H2008. Strong R&D backed by the strategic partnership with international industry leaders ensures the segment meets high production standard supporting HZ PAX's domestic sales and overseas expansion. China's demand for power meters and solutions is significantly increasing as a result of the country's booming economy and reformation in the energy sector. Power grid investments, energy supply and efficiency control are at the top of the agenda in the Central Government's Eleventh Five Year Plan making electronic power meters and automated systems/solutions a clear prerequisite for the reformation. As more Chinese companies are moving towards energy-saving solutions, the demand for electronic digital meters is expected to increase. Moreover, the need to replace traditional mechanical meters with the more technologically advanced and automated electronic meters and solutions is rapidly growing worldwide.
Telecommunication solutions
For the 2H2008, we anticipate modest revenue growth in the telecom segment after three consecutive years of significant increase in traffic volume from the IVR business. We expect a steady growth in operating profit as a result of operational efficiencies and effective cost management. The business extension from voice value-added services to video is expected to bring new income stream and growth impetus to the Group in FY2009 as a result of the expected grant of 3G licenses in Q4 2008.
Financial solutions
Hi Sun has established strong relations with renowned banks in China such as Bank of China, Bank of Communications and Industrial & Commercial Bank of China for its financial solutions servicing including core banking systems, ATM and outsourcing services, creating an important competitive advantage as compared to other industry players and places the Group in a favourable position to expand to other financial solution services going forward.
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