About Hi Sun  
Company Background  
Directors and Senior Management  

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 provision of payment processing solutions, provision of financial solutions, sales of electronic power meters and solutions, provision of telecommunication solutions and provision of payment platform solutions.

Payment processing solutions
Since the pass of the inspections by the regulatory bodies in the first quarter of 2015 and the gradual resumption of acquiring new merchants in Q2 2015, we are now conducting business in over 27 provinces and cities in the PRC. There was a steady growth in the scale of transactions while there were over 800,000 accumulated merchants in the PRC as at the end of 2015 with a monthly transaction volume of over RMB60 billion in December 2015. During the year, we actively engaged in early settlement financial services business, which was effective and fruitful. The operating income of such business accounted for approximately 20% of the segmental turnover. In addition to the traditional fixed and mobile POS, we have launched MPOS in 2015, and we will launch other innovative payment processing solutions, such as the Smart POS, in an attempt to expand our market share by leveraging on our existing advantages. At the same time, we also began to introduce the internet payment services business and mobile payment services business, providing our customers with the online and offline integrated payment processing solutions. Looking forward, we will further expand our prospective financial businesses such as wealth management and financing business, actively capture the trend of internet finance development, and raise the proportion of income from financial related services. In 2015, the PRC government introduced a series of policies in relation to the internet finance industry, further acknowledging that non-bank payment institutions constitute an integral part of the financial payment system. We, being one of the leading non-bank payment institutions in the industry, will continue to maximize our room for development.

Financial solutions
During the year, the performance of our financial solutions business segment was steady and sound, especially the core banking system sector. Projects of China CITIC Bank and China Construction Bank were successfully put into operations, and other key projects, such as China Guangfa Bank, Dah Sing Bank, China Minsheng Bank (Singapore), China Everbright Bank (Seoul), Bank of Beijing (Hong Kong) were launched as scheduled. Among which, the second phase of China Guangfa Bank project were put into operation in January 2016, and is expected to bring positive return in 2016. The ATM outsourcing operation business has continued to bring steady cash flow. Furthermore, in light of the fact that bank customers have been transiting to internet finance in the payment and internet finance sector, we provided various integrated solutions of banks and internet companies by making use of the third-party payment platforms and P2P platforms. On the other hand, along with the growing customers of city commercial banks in the PRC, their asset size and the investment in IT systems have increased rapidly and transition of business has accelerated. On the premise that we reinforce our market position with the BIG5 (five major banks in China), joint-equity banks and their overseas subsidiaries, we will target city commercial banks as an emerging strategic market for strategic planning and investment.

Electronic power meters and solutions
In 2016, it is anticipated that the total tender volume of smart meters and data collection devices by the State Grid Corporation will remain stable, and the market capacity will be relatively steady. In 2016, the State Grid will focus on deepening the smart dual interactive technology research, innovating the dual interactive model of smart meters, conducting applied researches on harmonic wave electric meters and IR46 meters construction in compliance with the requirements of the international metrology organization, as well as proactively promoting smart manufacturing and energy internet. This demonstrates the higher levels of demand for technology smart meters and data collection devices are required in the future. As such, since 2015, we have begun to focus on key research and development projects, and undergone technical preparation, with the aim of maintaining the competitiveness in the market.

Telecommunication solutions
In 2015, IVR voice value-added business of China Mobile continued to keep its steady status, and the IVR voice Jiangsu Base of China Mobile had been pursuing business innovations for individual users. With the steady growth of data traffic products of the mobile internet - mobile voice magazines, integrated business of voice and short informative messages had been simultaneously conducted. At the same time, as a pilot scheme, the IVR voice base started to focus on the capacity output of voice and information to corporate users, attaining satisfactory achievements. The Migu Animation and Comic Base ( 咪 咕 動 漫 基 地 ) of China Mobile gained some new development opportunities and the related supporting services remained stable. Although the establishment of China Mobile's new and self-owned IVR business platform has created certain challenges on the revenue of the telecommunication solutions business segment, the remaining recurring IVR business is expected to remain stable while the income from innovative business focusing on individual users is set to increase continuously. Meanwhile, we consider that there will be an ample room for growth of the capacity output business focusing on the corporate communication market, and the demand for related supporting services will also increase progressively, restoring and boosting the income gradually.

Payment platform solutions
Looking ahead, we will continue to provide full operational supporting services for the China Mobile's 和 包 business (formerly known as "mobile payment" or "mobile wallet"). 和 包 offers a variety of safe and trendy experience for online and offline payment which is convenient and expedient for both individual and corporate users. As China Mobile continues to increase their investment, we expect that 和 包 business will develop rapidly, and the demand for our supporting services from China Mobile will also increase concurrently, yielding a stable income growth. Meanwhile, given that the E-commerce Base of China Mobile is insistently broadening its business horizon, we will seize such opportunity to cooperate with the base at the operation level. In addition, we will consistently invest into the internet finance sector, exploring the opportunity to innovate our own business in that sector.


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