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
There are huge potential in the third-party payment market in Mainland China with broad customer base and a great variety of services. Whilst the reformation process required by the relevant regulatory authorities has almost completed, the acquirement of new merchants will be resumed upon the passing of the inspection by the relevant regulatory authorities. We will then put great efforts to acquire new merchants through marketing efforts in order to achieve the growth of operation scale of payment processing and strengthen our market position. At the same time, the system upgrade has been completed, our transaction handling abilities are more stable and effective and new internet payment service is provided in addition to the original bank card acquiring business. In the future, we expect that the third-party payment business will become a more segmented market. The Company will seize the existing competition advantage to provide different value-added customized services through utilization of customer resources and establishment of close business relation with them.
At present, Hi Sun continues to strengthen the competitive edge in the core banking sector. In the new cycle of banking business transformation, we seize the market opportunities and successfully enter into new contracts with customers such as China Guangfa Bank and China Minsheng Banking Corp., Ltd Hong Kong Branch. The establishment and enforcement of channel cooperation strategy has effectively increased the operating revenue and profit margin of the Company and consolidated our leading position in the industries including core banking and financial payment solutions. Internet Banking Promotion has produced initial results, and P2B/P2P business is successfully implemented by customers such as China Guangfa Bank, Bohai Bank. For the third party payment aspect, Anbang Insurance Group is one of the new major customers. Meanwhile, we expect that the ATM outsourcing operation business will maintain stable and steady cash-flow for the Company.
Electronic power meters and solutions
Currently, in order to reinforce the technical and quality control, State Grid has established series of technical specification standard against key components, and a series of stringent components quality control systems, regulatory technical standards and assessment systems were filed and performed random check. The implementation of these standards and systems will raise the requirements on product design and development, materials control and manufacturing management, which will pose challenges to our business. Meanwhile, it is expected that total tender volume of smart meters and data collection devices by State Grid Corporation may decline in coming year. In response to these changes, we will, on the one hand, speed up the R&D projects, gradually obtain some compliance certificates of product examination in compliance with new technical specifications of State Grid and South Grid. At the same time, we are pertinently optimising the upgrade on automated production line so as to provide strong technical support and production quality assurance for market development in the future. Through these efforts, our management team determined to mitigate the adverse effect and seize market opportunities.
With the rapid development of its 4G business, China Mobile is now more open and flexible with regard to the relevant industry chain and value chain. While the Jiangsu Base of China Mobile is maintaining a stable development for the traditional voice value-added business, it is actively promoting and exploring various forms and contents of value-added business based on voice traffic so as to develop an integrated services platform for value-added business based on audio output. It is expected that we will continue to acquire new opportunities for growth. Comic base of China Mobile runs the genuine comic interactive entertainment platform (正版動漫互動娛樂平台) with the widest coverage, the fastest updating speed and the highest revenues generated from works in the PRC. Hi Sun continuously provides various types of business products, including "和動漫", "colour printing" and "頭像秀", and becomes one of its core technology supporting partners. With China Mobile's development of new media in the future, Hi Sun will also benefit from more development opportunities. Meanwhile, we will also utilize our vast experience in the communication sector and seize the opportunities arising from the integration of mobile Internet and communication to develop new integrated business products for enterprises and individual customers.
Payment platform solutions
China Mobile's 和包 business (formerly known as "mobile payment" or "mobile wallet") is one of the leading consolidated mobile payment business for individual and corporate customers provided by China Mobile. Customers can enjoy a variety of safe and trendy online and offline payment experience conveniently and promptly. In 2015, apart from the continuous development of traditional business such as the air time payment, we expect that the E-commerce base will focus on the development of some key businesses such as internet financial wealth management "和聚寶" and e-coupons. The ongoing investment of China Mobile will continue to speed up the development of 和包 business. We are the important supporting partner of E-commerce base's 和包 business. By leveraging on our excellent supporting services and good cooperation relationships, it is expected that we will generate more income from supporting services with the expansion of trading volume of 和包 business and the increase of business lines and products. In addition, we are also exploring other business developments, including the cooperation of payment related businesses on channel level. Meanwhile, Hi Sun will continue to seek opportunities to launch the self-operated mobile internet business.