Goldpac : Net Profit Rises 13% to RMB242 million for 2015 (EQS News)

General

EQS-News / 17/03/2016 / 12:12 UTC+8

For Immediate Release

Goldpac Group Limited
(Stock Code: 03315)

Goldpac Net Profit Rises 13% to RMB242 million for 2015
* * * * * *
Final Dividend of HK11 cents and Special Dividend of HK4 cents Proposed for
the period of 2015, Dividend Payout Ratio Increased to 43%
* * * * * *
China’s No.1 Financial Payment Card Supplier
with Leading Shipment Volume Worldwide

【17 March 2016, Hong Kong】- The world’s fourth largest and China’s top
ranked payment solutions provider Goldpac Group Limited (“Goldpac” or the
“Group”, stock code: 03315) announces its annual results for the year ended
31 December 2015.

The Group’s turnover reached RMB1,685 million, representing a year-on-year
increase of 10.8%, while net profit rose 13.1% to RMB242 million, outpacing
industry average. Owing to the increase of high-cost IC products in its
product mix, the Group’s gross profit margin decreased marginally, but its
net profit margin maintained a growth trend and rose to 14.4%. Benefiting
from its diversified procurement strategy which has strengthened its price
negotiation power, and with increased operational efficiency and effective
cost control, the gross margin of IC cards was maintained at a stable
level.

In view of the continued business growth and its strong financial position,
to reward shareholders, the Board proposed a final dividend of HK 11 cents
per share and a special dividend of HK 4 cents per share, representing an
increase of 50% compared to the previous year. The dividend payout ratio
totaled 43%.

The Group has a strong balance sheet. As at the end of 2015, bank balance
and cash on hand amounted to RMB980 million, while cash available for use
reached RMB1,510 million. Such a strong financial position enables the
Group to seek opportunities to accelerate its development of a diversified
range of innovative payment solutions.

Continued to be the Top Supplier of China UnionPay Cards by Global Shipment

Chairman of Goldpac Mr. Lu Runting commented, “Innovation has been at the
core of Goldpac’s operational systems and product development. We continued
to adhere to the strategy of “reinforcing the core business, expanding
overseas markets and accelerating innovation for the diversification of
payment solutions”. Despite a slowdown in the global economy, we continued
to achieve stable growth. During the period of 2015, we had a 15.5% share
of China UnionPay payment card by worldwide shipment and continued to stay
as No.1 financial payment card supplier in China. As our overall financial
IC card shipments rose by 36.4%, and our global market share increased by a
remarkable 1.5 percentage points to 6.0% (according to Nilson’s 2015
report), thereby advancing our global ranking to No. 4.”

Expansion of International Footprint following the “Belt and Road”
Initiative
The Group continued to expand its international footprint, and its overseas
sales has recorded substantial growth in 2015. Adhering to China’s ‘Belt
and Road” initiative, the Group seized the opportunities created by the
globalization of China UnionPay and other leading financial institutions in
China in its overseas expansion.

In Southeast Asia, the Group opened a new personalization center in the
Philippines during the year. Additionally, a liaison office was set up in
Singapore in preparation for the upcoming EMV (Europay, MasterCard and
VISA) migration in emerging markets such as Indonesia, the Philippines and
Thailand. The Group successfully entered other new markets such as Africa,
the Middle East and South Asia. These highly populated markets are in
developing phases where payment solutions industries are still at their
infancy, thus providing exponential growth opportunities.

Accelerate Innovation for Diversification of Payment Solutions and
Seize Opportunities from Rising Demand for Safety Payment SolutionsGlobal
Internet financial services are undergoing radical changes with emerging
mobile payment medium driving the way forward. A diversified range of
payment solutions is fast emerging. To benefit from these opportunities,
the Group is also diversifying its business by making new breakthroughs on
all fronts. Meanwhile, the Chinese government actively promotes security
and manageability of data, accelerating the development of China’s domestic
financial IC chip and OSCAA (Office Security Commercial Code Administration
of China) algorithm. In 2015, the Group has developed Goldpac A7, a chip
design that has passed the test of the State Cryptography Administration
(SCA) of China. The Group also assisted the Bank of Changsha to launch the
first state cryptographic algorithm financial IC Card in China, in
preparation for the large-scale commercial implementation of China’s
national IC chips.

When it comes to innovation, the Group has developed a Bluetooth card
product and delivered embedded SE (Secure Element) components for wearables
payment devices. In addition, the Group achieved new breakthroughs for
usage on Cloud platform. Its proprietary Cloud-Platform Complete Solution,
due to be launched, decentralizes clients’ traditional card-issuance
businesses, to realize a “4A”‘ (Anybody, Anytime, Anywhere, Any applet)
card-issuance management model. This platform maximizes client value by
offering rapid response, low cost and stringent security. It is also a
pioneering realization of the synergistic combination of the application of
a ”sharing economy” philosophy and payment solution operation model.
Furthermore, the Group seeks expansion via M&A. During the year under
review, it invested in Sichuan Zhongruan Technology Limited to accelerate
its development in payment eco-system and related software and platform.

Two Decades of Sustainable Development
Target to be amongst the World’s Top 3
Commenting its future strategies, Mr. Lu said, “The Group will intensify
its efforts in product, service and platform innovation and aggressively
develop overseas markets to maintain its competitive advantages. Our
mid-term target is to be amongst the world’s top 3 payment solutions
suppliers. Capitalizing on its healthy financial position and a strong
funding pool, the Group will also explore M&A to expand its business in the
payment diversification era. These efforts will focus on expansion
opportunities in mobile payment, international remittance and exchange,
third-party payment and Internet finance, all of which will assist the
Group in accelerating the growth and create greater value for
shareholders.”

– End-

About Goldpac Group Limited (Stock Code: 03315)
With more than 20 years of successful experience and leading global
technologies, Goldpac is honoured to be ranked China’s No.1 and the world’s
No. 4 corporation in the secure payment industry.

Transforming from its traditional financial payment card business to an
integrated secure payment services platform, Goldpac serves clients all
over the world by providing secure payment systems, embedded software and
payment products, and data processing services. Its customers cover a wide
range of industries from financial services, social security and
healthcare, to transport, retail, mobile payment, identification,
third-party payment platforms and other security services domains.

Given China’s growing interconnectivity with the rest of the world, Goldpac
is now extending its superior solutions and services to an even wider
geographical network, delivering convenient, secure payment experiences to
people around the globe.

For more information, please visit http://www.goldpac.com/cn/.

Issused by Cornerstones Communications Ltd. on behalf of Goldpac Group
Limited. For enquires please contact :
Cornerstones Communications LimitedKylie Yeung / Tina Shi / Edward Siu / Vickie Yue
T: (852) 2903 9293 / 2903 9283 / 2903 9299 / 2903 9281
M: (852) 9489 6845 / 9575 0324 / 9848 6556 / 9409 6375
E: goldpac@cornerstonescom.com

End of Press Release

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Document: http://n.eqs.com/c/fncls.ssp?u=JIKJWABUWS
Document title: Goldpac Net Profit Rises 13% to RMB242 million for 2015

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Key word(s): Final Results

17/03/2016 Dissemination of a Press Release, transmitted by EQS TodayIR – a
company of EQS Group AG.
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446231 17/03/2016© DGAP, source DGAP Asian News