Hi Sun Tech (00818.HK) announced that the operating profit for the five months ending May 31, 2024, decreased significantly by about 65% compared with the same period last year. The group expects to record a significant reduction or even operating losses in the operating profit for the six months ended June 30, 2024, compared with the operating profit of approximately HKD 69.7 million for the same period last year, due to additional resource investment in overseas and cross-border business as well as traditional payment markets being further replaced by digital payments. However, due to the expansion stage of digital service business, the handling fee rate of digital payment is lower than that of traditional payment, resulting in a decrease in revenue and operating profit during the relevant period. Despite the short-term pressure expected during the transformation period, the group firmly believes that this strategic adjustment will lay a more solid foundation for future development.
The significant decrease or even operating losses in operating profit is mainly due to the further digital payment replacing the traditional payment market and the additional resource investment in overseas and cross-border business. And because digital service business is still in the expansion stage, the handling fee rate of digital payment is lower than that of traditional payment, leading to a decrease in revenue and operating profit during the relevant period. Despite the short-term pressure expected during the transformation period, the group firmly believes that this strategic adjustment will lay a more solid foundation for future development.