According to the Zhitong Finance App, Gaoyang Technology (00818) announced that the operating profit for the five months ended May 31, 2023 was drastically reduced by about 80% compared with the five months ended May 31, 2022. The Group expects the operating profit for the six months ending June 30, 2023 (mid-2023) to be drastically reduced compared to the operating profit of about HK$201.2 million obtained in the six months ending June 30, 2022 (mid-2022).
According to the announcement, the sharp decline in operating profits is mainly due to the traditional payment market being further replaced by digital payments. At the same time, the Group is actively making strategic adjustments to focus more on the digital service business. However, since the digital service business is in the expansion period, the processing rate for digital payments is lower than that of traditional payments. Combining the above overall transaction volume and average processing fee rate during the digital transition period, led to a decline in revenue and operating profit during the relevant period. However, despite the short-term pressure expected during the digital transformation period, the Group firmly believes that this strategic adjustment will further solidify the foundation for future development.