| The Board is pleased to present this Corporate Governance Report in the Group's annual report for the year ended 31 December 2008. | 董事會欣然於本集團截至二零零八年十二月三十一日止年度之年報提呈其企業管治報告。 |
| The Company wishes to highlight the importance of its Board of Directors ("Board") in ensuring effective leadership and control of the Company and transparency and accountability of all operations. | 本公司謹此表明,董事會(「董事會」)確保本公司有效領導及監控以及所有營運之透明度及問責性之重要性。 |
| The Company recognises the importance of good corporate governance to the Company's healthy growth and has devoted considerable efforts to identifying and formulating corporate governance practices appropriate to the Company's needs. | 本公司明瞭良好企業管治對本公司穩健發展之重要性,已努力確立及制定符合本公司需要之企業管治常規。 |
| The Company's corporate governance practices are based on the principles ("Principles") and code provisions ("Code Provisions") as set out in the Code on Corporate Governance Practices ("CG Code") contained in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Stock Exchange") ("Listing Rules"). | 本公司之企業管治常規乃以香港聯合交易所有限公司(「聯交所」)證券上市規則(「上市規則」)附錄14所載企業管治常規守則(「企業管治守則」)當中原則(「原則」)及守則條文(「守則條文」)為基礎。 |
| The Company has applied in formulating its corporate governance practices the Principles and complied with most of the Code Provisions for the year and up to the date of this report save for the limited deviation(s) on the grounds and causes explained below. | 除基於下述理由及原因產生之有限偏離外,於本年度及截至本報告日期,本公司在制定其企業管治常規時已應用原則,並一直遵守大部分守則條文。 |
| The Company periodically reviews its organisational structure to ensure that operations are conducted in accordance with the standards of the CG Code. | 本公司定期檢討其組織架構,確保業務運作符合企業管治守則之準則。 |
The key corporate governance principles and practices of the Company are summarised as follows:
## THE BOARD
## Responsibilities
The overall management of the Company’s business is vested in the Board, which assumes the responsibility for leadership and control of the Company and is collectively responsible for promoting the success of the Company by directing and supervising its affairs. All directors should make decisions objectively in the interests of the Company.
The Board reserves for its decisions all major matters of the Company which include the approval and monitoring of all policy matters, overall strategies and budgets, internal control and risk management systems, material transactions (in particular those may involve conflict of interests), financial information, appointment of directors and other significant financial and operational matters.
All directors are provided with full and timely access to board papers and relevant information as well as the advice and services of the Company Secretary, with a view to ensuring that Board procedures and all applicable rules and regulations are followed.
Each director is normally able to seek independent professional advice in appropriate circumstances at the Company’s expense, upon making request to the Board.
本公司主要企業管治原則及常規概述如下：
## 董事會
## 職責
本公司業務整體管理賦予董事會負責，董事會承擔領導及監控本公司之責任，並透過指導及監管事務，集體負責促進本公司之成就。全體董事均客觀就本公司利益作出決定。
董事會保留就本公司所有重要事項作出決策之權力，包括批准及監控所有政策、整體策略及預算、內部監控及風險管理制度、重大交易（特別是或涉及利益衝突者）、財務資料、委任董事及其他重大財務與營運事宜。
全體董事可全面及時獲得所有董事會文件及相關資料以及獲取公司秘書之意見及服務，以確保董事會會議程序及所有適用規則及規例獲得遵守。
各董事一般可於合適情況下，經向董事會提出要求，徵求獨立專業意見，而費用由本公司承擔。
The day-to-day management, administration and operation of the Company are delegated to the senior management. The delegated functions and work tasks are periodically reviewed. Approval has to be obtained from the Board prior to any significant transactions entered into by the senior management officers.
The Board has the full support of the senior management to discharge its responsibilities.
## Composition
The composition of the Board ensures a balance of skills and experience appropriate to the requirements of the business of the Company and to the exercising of independent judgement.
The Board currently comprises eight members, consisting of five executive directors and three independent non-executive directors.
The Board of the Company comprises the following directors:
Executive directors: Cheung Yuk Fung (Chairman) Kui Man Chun (Chief Executive Officer) Xu Wensheng Li Wenjin Xu Chang Jun
Independent non-executive directors: Tam Chun Fai (Chairman of Audit Committee) Leung Wai Man, Roger (Member of Audit Committee) Xu Sitao (Member of Audit Committee)
本公司日常管理、行政及營運授權予高級管理層負責。獲指派之職能及工作會定期檢討。高級管理人員訂立任何重大交易前，須獲得董事會批准。
董事會履行職責時可獲得高級管理層全面支援。
## 組成
董事會之組成確保在技巧和經驗方面取得平衡，適合本公司業務所需及行使獨立判斷。
董事會現由8名成員組成，包括5名執行董事及3名獨立非執行董事。
本公司董事會由以下董事組成：
執行董事：張玉峰渠萬春（行政總裁)徐文生李文晉徐昌軍
獨立非执行董事谭振輝（審核委員會主席）梁偉民（審核委員會成員）許思濤（審核委員會成員）
## Corporate Governance Report企業管治報告
| The list of directors (by category) is also disclosed in all corporate communications issued by the Company pursuant to the Listing Rules from time to time. | 上列董事(按類別計)亦於本公司根據上市規則不時發出之所有企業通訊披露。 |
| The biographical information of the directors of the Company and their relationship among the members of the Board of the Company, if any, are provided in the “Directors and Senior Management” section of this annual report. | 本公司董事之履歷資料及彼等與本公司董事會成員之關係(若有)在本年報「董事及高層管理人員」一節已有披露。 |
| During the year ended 31 December 2008, the Board at all times met the requirements of the Listing Rules relating to the appointment of at least three independent non-executive directors with at least one independent non-executive director possessing appropriate professional qualifications, or accounting or related financial management expertise. | 截至二零零八年十二月三十一日止年度,董事會一直遵守上市規則有關委任最少三名獨立非執行董事而其中最少一名獨立非執行董事須具備合適專業資歷或會計或相關財務管理專業知識之規定。 |
| The Company has received written annual confirmation from each independent non-executive director of his independence pursuant to the requirements of the Listing Rules, which confirmed to the Company that he has met the independence guidelines set out in the Listing Rules. | 本公司已接獲各獨立非執行董事根據上市規則規定所作出有關其獨立身分之年度確認書向本公司確認,彼等均符合上市規則所載獨立身分指引。 |
| The independent non-executive directors bring a wide range of business and financial expertise, experiences and independent judgement to the Board. By taking the lead in managing issues involving potential conflict of interests and serving on Board committees, all independent non-executive directors make various contributions to the effective direction of the Company. | 獨立非執行董事為董事會帶來廣泛商業及財務專業知識、經驗及獨立判斷。全體獨立非執行董事透過主導處理涉及潛在利益衝突事宜及參與董事會委員會,對本公司有效方針作出各方面貢獻。 |
## Appointment and Succession Planning of Directors
The Company has established formal, considered and transparent procedures for the appointment and succession planning of directors.
Code provision A.4.1 of CG Code stipulates that non-executive Director should be appointed for a specific term subject to re-election.
All directors, including non-executive directors, of the Company are appointed for tenures which shall expire with retirement by rotation once every three years.
On 18 April 2008, formal service contracts have been entered into between the Company and each of the independent non-executive Directors, further limiting the term of each such Director to 1 year from their respective appointment or their earlier retirement, resignation or removal. As such, the Company has complied with Code provision A.4.1 of the CG Code.
## Training for Directors
Each newly appointed director receives induction on the first occasion of his/her appointment, so as to ensure that he/she has appropriate understanding of the business and operations of the Company. Besides, the Company shall consider to engage external legal and other professional advisors for providing professional development and training programmes to directors on an occasional basis.
## 董事委任及繼任規劃
本公司已訂立正式經考慮且具透明度之董事委任及繼任規劃程序。
企業管治守則條文第A.4.1條訂明非執行董事須按特定任期委任，並可膺選連任。
包括非執行董事在內之本公司全體董事均通過委任產生，任期應於每三年輪席告退一次時屆滿。
於二零零八年四月十八日，本公司已與各獨立非執行董事訂立正式服務合約，進一步將有關董事之任期限定為自其各自獲委任起一年，或其提早退休、辭任或罷免時止。因此，本公司已遵守企業管治守則之守則條文第A.4.1條。
## 董事培訓
各新委任董事於最初獲委任時獲得就職介紹，確保彼恰當瞭解本公司業務及運作。此外，本公司將考慮委聘外聘法律及其他專業顧問，以按非經常性質，向董事提供專業發展及培訓計劃。
## Corporate Governance Report企業管治報告
## Board Meetings and Directors’ Attendance
Regular Board meetings were held four times during the year for reviewing and approving the financial and operating performance, for approving the final results for the year ended 31 December 2007, interim results for the period ended 30 June 2008 and considering and approving the overall strategies and policies of the Company.
In addition, the Board held 11 meetings for formulating policies and implementing laid-down policies during the year ended 31 December 2008.
## 董事會會議及董事出席情況
年內曾舉行四次常規董事會會議，審閱及批准財務及營運表現，批准截至二零零七年十二月三十一日止年度全年業績、截至二零零八年六月三十日止期間中期業績，並考慮及批准本公司整體策略及政策。
此外，董事會於截至二零零八年十二月三十一日止年度曾舉行十一次會議，制訂政策及推行已訂政策。
## Corporate Governance Report企業管治報告
The individual attendance record of each director at the meetings of the Board and Audit Committee during the year ended 31 December 2008 is set out below:
各董事於截至二零零八年十二月三十一日止年度出席董事會會議及審核委員會會議之個別記錄載列如下：
Attendance/Number of meetings會議出席／舉行次數
| Remuneration CommitteeTam Chun Fai (Chairman)Leung Wai Man, RogerLi Wenjin | 薪酬委員會譚振輝(主席)梁偉民李文晉 |
| The Board committees are provided with sufficient resources to discharge their duties and, upon reasonable request, are able to seek independent professional advice in appropriate circumstances, at the Company's expenses. | 董事會委員會獲提供充足資源履行職責及可於適當情況下,合理要求徵求獨立專業意見,費用由本公司承擔。 |
| Nomination CommitteeThe principal duties of the Nomination Committee include reviewing the structure, size and composition of the Board, developing and formulating relevant procedures for nomination and appointment of directors, making recommendations to the Board on the appointment and succession planning of directors, and assessment of the independence of the independent non-executive directors. | 提名委員會提名委員會之主要職責包括審閱董事會之架構、規模及組成、制定有關董事提名及委任程序以及就董事委任及繼任規劃向董事會作出意見,並評估獨立非執行董事之獨立身分。 |
| The Nomination Committee carries out the process of selecting and recommending candidates for directorships by making reference to the balance of expertise, skills, experience, professional knowledge, personal integrity and time commitments of such individuals, the requirements of the business of the Group and other relevant statutory requirements and regulations. An external recruitment agency may be engaged to carry out the recruitment and selection process when necessary. | 提名委員會負責就均衡專業知識、技能、經驗、專業知識、個人誠信及投入時間以及就本集團業務需要及其他相關法定規則及規例,甄選及推薦候任董事人選。有需要時或會委任外界招聘代理進行招聘及甄選程序。 |
| In accordance with the Company's bye-laws 87(1) and 87(2), Mr. Kui Man Chun and Mr. Xu Chang Jun, executive directors of the Company, Mr. Xu Sitao, independent non-executive directors of the Company, shall retire by rotation and being eligible, offer themselves for re-election at the 2009 annual general meeting. | 根據本公司之公司細則第87(1)及87(2)條,本公司執行董事渠萬春先生及徐昌軍先生、本公司獨立非執行董事許思濤先生將輪值告退,惟符合資格並願意於二零零九年股東週年大會膺選連任。 |
## Corporate Governance Report企業管治報告
The Board recommended the re-appointment of the directors standing for re-election at the 2009 annual general meeting of the Company.
The Company’s circular dated 22 April 2009 contains detailed information of the directors standing for reelection.
## Remuneration Committee
The primary objectives of the Remuneration Committee include making recommendations on and approving the remuneration policy and structure and remuneration packages of the directors and the senior management. The Remuneration Committee is also responsible for establishing transparent procedures for developing such remuneration policy and structure to ensure that no director or any of his/her associates will participate in deciding his/her own remuneration, which remuneration will be determined by reference to the performance of the individual and the Company as well as market practice and conditions.
The Remuneration Committee normally meets for reviewing the remuneration policy and structure and determination of the annual remuneration packages of the directors and the senior management and other related matters. The Human Resources Department is responsible for collection and administration of the human resources data and making recommendations to the Remuneration Committee for consideration. The Remuneration Committee shall consult the Chairman and/or the B o a r d o f t h e C o m p a n y a b o u t t h e s e recommendations on remuneration policy and structure and remuneration packages.
董事會推薦重選於本公司二零零九年股東週年大會膺選連任之董事。
本公司日期為二零零九年四月二十二日之通函載有膺選連任董事詳細資料。
## 薪酬委員會
薪酬委員會主要職責包括就董事及高級管理人員薪酬政策及結構與薪酬待遇作出推薦意見及加以批准。薪酬委員會亦負責制定該等薪酬政策及結構之具透明度程序，確保並無董事或彼任何聯繫人士參與釐定本身薪酬，而薪酬將參考個人及公司表現以及市場常規及情況後釐定。
薪酬委員會一般就審閱薪酬政策及結構以及釐定董事及高級管理人員年度薪酬待遇與其他相關事務舉行會議。人力資源部門負責收集及管理人力資源數據，並向薪酬委員會作出意見，以供其考慮。薪酬委員會須就該等薪酬政策及結構與薪酬待遇意見諮詢主席及／或本公司董事會。
## Audit Committee
The Audit Committee comprises three independent non-executive directors (including one independent non-executive director who possesses the appropriate professional qualifications or accounting or related financial management expertise). None of the members of the Audit Committee is a former partner of the Company’s existing external auditors.
The main duties of the Audit Committee include the following:
(a) To review the financial statements and reports and consider any significant or unusual items raised by the qualified accountant or external auditors before submission to the Board.
(b) To review the relationship with the external auditors by reference to the work performed by the external auditors, their fees and terms of engagement, and make recommendation to the Board on the appointment, re-appointment and removal of external auditors.
(c) To review the adequacy and effectiveness of the Company’s financial reporting system, internal control system and risk management system and associated procedures.
The Audit Committee held two meetings during the year ended 31 December 2008 to review the financial results and reports, financial reporting and compliance procedures, internal control system and risk management review and processes and the reappointment of the external auditors.
There is no material uncertainties relating to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
## 審核委員會
審核委員會由三名獨立非執行董事組成，當中包括一名具備合適專業資歷或會計或相關財務管理專業知識之獨立非執行董事。審核委員會全體成員均非本公司現任外聘核數師之前合夥人。
## 審核委員會之主要職責包括：
(a) 審閱財務報表及報告，並於提交董事會前，考慮合資格會計師或外聘核數師提出之任何重大或不尋常項目。
(b) 參考外聘核數師所進行工作、費用及聘用條款，檢討與外聘核數師之關係，並就委任、續聘及罷免外聘核數師向董事會提出意見。
(c) 審閱本公司財務報告制度、內部監控制度、風險管理制度及相關程序是否充份及具備效益。
審核委員會於截至二零零八年十二月三十一日止年度曾舉行兩次會議，審閱財務業績及報告、財務報告及守章程序、內部監控制度及風險管理審閱與程序以及續聘外聘核數師。
並無有關或會對本公司按持續基準經營之能力產生重大疑問之事件或情況。
## Corporate Governance Report企業管治報告
There is no different view taken by the Audit Committee from the Board regarding the selection, appointment, resignation or dismissal of external auditors.
The Company’s annual results for the year ended 31 December 2008 has been reviewed by the Audit Committee.
## MODEL CODE FOR SECURITIES TRANSACTIONS
The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix 10 to the Listing Rules.
Specific enquiry had been made to all the directors and the directors have confirmed that they have complied with the Model Code throughout the year ended 31 December 2008.
The Company has also established written guidelines with exact terms as set out in Appendix 10 to the Listing Rules for securities transactions by employees who are likely to be in possession of unpublished price-sensitive information of the Company.
## RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS
The Board is responsible for presenting a balanced, clear and understandable assessment of annual and interim reports, price-sensitive announcements and other disclosures required under the Listing Rules and other regulatory requirements.
The directors acknowledge their responsibility for preparing the financial statements of the Company for the year ended 31 December 2008.
審核委員會就外聘核數師甄選、委任、辭任或罷免所持意見與董事會無異。
本公司截至二零零八年十二月三十一日止年度業績已經由審核委員會審閱。
## 證券交易的標準守則
本公司已採納上市規則附錄10所載上市發行人董事進行證券交易的標準守則（「標準守則」）。
經向全體董事作出具體查詢後，董事已確認彼等於截至二零零八年十二月三十一日止年度一直符合標準守則。
本公司已制定可能取得本公司未公佈股價敏感資料之僱員進行證券交易之書面指引，該等指引與上市規則附錄10所載條款相同。
## 有關財務報表之責任
董事會須負責提呈年報及中期報告的均衡、清晰及易於理解評估、上市規則與其他監管規則所規定的股價敏感公佈及其他披露資料。
董事明瞭彼等編製本公司截至二零零八年十二月三十一日止年度財務報表之責任。
The statement of the external auditors of the Company about their reporting responsibilities on the financial statements is set out in the “Independent Auditor’s Report” on pages 72 to 75.
## INTERNAL CONTROL
For the internal control system of the Company, the Board has developed the Group’s systems of internal control and risk assessment and management. The Board has overall responsibility for reviewing and maintaining an adequate and effective internal control system to safeguard the interests of the shareholders and the assets of the Group. During the year, the Board has conducted reviews of the internal control system and considered the internal control system of the Group has been implemented effectively.
## AUDITORS’ REMUNERATION
The external auditors have rendered certain nonaudit services to the Company for the year ended 31 December 2008 amounted to approximately of HK\$0.4 million. The remuneration paid to the external auditor of the Company in respect of audit services for the year ended 31 December 2008 amounted to approximately of HK\$2.4 million.
## SHAREHOLDER RIGHTS AND INVESTOR RELATIONS
The rights of shareholders and the procedures for demanding a poll on resolutions at shareholders’ meetings are contained in the Company’s bye-laws. Details of such rights and procedures to demand a poll are included in all circulars to shareholders during the year and the procedures for conducting a poll will be explained during the proceedings of meetings.
本公司外聘核數師有關彼等申報財務報表責任之聲明載於第72至75頁「獨立核數師報告」。
## 內部監控
董事會就本公司內部監控制度制定本集團的內部監控及風險評估及管理制度，董事會對檢討及維持足夠及有效的內部監控措施負有全面責任，以保障股東利益及本集團資產。年內，董事會曾檢討其內部監控制度，並認為本集團之內部監控制度一直行之有效。
## 核數師酬金
外聘核數師曾於截至二零零八年十二月三十一日止年度向本公司提供非核數服務，金額約400,000港元。就截至二零零八年十二月三十一日止年度之核數服務，本公司向外聘核數師支付之酬金約2,400,000港元。
## 股東權利及投資者關係
股東權利及在股東大會要求按股數投票表決之程序，載於本公司之公司細則。要求按股數投票表決之權利及程序詳情，載於年內致各股東之所有通函，並將於會上講解按股數投票表決之程序。
## Corporate Governance Report企業管治報告
Poll results will be posted on the website of the Stock Exchange on the business day following the shareholders’ meeting.
Deviation from Code Provision E.1.2 (& reason):
Code provision E.1.2 stipulates that the Chairman of the Board should attend the annual general meeting. The Chairman did not attend the annual general meeting held on 23 May 2008, however, Mr. Li Wenjin, as an executive director of the Company, took the chair pursuant to the bye-laws of the Company.
The Board recognises that the general meetings of the Company provide a forum for communication between the shareholders and the Board. The Chairman of the Board, or at his absence, an executive director of the Company, as well as chairmen of the Nomination Committee, Remuneration Committee and Audit Committee, or in their absence, other members of the respective committees, and where applicable, the independent Board committee, will be available to answer questions at future shareholders’ meetings.
Separate resolutions are proposed at shareholders’ meetings on each substantial issue, including the election of individual directors.
The Company continues to enhance communications and relationships with its investors. Designated senior management maintains regular dialogue with institutional investors and analysts to keep them abreast of the Company’s developments. Enquiries from investors are dealt with in an informative and timely manner.
按股數投票表決結果將於股東大會後之營業日，在聯交所網站刊載。
偏离守則条文第E.1.2条（及原因）：守則條文第E.1.2條訂明董事會主席須出席股東週年大會，而主席並未出席於二零零八年五月二十三日舉行之股東週年大會，然而，本公司執行董事李文晉先生則根據本公司之公司細則出席會議並擔任主席。
董事會確認，本公司股東大會提供股東與董事會溝通之平台。董事會主席或（倘彼未能出席）本公司執行董事以及提名委員會、薪酬委員會及審核委員會與（如適用）獨立董事委員會主席或（倘彼等未能出席）各委員會成員，將出席日後股東會議，回答提問。
須於股東大會就各重大事項提呈獨立決議案，包括選舉個別董事。
本公司繼續加強與投資者之溝通及關係。指定高級管理人員與機構投資者及分析員經常聯繫，以簡報本公司發展。投資者查詢均盡快處理以提供有用資料。
## Corporate Governance Report企業管治報告
To promote effective communication, the Company maintains a website at www.hisun.com.hk, where extensive information and updates on the Company’s business developments and operations, financial information, corporate governance practices and other information are posted.
On behalf of the Board
Cheung Yuk Fung Chairman
Hong Kong, 6 April 2009為 促 進 有 效 溝 通 ， 本 公 司 設 有 網 站www.hisun.com.hk，刊載本公司業務發展及營運、財務資料、企業管治常規之廣泛及最新資料與其他資料。
代表董事會
主席張玉峰
香港，二零零九年四月六日
## Report of the Directors董事會報告
The Directors submit their report together with the audited financial statements for the year ended 31 December 2008.
## PRINCIPAL ACTIVITIES ANDGEOGRAPHICAL ANALYSIS OFOPERATIONS
The principal activity of the Company is investment holding. The principal activities of the Group during the year were sales of information technology products, electronic payment products and services, sales of electronic power meters and solutions, provision of business process operation services, provision of information system consultancy and integration services and provision of information technology operation value-added services.
An analysis of the Group’s performance for the year by business and geographical segments is set out in note 5 to the financial statements.
## RESULTS AND APPROPRIATIONS
The results of the Group for the year ended 31 December 2008 are set out in the consolidated income statement on page 76.
The Directors do not recommend the payment of a dividend (2007: Nil).
## RESERVES
Movements in the reserves of the Group and the Company during the year are set out in note 26 to the financial statements.
董事會謹此提呈彼等之報告及截至二零零 八年十二月三十一日止年度之經審核財務 報表。
## 主要業務及地區業務分析
本公司之主要業務為投資控股。年內，本集團之主要業務為銷售資訊科技產品、電子支付產品及服務、銷售電子式電能表及解決方案、提供業務運營服務、提供資訊系統諮詢及集成服務及提供資訊科技運營增值服務。
本集團於本年度之表現按業務及地區劃分之分析載於財務報表附註5。
## 業績及分配
本集團截至二零零八年十二月三十一日止年度之業績載於第76頁之綜合收益表。
董事並不建議派付任何股息（二零零七年：無）。
## 儲備
年內本集團及本公司之儲備變動詳情載於財務報表附註26。
## DONATIONS
Charitable and other donations made by the Group during the year amounted to HK\$1,150,000 (2007: HK\$21,400).
## PROPERTY, PLANT AND EQUIPMENT
Details of the movements in property, plant and equipment of the Group are set out in note 15 to the financial statements.
## SHARE CAPITAL AND SHARE OPTIONS
Details of the movements in the Company’s share capital and share options are set out in note 25 to the financial statements.
## DISTRIBUTABLE RESERVES
As at 31 December 2008, the Company had reserves of HK\$96,736,000 available for distribution as calculated under the Companies Act 1981 of Bermuda (as amended) (2007: HK\$133,244,000). However, the Company’s share premium account, in the amount of HK\$776,034,000 (2007: HK\$776,034,000) may be distributed in the form of fully paid bonus shares.
## PRE-EMPTIVE RIGHTS
There is no provision for pre-emptive rights under the Company’s bye-laws and there was no restriction against such rights under the laws of Bermuda.
## FIVE YEAR FINANCIAL SUMMARY
A summary of the results and of the assets and liabilities of the Group for the last five financial years is set out on page 176.
## 捐獻
本集團於本年度作出的慈善及其他捐獻金為1,150,000港元（二零零七年：21,400港元）。
## 物業、廠房及設備
本集團物業、廠房及設備之變動詳情載於財務報表附註15。
## 股本及購股權
本公司股本及購股權之變動詳情載於財務報表附註25。
## 可供分派儲備
根據百慕達一九八一年公司法（經修訂）計算，本公司於二零零八年十二月三十一日有儲備96,736,000港元可供分派（二零零七年：133,244,000港元）。然而，本公司可以 繳 足 紅 股 方 式 分 派 股 份 溢 價 賬中為數776,034,000港元（二零零七年：776,034,000港元）之款項。
## 優先認股權
本公司之公司細則並無有關優先認股權之條文規定，而百慕達法例亦無有關該等權利之限制。
## 五年財務概要
本集團於過去五個財政年度之業績及資產與負債概要載於第176頁。
## PURCHASE, SALE OR REDEMPTION OF SECURITIES
The Company has not redeemed any of its shares during the year. Neither the Company nor any of its subsidiaries has purchased or sold any of the Company’s shares during the year.
## DIRECTORS
The Directors during the year and up to the date of this report were:
## Executive Directors:
CHEUNG Yuk Fung KUI Man Chun XU Wensheng LI Wenjin XU Chang Jun
## Independent non-executive Directors:
TAM Chun Fai LEUNG Wai Man, Roger XU Sitao
In accordance with the Company’s bye-laws 87(1) and 87(2), one-third of the Directors of the Company are subject to retirement by rotation and re-election at the annual general meeting of the Company.
Messrs. Kui Man Chun, Xu Chang Jun and Xu Sitao will retire and, being eligible, will offer themselves for re-election at the forthcoming annual general meeting.
## 購買、出售或贖回證券
本公司於年內並無贖回其任何股份。年內，本公司或其任何附屬公司概無購買或出售本公司任何股份。
## 董事
年內及直至本報告日期之董事為：
## 執行董事：
## 獨立非執行董事：
譚振輝 梁偉民 許思濤
根據本公司之公司細則第87(1)及第87(2)條，本公司三分一董事須於本公司股東週年大會上輪值告退並可膺選連任。
渠萬春先生、徐昌軍先生及許思濤先生將退任，而彼等符合資格並願意於應屆股東週年大會膺選連任。
## DIRECTORS’ SERVICE CONTRACTS
As at the date of this report, each of Mr. KUI Man Chun, Mr. LI Wenjin, Mr. XU Wensheng and Mr. XU Chang Jun has entered into a service contract with the Company for a term of one year from 1 January 2004 and shall continue thereafter unless and until terminated by either the Company or the Directors giving to the other not less than a notice of three months. Save as disclosed herein, none of the Directors had any existing or proposed service contracts with the Company or any member of the Group (excluding contracts expiring or determinable within one year without payment of compensation, other than statutory compensation).
## DIRECTORS’ INTERESTS IN CONTRACTS
No contracts of significance in relation to the Group’s business to which the Company, its fellow subsidiaries or its holding company was a party and in which a Director of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year.
## BIOGRAPHICAL DETAILS OF DIRECTORS AND SENIOR MANAGEMENT
Brief biographical details of Directors and senior management are set out on pages 16 to 20.
## 董事之服務合約
於本報告日期，渠萬春先生、李文晉先生、徐文生先生及徐昌軍先生已各自與本公司訂立服務合約，任期自二零零四年一月一日起計，為期一年，並於其後繼續有效，除非及直至本公司或董事向對方發出不少於三個月之通知而終止。除本報告披露者外，各董事概無與本公司或本集團任何成員公司訂有或擬訂立任何服務合約，惟不包括於一年內屆滿或可遭本公司終止而毋須賠償（法定賠償除外）之服務合約。
## 董事於合約之權益
本公司、其同系附屬公司或其控股公司概無於本年度終結時或年內任何時間訂有任何本公司董事於當中直接或間接擁有任何重大權益，且與本集團業務有關之重大合約。
## 董事及高級管理人員之履歷詳情
董事及高級管理人員之履歷詳情概要載於第16頁至20頁。
## DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES
As at 31 December 2008, the interests and short positions of each Director and chief executive in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of the Securities and Futures Ordinance (“SFO”)), as recorded in the register maintained by the Company under Section 352 of the SFO or as notified to the Company were as follows:
Ordinary shares of HK\$0.0025 each in the Company
## 董事及行政總裁於股份、相關股份及債券之權益及淡倉
於二零零八年十二月三十一日，各董事及行政總裁於本公司及其相聯法團（定義見證券及期貨條例（「證券及期貨條例」））之股份、相關股份及債券中擁有，已記入本公司根據證券及期貨條例第352條存置之登記冊或已知會本公司之權益及淡倉如下：
本公司每股面值0.0025港元之普通股
| The Share Subdivision has led to an adjustment to the exercise prices of the outstanding options and the number of shares to be issued by the Company upon exercise of the outstanding options. For share options with exercise period from 18 March 2004 to 17 March 2014, the number of shares to be issued by the Company upon full exercise of such outstanding options immediately before the Share Subdivision has been increased from 23,000,000 shares to 92,000,000 shares and the exercise price has been adjusted from HK$0.374 to HK$0.0935 per share. For share options with exercise period from 26 September 2005 to 25 September 2015, the number of shares to be issued by the Company upon full exercise of such options immediately before the Share Subdivision has been increased from 33,300,000 shares to 133,200,000 shares and the exercise price has been adjusted from HK$0.768 to HK$0.192 per Share. | 股份分拆導致須調整未行使購股權之行使價及本公司於未行使購股權獲行使時將予發行之股份數目。就行使期由二零零四年三月十八日至二零一四年三月十七日之購股權而言,本公司於緊接股份分拆前,在有關尚未行使購股權獲悉數行使時將予發行之股份數目,由23,000,000股增至92,000,000股,而行使價則由每股股份0.374港元調整至每股股份0.0935港元。就行使期由二零零五年九月二十六日至二零一五年九月二十五日之購股權而言,本公司於緊接股份分拆前,在有關購股權獲悉數行使時將予發行之股份數目,由33,300,000股增至133,200,000股,而行使價則由每股股份0.768港元調整至每股股份0.192港元。 |
| Pursuant to an ordinary resolution passed on 11 December 2006, a refreshment of the limit on grant of options under the Scheme was approved by the shareholders. Upon the refreshment of the 10% limit on grant of options under the Scheme, an additional 43,000,000 shares may be issued pursuant to the grant of further options under the Scheme. | 根據於二零零六年十二月十一日通過的普通決議案,股東批准更新該計劃項下可授出購股權之限額。更新該計劃項下可授出購股權之10%限額後,可根據該計劃項下進一步授出之購股權發行額外43,000,000股股份。 |
| On 2 January 2007, 43,000,000 share options were granted to certain employees at an exercise price of HK$2 per share (the average closing price of the shares as quoted in the daily quotations sheets issued by Stock Exchange of Hong Kong Limited for the five business days immediately preceding 2 January 2007) with an expiry date of 1 January 2010. | 於二零零七年一月二日,本公司向若干僱員授出43,000,000份購股權,行使價每股2港元(香港聯合交易所有限公司緊接二零零七年一月二日前五個營業日發出之每日報價單所報股份平均收市價),到期日為二零一零年一月一日。 |
## Report of the Directors董事會報告
| Share options granted to a Director, chief executive or substantial shareholder of the Company, or to any of their associates, are subject to approval in advance by the independent non-executive Directors. In addition, any share options granted to a substantial shareholder or an independent non-executive Director of the Company or to any of their associates, in excess of 1% of the shares of the Company in issue at any time or with an aggregate value (based on the price of the Company's shares at the date of the grant) in excess of HK$5 million, within any 12-month period, are subject to shareholders' approval in advance in a general meeting.The offer of a grant of share options may be accepted within 21 days from the date of the offer, upon payment of a nominal consideration of HK$1 in total by the grantee. The exercise period of the share options granted is determinable by the Directors, and commences either immediately or after a certain vesting period and ends on a date which is not later than 10 years from the date of the offer of the share options or the expiry date of the Scheme, if earlier.The exercise price of the share options is determinable by the Directors, but may not be less than the higher of (i) the Hong Kong Stock Exchange closing price of the Company's shares on the date of the offer of the share options; (ii) the average Hong Kong Stock Exchange closing price of the Company's shares for the five trading days immediately preceding the date of the offer; and (iii) the nominal value of the Company's shares. | 授出購股權予董事、本公司行政總裁或主要股東或彼等之任何聯繫人士須得到獨立非執行董事之事先批准。此外,授出任何購股權予本公司之主要股東或獨立非執行董事或彼等之任何聯繫人士,以致彼等可藉此獲得之股份於任何十二個月期間超過本公司於任何時間之已發行股份1%或其總值(根據本公司股份於授出當日之價格計算)超過5,000,000港元,均須於股東大會上取得股東事先批准。建議授出之購股權可於建議授出當日起計21日內接納,而承授人須於接納建議時支付合共1港元作為象徵式代價。已授出購股權之行使期乃由董事釐定,於即時或若干歸屬期後開始,惟最遲不得於授出購股權當日起十年或該計劃屆滿日期(以較早之日期為準)時終止。購股權之行使價由董事釐定,惟不得低於以下之較高者:(i)本公司股份在建議授出購股權當日於香港聯交所之收市價;(ii)本公司股份於緊接建議授出日期前五個交易日於香港聯交所之平均收市價;及(iii)本公司股份面值。 |
There are no changes in any term of the Scheme during the year ended 31 December 2008.
During the year ended 31 December 2008, no share options have been granted, exercised or lapsed. The Group has no legal or constructive obligation to purchase or settle the option in cash. As at the date of this report, the Company has 41,458,000 share options outstanding.
## (b) Employee incentive scheme of a subsidiary
On 4 April 2005, the Company approved its wholly-owned subsidiary, Turbo Speed Technology Limited (“Turbo Speed”), to adopt an employee incentive scheme (the “Employee Incentive Scheme”) to motivate the employees of Turbo Speed and its subsidiary (the “Turbo Speed Group”). Eligible participants of the Employee Incentive Scheme include the full-time employees of Turbo Speed or any of its subsidiary, including any directors of Turbo Speed or any of its subsidiary (but excluding any person who is a Director of the Company) provided always that such term shall exclude any person who has tendered his resignation or who at the relevant time is working out his period of notice pursuant to his employment contract or otherwise. The Scheme became effective from 29 April 2005 to 31 December 2008, unless terminated by resolution of a remuneration committee formed by the Board to administer the Employee Incentive Scheme (the “Committee”).
## Report of the Directors董事會報告
該計劃之所有條款概無於截至二零零 八年十二月三十一日止年度內變更。
截至二零零八年十二月三十一日止年度，並無任何購股權獲授出、行使或失效。本集團並無以現金購買或償付購股權之法律或推定責任。於本報告日期，本公司有41,458,000份購股權尚未行使。
## (b) 一家附屬公司之僱員獎勵計劃
於二零零五年四月四日，本公司批准其 全 資 附 屬 公 司 Turbo SpeedTechnology Limited（「Turbo Speed」）採納僱員獎勵計劃（「僱員獎勵計劃」），以鼓勵Turbo Speed及其附屬公司（「Turbo Speed集團」）之僱員。僱員獎勵計劃之合資格參與者包括Turbo Speed或其任何附屬公司之全職僱員，包括Turbo Speed或其任何附屬公司的任何董事（但不包括為本公司董事之任何人士），惟上述計劃不適用於已遞交辭呈或根據彼之僱傭合約或以其他形式的僱用條款，已於有關時間發出離職通知的人士。除非董事會就執行僱員獎勵計劃而成立的薪酬委員會（「委員會」）以決議案終止該計劃外，僱員獎勵計劃於二零零五年四月二十九日起生效，直至二零零八年十二月三十一日止。
## Report of the Directors董事會報告
The total number of shares in respect of which options may be granted shall not exceed 4,682,275 ordinary shares of Turbo Speed (“Turbo Speed Shares”), representing approximately 13.0% of the existing issued share capital of Turbo Speed, currently held by a wholly-owned subsidiary of the Company. Share options may be offered to any employee determined by the Committee in its absolute discretion from time to time by reference to: (i) the performance of that Employee; and (ii) the financial performance of the Turbo Speed Group and the extent to which the Turbo Speed Group has achieved its intended business plans. The maximum number of the Turbo Speed Shares which may be offered to an employee who is also a director of companies within the Turbo Speed Group in any 12-month period may not exceed 1% of the entire issued share capital of Turbo Speed.
On 8 July 2005, 1,425,000 share options had been granted to certain directors and employees of a subsidiary of Turbo Speed to subscribe ordinary shares of Turbo Speed at an exercise price of HK\$1.922 per share. The exercisable period of the above share options is from 8 July 2005 to 31 December 2008 (both dates inclusive). During the year ended 31 December 2006, 1,245,000 share options have been lapsed. During the year ended 31 December 2008, no share options have been exercised and 180,000 share options have been lapsed. As at 31 December 2008, no share option in Turbo Speed was outstanding.
有關授出購股權所涉及的股份總數不得超過Turbo Speed的4,682,275股普通股（「Turbo Speed股份」），相當於Turbo Speed現時由本公司一家全資附屬公司持有之已發行股本約13.0%。購股權可由委員會不時參考下列各項後全權酌情決定向任何僱員提呈︰(i)該名僱員之表現；及(ii)Turbo Speed集團之財務表現及其可達致其擬定業務計劃的程度。於任何十二個月期間，可向同時為Turbo Speed集團內公司董事之僱員提呈的Turbo Speed股份，最多不得超過Turbo Speed全部已發行股本的1%。
於二零零五年七月八日，已向TurboSpeed一家附屬公司若干董事及僱員授出1,425,000份購股權，可按每股1.922港元之行使價認購Turbo Speed普通股。上述購股權之行使期為二零零五年七月八日至二零零八年十二月三十一日（包括首尾兩日）。截至二零零六年 十 二 月 三 十 一 日 止 年 度 ， 已 有1,245,000份購股權失效。截至二零零八年十二月三十一日止年度，並無任何購股權獲行使及180,000份購股權已失效。於二零零八年十二月三十一日，Turbo Speed概無尚未行使購股權。
\*\* RGL董 事 及 | Share capital股本HK$'000千港元 | Share premium股份溢價HK$'000千港元 | Contributed surplus實繳盈餘HK$'000千港元 | Other reserves其他儲備HK$'000千港元 | Exchange reserve外匯儲備HK$'000千港元 | Retained earnings保留盈利HK$'000千港元 | Non-controlling interests非控股權益HK$'000千港元 | Total合計HK$'000千港元 |
| Balance at 1 January 2008 | 於二零零八年一月一日之結餘 | 5,580 | 548,330 | 168,434 | 34,496(13,292) | 40,960 | 257,047 | 46,013(2,242) | 1,100,860(15,534) |
| Purchase of 5% equity interest in a subsidiary (Note 34) | 收購一家附屬公司5%股權(附註34) | - | - | - | - | - |
| Profit for the year | 年內溢利 | - | - | - | - | - | 114,350 | 21,328 | 135,678 |
| Exchange differences arising on translation of the financial statements of foreign subsidiaries | 換算海外附屬公司財務報表產生之匯兑差額 | - | - | - | - | 41,062 | - | 2,603 | 43,665 |
| Balance at 31 December 2008 | 於二零零八年十二月三十一日之結餘 | 5,580 | 548,330 | 168,434 | 21,204 | 82,022 | 371,397 | 67,702 | 1,264,669 |
The notes on pages 85 to 175 are an integral part of these consolidated financial statements.
第85至175頁之附註乃綜合財務報表之其中部分。
## Consolidated Statement of Changes in Equity 綜合權益變動表
For the year ended 31 December 2007 截至二零零七年十二月三十一日止年度
Attributable to the equity holders of the Company 本公司權益持有人應佔
| Share capital股本HK$'000千港元 | Share premium股份溢價HK$'000千港元 | Contributed surplus實繳盈餘HK$'000千港元 | Other reserves其他儲備HK$'000千港元 | Exchange reserve外匯儲備HK$'000千港元 | Retained earnings保留盈利HK$'000千港元 | Non-controlling interests非控股權益HK$'000千港元 | Total合計HK$'000千港元 |
| Balance at 1 January 2007 | 於二零零七年一月一日之結餘 | 4,699 | 269,586 | 168,434 | 156,494 | 7,688 | 72,771 | - | 679,672 |
| Profit for the year | 年內溢利 | - | - | - | - | - | 184,276 | 8,245 | 192,521 |
| Shares issued under share options scheme of the Company | 根據本公司購股權計劃發行股份 | 208 | 15,474 | - | - | - | - | - | 15,682 |
| Issue of new shares upon the conversion of convertible preference shares issued by subsidiaries | 於轉換附屬公司發行之可換股優先股時發行新股份 | 581 | 171,112 | - | (149,614) | - | - | - | 22,079 |
| Employee share option scheme - value of employee services | 僱員購股權計劃一僱員服務價值 | - | - | - | 27,616 | - | - | - | 27,616 |
| Deemed disposal of a subsidiary | 視作出售一家附屬公司 | - | - | - | - | - | - | 34,868 | 34,868 |
| Acquisition of subsidiaries | 收購附屬公司 | 92 | 92,158 | - | - | - | - | 776 | 93,026 |
| Exchange differences arising on translation of the financial statements of foreign subsidiaries | 換算海外附屬公司財務報表產生之匯兑差額 | - | - | - | - | 33,272 | - | 2,124 | 35,396 |
| Balance at 31 December 2007 | 於二零零七年十二月三十一日之結餘 | 5,580 | 548,330 | 168,434 | 34,496 | 40,960 | 257,047 | 46,013 | 1,100,860 |
The notes on pages 85 to 175 are an integral part of these consolidated financial statements.
第85至175頁之附註乃綜合財務報表之其中部分。
| Year ended 31 December截至十二月三十一日止年度 |
| 2008二零零八年HK$'000千港元 | 2007二零零七年HK$'000千港元 |
|
|
| Cash flows from operating activities | 經營業務之現金流量 | | |
| Cash generated from operations | 經營所得現金 | 31(a) | 139,185 | 121,722 |
| Interest paid | 已付利息 | | (1,544) | (2,464) |
| Preferred dividend paid by a subsidiary | 一家附屬公司已付優先股股息 | | - | (603) |
| Hong Kong income tax paid | 已付香港所得税 | | (352) | (4,156) |
| Overseas income tax paid | 已付海外所得税 | | (38,449) | (10,520) |
| Net cash generated from operating activities | 經營業務所得現金淨額 | | 98,840 | 103,979 |
| Cash flows from investing activities | 投資活動之現金流量 | | |
| Purchase of 5% equity interest in a subsidiary | 收購一家附屬公司5%股權 | 34 | (15,534) | - |
| Purchase of property, plant and equipment | 購置物業、廠房及設備 | 15 | (13,942) | (34,131) |
| Purchase of leasehold land | 購買租賃土地 | 16 | (1,092) | - |
| Purchase of intangible assets | 購置無形資產 | 17 | (673) | - |
| Proceeds from sales of property, plant and equipment | 出售物業、廠房及設備所得款項 | 31(b) | 1,308 | 5,240 |
| Interest received | 已收利息 | | 4,400 | 9,303 |
| Acquisition of 95% equity interest in subsidiaries, net of cash required | 收購附屬公司之95%股權,不含現金收購淨額 | | - | (154,155) |
| Proceeds from deemed disposal of 20% equity interest in a subsidiary | 視作出售於一家附屬公司之20%股權之所得款項 | | - | 78,125 |
| Net cash used in investing activities | 投資活動所用現金淨額 | | (25,533) | (95,618) |
The notes on pages 85 to 175 are an integral part of these consolidated financial statements.
第85至175頁之附註乃綜合財務報表之其中部分。
## Consolidated Cash Flow Statement綜合現金流量表
| Cash flows from financing activities | 融資活動之現金流量 | | | |
| Proceeds from inception of short term bank loans | 訂立短期銀行貸款所得款項 | 15,075 | 12,011 | |
| Repayment of short term bank loans | 償還短期銀行貸款 | (43,439) | (8,390) | |
| Issue of new ordinary shares | 發行新普通股 | - | 15,682 | |
| Increase in restricted cash | 受限制現金增加 | (1,112) | (7,500) | |
| Increase in short-term bank deposit | 短期銀行存款增加 | (124,300) | - | |
| Net cash (used in)/generated from financing activities | 融資活動(所用)/所得現金淨額 | (153,776) | 11,803 | |
| Net (decrease)/increase in cash and cash equivalents | 現金及現金等價物之(減少)/增加淨額 | (80,469) | 20,164 | |
| Exchange gains on cash and cash equivalents | 現金及現金等價物之匯兑收益 | 28,014 | 21,476 | |
| Cash and cash equivalents at beginning of the year | 年初現金及現金等價物 | 569,716 | 528,076 | |
| Cash and cash equivalents at the end of the year | 年終現金及現金等價物 | 24 | 517,261 | 569,716 |
The notes on pages 85 to 175 are an integral part of these consolidated financial statements.
第85至175頁之附註乃綜合財務報表之其中部分。
## Notes to the Consolidated Financial Statements 綜合財務報表附註
## 1. GENERAL INFORMATION
The principal activity of Hi Sun Technology (China) Limited (the “Company”) is investment holding.
The Company and its subsidiaries (collectively referred to as the “Group”), are principally engaged in the sales of information technology products, electronic payment products and services, sales of electronic power meters and solutions, provision of business process operation services, provision of information system consultancy and integration services, provision of information technology operation valued-added services.
The Company is a limited liability company incorporated in Bermuda. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
The Company is listed on the Stock Exchange of Hong Kong Limited.
These consolidated financial statements are presented in thousands of units of Hong Kong dollars (HK\$’000), unless otherwise stated. These consolidated financial statements have been approved for issue by the Board of Directors on 6 April 2009.
## 1. 一般資料
高陽科技（中國）有限公司（「本公司」）之主要業務為投資控股。
本公司及其附屬公司（合稱為「本集團」）主要從事銷售資訊科技產品、電子支付產品及服務、銷售電子式電能表及解決方案、提供業務運營服務、提供資訊系統諮詢及集成服務、提供資訊科技運營增值服務。
本公司為於百慕達註冊成立的有限公司，其註冊辦事處地址為Clarendon House, 2Church Street, Hamilton HM 11,Bermuda。
本公司於香港聯合交易所有限公司上市。
除另有所指外，綜合財務報表以千港元（千港元）為單位呈列。此等綜合財務報表於二零零九年四月六日獲董事會批准刊發。
## Notes to the Consolidated Financial Statements 綜合財務報表附註
## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## 2.1 Basis of preparation
The consolidated financial statements of the Company have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRS”) issued by the Hong Kong institute of Certified Public Accountants (“HKICPA”) and the disclosure requirements of Appendix 16 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
The preparation of financial statements in conformity with HKFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies.
## 2. 重大會計政策概要
編製此等綜合財務報表時採用之主要會計政策載列如下。除另有所指外，該等政策於呈報之所有年度貫徹採用。
## 2.1 編製基準
本公司之綜合財務報表乃根據香港會計師公會（「香港會計師公會」）頒佈之香港財務報告準則（「香港財務報告準則」）及香港聯合交易所有限公司（「聯交所」）證券上市規則附錄16之披露規定而編製。該等綜合財務報表按歷史成本法編製，並就按公平值計入溢利或虧損之金融資產及金融負債（包括衍生工具）之重估作修訂。
為與香港財務報告準則相符，編製財務報表時須作出若干重要之會計估計，管理層亦須在應用本集團會計政策之過程中作出判斷。
## Notes to the Consolidated Financial Statements 綜合財務報表附註
## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
## 2.1 Basis of preparation (continued)
(a) Standards, amendments and interpretations effective in 2008 which are relevant to and have been adopted by the Group: HKAS 39 Financial instruments: Recognition and measurement | For the year ended截至下列年度止 |
| 2008二零零八年HK$'000千港元 | 2007二零零七年HK$'000千港元 |
| Turnover | 營業額 | | |
| Sales of information technology products, electronic payment products and services | 銷售資訊科技產品、電子支付產品及服務 | 509,779 | 344,234 |
| Sales of electronic power meters and solutions | 銷售電子式電能表及解決方案 | 350,167 | 120,472 |
| Provision of business process operation services | 提供業務運營服務 | 23,286 | 12,282 |
| Provision of information system consultancy and integration services | 提供資訊系統諮詢及集成服務 | 83,295 | 93,607 |
| Information technology operation value-added services | 資訊科技運營增值服務 | 245,942 | 207,959 |
| Rental income | 租金收入 | 999 | 1,051 |
| | 1,213,468 | 779,605 |
| Other gains, net | 其他收益凈額 | | |
| Interest income | 利息收入 | 4,400 | 9,303 |
| Gain on deemed disposal of 20% equity interest in a subsidiary | 視作出售一家附屬公司之20%股權之收益 | - | 43,258 |
| (Loss)/gain on disposal of financial assets at fair value through profit or loss | 出售按公平值計入溢利或虧損之金融資產之(虧損)/收益 | (6,613) | 43,101 |
| Dividend income on financial assets at fair value through profit or loss | 按公平值計入溢利或虧損之金融資產股息收入 | 432 | 672 |
| Fair value (loss)/gain on financial assets at fair value through profit or loss | 按公平值計入溢利或虧損之金融資產公平值(虧損)/收益 | (251) | 6,155 |
| Value added tax refund | 退還增值稅 | 16,694 | 2,478 |
| Subsidy income | 補貼收入 | 2,969 | 637 |
| Other service income | 其他服務收入 | 2,946 | 1,878 |
| Others | 其他 | 2,445 | 6,261 |
| | 23,022 | 113,743 |
| Turnover and other gains | 營業額及其他收益 | 1,236,490 | 893,348 |
## Notes to the Consolidated Financial Statements 綜合財務報表附註
## 5. TURNOVER, OTHER GAINS AND SEGMENT INFORMATION (continued)
Primary reporting format – business segments The Group is organised into six main business segments:
(a) Electronic payment products and services – sales of electronic fund transfer point-of-sale (“EFT-POS”) terminals and provision of related services;
(b) Telecommunication solutions:
(i) Information technology operation valueadded services – provision of Interactive Voice Response (“IVR”) services;
(ii) Telecommunication solutions, services and related products – provision of information system consultancy and integration services and sales of information t e c h n o l o g y p r o d u c t s t o t h e telecommunication industries;
(c) Financial solutions:
(i) Financial solutions, services and related products – provision of information system consultancy and integration services and sales of information technology products to financial institutions and banks;
(ii) Business process operations – provision of outsourcing services to financial institutions and banks with payment solutions; and
(d) Electronic power meters and solutions – manufacturing and sales of electronic power meters, data collection terminals and provision of information system consultancy services.
## 5. 營業額、其他收益及分類資料（續）主要呈報方式—業務分類本集團分為六大業務分類：
(a) 電子支付產品及服務－銷售電子支付終端機及提供相關服務；
(b) 電訊解決方案：
(i) 資訊科技運營增值服務－提供語音互動（「IVR」）服務；
(ii) 電訊解決方案、服務及相關產品－向電訊行業提供資訊系統諮詢及集成服務和銷售資訊科技產品；
(c) 金融解決方案：
(i) 金融解決方案、服務及相關產品－向財務機構及銀行提供資訊系統諮詢及集成服務和銷售資訊科技產品；
(ii) 業務運營－向提供支付解決方案之金融機構及銀行提供外判服務；及
(d) 電子式電能表及解決方案－產銷電子式電能表、數據收集終端及提供資訊系統諮詢服務。
## 5. TURNOVER, OTHER GAINS AND SEGMENT INFORMATION (continued) Primary reporting format – business segments (continued)
There are no sales or other transactions between the business segments.
The segment results for the year ended 31 December 2008 and segment assets and liabilities at 31 December 2008 and capital expenditure for the year then ended are as follows:
## 5. 營業額、其他收益及分類資料（續）主要呈報方式－業務分類（續）
各業務分類之間並無銷售或其他交易。
截至二零零八年十二月三十一日止年度之分 類業績，及 於 二零零八年 E十二 二月三十一日 之 分類資產與負債及截至該日止年度之資本開支如下：
| Electronic payment products and services電子支付產品及服務HK$'000千港元 | Information technology operation value-added services資訊科技運營增值服務HK$'000千港元 | Telecommunication solutions, services and related products電訊解決方案、服務及相關產品HK$'000千港元 | Financial solutions, services and related products金融解決方案、服務及相關產品HK$'000千港元 | Business process operations業務運營HK$'000千港元 | Electronic power meters and solutions電子式電能表及解決方案HK$'000千港元 | Unallocated未分配HK$'000千港元 | Group本集團HK$'000千港元 |
| Turnover | 營業額 | 493,589 | 245,942 | 2,163 | 97,322 | 23,286 | 350,167 | 999 | 1,213,468 |
| Other gains, net | 其他收益淨額 | 5,012 | - | 46 | - | - | 11,636 | 6,328 | 23,022 |
| Operating profit/(loss) before depreciation and amortisation | 未計折舊及攤銷前之經營溢利/(虧損) | 113,922(1,730)(5) | 135,156(11,167)- | (139)- | (55,029)(1,456)- | 12,490(13,331)- | 58,149(11,148)(8,007) | (38,412)(436)(760) | 226,137(39,268)(8,772) |
| Depreciation | 折舊 |
| Amortisation | 攤銷 |
| Segment results | 分類業績 | 112,187 | 123,989 | (139) | (56,485) | (841) | 38,994 | (39,608)(1,544) | 178,097(1,544) |
| Finance costs | 融資成本 | | | | | | | | |
| Profit before income tax | | | | | | | | | 176,553(40,875) |
| Income tax expense | 所得稅開支 | | | | | | | | |
| Profit for the year | 年內溢利 | | | | | | | | 135,678 |
| Segment assets | 分類資產 | 483,916 | 314,573 | 2,615 | 62,247 | 69,320 | 516,057 | 219,888 | 1,668,616 |
| Segment liabilities | 分類負債 | (131,257) | (29,178) | (1,651) | (34,425) | - | (141,619) | (65,817) | (403,947) |
| Other segment information: | 其他分類資料: | | | | | | | | |
| Depreciation of property,plant and equipment | 物業、廠房及設備折舊 | 1,730 | 11,167 | - | 1,456 | 13,331 | 11,148 | 327 | 39,159 |
| Depreciation of investment property | 投資物業折舊 | - | - | - | - | - | - | 109 | 109 |
| Amortisation of leasehold land | 租賃土地攤銷 | 5 | - | - | - | - | 305 | 760 | 1,070 |
| Amortisation of intangible assets | 無形資產攤銷 | - | - | - | - | - | 7,702 | - | 7,702 |
| Provision for impairment of trade receivables | 應收賬款減值撥備 | 476 | - | - | 55 | - | 13,713 | - | 14,244 |
| Write-back of provision for obsolete inventories | 撥回陳舊存貨撥備 | - | - | - | - | - | (8,890) | - | (8,890) |
| Provision for inventories | 存貨撥備 | | | | | | | | |
| - merchandise goods | -商品 | 244 | 1,821 | - | - | - | - | - | 2,065 |
| - capitalised labour cost and overheads | -資本化之員工成本及相關開支 | - | - | - | 28,881 | - | - | - | 28,881 |
| Loss/(gain) on disposal of property,plant and equipment | 出售物業、廠房及設備虧損/(收益) | 14 | (27) | - | 1 | - | 917 | - | 905 |
| Capital expenditure | 資本開支 | 1,796 | 5,160 | - | 801 | 3,358 | 4,567 | 25 | 15,707 |
# Notes to the Consolidated Financial Statements 綜合財務報表附註
5. TURNOVER, OTHER GAINS AND SEGMENT INFORMATION (continued) Primary reporting format – business segments (continued)
The segment results for the year ended 31 December 2007 and segment assets and liabilities at 31 December 2007 and capital expenditure for the year then ended are as follows:
## 5. 營業額、其他收益及分類資料（續）主要呈報方式－業務分類（續）
截至二零零七年十二月三十一日止年度之業績， 及 及於 二 零 零 年 十 月 三 十 一分類資產與負債及截至該日止年度之本開支如下：
| | Electronic payment products and services電子支付產品及服務HK$'000千港元 | Information technology operation value-added services資訊科技運營增值服務HK$'000千港元 | Telecommunication solutions, services and related products電訊解決方案、服務及相關產品HK$'000千港元 | Financial solutions, services and related products金融解決方案、服務及相關產品HK$'000千港元 | Business process operations業務運營HK$'000千港元 | Electronic power meters and solutions電子式電能表及解決方案HK$'000千港元 | Unallocated未分配HK$'000千港元 | Group本集團HK$'000千港元 |
| Turnover | 營業額 | 323,143 | 207,959 | 2,851 | 111,847 | 12,282 | 120,472 | 1,051 | 779,605 |
| Other gains, net | 其他收益淨額 | 650 | - | 133 | 194 | - | 1,501 | 111,265 | 113,743 |
| Operating profit/(loss) before depreciation and amortisation | 未計折舊及攤銷前之經營溢利/(虧損) | 64,970 | 122,453 | 2,360 | (6,320) | 2,516 | 10,792 | 52,805 | 249,576 |
| Depreciation | 折舊 | (1,425) | (9,309) | - | (1,786) | (8,752) | (4,540) | (394) | (26,206) |
| Amortisation | 攤銷 | (5) | - | - | - | - | (3,040) | (760) | (3,805) |
| Segment results | 分類業績 | 63,540 | 113,144 | 2,360 | (8,106) | (6,236) | 3,212 | 51,651 | 219,565 |
| Finance costs | 融資成本 | | | | | | | (2,797) | (2,797) |
| Profit before income tax | | | | | | | | | 216,768 |
| Income tax expense | 所得稅開支 | | | | | | | | (24,247) |
| Profit for the year | 年內溢利 | | | | | | | | 192,521 |
| Segment assets | 分類資產 | 351,438 | 209,711 | 4,150 | 199,715 | 51,962 | 467,346 | 206,423 | 1,490,745 |
| Segment liabilities | 分類負債 | (115,228) | (14,247) | (3,060) | (39,413) | - | (160,664) | (57,273) | (389,885) |
| Other segment information: | 其他分類資料: | | | | | | | | |
| Depreciation of property, plant and equipment | 物業、廠房及設備折舊 | 1,425 | 9,309 | - | 1,786 | 8,752 | 4,540 | 217 | 26,029 |
| Depreciation of investment property | 投資物業折舊 | - | - | - | - | - | - | 177 | 177 |
| Amortisation of leasehold land | 租賃土地攤銷 | 5 | - | - | - | - | 148 | 760 | 913 |
| Amortisation of intangible assets | 無形資產攤銷 | - | - | - | - | - | 2,892 | - | 2,892 |
| Recovery of bad debts | 收回壞賬 | - | - | - | - | - | (1,140) | - | (1,140) |
| Write-back of provision for impairment of trade receivables | 應收賬款減值撥備撥回 | - | - | (2,330) | (566) | - | - | - | (2,896) |
| Provision for impairment of trade receivables | 應收賬款減值撥備 | 730 | - | - | 14 | - | - | 67 | 811 |
| Write-back of provision for obsolete inventories | 撥回陳舊存貨撥備 | - | - | (591) | (211) | - | - | - | (802) |
| Provision for inventories | 存貨撥備 | 1,419 | - | - | - | - | 2,149 | - | 3,568 |
| Loss on disposal of property, plant and equipment | 出售物業、廠房及設備虧損 | - | - | - | - | - | 3,039 | 190 | 3,229 |
| Capital expenditure | 資本開支 | 607 | 3,895 | - | 3,446 | 24,878 | 215,193 | 283 | 248,302 |
## 5. TURNOVER, OTHER GAINS AND SEGMENT INFORMATION (continued) Secondary reporting format – Geographical segments
The Group’s six business segments operate in two main geographical areas:
Mainland China – electronic payment products and services, information technology operation value-added services, telecommunication solutions, services and related products, financial solutions, services and related products, business p ro c e s s o p e r a t i o n s , a n d electronic power meters and solutions
Hong Kong, – electronic payment products and South East services, financial solutions, Asia, United services and related products, States of and electronic power meters and America solutions and others
There are no sales or other transactions between the geographical segments.
Revenue is allocated based on the countries in which the customers are located.
## 5. 營業額、其他收益及分類資料（續）次要呈報方式－地區分類
本集團之六項業務分類在兩個主要地區經營：
中國大陸 付 產品 及 服運
香港、 － 電子支付產品及服務、東南亞、 金融解決方案、服務及美國及其他 相關產品以及電子式電能表及解決方案
各地區分類之間並無銷售或其他交易。
收入乃按客戶所在之國家分配。
| Turnover營業額2008二零零八年HK$'000千港元 | Segment results分類業績2008二零零八年HK$'000千港元 | Total assets資產總值2008二零零八年HK$'000千港元 | Capital expenditure資本開支2008二零零八年HK$'000千港元 |
| Mainland ChinaHong Kong, South East Asia, United States of America and others | 中國大陸香港、東南亞、美國及其他 | 1,074,872 | 223,448 | 1,320,052 | 15,637 |
| 138,596 | (5,236) | 133,405 | 45 |
| 1,213,468 | 218,212 | 1,453,457 | 15,682 |
| Other gains, net, unallocatedUnallocated expenses | 其他收益凈額,未分配未分配開支 | | 6,328(46,443) | | |
| Operating profit | 經營溢利 | | 178,097 | | |
| Unallocated assets | 未分配資產 | | | 215,159 | |
| Total assets | 資產總值 | | | 1,668,616 | |
| Unallocated capital expenditure | 未分配資本開支 | | | | 25 |
| Total capital expenditure | 資本開支總額 | | | | 15,707 |
## Notes to the Consolidated Financial Statements 綜合財務報表附註
5. TURNOVER, OTHER GAINS AND SEGMENT INFORMATION (continued) Secondary reporting format – Geographical segments (continued)
5. 營業額、其他收益及分類資料（續）次要呈報方式－地區分類（續）
| 2008
二零零八年
HK$'000
千港元 | 2007
二零零七年
HK$'000
千港元 |
| Auditor's remuneration | 核數師酬金 | 2,732 | 3,406 |
| Depreciation of property, plant and equipment | 物業、廠房及設備折舊 | 39,159 | 26,029 |
| Depreciation of investment property | 投資物業折舊 | 109 | 177 |
| Amortisation of leasehold land | 租賃土地攤銷 | 1,070 | 913 |
| Amortisation of intangible assets | 無形資產攤銷 | 7,702 | 2,892 |
| Employee benefit expense (including Directors' emoluments) (Note 8) | 僱員福利開支(包括董事酬金)(附註8) | 216,251 | 182,060 |
| Costs of inventories sold | 售出存貨成本 | 519,108 | 292,872 |
| Operating lease rentals for land and buildings | 土地及樓宇之營業租賃租金 | 10,363 | 10,664 |
| Operating lease rentals for equipment | 設備之營業租賃租金 | 12,084 | 11,161 |
| Research and development costs | 研究及開發成本 | 22,503 | 13,832 |
| Loss on disposal of property, plant and equipment | 出售物業、廠房及設備虧損 | 905 | 3,229 |
| Provision for impairment of trade receivables | 應收賬款減值撥備 | 14,244 | 811 |
| Write-back of provision for impairment of trade receivables | 應收賬款減值撥備撥回 | - | (2,896) |
| Recovery of bad debts | 收回壞賬 | - | (1,140) |
| Provision for inventories | 存貨撥備 | | |
| - merchandise goods | -商品 | 2,065 | 3,568 |
| - capitalised labour cost and overheads | -資本化之員工成本及相關開支 | 28,881 | - |
| Write-back of provision for obsolete inventories | 撥回陳舊存貨撥備 | (8,890) | (802) |
## 7. NET FOREIGN EXCHANGE LOSS
The net foreign exchange loss recognised in the consolidated income statement and included in administrative expenses for the year ended 31 December 2008 amounted to HK\$2,776,000 (2007: HK\$2,224,000).
## 7. 外匯淨虧損
於截至二零零八年十二月三十一日止年度於綜合收益表中確認且計入行政開支的外匯 淨 虧 損 ， 達 2,776,000港 元（二 零 零 七年：2,224,000港元）。
# Notes to the Consolidated Financial Statements 綜合財務報表附註
## 8. EMPLOYEE BENEFIT EXPENSE(INCLUDING DIRECTORS’EMOLUMENTS)
## 8. 僱員福利開支（包括董事酬金）
| Profit attributable to equity holders of the Company (HK$'000) | 本公司權益持有人應佔溢利(千港元) | 184,276 |
| Interest expense on convertible preference shares issued by a subsidiary (HK$'000) | 一家附屬公司發行之可換股優先股利息開支(千港元) | 333 |
| Profit used to determine diluted earnings per share (HK$'000) | 用作釐定每股攤薄盈利之溢利(千港元) | 184,609 |
| Weighted average number of ordinary shares in issue (thousands) | 已發行普通股加權平均數(千股) | 2,050,870 |
| Adjustments for - assumed conversion of convertible preference shares issued by subsidiaries (thousands) | 就下列各項作出調整-假設轉換附屬公司發行之可換股優先股(千股) | 124,799 |
| - share options (thousands) | -購股權(千份) | 40,619 |
| Weighted average number of ordinary shares for diluted earnings per share (thousands) | 計算每股攤薄盈利之普通股加權平均數(千股) | 2,216,288 |
| Diluted earnings per share (HK$ per share) | 每股攤薄盈利(每股港元) | 0.083 |
## Notes to the Consolidated Financial Statements 綜合財務報表附註
## 14. INVESTMENT PROPERTIES
## 14.投資物業
| Name | Place of incorporation and type of legal entity註冊成立地點及法定實體類別 | Principal activities and place of operation主要業務及營業地點 | Particulars of issued share capital/ registered capital已發行股本/註冊資本詳情 | Interest held所持權益 |
| 北京高陽金信信息技術有限公司(Beijing Hi Sun Advanced Business Solutions Information Technology Limited) | PRC, limited liability company中國,有限公司 | Provision of financial and banking solutions and services in PRC在中國提供金融及銀行解決方案及服務 | HK$100,000,000100,000,000港元 | 100% |
| 北京高陽聖思園信息技術有限公司(Beijing Hi Sunray Information Technology Limited) | PRC, limited liability company中國,有限公司 | Provision of telecommunication solutions, services, related products and information technology operation value-added services in PRC在中國提供電訊解決方案、服務及相關產品以及資訊科技運營增值服務 | HK$80,000,00080,000,000港元 | 100% |
| Emerging Technology Limited(“Emerging Technology”) | The British Virgin Islands (“BVI”),limited liability company英屬處女群島,有限公司 | Investment holding in PRC在中國從事投資控股 | 7,692,308 ordinary shares of US$1 each7,692,308股每股面值1美元之普通股 | 100% |
| Hi Sun (BVI) Limited | BVI, limited liability company英屬處女群島,有限公司 | Investment holding in Hong Kong and PRC在香港及中國從事投資控股 | 2 ordinary shares of US$1 each2股每股面值1美元之普通股 | 100%1 |
| Hi Sun Development Management Limited高陽拓業管理有限公司 | Hong Kong, limited liability company香港,有限公司 | Provision of management services in Hong Kong在香港提供管理服務 | 2 ordinary shares of HK$1 each2股每股面值1港元之普通股 | 100% |
## 18. INVESTMENTS IN SUBSIDIARIES AND DUE FROM/(TO) SUBSIDIARIES (continued)
## 18. 於附屬公司之投資及應收／（應付）附屬公司款項（續）
| Name | Place of incorporation and type of legal entity註冊成立地點及法定實體類別 | Principal activities and place of operation主要業務及營業地點 | Particulars of issued share capital/ registered capital已發行股本/註冊資本詳情 | Interest held所持權益 |
| Hi Sun Technology Holding Limited高陽科技控股有限公司 | Bermuda, limited liability company百慕達, 有限公司 | Provision of financial services and related products in Hong Kong在香港提供金融服務及相關產品 | 168,070,000 ordinary shares of HK$0.1 each168,070,000股每股面值0.1港元之普通股 | 100% |
| Pax Technology Limited百富科技有限公司 | Hong Kong, limited liability company香港, 有限公司 | Sales of electronic payment products and services in Hong Kong在香港銷售電子支付產品及服務 | 35,000,000 ordinary shares of HK$1 each35,000,000股每股面值1港元之普通股8,750,000 preference shares of HK$1 each8,750,000股每股面值1港元之優先股 | 80% |
| Turbo Speed Technology Limited(“Turbo Speed”) | BVI, limited liability company英屬處女群島, 有限公司 | Investment holding in PRC在中國從事投資控股 | 35,897,440 ordinary shares of US$0.1 each35,897,440股每股面值0.1美元之普通股 | 100% |
| 百富計算機技術(深圳)有限公司(Pax Technology (Shenzhen)Limited) | PRC, limited liability company中國, 有限公司 | Sale of electronic payment products and services in PRC在中國銷售電子支付產品及服務 | HK$50,000,00050,000,000港元 | 80% |
| Max Hero Group Limited | BVI, limited liability company英屬處女群島, 有限公司 | Investment holding in Hong Kong在香港從事投資控股 | 1 ordinary share of US$11股面值1美元之普通股 | 100%1 |
| New Concept Services Limited | BVI, limited liability company英屬處女群島, 有限公司 | Investment holding in PRC在中國從事投資控股 | 100 Ordinary share of US$1100股面值1美元之普通股 | 100%1 |
| Hangzhou PAX Electricity Technology Limited杭州百富電力技術有限公司 | PRC, limited liability company中國, 有限公司 | Investment Holding in PRC在中國從事投資控股 | RMB27,500,000人民幣27,500,000元 | 100% |
# Notes to the Consolidated Financial Statements 綜合財務報表附註
## 18. INVESTMENTS IN SUBSIDIARIES AND DUE FROM/(TO) SUBSIDIARIES (continued)
## 18. 於附屬公司之投資及應收／（應付）附屬公司款項（續）
| Name | Place of incorporation and type of legal entity註冊成立地點及法定實體類別 | Principal activities and place of operation主要業務及營業地點 | Particulars of issued share capital/ registered capital已發行股本/註冊資本詳情 | Interest held所持權益 |
| Pacific Sheen International Limited富順國際有限公司 | Hong Kong, limited liability company香港, 有限公司 | Investment Holding in PRC在中國從事投資控股 | HK$3,900,0003,900,000港元 | 100% |
| Hangzhou PAX Electronic Technology Limited杭州百富電子技術有限公司 | PRC, limited liability company中國, 有限公司 | Manufacturing and sales of electronic power meters and solutions in PRC在中國生產及銷售電子式電能表及解決方案 | RMB50,000,000人民幣50,000,000元 | 100% |
| Hangzhou PAX Information Technology Limited杭州百富信息技術有限公司 | PRC, limited liability company中國, 有限公司 | Design of electronic power meters in PRC在中國設計電子式電能表 | RMB3,400,000人民幣3,400,000元 | 100% |
| Hangzhou Fushun Information Technology Company Limited杭州富順信息技術有限公司 | PRC, limited liability company中國, 有限公司 | Properties Holding in PRC在中國持有物業 | US$3,500,0003,500,000美元 | 100% |
| Perfect Ally Investments Limited | Samoa, limited liability company薩摩亞群島, 有限公司 | Sublicense of media rights in PRC在中國頒發媒體權從屬證書 | 100 ordinary shares of US$1100股面值1美元之普通股 | 75% |
| Foxman Technology Limited狐人科技有限公司 | Hong Kong, limited liability company香港, 有限公司 | Dormant暫無營業 | 1 ordinary share of HK$1 each1股每股面值1港元之普通股 | 100%1 |
| PAX Electric International Limited百富電力國際有限公司 | Hong Kong, limited liability company香港, 有限公司 | Sales of electronic power meters and solutions in Hong Kong在香港銷售電子式電能表及解決方案 | 10,000 ordinary shares of HK$1 each10,000股每股面值1港元之普通股 | 100% |
| PAX Technology, Inc. | U.S.A. limited liability company美國, 有限公司 | Sales of electronic payment products and services in U.S.A.在美國銷售電子支付產品及服務 | US$1,000.001,000.00美元 | 80% |
1 Shares held directly by the Company.
本公司直接持有之股份。
## Notes to the Consolidated Financial Statements 綜合財務報表附註
## 19. INVENTORIES
## 19. 存貨
| Ordinary shares of HK$0.0025 each每股面值0.0025港元之普通股 |
| No. of shares股數 | HK$'000千港元 |
| Authorised: | 法定: | | |
| At 31 December 2007 and 31 December 2008 | 於二零零七年十二月三十一日及二零零八年十二月三十一日 | 4,000,000,000 | 10,000 |
| Issued and fully paid: | 已發行及繳足: | | |
| At 1 January 2008 and 31 December 2008 | 於二零零八年一月一日及於二零零八年十二月三十一日 | 2,231,972,835 | 5,580 |
| Opening balance at 1 January 2007 | 於二零零七年一月一日之期初結餘 | 1,879,416,120 | 4,699 |
| Shares issued under share options scheme of the Company (Note (a)) | 根據本公司購股權計劃發行股份(附註(a)) | 83,210,000 | 208 |
| Issue of new shares upon the conversion of convertible preference shares issued by subsidiaries | 於轉換附屬公司發行之可換股優先股時發行新股份 | 232,446,569 | 581 |
| Shares issued on acquisition of subsidiaries (Note (b)) | 因收購附屬公司而發行股份(附註(b)) | 36,900,146 | 92 |
| At 31 December 2007 and 31 December 2008 | 於二零零七年十二月三十一日及二零零八年十二月三十一日 | 2,231,972,835 | 5,580 |
Note:
## (a) Share options of the Company
The Company operates a share option scheme (the “Scheme”) for the purpose of attracting, retaining and motivating talented employees in order to strive for future developments and expansion of the Group. Eligible participants of the Scheme include the Group’s full-time employees, and executive and nonexecutive Directors. The Scheme became effective on 29 November 2001 and unless otherwise cancelled or amended, will remain valid and effective for a period of 10 years from that date.
The total number of shares in respect of which options may be granted shall not (together with all the other Schemes, if any) exceed 10% of the total issued capital of the Company as at date of approval of the Scheme unless the Company obtains a fresh approval from shareholders to renew the 10% limit.
附註：
(a) 權
連同所有其他購股權計劃（如有）可能授出之購股權涉及之股份總數，不得超過本公司於批准該計劃當日已發行股本總額之10%，惟本公司取得股東另外特准更新該10%的限額除外。
## 25. SHARE CAPITAL (continued) Note: (continued)
## (a) Share options of the Company (continued)
The maximum number of shares in respect of which options may be granted under the Scheme, together with any unexercised share options granted under the Scheme and any other share option schemes of the Company in issue, may not exceed 30% of the relevant class of securities of the Company in issue at any time. On 18 March 2004, 33,000,000 share options were granted to certain directors and employees at an exercise price of HK\$0.374 per share (the average closing price of the shares as quoted in the daily quotations sheets issued by The Stock Exchange of Hong Kong Limited for the five business days immediately preceding 18 March 2004) with an expiry date of 17 March 2014.
Pursuant to an ordinary resolution passed on 17 August 2005, a refreshment of the limit on grant of options under the Scheme was approved by the Company’s shareholders. Upon refreshing the 10% limit on grant of options under the Scheme, 33,305,403 shares may be issued pursuant to the grant of further options under the Scheme.
On 26 September 2005, 33,300,000 share options were granted to certain directors and employees at an exercise price of HK\$0.768 per share (the average closing price of the shares as quoted in the daily quotations sheets issued by the Stock Exchange of Hong Kong Limited for the five business days immediately preceding 26 September 2005) with an expiry date of 25 September 2015. The option period commences on 26 September 2005 and expires 10 years thereafter.
Options granted are vested as follows:
On 26 September 2005
Up to 50%
On 26 September 2006
Up to 100%
## 25. 股本（續）
（續）
## (a) 本公司之購股權（續） (a)
該計劃項下可能授出之購股權連同該計劃及本公司任何其他購股權計劃項下已授出而尚未行使之任何購股權所涉及之股份數目，最多不得超過任何時候本公司已發行相關類別證券之30%。於二零零四年三月十八日，本公司向若干董事及僱員授出33,000,000份購股權，行使價為每股0.374港元（即緊接二零零四年三月十八日前五個營業日香港聯合交易所有限公司發佈之每日報價表所報股份之平均收市價）到期日為二零一四年三月十七日。
根據於二零零五年八月十七日通過的普通決議案，根據該計劃可授出的購股權限額獲本公司股東批准更新。該計劃項下授出購股權之10%原有限額更新後，可根據該計劃授出額外購股權發行33,305,403股股份。
於二零零五年九月二十六日，本公司向若干董事及僱員授出33,300,000份購股權，每股行使價0.768港元（即緊接二零零五年九月二十六日前五個營業日香港聯合交易所有限公司發佈之每日報價表所報股份之平均收市價）到期日為二零一五年九月二十五日。購股權期間由二零零五年九月二十六日開始，10年後到期。
授出之購股權歸屬如下︰
於二零零五年九月二十六日 最多
50%
於二零零六年九月二十六日 最多
100%
## Notes to the Consolidated Financial Statements 綜合財務報表附註
## 25. SHARE CAPITAL (continued) Note: (continued)
## (a) Share options of the Company (continued)
The Share Subdivision has led to an adjustment to the exercise price of the outstanding options and the number of shares to be issued by the Company upon exercise of the outstanding options. For share options with exercise period from 18 March 2004 to 17 March 2014, the number of shares to be issued by the Company upon full exercise of such outstanding options immediately before the Share Subdivision has been increased from 23,000,000 shares to 92,000,000 shares and the exercise price has been adjusted from HK\$0.374 to HK\$0.0935 per share. For share options with exercise period from 26 September 2005 to 25 September 2015, the number of shares to be issued by the Company upon full exercise of such outstanding options immediately before the Share Subdivision has been increased from 33,300,000 shares to 133,200,000 shares and the exercise price has been adjusted from HK\$0.768 to HK\$0.192 per share.
On 2 January 2007, 43,000,000 share options were granted to certain employees at an exercise price of HK\$2.00 per share (the average closing price of the shares as quoted in the daily quotations sheets issued by the Stock Exchange of Hong Kong Limited for the five business days immediately preceding 2 January 2007) with an expiry date of 1 January 2010.
There are no changes in any term of the Scheme during the year ended 31 December 2008.
During the year ended 31 December 2008, no share options have been granted, exercised or lapsed. The Group has no legal or constructive obligation to purchase or settle the option in cash. As at the date of this report, the Company has 41,458,000 share options outstanding.
## 25. 股本（續）
（續）
## (a) 本公司之購股權（續）
股份分拆導致須對未行使購股權及本公司於未行使購股權獲行使時將予發行之股份數目作出調整。就行使期由二零零四年三月十八日至二零一四年三月十七日之購股權而言，本公司於有關購股權獲悉數行使時將予發行之股份數目，已由23,000,000股增至92,000,000股，而行使價由每股0.374港元調整至每股0.0935港元。就行使期由二零零五年九月二十六日至二零一五年九月二十五日之購股權而言，本公司於有關購股權獲行使時將予發行之股份數目，已由33,300,000股增至133,200,000股，而行使價由每股0.768港元調整至每股0.192港元。
於二零零七年一月二日，本公司向若干僱員授出43,000,000份購股權，行使價為每股2.00港元，即緊接二零零七年一月二日前五個營業日香港聯合交易所有限公司發佈之每日報價表所報股份平均收市價，到期日為二零一零年一月一日。
該計劃之所有條款概無於截至二零零八年 十二月三十一日止年度內變更。
截至二零零八年十二月三十一日止年度，並無任何購股權獲授出、行使或失效。本集團並無以現金購回或償付購股權之法律或推定責任。於本報告日期，本公司有41,458,000份購股權尚未行使。
## 25. SHARE CAPITAL (continued) Note: (continued)
## (b) Acquisition of the entire interest in Baifu Hualong and Pacific Sheen and disposal of 5% interest in Hualong Holding
On 10 February 2007, the Company entered into a sale and purchase agreement (the “Hualong Agreement”) with 王 秉 人(Wang Bing Ren), 王 中 方 (Wang Zhong Fang), 蔣杰忠(Jiang Jie Zhong), 趙樹 勳 (Zhao Shu Xun (also known as 趙 力 斌 (Zhao Li Bin)), 李 寧 川 (Li Ning Chuan) and Everon Group Holdings Limited (a company incorporated in Hong Kong) (collectively the “Hualong Vendors”), who are parties then independent of the Group, pursuant to which the Company agreed to procure the acquisition of the entire registered capital of Hangzhou PAX Electric Technology Limited (Formerly known as “Hangzhou Baifu Holding Company Limited”), a company incorporated in the PRC which holds the entire interest in 杭 州 華 隆 電 子 技 術 有 限 公 司 (Hangzhou Hualong Electronic Technology Company Limited), a company established in the PRC (“Hualong Electronic”) and 杭 州 華 隆 信 息 技 術 有 限 公 司 (Hangzhou Hualong Information Technology Company Limited), a company established in the PRC (“Hualong Information”), the entire issued share capital of Pacific Sheen International Limited (富 順 國 際 有 限 公 司 ), a company incorporated in Hong Kong (“Pacific Sheen”) and its subsidiary (collectively referred to as the “Hualong Group”) and the shareholders’ loans of HK\$24.0 million (the “Shareholders’ Loans”) for a total consideration of RMB270.7 million (equivalent to approximately HK\$268.6 million) (the “Hualong Acquisition”). The consideration for the Hualong Acquisition was satisfied as to RMB170.7 million (equivalent to approximately HK\$176.3 million) in cash and as to the remaining balance of RMB100.0 million (equivalent to approximately HK\$92.3 million) by way of the issuance of 36,900,146 new shares of the Company (the “Consideration Shares”). The fair value of the consideration shares was based on the published closing share price of HK\$2.5 as at 30 July 2007.
## 25. 股本（續）
（續）
## (b) 收購百富華隆及富順國際全部權益及出售Hualong Holding 5%權益
於二零零七年二月十日，本公司與當時獨立於本集團之人士王秉人、王中方、蔣杰忠、趙樹勳（又名趙力斌）、李寧川及信安控股有限公司（於香港註冊成立之公司）（統稱「華隆賣方」）訂立買賣協議（「華隆協議」）。據此，本公司同意促使收購於中國註冊成立之杭州百富電力技術有限公司（前稱「杭州百富控股有限公司」）全部註冊股本、於香港註冊成立之富順國際有限公司（「富順國際」）及其附屬公司（統稱「華隆集團」）全部已發行股本以及股東貸款24,000,000港元（「股東貸款」），總代價為人 民 幣 270,700,000元（ 約 相 當 於268,600,000港元）（「華隆收購」）。杭州百富電力技術有限公司將持有於中國成立之杭州華隆電子技術有限公司（「華隆電子」）及於中國成立之杭州華隆信息技術有限公司（「華隆信息技術」）全部權益。華隆收購代價中，人民幣170,700,000元（約相當於176,300,000港元）已以現金支付，餘額人民幣100,000,000元（約相當於92,300,000港元）則以本公司發行36,900,146股新股（「代價股份」）支付。代價股份之公平價值乃按二零零七年七月三十日公佈之收市價2.5港元計算。
## Notes to the Consolidated Financial Statements 綜合財務報表附註
## 26. RESERVES (a) Group
## 26. 儲備
(a) 本集團
| Contributed surplus(Note(i)) | Other reserves其他儲備HK$'000千港元 | Exchange reserve匯兑儲備HK$'000千港元 | Retained earnings保留盈利HK$'000千港元 | Total合計HK$'000千港元 |
| Share premium股份溢價HK$'000千港元 | 實繳盈餘(附註(i))HK$'000千港元 |
| At 1 January 2007 | 於二零零七年一月一日 | 269,586 | 168,434 | 156,494 | 7,688 | 72,771 | 674,973 |
| Profit for the year | 年度溢利 | - | - | - | - | 184,276 | 184,276 |
| Shares issued under share option scheme of the Company (Note 25(a)) | 根據本公司購股權計劃發行股份(附註25(a)) | 15,474 | - | - | - | - | 15,474 |
| Issue of new shares upon the conversion of convertible preference shares issued by subsidiaries | 於轉換附屬公司發行之可換股優先股時發行新股份 | 171,112 | - | (149,614) | - | - | 21,498 |
| Employee share option scheme - value of employee services | 僱員購股權計劃-僱員服務價值 | - | - | 27,616 | - | - | 27,616 |
| Acquisition of subsidiaries (Note 25(b)) | 收購附屬公司(附註25(b)) | 92,158 | - | - | - | - | 92,158 |
| Exchange differences arising on translation of the financial statements of foreign subsidiaries | 換算海外附屬公司財務報表之匯兑差額 | - | - | - | 33,272 | - | 33,272 |
| At 31 December 2007 | 於二零零七年十二月三十一日 | 548,330 | 168,434 | 34,496 | 40,960 | 257,047 | 1,049,267 |
| At 1 January 2008 | 於二零零八年一月一日 | 548,330 | 168,434 | 34,496 | 40,960 | 257,047 | 1,049,267 |
| Profit for the year | 年度溢利 | - | - | - | - | 114,350 | 114,350 |
| Purchase of 5% equity interest in a subsidiary (Note 34) | 收購一家附屬公司5%股權(附註34) | - | - | (13,292) | - | - | (13,292) |
| Exchange differences arising on translation of the financial statements of foreign subsidiaries | 換算海外附屬公司財務報表之匯兑差額 | - | - | - | 41,062 | - | 41,062 |
| At 31 December 2008 | 於二零零八年十二月三十一日 | 548,330 | 168,434 | 21,204 | 82,022 | 371,397 | 1,191,387 |
Note:
(i) The contributed surplus of the Group represents the difference between the nominal value of the ordinary shares and share premium account of Hi Sun Holdings Limited (“HSHL”) acquired pursuant to the group reorganisation (the “Reorganisation”) on 17 October 2001 as set out in the circular to the shareholders of HSHL dated 9 August 2001, over the nominal value of the Company’s shares issued in exchange thereof.
附註：
(i) | 2008二零零八年HK$'000千港元 | 2007二零零七年HK$'000千港元 |
| Profit before income tax | 除所得税前溢利 | 176,553 | 216,768 |
| Interest income | 利息收入 | (4,400) | (9,303) |
| Gain on deemed disposal of 20% equity in interest in a subsidiary | 視作出售一家附屬公司20%股權之收益 | - | (43,258) |
| Employee share option scheme | 僱員購股權計劃 | | |
| -value of employee services | 一僱員服務價值 | - | 27,616 |
| Depreciation of property, plant and equipment | 物業、廠房及設備折舊 | 39,159 | 26,029 |
| Depreciation of investment property | 投資物業折舊 | 109 | 177 |
| Amortisation of leasehold land | 租賃土地攤銷 | 1,070 | 913 |
| Amortisation of intangible assets | 無形資產攤銷 | 7,702 | 2,892 |
| Loss on disposal of property,plant and equipment | 出售物業、廠房及設備虧損 | 905 | 3,229 |
| Provision/(write-back of provision) for impairmentof trade receivable, net | 應收賬款減值撥備/ (撥回撥備),淨額 | 14,244 | (3,225) |
| Write-off of inventories, net | 撇銷存貨,淨額 | 22,056 | 2,766 |
| Finance costs | 融資成本 | 1,544 | 2,797 |
| Operating profit before working capital changes | 營運資金變動前之經營溢利 | 258,942 | 227,401 |
| Increase in trade and other receivables, prepayments and deposits | 應收賬款及其他應收款項、預付款項及按金增加 | (138,856) | (91,504) |
| Increase in inventories | 存貨增加 | (53,538) | (65,548) |
| Decrease in financial assets at fair value through profit or loss | 按公平值計入溢利或虧損之金融資產減少 | 33,969 | 6,793 |
| Decrease in amount due from a related company | 應收一家關連公司款項減少 | - | 67 |
| Increase in amount due from a fellow subsidiary | 應收一家同系附屬公司款項增加 | (65) | (1,111) |
| Increase in trade and other payables | 應付賬款及其他應付款項增加 | 38,733 | 59,121 |
| Decrease in amounts due to fellow subsidiaries | 應付同系附屬公司款項減少 | - | (13,497) |
| Cash generated from operations | 經營產生之現金 | 139,185 | 121,722 |
## 31. NOTES TO CONSOLIDATED CASH FLOW STATEMENT (continued)
(b) In the cash flow statement, proceeds from sale of property, plant and equipment comprise:
## 31.綜合現金流量表附註（續）
(b) 於現金流量表內，出售物業、廠房及設備所得款項如下：