FinTech Chain : Appendix 4D Interim Report ended 30 September 2021

For personal use only

FINTECH CHAIN LIMITED

ARBN 158 702 400

INTERIM REPORT

Six months ended 30 September 2021

This interim financial report does not include all of the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the Annual Report for the year ended 31 March 2021 and any public announcements issued by FINTECH CHAIN LIMITED in accordance with the continuing disclosure requirements of the Australian Securities Exchange Listing Rules.

The interim financial information is presented in Renminbi, the official currency of the People's Republic of China, unless otherwise stated.

For personal use only

Contents

Results for Announcement to the Market

Directors Report

Statement by Directors

Report on Review of Condensed Consolidated Financial Statements

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Statement of Cash Flows

Notes to the Condensed Consolidated Financial Statements

Corporate Directory

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For personal use only

RESULTS FOR ANNOUNCEMENT TO THE MARKET

HALF-YEAR ENDED 30 September 2021

(Previous corresponding period half-year ended 30 September 2020)

			RMB'000
Revenue from ordinary activities	up	14.1% to	28,492
Profit after tax for the period	up	44.6% to	4,420
Profit for the period attributable to owners of the Company	up	43.7% to	4,634
Dividends

No dividends were paid or declared during the six months ended 30 September 2021 (2020: Nil)

Explanation of Revenue

Revenue increased from RMB25.0 million for the six months ended 30 September 2020 to RMB28.5 million for the six months ended 30 September 2021.

Compared to the previous corresponding period, revenue from SaaS cloud services increased from RMB12.0 million to RMB14.3 million, revenue from SaaS for rights/ interests/ points/ marketing/ promotion increased to RMB2.2 million. The increase in SaaS revenue resulted from new contracts signed with bank clients and an additional marketing and promotion services.

Comments on above figures

Profit after tax for the six months ended 30 September 2021 was RMB4.4 million an increase of RMB1.4 million or 44.6% over the corresponding prior period.

Net profit derived during the period included:

1. increase in gross profit of RMB3.1 million;
2. decrease in selling expenses of RMB0.5 million;
3. increase in research and development expenses of RMB1.6 million;
4. increase in general and administrative expenses of RMB2.5 million;
5. increase in unrealised gains on change of fair value of embedded derivatives of convertible bonds of RMB0.3 million;
6. decrease in finance costs of RMB0.8 million.

Research and development expenses and general and administrative expenses were increased during the period due to FTC upgrades to the T-LinxTM SaaS platform and increased staff costs.

The change in the fair value of embedded derivatives and the decrease in finance costs resulted from non-cash items exchange movements in the principal value of outstanding convertible bonds.

Net profit for the period attributable to owners of the Company was RMB4.6 million, an increase of RMB1.4 million over the corresponding prior period.

Refer to the accompanying Directors Report for a detailed description of the Company's expansion and business development plans.

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RESULTS FOR ANNOUNCEMENT TO THE MARKET (Cont'd)

	_	As at	_
NTA Backing		30 September 2021	30 September 2020
Net tangible assets backing per ordinary share		0.2 cents	(1.8) cents

Controlled entities acquired or disposed of

The Company did not acquire or dispose of any controlled entities during the period.

Additional dividend information

The Company did not declared dividends during either the current nor previous six-month period.

Dividend reinvestment plans

The Company does not currently have any dividend reinvestment plans in place.

Associates and joint venture entities

The Company did not acquire nor dispose any associates or joint venture entities during the period.

Foreign entities

The Company's financial reports have been prepared under both Hong Kong Financial Reporting Standards and International Financial Reporting Standards. Further detail is included in Note 3 in the attached half year report.

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DIRECTORS REPORT

Your directors present their report on the consolidated entity consisting of FinTech Chain Limited ("FTC") and its controlled entities for the six months ended 30 September 2021 (hereinafter the "Group'").

Directors

The following persons were directors of FTC during the period and up to the date of this report:

Executive Directors

XIONG Qiang (President & Chief Executive Officer)

CHOW Ki Shui Louie (Vice President, Deputy Chief Executive Officer & Chief Financial Officer)

Non-executive Directors

RYAN Christopher John (Independent Chairman)

HONG Yupeng

Principal activities

FTC's own IP T-LinxTM is a SaaS platform (Software as a Service).

In serving various payment scenarios under the umbrella of digital transformation, T-LinxTM SaaS serves banks, merchants, and consumers by connecting various information systems, software and hardware, in the form of cloud services in a compliant, secure and user-friendly manner.

Four major interconnected services of T-LinxTM SaaS platform

1. SaaS cloud service

1. Payment SaaS infrastructure (IaaS, Infrastructure as a Service)
2. • Services for Banks: Integrated payments with multiple payment channels; integrated merchant submissions; reconciliation processing; risk control; branch management; and unified settlement reports.
   • Services for Merchants: Integrated payments; integrated payment QR codes; payment collection plugin; and payment collection APPs.
3. Payment Digital Transformation SaaS service (merchant solutions/industry applications)
4. • Provides leading operations systems/software to various merchants/ industries.
   • Smart merchant solutions/industry applications for over 40 different industries: Food and Beverage; Retail; Carparks; Hospitals; Scenic Spots; Property Management; Bill Payments; and CRM (Customer Relationship Management).