2025 marks a pivotal year for China's digital payments industry and a significant milestone for XGD Inc. ("XGD" or "the Company")—the 15th anniversary of its listing on the Shenzhen Stock Exchange. Since the Company's debut in 2010, XGD has leveraged its deep industry experience and robust electronic-payment technology capabilities to evolve into a leading global payments-technology service provider.

Now standing at a new historical juncture, XGD has announced its intention to issue H-shares and apply for listing on the Main Board of the Hong Kong Stock Exchange. This move not only signals an upgrade of the Company's global strategy, but also underscores its commitment to actively participate in the global digital payments ecosystem and accelerate its "payments going global" initiative.

15 Years of Steadfast Progress:

Focusing on Payments Technology to Become an Industry Leader

Founded in 2001 and headquartered in Shenzhen, XGD's business has evolved from electronic-payment acceptance terminals to full-fledged digital payments-scenario services. According to its most recent financial report, the Company's operations span three key segments: Payment Services, Electronic Payment Devices and Artificial Intelligence (AI).

In the Payment Services segment, XGD's wholly-owned subsidiary JLPay—a nationwide card-acquiring third-party payment institution—provides seamless settlement services for clients across industries and scales. Through a SaaS-based one-stop service model, it offers value-added services such as membership management, store management, marketing management and reporting solutions, thereby empowering small and micro merchants in their digital-transformation journeys.

In the Electronic Payment Devices segment, XGD's wholly-owned subsidiary Nexgo Inc. focuses on the production, R&D and sales of payment-acceptance terminal hardware and software. Its device portfolio includes smart POS terminals, QR-code POS terminals, facial-recognition payment terminals, smart cloud speakers and emerging payment devices, as well as PIN-pads and external peripherals, serving industries such as catering, hospitality, retail, transportation, logistics, banking and medical services.

XGD is also proactively engaged in the AI domain, via internal incubation and external investment. Its holding subsidiary Shanghai District twelve Information Technology Co., Ltd investigates general-intelligence and generative-AI applications. Its "AI Agent" product supports enterprise and merchant operational efficiency and cost-reduction across digital-payment scenarios.

At its inception, China's financial POS market was dominated by foreign vendors. Charged with the mission of domestic replacement in the financial-POS sector, XGD successfully developed China's first-generation large-screen wireless POS terminal. With continuous R&D and innovation, XGD became one of the four global designated suppliers in the china UnionPay system, and was honoured by the Ministry of Industry and Information Technology as a "National Key Small Giant Enterprise".

In 2010, XGD successfully listed on the Shenzhen Stock Exchange–ChiNext Board, becoming one of the first payment-industry firms in China to access public capital. Over the past 15 years, XGD has transformed from a traditional POS-terminal manufacturer into a comprehensive payments-technology service provider. Its business footprint has expanded from domestic markets to global coverage, earning accolades such as "Mobile Payments Demonstration Project Winner", one of Shenzhen's "40th-Anniversary Innovation Exemplars", and inclusion on the Greater Bay Area's "Innovation Achievement List" for corporate innovators.

Between 2015 and 2023, XGD's "hardware going-global" and "industry-chain integration" strategies delivered more than 4× revenue growth and more than 5× profit growth. Notably: revenue exceeded RMB 1 billion in 2016, RMB 2 billion in 2018, RMB 3 billion in 2019 and RMB 4 billion in 2022. Since 2023, the Company has built upon these strategies by advancing "payment-services going-global", adopting SoftPOS and Nexgo Cloud-based models to innovate its hardware business, and vigorously deploying AI-based services to capture opportunities around RMB internationalisation and digital-currency reshaping of the global payments chain.

According to its 2025 interim report, XGD is steadily implementing its offshore-hardware and payment-services-outbound strategies, increasing investment in cross-border payment business and leveraging AI-driven organisational intelligence to accelerate deployment of "payments + AI" scenario-based digital-products. In H1 2025, offshore business achieved healthy growth: its overseas-market electronic-payment-device revenue rose 22.02 % year-on-year; in high-end markets in Europe, the U.S. and Japan, H1 revenue neared RMB 200 million—up over 80 % year-on-year; cross-border-payment merchant numbers and transaction volumes grew quarterly by 169 % and 272 % respectively. Meanwhile, its AI innovation business advanced significantly: JLPay built a one-stop "AI +" operations platform and launched its "AI Jia" intelligent assistant for customers; Shanghai District twelve Information Technology Co., Ltd introduced its AI Agent product to vertical industries such as digital-marketing, consumer-electronics and music & animation, and expanded support for merchant-review AI Agent applications—greatly enhancing audit efficiency and user experience.

The Company's 2025 interim dividend proposal indicates a cash distribution of RMB 3.00 per 10 shares (inclusive of tax), with a total expected payout of RMB 170 million. The payout ratio exceeds 60 % of net profit attributable to the parent company. Since listing, XGD has consistently paid annual dividends and increased the scale of payouts as it matured; its dividend levels rank among the leading firms in the computer-industry sector—reflecting a long-term operating performance and a commitment to building a sustainably-operating enterprise.

Proposed Hong Kong Listing:

Constructing an International Capital Platform, Accelerating Globalisation

In August this year, XGD announced its plan to issue H-shares and apply for listing on the Hong Kong Stock Exchange Main Board. The Company stated that the initiative is intended to deepen its global strategic deployment, accelerate overseas business expansion, build an international capital-operation platform and enhance its global resource-allocation and market-competitiveness capabilities.

The relevant resolution has already been reviewed by the Board, with submission for shareholders' approval and regulatory clearance or filing pending. The specific timing of issuance and listing remains at the discretion of the Board or its authorised representatives.

As a domestic payments-technology leader, XGD has a solid performance track-record and a robust cash position—its cash balance exceeded RMB 4 billion at the end of 2024. The proposed Hong Kong listing is not simply a short-term financing exercise but a strategic upgrade from a long-term perspective aimed at creating an international capital platform and advancing its globalisation agenda.

In fact, overseas-expansion of payments business is a major trend and has long been a core strategic focus for XGD. As early as 2009, the Company formed an overseas-business team, commenced product certification and adaptation for overseas markets, and in 2015 acquired the US-based ExaDigm (subsequently renamed Nexgo Inc.), marking a milestone in its overseas financial-POS strategy. ExaDigm's years of operation in North America, South America, Asia and Europe enabled XGD to establish initial global channels.

Thereafter, XGD set up subsidiaries in Brazil, Dubai, Luxembourg and India, built localised sales and service teams, developed a global sales and support network, and shipped products to more than 100 countries—ranking consistently among the world's top ten. Since 2023, more than 95 % of its hardware-business revenue has come from overseas markets, making offshore operations a key growth driver for the hardware business.

Beyond hardware-going-global, XGD has also steadily advanced its payment-services-outbound strategy. The Company holds overseas licences including the Luxembourg PI licence, Hong Kong MSO licence and US MSB licence, making it the only A-share listed company with a Luxembourg PI licence to date. In January 2024, XGD's Nexgo product became the first globally certified MPoC ("Mobile Payment on COTS") software certification issued by the Payment Card Industry Security Standards Council—marking its product-development process and security-governance capabilities as meeting global MPoC standards. The Company has also obtained RED, EAA, PCI P2PE, PCI SLC, PCI PIN, Japan FELICA, PCI KLD, European-CC, UK RNIB, India BIS and numerous other overseas certifications.

The proposed Hong Kong listing is not a short-term financing activity—it is a strategic upgrade grounded in long-term thinking and an important milestone in XGD's globalisation journey.

Over 15 years of striving, XGD has walked a steady path from a start-up to an industry leader. Today, facing new opportunities and challenges in the global digital-payments industry, the Company chooses to embrace the world with a more open posture and step into the international capital market with firmer footing. Looking ahead, XGD aims to leverage "technology + capital" dual engines to further strengthen its overseas market-funding capability and brand credibility, continue leading China's payments-industry globalisation, and create long-term value for shareholders, clients and society.