PAX Global Technology Limited (“PAX” or the “Company”, together with its subsidiaries collectively known as the “Group”, Hong Kong Stock Code: 00327.HK), one of the world’s leading Electronic Funds Transfer Point-of-Sale Terminal (“E-payment Terminal”) Solutions Providers, published unaudited consolidated revenue of the Group for the nine months ended 30 September 2016 (the “Period”).
The Group revenue increased by 4.3% to HK$2,117.7 million for the Period as compared to
HK$2,030.5 million for the same period in 2015.
Mr. Jack Lu, Chief Executive Officer of PAX, said: “The overseas market is full of vitality. We
will continue to explore and expand our overseas and emerging markets businesses by
mergers and acquisitions in order to further elevate the leading market position of PAX in the
global market. Our Research & Development team will put more effort into upgrading
technology and product quality to add value for investors, shareholders and channel partners.”
Turnover generated from overseas markets increased by approximately 15.7% to
approximately HK$1,189.4 million, as compared to HK$1,028.3 million for the corresponding
period in 2015.
In the United States of America and Canada Region (“USCA”), benefitting from the Company’s
diversified product line (including multimedia payment terminals and mobile E-payment
terminals (the “mPOS”)), the region has recorded impressive sales growth despite the slowing
down of the Europay, MasterCard and Visa (EMV) migration. In Latin America and the
Commonwealth of Independent States Region (“LACIS”), PAX has sustained a leading position
in Brazil’s local mPOS market. The Company has started selling countertop POS terminals in
the second half of 2016 in order to develop a comprehensive sales pipeline in Brazil, and it has
received an encouraging response from the market. Therefore, the management estimates an
optimistic potential growth in the Brazilian market. In the Asia Pacific Region (except for
mainland China) (“APAC”), sales continued to grow following the Group’s entrance to the India
and Indonesia markets with the mPOS, bringing a positive impact to the results of APAC. In the European region, sales continued to grow in Eastern Europe and Germany, combined with
organic growth in the Middle East, which resulted in a steady growth in Europe, Middle East and
Africa Region (“EMEA”). The management expects to attain a considerable and sustainable
market share in Europe in the coming years.
Overall, overseas markets contributed to approximately 56% of the total turnover of the Group
for the Period, compared to 51% for the same period in 2015.
Turnover generated from the People’s Republic of China (excluding Hong Kong, Macau and
Taiwan) (“China Market”) decreased by approximately 7.4% to approximately HK$928.3 million,
as compared to HK$1,002.2 million for the corresponding period in 2015. During the Period, the
drop in the Group’s sales in the China Market was mainly due to Renminbi (“RMB”) depreciation
and the implementation of new debit card and credit card interchange rate payment policies in
China. As the average exchange rate of the RMB to the Hong Kong Dollar (“HK$”) depreciated
by 4.7% during the Period as compared to the corresponding period in 2015, such devaluation
affected the Group’s consolidated revenue that was denominated in HK$. China Market
turnover contributed to approximately 44% of the total turnover of the Group for the Period, as
compared to 49% for the corresponding period in 2015.
Despite the aforesaid effect of RMB depreciation on China Market turnover, RMB depreciation
would however be beneficial to the operation of the Group, especially in the overseas markets,
as most of the cost of sales, selling expenses and administrative expenses (including research
and development expenses) are denominated in RMB.
The Group adopts a merger and acquisition strategy to proactively seek service income in
developed markets and sales channels in major overseas markets, with an aim of becoming the
forerunner in the payment industry. Turnover for a particular quarter is not representative for full year performance as sales of E-payment Terminals is associated with seasonality, policy
changes and the concentration of customers’ order book.
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