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PAX Global Announces 2015 Annual Results Revenue up 21% to HK$2,870.8 million Net profit surges 58% to HK$620.7 million

Overseas sales contribution reaches an all-time high

· Press Releases

(Hong Kong, PRC, 8 March 2016) PAX Global Technology Limited (“PAX” or the “Company”, together with its subsidiaries collectively known as the “Group”, HKSE stock code: 00327.HK), one of the world’s leading Electronic Funds Transfer Point-of-Sale Terminal (“E-payment Terminal”) Solutions Providers, is pleased to announce its annual results for the year ended 31 December 2015 (the “Year”).

Group revenue rose 21.0% to HK$2,870.8 million during the Year, and profit attributable to shareholders surged 58.4% to HK$620.7 million with basic earnings per share at 56.0 HK cents (2014: 36.3 HK cents). Revenue from overseas markets increased by HK$353.6 million to HK$1,340.9 million, representing a gain of 35.8%. Revenue from the People’s Republic of China excluding Hong Kong, Macau and Taiwan (“China Market”) grew by 10.4% or HK$143.9 million year-on-year to HK$1,529.9 million. Gross profit margin for the Year was 38.1%, a rise of 1.7 percentage points compared to 36.4% for the year ended 31 December 2014. The increase in gross profit margin was due to an increase of contribution from overseas sales and successful cost reduction. The board of directors of the Company declared a final dividend of HK$0.02 per ordinary share for the Year, subject to the approval of shareholders of the Company at the forthcoming Annual General Meeting.

During the Year, the sales of E-payment Terminals generated the majority of the Group’s revenue. Total sales revenue of E-payment Terminals rose 22.0% to HK$2,711.3 million, accounting for 94% of the total revenue. The number of E-payment Terminals sold exceeded 4 million units in 2015. The Group‘s global network of channel partners increased to nearly 90 companies, up from around 30 in 2012. PAX continues to gain global market share and is tod

Revenue from overseas markets was HK$1,340.9 million during the Year, representing an increase of 35.8% as compared to HK$987.3 million in 2014. All overseas business units recorded growth, especially the United States of America and Canada (USCA) and Latin America and the Commonwealth of Independent States (LACIS) regions. In the U.S., PAX’s new integrated retail payment solution has been well-received by merchants. In Brazil, PAX further consolidated its market leading position as the largest provider of mPOS solution. Throughout North America, Middle East, Africa, Latin America and Asia Pacific region, PAX is usually one of the preferred payment terminal suppliers. Turnover generated from overseas markets accounted for 47% of total revenue, representing an all-time high in Company history as compared to 42% in 2014.

During the Year, revenue from China Market grew by 10.4% to HK$1,529.9 million (2014: HK$1,386.0 million) and represented 53% of total revenue (2014: 58%). Growth in China Market was mainly due to an increased volume of terminal sales to UnionPay Merchant Services and the financial institutions.

Net profit margin for the Year was 21.6%, a substantial rise of 5.1 percentage points compared to 16.5% in 2014. Management’s increased focus on profitability was achieved not only because of growing global market share, but also thanks to increased operating efficiencies, a decrease in selling and administrative expense and preferential tax treatment, thus decrease of effective tax rate and increase of other income in the financial year. As of 31 December 2015, the Group maintained strong financial position with cash and short-term bank deposits of HK$ 2,144.3 million and no debt.

In terms of M&A activity, the Group was active in Italy and Mainland China in 2015. After the Group’s acquisition of Pax Italia S.r.l., sales in Italy grew remarkably, with the Italian operation engaging directly in software development and customization system for local acquirers and processors, and providing a range of after-sales services. In February 2016, Wonder Pax Technology (Shenzhen) Co. Ltd, a wholly owned subsidiary of the Company, completed acquisition and subscription for an aggregate of 60% of the enlarged equity interests in Suzhou Ieasy information Technology Co. Ltd.(“Ieasy”), at a consideration of RMB30 million. Ieasy is a cloud-based ERP provider for the Food and Beverage chains in Mainland China. The Ieasy platform will enable the Group to strengthen relationships between payment transactions and merchants operations in the hospitality industry.

Mr. Jack LU, Chief Executive Officer of PAX, said, “While we plan to further invest in R&D so that we offer an increasingly comprehensive portfolio of payment terminals to our global sales channels, we have begun to implement a 5-year plan to have 20% of our revenue generated from recurring revenues. Our future expansion will therefore focus on big data, payment gateways and widening of our sales channels. We see PAX moving forward consistently to become one of the world’s leading payment industry players.”

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