(Hong Kong, PRC) PAX Global Technology Limited (“PAX” or the “Company” or the “Group”, HKSE stock code: 00327.HK), one of the world’s leading providers of electronic payment terminal (“E-payment terminal”) solutions and related services, is pleased to announce the financial results for the year ended 31st December 2019.
In 2019, the Group's revenue and net profit achieved new record highs. Revenue increased by 11.6% to HK$ 4,925.7 million. Profit for the year was HK$ 624.9 million, representing a surge of 21.2% compared to 2018. Profit attributable to the owners of the Company was HK$ 623.9 million, an increase of 19.4% year-on-year. The basic earnings per share was HK$ 56.7 cents (2018: HK$ 47.5 cents). The Board of Directors of the Company has recommended to declare a final dividend of HK$ 0.06 per ordinary share, representing an increase of 50% compared to HK$ 0.04 per ordinary share in 2018.
As one of the world’s leading E-payment terminal solution providers, international markets represent the core of PAX Technology’s business, accounting for around 91.9% of total revenue, as compared to 84.5% in 2018. In 2019, PAX strengthened its global strategic investment and recorded significant revenue growth of 21.3% in overseas markets.
Driven by the widespread adoption of cashless payment methods worldwide, the introduction of more convenient and efficient payment systems continues to offer excellent opportunities for innovative E-payment terminal providers like PAX Technology.
A regional summary of PAX business in 2019 follows:
Europe, Middle East and Africa (EMEA)
Throughout Europe, the Middle East and Africa, PAX Technology’s Android SmartPOS and SmartECR solutions continue to be in high demand, where an increasing number of acquiring banks and payment service providers appreciate the enhanced value that can now be offered to their merchants, by leveraging the innovative PAXSTORE service platform to which a wide range of PAX and other Android-based in-store terminal solutions can be connected.
In the Middle East there was strong demand for PAX’s new Android-based solutions in the GCC (Gulf Cooperation Council) countries and North Africa, where significant large-volume sales occurred. Large volume orders also continued to come in from West Africa, where government initiatives continue to encourage financial inclusion and a drive towards more cashless economies.
In Europe, PAX also saw its portfolio of industry-specific approvals enhanced by ITSO certification from the Integrated Transport Smartcard Organization in the United Kingdom, and ATEX certification from the European Union for safe device usage on petroleum forecourts.
"Looking ahead, the prospect for the E-payment terminal market is more promising than ever before. Thanks to our skilled personnel resources, our diversified solutions portfolio and our extensive global sales network, PAX Technology is perfectly positioned to embrace the huge market opportunities being presented as cashless societies become more prevalent around the world, allowing the Group to create greater value for customers and shareholders alike”. - Mr. Jack Lu, Chief Executive Officer of PAX
Latin America & Commonwealth of Independent States (LACIS)
In the LACIS region, PAX Technology maintained its market-leading position, especially in Brazil where PAX already has many millions of terminals deployed and where the Company succeeded in establishing even more strategic partnerships with local acquirers in 2019 thanks to its new Android product portfolio offering.
PAX’s strong brand recognition in Brazil also continues to generate positive knock-on effects in other key regional markets, such as Mexico and Argentina, where PAX continues to win market share.
Asia Pacific (APAC, excl. mainland China)
Asia Pacific is proving to be one of the most dynamic parts of the world when it comes to electronic payments, with practically all countries now devoted to promoting cashless payment societies.
Having established local subsidiaries in India and Japan, PAX is now successfully penetrating these important markets. In India alone, over 600,000 Android-based E-payment terminals were sold in 2019, positioning PAX as the market’s preferred provider of E-payment terminal solutions. Indonesia and Malaysia also delivered positive results during 2019.
Throughout the APAC region, PAXSTORE adoption is high, where an increasing number of acquiring institutions, electronic wallet companies and value-added service companies are choosing PAX as their preferred partner of choice for deploying tomorrow’s in-store acceptance solutions.
In the United States & Canada, the PAX brand image has been further enhanced as the Group took the lead in bringing its Android SmartPOS and SmartECR portfolios to market.
Major processors and acquirers have now certified PAX products, with more chain store brands, Independent Sales Organizations (“ISOs”) and merchants entering into strategic partnership with the Company.
EMV migration in the USA’s petroleum forecourt sector is expected to accelerate in 2020, especially for self-service terminals, and the Group believes this will help stimulate further market demand for PAX solutions.
Important certifications were achieved with major telecom operators Verizon and AT&T, which help set the scene for further growth momentum in the USCA region.
Mr. Jack Lu, Chief Executive Officer of PAX, concluded his comments on the financial results by saying:
“PAX is a technology company which is recognized as being at the forefront of the electronic payment value chain. We are committed to enhancing the Group's innovative product portfolio through dedicated R&D efforts, achieved thanks to a culture of continuous innovation and close involvement with our customers for product roadmap ideas”.
“Our new generation of Android smart terminals (SmartPOS), intelligent management and integrated payment terminals (SmartECR) and smart self-service products (SmartKiosk) offer modern and future-proofed solutions to customers worldwide”.
"Looking ahead, the prospect for the E-payment terminal market is more promising than ever before. Thanks to our skilled personnel resources, our diversified solutions portfolio and our extensive global sales network, PAX Technology is perfectly positioned to embrace the huge market opportunities being presented as cashless societies become more prevalent around the world, allowing the Group to create greater value for customers and shareholders alike”.