Financial Performance - Revenue for 2024 decreased by 9.9% to HK$6,044.9 million compared to HK$6,709.3 million in 2023[6] - Gross profit fell by 4.7% to HK$2,853.4 million, resulting in a gross profit margin of 47.2%, up from 44.6% in 2023[6][8] - Operating profit decreased by 31.7% to HK$856.2 million, with an operating profit margin of 14.2%, down from 18.7% in 2023[6][8] - Profit for the year dropped by 38.1% to HK$720.9 million, with profit attributable to owners of the Company at HK$713.4 million, a decrease of 38.2%[6] - Basic earnings per share decreased by 37.8% to HK$0.669, while diluted earnings per share fell by 37.4% to HK$0.658[7] - Profit for the year was HK$720.9 million, down 38.1% compared to HK$1,165.1 million in 2023[66] - Earnings per share decreased by 37.8% to HK$0.669 for the year ended 31 December 2024, compared to HK$1.075 for 2023[90] - Annual profit for 2024 was HK$720.9 million, down 38.1% from HK$1,165.1 million in 2023[89] Dividends - Proposed final dividend per ordinary share increased by 8.7% to HK$0.25, up from HK$0.23 in 2023[7] - The proposed final dividend increased to HK$0.25 per share, totaling approximately HK$265,426,000, up from HK$246,056,000 in 2023[67] Assets and Liquidity - Total current assets rose by 1.2% to HK$7,646.1 million, while total assets increased by 1.0% to HK$9,169.5 million[6] - The current ratio slightly decreased to 5.0 from 5.1 in 2023, indicating a stable liquidity position[8] - The current ratio as of December 31, 2024, was 5.0, slightly down from 5.1 in 2023, while the quick ratio improved to 4.0 from 3.8[158] - The Group reported net current assets of HK$6,131.0 million as of December 31, 2024, compared to HK$6,064.4 million in 2023[159] Research and Development - Research and development costs increased by 6.1% to HK$683.5 million, indicating a focus on innovation despite declining profits[6] - The company is committed to increasing R&D investment to accelerate the global expansion of the Elys series, fueling long-term growth[124] Market Expansion and Product Development - The company is expanding its product offerings with new Android-based e-payment solutions and unattended service solutions, enhancing its market presence[14][19] - The company is expanding its market presence with subsidiaries in multiple countries, including Japan, India, and Italy[41] - Sales of Android smart products accounted for over 60% of total revenue, with the A920Pro model being particularly popular[74] - SaaS solution revenue grew by 30.5% year-on-year, reaching HK$138.2 million[74] - The EMEA emerged as the largest revenue region with annual sales of HK$2,202.9 million, driven by strong demand for the A920Pro[75] - The Group is expanding its presence in the UEMOA region in Africa, with increasing adoption of the A920 payment terminal[75] - In Latin America, Mexico and Argentina are becoming key contributors, with significant demand for Android smart terminals[76] Management and Governance - The management team includes experienced executives, with the Chairman having over 25 years in the card payment industry[44] - The Chief Executive Officer has over 20 years of experience in sales and marketing within the electronic payment industry[45] - The company has a strong management team with expertise in finance, compliance, and mergers and acquisitions[49] - Independent Non-Executive Directors bring diverse experience from various industries, enhancing corporate governance[52] - The Company emphasizes the importance of good corporate governance for healthy growth and has made considerable efforts to establish appropriate practices[181] - The Board consists of eight members, including four executive Directors and four independent non-executive Directors, ensuring a balanced composition for effective independent judgment[199] Financial Strategy and Risk Management - The company emphasizes risk management and treasury management as key operational focuses[48] - PAX's stringent credit management strategy and shipment optimization have reinforced its financial resilience amid global market challenges[118] - The Group has not entered into agreements to hedge the majority of its exchange rate risks, which may impact operating results due to fluctuations in HK$ or RMB[166] Employee and Workforce - The total number of employees decreased to 1,509 as of December 31, 2024, from 1,771 in 2023, reflecting a reduction in workforce[174] - The Group's remuneration packages for employees are designed to be comprehensive and competitive, including fixed salaries and discretionary bonuses[176]

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 6,044.9 million, a decrease of 9.9% compared to HKD 6,709.3 million in 2023[2] - Annual profit for 2024 was HKD 720.9 million, down 38.1% from HKD 1,165.1 million in 2023, resulting in a net profit margin of 11.9%[4] - The company's revenue decreased by 9.9% from HKD 6,709.3 million in 2023 to HKD 6,044.9 million in 2024, primarily due to a decline in procurement orders in certain markets attributed to global economic uncertainty[28] - Gross profit fell by 4.7% from HKD 2,994.0 million in 2023 to HKD 2,853.4 million in 2024, resulting in a gross margin of 47.2%[22][28] - The company reported a 31.3% decline in profit before tax, from HKD 1,253.9 million in 2023 to HKD 861.2 million in 2024[22] - The net profit for the year decreased by 38.1% from HKD 1,165.1 million in 2023 to HKD 720.9 million in 2024[22] - Operating profit decreased to HKD 856,163, a decline of 31.7% from HKD 1,254,366 in the previous year[55] - The group recorded a net profit of HKD 720,922 for the year ended December 31, 2024, compared to HKD 1,165,103 in 2023, reflecting a decrease of 38.1%[72] - EBITDA for the year was HKD 954,202, down from HKD 1,320,011 in 2023, indicating a decline of 27.7%[72] Earnings and Dividends - The basic earnings per share decreased by 37.8% to HKD 0.669 from HKD 1.075 in 2023[2] - For the year ended December 31, 2024, the company's profit attributable to owners was HKD 713,427,000, a decrease of 38.3% from HKD 1,155,164,000 in 2023[87] - The diluted earnings per share for 2024 was HKD 0.658, down 37.4% from HKD 1.051 in 2023[87] - Proposed final dividend per share increased by 8.7% to HKD 0.25 from HKD 0.23 in 2023[2] - The interim dividend declared for 2024 was HKD 0.24 per share, an increase of 14.3% from HKD 0.21 per share in 2023, totaling approximately HKD 254,809,000[88][89] - The total dividend per ordinary share for the year ending December 31, 2024, is projected to be HKD 0.49, compared to HKD 0.44 in 2023[105] Revenue Sources - Sales of Android smart terminals accounted for over 60% of total sales in 2024, with flagship model A920Pro being the best-selling terminal[5] - SaaS solutions revenue reached HKD 138.2 million, representing a year-on-year growth of 30.5%[8] - Service revenue increased by 18.9% from HKD 284.5 million for the year ended December 31, 2023, to HKD 338.4 million for the year ending December 31, 2024, driven by growth in maintenance, installation services, and SaaS solutions[32] - The sales of electronic payment terminal products decreased by 11.2% from HKD 6,424.8 million in 2023 to HKD 5,706.5 million in 2024, driven by reduced procurement orders in specific markets[30][31] Market and Strategic Initiatives - EMEA region became the largest revenue area with sales of HKD 2,202.9 million, driven by strategic investments and product quality[9] - The company plans to deepen its market presence in Mexico and Argentina, focusing on enhancing product lines and partnerships[12] - The company achieved strong sales growth in India, Japan, and Indonesia, with historical sales highs in both Japan and Indonesia during the year[15] - The company launched new products, including the cloud speaker CS70 and CS75 in India, to meet the growing demand for UPI mobile scanning payments[13] - The company plans to invest more resources in high-potential markets such as the US, Europe, Japan, and Australia to drive long-term business expansion[20] - The company is focusing on expanding its SaaS ecosystem and enhancing R&D investments in EPOS products to accelerate market penetration[19] Costs and Expenses - Research and development costs increased by 6.1% to HKD 683.5 million from HKD 644.1 million in the previous year[2] - Sales expenses rose by 14.5% from HKD 674.5 million for the year ended December 31, 2023, to HKD 772.4 million for the year ended December 31, 2024, attributed to increased sales commissions and advertising costs[36] - Administrative expenses increased by 12.5% from HKD 1,171.5 million for the year ended December 31, 2023, to HKD 1,318.0 million for the year ended December 31, 2024, mainly due to higher R&D costs and share-based payment expenses[37] Assets and Liabilities - Total assets increased by 1.0% to HKD 9,169.5 million from HKD 9,075.3 million in the previous year[2] - As of December 31, 2024, the company reported cash and cash equivalents of HKD 3,083.6 million, up from HKD 2,863.6 million in the previous year, with a current ratio of 5.0 and a quick ratio of 4.0[42] - The total accounts payable increased to HKD 937,211,000 in 2024, up from HKD 888,621,000 in 2023, reflecting a rise of 5.5%[95][96] - The total income tax expense for the year ended December 31, 2024, was HKD 140,323,000, compared to HKD 88,861,000 in 2023[83] Acquisitions and Investments - The company completed the acquisition of Pax Technology Australia Pty Ltd on August 5, 2024, for an initial consideration of approximately AUD 5.4 million, potentially increasing to AUD 30 million based on financial performance over the next two fiscal years[40] - The company recognized a contingent consideration of HKD 29,393,000 related to the acquisition of Pax Technology Australia Pty Ltd[99] Compliance and Governance - The audit committee has reviewed the accounting policies and the audited consolidated financial statements for the year ending December 31, 2024[110] - The company has adopted a written code for securities trading by directors and relevant employees, ensuring compliance with the standard code[107] - The company confirms that all directors have complied with the securities trading code throughout the year[107]

Financial Performance - Revenue decreased by 15.6% to HK$3,013.2 million for the six months ended June 30, 2024, down from HK$3,568.6 million for the same period in 2023[17]. - Gross profit declined by 10.3% to HK$1,409.2 million, compared to HK$1,570.9 million in the previous year[11]. - Operating profit fell by 22.0% to HK$537.5 million, down from HK$689.6 million in 2023[11]. - Profit for the period decreased by 30.3% to HK$459.8 million, compared to HK$659.6 million in the prior year[11]. - Basic earnings per share dropped by 29.5% to HK$0.425 from HK$0.603 in 2023[12]. - Total comprehensive income for the period, net of tax, was HK$381,061, compared to HK$582,511 in the same period last year[120]. - EBITDA for the six months ended June 30, 2024, was HK$583,585, compared to HK$720,786 for the same period in 2023, showing a decline of around 19.0%[156]. - Profit attributable to the owners of the Company for the six months ended 30 June 2024 was HK$454,583,000, a decrease of 30% from HK$650,643,000 in the same period of 2023[181]. Revenue Breakdown - Revenue from the Latin America and Commonwealth of Independent States region fell by 22.0% to HK$1,069.8 million from HK$1,371.1 million[17]. - Revenue for the six months ended 30 June 2024 was HK$3,013.2 million, a decrease of 15.6% from HK$3,568.6 million for the same period in 2023[19]. - Sales of E-payment Terminals products decreased by 17.3% to HK$2,849.2 million from HK$3,444.4 million in the previous year, primarily due to a drop in purchase orders in certain markets[20]. - Revenue from the provision of services increased by 32.1% to HK$164.0 million from HK$124.1 million, driven by growing demand for maintenance, installation services, and SaaS solutions[20]. - Revenue from external customers in the PRC (excluding Hong Kong, Macau, and Taiwan) for the six months ended June 30, 2024, was HK$2,180,355, a decrease from HK$2,883,283 in the same period of 2023, representing a decline of about 24.4%[156]. Expenses and Costs - Selling expenses decreased by 2.1% to HK$347.0 million from HK$354.4 million, mainly due to a reduction in employee benefit expenses of sales staff[22]. - Administrative expenses slightly decreased by 0.7% to HK$576.8 million from HK$581.0 million, attributed to lower employee benefit expenses of administrative and R&D staff[22]. - Employee benefit expenses for the first half of 2024 totaled HK$392,024,000, down from HK$483,834,000 in the previous year[174]. - Costs of inventories sold for the six months ended June 30, 2024, were HK$1,529,980,000, a decrease from HK$1,917,959,000 in the same period of 2023[171]. Assets and Liabilities - Total current assets increased by 3.1% to HK$7,788.1 million as of June 30, 2024, from HK$7,553.2 million at the end of 2023[11]. - Total assets increased to HK$9,291,220,000 as of June 30, 2024, up from HK$9,075,329,000 as of December 31, 2023, representing a growth of 2.4%[122]. - Total liabilities amounted to HK$1,666,454,000, an increase from HK$1,589,155,000, reflecting a rise of 4.9%[123]. - Current liabilities rose to HK$1,571,437,000, an increase of 5.5% from HK$1,488,815,000[123]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2024, was HK$430.7 million, significantly up from HK$111.7 million for the same period in 2023[48]. - The company incurred net cash used in investing activities of HK$223,541,000 for the six months ended June 30, 2024, compared to HK$108,202,000 in 2023, indicating an increase in investment expenditures[132]. - The company reported a net decrease in cash and cash equivalents of HK$45,867,000 for the six months ended June 30, 2024, compared to a decrease of HK$253,067,000 in 2023, indicating improved cash flow management[132]. Dividends - The company declared an interim dividend of HK$0.24 per ordinary share, an increase of 14.3% from HK$0.21 in 2023[12]. - The total amount of interim dividend declared for the six months ended 30 June 2024 is approximately HK$254,809,000, up from HK$225,464,000 in the same period of 2023[187]. Share Options and Equity - The Share Option Scheme allows for the issuance of up to 82,514,550 shares, which is 7.5% of the total number of shares in issue as of May 2, 2019[74]. - No share options were granted, cancelled, or lapsed during the six months ended June 30, 2024, with 4,550 share options available for grant as of January 1 and June 30, 2024[81]. - The total number of issued shares as of June 30, 2024, is 1,071,454,000 ordinary shares[89]. Market and Product Developments - The Group's largest revenue contribution during the first half of 2024 came from the EMEA region, with significant sales from Italy, the United Kingdom, and Hungary despite fluctuating demand in Germany and Spain[32]. - PAX launched new products including the A8900 and A99 SmartPOS terminals, all certified with PCI PTS 6.x, enhancing its Android smart payment portfolio[28]. - The Elys Series L1400 dual-screen terminal received positive market feedback in North America, indicating a successful introduction of value-added services in the retail and hospitality segments[42]. Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[141]. - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[141]. - The Group closely monitors foreign currency rates to manage foreign exchange risk effectively[61].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 3,013,241, a decrease of 15.6% compared to HKD 3,568,564 in the same period of 2023[2] - Gross profit for the same period was HKD 1,409,236, down 10.3% from HKD 1,570,917 year-on-year[2] - Operating profit decreased by 22.0% to HKD 537,525 from HKD 689,565 in the previous year[2] - Net profit attributable to shareholders was HKD 454,583, a decline of 30.1% compared to HKD 650,643 in the prior year[2] - Basic earnings per share decreased by 29.5% to HKD 0.425 from HKD 0.603[2] - The company reported a total comprehensive income of HKD 381,061 for the period, down from HKD 582,511 in the previous year[5] - The EBITDA for the six months ended June 30, 2024, was HKD 583,585 thousand, down from HKD 720,786 thousand, indicating a decline of 19.1%[21] - Net profit for the period was HKD 459.8 million, a decrease of 30.3% from HKD 659.6 million for the six months ended June 30, 2023, with profit attributable to owners of the company declining by 30.1% to HKD 454.6 million[52] - The diluted earnings per share for the six months ended June 30, 2024, is HKD 0.416, down from HKD 0.589 for the same period in 2023, reflecting a decrease of 29.3%[34] Revenue Breakdown - Sales of electronic payment terminal products accounted for HKD 2,849,245 thousand, down from HKD 3,444,446 thousand, representing a decline of 17.3%[17] - Revenue from electronic payment terminal products decreased by 17.3% to HKD 2,849,245,000 for the six months ended June 30, 2024, compared to HKD 3,444,446,000 in 2023[44] - Revenue from the largest customer amounted to approximately HKD 430,983,000, representing 14.3% of total revenue, a decrease from 17.9% in the same period last year[25] - Revenue from the second largest customer was approximately HKD 152,665,000, accounting for 5.1% of total revenue, down from 8.5% year-on-year[25] - The company experienced a significant revenue decline in the US and Canada region, with a decrease of 39.3% to HKD 358,721,000 for the six months ended June 30, 2024[43] - The group’s revenue from external customers in China (excluding Hong Kong, Macau, and Taiwan) was HKD 242,308 thousand[20] Assets and Liabilities - Total current assets increased by 3.1% to HKD 7,788,074 from HKD 7,553,221[8] - Total assets rose by 2.4% to HKD 9,291,220 compared to HKD 9,075,329 in the previous year[8] - The group’s total assets as of June 30, 2024, amounted to HKD 9,291,220 thousand, while total liabilities were HKD 1,666,454 thousand[22] - Non-current assets as of June 30, 2024, totaled HKD 1,503,146,000, slightly down from HKD 1,522,108,000 as of December 31, 2023[26] - Total accounts receivable as of June 30, 2024, is HKD 2,895,773,000, an increase of 4.7% from HKD 2,766,111,000 as of December 31, 2023[36] - The net accounts receivable after impairment provisions is HKD 2,819,899,000 as of June 30, 2024, compared to HKD 2,676,334,000 as of December 31, 2023, indicating a growth of 5.4%[36] - The accounts payable as of June 30, 2024, is HKD 1,119,610,000, an increase from HKD 887,133,000 as of December 31, 2023, reflecting a growth of 26.1%[39] Expenses - Cost of goods sold for the six months ended June 30, 2024, was HKD 1,529,980,000, a decrease from HKD 1,917,959,000 in the previous year[27] - Employee benefits expenses, including director remuneration, were HKD 392,024,000, down from HKD 483,834,000 year-on-year[28] - Total income tax expense for the six months ended June 30, 2024, was HKD 79,543,000, significantly higher than HKD 30,059,000 in the previous year[29] Strategic Initiatives - The company continues to focus on developing and selling electronic payment terminal products and providing related services[11] - The company is in the process of acquiring 100% of Pax Technology Australia for an initial consideration of approximately AUD 5,400,000, which may be adjusted up to AUD 30,000,000 based on financial performance over two years[42] - The company is focusing on innovation in Android smart terminal products and investing in a software-as-a-service ecosystem to meet diverse market needs[65] - The company plans to strengthen strategic partnerships with acquiring banks, payment service providers, and independent sales organizations to explore new business opportunities[65] Market Performance - In the EMEA region, the company maintained strong performance despite demand fluctuations in Germany and Spain, with significant sales in Italy, the UK, and Hungary[58] - In the APAC region, the company continued to lead the market in India, with sales showing signs of recovery in the first half of 2024, contributing to overall growth in the region[61] - The company has expanded its channel in Japan, making it a core market, with the A920 smart payment terminal gaining adoption among acquiring institutions[62] - In Southeast Asia, the company has seen significant contributions from Indonesia, the Philippines, and Thailand, while also covering more third-party payment service providers in Australia and New Zealand[62] - The company launched the Elys series Android EPOS solutions in North America, receiving positive feedback for the Elys L1400 dual-screen terminal in the first half of 2024[63] Corporate Governance - The company has complied with all applicable corporate governance codes and principles during the reporting period, ensuring adherence to standards set forth by the stock exchange[79] - The company has implemented a written code for securities trading for directors and senior management, confirming compliance with the standards throughout the reporting period[78] - The interim financial results for the six months ended June 30, 2024, were reviewed by the audit committee, ensuring the integrity of financial reporting and risk management practices[79] - The board of directors consists of four executive directors and four independent non-executive directors, ensuring a balanced governance structure[80] Shareholder Information - The company declared an interim dividend of HKD 0.24 per share for the six months ended June 30, 2024, compared to HKD 0.21 per share for the same period in 2023, representing an increase of 14.3%[35] - A total of 638,000 ordinary shares were repurchased at a total cost of HKD 3,813,590 during the six months ended June 30, 2024, with the highest repurchase price being HKD 6.00 per share[76][77] - The total number of shares repurchased was fully cancelled, resulting in a corresponding reduction in the issued share capital[76] - The company has suspended the registration of shareholders from September 10 to September 12, 2024, to determine eligibility for the interim dividend[75] - The company plans to issue its interim report to shareholders, which will be available on its website and the stock exchange's website[80] Employee Information - The total number of employees decreased to 1,596 as of June 30, 2024, from 1,771 as of December 31, 2023[72]

Financial Performance - Revenue for 2023 was HK$6,709,324, a decrease of 16.8% from HK$8,062,702 in 2022[5]. - Gross profit decreased by 9.4% to HK$2,994,001, resulting in a gross profit margin of 44.6%, up from 41.0% in 2022[5][7]. - Operating profit fell by 12.2% to HK$1,254,366, with an operating profit margin of 18.7% compared to 17.7% in the previous year[5][7]. - Profit for the year was HK$1,165,103, down 8.1% from HK$1,268,203 in 2022[5]. - Basic earnings per share decreased by 8.1% to HK$1.075, while the proposed final dividend per ordinary share increased by 21.1% to HK$0.23[6]. - Profit attributable to the owners of the Company was HK$1,155.2 million, representing a decrease of 8.7% from HK$1,264.7 million in 2022[43]. - The proposed final dividend for 2023 is HK$0.23 per ordinary share, an increase from HK$0.19 in 2022, totaling approximately HK$246,056,000[44]. - The annual profit for 2023 was HK$1,165.1 million, down 8.1% from HK$1,268.2 million in 2022, with profit attributable to owners at HK$1,155.2 million, a decline of 8.7%[47]. Asset and Liability Management - Total current assets decreased by 7.6% to HK$7,553,221, while total assets fell by 4.4% to HK$9,075,329[5]. - Net current assets increased by 7.1% to HK$6,064,406, and total equity rose by 8.4% to HK$7,486,174[5]. - Total liabilities decreased significantly by 38.5% to HK$1,589.2 million in 2023, down from HK$2,584.5 million in 2022[65]. - The current ratio improved to 5.1 from 3.3 in 2022, indicating better liquidity[7]. Research and Development - Research and development costs increased by 13.6% to HK$644,075, indicating a focus on innovation[5]. - The company is investing in new technology development, allocating $50 million towards R&D initiatives in the upcoming year[32]. - The Group plans to continue investing in technology development, focusing on Android smart terminals and SaaS platforms for long-term growth[58]. Market Expansion and Sales Growth - The company operates over 11,000,000 connected terminals, enhancing its market presence in the payment solutions sector[19]. - The company is exploring market expansion opportunities to increase its footprint in the payment solutions industry[20]. - PAX achieved record-high sales in Mexico, Chile, and Argentina, which have become significant growth drivers for the company[52]. - In the EMEA region, PAX experienced substantial sales growth in the UAE and Kuwait, nearly doubling sales, despite a slowdown in Saudi Arabia[54]. - The Asia Pacific region saw impressive sales growth in Japan, Indonesia, and the Philippines, with Japan's sales doubling due to an increase in inbound tourism[55]. - The Group's revenue from SaaS solutions, including MAXSTORE, reached over HK$100 million in 2023, with over 11 million devices connected to the platform[89]. Corporate Governance and Management - The board of directors includes experienced executives, with a new Chief Financial Officer appointed on March 14, 2024, to strengthen financial oversight[22]. - The company emphasizes employee engagement, retention, and training as part of its corporate culture[132]. - The Board consists of eight members, including four executive Directors and four independent non-executive Directors, ensuring a balanced composition for effective independent judgment[139]. - The Company has established formal and transparent procedures for the appointment and succession planning of Directors, enhancing governance practices[140]. - The Audit Committee consists of four independent non-executive Directors, including at least one member with appropriate professional qualifications or financial management expertise[169]. Risk Management - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against risk issues[199]. - The Audit Committee identifies significant risks, including ESG risks, and assesses their levels to determine acceptable risks for achieving strategic objectives[200]. - The Board acknowledges its overall responsibility for maintaining effective risk management and internal control systems to safeguard shareholder interests[198]. Future Outlook - Future outlook includes continued investment in new product development and technology enhancements to maintain competitive advantage[16]. - The company has provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[32]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on enhancing payment solutions[32].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue of HKD 6,709.3 million, a decrease of 16.8% compared to HKD 8,062.7 million in 2022[2] - The gross profit margin increased to 44.6%, with a net profit margin rising to 17.4%, despite a revenue decline[5] - Revenue for the year ended December 31, 2023, was HKD 6,709,324, a decrease of 16.8% compared to HKD 8,062,702 in 2022[18] - Gross profit for the same period was HKD 2,994,001, down 9.4% from HKD 3,306,141 in 2022, resulting in a gross margin of 44.6%[18][20] - The net profit for the year was HKD 1,165,103, reflecting an 8.1% decline from HKD 1,268,203 in 2022[18] - Annual profit decreased by 8.1% to HKD 1,165.1 million in 2023 from HKD 1,268.2 million in 2022, with profit attributable to owners declining by 8.7% to HKD 1,155.2 million[30] - The company reported a net profit of HKD 1,165,103 thousand for the year, compared to a profit of HKD 1,253,964 thousand in 2022, reflecting a decrease of 7.0%[58] - The company's profit attributable to owners for the year ended December 31, 2023, was HKD 1,155,164,000, a decrease from HKD 1,264,675,000 in 2022, representing a decline of approximately 8.6%[66] Revenue Breakdown - Sales of Android smart payment terminals accounted for over 50% of total revenue, highlighting their importance to the business[6] - Revenue from electronic payment terminal products fell by 18.0% from HKD 7,836.7 million in 2022 to HKD 6,424.8 million in 2023, attributed to decreased procurement orders[22][23] - Service revenue increased by 25.9% from HKD 226.0 million in 2022 to HKD 284.5 million in 2023, driven by growth in maintenance, installation services, and SaaS solutions[24] - The SaaS solutions generated over HKD 100 million in revenue, with more than 11 million terminals connected to the MAXSTORE platform[6] Expenses and Costs - The company’s R&D expenses amounted to HKD 644.1 million, up from HKD 567.1 million in the previous year, reflecting a commitment to innovation[2] - Selling expenses decreased by 17.9% from HKD 821.6 million in 2022 to HKD 674.5 million in 2023, primarily due to lower sales commissions and transportation costs[27] - Administrative expenses increased by 4.5% from HKD 1,121.0 million in 2022 to HKD 1,171.5 million in 2023, mainly due to rising R&D costs and employee benefits[28] - The cost of goods sold was HKD 3,538,104,000, down from HKD 4,595,464,000 in the previous year[63] Assets and Liabilities - Total current assets decreased by 7.6% to HKD 7,553,221 from HKD 8,173,014 in 2022, while total liabilities decreased by 38.5% to HKD 1,589,155[19] - The total assets as of December 31, 2023, were HKD 9,075,329 thousand, down from HKD 9,490,329 thousand in 2022[48] - Total liabilities decreased to HKD 1,589,155 thousand from HKD 2,584,479 thousand, a reduction of 38.6%[49] - Accounts payable decreased to HKD 888,621,000 in 2023 from HKD 1,699,530,000 in 2022, representing a reduction of approximately 47.8%[77] Market and Growth - The global payment terminal market is projected to grow from USD 15.7 billion in 2023 to USD 29.6 billion by 2030, with a compound annual growth rate of 9.5%[14] - The company achieved record sales in Mexico, Chile, and Argentina, contributing significantly to growth in the Latin American market[10] - The company reported a significant sales growth in the Asia-Pacific region, with sales in Japan doubling and sales in the Philippines increasing by over 400%[12] - The company aims to strengthen its international presence, particularly in Latin America, the Middle East, and Southeast Asia, while exploring strategic acquisition opportunities[17] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.21 per share for 2023, totaling approximately HKD 225,464,000, an increase from HKD 183,341,000 in 2022[70] - The proposed final dividend for the year ended December 31, 2023, is HKD 0.23 per share, amounting to approximately HKD 246,056,000, up from HKD 205,165,000 in 2022[71] - The total dividend per share for the year ending December 31, 2023, is HKD 0.44, compared to HKD 0.36 in 2022, reflecting an increase of approximately 22.2%[83] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code and has implemented necessary training for directors and senior management[86] - The audit committee has reviewed the accounting policies adopted by the group and the audited consolidated financial statements for the year ended December 31, 2023[87] - The auditor, PwC, confirmed that the figures in the preliminary performance announcement are consistent with the audited consolidated financial statements for the year ended December 31, 2023[87] - The company maintains sufficient public float as required by the listing rules as of the announcement date[88] Research and Development - The company recognized additional R&D tax incentives amounting to HKD 72,786,000 for the year ended December 31, 2023, compared to none in 2022[65] - Research and development costs increased to HKD 644,075,000 in 2023 from HKD 567,141,000 in 2022[63]

Financial Performance - Revenue decreased by 14.7% to HK$3,568.6 million for the six months ended June 30, 2023, compared to HK$4,182.5 million for the same period in 2022[9] - Gross profit for the period was HK$1,570.9 million, representing a decrease of 6.0% from HK$1,671.3 million in the previous year[5] - Operating profit declined by 11.7% to HK$689.6 million, down from HK$781.1 million in the prior year[5] - Profit attributable to the owners of the Company was HK$650.6 million, a decrease of 7.0% from HK$699.8 million in 2022[5] - Profit for the period was HK$659.6 million, representing a decrease of 6.3% compared to HK$703.8 million for the six months ended June 30, 2022[20] - Basic earnings per share decreased by 6.7% to HK$0.603 from HK$0.646 in the previous year[6] - Total comprehensive income for the period was HK$582,511, an increase from HK$517,277 in 2022, driven by lower exchange losses[111] Revenue Breakdown - Revenue from E-payment Terminals products decreased by 15.8% to HK$3,444.4 million for the six months ended 30 June 2023 from HK$4,091.0 million for the same period in 2022[12] - Revenue from provision of services increased by 35.6% to HK$124.1 million for the six months ended 30 June 2023 from HK$91.5 million for the same period in 2022[13] - The USCA region recorded a revenue growth of 20.2% to HK$591.4 million, driven by increased demand for Android smart payment terminals[9] - Revenue from the LACIS region decreased by 18.0% to HK$1,371.1 million, while EMEA revenue fell by 19.1% to HK$1,155.9 million[9] Expenses and Costs - Research and development costs increased by 14.9% to HK$306.9 million, compared to HK$267.0 million in the previous year[5] - Selling expenses decreased by 7.1% to HK$354.4 million for the six months ended June 30, 2023 from HK$381.4 million for the same period in 2022[18] - Administrative expenses increased by 7.3% to HK$581.0 million for the six months ended June 30, 2023 from HK$541.3 million for the same period in 2022[19] Assets and Liabilities - Total current assets decreased by 7.2% to HK$7,585.3 million as of June 30, 2023, from HK$8,173.0 million at the end of 2022[5] - Total equity increased by 4.9% to HK$7,245.8 million compared to HK$6,905.9 million at the end of 2022[5] - Total assets decreased from HK$9,490,329,000 as of December 31, 2022, to HK$8,958,231,000 as of June 30, 2023, representing a decline of approximately 5.6%[113] - Current liabilities decreased significantly from HK$2,509,506,000 to HK$1,634,863,000, a reduction of approximately 34.8%[115] Cash Flow and Investments - For the six months ended June 30, 2023, net cash generated from operating activities was HK$111.7 million, a significant improvement from a net cash used of HK$34.6 million in the same period of 2022[52] - Cash and cash equivalents decreased from HK$3,160,238,000 to HK$2,876,585,000, a drop of approximately 9.0%[113] - The net cash used in investing activities was HK$108,202,000, down from HK$158,738,000 in the same period of 2022[125] Shareholder Information - The board declared an interim dividend of HK$0.21 per ordinary share for the six months ended June 30, 2023, compared to HK$0.17 per share for the same period in 2022[72] - A total of 1,432,000 share options were exercised during the six months ended June 30, 2023, with a weighted average closing price of HK$6.48 per share before exercise[75] - The total number of issued shares as of June 30, 2023, was 1,075,327,000 ordinary shares[84] Market and Economic Outlook - The global economic growth is projected to decline from 3.5% in 2022 to 3.0% in 2023, impacting customer deployment plans[29] - The electronic payment industry in the Middle East and Africa continues to flourish, with notable sales growth recorded in Nigeria, South Africa, and the UAE[40] - The global retail POS market size is projected to grow from US$16.2 billion in 2022 to US$34.6 billion in 2030, with a compound annual growth rate (CAGR) of 13.5%[48] Corporate Governance and Compliance - The company has complied with all applicable corporate governance code provisions for the six months ended June 30, 2023[95] - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[133] Research and Development - PAX launched several new products in the first half of 2023, including Android smart payment solutions and the Elys series, which received international design awards[35] - The Group is focused on strengthening its technological innovation capabilities and building higher technical barriers with Android smart terminals and the SaaS ecosystem[47]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 3,568,564, a decrease of 14.7% compared to HKD 4,182,493 in the same period of 2022[2] - Gross profit for the same period was HKD 1,570,917, down 6.0% from HKD 1,671,286 year-on-year[2] - Operating profit decreased by 11.7% to HKD 689,565 from HKD 781,096 in the previous year[2] - Net profit attributable to shareholders was HKD 650,643, a decline of 7.0% compared to HKD 699,770 in 2022[2] - Basic earnings per share for the period was HKD 0.603, down 6.7% from HKD 0.646 in the prior year[2] - The group reported total revenue of HKD 3,568,564,000 for the six months ended June 30, 2023, a decrease of 14.7% compared to HKD 4,182,493,000 for the same period in 2022[13] - The group achieved an EBITDA of HKD 720,786,000, with a notable increase in profitability from the Chinese market, contributing HKD 473,363,000[16] - The group’s net profit for the period was HKD 659,614,000, down from HKD 703,786,000 in the same period last year[17] - Net profit for the period was HKD 659.6 million, a decline of 6.3% from HKD 703.8 million for the six months ended June 30, 2022[48] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 8,958,231, a decrease of 5.6% from HKD 9,490,329 at the end of 2022[6] - Current assets totaled HKD 7,585,309, down 7.2% from HKD 8,173,014 at the end of 2022[6] - The group’s total assets as of June 30, 2023, amounted to HKD 8,958,231,000, while total liabilities were HKD 1,712,424,000[18] - Non-current assets as of June 30, 2023, totaled HKD 1,372,922,000, up from HKD 1,317,315,000 as of December 31, 2022[22] Revenue Breakdown - Revenue from the sale of electronic payment terminal products and services was HKD 3,444,446,000 and HKD 124,118,000 respectively, totaling HKD 3,568,564,000[13] - Revenue from the largest customer amounted to approximately HKD 638,197,000, representing 17.9% of total revenue, a decrease from 31.0% in the same period last year[21] - Revenue from the second largest customer was approximately HKD 303,135,000, accounting for 8.5% of total revenue, an increase from 4.8% year-on-year[21] - Revenue from the US and Canada (USCA) region increased by 20.2% to HKD 591,445,000, while revenue from Latin America and CIS (LACIS) and EMEA regions decreased by 18.0% and 19.1%, respectively[39] - Sales of electronic payment terminal products decreased by 15.8% to HKD 3,444,446,000 from HKD 4,090,955,000 in the previous year[40] Expenses and Costs - Total cost of goods sold for the six months ended June 30, 2023, was HKD 1,917,959,000, down from HKD 2,444,541,000 in the previous year[23] - Research and development expenses increased to HKD 306,873,000 from HKD 266,985,000 year-on-year[23] - Employee benefits expenses, including director remuneration, rose to HKD 483,834,000 from HKD 423,914,000 year-on-year[24] - The total income tax expense for the six months ended June 30, 2023, was HKD 30,059,000, significantly lower than HKD 76,425,000 in the previous year[25] - Selling expenses decreased by 7.1% from HKD 381.4 million to HKD 354.4 million, attributed to lower sales commissions and transportation costs[45] - Administrative expenses increased by 7.3% from HKD 541.3 million to HKD 581.0 million, primarily due to rising R&D costs and employee benefits[46] Cash Flow and Dividends - The company’s cash and cash equivalents were HKD 2,876,585, down from HKD 3,160,238 at the end of 2022[6] - The company declared an interim dividend of HKD 0.21 per share, totaling approximately HKD 225,464,000, compared to HKD 0.17 per share and HKD 183,341,000 for the same period in 2022[31] - The company repurchased a total of 6,800,000 ordinary shares at a total cost of approximately HKD 43,189,960 during the six months ended June 30, 2023[72] Corporate Strategy and Market Outlook - The company plans to continue focusing on the development and sales of electronic payment solutions, aiming for market expansion and technological advancements[8] - The company is focusing on enhancing its global presence and exploring acquisition opportunities to strengthen its sales network and innovative payment technologies[60] - The company aims to build stronger partnerships with international acquiring banks, payment service providers, and independent sales organizations to better serve customers[58] - In Latin America, the company is optimistic about long-term demand for payment processing and financial services in Brazil despite current economic challenges[54] - The global retail POS market is projected to grow from USD 16.2 billion in 2022 to USD 34.6 billion by 2030, with a compound annual growth rate (CAGR) of 13.5%[59] Governance and Compliance - The company has implemented corporate governance practices in accordance with the principles and code provisions of the Corporate Governance Code[76] - The audit committee reviewed the accounting principles and practices adopted by the company, ensuring compliance with risk management and financial reporting standards[77] - The company has adopted a written code for securities trading by directors and senior management, ensuring compliance with the standards set forth in the listing rules[74] Employee and Workforce - As of June 30, 2023, the total number of employees increased to 1,747 from 1,712 as of December 31, 2022, representing a growth of approximately 2.04%[67] - The employee count in R&D increased to 957 from 920, indicating a growth of 4.02%[68]

Financial Performance - Revenue for 2022 increased by 12.0% to HK$8,062,702,000 compared to HK$7,195,982,000 in 2021[7] - Gross profit rose by 16.9% to HK$3,306,141,000, with a gross profit margin of 41.0% in 2022, up from 39.3% in 2021[7][9] - Profit for the year increased by 16.1% to HK$1,268,203,000, with profit attributable to owners rising by 16.7% to HK$1,264,675,000[7] - Basic earnings per share grew by 18.3% to HK$1.170, while diluted earnings per share increased by 19.2% to HK$1.141[8] - Proposed final dividend per ordinary share increased by 26.7% to HK$0.19 from HK$0.15 in 2021[8] - The Group's revenue for 2022 reached HK$8,062.7 million, a 12.0% increase from HK$7,196.0 million in 2021, primarily driven by increased sales of Android payment terminals[59] - Profit for the year was HK$1,268.2 million, representing a 16.1% increase compared to HK$1,092.2 million in 2021[71] - The gross profit for the same period was HK$3,306.1 million, reflecting a 16.9% increase, while gross profit margin improved to 41.0% from 39.3%[73] Market Expansion and Product Development - The company is focusing on expanding its product offerings in electronic payment solutions, including Android-based devices and integrated solutions[16][17] - New product development includes the launch of advanced E-payment Terminals, which are expected to enhance market competitiveness[55] - The company is expanding its market presence in Southeast Asia, targeting a growth rate of C% in that region over the next two years[56] - The Group's Android product portfolio supports various use cases, including portable wireless terminals and self-service kiosks, to meet diverse payment scenarios[99] - PAX aims to expand its presence in Southeast Asia, the Middle East, and Africa, exploring mergers and acquisitions to strengthen its distribution network[104] Research and Development - Research and development costs rose by 10.7% to HK$567,141,000, reflecting the company's commitment to innovation[7] - The company plans to continue investing significantly in the research and development of Android payment terminal technology and related cloud-based software platforms[66] - The company is investing in R&D, allocating E% of its revenue towards innovation and technology advancements[55] Operational Metrics - Cash conversion days increased to 171 days in 2022, up from 144 days in 2021, indicating a longer time to convert sales into cash[10] - Total current assets as of December 31, 2022, were HK$8,173,014,000, a 4.9% increase from HK$7,790,106,000 in 2021[7] - As of December 31, 2022, the Group had cash and cash equivalents of HK$3,160.2 million, down from HK$3,533.0 million in 2021, representing a decrease of approximately 10.6%[107] - The Group reported net current assets of HK$5,663.5 million as of December 31, 2022, an increase from HK$5,526.6 million in 2021, reflecting a growth of about 2.5%[107] - Net cash generated from operating activities for the year ended December 31, 2022, was HK$648.5 million, significantly up from HK$347.7 million in 2021, marking an increase of approximately 86.5%[107] Corporate Governance - The Company emphasizes the importance of effective leadership and control by the Board to ensure transparency and accountability in operations[125] - The Group is committed to fostering a corporate culture that promotes innovation, sustainability, and compliance with laws and regulations[126] - The Company has complied with all applicable Code Provisions in its corporate governance practices throughout the year[129] - The Board consists of six members: three executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective independent judgment[136] - The Company recognizes the significance of good corporate governance for its healthy growth and has formulated appropriate practices[127] Risk Management - The Company employs a bottom-up approach for risk identification, assessment, and mitigation across all business units and functional areas[193] - The Audit Committee evaluates the effectiveness of risk management systems at least annually, ensuring adequate resources and staff qualifications[192] - Significant risks, including ESG risks, are identified and evaluated by the Audit Committee with the help of independent third-party consultants[198] - The Company maintains a risk register to track identified risks and their corresponding mitigation measures[199] - The risk management systems provide reasonable assurance against risks but do not eliminate the possibility of failure to achieve business objectives[197]

Financial Performance - Total revenue for the year ended December 31, 2022, reached HKD 8,062.7 million, a 12.0% increase from HKD 7,195.9 million in 2021[2] - Annual profit increased by 16.1% to HKD 1,268.2 million, compared to HKD 1,092.2 million in the previous year[2] - The company's net profit for the year was HKD 1,268,203 thousand, reflecting a 16.1% increase compared to HKD 1,092,242 thousand in the previous year[16] - The company's earnings per share (EPS) increased by 18.3% to HKD 1.170 for the year ended December 31, 2022, compared to HKD 0.989 in 2021[17] - The gross profit for the year was HKD 3,306,141 thousand, compared to HKD 2,827,197 thousand in the previous year, indicating a gross margin improvement[40] - The operating profit for the year was HKD 1,429,342 thousand, an increase from HKD 1,277,972 thousand in 2021, showing a growth of about 11.8%[40] - The total equity attributable to the company's shareholders was HKD 6,934,826 thousand, compared to HKD 6,487,129 thousand in the previous year, reflecting an increase of 6.9%[43] - The total liabilities amounted to HKD 2,584,479 thousand, an increase from HKD 2,364,722 thousand, representing a rise of 9.3%[43] - The company reported a decrease in other income to HKD 64,915 thousand from HKD 96,315 thousand in the previous year, a decline of about 32.5%[40] - The company incurred a total tax expense of HKD 162,905,000 for the year, compared to HKD 182,205,000 in 2021[59] Revenue Breakdown - Sales of Android smart payment terminals grew significantly by 37.4% to HKD 4,438.3 million, accounting for over 50% of total revenue[5] - Revenue from electronic payment terminal products increased by 11.7% to HKD 7,836.70 million in 2022, driven by strong sales of Android smart terminals[19] - Service revenue grew by 25.1% to HKD 226.00 million, primarily due to increased income from SaaS solutions[21] - The company operates primarily in China, with revenue from external customers in China (excluding Hong Kong, Macau, and Taiwan) amounting to HKD 6,874,227 thousand[53] Market Performance - The company achieved a strong performance in the EMEA region with a revenue growth of 41.5%, surpassing HKD 2.5 billion for the first time[7] - In Latin America, the company maintained its position as the leading payment terminal supplier for five consecutive years, despite economic challenges in Brazil[6] - In North America, the company reported a 35.4% year-on-year sales increase, surpassing HKD 1 billion for the first time, with Android product sales growing over 60% compared to the previous year[10] - In the Asia-Pacific region, the company achieved record sales in India, with sales growth driven by the shift from traditional payment terminals to Android smart payment solutions, particularly the A series products[8] - In Indonesia, sales more than doubled, supported by government initiatives under the "2025 Indonesian Payment System Blueprint," positioning Indonesia as a key growth driver for the company in the Asia-Pacific region[9] Strategic Initiatives - The company plans to enhance its MAXSTORE platform, which has integrated over 8 million payment terminals and offers more than 8,500 software and business applications[5] - The company plans to continue investing in payment acceptance technology solutions, focusing on product innovation, quality, and security for 2023[11] - The company aims to expand its global sales network and strengthen partnerships to increase market share in international markets[13] - The company has set clear development goals to explore potential markets in Southeast Asia, the Middle East, and Africa, while seeking synergistic acquisition and investment opportunities[14] - The company is committed to strengthening supply chain management and flexibility to capture future market opportunities, with a new industrial park in Huizhou expected to be completed by the end of 2023[15] Employee and Governance - The total number of employees as of December 31, 2022, was 1,712, up from 1,654 in 2021, reflecting a growth of approximately 3.5%[36] - The company has maintained a focus on ensuring competitive compensation packages for employees, including fixed salaries and performance-related bonuses[38] - The board of directors includes three executive directors and three independent non-executive directors[85] - The company is committed to transparency and governance as indicated by the board structure[85] Dividends and Shareholder Returns - The interim dividend declared for 2022 was HKD 0.17 per share, totaling approximately HKD 183,341,000, compared to HKD 0.12 per share and HKD 131,636,000 in 2021, marking an increase of about 39.2%[65] - The proposed final dividend for 2022 is HKD 0.19 per share, amounting to approximately HKD 205,165,000, compared to HKD 0.15 per share and HKD 162,855,000 in 2021, representing an increase of about 27.0%[65] - The total dividend per share for the year ending December 31, 2022, is HKD 0.36, compared to HKD 0.27 in 2021, reflecting a 33% increase[78] Financial Position - Cash and cash equivalents amounted to HKD 3,160.20 million as of December 31, 2022, down from HKD 3,533.00 million in 2021, with no borrowings reported[29] - Current ratio was 3.3 and quick ratio was 2.2 as of December 31, 2022, indicating strong liquidity[30] - The total assets as of December 31, 2022, amounted to HKD 9,490,329 thousand, an increase from HKD 8,821,278 thousand in 2021, reflecting a growth of about 7.6%[42] - The cash and cash equivalents as of December 31, 2022, were HKD 3,160,238 thousand, down from HKD 3,532,954 thousand in the previous year, indicating a decrease of approximately 10.6%[42] Compliance and Audit - The audit committee has reviewed the accounting policies and the audited consolidated financial statements for the year ending December 31, 2022, ensuring accuracy in financial reporting[82] - The company has adopted a written code of conduct for securities transactions, confirming compliance with the standards set forth in the listing rules[80] - The company has maintained sufficient public float as per listing rules throughout the year, ensuring compliance with regulatory requirements[83]