(327.HK) PAX Global Technology Limited Interim results 2025 Disclaimer The information contained in these presentation materials has been prepared by PAX Global Technology Limited ( "Company" or "PAX") (incorporated in Bermuda with limited liability) solely for use at the presentation to prospective investors for introduction of the Company. By accepting this document, you are agreeing to maintain absolute confidentiality regarding the information disclosed in this document. This document has not been indep ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 PAX GLOBAL TECHNOLOGY LIMITED 承董事會命 百富環球科技有限公司 執行董事兼公司秘書 張仕揚 香港，二零二五年八月六日 於本公告日期，董事會成員包括三名執行董事，分別為聶國明先生、李文晉先生 及張仕揚先生；以及四名獨立非執行董事葉偉明先生、吳敏博士、文國權先生及 霍偉舜先生。 * 僅供識別 百富環球科技有限公 司* （於百慕達註冊成立之有限公司） （股份代號：327） 董事會會議召開日期 百富環球科技有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司將於二零 二五年八月十八日（星期一）舉行董事會會議，藉以（其中包括）考慮及批准本公司及 其附屬公司截至二零二五年六月三十日止六個月之中期業績及其發佈、考慮宣派中 期股息（如有），以及處理任何其他事項。 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 百富環球科技有限公司（於百慕達註冊成立之有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 第 2 頁 共 10 頁 v 1.1.1 III.已發行股份及/或庫存股份變動詳情 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00327 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.1 HKD | | 200,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | ...

Group 1 - The core viewpoint of the article highlights the significant stock price increase of Baifu Global, which rose by 10.27% to reach HKD 6.87 per share, with a trading volume of HKD 185 million [1] - Baifu Global Technology Co., Ltd. specializes in providing electronic payment terminal solutions, with over 90 distributors and partners globally, and its products are sold in more than 120 countries [1] - The company has shipped over 80 million electronic payment terminals worldwide, with nearly 50% of its employees dedicated to research and development [1] Group 2 - As of the 2024 annual report, Baifu Global reported a total revenue of HKD 5.598 billion and a net profit of HKD 661 million [2]

Core Viewpoint - The payment industry is experiencing unprecedented efficiency due to the rise of electronic payments, but security remains the core focus for long-term market performance [1] Group 1: Company Achievements - 百富环球 has been re-elected as a member of the PCI Security Standards Council (PCI SSC), highlighting its strong brand credibility and product safety [1][2] - The company is recognized alongside major global firms such as Apple, Amazon, and Microsoft, indicating high international recognition of its brand and products [1] - 百富环球 has established a broad influence globally, with operations across EMEA, LACIS, APAC, and USCA regions [2] Group 2: Technological Advancements - 百富环球's flagship Android payment terminal, A920Pro, has successfully passed the EMVCo C-8 contactless payment standard certification, enhancing its market competitiveness and technological leadership [2] - As a member of the EMVCo Advisory Board, 百富环球 has proactively optimized its products according to the EMVCo C-8 standards [2] Group 3: Product Evolution - The A920Pro will enhance security by effectively preventing new types of payment fraud and improve convenience by reducing integration workload and overall costs [3] - The product will ensure operational continuity during the migration process, allowing for a seamless transition while remaining compatible with existing systems [3] Group 4: Industry Outlook - With the rapid advancement of financial technology and government support for cashless economies, 百富环球 is positioned to enhance payment efficiency and security, contributing to the orderly development of the industry [3] - The leadership of top companies like 百富环球 is expected to drive the global electronic payment industry towards new prosperity [3]

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].