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]

Financial Performance - Revenue increased by 26.0% to HK$4,182.5 million for the six months ended 30 June 2022, compared to HK$3,318.7 million for the same period in 2021[22]. - Gross profit rose by 25.9% to HK$1,671.3 million, with a gross profit margin of 40.0%[13][17]. - Operating profit increased by 31.7% to HK$781.1 million, resulting in an operating profit margin of 18.7%[13][17]. - Profit for the period surged by 35.7% to HK$703.8 million, with a net profit margin of 16.8%[13][17]. - Earnings per share (basic) rose by 37.4% to HK$0.646, while diluted earnings per share increased by 38.7% to HK$0.631[16]. - Profit for the period was HK$703.8 million, representing an increase of 35.7% compared to HK$518.6 million for the six months ended 30 June 2021[32]. - Profit attributable to the owners of the Company increased by 35.9% to HK$699.8 million for the six months ended 30 June 2022 from HK$515.0 million for the same period in 2021[32]. Revenue Sources - Sales of e-payment terminals increased by 26.5% to HK$4,090.9 million, indicating strong market demand[24]. - Revenue from E-payment Terminals products increased by 26.5% to HK$4,091.0 million for the six months ended 30 June 2022 from HK$3,232.9 million for the same period in 2021[27]. - Revenue from provision of services increased by 6.7% to HK$91.5 million for the six months ended 30 June 2022 from HK$85.8 million for the same period in 2021, mainly due to growth in SaaS solutions[27]. Regional Performance - The EMEA region recorded a significant revenue growth of 62.2%, reaching HK$1,429.1 million[21]. - Sales in the EMEA region grew by 62.2% year-on-year, driven by strong demand for flagship models A920Pro and A920[45]. - PAX's revenue increased by 26.0% to HK$4,182.5 million in the first half of 2022, with significant success in the EMEA and USCA regions[39]. - In India, digital payments are projected to account for nearly 65% of all transactions by 2026, presenting significant growth opportunities for PAX[47]. Expenses and Costs - Research and development costs increased by 15.3% to HK$266.9 million, reflecting the company's commitment to innovation[13]. - Selling expenses increased by 14.3% to HK$381.4 million for the six months ended 30 June 2022 from HK$333.7 million for the same period in 2021[30]. - Administrative expenses increased by 22.0% to HK$541.3 million for the six months ended 30 June 2022 from HK$443.7 million for the same period in 2021, mainly due to increased employee benefit expenses for R&D staff[31]. Dividends and Shareholder Returns - Interim dividend per ordinary share increased by 41.7% to HK$0.170, reflecting the company's strong financial performance[16]. - The interim dividend declared is HK$0.17 per ordinary share, an increase from HK$0.12 per ordinary share for the same period last year, representing a rise of approximately 41.67%[76]. Cash Flow and Assets - Total current assets grew by 4.3% to HK$8,125.3 million, while total assets increased by 5.2% to HK$9,279.9 million[14]. - As of June 30, 2022, the Group had cash and cash equivalents of HK$2,980.7 million, a decrease from HK$3,533.0 million as of December 31, 2021[55]. - For the six months ended June 30, 2022, net cash used in operating activities was HK$34.6 million, a significant decrease from HK$247.5 million for the same period in 2021[55]. - The Group reported net current assets of HK$5,665.3 million as of June 30, 2022, compared to HK$5,526.6 million as of December 31, 2021[55]. Market Expansion and Strategy - The ongoing shift towards Android smart payment terminal solutions is driven by government initiatives and the demand for cashless payment solutions[38]. - The company is focusing on R&D to develop innovative products and diversify its terminal and software solutions, reinforcing its one-stop payment ecosystem[54]. - The company aims to strengthen its global sales network and enhance its leadership position in international markets by seeking more strategic partnerships and expanding its market segments[54]. - The company plans to explore other markets with growth potential and continue seeking M&A and investment opportunities to deliver synergies to its business[54]. Employee and Governance - The total number of employees as of June 30, 2022, was 1,642, a slight decrease from 1,654 as of December 31, 2021[67]. - The Group sponsors selected employees for external training courses to enhance their skills relevant to the Group's business needs[72]. - The Group's remuneration packages for employees include fixed monthly income plus annual performance-related bonuses[71]. - The corporate governance practices are based on the principles and code provisions set out in the Corporate Governance Code[106]. Financial Risk Management - The Group's financial risk management focuses on minimizing potential adverse effects on financial performance due to market unpredictability[137]. - The Group's overall risk management program aims to address market risks, including foreign exchange risk and liquidity risk[137]. - There were no significant changes in risk management policies since December 31, 2021[137].

Financial Performance - Revenue for the year ended December 31, 2021, increased to HK$7,195,982, representing a growth of 27.3% compared to HK$5,650,619 in 2020[11]. - Gross profit for 2021 was HK$2,827,197, with a gross profit margin of 39.3%, down from 41.4% in 2020[11][13]. - Operating profit rose to HK$1,277,972, reflecting an increase of 19.7% from HK$1,067,172 in the previous year[11]. - Profit attributable to the owners of the Company for 2021 was HK$1,083,774, a 20.3% increase from HK$900,123 in 2020[11]. - Profit for the year was HK$1,092.2 million, an increase of 20.8% compared to HK$903.9 million in 2020[61]. - Profit attributable to the owners of the Company was HK$1,083.8 million, up 20.4% from HK$900.1 million in 2020[61]. - The Group's revenue for 2021 reached HK$7,196.0 million, representing a 27.3% increase from HK$5,650.6 million in 2020[61]. - Revenue from E-payment Terminals products rose by 26.8% to HK$7,015.2 million for the year ended 31 December 2021, compared to HK$5,532.2 million in 2020[90]. - Revenue from provision of services increased by 52.6% to HK$180.7 million for the year ended 31 December 2021, up from HK$118.4 million in 2020, primarily due to growth in SaaS solutions[90]. Research and Development - Research and development costs amounted to HK$512,119, up from HK$460,772 in 2020, indicating a focus on innovation[11]. - PAX has consistently invested in R&D, focusing on new-generation Android smart payment terminals and enhancing the PAXSTORE platform[64]. - PAX plans to prioritize R&D investment in Android smart terminals and the PAXSTORE platform to enhance product offerings and security measures[74]. - The company plans to invest $10 million in R&D for innovative payment solutions over the next two years[55]. Market Expansion and Product Development - The company is expanding its product offerings with new Android smart e-payment solutions and electronic cash register solutions, enhancing its market presence[20][21]. - The company is actively pursuing market expansion and product development to maintain its competitive edge in the payment solutions industry[25][27]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[57]. - New product development includes the launch of advanced E-payment terminals, expected to enhance market competitiveness[56]. - Significant sales growth was achieved in Saudi Arabia, Egypt, and Nigeria, with increased market share in the GCC countries[69]. - PAX successfully launched the world's first Android smart PayPhone in Brazil during the year[68]. Financial Position and Assets - Total current assets reached HK$7,790,106, an increase from HK$6,955,116 in 2020[11]. - The company reported a net current assets value of HK$5,526,563, up from HK$5,000,797 in the previous year[11]. - Total equity increased by 15.8% to HK$6,456,556, up from HK$5,573,572 in the previous year[81]. - The Group's cash and cash equivalents totaled HK$3,533.0 million, a decrease from HK$3,805.8 million in 2020[116]. - The Group reported net current assets of HK$5,526.6 million as of December 31, 2021, compared to HK$5,000.8 million in 2020, indicating a growth of approximately 10.5%[116]. Corporate Governance - The Board consists of six members, including three executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective independent judgment[143]. - The Company has established written guidelines regulating securities transactions for Directors and senior management, adhering to standards no less exacting than the Model Code[138]. - The overall management of the Company's business is vested in the Board, which is collectively responsible for promoting the Company's success through effective leadership and control[139]. - The Company emphasizes the importance of good corporate governance for healthy growth and has formulated practices appropriate to its needs[134]. - The Board periodically reviews and monitors corporate governance policies to ensure compliance with applicable laws and standards[134]. Risk Management - Risk management strategies have been enhanced to mitigate potential market volatility impacts[53]. - The Group's policies and practices on corporate governance are regularly reviewed and monitored by the Board[196]. - The Board has developed the Group's internal control and risk management systems, acknowledging its overall responsibility for maintaining effective risk management and internal control systems[199]. Employee and Management - The total number of employees decreased to 1,654 as of December 31, 2021, from 1,677 in 2020, reflecting a reduction of approximately 1.4%[127]. - The management team has extensive experience in the electronic payment industry, with key executives having over 20 years of relevant experience[48]. - The management considers foreign exchange risk with respect to US$ to be not significant due to the peg between HK$ and US$[125]. Shareholder Returns - Proposed final dividend per ordinary share increased by 50.0% to HK$0.15 from HK$0.10 in 2020[12]. - The Board recommended a final dividend of HK$0.15 per ordinary share, totaling approximately HK$162,855,000[61]. - The Group conducted multiple share buybacks, repurchasing 13.2 million ordinary shares for approximately HK$86.6 million[66].