[Report Overview](index=1&type=section&id=ReportOverview) This section provides a high-level summary of the company's financial performance and key balance sheet items for the interim period [Financial Summary (Summary Table)](index=1&type=section&id=FinancialSummaryTable) PAX Global Technology reported a 9.9% revenue decrease to **HKD 2.716 billion** and a 14.9% profit decline to **HKD 391 million** for the six months ended June 30, 2025 Financial Summary for the Six Months Ended June 30 | Metric | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,716,164 | 3,013,241 | -9.9% | | Gross Profit | 1,272,545 | 1,409,236 | -9.7% | | Operating Profit | 470,997 | 537,525 | -12.4% | | Profit for the Period | 391,351 | 459,760 | -14.9% | | Profit Attributable to Owners of the Company | 390,877 | 454,583 | -14.0% | | R&D Costs | (305,174) | (304,219) | +0.3% | | Basic EPS (HKD) | 0.369 | 0.425 | -13.2% | | Diluted EPS (HKD) | 0.363 | 0.416 | -12.7% | | Interim Dividend per Ordinary Share (HKD) | 0.25 | 0.24 | +4.2% | Key Balance Sheet Items (As of June 30) | Metric | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | 7,708,931 | 7,646,119 | +0.8% | | Total Assets | 9,208,715 | 9,169,505 | +0.4% | | **Equity** | | | | | Net Current Assets | 6,400,937 | 6,130,960 | +4.4% | | Total Equity | 7,805,146 | 7,564,587 | +3.2% | [Financial Statements](index=2&type=section&id=FinancialStatements) This section presents the interim condensed consolidated statements of profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=InterimCondensedConsolidatedStatementOfProfitOrLoss) Revenue decreased by **9.9%** to **HKD 2.716 billion**, with operating profit and profit for the period declining by **12.4%** and **14.9%** respectively, driven by revenue reduction and increased other losses Key Data from Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,716,164 | 3,013,241 | -9.9% | | Cost of Sales | (1,443,619) | (1,604,005) | -9.9% | | Gross Profit | 1,272,545 | 1,409,236 | -9.7% | | Other Income | 29,568 | 36,851 | -19.8% | | Other (Losses) / Gains | (9,871) | 1,589 | -721.2% | | Selling Expenses | (302,663) | (346,978) | -12.8% | | Administrative Expenses | (515,821) | (576,796) | -10.6% | | Net Impairment Loss on Financial Assets / Net Reversal of Impairment Loss | (2,761) | 13,623 | -120.3% | | Operating Profit | 470,997 | 537,525 | -12.4% | | Finance Costs | (2,446) | (2,908) | -15.9% | | Share of Results of Investments Accounted for Using Equity Method | (2,601) | 4,686 | -155.5% | | Profit Before Income Tax | 465,950 | 539,303 | -13.6% | | Income Tax Expense | (74,599) | (79,543) | -6.3% | | Profit for the Period | 391,351 | 459,760 | -14.9% | | Profit Attributable to Owners of the Company | 390,877 | 454,583 | -14.0% | | Basic EPS (HKD) | 0.369 | 0.425 | -13.2% | | Diluted EPS (HKD) | 0.363 | 0.416 | -12.7% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=InterimCondensedConsolidatedStatementOfComprehensiveIncome) Total comprehensive income increased by **35.1%** to **HKD 515 million**, primarily due to favorable exchange differences from overseas subsidiaries' financial statement translations Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 391,351 | 459,760 | -14.9% | | Exchange Differences on Translation of Financial Statements of Overseas Subsidiaries (may be reclassified to profit or loss) | 119,159 | (77,283) | +254.1% | | Exchange Differences on Translation of Financial Statements of Overseas Subsidiaries (will not be reclassified to profit or loss) | 4,491 | (1,416) | +417.2% | | Total Comprehensive Income for the Period, Net of Tax | 515,001 | 381,061 | +35.1% | | Total Comprehensive Income Attributable to Owners of the Company | 510,036 | 377,300 | +35.2% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=InterimCondensedConsolidatedStatementOfFinancialPosition) Total assets increased by **0.4%** to **HKD 9.209 billion**, total equity grew by **3.2%** to **HKD 7.805 billion**, and total liabilities decreased by **12.6%** to **HKD 1.404 billion** Key Data from Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Non-current Assets | 1,499,784 | 1,523,386 | -1.5% | | Total Current Assets | 7,708,931 | 7,646,119 | +0.8% | | Total Assets | 9,208,715 | 9,169,505 | +0.4% | | **Equity** | | | | | Equity Attributable to Owners of the Company | 7,765,647 | 7,530,053 | +3.1% | | Total Equity | 7,805,146 | 7,564,587 | +3.2% | | **Liabilities** | | | | | Total Non-current Liabilities | 95,575 | 89,759 | +6.5% | | Total Current Liabilities | 1,307,994 | 1,515,159 | -13.7% | | Total Liabilities | 1,403,569 | 1,604,918 | -12.6% | | Total Equity and Liabilities | 9,208,715 | 9,169,505 | +0.4% | [Notes to Financial Statements](index=6&type=section&id=NotesToFinancialStatements) This section provides detailed explanations of the accounting policies, segment information, and specific financial items presented in the interim financial statements [General Information](index=6&type=section&id=GeneralInformation) The Group primarily develops and sells electronic payment terminal products and provides related services, with its shares listed on the Hong Kong Stock Exchange since December 20, 2010 - The Group primarily engages in the development and sale of electronic payment terminal products, along with providing maintenance, installation, and payment solution services[9](index=9&type=chunk) - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **December 20, 2010**[10](index=10&type=chunk) [Basis of Preparation](index=6&type=section&id=BasisOfPreparation) The interim condensed consolidated financial information is prepared under HKAS 34 "Interim Financial Reporting" and should be read with the 2024 annual consolidated financial statements - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants[14](index=14&type=chunk) - This interim condensed consolidated financial information should be read in conjunction with the annual consolidated financial statements for the year ended **December 31, 2024**[14](index=14&type=chunk) [Accounting Policies](index=6&type=section&id=AccountingPolicies) Accounting policies align with the 2024 annual consolidated financial statements, with HKFRS 18 expected to broadly impact presentation and disclosure upon its mandatory application from **January 1, 2027** - The accounting policies adopted are consistent with those described in the annual consolidated financial statements for the year ended **December 31, 2024**, except for income tax estimates and the adoption of new and revised standards as set out below[15](index=15&type=chunk) - HKFRS 18 will replace HKAS 1 “Presentation of Financial Statements” and is expected to have a broad impact on presentation and disclosure[17](index=17&type=chunk) - The Group expects to apply the new standard from its mandatory effective date of **January 1, 2027**[17](index=17&type=chunk) [Revenue, Other Income and Other (Losses) / Gains](index=8&type=section&id=RevenueOtherIncomeAndOtherLossesGains) Sales of electronic payment terminals decreased by **10.7%** to **HKD 2.544 billion**, while service revenue grew **4.7%** to **HKD 172 million**, with other income declining due to reduced VAT refunds Details of Revenue, Other Income and Other (Losses) / Gains | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | | | | | Sales of electronic payment terminal products | 2,544,491 | 2,849,245 | -10.7% | | Providing services | 171,673 | 163,996 | +4.7% | | **Total Revenue** | 2,716,164 | 3,013,241 | -9.9% | | **Other Income** | | | | | Interest income | 9,480 | 9,928 | -4.5% | | Government grants | 1,142 | 2,691 | -57.5% | | VAT refunds | 8,011 | 11,426 | -29.9% | | Others | 10,935 | 12,806 | -14.5% | | **Total Other Income** | 29,568 | 36,851 | -19.8% | | **Other (Losses) / Gains** | | | | | Fair value (losses) / gains on investments at fair value through profit or loss | (7,873) | 1,589 | -595.4% | | Fair value loss on contingent consideration | (1,998) | – | N/A | | **Total Other (Losses) / Gains** | (9,871) | 1,589 | -721.2% | [Segment Information](index=9&type=section&id=SegmentInformation) The Group operates in electronic payment terminal solutions, with **HKD 1.811 billion** revenue from Hong Kong and other regions, and **HKD 498 million** from the US, where segment operating loss expanded to **HKD 139 million** - The Group primarily engages in the electronic payment terminal solutions business and considers itself to operate in a single business segment[19](index=19&type=chunk) Revenue from External Customers by Geographical Region (For the Six Months Ended June 30, 2025) | Region | Revenue (HKD Thousands) | | :--- | :--- | | China (excluding Hong Kong, Macau and Taiwan) | 184,447 | | Hong Kong and Others | 1,810,711 | | United States | 498,033 | | Italy | 222,973 | | **Total** | 2,716,164 | Segment Operating Profit / (Loss) by Geographical Region (For the Six Months Ended June 30, 2025) | Region | Operating Profit / (Loss) (HKD Thousands) | | :--- | :--- | | China (excluding Hong Kong, Macau and Taiwan) | 67,121 | | Hong Kong and Others | 326,377 | | United States | (139,660) | | Italy | 5,245 | | Elimination and Corporate Expenses | 211,914 | | **Total** | 470,997 | - For the six months ended **June 30, 2025**, revenue from the largest customer was **HKD 232 million**, accounting for **8.6%** of total revenue, attributable to the Hong Kong business segment[24](index=24&type=chunk) - As of **June 30, 2025**, total non-current assets amounted to **HKD 1.499 billion**, with China (excluding Hong Kong, Macau and Taiwan) accounting for the largest portion at **HKD 1.187 billion**[27](index=27&type=chunk) [Expenses by Nature](index=12&type=section&id=ExpensesByNature) Cost of inventories sold, sales commissions, and net foreign exchange gains decreased, while provision for obsolete inventories and intangible asset amortization significantly increased, with employee benefits and R&D costs remaining stable Details of Expenses by Nature | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 1,327,135 | 1,529,980 | -13.2% | | Provision for obsolete inventories | 62,347 | 4,590 | +1258.3% | | Employee benefit expenses | 404,538 | 392,024 | +3.2% | | R&D costs | 305,174 | 304,219 | +0.3% | | Sales commissions | 60,960 | 74,808 | -18.5% | | Depreciation of property, plant and equipment | 34,811 | 29,197 | +19.2% | | Depreciation of right-of-use assets | 14,098 | 15,268 | -7.6% | | Amortisation of intangible assets | 5,337 | 1,595 | +234.6% | | Net foreign exchange (gains) / losses | (43,385) | 32,273 | -234.5% | | Net impairment loss on financial assets / (net reversal of impairment loss) | 2,761 | (13,623) | -120.3% | [Employee Benefit Expenses](index=13&type=section&id=EmployeeBenefitExpenses) Total employee benefit expenses, including directors' emoluments, increased by **3.2%** to **HKD 405 million**, primarily due to higher wages and salaries Details of Employee Benefit Expenses | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Wages and salaries | 376,269 | 364,481 | +3.2% | | Social security and pension costs | 28,269 | 27,543 | +2.6% | | **Total** | 404,538 | 392,024 | +3.2% | [Income Tax Expense](index=13&type=section&id=IncomeTaxExpense) Total income tax expense decreased by **6.3%** to **HKD 74.6 million**, with a significant drop in China corporate income tax offset by increased Hong Kong profits tax, while R&D tax incentives continue Details of Income Tax Expense | Item | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | China corporate income tax | 27,361 | 69,971 | -60.9% | | Hong Kong profits tax | 36,004 | 20,180 | +78.4% | | Overseas profits tax | 11,597 | 11,389 | +1.8% | | R&D expense tax incentives | (30,946) | (27,632) | +12.0% | | Total current income tax | 44,016 | 74,596 | -41.0% | | Deferred income tax | 30,583 | 4,947 | +518.2% | | **Total Income Tax Expense** | 74,599 | 79,543 | -6.3% | - PAX Computer Technology (Shenzhen) Co., Ltd., as a high-tech enterprise, enjoys a preferential corporate income tax rate of **15%**[31](index=31&type=chunk) - The Group's subsidiaries in China benefit from tax incentives issued by Chinese tax authorities for their R&D expenses, allowing for additional tax deductions up to **100%** of the relevant R&D expenses incurred[34](index=34&type=chunk) [Earnings Per Share](index=14&type=section&id=EarningsPerShare) Basic earnings per share decreased by **13.2%** to **HKD 0.369**, while diluted earnings per share declined by **12.7%** to **HKD 0.363** for the period Basic Earnings Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HKD Thousands) | 390,877 | 454,583 | | Weighted Average Number of Ordinary Shares in Issue (Thousands) | 1,060,685 | 1,070,525 | | **Basic EPS (HKD per share)** | 0.369 | 0.425 | Diluted Earnings Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HKD Thousands) | 390,877 | 454,583 | | Weighted Average Number of Ordinary Shares for Diluted EPS (Thousands) | 1,075,344 | 1,092,547 | | **Diluted EPS (HKD per share)** | 0.363 | 0.416 | [Dividends](index=15&type=section&id=Dividends) The Board declared an interim dividend of **HKD 0.25** per ordinary share for the six months ended June 30, 2025, marking a **4.2%** increase year-on-year - The Board resolved to declare an interim dividend of **HKD 0.25** per ordinary share for the six months ended **June 30, 2025** (for the six months ended June 30, 2024: HKD 0.24 per ordinary share)[37](index=37&type=chunk) [Trade and Other Receivables](index=16&type=section&id=TradeAndOtherReceivables) Total trade and other receivables increased by **8.3%** to **HKD 2.755 billion**, with **HKD 1.368 billion** due within 90 days, and **HKD 9.268 million** in retention receivables from Chinese customers Details of Trade and Other Receivables | Item | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 2,839,136 | 2,625,573 | +8.1% | | Less: Impairment allowance for trade receivables | (85,296) | (81,959) | +4.1% | | Net trade receivables | 2,753,840 | 2,543,614 | +8.3% | | Bills receivable | 673 | 270 | +149.3% | | **Total Trade and Other Receivables** | 2,754,513 | 2,543,884 | +8.3% | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | Amount (HKD Thousands) | | :--- | :--- | | Within 90 days | 1,368,447 | | 91 to 180 days | 488,607 | | 181 to 365 days | 605,099 | | Over 365 days | 376,983 | | **Total** | 2,839,136 | - Trade receivables include retention receivables of **HKD 9.268 million**, representing approximately **2% to 5%** of the total contract value granted to certain customers in China, with retention periods ranging from three to seven years[39](index=39&type=chunk) [Trade and Other Payables](index=17&type=section&id=TradeAndOtherPayables) Total trade and other payables decreased by **11.2%** to **HKD 833 million**, with **HKD 717 million** due within 90 days Details of Trade and Other Payables | Item | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 832,910 | 935,193 | -11.0% | | Amount due to an associate | – | 2,018 | -100.0% | | **Total** | 832,910 | 937,211 | -11.2% | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | Amount (HKD Thousands) | | :--- | :--- | | Within 90 days | 716,651 | | 91 to 180 days | 113,235 | | 181 to 365 days | 3,024 | | **Total** | 832,910 | [Capital Commitments](index=18&type=section&id=CapitalCommitments) Contracted but unrecognized capital commitments for property, plant, and equipment in China decreased by **14.2%** to **HKD 6.962 million** as of June 30, 2025 Details of Capital Commitments | Item | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment in China | 6,962 | 8,110 | -14.2% | [Management Discussion and Analysis](index=19&type=section&id=ManagementDiscussionAndAnalysis) This section provides an overview of the company's financial performance, including revenue, gross profit, expenses, and profit for the period, along with key drivers [Financial Summary: Revenue](index=19&type=section&id=FinancialSummaryRevenue) Total revenue decreased by **9.9%** to **HKD 2.716 billion** due to global economic uncertainty, with LACIS revenue down **36.0%** and USCA revenue up **39.0%** Sales by Geographical Region | Region | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Europe, Middle East and Africa (EMEA) | 1,083,949 | 1,103,965 | -1.8% | | Latin America and CIS (LACIS) | 684,151 | 1,069,814 | -36.0% | | United States and Canada (USCA) | 498,679 | 358,721 | +39.0% | | Asia Pacific (APAC) | 449,385 | 480,741 | -6.5% | | **Total** | 2,716,164 | 3,013,241 | -9.9% | - The decrease in revenue was primarily due to a decline in purchase orders in certain markets during the period, mainly attributable to global economic uncertainty[42](index=42&type=chunk) Sales by Product Category | Product Category | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Sales of electronic payment terminal products | 2,544,491 | 2,849,245 | -10.7% | | Providing services | 171,673 | 163,996 | +4.7% | | **Total** | 2,716,164 | 3,013,241 | -9.9% | - The increase in revenue from providing services was mainly due to the growing demand for SaaS (Software-as-a-Service) solutions[45](index=45&type=chunk) [Financial Summary: Gross Profit Margin](index=21&type=section&id=FinancialSummaryGrossProfitMargin) Gross profit margin remained stable at **46.9%** for the six months ended June 30, 2025, consistent with **46.8%** in the prior period - The gross profit margin remained relatively stable at **46.9%** and **46.8%** for the six months ended **June 30, 2025**, and **June 30, 2024**, respectively[46](index=46&type=chunk) [Financial Summary: Other Income](index=21&type=section&id=FinancialSummaryOtherIncome) Other income decreased by **19.8%** to **HKD 29.6 million**, primarily attributed to a reduction in VAT refunds - Other income decreased by **19.8%** from **HKD 36.9 million** for the six months ended **June 30, 2024**, to **HKD 29.6 million** for the six months ended **June 30, 2025**, mainly due to reduced VAT refunds[47](index=47&type=chunk) [Financial Summary: Selling Expenses](index=21&type=section&id=FinancialSummarySellingExpenses) Selling expenses decreased by **12.8%** to **HKD 303 million**, primarily due to lower sales commissions and reduced transportation costs for delivered goods - Selling expenses decreased by **12.8%** from **HKD 347.0 million** for the six months ended **June 30, 2024**, to **HKD 302.7 million** for the six months ended **June 30, 2025**, primarily due to a decrease in sales commissions and transportation costs for delivered goods[48](index=48&type=chunk) [Financial Summary: Administrative Expenses](index=21&type=section&id=FinancialSummaryAdministrativeExpenses) Administrative expenses decreased by **10.6%** to **HKD 516 million**, mainly due to favorable foreign exchange movements, partially offset by increased employee benefits and other expenses - Administrative expenses decreased by **10.6%** from **HKD 576.8 million** for the six months ended **June 30, 2024**, to **HKD 515.8 million** for the six months ended **June 30, 2025**, primarily due to favorable foreign exchange movements (e.g., JPY, EUR, and RMB), partially offset by increased employee benefits and other expenses[49](index=49&type=chunk) [Financial Summary: Net Impairment Loss on Financial Assets / Net Reversal of Impairment Loss](index=21&type=section&id=FinancialSummaryImpairmentLossOnFinancialAssets) A net impairment loss of **HKD 2.8 million** on financial assets was recognized, contrasting with a net reversal of **HKD 13.6 million** in the prior period - The Group recognized a net impairment loss on financial assets of **HKD 2.8 million** and a net reversal of impairment loss on financial assets of **HKD 13.6 million** for the six months ended **June 30, 2025**, and **June 30, 2024**, respectively[50](index=50&type=chunk) [Financial Summary: Profit for the Period and Profit Attributable to Owners of the Company](index=21&type=section&id=FinancialSummaryProfitForThePeriodAndProfitAttributableToOwners) Profit for the period decreased by **14.9%** to **HKD 391 million**, and profit attributable to owners declined by **14.0%** to **HKD 391 million**, influenced by various factors - Profit for the period was **HKD 391.4 million**, a **14.9%** decrease compared to **HKD 459.8 million** for the six months ended **June 30, 2024**[51](index=51&type=chunk) - Profit attributable to owners of the company decreased by **14.0%** from **HKD 454.6 million** for the six months ended **June 30, 2024**, to **HKD 390.9 million** for the six months ended **June 30, 2025**[51](index=51&type=chunk) [Business Review and Industry Trends](index=22&type=section&id=BusinessReviewAndIndustryTrends) This section reviews the company's market performance, industry trends, product development, and strategic initiatives across various geographical regions [Market Analysis and Industry Trends](index=22&type=section&id=MarketAnalysisAndIndustryTrends) Rapid growth in digital payments and blockchain, supported by favorable policies, creates opportunities for the payment terminal industry, with the company maintaining a **46.9%** gross profit margin and **14.4%** net profit margin - The increasing popularity of digital payments, new opportunities from blockchain technology, and favorable policy environments (e.g., the US GENIUS Act and Hong Kong's Stablecoin Ordinance) are driving payment market development[52](index=52&type=chunk) - The Group actively seizes industry development opportunities, with PAX payment terminals now supporting emerging payment methods like stablecoins in multiple regions worldwide[52](index=52&type=chunk) - The Group's gross profit margin remained stable at **46.9%**, with profit for the period reaching **HKD 391.4 million** and a net profit margin of **14.4%**[52](index=52&type=chunk) [Leading Global Payment Security Standards, Setting New Industry Benchmarks](index=22&type=section&id=LeadingGlobalPaymentSecurityStandards) PAX was re-elected to the PCI SSC Board of Advisors as the sole Asian payment terminal vendor, with its A920Pro and A77 Android MiniPOS achieving significant security certifications, reinforcing its leadership in payment security - PAX was re-elected to the Payment Card Industry Security Standards Council (PCI SSC) Board of Advisors, becoming the only Asian payment terminal vendor among over sixty global companies[53](index=53&type=chunk) - The A920Pro smart terminal successfully passed **EMVCo C-8 certification**, laying the foundation for the industry's transition to next-generation contactless standards[53](index=53&type=chunk) - The A77 Android MiniPOS became the world's first payment terminal to receive **PCI PTS POI v7.0 certification**, the highest security specification for PIN entry devices[53](index=53&type=chunk) [Promoting Global Adoption of Android Smart Payment Terminals, Expanding Diverse Application Scenarios](index=23&type=section&id=PromotingGlobalAdoptionOfAndroidSmartPaymentTerminals) The company is expanding Android smart payment terminal adoption across diverse sectors, with Android products contributing over **65%** of the Group's total revenue during the period - PAX smart payment terminals are widely applied across various key industry scenarios, including retail, catering, fast-food chains, transportation, vending machines, theme parks, tourist hotspots, and electric vehicle charging stations[55](index=55&type=chunk) - During the period, Android products accounted for over **65%** of the Group's total revenue[55](index=55&type=chunk) [SaaS Ecosystem Expansion](index=23&type=section&id=SaaSEcosystemExpansion) The company continues investing in its MAXSTORE SaaS solution, which now supports **15 million** connected terminals and offers over **16,000** diverse applications as of June 30, 2025 - As of **June 30, 2025**, the MAXSTORE platform has reached a milestone of **15 million** connected terminals[56](index=56&type=chunk) - The MAXSTORE platform offers over **16,000** diverse applications[56](index=56&type=chunk) [Regional Analysis](index=23&type=section&id=RegionalAnalysis) EMEA sales reached **HKD 1.084 billion**, remaining the largest contributor, while LACIS faced pressure, USCA sales grew **39.0%**, and APAC saw Japan sales double with Australia's RKI service gaining PCI PIN certification - EMEA region sales reached **HKD 1,083.9 million**, consistently remaining PAX's largest sales contributor, with significant sales contributions from key markets such as Italy, the United Kingdom, and France[57](index=57&type=chunk) - The LACIS region faced some sales pressure, particularly in the Brazilian market, but achieved significant sales growth in Panama[58](index=58&type=chunk) - USCA market sales increased by **39.0%** year-on-year, with further penetration of flagship payment products and significant progress in expanding the Android Commercial POS (EPOS) market[59](index=59&type=chunk) - Japan sales in the APAC region doubled, with the A8700 smart payment terminal being massively deployed by one of Japan's largest retail chains; Australia's newly established Remote Key Injection (RKI) service successfully obtained **PCI PIN certification**[60](index=60&type=chunk) [Seizing Stablecoin Opportunities](index=25&type=section&id=SeizingStablecoinOpportunities) The company will actively embrace emerging stablecoin payment methods, leveraging its global network and SaaS ecosystem to capitalize on new opportunities as the policy environment matures - **2025** is hailed as the inaugural year for stablecoin payments, with the implementation of the US GENIUS Act and Hong Kong's Stablecoin Ordinance signaling a new landscape for the payment market[62](index=62&type=chunk) - PAX will actively embrace emerging digital currency payment methods, providing more diversified, secure, and efficient payment solutions for global merchants[62](index=62&type=chunk) [Optimizing Payment Terminal Product Line, Focusing on High-Potential Android Models](index=25&type=section&id=OptimizingPaymentTerminalProductLine) To enhance competitiveness, the company will streamline its payment terminal product line, focusing resources on high-demand Android models to strengthen brand influence and improve efficiency - The Group will streamline its payment terminal product line, concentrating resources on high-demand and high-value Android models to strengthen brand influence[63](index=63&type=chunk) [Strengthening SaaS Ecosystem, Enhancing Value-Added Service Capabilities](index=25&type=section&id=StrengtheningSaaSEcosystem) The company is actively building a comprehensive SaaS ecosystem, including AirViewer, GoInsight, Cyberlab, and PCI-certified RKI services, with plans to integrate AI technology for enhanced intelligent support and data application - The Group is actively building a comprehensive SaaS ecosystem, including value-added services such as remote assistance AirViewer, big data analytics GoInsight, cloud payment application testing platform Cyberlab, and PCI-certified RKI (Remote Key Injection)[64](index=64&type=chunk) - PAX is also accelerating the integration of Artificial Intelligence (AI) technology to enhance intelligent support and data application capabilities, laying a solid foundation for building next-generation smart payment infrastructure[64](index=64&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=LiquidityAndFinancialResources) This section details the Group's cash position, capital structure, and management of foreign exchange risk [Liquidity and Financial Resources Overview](index=26&type=section&id=LiquidityAndFinancialResourcesOverview) As of June 30, 2025, the Group held **HKD 2.976 billion** in cash and equivalents with no borrowings, net current assets increased to **HKD 6.401 billion**, but net cash from operations decreased by **64.3%** to **HKD 154 million** Key Data on Liquidity and Financial Resources | Metric | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 2,976,100 | 3,083,600 | -3.5% | | Short-term bank deposits | 165,800 | 162,500 | +2.0% | | Net current assets | 6,400,900 | 6,131,000 | +4.4% | | Net cash generated from operating activities (For the six months ended June 30) | 153,700 | 430,700 | -64.3% | - As of **June 30, 2025**, the Group had no borrowings, thus the gearing ratio is not applicable[65](index=65&type=chunk) [Capital Structure and Pledging Details](index=26&type=section&id=CapitalStructureAndPledgingDetails) As of June 30, 2025, the Group had no significant borrowings or pledged assets, with cash and equivalents primarily denominated in RMB, USD, and HKD - As of **June 30, 2025**, the Group had no significant borrowings or bank credit facilities, and no assets were pledged[66](index=66&type=chunk) Cash and Cash Equivalents by Currency Denomination | Currency | June 30, 2025 (HKD Thousands) | December 31, 2024 (HKD Thousands) | | :--- | :--- | :--- | | RMB | 2,133,922 | 1,726,723 | | USD | 589,405 | 982,728 | | HKD | 76,001 | 138,012 | | EUR | 74,367 | 113,772 | | INR | 48,738 | 53,517 | | JPY | 37,415 | 36,171 | | Others | 16,210 | 32,675 | | **Total** | 2,976,058 | 3,083,598 | [Exchange Rate Risk](index=27&type=section&id=ExchangeRateRisk) The Group's financial items are primarily denominated in RMB, HKD, USD, EUR, INR, and JPY, with management monitoring exchange rates and deeming USD-related foreign exchange risk not significant - The Group's revenue, purchases, and expenses are primarily denominated in RMB, HKD, USD, EUR, INR, and JPY[70](index=70&type=chunk) - Currently, the Group has not entered into any agreements or purchased instruments to hedge most of its exchange rate risk[70](index=70&type=chunk) - Management considers the foreign exchange risk related to USD not significant, as HKD is pegged to USD[70](index=70&type=chunk) [Other Significant Information](index=27&type=section&id=OtherSignificantInformation) This section covers human resources, dividend declarations, share repurchases, corporate governance practices, and the audit committee's review of interim results [Human Resources and Remuneration Policy](index=27&type=section&id=HumanResourcesAndRemunerationPolicy) As of June 30, 2025, the Group had **1,500** employees, with **882** in R&D, and offers comprehensive remuneration including fixed salaries, bonuses, share options, and training subsidies Number of Employees by Function | Function | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Management | 12 | 12 | | Sales, After-sales Service and Marketing | 284 | 292 | | R&D | 882 | 881 | | Quality Control | 87 | 89 | | Administration and Human Resources | 91 | 93 | | Accounting | 43 | 41 | | Production, Procurement and Inventory Control | 101 | 101 | | **Total** | 1,500 | 1,509 | - The Group ensures its remuneration packages are comprehensive and attractive, including fixed directors' emoluments, discretionary bonuses, share options, and external training subsidies[74](index=74&type=chunk) [Interim Dividend and Closure of Register of Members](index=28&type=section&id=InterimDividendAndClosureOfRegisterOfMembers) The Board declared an interim dividend of **HKD 0.25** per ordinary share for the six months ended June 30, 2025, with share transfer registration suspended from **September 9 to September 11, 2025**, to determine dividend entitlements - The Board resolved on **September 25, 2025**, to declare an interim dividend of **HKD 0.25** per ordinary share for the six months ended **June 30, 2025**, payable to shareholders whose names appear on the company's register of members at the close of business on **September 11, 2025**[76](index=76&type=chunk) - To determine shareholders' entitlement to the interim dividend, the company's share transfer registration will be suspended from **Tuesday, September 9, 2025**, to **Thursday, September 11, 2025** (both days inclusive)[77](index=77&type=chunk) [Purchase, Sale or Redemption of Shares](index=29&type=section&id=PurchaseSaleOrRedemptionOfShares) For the six months ended June 30, 2025, the company repurchased **2,162,000** ordinary shares for **HKD 9,863,740**, believing it to be in the best interest of the company and shareholders, with all repurchased shares cancelled - For the six months ended **June 30, 2025**, the company repurchased a total of **2,162,000** ordinary shares for a total consideration of **HKD 9,863,740**[78](index=78&type=chunk) - The Board believes that the share repurchases are in the best interests of the company and its shareholders, and can enhance the company's net asset value per share and/or earnings per share[78](index=78&type=chunk) - As of the date of this announcement, all the aforementioned repurchased shares have been cancelled[78](index=78&type=chunk) [Corporate Governance Practices](index=30&type=section&id=CorporateGovernancePractices) The company adheres to the Corporate Governance Code, with the CEO also serving as Chairman, a deviation from C.2.1, which the Board believes enhances strategy execution and operational efficiency - The company's corporate governance practices are based on the principles and code provisions of good corporate governance as set out in Appendix C1 of the Listing Rules[82](index=82&type=chunk) - Following the appointment of Mr. Nie Guoming as Chief Executive Officer (effective **July 3, 2025**), he also serves as the Chairman of the Board and Chief Executive Officer, which deviates from code provision C.2.1 of the Corporate Governance Code[83](index=83&type=chunk) - The Board believes that combining the roles of Chairman of the Board and Chief Executive Officer in the same person facilitates the execution of the Group's business strategies and enhances its operational efficiency[83](index=83&type=chunk) [Audit Committee Review of Interim Results](index=30&type=section&id=AuditCommitteeReviewOfInterimResults) The Audit Committee reviewed the Group's accounting principles, risk management, internal controls, and financial reporting, including the unaudited interim condensed consolidated financial information for the six months ended June 30, 2025 - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management, and discussed risk management, internal control, and financial reporting matters with the Directors[84](index=84&type=chunk)

(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]