PAX Global announces profit alert
PAX Global Technology Limited (“PAX”, HKSE stock code: 00327.HK), one of the world’s leading providers of electronic payment terminal solutions and related services, is pleased to announce that based on the preliminary assessment by the Board of the unaudited consolidated management accounts of the Group and the information currently available to the Board, the Group is expected to record an increase of not less than 40% in net profit for the financial year ending 31 December 2020 (the “Reporting Period”) as compared to HK$625 million for the financial year ended 31 December 2019.
In the second half of the year, there has been a surging market demand for our products primarily driven by partial recovery of the electronic payment terminals industry and the accelerating cashless initiatives globally.
The Board considers that the expected increase in net profit is mainly attributable to the following factors:
(i) Overseas markets have recorded strong revenue growth in the second half of the year, in particular the Latin America and the Commonwealth of Independent States (LACIS) region, the Europe, Middle East and Africa (EMEA) region and the United States of America and Canada (USCA) region
(ii) Android solutions have gained popularity across the globe. The increased shipment and sales proportion to the Group’s revenue attributable to Android solutions have also improved the Group’s gross profit margin.
Information contained in this announcement is based on the preliminary review by the Board of the unaudited consolidated management accounts of the Group which has not been reviewed nor audited by the auditor of the Company and the information currently available to the Board which has not been discussed with the auditor of the Company. Further details and the financial results of the Group for the Reporting Period will be disclosed when the Group publishes its annual results which is expected to be released in March 2021.
For more information, please refer to the announcement.