Pax Global Technology Limited · HKEX:327
Pax Global Technology — H1 2020 Earnings Presentation
14 slides from Pax Global Technology's earnings presentation, 2020
Slide 1: PAX Global Technology Limited (327.HK) 2020 Interim results
PAX Global Technology Limited (327.HK) 2020 Interim results 1
Slide 2: Disclaimer
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 thi
Slide 3: Agenda
Agenda ❖ 2020 Interim results snapshot ❖ Opportunities amidst COVID-19 ❖ Strong growth driver - Android SmartPOS ❖ Regional performance 3 PAX Global Technology Limited (327.HK) – 2020 Interim results
Slide 4: 2020 Interim results snapshot
2020 Interim results snapshot Revenue +7.4% HK$ 2,541 million Gross profit Gross profit margin +15.6% HK$ 1,057 million +3.0pts 41.6% (2019 1H: 38.6%) Operating profit Operating profit margin +17.8% HK$ 437 million +1.5pts 17.2% (2019 1H:15.7%) Profit attributable to the owners of the Company +18.0%
Slide 5: 2020 Interim results snapshot - key one-off expenses
2020 Interim results snapshot - key one-off expenses Share option expenses (2019 share option scheme) - HK$ 23 million • Expected 2020 full year expense: ~ HK$ 38 million • Expected 2021 expense: ~ HK$13 million Net impairment loss on financial assets (individual basis) - HK$ 23 million • Certain cu
Slide 6: Interim results snapshot – corporate actions
Interim results snapshot – corporate actions Shares buyback Cash dividend 8 times +75% ▪ Jan - Jun 2020 Proposed interim dividend of ▪ Repurchased 17.3 million shares (1.6% of outstanding shares) HK$ 7cents per share ▪ Total amount of HK$ 64.6 million 6 PAX Global Technology Limited (327.HK) – 2020
Slide 7: Opportunities amidst COVID-19
Opportunities amidst COVID-19 Cashless society accelerates ▪ Governments encourage in-store electronic payments, driving the demand of payment terminals ▪ According to Visa and Mastercard, offline contactless payments increased dramatically since the onset of COVID- 19 Consumer behavior changes ▪ Th
Slide 8: Strong growth driver - Android SmartPOS solutions
Strong growth driver - Android SmartPOS solutions ▪ PAX’s Android smart terminal connects to PAXSTORE, the SaaS cloud-based application platform, carrying a library of industry value-added applications ▪ Deployment across the United States, Europe and Asia Pacific markets >650M >25% 15+ A920 Revenue
Slide 9: Overseas markets: robust growth continues
Overseas markets: robust growth continues HK$ 2,381M (+7.9% yoy) Accounted for 93.7% of the Group’s revenue LACIS region • Brazilian fintech industry has boomed in the recent years. PAX is cautiously optimistic about the prospects of electronic payment in Brazil USCA HK$ +35% 225 M EMEA HK$ • PAX la
Slide 10: Overseas markets: robust growth continues
Overseas markets: robust growth continues HK$ 2,381M (+7.9% yoy) Accounted for 93.7% of the Group’s revenue APAC region • In Japan and India: PAX succeeded in capturing more market share, thanks to strategic cooperation with leading acquiring banks and payment service providers USCA HK$ • Digital tr
Slide 11: Investor relations contacts
Investor relations contacts ▪ Calvin Pei, Assistant Vice President - Corporate Finance & Strategy ▪ Mina Pang, Investor Relation Manager Email: ir@pax.com.hk Tel: +852 2500 8510 11
Slide 12: Appendix: financial summary
Appendix: financial summary Six months ended 30 June Income statement 2020 2019 HK$’ 000 HK$’ 000 Revenue 2,540,779 2,366,261 Cost of sales (1,484,048) (1,451,822) Gross profit 1,056,731 914,439 Other income 44,853 32,196 Other (losses)/gains, net (3,691) 7,718 Selling expenses (236,865) (227,040) A
Slide 13: Appendix: condensed consolidated balance sheet
Appendix: condensed consolidated balance sheet At 30 Jun At 31 Dec 2020 2019 HK$’ 000 HK$’ 000 Non-current assets 535,906 522,520 Property, plant and equipment 75,189 69,610 Others 460,717 452,910 Current assets 6,251,023 6,196,703 Cash and cash equivalents 2,983,600 3,230,005 Trade and bills receiv
Slide 14: Appendix: working capital
Appendix: working capital At 30 Jun 2020 At 31 Dec 2019 At 30 Jun 2019 HK$ ‘000 HK$ ‘000 HK$ ‘000 Trade and bills receivables 1,737,000 1,513,374 2,090,407 Inventories 1,282,235 1,301,459 1,217,279 Trade and bills payables 1,367,623 1,382,487 1,610,925 Cash and cash equivalents 2,983,600 3,230,005 2
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