Slide 1: PAX Global Technology Limited 2020 annual results
PAX Global Technology Limited (327.HK) 2020 annual 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 annual results highlights & snapshot ❖ Diversified product lines 3 PAX Global Technology Limited (327.HK) – 2020 annual results
Slide 4: 2020 annual results – five key highlights
2020 annual results – five key highlights 40%+ Record-high Record-high Outperformed Continued Strong revenue profit for the year financial corporate contribution from targets actions Android POS Revenue: Profit for the year: Proposed final dividend: Revenue contribution: HK$ 5,651 million HK$ 904 mi
Slide 5: 2020 annual results - snapshot
2020 annual results - snapshot +14.7% Revenue: HK$ 5,651 million (FY 2019: HK$ 4,926 million) +44.3% +1.9 pts Gross profit margin: 41.4% (FY 2019: 39.5%) +3.4 pts Operating profit margin : 18.9% Profit attributable to the (FY 2019: 15.5%) owners of the Company HK$ 900 million Net profit margin: 16.0
Slide 6: 2020 annual results – corporate actions
2020 annual results – corporate actions Final dividend Special dividend Share buyback (Dec 2020) 10 HK cents 10 HK cents 12 times (+ 67% yoy) To celebrate PAX’s 10th listing • 20 million shares anniversary (1.8% of outstanding shares) • Total amount of HK$ 78 million Payout ratio: 21% Payout ratio:
Slide 7: 2020 annual results – other financial items
2020 annual results – other financial items R&D expenses Net impairment losses on financial assets (individual basis) • HK$ 461 million (+16% yoy) • HK$ 51 million • Speeded up the R&D process of Android products and certification • Mainly from customers in the United States • Increased investment
Slide 8: 2020 annual results – working capital
2020 annual results – working capital As at 31 December HK$ ‘000 2020 2019 +/- Trade and bills receivables 1,434,253 1,513,374 - 5% Inventories 1,629,901 1,301,459 + 25% Trade and bills payables 1,371,267 1,382,487 - 1% Cash and cash equivalents 3,802,741 3,230,005 + 18% Turnover days As at 31 Decem
Slide 9: Overseas markets: robust growth continues
Overseas markets: robust growth continues HK$ 5,327 M (+18% yoy) Overseas business: 94% of the Group’s revenue LACIS region 10+ million units shipment • Brazil’s fintech maintained robust growth, PAX continues its leading position of the local electronic payment terminal brand • Sales of the Android
Slide 10: Overseas markets: robust growth continues
Overseas markets: robust growth continues HK$ 5,327 M (+18% yoy) Overseas business: 94% of the Group’s revenue APAC region 10+ million units shipment • In India, growing demand for the Group’s full range of Android payment products. • In Japan, PAX enhanced penetration among chain USCA HK$ convenien
Slide 11: Diversified product lines
Diversified product lines 11 PAX Global Technology Limited (327.HK) – 2020 Annual results
Slide 12: Diversified product lines
Diversified product lines Go beyond payment Focus on Develop Provide first-class four hardware software integrated portfolios applications solutions 12 PAX Global Technology Limited (327.HK) – 2020 annual results
Slide 13: Hardware product portfolios - retail solutions
Hardware product portfolios - retail solutions Go beyond payment • Android POS covers all market segments • Traditional POS continues to lead the way and innovate Android POS Traditional POS Mobile POS A910 A920Pro A930 A50 A77 Q92 Q60 D190 D199 Desktop POS A800 A80 Q80 PINpad & Multilane AR8 AR6 A3
Slide 14: Hardware product portfolios - unattended solutions
Hardware product portfolios - unattended solutions Go beyond payment • The leader of self-service payment terminal solutions • Integration of self-developed of innovative software (VendLink, VendStore), hardware and third- party self-service devices • Growing market demand for unattended solutions I
Slide 15: Hardware product portfolios – commercial solutions
Hardware product portfolios – commercial solutions Go beyond payment Customize business models and strategies, provide a series of terminals to different business operations • Android smart ECR solutions (E series) • Unattended self-service solutions (SK series) • Smart industrial solutions (PDA ser
Slide 16: Hardware product portfolios – PAYphone & tablet solutions
Hardware product portfolios – PAYphone & tablet solutions Go beyond payment • Support a variety of commercial and personal Apps • Accept physical card payment • Meet the needs of brick-and-mortar businesses and self-employed businesses PAYPhone PAYTablet M50 (prototype, expect to launch in 2021) M8
Slide 17: Software applications – cloud platform and solutions
Software applications – cloud platform and solutions Go beyond payment Business synergies for PAX: (i) PAX’s cloud platform and solutions & (ii) over 10 million annual hardware shipment WatcherCenter PAXSTORE Secure operation and maintenance backend system Management and application portal platform
Slide 18: SaaS platform - PAXSTORE
SaaS platform - PAXSTORE Remote Automatic terminal configuration management of terminal system Partners/ Acquirers Brand Data customization analysis Message Merchant delivery APP developers solutions Merchants 18 18 PAX Global Technology Limited (327.HK) – 2020 Annual results
Slide 19: Growing PAXSTORE ecosystem
Growing PAXSTORE ecosystem 2,310,000 Revenue contribution in FY 2020 1,975,000 HK$ 10 M+ 1,426,000 2,300,000+ 80+ 4,938 1,079,000 4,617 871,000 4,105 Connected terminals Countries 630,000 3,547 3,243 2,800 2,100+ 4,900+ 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Feb Application Online developers a
Slide 20: Universal terminal management platform
Universal terminal Innovative Evolving management platform industry solutions service ecosystem 20
Slide 21: PAXSTORE FY2023 targets
SaaS cloud-based app platform Targets PAXSTORE - target FY2023 targets - PAXSTORE and other software solutions Annual Accumulated revenue contribution connected terminals HK$ 100 million 10 million units PAXSTORE PAX Global Technology Limited (327.HK) – 2020 annual results 21
Slide 22: 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 22
Slide 23: Appendix: financial summary
Appendix: financial summary Year ended 31 December Income statement 2020 2019 HK$’ 000 HK$’ 000 Revenue 5,650,619 4,925,733 Cost of sales (3,313,310) (2,980,900) Gross profit 2,337,309 1,944,833 Other income 77,838 79,056 Other (losses)/gains, net (2,115) 12,774 Selling expenses (499,321) (465,657)
Slide 24: Appendix: condensed consolidated balance sheet
Appendix: condensed consolidated balance sheet As at 31 December 2020 2019 HK$’ 000 HK$’ 000 Non-current assets 681,943 522,520 Property, plant and equipment 129,240 69,610 Others 552,703 452,910 Current assets 6,955,116 6,196,703 Cash and cash equivalents 3,802,741 3,230,005 Trade and bills receiva