Pax Global Technology Limited · HKEX:327
Pax Global Technology — H1 2023 Earnings Presentation
18 slides from Pax Global Technology's earnings presentation, 2023
Slide 1: PAX Global Technology Limited 2023 interim results
PAX Global Technology Limited (327.HK) 2023 interim results
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 01 Results snapshot 02 Key developments PAX Global 2023 interim results 3
Slide 4: Results snapshot
Results snapshot PAX Global 2023 interim results 4
Slide 5: PAX achieved solid profit margins
Results snapshot PAX achieved solid profit margins 18.5% 15.2% 15.6% 16.8% Net profit 13.7% margin ( ％ ) Profit for the period 44.0% 660 41.6% 40.0% 40.0% 38.6% Gross profit margin ( ％ ) 4,182 3,569 HK$ million 3,319 2,366 2,541 Revenue (HK$ million) 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 PAX Globa
Slide 6: PAX continues to strengthen shareholder returns
Results snapshot PAX continues to strengthen shareholder returns +24% （HK cents） （Payout ratio) 25 40.0% 34.8% 35.0% Interim dividend 20 26.3% 30.0% 25.5% 2023 H1: 21 HK cents per share 15 25.0% (2022 H1: 17 HK cents per share) 19.8% 20.0% 10 13.5% 15.0% HK$ 43 M+ 10.0% 5 5.0% Repurchases 0 0.0% (20
Slide 7: PAX strategically manages the working capital
Results snapshot PAX strategically manages the working capital At 30 Jun 2023 At 31 Dec 2022 At 30 Jun 2022 HK$ ‘000 HK$ ‘000 HK$ ‘000 Inventories 2,148,231 2,527,293 2,323,030 Trade and bills receivables 2,409,464 2,350,368 2,683,564 Trade payables 1,053,995 1,699,530 1,926,473 Cash and cash equiva
Slide 8: Other financial items analysis
Results snapshot Other financial items analysis Gross profit margin • Decrease in costs due to the RMB depreciation (yoy +400 bps) • Change in geographical sales mix Effective tax rate • Additional tax incentives for R&D (yoy -544 bps) Administrative expenses • Increase in R&D investment (yoy +7.3%)
Slide 9: PAX has a more diversified global footprint
Results snapshot PAX has a more diversified global footprint LACIS EMEA (HK$ 1,371 M) (HK$ 1,156 M) • Strong growth in Chile, Mexico & Argentina • Conservative business sentiment in Brazil 38% • Notable sales in Italy, UK, Turkey, Spain, Germany & France influenced by challenging economic 2023 H1 32
Slide 10: Key developments
Key developments PAX Global 2023 interim results 10
Slide 11: PAX obtains recognition from the global industry standards body
Key developments PAX obtains recognition from the global industry standards body PAX is the first Asian payment terminal provider to join the Payment Card Industry Security Standards Council (PCI SSC) Advisory Board1 As a strategic partner, PAX brings regional & technological insights to PCI SSC Abo
Slide 12: The newly launched commercial POS solutions are making strides
Key developments The newly launched commercial POS solutions are making strides Product design honours Customer recognition EPOS smart business solution honoured with 2023 Stepped into the US market & achieved encouraging Red Dot Award1 & iF Design Award2 sales contribution in 2023 H1 Notes ％ 1) Red
Slide 13: PAX set up a dedicated division Zolon to expand Business IoT
Key developments PAX strategically set up a dedicated division Zolon to expand Business IoT • Provision of Business Internet of Things (BIoT) solutions, including Business model SaaS (e.g. MAXSTORE) & commercial POS solutions • Dedicated division with specialised R&D team & sales team • Objectives ％
Slide 14: PAX SaaS ecosystem continues its expansion
Key developments PAX SaaS ecosystem continues its expansion +84% SaaS solutions revenue 2023 H1: HK$ 46 million (2022 H1: HK$ 25 million) ~10 million MAXSTORE’s connected terminals (as of 30 June 2023 ％ PAX Global 2023 interim results 14
Slide 15: Investor relations contacts
Investor relations contacts Calvin Pei – Vice President Corporate Finance & Strategy Mina Pang – Senior Investor Relations Manager Email: ir@pax.com.hk Tel: +852 2500 8510 PAX Global 2023 interim results 15
Slide 16: PAX is included in the key market indexes
Appendix – market indexes PAX is included in the key market indexes* MSCI Hong Kong Small Cap Index Hang Seng Sub-indexes Composite Industry Index - Composite MidCap & Composite SmallCap Small Cap Information Technology SmallCap Index Index (Investable) Index Market-Cap weighted indexes Stock Connec
Slide 17: Interim condensed consolidated income statement
Appendix – financial summary Interim condensed consolidated income statement Six months ended 30 June 2023 2022 HK$’ 000 HK$’ 000 Revenue 3,568,564 4,182,493 Cost of sales (1,997,647) (2,511,207) Gross profit 1,570,917 1,671,286 Other income 36,076 31,357 Other loss (1,987) (1,252) Selling expenses
Slide 18: Interim condensed consolidated balance sheet
Appendix – financial summary Interim condensed consolidated balance sheet As at 30 Jun As at 31 Dec 2023 2022 HK$’ 000 HK$’ 000 Total non-current assets 1,372,922 1,317,315 Property, plant and equipment 817,877 769,372 Right-of-use assets 217,476 230,567 Others 337,569 317,376 Total current assets 7
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