The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company and potential investors 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 20% in net profit for the financial year ending 31 December 2019 (the "Reporting Period") as compared to HK$515 million for the financial year ended 31 December 2018, notwithstanding the share option expense of approximately HK$39 million arising from the share options granted by the Company in October 2019 and expected to be recorded in the Reporting Period.
The Board considers that the expected increase in net profit is mainly attributable to the increase in revenue generated from overseas markets primarily driven by the increase in market share in the Asia Pacific region (except for Mainland China) and the Europe, Middle East and Africa region and the successful launch of Android-based payment terminals solutions in certain countries, coupled with improvement in the gross profit margins.
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 2020.
Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.
By Order of the Board
PAX Global Technology Limited
Cheung Shi Yeung
Hong Kong, 30 December 2019
As at the date of this announcement, the Board comprises three executive directors, namely Mr. Nie Guoming, Mr. Lu Jie and Mr. Li Wenjin and three independent non-executive directors, namely Mr. Yip Wai Ming, Dr. Wu Min and Mr. Man Kwok Kuen, Charles.