Overall, overseas markets contributed to approximately 56% of the total turnover of the Group
for the Period, compared to 51% for the same period in 2015.
Turnover generated from the People’s Republic of China (excluding Hong Kong, Macau and
Taiwan) (“China Market”) decreased by approximately 7.4% to approximately HK$928.3 million,
as compared to HK$1,002.2 million for the corresponding period in 2015. During the Period, the
drop in the Group’s sales in the China Market was mainly due to Renminbi (“RMB”) depreciation
and the implementation of new debit card and credit card interchange rate payment policies in
China. As the average exchange rate of the RMB to the Hong Kong Dollar (“HK$”) depreciated
by 4.7% during the Period as compared to the corresponding period in 2015, such devaluation
affected the Group’s consolidated revenue that was denominated in HK$. China Market
turnover contributed to approximately 44% of the total turnover of the Group for the Period, as
compared to 49% for the corresponding period in 2015.
Despite the aforesaid effect of RMB depreciation on China Market turnover, RMB depreciation
would however be beneficial to the operation of the Group, especially in the overseas markets,
as most of the cost of sales, selling expenses and administrative expenses (including research
and development expenses) are denominated in RMB.
The Group adopts a merger and acquisition strategy to proactively seek service income in
developed markets and sales channels in major overseas markets, with an aim of becoming the
forerunner in the payment industry. Turnover for a particular quarter is not representative for full year performance as sales of E-payment Terminals is associated with seasonality, policy
changes and the concentration of customers’ order book.