Net profit margin for the Year was 20.7%, a minimal decline compared to 21.6% for the year ended in 2015. As of 31 December 2016, the Group maintained a strong financial position, with cash and short-term bank deposits of HK$ 2,207.2 million and net working capital of HK$ 3,295.0 million.
In terms of merger & acquisition (“M&A”) activity during the Year,
- At the end of 2016, PAX entered into an acquisition and subscription agreement with CSC Italia S.c.a.r.l., one of the largest local service providers for the installation and maintenance of E-payment Terminals and other electronic equipment in Italy. The expected completion of the acquisition will further strengthen the Group’s capacity to provide installation and maintenance services to key customers and will consolidate PAX’s market position in Italy.
- Following the acquisition of Nanchang Kashuo Information Technology Company Limited (“Kashuo”), the Group began offering value-added solution services in China. This diversification of the Group’s payment services helped boost service revenue to 5.4% of the Group’s overall revenue.
Mr. Jack LU, Chief Executive Officer of PAX, commented, “PAX will continue to strengthen its role in the global payment industry value chain and will strive to enrich and diversify its revenue model. With our comprehensive portfolio of E-payment Terminals, our superb technical support services, and by leveraging Kashuo and our new ‘smart’ E-payment Terminal line, PAX will continue to gain better insights into consumer spending patterns, which in turn will allow us to explore the possibilities of implementing big data solutions so that we can provide even more added value to merchants worldwide. In international and domestic markets, PAX management will dedicate more resources into ensuring the development of value-added solutions and services. We also continue to proactively explore merger and acquisition opportunities and other strategic partnerships to provide enhanced value to both customers and shareholders.”