2021 Financial Results Announcement
Android SmartPOS demand grew by almost 80%, while revenue increased by over 27%, gross profit was up 21%
X Global Technology Limited (“PAX” or the “Company” or the “Group”, HKSE stock code: 00327.HK), one of the world’s leading providers of electronic payment terminal (“E-payment terminal”) solutions and related services, is pleased to announce the audited annual results for the year ended 31 December 2021.
Strong demand by acquirers and merchant service providers for PAX Technology’s innovative Android SmartPOS solutions helped contribute to yet another year of stellar performance for the company.
PAX shipped over 12 million EMV PCI certified payment terminals worldwide, generating a sales revenue increase of 27% to circa USD 920 million (official numbers are reported in Hong Kong dollars, so US dollar figures are indicative for ease of comprehension), of which Android SmartPOS devices represented a 45% share, or circa USD 414 million, a year on year increase of 77.5%. The PAXSTORE device management & software delivery platform continued to be valued by customers, generating a 193% increase in service revenues to circa USD 5.5 million.
From a sales growth perspective, the top performing regions were the United States of America & Canada (“USCA”) and Europe, the Middle East, and Africa (“EMEA”), where revenues increased by 56% and 48.3%, generating over USD 100 million and USD 240 million respectively. Latin America and the Commonwealth of Independent States (“LACIS”) and Asia Pacific (“APAC”) grew by 19.4% and 10.4%, generating over USD 415 million and USD 162 million respectively.
Strong growth driven by Android SmartPOS & PAXSTORE value-added services
PAXSTORE continues to experience phenomenal growth since its launch in 2019, as more acquirers and merchant service providers appreciate the operational efficiencies and new revenue opportunities the cloud-based platform helps deliver for their businesses. Today, PAXSTORE connects more than 5 million Android SmartPOS with over 6,000 software apps.
PAX Technology is focused on delivering a modern smartphone-like SmartPOS product roadmap powered by Android. The company’s strong R&D capabilities enable it to launch many new products, ranging from multilane to unattended and desktop to mobile solutions. Notably, these now include the new M-series portfolio currently comprising of the PayPhone models M30 and M50 - the world's first smartphones with card acceptance features - and the M8 PayTablet.
“The challenges brought by the pandemic are forcing the retail and catering industries to embrace a digital-first mindset. PAX will remain devoted to the value creation strategy, leveraging our leading position in Android smart payment terminal with technology innovation to enable merchants all over the world via the acquiring banks, PSPs, and ISOs to explore more business opportunities and improve operational efficiencies.” - Mr. Jack LU, Chief Executive Officer of PAX.
Europe, the Middle East, and Africa (EMEA)
In Europe, the Middle East, and Africa, large-scale deployments of Android smart payment terminals are underway. PAX has been achieving success in numerous markets with its A-series Android portfolio, driving remarkable sales growth of 48.3% in the region.
In Europe, thanks to the high demand for PAX Android products and the PAXSTORE platform, the Group has gained more market share in Italy, the United Kingdom, Germany, Poland, France, and Greece. The Group achieved breakthroughs in niche sectors such as unattended self-service, multilane retail, and transportation.
In the Middle East and Africa, PAX continued to strongly dominate in Saudi Arabia and Egypt and achieved significant sales growth in 2021. More market share was achieved as acquiring banks in the GCC (Gulf Cooperation Council) countries and North Africa began deployment of Android smart terminals. Nigeria continued to be a fast-growing market for PAX, while the Group also explored new partnerships with some major acquiring banks and PSPs in South Africa and neighboring countries.
Latin America and the Commonwealth of Independent States (LACIS)
In the LACIS region, PAX continued to lead the market with its innovative product portfolio. Latin America is one of the fastest-growing mobile payment markets in the world. In particular, the instant payment system, PIX, launched by the Central Bank of Brazil has swiftly gained popularity and PAX payment terminals fully support the PIX payment method. During the year, PAX successfully launched the world’s first Android PayPhone M30 in Brazil.
In Argentina, PAX achieved high growth during the year by partnering with more PSPs and ISOs. The Group has also continued to strengthen investment and sales efforts in other promising markets such as Mexico and Chile.
Asia Pacific (APAC)
In India, PAX successfully established itself as the leading brand for electronic payment terminals in just a few years, becoming an important growth engine for the Group in the APAC region. Fueled by the digital payment measures of the Central Bank of India, demand for PAX products by local acquiring banks and PSPs was particularly high during the year and the full range of the PAX Android portfolio continued to gain traction in India.
In other fast-growing APAC markets, in particular South Korea, Malaysia, and Thailand, PAX achieved decent growth and continued to invest in sales channel expansion and local product certifications.
The United States of America and Canada (USCA)
In the United States and Canada, the adoption of contactless payments by merchants continues to accelerate amid the pandemic, fueling strong market demand for payment terminals. PAX became the preferred business partner of more acquiring banks, PSPs, and ISOs, and achieved a notable growth of 56.0% to HK$793.1 million in 2021.
PAX holds the distinction of being the first provider to deliver Android smart payment terminals in North America, earning an esteemed reputation for its state-of-the-art payment products in the market. An increasing number of ISOs have deployed PAX terminals across North America. In 2021, sales of Android products significantly grew by more than 80% in this region compared to the year before. North America continues to be a strategic market for the Group. PAX is well positioned and will continue to strategically acquire further market share.