PAX Global Technology Limited reported a robust set of unaudited interim results for the six months ended 30 June 2026, underscored by double-digit top-line growth and stronger profitability despite margin pressure from higher component costs.
Revenue and Profitability • Group revenue rose 15.4% year on year to HK$3.14 billion, with all operating regions contributing to the expansion. • Profit attributable to shareholders surged 32.6% to HK$518.23 million, lifting basic earnings per share to HK$0.488 (1H25: HK$0.369). • Operating profit advanced 26.4% to HK$595.55 million, while profit before tax climbed 27.4% to HK$593.62 million. • Gross profit improved 9.6% to HK$1.39 billion; the gross margin eased to 44.5% from 46.9% a year earlier, reflecting higher raw-material and renminbi costs.
Regional and Product Performance • United States & Canada (USCA) led growth with revenue up 52.0% to HK$758.22 million. • Latin America & CIS gained 15.9% to HK$792.91 million, while EMEA edged 2.2% higher to HK$1.11 billion. Asia-Pacific added 6.2% to HK$477.06 million. • Sales of Android and classic e-payment terminals increased 17.3% to HK$2.98 billion, accounting for 95% of total turnover. Service revenue declined 12.0% to HK$151.03 million.
Costs and Expenses • Research and development expenditure fell 16.6% to HK$254.51 million, aiding a 0.9% reduction in administrative expenses to HK$511.19 million. • Selling expenses decreased 5.3% to HK$286.52 million, helped by lower commissions and staff costs. • A one-off HK$49.96 million goodwill impairment was booked against PAX Technology Australia following weaker-than-expected performance.
Cash Flow and Balance Sheet • Cash and cash equivalents stood at HK$3.91 billion with no borrowings, maintaining a debt-free position. • Net current assets increased 11.9% to HK$7.43 billion; total equity rose 9.7% to HK$8.74 billion. • Operating activities used HK$80.5 million in cash versus an inflow of HK$153.7 million in the prior-year period, reflecting working-capital movements including inventory build-up to mitigate component cost inflation.
Dividend • The board declared an interim dividend of HK$0.08 per share, a 68.0% reduction from HK$0.25 per share in 1H25. The payout totals approximately HK$84.95 million and is payable on 24 September 2026 to shareholders on record as of 10 September 2026.
Operational Highlights and Outlook • Android smart terminals represented 75% of group revenue, reinforcing PAX Global’s strategic focus on Android-based solutions and the MAXSTORE SaaS platform, which now manages over 18 million connected devices. • Management flagged ongoing margin pressure from global memory-chip price spikes linked to AI demand, and is pursuing pricing and mix optimisation to preserve profitability. • Strategic priorities include deepening penetration in North America, Europe and Japan, scaling SaaS offerings, and expanding sector coverage to retail, hospitality, transportation and emerging verticals such as EV charging.
Despite a challenging supply-chain environment, PAX Global’s first-half performance highlights solid demand for its payment solutions and sustained earnings momentum, supported by a strong balance sheet and disciplined cost control.