EFT Solutions announces FY2019 9-month results

Revenue and profit increased by 35.8% and 53.8% respectively

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Financial
Highlights

	9 months ended 31 December
HK$ million	2018	2017	Change
Revenue	94.1	69.3	35.8%
Gross profit	47.7	36.4	31.0%
Profit for the period	18.3	11.9	53.8%
Profit attributable to the owners of the Company	14.0	11.9	17.6%
Basic earnings per share (HK cents)	2.91	2.47	17.8%

 

 

HONG KONG, CHINA - Media OutReach - 13 February 2019 – EFT Solutions Holdings Limited (“the Company“, together with its subsidiaries, the “Group“; Stock Code: 8062) announced its
first nine-month results. For the nine months ended 31 December 2018 (“The Reporting Period“), the Group
recorded revenue of approximately HK$94.1 million which represented an increase
of approximately 35.8% as compared with approximately HK$69.3 million in the
corresponding period in 2017. During the reporting period, the Group recorded
profit of approximately HK$18.3 million, which represented an increase of
approximately 53.8% on a period-to-period basis. It was mainly due to the
increase in the sourcing of EFT-POS terminals and peripheral devices.

 

Business Review

 

During
the Reporting Period, the Group successfully entered into the market of POS
software solution and the embedded system solution services, which enable us to
enlarge the market share of the software solution business and to explore more
business opportunities in payment solutions.

 

For
sourcing of EFT-POS terminals and peripheral devices, revenue of approximately
HK$31.1 million was recognised for Reporting Period which represented a
significant increase of approximately 81.9% as compared to HK$17.1 million in
the corresponding period in 2017 due to increase in number of EFT-POS terminals
sold.

 

For
provision of system support and software solution services, revenue of
approximately HK$63.0 million was recognised for the Reporting Period which
represented an increase of approximately 20.7% as compared to HK$52.2 million
in the corresponding period in 2017 due to increase in number of EFT-POS
terminals covered by our system support services and the increase in provision
of POS software solution services.

 

Gross Profit and Gross
Profit Margin

 

The
overall gross profit for the Reporting Period was approximately HK$47.7 million
(for the    nine months ended 31 December
2017: HK$36.4 million) which represented an increase of approximately 31.0%. The
reason for the increase of gross profit was primarily due to the Group sourced
more EFT-POS terminals and peripheral devices with relatively higher profit
margin to customers in the Reporting Period as compared to that in the
corresponding period. The overall gross profit margin for the Reporting Period
was about 50.7% (for the nine months ended 31 December 2017: 52.5%), which
represented a slightly decrease of about 1.8%.

 

Future
Outlook

 

2018 has been a ground-breaking year for
electronic payment development in Hong Kong. The usage of electronic payments
as a method of settlement has been gaining momentum. The Group believes that
electronic payment development in Hong Kong is on the right track and is
growing at a rapid pace. We expect soaring demand for our payment terminals and
the related payment solutions services.

 

The Group will strive its best effort to
achieve business growth and make contribution in building Hong Kong into a
smart city. The Group aims to further expand our market share and strengthen
our market position in electronic payment and software solution industries by
increasing its capabilities and offering diverse and high quality one-stop
integrated services. Looking ahead, the management of the Group would make
every endeavor to explore more business opportunities in payment solutions so
as to strengthen the Group’s financial position and maintain its growth.

 

Mr. Lo Chun Kit Andrew, Chairman,
Chief Executive Officer and Executive Director of the Group said, “The launch of faster payment system in September 2018 have
accelerated the development of electronic payment in Hong Kong. It is
anticipated that it will boost up the demand for person-to-merchants terminals
in electronic payment market, as well as drive the development of electronic
payment terminal solution and in turns benefit the growth of the Group’s
business.“

About EFT Solutions Holdings Limited

EFT
Solutions Holdings Limited (Stock Code: 8062) has been committed to providing a
full range of electronic payment solutions, supporting software and peripheral
devices, in order to bring convenience to Hong Kong citizens and make their
life better. It aims at providing the most suitable
electronic payment solution for different customers, as well as providing
add-value function for EFT-POS terminal, and coordinating terminal installation
and maintenance service. Its EFT-POS terminal service covers renowned restaurant
group, railway company, banks, major chain stores and department stores in Hong
Kong.