Revenue and profit increased by 35.8% and 53.8% respectively
9 months ended 31 December
Profit for the period
Profit attributable to the owners of the Company
Basic earnings per share (HK cents)
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.
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%.
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.