EFT Solutions announces FY2019 9-month results

February 13, 2019 - 03:17
EFT Solutions announces FY2019 9-month results

Revenue and profit increased by 35.8% and 53.8% respectively




9 months ended 31 December

HK$ million








Gross profit




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 itsfirst nine-month results. For the nine months ended 31 December 2018 ("The Reporting Period"), the Grouprecorded revenue of approximately HK$94.1 million which represented an increaseof approximately 35.8% as compared with approximately HK$69.3 million in thecorresponding period in 2017. During the reporting period, the Group recordedprofit of approximately HK$18.3 million, which represented an increase ofapproximately 53.8% on a period-to-period basis. It was mainly due to theincrease in the sourcing of EFT-POS terminals and peripheral devices.


Business Review


Duringthe Reporting Period, the Group successfully entered into the market of POSsoftware solution and the embedded system solution services, which enable us toenlarge the market share of the software solution business and to explore morebusiness opportunities in payment solutions.


Forsourcing of EFT-POS terminals and peripheral devices, revenue of approximatelyHK$31.1 million was recognised for Reporting Period which represented asignificant increase of approximately 81.9% as compared to HK$17.1 million inthe corresponding period in 2017 due to increase in number of EFT-POS terminalssold.


Forprovision of system support and software solution services, revenue ofapproximately HK$63.0 million was recognised for the Reporting Period whichrepresented an increase of approximately 20.7% as compared to HK$52.2 millionin the corresponding period in 2017 due to increase in number of EFT-POSterminals covered by our system support services and the increase in provisionof POS software solution services.


Gross Profit and GrossProfit Margin


Theoverall gross profit for the Reporting Period was approximately HK$47.7 million(for the    nine months ended 31 December2017: HK$36.4 million) which represented an increase of approximately 31.0%. Thereason for the increase of gross profit was primarily due to the Group sourcedmore EFT-POS terminals and peripheral devices with relatively higher profitmargin to customers in the Reporting Period as compared to that in thecorresponding period. The overall gross profit margin for the Reporting Periodwas about 50.7% (for the nine months ended 31 December 2017: 52.5%), whichrepresented a slightly decrease of about 1.8%.




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


The Group will strive its best effort toachieve business growth and make contribution in building Hong Kong into asmart city. The Group aims to further expand our market share and strengthenour market position in electronic payment and software solution industries byincreasing its capabilities and offering diverse and high quality one-stopintegrated services. Looking ahead, the management of the Group would makeevery endeavor to explore more business opportunities in payment solutions soas 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 haveaccelerated the development of electronic payment in Hong Kong. It isanticipated that it will boost up the demand for person-to-merchants terminalsin electronic payment market, as well as drive the development of electronicpayment terminal solution and in turns benefit the growth of the Group'sbusiness."

About EFT Solutions Holdings Limited

EFTSolutions Holdings Limited (Stock Code: 8062) has been committed to providing afull range of electronic payment solutions, supporting software and peripheraldevices, in order to bring convenience to Hong Kong citizens and make theirlife better. It aims at providing the most suitableelectronic payment solution for different customers, as well as providingadd-value function for EFT-POS terminal, and coordinating terminal installationand maintenance service. Its EFT-POS terminal service covers renowned restaurantgroup, railway company, banks, major chain stores and department stores in HongKong.