EFT Solutions announces 2017/18 annual results
- 25.06.2018 07:59 am
Revenue surged by 76.5%
Continues to develop electronic payment software solutions and hardware supporting services
EFT Solutions Holdings Limited ("the Company", together with its subsidiaries, the "Group"; Stock Code: 8062) announced its annual results. For the year ended 31 March 2018 ("FY2018"), the Group recorded revenue of approximately HK$94.1 million (2017: HK$53.3 million), representing a significant increase of approximately 76.5% which is mainly due to an increase in provision of software solution services of approximately 1,052.2% compared to that in FY2017.
In FY2018, the Group recorded profit for the year of approximately HK$21.7 million (2017: loss of approximately HK$1.3 million). The turnaround result was mainly due to completion of an increased number of software solution projects with high contract values in FY2018, which is set off against the increase in the share-based payment expenses, and absence of nonrecurring listing expenses, boosted the profit of the Group.
The Group intends to implement the business strategies to expand and diversify the business offering to increase revenue streams. The strategies are aimed to promote the business opportunities in the following areas:
Acquiring host software services -- As at 31 March 2018, the Group has actively participated in merger and acquisitions to look for more business opportunities and approached potential customers to develop tailor-made data system and software to meet their specific needs and to strengthen their capabilities;
Food and beverage service providers -- As at 31 March 2018, the Group has launched project of EFT-POS terminals with one of the largest food and beverage service providers in Hong Kong and will continue to identify and explore more business opportunities in different industries in Hong Kong to promote and offer a wide range of EFT-POS terminals including "pay at table" devices with functionality and to develop tailored software;
Public car parking systems -- As at 31 March 2018, the Group has sourced a batch of EFT-POS terminals to the customer in Australia for provision of "Smart" parking. The Group actively identify and explore more business opportunities like the provision of self-service car park payment system in overseas countries; and
Taxi -- As at 31 March 2018, the Group has continued to explore more opportunities in this category to provide all-in-one "Smart" payment solutions services so as to promote the Group's services and increase the number of taxis accepting credit and debit card payments.
The Group also intends to expand the services and product portfolio. In FY2018, the Group have expanded the information technology workforce for total EFT-POS solutions and workforce by recruiting more staffs to develop software solutions for new models of EFT-POS terminal and acquire host software services. Also, the Group have upgraded the server to achieve higher capacity and security and purchased additional computers for enhancing information technology and network system. In order to increase the product portfolio and increase the market share through potential strategic acquisitions or arrangements, the Group have invested in Open Sparkz Pty Ltd which became an associate of the Group and paid deposit as an earnest money to Hung Wai Holdings Limited for proposed investment in FY2018.
In recent years, cashless payment method becomes one of the main payment methods. During the year, the Group has assembled and organized a larger system development team and specialists on acquiring host software so as to improve the business performance and to cope with large scale projects such as projects from banks and renowned corporations ranging from leading railway operators to food and beverage companies.
Further, with the growing integration of mobile payment methods and ongoing new payment technologies, the Group anticipated there will be a rapid development of the mobile payment market. As the EFT-POS terminal manufacturers are actively developing and upgrading their terminals so as to keep abreast of the fast-paced payment technology, new versions of EFT-POS terminals are emerging in the market incorporating the most cutting-edge payment technology. EFT-POS terminal distributors can therefore take advantage of the structural development of the payment market and approach acquirers and merchants for upgrading their older model EFT-POS terminals. All of these provide significant opportunities for the Group to expand the market share and strengthen the market position in Hong Kong's electronic payment industry by increasing our capabilities and offering diverse and high quality services.
Mr. Lo Chun Kit Andrew, Chairman, Chief Executive Officer and Executive Director of the Group said, "Digital wallets become more and more popular in Hong Kong market recently, the Hong Kong Monetary Authority is also going to launch Faster Payment System which have accelerated the industry development. It is believed that the electronic payment ecosystem will become more diversified and mature. With our rich experience in the industry and the MobiCloud mobile payment transaction system, we have been endeavored in providing one-stop payments solutions to the customers, in order to upgrade merchants' system and enhance their operational efficiency, as well as to expand our services to different aspects and provide comprehensive electronic payment software solutions and hardware supporting services. We will continue to look for local and overseas expansion opportunities in order to increase market shares and consolidate our market position."