Adding investment to expand and cultivate growth momentum, PAX GLOBAL (00327) explores a new paradigm of long-term growth.

Since 2024, due to the repeated strength of the US dollar and the high interest rate environment, the pace of global economic recovery is still not smooth enough. Faced with the unpredictable external environment, taking a defensive and contraction stance in business is certainly a common way for companies to prevent risks. However, as the saying goes, profit and loss come from the same source, the economic history of mankind has proven countless times: although uncertain market conditions may bring risks, they may also accelerate the process of nurturing new huge opportunities in certain business areas. Take the electronic payment industry, which has shown strong growth momentum in recent years, for example. According to the third-party institution Capgemini's prediction, the global non-cash payment compound annual growth rate from 2022 to 2027 is 15%, and the market size is expected to reach $2.3 trillion by 2027. In the long-term perspective, considering that the world is moving towards the digital economy and cashlessness is an irreversible trend, the electronic payment industry will obviously continue to be a "golden track" with great growth potential in the future. Based on this judgment, for secondary market investors, strategically going long on related targets at the right time is undoubtedly a worthwhile investment strategy. It is worth noting that recently, the global payment terminal supplier PAX GLOBAL (00327), with business operations worldwide, has actively tapped into the untapped potential of the electronic payment industry with an international perspective and enterprising entrepreneurial spirit. For example, last month, PAX announced a cooperation between PAX (France) and Green-Pay to deploy advanced Android smart terminal A920 that complies with the UEMOA (West African Economic and Monetary Union) regional standards in West Africa; earlier, PAX partnered with Bindo Labs to successfully deploy the A930 payment terminal carrying the Wonder application in nearly 2000 taxis in Hong Kong; and at the end of August earlier this year, PAX also collaborated with the Singapore metro company SMRT Corporation to fully support the fourth "Tap For Hope" fundraising event and jointly create a new electronic fundraising model. Looking at each of these, it is undeniable that PAX's increased investment in West Africa is correct and of great significance. In terms of importance, the EMEA (Europe, Middle East, and Africa) region is currently the region with the highest proportion of PAX GLOBAL's revenue and occupies a crucial strategic position in the company's global business map. In particular, due to the relatively underdeveloped nature of the Middle East and Africa, the cash usage rate in these two regions is several times higher than that in developed regions. However, with the gradual improvement of the cashless payment infrastructure, it can be foreseen that there is still a great room for growth for PAX's payment terminal solutions in these underdeveloped regions. It is understood that Green-Pay, the Ivorian payment supplier with whom PAX cooperated this time, will strengthen PAX's efforts to promote the development of a cashless society in Cte d'Ivoire and the entire UEMOA region. Currently, the two parties have launched the A920 model in the local market, and the next step is that PAX's newly launched A8900 smart terminal model earlier this year is also expected to be introduced in the market soon. It is worth anticipating that with the strong cooperation between PAX and the local suppliers, the growth potential of the company in West Africa is expected to be accelerated, and this is expected to be reflected in PAX's upcoming financial reports soon. In the APAC (Asia-Pacific) region, where strong performance has been achieved in recent years, PAX GLOBAL continues to steadily consolidate its leading position in the region. As mentioned earlier, in the key city of Hong Kong, PAX has introduced the most powerful mobile Android payment solution, the A930 payment terminal, and has now deployed it in nearly 2000 taxis, with plans to cover up to 8000 taxis by the end of the year. This milestone cooperation not only signifies an important step forward in the modernization of the taxi payment system in Hong Kong but also has a positive effect on further deepening PAX's influence in the Hong Kong market. Similarly, in Singapore, another important market in the Asia-Pacific region, PAX GLOBAL has also assisted SMRT in conducting the "Tap For Hope" fundraising event as an important supporting partner. It is reported that PAX has launched the innovative product PAX IM30 in this event, which not only meets the EVA standards but also becomes an ideal choice for various unmanned scenarios due to its easy integration feature, perfectly adapting to modern electronic fundraising models. While expanding business operations in various areas, PAX GLOBAL also seizes market opportunities by accelerating the enhancement of the company's influence in various markets through external acquisitions. Regarding this, the most recent example is the agreement signed by PAX's wholly-owned subsidiary, PAX Technology Australia PTY Ltd (hereinafter referred to as the "target company"), with the existing shareholders of the target company in mid-2020 to conditionally acquire all the shares of the target company for an initial consideration of approximately AUD 5.4 million. It is understood that the target company mainly provides electronic payment terminals in Australia and New Zealand, and has shown strong growth momentum over the past few years. Through this acquisition, PAX is expected to generate good synergies with the target company, enhance the brand awareness of PAX locally, and inject new momentum for the company to form a broader influence in the local market. In conclusion, the development trend of the global electronic payment industry has already taken shape and will continue to strengthen in the future. External factors may affect the growth pace temporarily, but they cannot change the overall trend of development. Positioned on this "golden track," PAX GLOBAL, which is pushing forward business expansion through a series of high-quality measures, is undoubtedly doing the right thing at the right time. From an investment perspective, such a company like PAX naturally has a significant value worth paying attention to, and investors including it in their long-term tracking list is probably a wise move.