ONE OF the best-performing stocks on the Hong Kong Exchange, PAX Global Technology (HK: 327) said its subsidiary, PAX Computer Technology (Shenzhen) Company Ltd, has won recognition in the PRC as a “key software enterprise” for financial years 2013 and 2014.
This opens the door for the subsidiary to enjoy a reduced tax rate of 10%, said PAX Global, -- China’s top Electronic Funds Transfer Point of Sale (EFT-POS) terminal solutions provider -- in a statement.
The recognition of PAX Computer as a “key software enterprise” in the PRC was granted by the National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Commerce and the State Administration of Taxation under the National Plan (國家規劃佈局).
PAX Computer will submit applications to the tax authorities for the reduced tax rate.
When approval is granted, the excess tax amount paid by PAX Computer for FY2013 will be refunded to PAX Computer or retained for settling its tax payments in the future.
In the first half of 2013, PAX Global’s revenue grew 19% to HK$ 631 million. Profit grew at a slow clip of 7% to HK$ 91 million due to a decline in average selling prices as PAX's product mix shifted to the higher volume, more basic EFT-POS terminals.
Still, PAX Global's stock enjoyed a good run in the Hong Kong market with its shares surging 99% in 2013 to close at HK$3.12.
In the new year, the stock enjoyed another burst of energy to touch HK$4.50 before correcting to HK$3.72 last week.
PAX GLOBAL: Stock Price Up 99% In 2013, More Deals Signed