02 VISION AND MISSION 03 CORPORATE PROFILE 04 CORPORATE STRUCTURE 06 CORPORATE INFORMATION 07 FINANCIAL HIGHLIGHTS 08 KEY PERFORMANCE INDICATORS 09 MANAGEMENT DISCUSSION AND ANALYSIS 18 SUSTAINABILITY STATEMENT 26 DIRECTORS’ PROFILE 35 KEY SENIOR MANAGEMENTS’ PROFILE 38 CORPORATE DIRECTORY 39 CORPORATE GOVERNANCE OVERVIEW STATEMENT 48 AUDIT AND RISK COMMITTEE REPORT 53 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL 60 OTHER STATEMENTS AND DISCLOSURES FINANCIAL STATEMENTS 62 DIRECTORS’ REPORT 68 STATEMENT BY DIRECTORS 68 STATUTORY DECLARATION 69 INDEPENDENT AUDITORS’ REPORT 74 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 76 STATEMENTS OF FINANCIAL POSITION 78 STATEMENTS OF CHANGES IN EQUITY 81 STATEMENTS OF CASH FLOWS 84 NOTES TO THE FINANCIAL STATEMENTS 166 LIST OF PROPERTIES 167 ANALYSIS OF SHAREHOLDINGS 170 NOTICE OF 28TH ANNUAL GENERAL MEETING 176 STATEMENT TO SHAREHOLDERS PROXY FORM TABLE OF CONTENTS
OUR VISION The ASEAN Payment People Payments Simplified OUR MISSION To be clearly recognised as the leading ASEAN payment services provider. Delivering powerful solutions to deeply rooted local relationships. We help merchants, financial institutions and telcos make money by simplifying their distribution, payment and collections needs. We provide ASEAN merchants, both big and small, with complete solutions that fulfil their customers’ needs. CUSTOMER IS THE BOSS We listen, anticipate and deliver what our customer needs TEAMWORK Together we can achieve more NO DISHONESTY Zero-tolerance for dishonesty in any form ADDICTED TO INNOVATION Our relentless pursuit of innovation is what drives us forward “BOLEH” ATTITUDE We are passionate and driven to make a difference. AWARDS & RECOGNITION 2021 Malaysian e-Payment Excellence Awards (MEEA) - Best e-Payments Acceptance Growth Award for MyDEBIT as a non-bank Acquirer 11th Malaysian Investor Relations Association (MIRA) Investor Relations (IR) Awards - Best IR Website (Mid Cap category) OUR CORE VALUES 02 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021
Solution Services Shared Services Transaction Payment Acquisition GHL SYSTEMS BERHAD 03 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 CORPORATE PROFILE As ASEAN’s leading payment solutions provider, GHL’s reach spans across six countries; Malaysia, Philippines, Thailand, Indonesia, Singapore and Australia – stretching over a vast footprint of 398,000 payment touchpoints. At the forefront of the region’s cutting edge fintech, GHL empowers the payment revolution that is shaping today’s spending trend, offering extensive payment options, both offline and online to fulfil merchants and consumers’ needs. Our core activities are focused on these business pillars: • Transaction Payment Acquisition As one of the largest ASEAN Transaction Payment Acquirers, we acquire merchants on behalf of major financial institutions and payment schemes, locally as well as globally. Through this, Card Payments such as debit and credit are enabled, allowing consumers to pay using these alternatives instead of cash. Riding the ASEAN cashless tide, alongside significant Asian digital payment players, GHL’s Mobile Payments enable major local and cross border e-wallets’ acceptance across our footprint of more than 398,000 payment touchpoints. Our internet payment gateway, eGHL, offers a secure Online Payment gateway that covers more than 100 card and non-card payment channels, with a single integration, throughout the ASEAN region. Our subsidiary e-pay, powering the Prepaid Top-ups & Bill Collection services, leads Malaysia’s mobile reload & bill payment collection network, processing over 15 million transactions, amounting to over RM380 million in value, nationwide per month. • Shared Services GHL provides Payment Acceptance Devices such as Android All-in-One Point of Sales (POS) terminals and other devices that are able to perform numerous electronic payments, alongside complex payment application developments. • Solution Services GHL offers Payment Solutions that includes customised online payment platforms, payment collection solutions, integrated payment solutions, loyalty points capture/redemption solutions, loan repayment solutions, and other bank or merchant specific requirements designed to cater to our client’s specific business needs. We also offer secure payment network, supplying both software and hardware solutions.
04 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 GHL Payments Sdn. Bhd. GHL Loyalty Sdn. Bhd. GHL Asia Pacific Limited GHL ePayments Sdn. Bhd. GHL Global Sdn. Bhd. GHL Systems Australia Pty. Ltd. GHL Systems Philippines, Inc. GHL (Thailand) Co., Ltd. GHL Electronic Payments Inc. GHL Myanmar Limited GHL Philippines Financing Services Inc. GHL ePayments Pte. Ltd. GHL ePayments Co., Ltd. GHL SYSTEMS BERHAD 199401007361 (293040-D) INCORPORATED IN MALAYSIA GHL CardPay Sdn. Bhd. Conscious Object Development Co., Ltd. GHL Transact Sdn. Bhd. GHL International Sdn. Bhd. 100% 100% 100% 100% 100% 100% 100% 100% 100% 99.99% 99.99% 97.74% 100% 99.99% 100% 99.99% 99.99% CORPORATE STRUCTURE
05 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 GHL Payment Services Sdn. Bhd. GHL BPO1 Sdn. Bhd. Mobiepay Sdn. Bhd. S Capital Sdn. Bhd. Sentripay Sdn. Bhd. MRuncit Commerce Sdn. Bhd. Pay Here Sdn. Bhd. PT Pembayaran Elektronik Indonesia Digital Salute Sdn. Bhd. 2.59% 40% GHL EFTPOS Sdn. Bhd. Paysys Technology Sdn. Bhd. Paysys Communications Sdn. Bhd. Paysys (M) Sdn. Bhd. e-pay (M) Sdn. Bhd. e-pay Pakistan (Private) Limited PT e-pay Indonesia Electronic Payment Network (Thailand) Co. Limited EPY Capital Holdings Ltd 21.20% 100% 100% 100% 100% 100% 100% 100% 100% 29.17% 100% 100% 60% 16.00% 78.80% 100% 100% 100% 50% CORPORATE STRUCTURE CONT’D
COMPANY SECRETARIES Te Hock Wee (MAICSA 7054787) (SSM PC No. 202008002124) Wong Wai Foong (MAICSA 7001358) (SSM PC No. 202008001472) REGISTERED OFFICE Unit 30-01, Level 30, Tower A Vertical Business Suite, Avenue 3 Bangsar South, No. 8, Jalan Kerinchi 59200 Kuala Lumpur Tel : +6(03) 2783 9191 Fax : +6(03) 2783 9111 REGISTRAR Tricor Investor & Issuing House Services Sdn Bhd Unit 32-01, Level 32, Tower A Vertical Business Suite, Avenue 3 Bangsar South, No. 8, Jalan Kerinchi 59200 Kuala Lumpur Tel : +6(03) 2783 9299 Fax : +6(03) 2783 9222 AUDITORS BDO PLT (LLP0018825-LCA & AF0206) Level 8 BDO @ Menara CenTARa 360 Jalan Tuanku Abdul Rahman 50100 Kuala Lumpur. PRINCIPAL BANKERS Ambank (M) Berhad Alliance Bank Berhad CIMB Bank Berhad Malayan Banking Berhad Standard Chartered Bank Malaysia Berhad Public Bank Berhad HSBC Bank Malaysia Berhad STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Bhd (BMSB) BMSB Code : 0021 Reuters Code : GHLS.KL Bloomberg Code : GHLS MK WEBSITE www.ghl.com AUDIT AND RISK COMMITTEE Dato’ Chan Choy Lin (Chairperson) Matteo Stefanel (Appointed on 18 May 2021) Tan Lye Sim (Appointed on 25 November 2021) Kung Lee See (Appointed on 25 November 2021) Datuk Kamaruddin Bin Taib (Resigned on 25 November 2021) Hossameldin Abdelhamid Mohamed Aboumoussa (Resigned on 11 March 2021) NOMINATION AND REMUNERATION COMMITTEE Dato’ Chan Choy Lin (Chairperson, appointed on 18 February 2022) Matteo Stefanel (Appointed on 18 May 2021) Tan Lye Sim (Appointed on 25 November 2021) Kung Lee See (Appointed on 25 November 2021) Datuk Kamaruddin Bin Taib (Resigned on 18 February 2022) Hossameldin Abdelhamid Mohamed Aboumoussa (Resigned on 11 March 2021) DATUK KAMARUDDIN BIN TAIB (Independent Non-Executive Chairman) LOH WEE HIAN (Executive Vice Chairman) DATO' CHAN CHOY LIN (Independent Non-Executive Director) BOARD OF DIRECTORS MATTEO STEFANEL (Non-Independent Non-Executive Director) RICHARD HENRY PHILLIPS (Non-Independent Non-Executive Director) (Appointed on 16 April 2021) SEAN S. HESH (Executive Director) (Appointed on 1 Oct 2021) TAN LYE SIM (Independent Non-Executive Director) (Appointed on 1 Oct 2021) KUNG LEE SEE (Independent Non-Executive Director) (Appointed on 1 Oct 2021) LOH HIN YAW (Alternate Director to Loh Wee Hian) (Appointed on 1 Oct 2021) 06 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 CORPORATE INFORMATION
SHAREHOLDERS’ EQUITY RM’000 ‘17 ‘18 ‘19 ‘20 ‘21 EARNINGS BEFORE INTEREST, TAX, DEPRECIATION & AMORTISATION (EBITDA) RM’000 46,910 55,680 71,920 50,827 69,239 REVENUE RM’000 ‘17 ‘18 ‘19 ‘20 ‘21 253,681 299,067 347,707* 334,514 360,166 ‘17 ‘18 ‘19 ‘20 ‘21 PROFIT ATTRIBUTABLE TO EQUITY HOLDERS RM’000 20,451 24,543 28,724 28,158 13,549 ‘17 ‘18 ‘19 ‘20 ‘21 274,195 406,225 442,450 508,872 481,758 ‘17 ‘18 ‘19 ‘20 ‘21 NET ASSETS PER SHARE RM 0.42 0.55 0.59 0.45 0.42 07 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 FINANCIAL HIGHLIGHTS
08 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 KEY PERFORMANCE INDICATORS FINANCIAL HIGHLIGHTS Year Financial Year Ended 31 December 2017 2018 2019 2020 2021 Revenue RM’000 253,681 299,067 347,707* 334,514 360,166 Gross Profit RM’000 105,726 126,876 150,475 144,326 140,109 Gross Profit Margin % 41.68 42.42 43.28 43.14 38.90 Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA) RM’000 46,910 55,680 71,920 50,827 69,239 Profit / (Loss) For The Year Attributable To Equity Holders RM’000 20,451 24,543 28,724 13,549 28,158 Shareholders’ Equity RM’000 274,195 406,225 442,450 481,758 508,872 Net Operating Cash Flow RM’000 56,372 2,532 91,506 44,350 88,615 Net Assets Per Share RM 0.42 0.55 0.59 0.42 0.45 Basic Earnings Per Share sen 3.12 3.49 2.56** 1.69 2.47 Total Borrowings RM’000 34,186 34,668 26,204 22,175 52,390 Net Gearing Ratio Net Cash Net Cash Net Cash Net Cash Net Cash Notes: * Revenue for FY 2019 is inclusive of revenue from discontinued operations. ** Basic earnings per share restated in accordance with MFRS 113 Earnings per share arising from bonus issue.
09 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 1. OVERVIEW OF THE GROUP’s BUSINESS AND OPERATIONS GHL Systems Berhad (“the Group”) is a leading ASEAN payment services provider with operations in Malaysia, Philippines, Thailand, Indonesia, and Australia. The Group provides end to end payment services encompassing physical, e-commerce, and QR payments acceptance, and is one of the region’s top merchant acquirers. GHL manages and oversees more than 398,000, footprint of payment touchpoints across its ASEAN markets that enable credit/debit card, e-wallets, contactless payment, loyalty, prepaid credit top up, and bill collection payment services. The Group has three (3) core business pillars: 1. Transaction Payment Acquisition (“TPA”) comprises revenue derived from two (2) distinct sub segments: i) e-pay services which include Telco prepaid and other credit top-up facilities and bill collection services for consumers (“reload and collection services”) and; ii) GHL’s merchant acquiring and electronic payment services (“electronic payment services”). 2. Shared Services comprises revenue derived from the sale, rental, and maintenance of EDC terminals and other payment acceptance devices. 3. Solution Services comprises revenue derived from proprietary payment solutions which include customised online platforms, loan collections, loyalty systems and other bank or merchant specific applications. The Group’s focus is to become ASEAN’s largest merchant acquirer by directly contracting with merchants (“merchant acquisition”) under its TPA initiative. These business segments have since grown rapidly, resulting in a higher proportion of annuity income and a significant change in the business segment mix for the Group (See Sections 2.5 and 3.1 for details). GHL has been listed on Bursa Malaysia since 2003. 2. DISCUSSION AND ANALYSIS OF THE FINANCIAL RESULTS AND CONDITIONS Analysis of Financial Results 2.1 Revenue Group revenue improved 7.7% YoY to RM360.2 million (2020 – RM334.5 million) despite the impacts of the global COVID-19 pandemic across its group operations. Declines registered in the Shared Services and Solutions Services business pillars were boosted by a 15.4% growth in its TPA business segment which accounted for 63.6% of group revenue. Geographical wise, Malaysia and Philippines’ 2021 revenue grew year-on-year whereas Thailand was down as it continues to be impacted by its tourism sector. 2.2 Net Profit Pre-tax profits jumped 90.8% to RM40.7 million as compared to RM21.3 million a year ago. Pre-tax margins grew to 11.3% (2020 – 6.4%). Net profit after tax and minority interest improved in tandem by 107.8% YoY to RM28.2 million (2020 – RM13.6 million), with the improvement coming from TPA division. 2.3 Taxation The effective tax rate for 2021 was 30.8% (2020 – 57.2%) which was higher than the statutory tax rate mainly due to non-tax allowable expenses. Post-tax and minority interest profit margins were higher at 7.8% in 2021 as compared to 4.1% in 2020 but slightly below the pre-COVID figure of 8.3% in 2019. MANAGEMENT DISCUSSION AND ANALYSIS
10 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 2. DISCUSSION AND ANALYSIS OF THE FINANCIAL RESULTS AND CONDITIONS (Cont’d) 2.4 Profit attributable to Equity Holders of the group The profit attributable to equity holders of the Group recovered to RM28.2 million, a 107.8% growth YoY. Fully diluted earnings per ordinary share for the year amounted to 2.47sen, an improvement of 46.2% YoY. The performance in 2021 still reflected the COVID-19 challenges which resulted in governments introducing lockdowns and movement controls to contain the spread of the pandemic. 2.5 Annuity versus Non-Annuity Revenue Annuity vs Non-Annuity Revenue (RM’ million) 2020 43.3 291.2 Annuity Non-Annuity 52.2 334.5 360.2 308.0 2021 87.1% 12.9% 85.5% 14.5% Total The annuity-based revenue component within the group’s total revenue remains high at 85.5% and this compared to 87.1% achieved in FY2020 due to higher hardware and software sales recognised in 2021 compared to FY2020. Although annuity-based revenue was lower in percentage terms, in absolute terms, it was higher due to higher recurring TPA transactions captured. The group’s strategy is to grow the TPA and other businesses that have a strong recurring annuity-based revenue and at the same time to continue to support our main bank customers with their future hardware and software needs. As TPA recovery gathers momentum in all geographical markets, we expect the annuity revenues to remain strong and recover in FY 2022. 2.6 Liquidity and Capital Resources As at 31 December 2021, the Group’s Net Cash Position (Note 1)amounted to RM121.8 million (31 December 2020 – RM117.7 million). There are further funds placed in fixed income fund with financial institution included in Other Investments amounting to RM101.6 million (31 December 2020 – RM64.8 million). (Note 1 – Defined as Total Cash and Bank Balances less all Bank Borrowings and Lease Liabilities) The key items that impacted the Group’s cashflow in 2021 were as follow: - (i) Net cash generated from operating activities increased to RM88.6 million (2020 – RM44.3 million), mainly due to an increase in working capital requirements of RM59.3 million from an increase in trade and others payables (RM23.1 million), increase in advance receipts for contract liabilities (RM6.7 million), a decrease in inventories (RM19.4 million) and decrease in trade and other receivables (RM10.5 million), and decrease in operating profit before working capital changes of RM13.3 million, and also a slight increase in movement of tax and interest of RM1.8 million. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
11 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 2. DISCUSSION AND ANALYSIS OF THE FINANCIAL RESULTS AND CONDITIONS (Cont’d) 2.6 Liquidity and Capital Resources (Cont’d) (ii) An amount of RM43.3 million (2020 – RM17.2 million) was expended on capital expenditure which was mostly in respect of the Group’s purchases of EDC terminals. (iii) The Group repaid RM36.7 million of its bank borrowings and hire purchase payables in 2021 (2020 – RM79.1 million). The Group also drew-down fresh bank loans in 2021 of RM60.7 million (2020 – RM66.4 million) for working capital purposes. 2.7 Trends and Events The 2021 COVID-19 pandemic global impact continued to be felt by the economies of the ASEAN region whereby the respective governments imposed varying degrees of movement control and lockdown on its population to contain the spread of the pandemic. These movement controls adversely impacted the economies of the countries we operate in and GHL’s operations. The level of movement control in Malaysia, Philippines, Thailand and Indonesia varied in its severity and implementations and the resulting the rate of recovery. Two trends could be observed arising from the movement control and social distancing measures imposed, which resulted in a quicker shift towards online ecommerce and cashless transactions at physical stores. Online activities for ecommerce as well as leisure activities grew as consumers were house bound due to the lockdown imposed. The second trend was noticed when restrictions were eased, consumers would opt to pay using cashless means to avoid handling physical cash as part of the measures to minimise COVID-19 risks. Both trends are favourable to our operations as consumer behaviour in faster adoption of cashless payments bodes well for our group’s TPA strategy. 2021 saw the peak of COVID-19 positive cases in ASEAN which resulted in more lockdown days compared to 2020 but fortunately, the vaccination effort by various governments also grew in 2021. As vaccination efforts globally increases, including the deployment of booster vaccine shots, many observers opined that the pandemic will soon reach its endemic stage. This will result in more relaxed restrictions and expectations of the reopening of borders for trade, travel and tourism bodes well for the outlook for GHL as consumer spending and consumption are expected to improve in the coming months. During 2021, many ASEAN government and their respective central bank initiatives saw the announcements of cross border recognition of their respective national QR codes which is expected to accelerate and encourage faster adoption of cashless usage and change in consumer behaviour, especially when borders reopen and travel resumes. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
12 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 3. PERFORMANCE BY BUSINESS SEGMENT AND GEOGRAPHY 3.1 Performance By Business segment As indicated earlier, the core business segments of the Group comprise the following:- 1) Transaction Payment Acquisition (“TPA”); 2) Shared Services; and 3) Solution Services. An analysis of the performance of all three business segments are as per below: - Revenue By Business Segment (RM’ million) 2020 14.9 121.1 Solution Services 14.5 116.7 2021 198.5 229.0 TPA 334.5 360.2 Total Shared Services a) Transaction Payment Acquisition (“TPA”) Segment The TPA business has two (2) distinct sub-segments, each in a different stage of development. They are: i) e-pay’s direct contractual relationships with merchants to provide Telco prepaid reloads and other top-up facilities as well as bill collection services for consumers (“reload and collection services”) and ii) GHL’s direct contractual relationships with merchants to provide international and domestic card payment and e-wallet services (“electronic payment services”). With both sub-segments combined, the TPA business grew 15.4% to RM229.0 million in 2021 (2020 – RM198.5 million), contributing 63.6% of total revenue in 2021 (2020 – 59.3%). The electronic payments business is growing at a much faster rate compared to the e-pay business and is complementary to each other. The electronic payments TPA gross revenue grew by 27.3% YoY to RM95.1 million (2020 – RM74.7 million) whereas the e-pay business grew at a lower rate of 8.2% to RM133.9 million in 2021 from RM123.8 million in 2020. Despite a challenging 2021, there remains considerable untapped opportunity within ASEAN, hence the TPA business remains the main driver of growth for the Group in the near term. Each of the two (2) components within the TPA business is described in more detail, as follow: - (i) e-pay (reload and collection services) e-pay is the largest provider of reload and collection services in Malaysia. It has approximately 49,000 acceptance points nationwide, encompassing petrol chains, large convenience store chains and general retail stores. The e-pay brand is well known to consumers who use the service. With over 20 years of experience, e-pay is clearly the market leader in Malaysia within this industry segment. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
13 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 3. PERFORMANCE BY BUSINESS SEGMENT AND GEOGRAPHY (Cont’d) 3.1 Performance By Business segment (Cont’d) a) Transaction Payment Acquisition (“TPA”) Segment (Cont’d) (i) e-pay (reload and collection services) (Cont’d) A full year’s comparison of key data between 2021 and 2020 relating to the e-pay business is found in Table 1 below. The transaction payment value by e-pay grew by 12.8% in 2021. The Gross Revenue/Transaction Value declined by 4.1% to 2.75% in the year due to changes in the product mix as well as the merchant mix in which these transactions occurred. Table 1 e-pay (All stated in RM'millions unless stated otherwise) YTD 2020 YTD 2021 % change Transaction Payment Value 4,324.6 4,876.2 12.8% Gross Revenue 123.8 133.9 8.2% Gross Revenue/Transaction Payment Value (Note 1) 2.86% 2.75% -4.1% Gross Profit 43.4 45.0 3.7% Gross Profit/Transaction Payment Value (Note 1) 1.00% 0.92% -8.0% Merchant Footprint - e-pay Only (Thousands) 42.3 49.0 15.7% Note 1 – Gross Revenue or Gross Profit respectively divided by the Transaction Payment Value expressed as a %. (ii) GHL (electronic payment services) This electronic payment services business is driven by TPA arrangements with leading domestic banks in the respective markets as well as a leading China e-wallet provider which is expanding into ASEAN. The existing GHL TPA data, as shown in Table 2, comprises the following activities: a) Various merchant discount rate (“MDR”) revenue sharing arrangements under direct contracts with merchants and banks in Malaysia, Thailand, and Philippines. b) Domestic debit card merchant acquisition. c) E-commerce TPA (“eGHL”). d) e-wallet providers in Malaysia, Thailand and Philippines. A summary of key data relating to the electronic payment business is found in Table 2 below. While transaction payment value grew by 20.4%, overall revenue improved by 27.3% due to merchant mix as well as payment type mix which impacts the overall MDR (gross revenue/ transaction value) which improved to 0.52% from 0.49% in 2020. Over the longer term, however, margins should stabilise as more merchants are on board and a larger portfolio is built as overseas TPA in Philippines and Thailand gather momentum. The introduction of domestic e-wallets in all three markets continue to grow and gain further acceptance by consumers in 2021 and this trend is expected to continue going forward. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
14 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 3. PERFORMANCE BY BUSINESS SEGMENT AND GEOGRAPHY (Cont’d) 3.1 Performance By Business segment (Cont’d) a) Transaction Payment Acquisition (“TPA”) Segment (Cont’d) (ii) GHL (electronic payment services) (Cont’d) Table 2 GHL Electronic payments TPA (All stated in RM'millions unless stated otherwise) YTD 2020 YTD 2021 % change Transaction Payment Value 15,226.9 18,337.3 20.4% Gross Revenue 74.7 95.1 27.3% Gross Revenue/Transaction Payment Value (Note 1) 0.49% 0.52% 5.7% Gross Profit 27.9 34.0 21.7% Gross Profit/Transaction Paymennt Value (Note 1) 0.18% 0.19% 1.0% Merchant Footprint - TPA Only (Thousands) 103.9 121.9 17.3% Note 1 – Gross Revenue or Gross Profit respectively divided by the Transaction Payment Value expressed as a % b) Shared Services Segment Shared Services segment revenue declined by 3.6% YoY to RM116.7 million (2020: RM121.1 million), due to lower EDC terminals sales and deployment as the result of movement control restrictions and cautious capital expenditure spending by the banking sector in light of the uncertainty of COVID-19 in 2021. The Shared Services segment was also impacted by lower rental and maintenance revenue due to terminal retrievals by banks from its merchants that were affected by the lockdowns. c) Solutions Services Segment Solutions Services revenue marginally declined by 2.7% to RM14.5 million (2020: RM14.9 million), due to slower investment spending by customers. 3.2 Performance by Geographical Location Group revenue for FY2021 was up 7.7% YoY to RM360.2 million (2020– RM334.5 million) with overall growth driven by TPA but tempered by minor YoY declines in Shared Services and Solution Services business pillars. Malaysia and Philippine markets registered growth during this period but Thailand continue to be impacted by lower TPA transactions and lower Solutions Services revenue in the comparative FY2020. Despite the improvement in top line group revenue, the group posted lower gross profit margins of 38.9% (2020 – 43.1%) due to changes in product and business division revenue mix. 2021 registered a pre-tax profit of RM40.7 million compared to RM21.3 million a year ago. In FY2020 however, there were two key non-cash items included in the financials, namely, fair value loss on the 2018 Paysys acquisition consideration shares (RM6.1million) and write-down of the group’s Cambodia investment (RM11.9 million). Malaysia’s operations, which is the largest in the group, contributed 81.2% (2020 – 79.6%) of group revenue and registered a 9.8% YoY growth due to improvements in TPA and Solutions Services with a slight decline of performance in Shared Services. Malaysia was driven by its TPA division as consumers continued to switch to cashless payments. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
15 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 3. PERFORMANCE BY BUSINESS SEGMENT AND GEOGRAPHY (Cont’d) 3.2 Performance by Geographical Location (Cont’d) Philippines’ revenue was 7.4% YoY higher at RM48.1 million (2020 – RM44.8 million) driven by better TPA performance but dragged by lower Shared Services due to lower rental/maintenance revenue collected with Solutions Services registered a flat performance. The lockdown situation in the Philippines remained tight but with daily cases trending down and vaccination rate improving. Thailand recorded a decline in revenue of 16.9% to RM18.2 million from RM21.9 million in FY2020 dragged by lower TPA transactions due to COVID-19 lockdown and lower Solutions Services revenue resulted from higher hardware sales captured in the second half of 2020 which were not repeated in 2021. However, in 2021, Shared Services recorded better EDC hardware sales which were deferred from previous year. The TPA segment continued to be affected by the contraction due to the border closures which impacted tourist arrivals and hence the group’s cross border e-wallet segment. Other countries remain the smallest contributor to group operations at RM1.5 million of group turnover compared to F2020’s turnover of RM1.6 million. As at end of December 2021, the group’s payment touchpoints stood at 398,024 points, a 3.8% YoY growth overall whereas TPA touchpoints grew 16.9% but this was negated by the rental terminal retrievals by certain banks. This large merchant touchpoint base has enabled the group to process a TPV of RM23.2 billion in payment transactions (18.7% YoY growth). Revenue By Country (RM mil) 0 50 100 150 200 300 250 350 400 334.5 360.2 44.8 48.1 2020 2021 21.9 18.2 1.6 1.5 Philippines Thailand Others Group Malaysia 266.2 292.4 MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
16 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 4. KNOWN RISKS In the ordinary course of its operations, the Group is exposed to the following risks: a) Merchant Performance Risk – The Group currently contracts directly with merchants on two business models namely as a Payment Facilitator (PF) with Financial and Non-Financial Institutions as well as a Direct Acquirer with the schemes for the provision of electronic payment services. In the event a risk arises in that the merchant default in his obligations to the cardholder or e-wallet holders for any particular sale, then, that sale would be reversed (“or charged-back”) and the sale amount refunded to the cardholder or e-wallet holder. The acquiring institution would execute its rights to then recover the charged-back transaction from the Group which would then seek to recover it from the merchant. The Group could potentially incur a loss if the merchant was no longer in business or otherwise unable to reimburse the Group for the charge-back. The Group has, over the past years, invested significantly to develop and put in place risk management policies, procedures, systems, and risk managers with the requisite experience to monitor merchant performance risk. The Group also implemented specific rules and other forms of controls to the merchants to manage performance risks. These strict controls and Standard Operating Procedures (SOP) have effectively mitigated merchant performance risk, and as of the date of this report, there was negligible exposure arising from this risk. The Group had recorded RM8,769.95 nett chargeback losses attributable to merchant performance risk in 2021 recorded for Malaysia, Thailand, Philippines and Indonesia. b) Operational Risk – In 2021, the Group reported a total of 239 risks of which 139 risks (90%) were classified as minor and moderate risk. The remaining 10% was addressed with adequate and appropriate mitigation strategies to ensure that the residual risk is minimised. Operational risk management, which forms part of the Group’ Enterprise Risk Management Framework, is a continual process applied by the Group in a half yearly cycle that includes risk assessment, risk decision making, and implantation of risk controls, which result in acceptance, mitigation, or avoidance of risks. c) Liquidity Risk – As indicated in Section 2.6, the Group is in a net cash surplus position and therefore has no net gearing. Short term purchases for Telco prepaid top-ups are typically funded with internal generated cash or Bankers Acceptances and are liquidated when these are on-sold to merchants. Longer term EDC terminal purchases are funded with long term bank term loans. The Group plans to fund the planned expansion in the Payment Facilitator (PF) and Direct Acquiring business by commensurately increasing its bank term loans and internal generated cash. Given the Group’s strong cash flow and lack of net gearing, it is well positioned to do so. d) Foreign Currency Risk – EDC terminals are purchased in USD and therefore can expose the Group to foreign currency risk as the Group’s functional currency is in Ringgit Malaysia. The Group minimises its exposure to foreign currency risk by purchasing USD spot at the time of recording the vendor liability. The Group does not hedge against any foreign currency fluctuations in the net asset value of its overseas subsidiaries as these investments are of a long term nature. This would, however, be re-visited should a significant event occur that would cause a permanent diminution in the foreign currency denomination of its overseas subsidiaries. 5. FUTURE PROSPECTS 2022 started relatively unchanged compared to the last quarter of 2021 as the COVID-19 pandemic remain the main concern. Different countries are implementing commensurate measures to contain the spread whilst juggling and keeping their economies as open as possible. Cross border travel remains nascent but vaccination efforts are being intensified by most countries and hopefully the various economies will experience a more meaningful recovery and reopening in subsequent quarters of 2022. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
17 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 5. FUTURE PROSPECTS (Cont’d) Given our Group’s diverse range of merchant base, some of our payment touchpoints such as convenience stores, pharmacies, medical facilities, supermarkets and petrol stations are still functioning throughout the movement control period which continued to contribute to our group TPV growth in 2021. By the second quarter of 2022, most countries are already opening their borders, which bodes well for spending in sectors like retail, tourism and leisure activities. Although the COVID-19 pandemic is moving to the endemic stage, consumer sentiment is recovering but cautious. We are cautiously optimistic of improvements in 2022 compared to 2021 where the group recorded a revenue improvement but margins were impacted due to merchant and revenue type mix. As COVID-19 vaccines were deployed in stages and intensified in the second half of 2021, there is now a cautious optimism on the gradual recovery in the global economies, and with it, the opening of borders and hence travel and trade. The improving rate of vaccinations has led to most countries slowly relaxing their SOPs and border closures beginning October 2021. The reopening of businesses and borders bodes well for consumption and hence cashless payments to further improve in the coming quarters barring any unforeseen in resurgence of COVID-19 cases. The emergence of the Omicron variant of the COVID-19 pandemic towards the end of 2021 had caused concerns but most countries did not revert to previous strict lockdown measures as vaccination rates are now significantly higher and booster shots are being administered. 2022 still looks poised for a gradual recovery in the global economy and this, again, bodes well for consumer spending to recover further. However, the recent conflict in north eastern Europe has resulted in uncertainties for the global economies which has seen the significant increase in commodity prices, especially energy costs which may threaten the fragile recovery of a post COVID-19 global economy. This conflict may have wide ranging impacts on the global recovery. The group remains positive in the long-term potential of the ASEAN e-payments industry and believes the trends of switching to e-payments and cashless channels will continue going forward. 6. DIVIDENDS The Board of Directors has decided that our cash reserves can be better used to further develop the Group’s business in the various ASEAN markets it operates in and therefore do not recommend the payment of a dividend for the financial year ended 31 December 2021. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
18 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 SUSTAINABILITY STATEMENT ABOUT THE STATEMENT We proudly present GHL System Berhad’s (“GHL” or ‘the Group”) fifth Sustainability Statement (“Statement”) as our commitment to transparent disclosure of the Group’s sustainability performance. This statement summarises key highlights of our Environmental, Social & Governance (“ESG”) initiatives and is to be read jointly with our first standalone Sustainability Report. The Report provides a comprehensive disclosure from 1 January 2021 to 31 December 2021 (“FY2021”) and is available on our corporate website https://www.ghl.com/. We maintained disclosure on the sustainability initiatives and performance from our ASEAN operations, namely the Group Headquarters in Kuala Lumpur and the following subsidiaries: • GHL Malaysia • GHL Philippines • GHL Thailand • GHL Indonesia • GHL Australia As in previous reporting periods, our Sustainability Report has been prepared in accordance with Bursa Malaysia Sustainability Reporting Guide (2nd Edition) and is aligned with the Global Reporting Initiative (“GRI”) Standards. SUSTAINABILITY APPROACH To better incorporate sustainability in our daily operations, we have updated our sustainability framework in FY2021. Our ESG disclosures are reported according to the four core pillars: Corporate & Business Integrity, Customer Growth, Environmental Excellence and Sustainable Workforce & Community.
19 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 SUSTAINABILITY APPROACH (Cont’d) In FY2021, we formally adopted four Sustainable Development Goals (“SDGs”) that reflect the Group’s contribution and commitment to the Sustainable Development Agenda. The four goals are aligned with our core sustainability pillars and consist of the following: STAKEHOLDER ENGAGEMENT We believe that clear and continuous communication with our stakeholders is crucial to build a robust and trusting partnership. We interact with our key stakeholders through various platforms to keep them abreast of their areas of concerns and interests. Employees Local Community Shareholders Media Customers Suppliers Regulatory/ Government SUSTAINABILITY STATEMENT CONT’D
20 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 KEY PERFORMANCE INDICATORS For this reporting period, we established four KPIs to measure the Group’s ESG performance and achievements. The KPIs are selected with our core sustainability pillars and will be tracked on an annual basis. 100% of staff to complete annual training on the Anti-Bribery and Corruption Policy To maintain a Net Promoter Score, with a target of above 50% by FY2025 To achieve 50% reduction in carbon emissions by 2030 To conduct 4 Corporate Social Responsibility (”CSR”) programmes throughout reporting period. Customer Growth Environmental Excellence Sustainable Workforce and Community Corporate and Business Integrity Achieved Achieved Achieved In-Progress SUSTAINABILITY GOVERNANCE STRUCTURE In this reporting period, we have restructured our sustainability governance for better implementation and accountability within the company. Our sustainability leadership consists of four tiers, each with its own role and responsibility as illustrated in the diagram below. Group CEO Responsible for overall implementation and management of GHL’s sustainability performance Sustainability Working Group Data collection and implementation of ESG initiatives at operational level Sustainability Committee Propose ESG initiatives and provide oversight over current sustainability practices Board of Directors Ultimate accountability for GHL’s Sustainability Strategy SUSTAINABILITY STATEMENT CONT’D
21 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 GHL MATERIALITY ASSESSMENT For this reporting period, GHL identified a total of 19 material sustainability matters, up from 14 in FY2020 as we expand the scope of our sustainability commitments. We also conducted a materiality assessment to identify the prioritisation of these matters, with the matrix illustrated below. In FY2021, material sustainability matters under the Corporate and Business Integrity pillar were ranked ‘Very High’ in the matrix, signifying its importance to GHL. High Importance to GHL’s Business Operations Importance to GHL’s Stakeholders Very High Medium 1 2 4 3 5 7 6 9 8 10 11 14 13 12 15 16 17 19 18 Corporate and Business Integrity 1. Customer Data Privacy 2. Cyber Security 3. Anti-Money Laundering Policy 4. Anti-Bribery and Corruption Policy 6. Whistleblowing Policy 9. Customer Due Diligence 5. Customer Experience 7. Technology and Innovation 8. Product and Service Quality 12. Customer Empowerment Event 10. Climate Change 15. Waste Management 19. Water Stewardship 11. Conducive Workplace 13. Talent Attraction and Retention 14. Employee Diversify and Inclusivity 16. Human Capital Development 17. Corporate Social Responsibility 18. Supply Chain Management Customer Growth Environmental Excellence Sustainable Workforce and Community SUSTAINABILITY STATEMENT CONT’D
22 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 KEY SUSTAINABILITY DISCLOSURES We have categorised all material sustainability matters under the four sustainability pillars, and have mapped each to the relevant stakeholder groups adopted SDGs as well as the management approach. UN SDGs Material Sustainability Matters Key Stakeholder Groups Key Highlights and Management Approach Corporate Business and Integrity Customer Data Privacy • Customers 1. Periodic review of Privacy Statement with Board oversight and is publicly available to stakeholders. 2. Suffered a data leak in GHL e-pay system which was rectified by our Information Technology (“IT”) Team. 3. Publicly disclosure of data breach incident in the EDGE newspaper to remain transparent with stakeholders. Cyber Security • Regulators/ Government 1. Compliance with the Payment Card Industry Security Standards Council (“PCISSC”). 2. Dedicated IT professionals with robust company policies/procedures. 3. Established a comprehensive playbook to identify and handle suspected cyber security threats. Anti-Money Laundering Policy • Regulators/ Government • Shareholders/ Investors 1. Maintained the Anti-Money Laundering, AntiTerrorism Financing and Proceeds of Unlawful Activities Policy. 2. Periodic review of Policy with audits conducted, which did not identify any risk areas or non-compliance. 3. Comprehensive employee training on customer due diligence and detection of suspicious transactions. Anti-Bribery and Corruption Policy • Regulators/ Government • Employees 1. On-going review of Anti-Bribery and Corruption (“ABC”) Policy to ensure alignment with Malaysian Anti-Corruption Commission (“MACC”). 2. Annual training on ABC Policy, with additional MACC training for GHL Malaysia employees. 3. Group-wide on-boarding assessment, with zero operational areas identified as high risk and zero incidents of corruption recorded. Whistleblowing Policy • Employees 1. Maintained the Whistleblowing Pol icy, with translations available in the respective language of GHL’s respective country of operations. 2. Recei ved no repor ts through the whistleblowing channel in FY2021 Customer Due Diligence • Customers 1. Established a Know-Your-Customer customer due diligence (“CDD”) procedure for customer identification and background check. 2. Conducted a review of the CDD process which uncovered a potential risk area that was amended promptly. SUSTAINABILITY STATEMENT CONT’D
23 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 KEY SUSTAINABILITY DISCLOSURES (Cont’d) UN SDGs Material Sustainability Matters Key Stakeholder Groups Key Highlights and Management Approach Customer Growth Customer Experience • Customers 1. Upgraded the Merchant Portal services with dashboard enhancements to improve user experience. 2. Maintained the Net Promoter Score to gauge customer satisfaction. 3. Engagement of new customers through monthly Welcome Calls and provision of a Terminal User Guide. Technology and Innovation • Customers 1. Launch of CARDit programme to enable small and medium enterprise transition from traditional cash transactions. Product and Service Quality • Customers 1. Regular review of merchant experience to inform GHL service quality monitoring. 2. Monthly Service-Level Agreements (“SLA”) Reports for banks to communicate GHL’s progress against terminal fault calls. Customer Empowerment Event • Customers • Media 1. Key study case for the Chartered Financial Analyst (“CFA”) Research Institute to present an overview of Group’s operations, contribution and achievements in the cashless ecosystem. 2. Group CEO speech during webinar series for Standards Chartered Corporate, Commercial & Institutional Banking Financial Analyst event. 3. Collaboration with Malaysian Digital Economic Corporate to present insights on digital disruption during Malaysia Tech Month 2021. Sustainable Workforce and Community Employee Diversity and Inclusivity • Employees 1. Diversity and inclusion training programme embedded into onboarding programme for new hires. 2. GHL Malaysia organised a Kolam Competition to celebrate Deepavali. 3. Zero incidents of discrimination recorded at GHL. Conducive Workplace • Employees 1. Board approval for the Labour & Human Rights Policy. 2. Regular Coffee Table and Townhall sessions for employees to voice any grievances in the workplace. 3. Comprehensive workplace pol icy and guideline to curb COVID-19 infections. 4. Distribution of a total of 663 giftbox to employees in conjunction with International Workers Day. 5. Curated workshops for GHL Wellness Month to promote physical and mental care amongst employees. SUSTAINABILITY STATEMENT CONT’D
24 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 KEY SUSTAINABILITY DISCLOSURES (Cont’d) UN SDGs Material Sustainability Matters Key Stakeholder Groups Key Highlights and Management Approach Sustainable Workforce and Community Talent Attraction and Retention • Employees 1. Emphasis on meritocracy during the recruitment and promotion process as outlined in the Gender Diversity Policy. 2. Fair remuneration to all employees in compliance with relevant local regulations. 3. Competitive employee benefits maintained from FY2020. Human Capital Development • Employees 1. Maintained the High Potential (“HIPO”) Programme to support the growth of talent staff for leadership positions. 2. Internship opportunities for fresh university graduates. 3. A total of 4302 training hours across the Group, amounting to an average of 4.74 hours per employee. Supply Chain Management • Suppliers 1. Continuous monitoring and planning by the Group Procurement team to minimise disruption with supply chain partners. 2. Annual assessment of Group’s suppliers, with criteria and expectations appended in contracts. 3. 95% of all contracts awarded to local suppliers, with the remaining 5% for overseas payment terminal manufacturers. Corporate Social Responsibility • Local Community • Employees • Media 1. Flagship Programme “Support Our Merchants & Care for Community” focused on raising donation drive to support GHL Merchants and local non-governmental organisations (“NGO”). 2. Contribution of funds to the Forest Research Institute Malaysia (“FRIM”), along with participation in tree-planting activities by GHL staff. SUSTAINABILITY STATEMENT CONT’D
25 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 KEY SUSTAINABILITY DISCLOSURES (Cont’d) UN SDGs Material Sustainability Matters Key Stakeholder Groups Key Highlights and Management Approach Environmental Excellence Climate Change • Regulators/ Government • Shareholders/ Investors 1. Establishment of a Climate Change & Risk Policy. 2. Identified cl imate risk in GHL Crisis Management Strategy Policy. 3. Collaboration with the CEO Action Network (“CAN”) to advocate for affirmative climate action amongst business leaders. 4. Partnered wi th Econinja on carbon sequestration programmes through tree and coral reef planting. 5. Transition from on-premise data centres to cloud computing via Amazon Web Services as it is more energy efficient and sources renewable energy. 6. Commenced installation of photovoltaic solar panels on headquarter office building as a pilot project. Waste Management • Regulators/ Government • Local Community 1. Amount of waste generated was negligible due to work-from-home arrangements. 2. Electronic waste from obsolete terminals is disposed by specialised waste authority according to national regulation and industry best practices. Water Stewardship • Local Community 1. Group’s water related risks in water-scarce region such as Australia is deemed negligible due to minimal size of its operations. 2. Total water consumption amounted to 2128 m3, a 51.4% reduction since FY2020 due to minimal staffing in office buildings. Note: More detailed disclosure of GHL’s management approach is available in our Sustainability Report 2021. CONCLUSION We have made significant strides integrating ESG in the Group’s business strategy through the establishment of our Sustainability Framework. Moving forward, we will continue strengthening our sustainability commitments to become an ESG-centric company that brings long-term value to all. SUSTAINABILITY STATEMENT CONT’D
26 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 DATUK KAMARUDDIN BIN TAIB Independent Non-Executive Chairman Malaysian, Age 65, Male Datuk Kamaruddin Bin Taib, was appointed as Independent Non-Executive Director of the Company on 26 April 2012 and was redesignated as Independent Non-Executive Chairman of the Company on 1 September 2012. He was a member of the Audit and Risk Committee and Chairman of Nomination and Remuneration Committee, subsequently resigned on 25 November 2021 and 18 February 2022 respectively. He holds a Bachelor of Science degree in Mathematics from the University of Salford, United Kingdom. Datuk Kamaruddin has significant experience in investment banking, corporate finance, mergers and acquisitions. His career started in 1980 with a leading Investment Bank in Malaysia. Subsequently, he served as a Director of several private companies and companies listed on Bursa Malaysia. He has personal experience in listing several companies on Bursa Malaysia. Apart from his vast experience of serving on the board of companies listed on Bursa Malaysia, his experience includes serving on the board of companies listed on the Stock Exchange of India as well as listed on Nasdaq (U.S.A.). Datuk Kamaruddin is currently an Independent Non-Executive Director of Fraser & Neave Holding Berhad, Great Eastern General Insurance (Malaysia) Berhad, RAM Holdings Berhad, Malaysia Smelting Corporation Berhad and FIDE Forum. Datuk Kamaruddin has stepped down as the Independent Non-Executive Chairman and Director of HSBC Amanah Malaysia Berhad on 31st December 2021 and subsequently on 1st January 2022 was appointed as an Independent Non-Executive Director of HSBC Bank Malaysia Berhad. He attended all eight (8) Board Meetings held during the financial year ended 31 December 2021. DIRECTORS’ PROFILE
27 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 DIRECTORS’ PROFILE CONT’D LOH WEE HIAN, SIMON Executive Vice Chairman Malaysian, Age 60, Male Mr. Loh Wee Hian, Simon, was appointed as Non-Independent Non-Executive Director on 28 December 2010. On 18 January 2011, he was designated as Non-Independent Non-Executive Chairman, and subsequently to Executive Chairman on 3 March 2011. On 1 September 2012, Simon was designated as Executive Vice Chairman, a position that he holds at present. Simon started his entrepreneurship in the telecommunications industry. He successfully secured the master distributor license for Ericsson mobile phones for Malaysia in 1989 through Telemas Corporation, a company that he founded and controlled. As the market for mobile phone distribution matured, Simon ventured out in 1999 and co-founded e-pay (M) Sdn. Bhd. (“e-pay”), a company that provides electronic top-ups for prepaid mobile phones and bill payments. In the ensuing years, e-pay became a leading electronic top-up processor in South East Asia and subsequently became the largest prepaid top-up network in Malaysia. In 2006, e-pay was listed on the Australian Stock Exchange (ASX) and Simon became its Executive Chairman. Simon was instrumental in merging GHL and e-pay in 2013, and has since created significant shareholder value. In recognition of his contributions in the technology sector, he won the prestigious Ernst & Young Entrepreneur of The Year Malaysia Award under the Technology Category in 2006. Aside from pursuing his entrepreneurship career, he is one of the founding members of the Young Entrepreneurs Organization Malaysia Chapter, a global, non-profit educational organization for business owners to develop themselves and grow globally. He does not hold any other directorship in public companies and listed issuers in Malaysia other than the Company. He attended all eight (8) Board Meetings held during the financial year ended 31 December 2021.
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