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
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