GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2022 MANAGEMENT DISCUSSION AND ANALYSIS 07&37*&8 0' 5)& (3061 T #64*/&44 "/% 01&3"5*0/4 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 419,400 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 grown rapidly, resulting in a higher proportion of recurring transactional income and a good balance 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. %*4$644*0/ "/% "/"-:4*4 0' 5)& '*/"/$*"- 3&46-54 "/% $0/%*5*0/4 Analysis of Financial Results 3FWFOVF Group revenue improved 14.0% YoY to RM410.4 million (2021 – RM360.2 million) post the COVID-19 lockdowns which were progressively relaxed in 2022. TPA and Shared Services business pillars grew 17.4% and 11.9% respectively whereas Solutions Services recorded a 24.3% decline. The TPA business segment remained the largest and accounted for 65.5% of group revenue, and geographical wise, all the three markets, Malaysia, Philippines and Thailand 2022 revenue grew year-on-year. /FU 1SPmU Pre-tax profits decline 0.3% to RM40.6 million as compared to RM40.7 million a year ago. Pre-tax margins narrowed to 9.9% (2021 – 11.3%), impacted by lower gross margins from the Shared services segment. Net profit after tax and minority interest was flat at RM28.3 million (2021 – RM28.2 million). 5BYBUJPO The effective tax rate for 2022 was 30.2% (2021 – 30.8%) which was higher than the statutory tax rate mainly due to non-tax allowable expenses. Post-tax and minority interest profit margins were lower at 6.9% in 2022 as compared to 7.8% in 2021 due to lower gross profit margins and slightly higher effective tax rate in 2022.
RkJQdWJsaXNoZXIy NDgzMzc=