GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2022 1&3'03."/$& #: #64*/&44 4&(.&/5 "/% (&0(3"1): (Cont’d) 1FSGPSNBODF #Z #VTJOFTT TFHNFOU (Cont’d) B 5SBOTBDUJPO 1BZNFOU "DRVJTJUJPO i51"w 4FHNFOU 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 in-store and online card payment and e-wallet payment acceptance (“electronic payment services”). With both sub-segments combined, the TPA business grew 17.4% to RM268.9 million in 2022 (2021 – RM229.0 million), contributing 65.5% of total 2022 revenue (2021 – 63.6%). 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 36.1% YoY to RM129.5 million (2021 – RM95.1 million) whereas the e-pay business grew at a lower rate of 4.1% to RM139.5 million in 2022 from RM133.9 million in 2021. There remains considerable untapped opportunity within ASEAN for the migration to cashless transactions, 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: - J F QBZ SFMPBE BOE DPMMFDUJPO TFSWJDFT e-pay is the largest provider of reload and collection services in Malaysia. It has approximately 54,900 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 the market leader in Malaysia within this industry segment. A full year’s comparison of key data between 2022 and 2021 relating to the e-pay business is found in Table 1 below. The transaction payment value by e-pay grew by 13.3% in 2022. The Gross Revenue/Transaction Value declined by 8.1% to 2.53% in the year due to changes in the product mix as well as the merchant mix in which these transactions occurred. 5BCMF F QBZ (All stated in RM'millions unless stated otherwise) 2022 DIBOHF Transaction Payment Value 4,876.2 5,523.6 13.3% Gross Revenue 133.9 139.5 4.1% Gross Revenue/Transaction Payment Value (Note 1) 2.75% 2.53% -8.1% Gross Profit 45.0 44.7 -0.6% Gross Profit/Transaction Payment Value (Note 1) 0.92% 0.81% -12.2% Merchant Footprint - e-pay Only (Thousands) 49.0 54.9 11.9% Note 1 - Gross Revenue or Gross Profit respectively divided by the Transaction Payment Value expressed as a % MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
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