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) C 4IBSFE 4FSWJDFT 4FHNFOU Shared Services segment revenue grew by 12.1% YoY to RM130.5 million (2021: RM116.7 million), due to higher EDC terminals sales and deployment as the result of relaxation of COVID-19 lockdown measures and improvement in capital expenditure spending by the banking sector in 2022. The Shared Services segment however was also impacted by lower rental and maintenance revenue due to terminal retrievals by banks from its merchants that were affected by the lockdowns. D 4PMVUJPOT 4FSWJDFT 4FHNFOU Solutions Services revenue declined by 24.1% to RM11.0 million (2021: RM14.5 million), due to slower investment spending by customers. This segment historically contributes less than 5% of total group revenue. 1FSGPSNBODF CZ (FPHSBQIJDBM -PDBUJPO Group revenue for 2022 was up 14.0% YoY to RM410.4 million (2021 – RM360.2 million) with growth driven by the TPA segment across all three key markets of Malaysia, Philippines and Thailand. The Shared Services segment was up 11.9% and Solution Services segment was down -24.3% respectively due to lower rental revenue in Malaysia and Philippines and a one-off project revenue for Solution Services recognised in the same period in 2021. Despite the improvement in top-line revenue, the Group’s gross profit margins declined to 34.8% (2021 – 38.9%) due to business pillar, payment type and merchant type mix. Despite the lower GP margin pre-tax profit grew slightly lower of RM40.6 million compared to RM40.7 million in 2021. Net profit after tax and minority interest in 2022 was flat at RM28.3 million compared to the same period last year for 2021 of RM28.2 million and a marginally lower effective tax rate of 30.2% in 2022 (2021 – 30.8%). Malaysia’s operations, which is the largest in the group, contributed 79.2% (2021 – 81.2%) of group revenue and registered a 11.1% 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. Philippines’ revenue was 16.2% YoY higher at RM55.9 million (2021 – RM48.2 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 was eased in line with other countries within ASEAN lead to more consumers returning to the High street. Thailand recorded a strong recovery in revenue of 56.4% to RM28.3 million from RM18.1 million in FY2021 driven strong EDC sales in its Shared services pillar aided by a recovery in TPA transactions. The TPA segment, which grew 84.5% YoY, remained affected by border closures which impacted tourist arrivals and hence the group’s cross border e-wallet segment. Thailand’s TPA revenue has yet to recover to its pre-pandemic 2019 levels and hence have room to grow further in 2023 given that China has relaxed international travel for its citizenry in early 2023. Other countries remain the smallest contributor to group operations at RM1.3 million of group turnover compared to FY2021’s turnover of RM1.5 million. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
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