GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2022 1&3'03."/$& #: #64*/&44 4&(.&/5 "/% (&0(3"1): (Cont’d) 1FSGPSNBODF CZ (FPHSBQIJDBM -PDBUJPO (Cont’d) As at end of December 2022, the group’s payment touchpoints across the region stood at 419,400 points, a 5.4% YoY growth overall whereas TPA touchpoints grew 7.9%. This large merchant touchpoint base has enabled the group to process a TPV of RM26.2 billion in payment transactions (12.9% YoY growth) Revenue By Country (RM mil) 0 50 100 150 200 300 250 350 450 400 360.2 410.4 48.2 55.9 2021 2022 18.1 28.3 1.5 1.3 Philippines Thailand Others Group Malaysia 292.4 324.9 ,/08/ 3*4,4 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 RM84,873 nett chargeback losses attributable to merchant performance risk in 2022 recorded for Malaysia, Thailand, Philippines and Indonesia. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
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