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GHL Systems Berhad
(293040-D)
Annual report 2015
A more detailed description of the year’s performance is as follows:-
DEFINITION OF BUSINESS SEGMENTS
The core revenue of the Group comprises; Shared Services, Solution Services and Transaction Payment Acquisition.
The activities within each of these core businesses are explained below:-
Shared Services
comprises mainly revenue derived from the sales, rental and maintenance of EDC terminals and
other card acceptance devices and the supply of cards to banks and other payment operators.
Solution Services
comprises mainly revenue derived from the sales and services of payment solutions which include
network devices and related software, outsourced payment networks, management/processing of payment and
loyalty cards, internet payment processing, and the development of card management systems.
Transaction Payment Acquisition (“TPA”)
comprises revenue derived from 2 distinct components
i) e-pay services which provides Telco prepaid and other top-up facilities and, bill collection services for consumers
(“reload and collection services”) and
ii) GHL’s direct merchant acquiring and card payment services (“card payment services”)
ceo
Report
TO OUR SHAREHOLDERS
2015 was a momentous year for GHL Systems Berhad (“GHL”) with several key turning points for the company this year.
The transformation of the Group’s business from non-annuity based, hardware sales to annuity based revenue streams
began in 2012. The objective then was to ensure greater predictability and sustainability in our revenue streams.
Today, with about 94% of our group revenue being annuity in nature, that objective has been clearly achieved (See
Figure 2 on page 14).
Secondly, with respect to the transformation of the Group into the TPA business (direct merchant acquirer), this is well
underway. The TPA business has two components; (a) the provision of Telco prepaid reload services and bill payment
and collections and, (b) the provision of electronic payment services for the retail market. The Group acquired e-pay
in 1Q2014 which jumpstarted its entry into the TPA business. e-pay is the market leader in in respect of (a) and this
component of the TPA business continues to grow strongly year on year. This growth is propelled by the Group’s
continued emphasis on expanding e-pay’s bill payment and collection services as well as widening its distribution
across the nation. e-pay’s progress can be seen in Figure 4 on page 16. In terms of the card payment services, this
is relatively newer. Post 2012, the Group operated as an independent sales organisation (ISO) for acquiring banks
under revenue sharing terms. While this activity contributed to an increase in the company’s annuity revenue, growth
was limited by acquiring banks’ preference to contract with larger merchants only. This year however, the Group
implemented its TPA business (See definition of business segments) with a major bank in Malaysia in June 2015. This
TPA business specifically targets the small business segment which we internally estimate to be over 90% of the total
business population. The progress of 6 months of this TPA activity in 2015 can be seen in Figure 5 on page 16. Given
that the Group will expand its acquiring relationships in Malaysia and Philippines in 2016, we expect growth in the TPA
business to continue to be strong in the years ahead.
PAST
- Hardware reseller
- Software developer
PRESENT
- ISO for Banks
- End-to end POS deployment
for Banks on a rental and
revenue share model
- Provider of telco prepaid
reloads and bill collection
services in Malaysia
- TPA Business (1 Bank in
Malaysia)
FUTURE
- TPA Business (Malaysia 3
Banks, Philippines 2 Banks, 2
Telcos)
- Telco prepaid and other
reloads and bill collection
services in Malaysia
Evolution of your Company