MANAGEMENT DISCUSSION AND ANALYSIS CONT’D 3.0 PERFORMANCE BY BUSINESS SEGMENT AND GEOGRAPHY (Cont’d) 3.1 Performance by Business Segment (Cont’d) (a) Transaction Payment Acquisition (“TPA”) segment (Cont’d) Reload and Collection Services e-pay is the leading provider of Reload and Collection Services in Malaysia, boasting an extensive network of approximately 61,000 acceptance points nationwide. These points encompass all major petrol chains, prominent convenience store chains, and general retailers. The e-pay brand is widely recognised among consumers across Malaysia. With over two decades of experience, e-pay unequivocally holds the position of market leader in Malaysia within the reload and collection services industry segment. e-pay’s Transaction Payment Value grew 7.3% in 2023 to RM5.93 billion, generating a revenue of RM139.6 million. The gross revenue margin declined by 0.18 pp to 2.35% in the year due to changes in the product mix as well as the merchant mix. e-pay (Reload and Collection services) (All stated in RM’million unless stated otherwise) 2022 2023 Change Transaction Payment Value 5,523.6 5,928.2 7.3% Gross Revenue 139.5 139.6 0.1% Gross Revenue / Transaction Payment Value (Note 1) 2.53% 2.35% -0.18 pp Gross Profit 44.7 44.3 -0.9% Gross Profit / Transaction Payment Value (Note 1) 0.81% 0.75% -0.06 pp Merchant Footprint - e-pay Only (Thousands) 54.9 61.3 11.8% Note 1 - Gross Revenue or Gross Profit respectively divided by the Transaction Payment Value expressed as a % (b) Shared Services Revenue for the Shared Services segment grew by 2.2% YoY to RM133.4 million (2022: RM130.5 million) attributed to higher EDC sales in Malaysia, which was offset by lower hardware sales in Thailand and a decline in rental revenue collected in Malaysia and the Philippines. (c) Solution Services Revenue for the Solution Services segment was up 26.4% YoY to RM13.9 million (2022: RM11.0 million) attributed to higher software sales in the Philippines and Thailand, along with higher maintenance services revenue in Malaysia. 3.2 Performance by Geographical Location In 2023, the Group’s revenue grew 12.2% YoY to RM460.4 million compared to RM410.4 million in 2022. This growth was primarily attributed to the growth in the TPA segment, which performed exceptionally well across the key markets of Malaysia, the Philippines, and Thailand. The Shared Services segment experienced a 2.2% increase, propelled by higher EDC sales in Malaysia. The Solution Services segment recorded a notable growth of 26.4%, attributed to increased maintenance services revenue in Malaysia and higher software sales in the Philippines and Thailand markets. Operations in Malaysia contributed RM355.6 million in revenue, which accounted for 77.2% of the Group’s total revenue. This represented a YoY growth of 9.4%, driven by the TPA segment’s strong performance, fuelled by increased transaction volume and value. In 2023, Shared Services experienced a 7.8% YoY growth due to higher hardware sales. Similarly, the Solution Services segment exhibited YoY growth, primarily attributed to increased maintenance fees collected as compared to 2022. 12 GHL SYSTEMS BERHAD 199401007361 (293040-D)
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