E-Pay Asia Share Discussion Threads

[monkey puzzle] 16/9/2013 17:48

I think you need to contact a broker in australia to trade the shares.

[fizzy2] 16/9/2013 17:14

Can someone advise me how to sell my shares,they were held in a nominee account but I now have the paper certificate.
Thanks

[freddie ferret] 10/9/2013 14:40

British pound has started to strengthen against the AU$, I think this movement is chart significant IMHO. :-8))

[freddie ferret] 10/9/2013 14:33

Depends on whether they were buyers or sellers.
Perhaps we are going to have another large divi shortly.
No new announcements.

[exile] 10/9/2013 08:16

Imagine what would happen to the price with a bit of volume.

[monkey puzzle] 10/9/2013 06:18

Up well on small volume...excellent.

[exile] 10/9/2013 04:43

Up again !!!!

[monkey puzzle] 04/9/2013 17:46

Well I only skimmed them but they looked ok to me + the CEOs comments were very bullish so happy.

[freddie ferret] 04/9/2013 17:36

Any comments on those results??

[monkey puzzle] 03/9/2013 18:07

I am always here!

[freddie ferret] 03/9/2013 16:37

No monkeys about it seems.

[freddie ferret] 03/9/2013 15:54

EPY was never anywhere near dead, just not noticed and not popular amongst investors. It has always as far back as I can remember been sound as a business even if a little unexciting, rampers expect too much from a share, and then depart. The results above are very good, the question is are there grounds to expect the improvement to continue??

I need to look at those results in more detail before commenting.

[freddie ferret] 03/9/2013 15:53

EPY was never anywhere near dead, just not noticed and not popular amongst investors. It has always as far back as I can remember been sound as a business even if a little unexciting, rampers expect too much from a share, and then depart. The results above are very good, the question is are there grounds to expect the improvement to continue??

I need to look at those results in more detail before commenting.

[boadicea] 03/9/2013 14:15

EPY is a shre that I had mentally written off and it seems to be coming back from the (near)dead.
Don't often get that, but I do have another (SRT) and EPY still has some way to go to catch it.

[freddie ferret] 02/9/2013 17:27

Sorry about the length of the above post but it is very very good news. It explains a lot about insider trading!!

[freddie ferret] 02/9/2013 17:24

ASX: EPY
26 August 2013
e-pay Asia Limited ABN 99 089 227 887
("e-pay Asia", the "Company" or the "Group")
Interim Results for the six months ended 30 June 2013
Highlights:

5.3% increase in consolidated revenue

127.8% increase in net profit after tax attributable to members

Strong improvement in operating margins due to a better sales mix of higher margin
products on the back of stable revenue growth.
Simon Loh, Executive Chairman, said;
"The interim results period under review saw a financial performance of +5.3% yoy increase in
revenue with a sterling +127.8% yoy improvement in net profit after tax attributable to members
compared to same period in 2012. The company recorded a significantly higher net profit after tax
attributable to members. This was due in part to a higher proportion of sales transactions of higher
margin products and we managed to lower operating costs."
"We are confident that we will be able to maintain and further improve our performance as we
continue to push sales of higher margin products as well as strategically growing our footprint to
maintain our undisputed Number One electronic payment service provider position in Malaysia.
Our investment in our time and marketing efforts in new revenue streams is beginning to bear fruit
as shown in this interim period's performance. We are particularly excited in the area of media,
entertainment and payments to further expand our coverage and this will lay the foundation for
future profit growth."
ASX Appendix 4D
Half-year report for the six months ended 30 June 2013
e-pay Asia Limited ABN 99 089 227 887
(ASX:EPY)
Results for announcement to the market
Six months period
ended 30 June 2013
$
Change
%
1.1 Revenue
1.2 EBITDA
(Earnings before finance costs, depreciation and tax)
1.3 Profit after income tax
1.4 Net profit after tax attributable to members
1.5 Basic earning per share
1.6 Diluted earning per share
1.7 Dividend
1.8 Net tangible assets per share
5,844,101
2,192,356
1,453,181
1,025,713
1.80 cents
1.80 cents
-
27 cents
5.3
35.2
61.9
127.8
127.8
127.8
-
22.7
e-pay Asia Limited ABN 99 089 227 887
Interim Report - 30 June 2013
Contents
Page
Directors' Report 2
Interim Financial Report
Auditor's Independence Declaration 4
Consolidated Statement of Profit or Loss and Other Comprehensive Income 5
Consolidated Statement of Financial Position 6
Consolidated Statement of Changes in Equity 7
Consolidated Statement of Cash Flows 8
Notes to the Consolidated Financial Statements 9
Directors' Declaration 21
Independent Review Report to the Members 22
This interim financial report does not include all the notes of the type normally included in an
annual financial report. Accordingly, this report is to be read in conjunction with the annual report
for the year ended 31 December 2012 and any public announcements made by e-pay Asia
Limited during the interim reporting period in accordance with the continuous disclosure
requirements of the Corporations Act 2001.
Page 2
e-pay Asia Limited ABN 99 089 227 887
Directors' Report
30 June 2013
Directors' Report
Your directors present the financial report on the consolidated group consisting of e-pay Asia
Limited and the entities it controlled for the half-year ended 30 June 2013.
Directors
The following persons were directors of e-pay Asia Limited during or since the end of the half
year:
Simon Loh
Chih Ming Yap
CY Chin
Singam Sabaratnam
Thomas J. Schnitker
Review of operations
For the 6 month period under review, the Group recorded revenues of $5.8m (2012: $5.5m) with
an EBITDA of $2.2m (2012: $1.6m). Net profit after tax attributable to members was $1.03m
(2012: $0.45m) while diluted earnings per share were 1.80 cents (2012: 0.79 cents).
This interim period saw an increase in sales of higher margin products (bill payment and content
payment) as well as higher utilisation of our assets. This improvement of sales mix has led to a
significant increase in net profit after tax attributable to members significantly as these products
carry better margins. Our branding and marketing initiatives carried out were successful in
promoting these products to a targeted group of end consumers, namely the Generation Y youth
and matured adults. Moving forward, we will continue to keep our fingers on the pulse and engage
with this new target segment to further understand their needs and preferences. This would
enable us to introduce more relevant and higher margin products to them. This target segment is
growing as younger adults increasingly join the workforce and their propensity for impulse buying
bodes well for our products.
We have also embarked on efforts to improve the productivity of our terminals assets. Through
marketing activities and retailer education, we have managed to increase the average sales per
terminal significantly which has improved our margins and bottom line performance. These efforts
will continue as we introduce more products into our terminals as well as working closely with our
retailers to promote our products.
The Company will continue to grow its revenue by identifying the right locations for our terminals
and leveraging on focused marketing plans especially growing our reach into the smaller towns
and rural areas. The Company is also working on new sales platforms such as web, mobile and
phones and tablets aiming to deliver products to larger group of consumers at a lower cost. We
will continue to further expand our products lines, such as bill payments, content payments, debit
and credit card payments, loyalty program fulfilment services as well as remittance services with
strategic partners.
Page 3
e-pay Asia Limited ABN 99 089 227 887
Directors' Report
30 June 2013
Outlook
The Company believes that this interim period's performance will continue to improve as we
introduce new high margin products (for example, bill payment, content payment, loyalty program
fulfilment services and remittance) as well as strongly promoting existing ones through our retailer
network. Based on industry trends, our sales performance for these products will continue to
improve driven by consumers' awareness of their availability in our retailer network. We will also
continue to strategically grow our footprint on high foot traffic areas and maintain our dominance
in this space. We will also embark on further establishing our brand in smaller towns and rural
areas to provide a one stop convenience for consumers to settle their bill payments. The smaller
towns often have a higher percentage of cash usage as opposed to electronic payments which
would benefit our payment infrastructure.
In addition, the Company will explore new revenue streams, in the space of media, entertainment
and payment, to further improve our profitability and performance. These new revenue streams
will leverage on our existing assets which will enable quick deployment as well as better and
faster returns. Our existing network of more than 18,000 point of sales is a powerful tool for
companies that wish to expand their bill collection as well as sales points for their products.
Auditor's Declaration
The lead auditor's independence declaration under Section 307C of the Corporations Act 2001 is
set out on page 4 for the half-year ended 30 June 2013.
This report is signed in accordance with a resolution of the Board of Directors.
........................
Simon Loh
Dated this 26 of August 2013
Page 4
Page 5
e-pay Asia Limited ABN 99 089 227 887
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the half-year ended 30 June 2013
Consolidated Group
30 June 2013 30 June 2012
Note $ $
Revenue 5,844,101 5,549,358
Employee benefits expense (1,997,841) (1,953,200)
Advertising and marketing promotions (307,321) (671,469)
Accommodation and travelling expenses (87,159) (114,177)
Telephone and utility charges (171,296) (211,978)
Professional and consultancy fees (85,064) (274,838)
Operating lease rentals (334,428) (114,086)
Terminal installation and maintenance fees (79,010) (158,643)
Other operating expenses (558,120) (430,075)
Share of loss of investments accounted for using
the equity method
(31,506)
-
Profit before finance costs, depreciation and
amortisation, and income tax
2,192,356
1,620,892
Finance costs (136,867) (81,715)
Impairment of plant and equipment - (69)
Depreciation and amortisation expenses (245,858) (257,249)
Profit before income tax 1,809,631 1,281,859
Income tax expense (356,450) (384,173)
Net profit for the half-year 1,453,181 897,686
Other comprehensive income after income tax
Items that may be reclassified subsequently
to profit or loss:
Exchange income/(loss) on translating foreign
controlled entities
1,409,941
(60,150)
Other comprehensive income/(loss) for the
half-year, net of tax
1,409,941
(60,150)
Total comprehensive income for the half-year 2,863,122 837,536
Profit attributed to:
Members of the parent entity 1,025,713 450,183
Non-controlling interests 427,468 447,503
1,453,181 897,686
Total comprehensive income attributed to:
Members of the parent entity 1,897,567 415,242
Non-controlling interests 965,555 422,294
2,863,122 837,536
Earnings per share:
Basic earnings per share 1.80 cents 0.79 cents
Diluted earnings per share 1.80 cents 0.79 cents
The accompanying notes form part of these financial statements.
Page 6
e-pay Asia Limited ABN 99 089 227 887
Consolidated Statement of Financial Position
As at 30 June 2013
Consolidated Group
Note 30 June 2013 31 December 2012
$ $
ASSETS
CURRENT ASSETS
Cash and cash equivalents 3 7,769,732 5,447,167
Trade and other receivables 16,251,964 5,124,319
Inventories 11,163,881 11,402,624
Other current assets 527,052 463,045
TOTAL CURRENT ASSETS 35,712,629 22,437,155
NON-CURRENT ASSETS
Plant and equipment 963,278 1,025,938
Intangible assets 59,137 59,684
Investments accounted for using the equity method 16,753 7,622
Prepayments 1,351,651 1,344,697
Financial assets 2,074,200 1,858,800
TOTAL NON-CURRENT ASSETS 4,465,019 4,296,741
TOTAL ASSETS 2 (ii) 40,177,648 26,733,896
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 10,713,632 9,583,157
Borrowings 13,839,101 4,088,294
Current tax liabilities 163,618 121,755
TOTAL CURRENT LIABILITIES 24,716,351 13,793,206
NON-CURRENT LIABILITIES
Deferred tax liabilities 124,452 111,528
Borrowings 76,405 119,854
TOTAL NON-CURRENT LIABILITIES 200,857 231,382
TOTAL LIABILITIES 2 (iii) 24,917,208 14,024,588
NET ASSETS 15,260,440 12,709,308
EQUITY
Issued capital 14,607,663 14,607,663
Reserves (243,710) (1,115,564)
Retained losses (4,382,147) (5,407,860)
Parent entity interest 9,981,806 8,084,239
Non-controlling interests 5,278,634 4,625,069
TOTAL EQUITY 15,260,440 12,709,308
The accompanying notes form part of these financial statements.
Page 7
e-pay Asia Limited ABN 99 089 227 887
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2013
Share Capital
Ordinary
shares
Equity
contribution
Conversion
rights on
convertible
notes
Retained
Losses
Options
Reserve
Foreign
Currency
Translation
Reserve
Non-
Controlling
Interests Total
$ $ $ $ $ $ $ $
Balance at
1 January 2013 14,018,363 451,000 138,300 (5,407,860) - (1,115,564) 4,625,069 12,709,308
Profit attributable to
members of the parent
entity - - - 1,025,713 - - - 1,025,713
Profit attributable to noncontrolling
interest - - - - - - 427,468 427,468
Interim dividend paid to
non-controlling
interests - - - - - - (311,990) (311,990)
Other comprehensive
income for the half-year - - - - - 871,854 538,087 1,409,941
Balance at
30 June 2013 14,018,363 451,000 138,300 (4,382,147) - (243,710) 5,278,634 15,260,440
Balance at
1 January 2012 14,018,363 451,000 138,300 (3,700,091) 1,535,374 (1,124,518) 3,859,257 15,177,685
Profit attributable to
members of the parent
entity - - - 450,183 - - - 450,183
Profit attributable to noncontrolling
interest - - - - - - 447,503 447,503
Other comprehensive
loss for the half-year - - - - - (34,941) (25,209) (60,150)
Balance at
30 June 2012 14,018,363 451,000 138,300 (3,249,908) 1,535,374 (1,159,459) 4,281,551 16,015,221
The accompanying notes form part of these financial statements.
Page 8
e-pay Asia Limited ABN 99 089 227 887
Consolidated Statement of Cash Flows
For the half-year ended 30 June 2013
Note Consolidated Group
30 June 2013 30 June 2012
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 296,003,704 299,739,490
Payments to suppliers and employees (294,574,290) (296,084,288)
Interest received 32,340 108,104
Finance costs (136,867) (81,587)
Income tax paid (330,808) (169,596)
Net cash provided by operating activities 994,079 3,512,123
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of plant and equipment 95,759 33,263
Payments for plant and equipment (159,854) (305,767)
Advance payment for purchase of noncontrolling
interest in controlled entity
(8,000,000)
-
Net cash used in investing activities (8,064,095) (272,504)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to non-controlling interests (311,990) (1,974,086)
Proceeds from borrowings 49,968,730 18,629,450
Repayments of borrowings (40,707,530) (16,907,400)
Loan advanced to joint venture entity (7,922) -
Net cash from/(used in) financing activities 8,941,288 (252,036)
Net increase in cash held 1,871,272 2,987,583
Cash and cash equivalents at beginning of
financial period
5,447,167
9,896,007
Effect on exchange rates on cash holdings in
foreign currencies
451,293
(10,136)
Cash and cash equivalents at end of financial
period 3 7,769,732 12,873,454
The accompanying notes form part of these financial statements.
Page 9
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 1: Summary of Significant Accounting Policies
(a) Basis of preparation
These general purpose financial statements for the interim half-year reporting period ended 30
June 2013 have been prepared in accordance with the requirements of the Corporations Act 2001
and Australian Accounting Standards including AASB 134: Interim Financial Reporting. The
Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
This interim financial report is intended to provide users with an update on the latest annual
financial statements of e-pay Asia Limited and its controlled entities (the Group). As such it does
not contain information that represents insignificant changes occurring during the half-year within
the Group. It is therefore recommended that these financial reports be read in conjunction with the
financial statements of the Group for the year ended 31 December 2012, together with any public
announcements made during the half-year.
The same accounting policies and methods of computation have been followed in this interim
financial report as were applied in the most recent annual financial statements, except in relation
to some of the matters discussed at Note 1(b) below.
(b) New and Revised Accounting Requirements Applicable to the Current Half-Year
Reporting Period
For the half-year reporting period to 30 June 2013, a number of new and revised accounting
standard requirements became mandatory for the first time. A discussion of these new and
revised requirements and their impact on the Group is provided below.
(i) Consolidated financial statements, joint arrangements and disclosure of interests in other
entities
The Group has adopted the following new and revised Australian Accounting Standards from
1 January 2013 together with consequential amendments to other Standards:

AASB 10: Consolidated Financial Statements;

AASB 127: Separate Financial Statements (August 2011);

AASB 11: Joint Arrangements;

AASB 128: Investments in Associates and Joint Ventures (August 2011);

AASB 12: Disclosure of Interests in Other Entities;

AASB 2011-7: Amendments to Australian Accounting Standards arising from the
Consolidation and Joint Arrangements Standards; and

AASB 2012-10: Amendments to Australian Accounting Standards – Transition Guidance
and Other Amendments.
These Standards are mandatorily applicable from 1 January 2013 and thus, became
applicable to the Group for the first time in the current half-year reporting period. The Group
has applied these Accounting Standards retrospectively in accordance with AASB 108:
Accounting Policies, Changes in Accounting Estimates and Errors and the specific transition
requirements in AASB 10 and AASB 11. The effects of initial application of these Standards in
the current half-year reporting period are as follows:
Page 10
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 1: Summary of Significant Accounting Policies (continued)

Consolidated financial statements:
AASB 10 provides a revised definition of control and additional application guidance so
that a single control model will apply to all investees. Revised AASB 127 facilitates the
application of AASB 10 and prescribes requirements for separate financial statements of
the parent entity. On adoption of AASB 10, the assets, liabilities and non-controlling
interests related to investments in businesses that are now assessed as being controlled
by the Group, and were therefore not previously consolidated, are measured as if the
investee had been consolidated (and therefore applied acquisition accounting in
accordance with AASB 3: Business Combinations) from the date when the Group obtained
control of that investee on the basis of the requirements in AASB 10.
Upon the initial application of AASB 10, retrospective restatement of financial statement
amounts of the year that immediately precedes the date of initial application (ie 2012) is
necessary. When control is considered to have been obtained earlier than the beginning of
the immediately preceding year (ie pre-1 January 2012), any difference between the
amount of assets, liabilities and non-controlling interests recognised and the previous
carrying amount of the investment in that investee is recognised as an adjustment to
equity as at 1 January 2012.
Although the first-time application of AASB 10 (together with the associated Standards)
caused certain changes to the Group's accounting policy for consolidation and determining
control, it did not result in any changes to the amounts reported in the Group's financial
statements as the "controlled" status of the existing subsidiaries did not change, nor did it
result in any new subsidiaries being included in the Group as a consequence of the
revised definition. However, the revised wording of accounting policy for consolidation is
set out in Note 1(c).

Joint arrangements:
AASB 11 requires joint arrangements to be classified as either "joint operations" (where
the parties that have joint control of the arrangement have rights to the assets and
obligations for the liabilities) or "joint ventures" (where the parties that have joint control of
the arrangement have rights to the net assets of the arrangement). Revised AASB 128
facilitates the application of AASB 11 and incorporates guidance relating to the equity
method of accounting. Joint ventures are always required to be accounted for using the
equity method under AASB 11. The proportionate consolidation method is no longer
permitted. However, this will not have any impact on the Group's financial statements as
the Group's interest in joint ventures is currently accounted for using the equity method of
accounting.
When changing from the proportionate consolidation method to the equity method upon
initial application of AASB 11, investments in joint ventures are required to be recognised
as at the beginning of the immediately preceding year (ie as at 1 January 2012) and
measured as the aggregate of the carrying amounts of the assets and liabilities that the
investor had previously proportionately consolidated, including any goodwill arising from
Page 11
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 1: Summary of Significant Accounting Policies (continued)
acquisition. This amount is regarded as the deemed cost of the investment at initial
recognition, and is subject to impairment testing at that point in time. If aggregating all
previously proportionately consolidated assets and liabilities results in a negative net asset
amount, the investor recognises a liability to the extent that it has a legal or constructive
obligation with respect to the negative net assets, and recognises any balance of the
negative net assets as an adjustment to opening retained earnings.
Although the first-time application of AASB 11 (together with the associated Standards)
caused certain changes to the Group's accounting policy for accounting for joint ventures
and classification of joint arrangements, the directors have determined that such changes
did not have any significant impact on the amounts reported in the Group's financial
statements, mainly because the Group's classification of joint arrangements did not
change and the Group's interest in joint ventures is currently accounted for using the
equity method. However, the revised accounting policy for joint arrangements is set out in
Note 1(d).

Disclosure of interest in other entities:
AASB 12 is the Standard that addresses disclosure requirements of AASB 10, AASB 11,
AASB 127 and AASB 128. New disclosures, that are material to this interim financial
report and associated with the Group's interests in subsidiaries and joint arrangements as
prescribed by AASB 12 have been set out in Note 4.
(ii) Fair value measurements and disclosures
The Group has adopted AASB 13: Fair Value Measurement and AASB 2011–8: Amendments
to Australian Accounting Standards arising from AASB 13 from 1 January 2013 together with
consequential amendments to other Standards. These Standards are mandatorily applicable
from 1 January 2013 and thus, became applicable to the Group for the first time in the current
half-year reporting period. AASB 13 sets out a comprehensive framework for measuring the
fair value of assets and liabilities and prescribes enhanced disclosures regarding all assets
and liabilities measured at fair value. New disclosures prescribed by AASB 13 that are not
material to this interim financial report.
(iii) Other
Other new and amending Standards that became applicable to the Group for the first time
during this half-year reporting period are as follows:

AASB 2012–2: Amendments to Australian Accounting Standards – Disclosures –
Offsetting Financial Assets and Financial Liabilities and AASB 2012–5: Amendments to
Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle.
These Standards make changes to presentation and disclosure requirements, but did not
affect the Group's accounting policies or the amounts reported in the financial statements.
Page 12
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 1: Summary of Significant Accounting Policies (continued)

AASB 119: Employee Benefits (September 2011) and AASB 2011–10: Amendments to
Australian Accounting Standards arising from AASB 119 (September 2011).
These Standards did not affect the Group's accounting policies or the amounts reported in
the financial statements, mainly because the Group does not have defined benefit plan
assets or obligations.
(c) Principles of Consolidation
The parent entity and its subsidiaries are collectively referred to as the "Group". The parent of this
Group is e-pay Asia Limited. Entities (including structured entities) over which the parent (or the
Group) directly or indirectly exercises control are called "subsidiaries". The consolidated financial
statements incorporate the assets, liabilities and results of all subsidiaries. The Group controls an
entity when the Group is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity. A list of the
Group's subsidiaries is provided in Note 4.
The assets, liabilities and results of subsidiaries are fully consolidated into the financial
statements of the Group from the date on which control is obtained by the Group. The
consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany
transactions, balances and unrealised gains or losses on transactions between group companies
are fully eliminated on consolidation. Accounting policies of subsidiaries have been changed and
adjustments made where necessary to ensure uniformity of the accounting policies adopted by
the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are referred to
as "non-controlling interests". The Group recognises any non-controlling interests in subsidiaries
on a case-by-case basis either at fair value or at the non-controlling interests' proportionate share
of the subsidiary's net assets. Non-controlling interests are shown separately within the equity
section of the statement of financial position and statement of profit or loss and other
comprehensive income.
(d) Interests in Joint Arrangements
A "joint arrangement" is an arrangement in which the Group shares control jointly with one or
more other parties by way of a contractual agreement and unanimous consent is required from all
parties to the agreement with respect to decisions about the relevant activities of the
arrangement.
A joint arrangement that is structured through a separately identifiable entity and provides the
Group and the other parties to the arrangement with rights to the net assets of the entity is
classified as a "joint venture" (JV) by the Group. The Group's interests in joint ventures are
accounted for using the equity method of accounting and classified as "investments accounted for
using the equity method" in the Group's statement of financial position. In accordance with the
equity method, an investment in a joint venture is initially recognised at cost and adjusted
thereafter for any post-acquisition changes in the Group's share of net assets of the joint venture,
Page 13
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 1: Summary of Significant Accounting Policies (continued)
including operating profits or losses, other comprehensive income and other changes in the joint
venture's equity. Distributions received from a joint venture are deducted from the carrying
amount of the investment. The Group's share of the profit or loss of a joint venture is presented in
the Group's statement of profit or loss as "share of profit of investments accounted for using the
equity method". When the Group's share of losses in a joint venture equals the carrying amount of
its interest in the joint venture (which includes any long-term interests that, in substance, form part
of the Group's net investment in the joint venture), the Group does not recognise any further
losses in respect of the joint venture unless it has incurred obligations or made payments on
behalf of the joint venture. The accounting policies of joint ventures are changed where necessary
to ensure consistency with the accounting policies adopted by the Group.
Where a joint arrangement has contractual agreements whereby the parties to the arrangement
have direct interests in each asset and direct exposure to each liability of the arrangement, such
an arrangement is classified by the Group as a "joint operation" (JO), irrespective of whether the
arrangement is structured through a separate vehicle. The Group's interests in the assets,
liabilities, revenue and expenses of joint operations are included in the respective line items of the
Group's financial statements. The Group recognises gains and losses resulting from sales it
makes to a joint operation only to the extent of the other parties' interests in the joint operation.
When such sales provide evidence of impairment or reduction in net realisable value, that loss is
recognised immediately. When the Group makes purchases from a joint operation, it does not
recognise its share of the gains and losses from the joint arrangement until it resells those
goods/assets to a third party. However, when such purchases provide evidence of a reduction in
the net realisable value of the assets to be purchased or of an impairment loss of those assets,
the Group recognises its share of those losses.
Note 2: Operating Segments
Segment Information
Identification of reportable segments
The group has identified its operating segments based on the internal reports that are reviewed
and used by the board of directors in assessing performance and determining the allocation of
resources.
The Group is managed primarily on the basis of service offerings since the Group's operations
inherently have notably different risk profiles and performance assessment criteria. Operating
segments are therefore determined on the same basis.
Types of services by segment
(i) Prepaid Top-up
The top-up business segment is principally engaged in the distributorship of various topup,
including mobile phone airtime and bill payments.
Page 14
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 2: Operating Segments (continued)
(ii) Software Solutions
The software solutions business segment is principally involved in the provision of
software solutions to customers including software licenses, customisation and installation
of software, and the provision of ongoing software maintenance services.
(iii) Corporate/ unallocated
The corporate segment covers all corporate matters relating to the publicly listed company
and activities that are not allocated to operating segments as they are not considered part
of the core operations of any segment.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision
maker with respect to operating segments are determined in accordance with accounting policies
that are consistent to those adopted in the annual financial statements of the Group.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that
receives the majority of economic value from the asset. In the majority of instances, segment
assets are clearly identifiable on the basis of their nature and physical location.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the
liability and the operations of the segment. Borrowings and tax liabilities are generally considered
to relate to the Group as a whole and are not allocated. Segment liabilities include trade and other
payables and certain direct borrowings.
Page 15
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 2: Operating Segments (continued)
(i) Segment performance
Prepaid
Top-up
Software
Solutions
Corporate/
unallocated
Total
$ $ $ $
Six months ended
30 June 2013
Revenue
External sales 5,154,985 88,471 - 5,243,456
Interest revenue 23,774 3 8,563 32,340
Other revenue 382,049 - 186,256 568,305
Total segment revenue 5,560,808 88,474 194,819 5,844,101
Reconciliation of segment results to group profit before tax
Amount not included in segment
result but reviewed by the Board:
- Depreciation and amortisation (239,038) (6,820) - (245,858)
- Finance costs (136,867) - - (136,867)
- Others (2,931,806) (33,508) (686,431) (3,651,745)
Net profit before tax from continuing
operations 2,253,097 48,146 (491,612) 1,809,631
Prepaid
Top-up
Software
Solutions
Corporate/
unallocated
Total
$ $ $ $
Six months ended
30 June 2012
Revenue
External sales 5,115,065 91,437 - 5,206,502
Interest revenue 57,606 - 50,498 108,104
Other revenue 234,752 - - 234,752
Total segment revenue 5,407,423 91,437 50,498 5,549,358
Reconciliation of segment results to group profit before tax
Amount not included in segment
result but reviewed by the Board:
- Depreciation and amortisation (250,442) (6,807) - (257,249)
- Finance costs (81,715) - - (81,715)
- Others (3,241,378) (161,731) (525,426) (3,928,535)
Net profit before tax from continuing
operations 1,833,888 (77,101) (474,928) 1,281,859
Page 16
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 2: Operating Segments (continued)
(ii) Segment Assets
Prepaid
Top-up
Software
Solutions
Corporate/
unallocated
Total
$ $ $ $
30 June 2013
Segment assets 28,809,833 389,069 10,818,892 40,017,794
Segment asset increases for
the period:
- capital expenditure 159,854 - - 159,854
Total group assets 28,969,687 389,069 10,818,892 40,177,648
31 December 2012
Segment assets 24,494,511 598,419 1,183,179 26,276,109
Segment asset increases for
the year:
- capital expenditure 456,829 958 - 457,787
Total group assets 24,951,340 599,377 1,183,179 26,733,896
(iii) Segment Liabilities
Prepaid
Top-up
Software
Solutions
Corporate/
unallocated
Total
$ $ $ $
30 June 2013
Segment liabilities 15,775,532 45,934 9,095,742 24,917,208
Total group liabilities 15,775,532 45,934 9,095,742 24,917,208
31 December 2012
Segment liabilities 13,569,076 19,208 436,304 14,024,588
Total group liabilities 13,569,076 19,208 436,304 14,024,588
Page 17
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 2: Operating Segments (continued)
(iv) Revenue by geographical region
Revenue attributable to external customers is disclosed below, based on the location of the external customer:
Half-year
ended 30 June 2013
Half-year
ended 30 June 2012
$ $
Malaysia 5,649,282 5,498,860
Australia 194,819 50,498
Total revenue 5,844,101 5,549,358
(v) Assets by geographical region
The location of segment assets is disclosed below by geographical location of the assets:
As at
30 June 2013
As at
31 December 2012
$ $
Malaysia 29,358,756 25,550,717
Australia 10,818,892 1,183,179
Total Assets 40,177,648 26,733,896
Note 3: Cash and Cash Equivalents
As at
30 June 2013
As at
31 December 2012
$ $
Cash at bank and in hand 3,812,528 3,558,772
Term deposits a) 3,957,204 1,888,395
7,769,732 5,447,167
a) Term deposits have maturity periods ranging between 30 to 365 days (31 December 2012: 3 to 365 days). Included in term
deposits are deposits amounting to $1,975,008 (31 December 2012: $922,825) pledged to the Group's bankers as
security for credit facilities granted to the Group.
Page 18
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 4: Interest in Subsidiaries
(a) Information about Principal Subsidiaries
Set out below are the Group's subsidiaries at 30 June 2013. The subsidiaries listed below have share capital consisting solely of
ordinary shares, which are held directly by the Group and the proportion of ownership interests held equals the voting rights held
by the Group. Each Subsidiary's country of incorporation or registration is also its principal place of business.
Ownership Interest Held by the
Group
Name of Subsidiary Country of
Incorporation
Principal
Place of
Business At
30 June 2013
At
31 December 2012
e-pay Asia Holdings Limited
e-pay Asia Consulting Limited (ii)
e-pay (M) Sdn Bhd
PT e-pay Indonesia (i)
e-pay Thailand Co. Limited (i)
Mobiepay Sdn Bhd
Mobiepay LLC
SkyNetGlobal (South-East Asia) Pte Limited
OGL Solutions Sdn Bhd
First Remittance Sdn Bhd
PT Pembayaran Elektronik Indonesia
Sentripay Sdn Bhd (iii)
British Virgin Island
British Virgin Island
Malaysia
Indonesia
Thailand
Malaysia
USA
Singapore
Malaysia
Malaysia
Indonesia
Malaysia
Australia
Australia
Malaysia
Indonesia
Thailand
Malaysia
Australia
Singapore
Malaysia
Malaysia
Indonesia
Malaysia
100.0
-
60.0
68.5
29.7
100.0
100.0
79.0
100.0
100.0
100.0
100.0
100.0
100.0
60.0
68.5
29.7
100.0
100.0
79.0
100.0
100.0
100.0
-
(i) These entities are consolidated since they are controlled by e-pay (M) Sdn Bhd.
(ii) This entity was deregistered on 16 December 2012.
(iii) This entity was incorporated on 17 January 2013.
Subsidiaries' financial statements used in the preparation of these consolidated financial statements have also been prepared as
at the same reporting date as the Group's financial statements.
(b) Summarised Financial Information of Subsidiaries with Material Non-controlling
Interests
Set out below is the summarised financial information for each subsidiary that has non-controlling interests that are material to the
Group:
e-pay (M) Sdn Bhd
As at
30 June 2013
As at
31 December 2012
$ $
Summarised Financial Position
Current assets 24,531,233 20,677,628
Non-current assets 4,438,455 4,273,712
Current liabilities (15,754,083) (13,337,694)
Non-current liabilities (200,857) (231,382)
NET ASSETS 13,014,748 11,382,264
Non-controlling interests 5,212,126 4,558,561
Page 19
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 4: Interest in Subsidiaries (continued)
e-pay (M) Sdn Bhd
Half-year
ended 30 June 2013
Half-year
ended 30 June 2012
$ $
Summarised Financial Performance
Revenue 5,606,690 5,434,428
Profit before income tax 1,425,121 1,502,930
Income tax expense (356,450) (384,173)
Profit after tax 1,068,671 1,118,757
Other comprehensive income 949 2,943
Total comprehensive income 1,069,620 1,121,700
The information above is the amount before intercompany eliminations.
Profit attributable to non-controlling interests 427,468 447,503
Dividends paid to non-controlling interests 311,990 -
e-pay (M) Sdn Bhd
Half-year
ended 30 June 2013
Half-year
ended 30 June 2012
$ $
Summarised Cash Flow Information
Operating activities:
NET CASH FROM OPERATING ACTIVITIES 712,961 3,830,817
Investing activities:
Proceeds from disposal of plant and equipment 95,759 33,263
Payments for plant and equipments (159,854) (305,767)
NET CASH USED IN INVESTING ACTIVITIES (64,095) (272,504)
Financing activities:
Dividends paid (779,975) (5,009,600)
Proceeds from borrowings 41,346,330 18,629,450
Repayments of borrowings (40,707,530) (16,907,400)
Repayments to ultimate holding company (71,336) (38,746)
Proceeds from/ (Repayments to) related parties 124,180 (2,674)
NET CASH USED IN FINANCING ACTIVITIES (88,331) (3,328,970)
Page 20
e-pay Asia Limited ABN 99 089 227 887
Notes to the Consolidated Financial Statements for the half-year ended 30 June 2013
Note 4: Interest in Subsidiaries (continued)
e-pay (M) Sdn Bhd
As at
30 June 2013
As at
31 December 2012
$ $
CASH AND CASH EQUIVALENTS AT END OF PERIOD 4,898,655
3,846,294
Note 5: Contingent Liabilities
(a) During the period, e-pay Asia Limited charged e-pay (M) Sdn Bhd a guarantee fee in
connection with corporate guarantee provided in respect of bank borrowings by e-pay (M) Sdn
Bhd with total approved limit of $19,704,900 (31 December 2012: $10,223,400). The
guarantee fee is charged at 1.5% per annum on the total amount guaranteed at the end of the
month. Total fee income charged during the period was $114,440 (2012: $77,364).
(b) On 23 August 2012, the Company's 60% owned Malaysian based subsidiary e-pay (M) Sdn
Bhd ("EPM") has been served with a Writ of Summons together with the Statement of Claim
issued in the Kuala Lumpur High Court by a third Party ("Plaintiff").
The claim is in relation to the alleged breach of terms and conditions relating to a business
consultancy agreement ("BCA") between EPM and Plaintiff for the provision of bill payment
collection services by EPM to a third party. The Plaintiff seeks specific performance by EPM of
the BCA for a 3 year period, a declaration that the BCA is valid together with damages for
alleged breach of the BCA (which are not quantified), costs and interest.
The directors of the Company are of the view that the claim by the Plaintiff is without merit and
will vigorously defend the claim.
EPM has sought its solicitors' advice on the necessary course of action to be taken in relation
to the aforesaid Writ of Summons and is preparing for the defence.
Note 6: Subsequent Events
Acquisition of remaining interest in e-pay (M) Sdn Bhd
On 3 July 2013, the Company has entered into and simultaneously completed an acquisition
under a Share Purchase Agreement with e-pay Limited to acquire the remaining 40% of the
issued shares of e-pay (M) Sdn Bhd for a cash consideration of $8,000,000.
Page 21
e-pay Asia Limited ABN 99 089 227 887 and Controlled Entities
Directors' Declaration
In accordance with a resolution of the directors of e-pay Asia Limited, the directors of the
company declare that:
1. The financial statements and notes, as set out on pages 5 to 20 are in accordance with the
Corporations Act 2001, including:
a. complying with Accounting Standard AASB 134: Interim Financial Reporting; and
b. giving a true and fair view of the consolidated entity's financial position as at 30
June 2013 and of its performance for the half-year ended on that date.
2. In the directors' opinion there are reasonable grounds to believe that the company will be
able to pay its debts as and when they become due and payable.
Director .....................
Simon Loh
Dated this 26 of August 2013
Page 22
Page 23

[monkey puzzle] 02/9/2013 08:37

Off again.......

[freddie ferret] 30/8/2013 14:26

I think we have a small breakout. :-8)

[fizzy2] 21/8/2013 17:14

Could someone tell me how I can sell my shares,I have the certificate.

[boadicea] 20/8/2013 09:48

The mid price shown on advfn is often misleading as the Oz market seems to put uncharacteristic prices in at close. I find it best to follow the actual trades and use the limits available at the last deal - currently 27.75c (i.e. 27.5c/28c) at 6:50am (BST), shortly before Oz close.

[exile] 20/8/2013 06:43

Here we go again.....

[freddie ferret] 15/8/2013 17:09

Has been a bit of a sleepy share, a lot of people probably only check the price weekly.

[monkey puzzle] 15/8/2013 17:06

To be honest I thought it would happen sooner!