$1 Club, page-19934

If you watch your CEO's video presentation from 10:45 to 11:05 you will hear him say that the margin is 0.5% and the gross profit number he gives verbally are calculated on that basis. There is no mistake of confusion there.

If anything, the problem is with the reference to 2%-4% as being the gross profit margin for several reasons:

1. Any margin like that soon becomes someone else's opportunity and cannot be maintained. If 2%-4% was ever possible, it appears that an inevitable erosion of margin has already happened at IOU.
2. Your CEO is an accountant and a member of CPA Australia so he is hard wired to respect the accounting profession's Doctrine of Conservatism when presenting financial numbers like that. The Doctrine of Conservatism is a foundation stone of the profession which guides him to never knowingly overstate and, in moments of doubt, to present a number, if anything, on the slightly conservative side. I reckon 0.5% is pretty close to accurate.
3. Being a middle man like that in the hawking of prepaid services involves adding no value and should never be expected to deliver extraordinary profits.