Management Team 27/5/2003 2:40 PM Page 2
Management Team
Dato’ Mohd. Hilmey Haji Safiee Haji Mohammad Wan Zaidi Wan Jaafar Che Ngah Ibrahim Abdullah Ahmad Mohd. Taib
Fawzi Che Embi Abidin Yahaya Mohd. Khairudin Abdullah Tajul Razi Abdul Aziz Khaeruddin Sudharmin
22 HeiTech Padu Berhad 2002 Annual Report Management Team 27/5/2003 2:40 PM Page 3
Mustapha Fathil Abu HassanMohammad Sultan Hasnan Hashim Louis Chanis ak Ntup S. B. Abdul Majeed
Nordin Ahmad Abdul Halim Md Lassim Abdul Aziz Hidzir Omar Che Mad
HeiTech Padu Berhad 2002 Annual Report 23 Corporate Highli 27/5/2003 2:43 PM Page 2
Corporate Highlights 2002
JANUARY
Executive Chairman’s Hari Raya Open House Date: 4 January 2002 Venue: Executive Chairman’s Residence, Subang Jaya, Selangor Darul Ehsan
The sheer joy and warmth of Hari Raya was reflected with the presence of friends, Executive Chairman’s Hari Raya Open House business partners and clients celebrating with lavish, well prepared, east meets west cuisine.
Hari Raya Celebration for Staff Date: 6 January 2002 Venue: Wisma Integrated, USJ, UEP Subang Jaya, Selangor Darul Ehsan
Hari Raya celebration was held at the drive-in of Wisma Integrated – the new corporate office of HeiTech. This was also an occasion to introduce to the staff of HeiTech’s new building.
Hari Raya Celebration for Staff HeiTech Hari Raya Open House for Clients Date: 9 January 2002 Venue: Plaza Garden, HeiTech Padu Berhad, Block B, Plaza Damansara, Bukit Damansara, Kuala Lumpur
HeiTech staff and clients got together for a day of fun, friendship and food.
Signing Ceremony on the Implementation of the Disaster Recovery Centre for the Government Multi-Purpose Card between the Government of Malaysia and HeiTech Padu Berhad HeiTech Open House for Clients Date: 15 January 2002 Venue: Sheraton Subang Hotel & Towers, Subang Jaya, Selangor Darul Ehsan
Through this initiative, HeiTech will facilitate the Government Multi-Purpose Card (GMPC) with state-of-the-art disaster recovery facilities and technical support services. These services include readily available facilities, hardware, software and data backup procedures. This momentous occasion was heralded in an auspicious signing ceremony event in Subang Jaya, Selangor. HeiTech was represented by its Director, Y. Bhg. Dato’ Mohd. Zuki Kamaluddin whilst the Government of Malaysia was represented by
Signing Ceremony between the Government the Director General of Unit Pemodenan Tadbiran & Perancangan Pengurusan Malaysia of Malaysia & HeiTech Padu Berhad (MAMPU), Y. Bhg. Datuk Dr. Muhammad Rais bin Abdul Karim.
24 HeiTech Padu Berhad 2002 Annual Report Corporate Highli 27/5/2003 2:43 PM Page 3
Corporate Highlights 2002
Extraordinary General Meeting Date: 30 January 2002 Venue: MNI Twins, Jalan Pinang, Kuala Lumpur
HeiTech’s EGM was attended by the Board of Directors, the senior management team and some 20 odd shareholders. The Q&A session was a lively affair with the Chairman fielding questions from the inquisitive shareholders. The Board also proposed the acquisition of Wisma Integrated, located in Persiaran Kewajipan, USJ 1, Subang Jaya as HeiTech’s main office building. Extraordinary General Meeting
Signing Ceremony on Appointment of PaduNet Sdn Berhad as Gold Partner of 3Com Asia Limited Date: 31 January 2002 Venue: Regent I & II, Regent Hotel, Jalan Bukit Bintang, Kuala Lumpur
PaduNet was conferred the status of Gold Partner and also Authorised Service Provider by 3Com Asia Ltd. in an event which received extensive media coverage. With this recognition, PaduNet will serve 3Com end users with installation, on-site hardware remedial and professional services. Signing on behalf of PaduNet was its Chief Operating Officer, Encik Fawzi Che Embi and 3Com was represented by its Country Manager, Ms. Adelene Ong. The signing was witnessed by Tuan Haji Safiee Mohammad, Signing Ceremony between PaduNet & 3Com Asia President, HeiTech Padu Berhad and Mr. Marcel Jacobs, Vice President 3Com Asia South.
FEBRUARY
Kick Off 2002: Penobatan Jadi Jade 03 Date: 6 February 2002 Venue: Securities Commission, Bukit Kiara, Kuala Lumpur
The new year was heralded with ‘Kick Off 2002’ forum where the management laid out Kick Off 2002 – Jadi Jade 03 HeiTech’s goals and business direction with the staff.
HeiTech Padu Berhad 2002 Annual Report 25 Corporate Highli 27/5/2003 2:43 PM Page 4
Corporate Highlights 2002
Visiting Delegation from Papua New Guinea Date: 16 February 2002 Venue: Board Room, 2nd Floor, HeiTech Padu Berhad, Block B, Plaza Damansara, Bukit Damansara, Kuala Lumpur
HeiTech played host to the delegation from the Ministry of Finance, Planning and Rural Development - Mr. Vele Iamo and Mr. Jack Nambari. This learning visit was a follow-up to HeiTech’s earlier visit to Papua New Guinea.
Delegation from Papua New Guinea Signing Ceremony on the Appointment of International Business Partner between Epic Lanka (Pvt.) Ltd. and HeiTech Padu Berhad Date: 28 February 2002 Venue: Board Room, 2nd Floor, HeiTech Padu Berhad, Block B, Plaza Damansara, Bukit Damansara, Kuala Lumpur
With the inception of the partnership, Epic Lanka will introduce and promote HeiTech’s product and service offerings in Sri Lanka, Bangladesh and Maldives. This is a golden opportunity for HeiTech to spread its business reach to potential market areas where the information and communications technology (ICT) sector is experiencing rapid growth. Signing Ceremony between Epic Lanka & HeiTech
MARCH
HeiTech Special Briefing Session to the Chief Secretary to The Government of Malaysia and Senior Government Officials Date: 23 March 2002 Venue: HeiTech Padu Berhad, Block B, Plaza Damansara, Bukit Damansara, Kuala Lumpur
Special Briefing Session 23 March 2002 marked the visit of the Chief Secretary to The Government of Malaysia, Y. Bhg. Tan Sri Samsudin Osman and Senior Government Officials to HeiTech Padu Berhad. During the visit, they were briefed on HeiTech’s profile and major achievements. They were later brought around HeiTech Business Recovery Centre at Kelana Jaya to witness the operations and environment of this state-of-the-art facility.
Blood Donation Drive 2002 Date: 26 March 2002 Venue: Reception Area, Ground Floor, HeiTech Padu Berhad, Block B, Blood Donation Drive Plaza Damansara, Bukit Damansara
With the assistance of Hospital Kuala Lumpur, this annual event attracted some 50 donors, comprising HeiTech staff and friends from neighbouring offices.
26 HeiTech Padu Berhad 2002 Annual Report Corporate Highli 27/5/2003 2:43 PM Page 5
Corporate Highlights 2002
APRIL
The Malaysian Unit Trust Week 2002 Date: 20-26 April 2002 Venue: Darul Aman Stadium, Alor Star, Kedah Darul Aman
Officiated by the Deputy Prime Minister, Y.A.B. Dato’ Seri Abdullah Ahmad Badawi and closed by the Prime Minister, Y.A.B. Dato’ Seri Dr. Mahathir Mohamad, this grand event witnessed HeiTech being crowned the second best booth of the exhibition. The exhibition, Malaysian Unit Trust Week held in conjunction with the annual event organised by Permodalan Nasional Berhad (PNB), successfully publicised HeiTech as a leading IT based company.
JUNE
Fiji High Commission’s Visit to HeiTech Padu Berhad Date: 5 June 2002 Venue: Board Room, HeiTech Padu Berhad, Block B, Plaza Damansara, Kuala Lumpur Visitors from Fiji High Commission HeiTech received yet another visiting delegation - this time the Fiji High Commission, led by Fiji High Commissioner to Malaysia, Her Excellency Adi Litia Samanunu Cakobau and her personal assistant, Mr. George Matai. They were briefed on HeiTech’s accomplishments and its computerisation projects to date.
Analyst Briefing 2002 Date: 10 June 2002 Venue: Ballroom 3, Hotel Nikko Kuala Lumpur, Jalan Ampang, Kuala Lumpur
In line with the intention to attain a larger portion of the outsourcing business, HeiTech chose “ICT Evolution-Outsourcing” as the theme for the Analyst Briefing 2002. The event was well attended by investment and fund analysts alike. During the Analyst Analyst Briefing Briefing, Encik Abdul Halim Md. Lassim, Chief Financial Officer of HeiTech Padu Berhad showcased a comprehensive outlook on HeiTech’s previous achievements and readiness for the journey forward. Y. Bhg. Dato’ Mustapa Mohamed, Executive Director of Majlis Tindakan Ekonomi Negara (MTEN) enlightened the audience with his talk on “Malaysia After the Financial Crisis and The Way Forward”.
HeiTech Padu Berhad 2002 Annual Report 27 Corporate Highli 27/5/2003 2:43 PM Page 6
Corporate Highlights 2002
7th Annual General Meeting & Extraordinary General Meeting Date: 12 June 2002 Venue: Ballroom 1, The Summit Hotel, UEP Subang Jaya, Selangor Darul Ehsan
During the event, Y. Bhg. Dato’ Mohd. Hilmey Mohd Taib, Executive Chairman of HeiTech Padu Berhad announced the proposed Bonus Issue of 20,000,000 new ordinary shares of RM 1.00 each on the basis of 1 new share for every 4 existing ordinary shares held. With the announcement, HeiTech joined the ranks of the very few companies that reward shareholders via Bonus Issue within 2 years of their Initial Public Offer (IPO).
Annual General Meeting eNet 2002 Technology Update Seminar Date: 22-24 June 2002 Venue: Aseania Resort Langkawi, Jalan Pantai Tengah, Langkawi, Kedah Darul Aman
eNet 2002 was HeiTech’s initiative to introduce new services and technologies. It also represents our commitment to our valued customers. PaduNet’s clients and vendors were presented with informative and comprehensive presentations from PaduNet Sdn. Berhad and its vendors i.e. Nortel, Novell, Siemens Multimedia, Trend Micro, NTT Data & Dell.
eNet Technology Seminar JULY
Signing Ceremony between Permodalan Peladang Berhad & HeiTech Padu Berhad Date: 23 July 2002 Venue: Vision House (Board Room), Level 15, HeiTech Village, Persiaran Kewajipan, USJ 1, UEP Subang Jaya, Selangor Darul Ehsan
This event signified the establishment of a joint venture between Permodalan Peladang Berhad and HeiTech. Y. Bhg. Dato’ Mohd. Hilmey Mohd. Taib, Executive Chairman of HeiTech Padu Berhad, Y. Bhg. Dato’ Sri Hj. Abdul Rashid Hj. Abdul Rahman, Chairman Signing Ceremony between of Permodalan Peladang Berhad and five other representatives from their respective Permodalan Peladang & HeiTech Pertubuhan Peladang Kawasan (Pahang, Sri Kelana Lenggeng, Dengkil, Johor Bahru Selatan and Kuala Selangor) inked the agreement to share their experience and expertise for contribution to the agricultural community.
28 HeiTech Padu Berhad 2002 Annual Report Corporate Highli 27/5/2003 2:43 PM Page 7
Corporate Highlights 2002
HeiTech Padu Annual Dinner 2002 Date: 26 July 2002 Venue: Royal Ballroom, Palace of The Golden Horses, Seri Kembangan, Selangor Darul Ehsan
The royal ballroom took on a 70’s flavour for HeiTech’s annual dinner. The staff were donned in various costumes living up to the theme - “Swinging 70’s” and the night was graced with homegrown and guest talents. To top the night off, the Long Service Award was accorded to 47 loyal and faithful staff members.
Annual Dinner OCTOBER
Partnership Agreement between Kanal IT and HeiTech Date: 19 October 2002 Venue: Chamber of Commerce, Riyadh, Kingdom of Saudi Arabia
HeiTech marked another milestone in its effort of penetrating the potential ICT market in Saudi Arabia with the signing of a partnership agreement with a local ICT player, Kanal IT. The initiative was part of the agenda in the Malaysian delegations visit to Saudi Arabia, which was led by the Prime Minister, Y.A.B. Dato’ Seri Dr. Mahathir Mohamad. Signing on behalf of HeiTech was Executive Chairman, Y. Bhg. Dato’ Mohd. Hilmey Mohd. Taib while Kanal IT was represented by its President, Mr. Mohammed al-Gahdi. Partnership Agreement between Kanal IT & HeiTech
NOVEMBER
Signing Ceremony on the “MATRIIX Project Phase 1” between the Ministry of International Trade and Industry (MITI) and HeiTech Padu Berhad Date: 29 November 2002 Venue: Ministry of International Trade & Industry, Jalan Duta, Kuala Lumpur
HeiTech was awarded a 30-month solutions project to implement the “MITI and Agencies Trade and Industries Exchange (MATRIIX) Project Phase 1” for the Ministry of International Trade and Industry (MITI) and its four agencies - Malaysia External Trade Development Corporation (MATRADE), National Productivity Corporation (NPC), Small
and Medium Industries Development Corporation (SMIDEC) and the Malaysian Industrial Signing Ceremony between MITI & HeiTech Development Authority (MIDA). Representing MITI was its Secretary General Y. Bhg. Datuk Abdul Razak Ramli while HeiTech was represented by the Executive Chairman, Y. Bhg. Dato’ Mohd. Hilmey Mohd. Taib.
HeiTech Padu Berhad 2002 Annual Report 29 M_ISM_35083_5. Notice of AGM 27/5/03 11:41 AM Page 2
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN THAT 1. To receive and adopt the Audited Accounts of the Company for the financial year ended 31 December 2002 together with the Reports the Eighth Annual General Meeting of the Directors and Auditors. Resolution 1
of the Company will be held at 2. To declare the Final Dividend of 7% less tax of 28% in respect of the financial year ended 31 December 2002. Resolution 2 Ballroom Selangor 3, Sheraton Subang Hotel & Towers, Jalan SS 3. To re-elect Dato’ Lee Hau Hian retiring under Article 82 of the Company’s Articles of Association and who, being eligible, offers 12/1, 47500 Subang Jaya, Selangor himself for re-election. Resolution 3
Darul Ehsan on Wednesday, 4. To re-elect Tuan Haji Safiee bin Mohammad retiring under Article 82 of the Company’s Articles of Association and who, being eligible, 18 June 2003, at 10.00 a.m. for the offers himself for re-election. Resolution 4
purposes:- 5. To approve the payment of Director’s Fees for the financial year ended 31 December 2002. Resolution 5
6. To re-appoint Messrs. Hanafiah Raslan & Mohamad as Auditors for the ensuing year and to authorise the Directors to fix the remuneration of the Auditors. Resolution 6
As a Special Business
7. To consider and, if thought fit, to pass the following resolution as Ordinary resolution: Resolution 7
“That pursuant to section 132D of the Companies Act, 1965, the Directors be and are hereby authorised to issue shares in the Company at any time until the conclusion of the next Annual General Meeting and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion, deem fit provided that the aggregate of shares to be issued does not exceed 10% of the issued share capital of the Company for the time being, subject always to the approval of all the relevant regulatory bodies being obtained for such issue and allotment”
30 HeiTech Padu Berhad 2002 Annual Report M_ISM_35083_5. Notice of AGM 27/5/03 11:41 AM Page 3
Notice of Annual General Meeting
8. To consider and, if thought fit, to pass the following resolution as Ordinary Resolution: (iii) revoked or varied by resolution passed by the shareholders Resolution 8 in general meeting, “THAT the mandate by the shareholders of the Company on 30 January 2002, pursuant to paragraph 10.09 of the Listing whichever is earlier; Requirements of the Kuala Lumpur Stock Exchange, authorising the Company and its subsidiaries (“HeiTech Group”) to enter into d) the Directors of the Company be and are hereby authorised to the recurrent transactions of a revenue or trading nature as set out complete and do all such acts and things as they may consider in the Circular to Shareholders dated 18 May 2003 (“Circular”) with expedient or necessary to give effect to the Proposed Renewal of the related parties mentioned therein which are necessary for the the Recurrent Related Party Transaction mandate.” HeiTech Group’s day-to-day operations, be and is hereby renewed, Notice of Dividend Entitlement AND THAT HeiTech Group is hereby authorised to enter into the recurrent transactions with the related parties mentioned therein NOTICE IS ALSO HEREBY GIVEN THAT, subject to the approval of provided that: the shareholders at the Eighth Annual General Meeting of the Company to be held on 18 June 2003, a final dividend of 7% less a) the transactions are in the ordinary course of business and 28% taxation for the year ended 31 December 2002 will be paid on normal commercial terms which are not more favourable to the shareholders on 3 July 2003. The entitlement date for the to the related parties than those generally available to the said dividend shall be on 19 June 2003. public and are not to the detriment of the minority shareholders of the Company; and A depositor shall qualify for the entitlement for the Dividend only in respect of:- b) disclosure of the aggregate value of the transactions a) Shares transferred to the Depositor’s securities account before conducted during a financial year will be disclosed in the 4.00 p.m. on 19 June 2003 in respect of ordinary transfer. Annual Report for the said financial year, b) Shares bought on the Kuala Lumpur Stock Exchange on cum entitlement basis according to the Rules of the Kuala Lumpur c) the authority conferred by such renewed mandate shall Stock Exchange. continue to be in force until:
(i) the conclusion of the next Annual General Meeting (“AGM”) By Order of the Board of the Company following the forthcoming AGM at which the Proposed Renewal of the Recurrent Related Party Transaction Mandate was passed, at which time it will lapse, unless by a resolution passed at the AGM, the mandate is again renewed; Khaeruddin bin Sudharmin (LS 007037) Julina binti Mohd. Salleh (LS 008055) (ii) the expiration of the period within which the next AGM of the Company Secretaries Company after the forthcoming AGM is required to be held pursuant to Section 143(1) of the Companies Act, 1965 Kuala Lumpur (“Act”) (but shall not extend to such extension as may be 18 May 2003 allowed pursuant to Section 143(2) of the Act); or
HeiTech Padu Berhad 2002 Annual Report 31 M_ISM_35083_5. Notice of AGM 27/5/03 11:41 AM Page 4
Notice of Annual General Meeting
Notes: (i) A member entitled to attend and vote at the Explanatory Notes on Special Business: meeting is entitled to appoint proxy or proxies to attend and vote in his stead. A proxy may (i) Explanatory note on Resolution 7 of the but need not be a member of the Company Agenda - and where there are (2 or more) proxies, the The proposed adoption of the Ordinary number of shares to be represented by each Resolution is primarily to give flexibility to the proxy must be stated. Board of Directors to issue and allot shares at (ii) A proxy may but need not be a member of the any time in their absolute discretion and in the Company and a member may appoint any interest of the Company without convening a person to be his proxy without limitation and general meeting. The authorisation will, unless the provisions of Section 149(1)(b) of the revoked or varied by the Company at a general Companies Act, 1965, shall not apply to the meeting, expire at the conclusion of the next Company. Pursuant to Article 71A of the annual general meeting. Articles of Association of the Company, where a member of the Company is an authorised (ii) Explanatory note on Resolution 8 of the nominee as defined under the Securities Agenda - Industry (Central Depositories) Act, 1991, it For further information on Ordinary Resolution may appoint at least one proxy in respect of 8, please refer to the Circular to Shareholders each securities account it holds with ordinary dated 18 May 2003 accompanying the shares of the Company standing to the credit Company’s Annual Report for the year ended of the said securities account. 31 December 2002. (iii) Where the appointment is executed by a corporation, it must be either under its Common Seal or the hand of its officer or attorney duly authorised. (iv) The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is guided or notarially certified copy of such power or authority, shall be deposited with the Company Secretary at the Registered Office at Level 15, HeiTech Village, Persiaran Kewajipan, USJ 1, UEP Subang Jaya, 47600 Subang Jaya, Selangor Darul Ehsan not less than 48 hours before the time appointed for holding the meeting.
32 HeiTech Padu Berhad 2002 Annual Report M_ISM_35083_5. Notice of AGM 27/5/03 11:41 AM Page 5
Statement Accompanying Notice of Annual General Meeting Pursuant to Paragraph 8.28(2) of The Listing Requirements of Kuala Lumpur Stock Exchange
1. Directors standing for re-election at the Eighth Annual General Meeting of HeiTech Padu Berhad
Pursuant to Article 82 of the Company’s Articles of Association:-
i. Dato’ Lee Hau Hian ii. Tuan Haji Safiee bin Mohammad
2. Attendance of Directors at Board Meetings
Details of attendance of Directors at Board Meetings
There were five (5) Board Meetings held during the financial year ended 31 December 2002. Details of attendance of the Directors are set out in the Directors’ Profile appearing on pages 16 to 20 of the Annual Report.
3. Place, Date and Time of General Meeting
Details of General Meeting during the financial year ended 31 December 2002
The Annual General Meeting (AGM) for 2002 was held on 12 June 2002, at 10.00 a.m. at Ballroom 1, Level 5, The Summit Hotel, Persiaran Kewajipan, USJ 1, UEP Subang Jaya, 47600 Selangor Darul Ehsan and the Extraordinary General Meeting (EGM) was held on the same day and at the same place after the conclusion of the AGM 2002.
4. Further details of Director who are standing for re-election
Details of Directors who are standing for re-election are set out in the Directors’ Profile appearing on pages 16 to 20 of the Annual Report.
HeiTech Padu Berhad 2002 Annual Report 33 M_ISM_35083_Chairman Letter 27/5/03 11:37 AM Page 1
Letter from the Chairman
Dear Shareholders,
We at HeiTech are pleased to express our heartfelt appreciation to you, our shareholders, for your constant support and faith. Financial year 2002 was a year of all sorts. From global and economic uncertainty to corporate scandals, various events painted the global industry landscape, resulting waves of obscurity. Despite these imminent challenges, at HeiTech, we are focused in our vision to be a leader in comprehensive integrated ICT services provider. More importantly, we stand firm in our believe of technology improving the quality of every Malaysian, true to our motto of bridging humans and technology.
The niche that HeiTech has built, leveraging on the skills and experience through the years of successful track record has affirmed HeiTech of it’s industry leadership position and helped us sail through the rough and uncharted waters. To sustain, we have taken affirmative action to prepare ourselves for the future. We have identified key strategic pillars to focus on operational efficiency for better returns to stakeholders, positioning of HeiTech as a brand, expansion of customer base and development of human capital. We believe these are essential strategies for HeiTech to be resilient and relevant in the future.
Based on a recent survey, the ICT sector is expected to grow by 6% in Malaysia for 2003. Overall, the mood and appetite for ICT spending is of cautious optimism. Based on the HeiTech’s niche position, we believe we can sustain our leadership position, if not perform better. Our confidence is built upon our successful track record and human capital developed through the years. Thus a compelling reason for our shareholders to continue their faith in HeiTech.
On behalf of the Board of Directors, I am pleased to present the Annual Report and Financial Statement of HeiTech Padu Berhad for the financial year ended 31 December 2002.
Yours sincerely,
DATO’ MOHD. HILMEY BIN MOHD. TAIB DIMP, SMP M_ISM_35083_6Chairman Statement 27/5/03 11:34 AM Page 2
Chairman’s Statement
Dear Shareholders,
On behalf of the Board of Directors of HeiTech Padu Berhad, I am pleased to present the Annual Report for the financial year ended 31 December 2002.
The financial year 2002 was a year of all sorts. From terrorist attacks to corporate scandals, unprecedented events tainted the new world order, spawning waves of uncertainty to global ICT spending. Competition accelerated relative to industry growth and yet HeiTech sustained its industry leadership, steadfast and unwavering, focused in our vision to be a leader in comprehensive integrated ICT services provider.
In Malaysia, the economy performed better than many other economies in the region. This have been achieved through the macroeconomic policies driven by the Malaysian Government, resulting strong domestic demand and improved export performance. The public sector played a momentous role in narrowing the amplitude of the economic cycle. Sustained spending in Information and Communication Technology (ICT), especially from the DATO’ MOHD. HILMEY BIN MOHD. TAIB public sector was pivotal to the Executive Chairman industry. Tell-tale signs from the private sector ICT spending have been weak, with only large corporations having the appetite and stamina for ICT spending.
34 HeiTech Padu Berhad 2002 Annual Report M_ISM_35083_6Chairman Statement 27/5/03 11:34 AM Page 3
Chairman’s Statement
Financial Results Dividends
For the financial year ended 31 December 2002, HeiTech recorded Based on the financial performance, the Board recommends a final revenue of RM257.3 million and realised net profit attributable to dividend of 7% less 28% taxation, in addition to the interim dividend shareholders (earnings) of RM22.8 million. In comparison to the of 5% less 28% taxation declared earlier, to make the total dividend previous financial year ended 31 December 2001, earnings declined payment to 12% less 28% taxation or RM8.64 million. by 14% despite the 19% increase in revenue. The revenue growth is a testimony of HeiTech’s efforts to increase market share and Proposed Employee Share Option Scheme consolidate it’s presence in the Malaysian ICT market. Earnings however declined due to market competitive pressures and financial On 22 January 2003, the Board of Directors has recommended the prudence by reflecting higher provision for doubtful debts and Proposed Employee Share Option Scheme (ESOS) for the benefit of impairment losses from unquoted investments. This approach is all eligible employees and executive directors of the HeiTech Group. taken in light of uncertain economic conditions in Malaysia. This exercise is subject to the approval of shareholders and relevant authorities. We are confident that this exercise will provide System integration and application development, maintenance, motivation and incentive to further improve work performance and facilities management, disaster recovery and network services were employee loyalty. the core revenue drivers, contributing 57% to HeiTech’s revenue. In financial year 2002, due to the substantial completion of major Internal Rationalization and Consolidation computerisation projects of Jabatan Imigresen Malaysia (IMM) and Jabatan Pendaftaran Negara Malaysia (JPN) in financial year 2000, The Board of Directors has announced the rationalization and contribution from system integration and application development consolidation exercise of HeiTech’s business operations effective (SI business) expanded marginally by 1%, whilst maintenance 1 September 2002. The objective of this exercise is to strengthen revenue grew by 56%. Trading revenue, arising from sales of HeiTech’s position as a leader in providing comprehensive and hardware and software, grew marginally by 3%, contributed from integrated ICT solutions through focused and streamlined structure the recently awarded Ministry of Trade and Industry (MITI) MATRIIX and enhanced corporate and product branding. Phase 1 project. As a result of the exercise, the business operations activities of the Revenue from HeiTech’s non-SI business or Managed Services, HeiTech’s seven wholly-owned subsidiaries namely Megacenter namely network services, facilities management and disaster System Sdn. Bhd., PaduNet Sdn. Bhd., e-Image Technologies Sdn. recovery reflected promising growth of 28%, 10% and 46% Bhd., Padu Bantu Sdn. Bhd., PaduTech Solutions Sdn. Bhd., respectively. These revenues, in addition to maintenance revenues Software Alliance (Malaysia) Sdn. Bhd. and HT Soft Technologies which grew by 56%, are recurring in nature, hence enhancing the Sdn. Bhd., will be consolidated under the holding company and quality of revenue. HeiTech has further improved its recurring function as operating divisions focusing on their existing area of revenue contribution to 49% from 42% in the previous financial year. business.
HeiTech Padu Berhad 2002 Annual Report 35 M_ISM_35083_6Chairman Statement 27/5/03 11:34 AM Page 4
Chairman’s Statement
Outlook for 2003 ranked within the top five players in the industry for ICT outsourcing, ICT services market and ICT support and training. In an environment of heightened uncertainty in the global economy, In addition, we are humbly proud to be the only “home-grown” growth in the Malaysian economy would be mainly domestic driven. player amongst the elite ICT multinational “super-brands” in The economy is expected to grow by 4.5%. However, unlike in Malaysia for the first two categories mentioned. HeiTech’s strong 2002 when public sector remained the principal driver of economic presence in the local industry epitomizes our capability and track growth, private sector demand is expected to assume a more record. We are continuously strengthening our position and significant role in driving economic expansion in 2003 enhancing our capabilities in preparing ourselves for the next wave (Annual Report 2002, Bank Negara Malaysia). of ICT evolution, outsourcing, which we anticipate will become an imperative industry agenda in the next few years. IDC Malaysia is forecasting the Malaysian ICT market to grow by 6% in 2003. This growth will be led by the ICT services sector, Appreciation contributed by the increase in outsourcing and contract based spending. Overall, the mood and appetite for ICT spending is of I would like to take this opportunity to express my sincere cautious optimism. appreciation to members of the Board of Directors, management team and most importantly, employees of HeiTech Padu Berhad for As for HeiTech, we are focused on our vision to become the leader their continued support and cooperation. On behalf of the Board, I in comprehensive integrated ICT services provider. Despite the would also like to extend our sincere appreciation for the continued economic uncertainty, our confidence for 2003 is built upon the support of our customers, business partners and shareholders. continued commitment of the Government’s 8th Malaysia Plan, MSC initiatives which are at the nationwide roll-out phase and the growing trends of ICT outsourcing in the private sector to harness competitive edge in the global economy and liberalized markets.
Based on a recent industry survey, HeiTech has recorded Dato’ Mohd. Hilmey bin Mohd. Taib commendable results in the ICT industry in 2002. HeiTech was Executive Chairman
36 HeiTech Padu Berhad 2002 Annual Report M_ISM_35083_6Chairman Statement 27/5/03 11:34 AM Page 5
hallenges DetermineC The Extent Of Our Capabilities
0 HeiTech Padu Berhad 2002 Annual Report