Building Strength in Adversity
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IFC II OCR GROUP BERHAD I ANNUAL REPORT 2019 With our knowledge, Building experience and expertise, we are confident Strength in that we shall thrive in adversity and emerge Adversity stronger than before. Isola KLCC 02 Corporate Information 03 Corporate Structure 05 Board of Directors 10 Key Senior Management 13 Chairman’s Statement 16 Five Years Financial Highlights 19 Management Discussion and Analysis 27 Corporate Governance Overview Statement 45 Additional Compliance Information Disclosures 48 Sustainability Statement 54 Audit Committee Report 57 Statement on Risk Management and Internal Control 62 Statement of Directors’ Responsibilities in Relation to the Financial Statements 63 Financial Statements 184 List of Property 185 Analysis of Shareholdings 188 Analysis of Irredeemable Convertible Preference Shareholdings 190 Analysis of Warrant C (OCR-WC) Holdings 192 Analysis of Warrant D (OCR-WD) Holdings 194 Notice of Annual General Meeting Statement Accompanying the Notice of Annual General Meeting Proxy Form 2 OCR GROUP BERHAD I ANNUAL REPORT 2019 CORPORATE INFORMATION BOARD OF DIRECTORS RISK MANAGEMENT COMMITTEE Chairman/Independent Non-Executive Director Ong Kah Hoe (Chairman) YAM Tunku Azudinshah Ibni Tunku Annuar Lee Chin Cheh Group Managing Director (Appointed on 20 February 2020) Ong Kah Hoe Tan Ban Tatt (Resigned on 28 June 2019) Executive Director Tang Hang Lee Tee Tze Chern, JP (Resigned on 20 February 2020) (Retired on 29 May 2019) Admiral Tan Sri Dato’ Seri Panglima Ahmad Independent Non-Executive Directors Kamarulzaman Hj Ahmad Badaruddin (Retired) Hj. Abdullah Bin Abdul Rahman (Appointed on 20 February 2020) Dato’ Lim Heng Ee (Resigned on 18 February 2020) COMPANY SECRETARY Yap Sing Khon Ng Bee Lian (MAICSA 7041392) (Resigned on 31 December 2019) Practicing Certificate: 201908003459 Admiral Tan Sri Dato’ Seri Panglima Ahmad Kamarulzaman Hj Ahmad Badaruddin (Retired) REGISTERED OFFICE (Appointed on 13 March 2019) 49-B, Jalan Melaka Raya 8 Chong Min Shih Taman Melaka Raya (Appointed on 10 February 2020) 75000 Melaka Julian Koh Lu Ern Tel : +6 06 281 5300 (Appointed on 18 February 2020) Fax : +6 06 281 5332 Dato’ Haji Mohd Fakrunizam Bin Ibrahim (Appointed on 21 February 2020) CORPORATE OFFICE th Non-Independent Non-Executive Directors 8.01, 8 Floor, Persoft Tower Lee Chin Cheh 6B, Persiaran Tropicana Lim Teck Seng Tropicana Golf & Country Resort (Resigned on 13 January 2020) 47410 Petaling Jaya, Selangor Tel : +6 03 7806 3003 AUDIT COMMITTEE Fax : +6 03 7880 4003 Julian Koh Lu Ern (Chairman) (Appointed on 18 February 2020) SHARE REGISTRAR Yap Sing Khon (Chairman) Boardroom Share Registrars Sdn. Bhd. (Resigned on 31 December 2019) 11th Floor, Menara Symphony YAM Tunku Azudinshah Ibni Tunku Annuar No. 5, Jalan Prof. Khoo Kay Kim Hj. Abdullah Bin Abdul Rahman Seksyen 13, 46200 Petaling Jaya Selangor, Malaysia NOMINATING COMMITTEE Tel : +6 03 7890 4700 YAM Tunku Azudinshah Ibni Tunku Annuar (Chairman) Fax : +6 03 7890 4670 Hj. Abdullah Bin Abdul Rahman Lee Chin Cheh AUDITORS Crowe Malaysia PLT REMUNERATION COMMITTEE 201906000005 (LLP0018817-LCA) & AF1018 YAM Tunku Azudinshah Ibni Tunku Annuar (Chairman) Chartered Accountants Ong Kah Hoe Level 16 Tower C, Megan Avenue II Tee Tze Chern, JP 12 Jalan Yap Kwan Seng (Resigned on 29 May 2019) 50450 Kuala Lumpur Hj. Abdullah Bin Abdul Rahman Tel : +6 03 2788 9999 (Resigned on 20 February 2020) Fax : +6 03 2788 9998 Lim Teck Seng (Resigned on 13 January 2020) PRINCIPAL BANKERS Chong Min Shih United Overseas Bank (Malaysia) Berhad (Appointed on 20 February 2020) AmBank (M) Berhad OPTION COMMITTEE STOCK EXCHANGE LISTING Ong Kah Hoe (Chairman) Main Market – Construction (Appointed on 21 February 2020) Bursa Malaysia Securities Berhad Dato’ Lim Heng Ee (Chairman) Stock Name and Stock Code: (Resigned on 18 February 2020) - OCR (7071) Tan Ban Tatt - OCR-PA (7071PA) (Resigned on 28 June 2019) - OCR-WC (7071WC) Lily Tee - OCR-WD (7071WD) (Resigned on 29 May 2019) Admiral Tan Sri Dato’ Seri Panglima Ahmad Corporate website : www.ocrbhd.com Kamarulzaman Hj Ahmad Badaruddin (Retired) Corporate email : [email protected] (Appointed on 21 February 2020) Wong Jyh Juan (Appointed on 21 February 2020) OCR GROUP BERHAD I ANNUAL REPORT 2019 3 CORPORATE STRUCTURE OCR Group Berhad 199701025005 (440503-K) Wholly-Owned Subsidiaries of OCR Group Berhad: Wholly-Owned Subsidiaries of Serba Simfoni Sdn. Bhd.: 1) O&C Commerce Sdn. Bhd. 20110103314 (91749-) 1) Fotopop (M) Sdn. Bhd. 199001000272 (19130-) (1) Retailers and traders of consumable products. Real property management. 2) O&C Construction Sdn. Bhd. 201401042973 (111911-W) Wholly-Owned Subsidiaries of OCR Group Berhad: Construction of residential and commercial properties and 80 Owned Subsidiary of Grand Superland Sdn. Bhd.: property development. 1) Japlo Healthcare Sdn. Bhd. (Co. No. 49974-H) 1) Visi Anggun Properties Sdn. Bhd. 3) Tristar City Sdn. Bhd. 201010220 (1147394-P) Dormant. 2010102920 (120014-T) Property development and property investment. Construction of residential and commercial properties. 2) O&C Commerce Sdn. Bhd. (Co. No. 91749-) Dormant. 4) Grand Superland Sdn. Bhd. 20101022 (1141-D) Construction of residential and commercial properties and 3) O&C Construction Sdn. Bhd. (Co. No. 111911-W) property development. 70 Owned Subsidiary of OCR Group Berhad: Construction of residential and commercial properties and property development. ) Sunrise Meadow Sdn. Bhd. 2010101422 (1119-H) 1) O&C Development (Kuantan) Sdn. Bhd. Property development and property investment. 201010174 (11420-K) 4) Tristar City Sdn. Bhd. (Co. No. 1147394-P) Property development and property investment. Property development and property investment. ) Kirana Masyhur Sdn. Bhd. 20101037701 (12042-U) Construction of residential properties. 2) Pangkal Teguh Sdn. Bhd. 201101012009 (94014-A) ) Grand Superland Sdn. Bhd. (Co. No. 1141-D) Construction of residential and commercial properties, Dormant. 7) YP O&C Development Sdn. Bhd. project management and real estate. 201010342 (1209403-K) ) Sunrise Meadow Sdn. Bhd. (Co. No. 1119-H) Real property management. 3) Kita Mampan Sdn. Bhd. 20130102974 (1004-) Property development and property investment. Construction of residential and commercial properties ) Fajar Simfoni Sdn. Bhd. 2010100111 (12324-) and real estate. 7) Kirana Masyhur Sdn. Bhd. (Co. No. 12042-U) Engage in the business of investment holding, export and Dormant. import of goods and real property management. 50.01 Owned Subsidiary of OCR Group Berhad: ) YP O&C Development Sdn. Bhd. (Co. No. 1209403-K) 9) Junjung Simfoni Sdn. Bhd. 201010047 (12701-) Dormant. Engage in the business of investment holding, export and 1) O&C Makok Isola Sdn. Bhd. 2011010091 (9377-H) import of goods and real property management. Property development. 9) Fajar Simfoni Sdn. Bhd. (Co. No. 12324-) Dormant. 10) OCR Land Development Sdn. Bhd. 20101012 (12744-H) Owned Subsidiary of Kirana Construction of residential properties. 10) Junjung Simfoni Sdn. Bhd. (Co. No. 12701-) 50.0005 Masyhur Sdn. Bhd.: Dormant. 11) Amazing Symphony Sdn. Bhd. 1) Mampan Esa (Melaka) Sdn. Bhd. 11) OCR Land Development Sdn. Bhd. (f.k.a. Nova Avenue 2010101230 (12744-D) 2013010333 (10313-P) Sdn. Bhd.) (Co. No. 12744-H) Construction of residential properties. Real estate management. Dormant. 12) Amazing Symphony Sdn. Bhd. (Co. No. 12744-D) 90 Owned Subsidiary of OCR Group Berhad: Dormant. 49 Owned Assoiate through Kita Mampan Sdn. Bhd.: 1) O&C Properties (Kuantan) Sdn. Bhd. 1) AES Builders Sdn. Bhd. 199201014 (2439-T) 20170101199 (12211-P) Construction of residential and commercial properties. Property development and property investment. 40 Owned Assoiate through Kirana Masyhur Sdn. Bhd. : Wholly-Owned Subsidiaries of Grand Superland Sdn. Bhd.: 1) Landasan Surimas Sdn. Bhd. 2010010343 (92239-A) (2) 1) Greatway Capital Sdn. Bhd. 2017010029 (1219794-H) Investment holding, project management consultation and Construction of residential and commercial properties. construction. 2) Serba Simfoni Sdn. Bhd. 2010100042 (122-H) Engage in the business of investment holding, export and import of goods and real property management. Note (1) Fotopop (M) Sdn. Bhd. was acquired on May 2020. (2) Landasan Surimas Sdn. Bhd. was acquired on 17 March 2020. 4 OCR GROUP BERHAD I ANNUAL REPORT 2019 Our vision is to provide Building roofs over the heads of every Malaysian, touching lives of the community livable spaces and be the jewel in the Crown of the nation. for a better tomorrow PRIYA Scheme Kuantan OCR GROUP BERHAD I ANNUAL REPORT 2019 5 BOARD OF DIRECTORS YAM TUNKU AZUDINSHAH ONG KAH HOE IBNI TUNKU ANNUAR Age 50, Male, Malaysian Age 45, Male, Malaysian Chairman/Independent Non-Executive Director Group Managing Director Chairman of Remuneration Committee Chairman of Risk Management Committee Chairman of Nominating Committee Chairman of Option Committee Member of Audit Committee Member of Remuneration Committee YAM Tunku Azudinshah Ibni Tunku Annuar was Mr. Ong Kah Hoe was appointed to the Board as a Non- appointed to the Board of Directors (“Board”) as an Independent Non-Executive Director on 14 November Independent Non-Executive Director cum Chairman of 2014 and was re-designated as Executive Director on the Board on 14 August 2015. He is the Chairman of 2 April 2015. He was appointed as Group Managing Remuneration Committee and Nominating Committee Director of the Company on 19 August 2016. Mr. Ong is as well as member of the Audit Committee of OCR the Chairman of Risk Committee and