IQGROUP-Annualreport2008 (600KB)
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IQ GROUP HOLDINGS BERHAD I annual report 2008 IQ GROUP HOLDINGS BERHAD IQ GROUP IQ GROUP HOLDINGS BERHAD (Company No: 636944-U) (Incorporated in Malaysia under the Companies Act, 1965) 149 Jalan Sultan Azlan Shah, Taman Perindustrian Bayan Lepas, Fasa 1 (FTZ), Bayan Lepas, 11900 Pulau Pinang, Malaysia. Tel: 04-644 6677 Fax: 04-644 9677 Web: www.iq-group.com annual report 2008 Applying bright ideas... CONTENTS 2 Corporate Information 3 Corporate Structure / Group Resources 4 – 5 Chairman’s Statement 6 – 7 Directors’ Information 8 – 11 Notice of Annual General Meeting 12 Statement Accompanying Notice of Annual General Meeting 13 – 17 Statement in relation to Proposed Share Buy-back 18 – 22 Statement On Corporate Governance 23 – 24 Statement Of Internal Control 25 Corporate Social Responsibility Statement 26 – 29 Audit Committee Report 30 – 32 Nomination Committee Report 33 – 35 Remuneration Committee Report 36 – 37 Additional Compliance Information 38 – 89 Financial Statements 90 List of Properties 91 – 92 Shareholdings Statistics Proxy Form BOARD OF DIRECTORS HEAD/MANAGEMENT OFFICE Chen, Wen-Chin Plot 149, Jalan Sultan Azlan Shah also known as Kent Chen Taman Perindustrian Bayan Lepas Executive Chairman Fasa 1 (FTZ), Bayan Lepas 11900 Penang Daniel John Beasley Telephone: 604-644 6677 Managing Director / Chief Executive Offi cer Facsimile: 604-644 9677 Email: headoffi [email protected] Ng Hai Suan @ Ooi Hoay Seng Website: www.iq-group.com Senior Independent Non-Executive Director PRINCIPAL BANKERS Charlie Ong Chye Lee Independent Non-Executive Director HSBC Bank Malaysia Berhad (127776-V) CORPORATE 1, Downing Street Yoon Chon Leong 10300 Penang INFORMATION Non-Independent Non-Executive Director Telephone: 604-262 9441 AUDIT COMMITTEE RHB Bank Berhad (6171-M) Commercial Banking Business Centre Ng Hai Suan @ Ooi Hoay Seng 1st Floor, No. 44, Lebuh Pantai Chairman Georgetown 10300 Penang Charlie Ong Chye Lee Telephone: 604-263 0291 Yoon Chon Leong Members Public Bank Berhad (6463-H) 5,7,9 & 11, Lorong Kampung Jawa REMUNERATION COMMITTEE Bandar Bayan Baru 11900 Bayan Lepas, Penang Charlie Ong Chye Lee Telephone: 604-643 8200 Chairman AUDITORS Ng Hai Suan @ Ooi Hoay Seng Daniel John Beasley Deloitte KassimChan (AF0080) Members 4th Floor, Wisma Wang 251-A, Jalan Burma NOMINATION COMMITTEE 10350 Penang Telephone: 604-228 8255 Ng Hai Suan @ Ooi Hoay Seng Chairman SHARE REGISTRAR Charlie Ong Chye Lee PFA Registration Services Sdn Bhd (19234-W) Yoon Chon Leong Level 17, Th e Gardens North Tower Members Mid Valley City Lingkaran Syed Putra ESOS COMMITTEE 59200 Kuala Lumpur Telephone: 603-2264 3883 Loo Weng Keong Facsimile: 603-2282 1886 Chairman Daniel John Beasley STOCK EXCHANGE LISTING Chee Ting Ting Members Main Board of Bursa Malaysia Securities Berhad COMPANY SECRETARY (Listed on 10 October 2005) Tan Choong Khiang (MAICSA 7018448) Stock Name : IQGROUP Stock Code : 5107 REGISTERED OFFICE 3rd Floor, Wisma Wang 251-A, Jalan Burma 10350 Penang Telephone: 604-228 8155 Facsimile: 604-269 2386 Email: [email protected] 2 IQ GROUP HOLDINGS BERHAD (636944 U) CORPORATE STRUCTURE as at August 5, 2008 IQ Group Sdn. Bhd. (IQM) 100% Design & Manufacture of PIR Sensor Lighting, Motion Sensors, Wireless Video & RF products Dong Guan Zhong Jia Electronics Co. Ltd. (IQC) 100% Manufacture of PIR Sensor Lighting & Motion Sensors IQ Group (Dongguan) Ltd. (IQD) 100% Manufacture and sales of Sensor Lighting, door bells, home security system, lighting fi xtures & plastic products. IQ (Europe) Limited (IQE) 100% IQ Group Holdings Bhd. Sales, Marketing & Distribution of PIR (IQGHB) Sensor Lighting & Motion Sensors Investment Holding & provider of IQ Japan Co., Ltd. (IQJ) 100% Management Services to subsidiaries Sales, Marketing & Distribution of PIR Sensor Lighting & Motion Sensors IQ Group Limited (IQGL) 100% Sales, Marketing & Distribution of PIR Sensor Lighting & Motion Sensors IQ Industries Limited (IQI) 100% Sales, Marketing & Distribution of PIR Sensor Lighting & Motion Sensors GROUP RESOURCES To help customers develop their business in these changing environments, IQ Group Holdings Berhad and its subsidiaries (“IQGHB Group”) have created an integrated resource structure comprising a broad range of specialist facilities and services including Research and Development, Manufacturing and Marketing. Th ese services are available individually or as part of a strategically co-ordinated business / partnership programme. Customers presenting a business opportunity are off ered the option of working with IQGHB Group’s design team to create new products on their behalf (ODM); contracting IQGHB Group to manufacture their existing products on their behalf (OEM);or simply purchasing from the existing range of IQGHB Group’s products. IQGHB Group’s portfolio of products includes: • Stand-alone PIR Sensors and Light Controllers • PIR Controlled Security Lighting • PIR Controlled Security Lighting • General Lighting (Uncontrolled) • Hardwired Electromechanical Door Chimes • Wirefree High Fidelity Door Chimes • Wirefree Lighting and Home Controls • Wireless Video Door Entry Products ANNUAL REPORT 2008 3 On behalf of the Board of Directors, it is “ my pleasure to present the Annual Report “of IQ Group Holdings Berhad for the fi nancial year ended 31 March 2008. CHAIRMAN’S Corporate Developments We are also gearing towards centralised STATEMENT business coordination at the head offi ce Th e business environment has fl uctuated in order to secure the benefi ts of eff ective and signifi cantly changed during the year. resource allocations and consolidating Such dynamics and uncertainties prompt us developments to achieve global product to derive growing clarity on our corporate off erings. With the OEM/ODM business, direction, making changes to shift focus to this approach is already adopted, however, where we can generate the most value to the further eff orts are required on our own DIY business. Th ese include the introduction and multi-channel distribution type business of a market and customer orientated in achieving the same goals. business generation structure, coupled with innovations, technology and cost control to Under the leadership of the Managing materialise business that delivers sustainable Director, Daniel Beasley, the business re- margins. organisation initiatives continue. Th e ultimate objective is to bring the business to We are already seeing some initial results a new paradigm, bringing up capabilities and from the new business generation structure, motivating people within the organisation, with more people focusing on front-end thus allowing the Group to excel and grow, activities and becoming increasingly more whilst simplifying and consolidating the confi dent following associated results. business. Th ese also include a directional approach of I believe that by seeing through the above consolidating manufacturing supply to gear initiatives, IQ-group will be well positioned up economies of scale and the simplifi cations to respond to the changing business needed to maximise our competitiveness. environment and thus, it is with confi dence Such changes are developing on a gradual that we move forward, developing a basis as we need to prioritise the continued foundation to achieve growth. supply to our customers. Th e start- up investment in our new IQ Group (Dongguan) Ltd. manufacturing facility, refl ects our commitment to this direction. 4 IQ GROUP HOLDINGS BERHAD (636944 U) Financial Overview Future Prospects For the fi nancial year ended 31 March Th e road ahead of the Group is challenging, 2008, the Group achieved revenue of with increasing competition and uncertainties RM139.31million, a 9% decrease compared due to rising costs and foreign exchange to the previous year’s revenue of RM153.77 impact. We are however, making changes to million, mainly due to price and exchange improve directional clarity and organisational rate erosions and the reduced needs from effi ciency in order to meet current and future both OEM and direct DIY customers in market demands. Th e management team, slowing market condition. Th e Group with the Board’s guidance is looking into recorded a profi t after tax of RM1.18 million. opportunities that add value to our operations Th e fi nancial year ended 31 March 2008 was and to spearhead our future growth. more challenging than ever before for the Group. Th e lower profi t after taxation was We will continue investing in our people, attributable to the signifi cant rise in material R&D and technology to give us an edge over costs and the continued strengthening of our competition. the Ringgit Malaysia and China Renminbi against the US Dollar, coupled with the cost At the heart of everything we do is the desire of internal investment which facilitates the to create sustainable profi table growth for directional and strategic changes mentioned our shareholders, while ensuring we continue above in order to provide the foundation to meet the current and future needs of our for future fi nancial growth, including customers. the investment into our new IQ Group (Dongguan) Ltd. manufacturing facility. Appreciation As at 31 March 2008, the net assets of the Group stood at RM107.06 million. On behalf of the Board of Directors, I would CHAIRMAN’S like to thank our management and staff for STATEMENT their hard work and dedication during the cont’d Dividend past year. Th e Board proposed no dividend for the Special thanks also to my colleagues on the fi nancial year ended 31 March 2008, Board for their strong contribution and considering changes and continued support. investments needed to fund changes, including new products, consolidated I would also like to express my sincere manufacturing supply and new business appreciation to our shareholders, customers, generations. business associates and suppliers for their valuable support. We will continue to work hard to grow the business and look forward to enhancing our Group performance in the future. Chen, Wen-Chin also known as Kent Chen Chairman ANNUAL REPORT 2008 5 DIRECTORS’ PROFILE Chen, Wen-Chin Chen, Wen-Chin also known as Kent Chen, aged 55, Taiwanese, is the Executive Chairman of IQ Group Holdings Berhad (IQGHB) and was appointed to the Board of Directors of IQGHB on 12 April 2005.