Managing Director's review of group operations Dear Valued Shareholders,

These are being carried out by the Group’s core subsidiary I am pleased to present to you my second operation review. group namely LBS Bina Holdings Sdn Bhd (“LBS”). Demand When I presented my first review last year, the Group had for all our property launches has been buoyant and good sales just been listed and the property sector was at its height were recorded during the financial year under review. This is since the 1997 financial crisis. I am pleased to say that largely attributed to our product strategy that emphasize on despite some hitches during the year under review, location, wide range of products, quality and most importantly, Malaysian economy continued its growth in tandem with the affordable pricing supported by attractive mortgage financing positive consumer confidence. The Group has been able to packages offered by financial institutions. seize the opportunities and was able to register another impressive financial result for the year under review. In addition to the Property Division, the Group also has a Trading Division which includes the dealership of Perodua BUSINESS ACTIVITIES vehicles and trading in building materials, via the Group’s wholly-owned subsidiaries, Bandar Sakti Sdn Bhd ("Bandar Property development and Sakti") and Saga Megah Sdn Bhd ("Saga Megah") respectively. property investment would still remain as the main During the year, the Group has also ventured into the business business activities of the of providing Smart Home Systems to residential houses with Group. the acquisition of LBS Intech Sdn Bhd (formerly known as Technigreat Sdn Bhd).

Besides the Property and Trading Division, the Group is also involved in other businesses namely contructions (via MITC Sdn Bhd) and insurance (via Saga Serata Sdn Bhd) ("Saga Serata"),

PROPERTY DEVELOPMENT DIVISION

For the year under review, the property development division contributed RM220.3 million in turnover and RM55.1 million in profit before taxation. During the year under review, the Group has completed and handed over 2,776 units properties which cumulatively worth approximately RM319.0 million.

LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 9 Current Projects a Township project next to , USJ

The group has entered into three separate joint venture (“JV”) agreements with Permodalan Negeri Berhad (PNSB) to develop PNSB’s several parcels of adjacent land with a combined total area of approximately 820 acres. These parcels of land, with leasehold tenure of 99 years, are strategically situated next to the ELITE Highway, south and contiguous to Putra Heights (currently under development by SIME UEP) in the Mukim of , District of Kuala Langat, Selangor. The township project is easily accessible through excellent network of highways linking the neighbouring developments with and . The planned development comprises of more than 12,000 units of apartment, double storey terrace houses, semi- detached and detached houses, shops and commercial development. This project was launched in February 2003 when a total of 240 units low-medium cost apartment was offered to the public. This launch has enjoyed brisk sales as more than 80% sales was recorded as at 31 March 2003.

Bandar Saujana Putra - Medium Cost Apartments

Taman Pinggiran Putra

Taman Pinggiran Putra (“TPP”) is developed on a piece of 99-years leasehold land (expiring 2098) measuring approximately 190 acres through joint venture basis. TPP, a mixed development project, is strategically located in Serdang- corridor, offering easy access to Seremban-Melaka Highways, about 5 km from town and 20 km south of city within the Multimedia Super Corridor, near University Putra , Equine Park and Taman Lestari Perdana. It is also close to Universiti Putra Malaysia and Universiti Tenaga Malaysia. The whole project comprises a mixed development of more than 5,160 units of shop-apartments, apartments, highrise apartments with condo facilities (Vista Pinggiran), single-storey and double-storey terrace houses, semi-detached and detached houses. The remaining phases of the project covering approximately Taman Pinggiran Putra - Semi-D Houses 53 acres will comprise terrace houses, semi-detached houses, a pitch and putt golf course, commercial sites and a shopping complex and they will be launched progressively in future phase.

10 LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 Current Projects Taman Jaya

Taman Balakong Jaya is developed on two adjacent 99-year leasehold lands (expiring in the year 2095) measuring approximately 87 acres in size. This project is located in Balakong, Selangor. The entire development comprises more than 2,400 units of shop-apartments, apartments, single and double-storey terrace houses, shop houses, light industrial lots and terrace light industrial factories. The project was first launched in January 2000. As at 31 March 2003, a total of 1,525 units have been launched with more than 95% sales was recorded. Taman Balakong Jaya - 2 Storey Link Houses

Taman Kota Perdana

Taman Kota Perdana is developed on two parcels of adjacent land with a combined total are of approximately 157 acres in size. The project is located opposite Taman Pinggiran Putra project and Pasar Borong Selangor in the Serdang-Puchong corridor. Like Taman Pinggiran Putra, the project is strategically located with close proximity to University Putra Malaysia and University Tenaga, and the nation’s new Government administrative center. The entire development (for both parcels of land) comprises more than 2,900 units of shop-apartments, apartmemts, single and double-storey terrace houses, semi-detached and detached houses. The project was first launched in November 2000. As at 31 March 2003, more than 1,900 units comprises various mix have been launched, and the project has enjoyed brisk sales. Taman Kota Perdana - 2 Storey Terrace Houses

Taman Puteri Impian Bandar Damansara,

In January 2002, the Group launched the Taman Puteri Impian project in Bandar Damansara, Petaling Jaya. This is one of the first two JV projects with Tropicana Golf and Country Resort Bhd to develop on a leasehold land measuring approximately 11.3 acreas. The development comprises of 1,644 units of low, medium-low and highrise apartment (Bayu Puteri Apartment), and is located besides the North Valley Expressway and near the Lebuh Damansara-Puchong (“LDP”). As at 31 March 2003, 88% of the total of 1,449 units launched were sold.

Taman Puteri Impian - Medium-Low Apartments

LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 11 Current

Casa Projects Tropicana Bandar Damansara, Petaling Jaya

In addition to the Taman Puteri Impian project, the Group has also entered into a second JV agreement with Tropicana Golf and Country Resort Bhd, for the development of Casa Tropicana Condominium, comprises of 1,217 units of highrise luxurious condominium. Casa Tropicana will be developed on a leasehold land measuring approximately 8.2 acres, located next to Tropicana Golf and Country Club, Petaling Jaya. Phase 1 of the project comprises of 357 units was launched in March 2003 which registered a sales of 32% within a week.

Casa Tropicana - Condominiums

Pangsapuri SS 9 , Petaling Jaya Seri Setia

Pangsapuri Seri Setia project comprises of a 17 storey medium cost apartment with 164 units of apartments equipped with car parks and a swimming pool. This is a JV project with Majlis Perbandaran Petaling Jaya. This project will be developed on a piece of leasehold land located in SS9A Petaling Jaya measuring approximately 1.0 acres. It was launched in February 2002. As at 31 March 2003, 55% of the units launched were sold. Pangsapuri Seri Setia - Medium Cost Apartments Bandar a new township to Batu Pahat, Johor Putera Indah

The Group has entered into several JV agreements and project management agreement with Jasa Vista Sdn Bhd (JVSB) to jointly develop and manage JVSB’s freehold land with a total area of 1,288 acres. This project is the first fully integrated township in Batu Pahat and is strategically located 7 km from Batu Pahat township and is easily accessible to neighboring township such as Yong Peng, Muar and the North-South Expressway (PLUS). The self-contained township has been planned to cater for all walks of life, contains 23 phases and comprises of more than 12,000 units of residential, commercial and amenities; such as shopping complex, medical center, schools, college, club house, sports and recreational centre.

In October 2002, the first phase comprising 277 units single storey terrace houses with a minimum selling price of RM99,000 was launched. As at 31 March 2003, 233 units were sold and this translates an 84% sales. The second launch is in February 2003, a total of 100 units single-storey semi-detached houses were offered to the public and as at 31 March 2003, 89 units were sold.

Bandar Putera Indah - Single Storey Terrace House

Bandar Putera Indah - Single Storey Semi-Detached

12 LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 Current Projects

Puncak Jelapang Maju - Single Storey Houses

Puncak Jelapang Maju - 2 Storey Houses Jelapang Maju Light Industrial Park Puncak Ipoh Jelapang Maju Puncak Jelapang Maju is a residential and commercial development on several parcels of adjacent lands with combined land area measured at approximately 192 acres. The project is strategically located in Jelapang, Ipoh, Perak, which is a mixed residential and commercial area. It is located along the Ipoh-Lumut Highway and is also close to the Jelapang Interchange of the North-South Highway. The whole development comprises of more than 1,700 units of low cost flats, single-storey and double-storey terrace houses, semi- detached and detached houses, bunglow lots, shop and commercial development. The project was first launched in March 1998. As at 31 March 2003, more than 750 units or 88% out of the total 850 units of houses and bungalows launched were sold. Jelapang Maju Light Industrial Park, Ipoh Taman Jelapang maju Light Industrial Park is developed on a parcel Royal Lily of leasehold land measuring approximately 83 acres. This Cameron Highlands project comprises of 505 units of terrace and semi-detached factory and industrial lots. It is strategically located next to Taman Royal Lily is developed on a piece of leasehold land located in Puncak Jelapng Maju. The project was launched in 1992 and the Mukim of Tanah Rata, District of Cameron Highlands, Pahang. Its as at 31 March 2003, more than 95% of the total of 390 units strategic location i.e. approximately 1 km to the south west of Tanah launched were sold. Rata town centre and its close proximity to nearby holiday resorts and golf course is the strong selling points for this project.

The project comprises of 595 units of medium cost shop-apartments, apartments, terrace houses and bungalows and some commercial lots. It was first launched in December 2002. The whole development is expected to be completed within 5 years. As at 31 March 2003, more than 64% of the total of 496 units launched was sold.

Taman Royal Lily- 2 Storey Terrace Houses

LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 13 Future Projects Taman Pinggiran Putra - Medium Cost Apartments Proposed Condotel Project,

This project is a proposed development of 21 storey Condotel encompasses 598 units of service apartments and a shopping mall on 2 parcels of commercial freehold lands measuring approximately 2.7 acres located in Subang Jaya, Selangor. The proposed project is located within the developed township of Subang Jaya, Selangor and is easily accessible via KESAS Highway to the Federal Highway and Lebuhraya Damansara- Puchong (“LDP”) Highway.

Proposed Project in USJ – Pangsapuri Sri Nipah & Villa Subang Proposed Project in

This proposed project is a privatization project between state The proposed project involves the development of 6.7 acres on a of Selangor and the Group to develop a piece of 6.9 acres piece of leasehold land sited in Kota Perdana, Bandar Putra leasehold land and is located in the Mukim of Damansara, Permai. The land is generally elevated and sits on hard ground; Daerah Petaling, Selangor. The whole development thus commanding a breathtaking view of the surrounding. The comprises a 17-storey block of 310 units of Medium Cost development will comprise 54 units of double-storey semi- Apartment with facilities and a 11-storey 312 units of Low detached houses with an “exclusive gated-community” concept Cost Apartment. First launch of this project was the low cost where security and safety of the residents is greatly emphasized. apartment in early 2003 and was fully taken-up as at 31 March Each unit will consist of 4+1 bedrooms and 5 bathrooms 2003. complimented with quality finishing; spacious and functional layouts; attractive facades and a host of features to meet the demanding purchasers in the current market.

Bandar Putra Permai - 2 Storey Semi-D Houses Taman Bukit Serdang - 2 1/2 Storey Houses

Proposed Project in Bukit Serdang, Selangor Darul Ehsan

This proposed project is a joint-venture project and to be developed on a piece of leasehold land measuring approximately 24 acres. This project is sited between the 2 parcels of development called Taman Bukit Serdang, Section 11 and 12, a fully completed project by LBS Group. The proposed new development comprises approximately 1,035 units of apartments, semi-detached and terrace houses to be designed with contemporary architecture with functional layout. Priced affordably to attract the masses, the Group has planned to launch this project in a very near future.

14 LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 Future Proposed Project in , Projects This proposed project is a joint venture development with Perbadanan Setiausaha Kerajaan Selangor (PSKS) as landowner and LBS as Budget developer, to participate in the Selangor State Government’s priority squatter relocation programme to develop approximate 160 acres of Hotel land situated in the Mukim of Dengkil, District of Sepang. The land is Proposed Budget Hotel at Kuala Lumpur located about 15km north-west from Kuala Lumpur. Accessibility is through Jalan Puchong and the future South Expressway. The budget hotel is a joint venture project between The proposed project LBS Bina Holdings Sdn Bhd and Yayasan Wilayah comprises of 1,400 Persekutuan Kuala Lumpur. This project is a 13-storey residential and building comprises of 3 levels rentable floor area and 10 commercial units levels hotel rooms (170 units). The total land area is complimented with the approximately 6,400 sq ft.. It is strategically situated at public amenities and the junction of Jalan Tuanku Abdul Rahman and Sri generous landscaping. Amar at the heart of Kuala Lumpur city center. The construction works for this project will be commenced in the year of 2003 and expected to complete in the year 2005. By then, the budget hotel is expected to Proposed Project in Dengkil, Sepang attract more customers and tourists from around this vicinity, which includes busy shopping centers and This proposed project is a JV between the Group and Magma Destar various types of entertainment and food outlets. (M) Sdn Bhd, as a landowner to develop approximate 100 acres of land situated in the Mukim of Dengkil, District of Sepang, Selangor Darul Ehsan. The land is located about 48km to the South-West of Kuala Lumpur city centre. Accessibility are from Jalan Puchong, Expressway, Lebuhraya Damansara-Puchong and the future South Klang Valley Expressway. The proposed project is currently at planning stage, which encompasses 1,500 Residential and Commercial units with other amenities. It is expected to be launched in the end of year 2003.

Projects in Pelabuhan Kelang

The Group has entered into two separate JV agreements with Pemodalan Negeri Selangor Berhad (“PNSB”) and Kumpulan Darul Ehsan Berhad (“KDEB”) respectively to develop two parcel of leasehold land measuring approximately 3 acres and 4.9 acres respectively, both situated in Pelabuhan Kelang. This development land is situated beside the South Port in close proximity to the Pelabuhan Kelang town. The planned development is for a 11-storey shop-apartments comprises of 30 units of shops and 261 units of apartments. The KDEB joint-venture land is strategically located along the Kelang-Pelabuhan Kelang main road in the area, which is a densely populated residential area. The planned development is for a 11-storey shop-apartments comprises of 34 units of shops and 599 units of apartments.

Proposed project at West of Cyberjaya

This porposed project is a joint-venture between the Group and SAP Holdings Bhd to develop a 143-acre 99-year leasehold land (expiring in the year 2094) situated in Mukim Dengkil, Selangor. The proposed Budget Hotel project which is at the planning stage currently, is a mixed development of commercial and residential units.

LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 15 Future Projects

Golden Avenue

Proposed Golden Avenue Project, Jalan Tun Razak (Currently known as Tristar Project)

The project was first developed by Maju Kepunyaan Sdn. Bhd. (“MKSB”), a subsidiary acquired by the Group from Instangreen Corporation Sdn. Bhd. (formerly known as Instangreen Corporation Bhd) (“ICB”) as part of the restructuring of ICB Group. The project is developed on a parcel of freehold land measuring approximately 1.5 acres located along Jalan Tun Razak, Kuala Lumpur. The construction works for the project started in 1996 and has been put on a standstill since May 1998 due to financial difficulties faced by the ICB Group. The stage of completion currently is estimated at approximately 17%. To kick-start the revival plan, the initial building plan has been revised and approved by relevant authorities. The revised project will comprise 2 blocks of 35 and 38 storey service apartment, both resting on 11 levels of car park and 5 levels of retails podium. No work has been recommenced yet as of to date and nevertheless, the Group has planned to re-launch the project in a very near future.

Golden Avenue Project

Proposed project in Bandar Baru

This proposed project will be undertaken by LBS Bina Holdings Sdn Bhd’s associated company, Zhinmun Sdn. Bhd., to develop a 50- acre 99-year leasehold land situated in . The proposed project is at the planning stage currently.

Proposed Taman Golden Hills in Cameron Highlands

The proposed Taman Golden Hills project (the project’s name is subject to authorities’ approvals) is a mixed commercial and residential development on a 59-acre 60-year leasehold land (expiring in the year 2052). The project is located at Tanah Rata, Cameron Highlands. The whole development comprises of approximately 2,095 units of shop-apartments, apartments, double-storey terrace houses, bungalows and commercial site.

16 LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 Proposed project in Menglembu, Ipoh Proposed project in Jelapang, Ipoh

This proposed project is to develop a 18-acre leasehold land This proposed project is a joint-venture project between the situated in Menglembu, Ipoh, Perak and comprises of more Group and third party land owner to develop a 21-acre than 460 units of shop-apartments, apartments and double- leasehold land situated in Jelapang, Ipoh, Perak. The storey terrace houses. The estimated total GDV for the proposed project is at the planning stage currently. whole project is approximately RM32 million.

TRADING DIVISION

Bandar Sakti Sdn Bhd (“Bandar Sakti”) (an authorized dealer for the second national car, PERODUA) and Saga Megah Sdn Bhd (“Saga Megah”) are involved in the sales of motor vehicles and the trading of building materials respectively. Bandar Sakti is an authorized dealer for the second national car, PERODUA. During the year, the Group acquired LBS Intech Sdn Bhd, which is involved in the trading of home intelligent system. For the year ended 31 December 2002, contributions from the trading division to the Group’s turnover and profit before tax is RM31.9 million and RM1.1 million respectively.

OTHER DIVISION

The Group’s other operating division comprises the construction and insurance businesses. The construction activities are undertaken by MITC Sdn Bhd, whilst insurance is by Saga Serata Sdn Bhd. For the year ended 31 December 2002, contributions from these other operations to the Group’s turnover and profit before tax is RM21.3 million and RM56,688 respectively.

APPRECIATION

My sincere thanks go to our shareholders and customers for their loyalty and continued trust in our products and services, our partners, business associates especially consultants, contractors and suppliers for providing much-needed support and the various regulatory authorities for their wholehearted cooperation. I am grateful to the employees as our company’s success is largely due to their professionalism on the job and willingness to walk the extra miles for the customer. Finally, on behalf of the management team and all employees, I wish to express deep appreciation to members of the Board for standing with us to face every challenge.

DATO’ LIM HOCK SAN, D.S.S.A., J.P. 25 APRIL 2003

LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 17