EMPOWERING INDIVIDUALS. ENHANCING COMMUNITIES.

ANNUAL REPORT 2019 EMPOWERING INDIVIDUALS

LBS family consists of our employees, homebuyers and ultimately the communities that we have created. Journeying and growing with them, seeing them empowered to embrace life and all its opportunities deliver returns on investment that is unmeasured.

ENHANCING COMMUNITIES

Building communities takes delicate planning and consideration. Each township and community is built on the pillars of afordability, connectivity and community while ensuring potential growth within the surrounding area. With the right environment, communities can be rooted and flourish. OUR VISION To be an internationally recognised developer, building and inspiring delightful spaces that enhance community living.

OUR MISSION To consistently deliver exceptional performance through progressive creations, realising value to all stakeholders and enriching communities at large.

WWW.LBS.COM.MY

LIST OF ABBREVIATIONS USED IN THIS ANNUAL REPORT

LBS or the Company : LBS Bina Group Berhad LBS Bina : LBS Bina Holdings Sdn Bhd LBS Group or the Group : LBS and its subsidiaries 01 Contents CORPORATE REVIEW

4 LBS at a Glance 7 The LBS Brand 05 8 Corporate Information CORPORATE ACCOUNTABILITY 10 Corporate Structure 12 Corporate Calendar 2019 122 Corporate Governance Overview Statement 146 Audit Committee Report 150 Statement on Risk Management and Internal Control 02 153 Recurrent Related Party Transaction BOARD OF DIRECTORS

20 Board and Board Committees 22 Directors’ Profile 32 Key Senior Management 06 34 Key Senior Management Profile FINANCIALS 03 154 Financial Statements FINANCIAL & 07 OPERATIONS REVIEW OTHER INFORMATION 38 Group Financial Highlights 42 Letter from the Chairman 355 List of Material Properties 46 Awards and Accolades 356 Analysis of Ordinary Shareholdings 48 Management Discussion and Analysis 360 Analysis of Warrant B Holdings 76 Portfolio 2019 363 Analysis of Preference Shareholdings 04 08 CORPORATE SOCIAL REVIEW AGM INFORMATION

96 Sustainability Report 366 Notice of 20th Annual General Meeting 372 Privacy Notice

Form of Proxy LBS BINA GROUP BERHAD LBS At A Glance As At 31 May 2020

Garnered 31 Awards and Accolades CORPORATE REVIEW

Dividend in specie Approximate in the ratio 762 3 : 100* Employees in Built more than Revenue 38,000 RM 1.33 Homes BILLION in year 2019 4 18 Land Bank More Than On-Going 3,610 Projects in Hand Acres

Achieved 7% Higher Sales in year 2019

* Subject to the shareholders’ approval

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

CARING TO COMMIT CORPORATE REVIEW

Caring for the people is the motivation to our commitment to develop and create opportunities and safe environment for all our existing and potential homeowners. Through this commitment, we have strived toward excellence and many of our townships and developments have been consistently recognised with awards by local and international bodies within the industry. 5 Beyond the business, LBS’s caring extends via its Corporate Social Responsibility in the areas of health, education, environment and community.

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

“In LBS, we strive to deliver inspirational space where people call it HOME.

In LBS, we don’t just build houses, we shape living habitats of the future. ” CORPORATE REVIEW

6

Artistic Impression: Kita @ Cybersouth by LBS

Empowering Individuals Enhancing Communities

LBS ofers homes for every stage of your life that allow you to live your dreams – whether it is your first home, an upgrade to a spacious living space, investment home, holiday home or a place for your business. LBS creates inspiring and delightful spaces. Because LBS is people-oriented, we are motivated by your priorities and needs to achieve your dream home and lifestyle.

Through community-centric development, we want to ensure LBS homes, townships and premises provide you with the environment to experience balanced lifestyle, be it active or relaxed; suitable to meet your needs in today’s fast-paced world of technology, from afordability to design, aesthetics to sustainability.

We are always improving on our processes to ensure the journey from sales enquiry to home ownership is smooth. We’ve refined our processes so that our products deliver environment that meets the needs of every generation and community, as well as making sure that business are handled professionally in terms of property design, township planning & development and customer service.

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD The LBS Brand Over the years, LBS succeeded in establishing a solid foundation in building homes that meet the needs of Malaysians. Our ongoing commitment to focus on the needs of families and bring improvement to the overall community wellbeing have enabled us to become who we are today. We are motivated by our commitment to create sustainable living, working and recreational environments that will provide a better future for everyone, consequently empowering individuals and enhancing communities. CORPORATE REVIEW

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Actual view: LBS, Head Ofce

The interweaving design represents the enduring bonds between the founder Dato’ Seri Lim Bock Seng and his four sons, who, together, expanded LBS into a leading property group, infused with their core values of unity and striving for excellence. The interwoven pattern is then further expanded into an infinite monogram design, symbolising LBS’ mission in delivering exceptional performance through progressive creations.

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

Corporate Information As At 31 May 2020 REGISTERED OFFICE MGB BERHAD SALES OFFICES & GALLERIES Plaza Seri Setia Level 1-4 H-G Sunway PJ@51A D’ ISLAND RESIDENCE No. 1 Jalan SS9/2 Jalan SS9A/19 Seksyen 51A No. 3 Jalan Timur 9 47300 47300 Petaling Jaya D’ Island Residence Darul Ehsan Selangor Darul Ehsan 47130 Malaysia Malaysia Selangor Darul Ehsan T + 603 7877 7333 T + 603 7874 5888 Malaysia F + 603 7877 7111 F + 603 7874 5889 Hotline: 1700 81 8998

BUSINESS ADDRESSES NORTHERN REGION HEAD OFFICE IPOH No. 2 & 6 Jalan SPU 1 Plaza Seri Setia Level 1-4 No. 17 Jalan Medan Ipoh 1A Bandar Saujana Putra No. 1 Jalan SS9/2 Medan Ipoh Bistari 42610 47300 Petaling Jaya 31400 Ipoh Kuala Langat Selangor Darul Ehsan Perak Darul Ridzuan Selangor Darul Ehsan Malaysia Malaysia Malaysia T + 603 7877 7333 T + 605 255 8820 Hotline: 1700 81 8998 F + 603 7877 7111 F + 605 548 6137 BRINCHANG SQUARE

CORPORATE REVIEW CREDIT ADMINISTRATION CAMERON HIGHLANDS B3-31-G Brinchang Square No. L3A-21 Plaza Seri Setia B3-31-G Brinchang Square Jalan Besar Brinchang No. 1 Jalan SS9/2 Jalan Besar Brinchang 39100 Cameron Highlands 47300 Petaling Jaya 39100 Cameron Highlands Pahang Darul Makmur Selangor Darul Ehsan Pahang Darul Makmur Malaysia Malaysia Malaysia T + 605 491 5018 T + 603 7861 6000 T + 605 491 5018 F + 605 491 5020 F + 603 7861 6001/6002 F + 605 491 5020 KUANTAN MITC SDN BHD SOUTHERN REGION B6-G Jalan IM 7/5 (PROJECT) BATU PAHAT Bandar Indera Mahkota 8 No. L3-12, L3-21 & L3-22 No. 22 Jalan 25200 Kuantan Plaza Seri Setia Taman Bukit Pasir Pahang Darul Makmur No. 1 Jalan SS9/2 83000 Batu Pahat Malaysia 47300 Petaling Jaya Johor Darul Takzim Hotline: 1700 81 8855 Selangor Darul Ehsan Malaysia Malaysia T + 607 438 8688 MIDHILLS, GENTING PERMAI T + 603 7877 7333 F + 607 438 8233 Lot 15360 Mukim Bentong F + 603 7861 8077 Daerah Bentong REGISTRAR Pahang Darul Makmur MITC SDN BHD TRICOR INVESTOR & ISSUING HOUSE Malaysia (PROPERTY MANAGEMENT/ SERVICES SDN BHD Hotline: 1700 81 8998 MAINTENANCE & PROJECT AUDIT) [REGISTRATION NO. 197101000970 No. L3A-03 (11324-H)] ZENOPY RESIDENCES Plaza Seri Setia Unit 32-01 173 & 175 Jalan LP 7/2 No. 1 Jalan SS9/2 Level 32 Tower A Taman Lestari Perdana 47300 Petaling Jaya Vertical Business Suite Avenue 3 Selangor Darul Ehsan Bangsar South 43300 Malaysia No.8 Jalan Kerinchi Selangor Darul Ehsan T + 603 7877 7333 59200 Malaysia F + 603 7861 8077 Malaysia Hotline: 1700 81 8998 T + 603 2783 9299 F + 603 2783 9222 RESIDENSI BINTANG E13 Pusat Bandar Bukit Jalil Jalan Jalil Utama 2 57000 Kuala Lumpur Malaysia Hotline: 1700 81 8998

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

SKYLAKE RESIDENCE PRINCIPAL BANKERS / FINANCIERS Jalan Putra Perdana 5A Afn Bank Berhad Al Rajhi Banking & Investment Corporation (Malaysia) Berhad 47130 Puchong Alliance Bank Malaysia Berhad Selangor Darul Ehsan AmBank (M) Berhad Malaysia Bank Kerjasama Rakyat Malaysia Berhad Hotline: 1700 81 8998 Bank of China (Malaysia) Berhad Bank Pembangunan Malaysia Berhad LBS PROPERTY GALLERY CIMB Bank Berhad G-10, Ground Floor, M3 Shopping Mall Industrial and Commercial Bank of China (Malaysia) Berhad No. 7, Jalan Madrasah Malayan Banking Berhad Taman Melati MBSB Bank Berhad 53100 Setapak Public Bank Berhad Kuala Lumpur RHB Bank Berhad Malaysia The Bank of East Asia, Limited Hotline: 1700 81 8998 United Overseas Bank (Malaysia) Berhad

LBS ALAM PERDANA STOCK EXCHANGE LISTING Persiaran Alam Perdana Main Market, Bursa Malaysia Securities Berhad

Bandar since 30 January 2002 CORPORATE REVIEW 42300 Stock Code : 5789 Selangor Darul Ehsan Stock Name : LBS Malaysia Sector : Properties Hotline: 1700 81 8998 WEBSITE KITA @ CYBERSOUTH www.lbs.com.my Kita @ Cybersouth Sales Gallery Cybersouth EMAIL 43800 Customer Service: [email protected] Selangor Darul Ehsan Malaysia SOCIAL MEDIA 9 Hotline: 1700 81 8998 Follow us on:

SOLICITORS WeChat Ezzah Elia & Associates lbsbinagroupmy Gan & Zul H.S.Lim & Malik Youtube Haq & Salleh LBS Bina Group Ismail Sabri Wee & Wong Khairul Azwan & Co Twitter L.M.N. Amran L. Ibrahim lbsbinagroup Lee, Ong & Partners Mandy Tan & Partners Facebook Manjit Singh Sachdev, Mohammad Radzi & Partners LBS Bina Group Nanthakumar & Co Ong & Partners Instagram Rashid Asari & Co lbsbinagroup Stella, Lim & Co Steven Tai, Wong & Partners Teh Kim Teh, Salina & Co. The Law Chambers of Hedzril Ting & Ting

AUDITORS UHY

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

Corporate Structure As At 31 May 2020

100% 100% 100% 100% Intellplace Holdings Linkway Property LBS Bina Holdings LBS Landscape Limited (BVI) Co., Ltd (BVI) Sdn Bhd Sdn Bhd

HK

100% CORPORATE REVIEW 100% Adil Restu Sdn Bhd 100% Pelangi Homes Sdn Bhd Dragon Hill 100% Alunan Prestasi Sdn Bhd 100% Restu Bidara Sdn Corporation 100% Angsana Abadi Sdn Bhd Bhd Limited 100% Astana Modal (M) Sdn 51.92% Biz Bena Bhd Development 100% Azam Perspektif Sdn Bhd Sdn Bhd 100% Cergas Asal (M) Sdn Bhd 100% Puncak Gama Sdn Bhd HK 100% Duta Abadi Sdn Bhd 100% Saga Megah Sdn Bhd 100% Equal Alliance Sdn Bhd 100% Sepadan Maju Sdn Bhd 100% 100% Equal Sign Sdn Bhd 100% Seribu Baiduri Sdn Bhd Lamdeal 100% Focal Remedy Sdn Bhd 100% Sinaran Restu Sdn Bhd 10 Investments 100% Fokus Awana Sdn Bhd 100% Juaraplex Sdn Limited 100% Galeri Cekap Sdn Bhd Bhd 100% Generasi Nostalgia Sdn 100% Kenderong Sdn Bhd Bhd 100% Generasi Simbolik Sdn 100% Keranji Bina Sdn PRC Bhd Bhd 100% Getstyle Sdn Bhd 100% Lingkaran 60% 100% Inderaloka Impian Sdn Semangat Sdn Bhd Bhd Zhuhai 100% Intellview Sdn Bhd 100% Pacific Grant International 100% Jatidiri Gigih Sdn Bhd Sdn Bhd Circuit Limited 100% Jauhari Unggul Sdn Bhd 100% Silibin Jaya Sdn 100% Kalimah Jaya Sdn Bhd Bhd 100% Utuh Sejagat 55% Nilam Mewah Sdn Bhd Sdn Bhd HK 100% Kilatlima Sdn Bhd 100% Taman Sempurna Sdn 100% 100% LBS Capital Sdn Bhd Bhd Zhuhai 100% LBS Properties Sdn Bhd 100% Utuh Aspirasi Sdn Bhd International 100% Maju Kamabisa Sdn Bhd 85% Johan Anggun Sdn Bhd Circuit 100% Megah Solaris Sdn Bhd 82% Kemudi Ehsan Sdn Bhd Promotion (HK) 100% Misi Aktif Sdn Bhd 81% Induk Pelita Sdn Bhd Limited 100% MITC Sdn Bhd 81% Seloka Sinaran Sdn Bhd 100% Nuevoprima 80% Pembangunan Primer Development Sdn Bhd Sdn Bhd

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

100% 100% 59.85% 100% 60% Kita Sejati Sdn Bhd Puncak Maksimum MGB Saujana Tunggal SPJ Construction (formerly known as Berhad Berhad Sdn Bhd Sdn Bhd Maju Kepunyaan Sdn Bhd)

100%

80% Prima Utuh Sdn Bhd 100% MGB Construction Sdn Gerbang Mekar Sdn Bhd CORPORATE REVIEW 75% Koleksi Sigma Sdn Bhd Bhd 70% Iringan Kejora Sdn Bhd 100% MGB Land Sdn Bhd 100% MGB Construction & 70% LBS Maju Sdn Bhd 100% Delta Gallery Engineering Sdn Bhd 69% Casa Inspirasi Sdn Bhd Sdn Bhd (formerly known as MITC 61% Dataran Enigma Sdn Bhd 100% Idaman Kukuh Engineering Sdn Bhd) 60% Bimbingan Sumber Sdn Sdn Bhd (Cont’d) Bhd 100% Idaman Aktif Sdn 30% MGB JPC 60% Healthguard Medicare Bhd Consultancy Sdn Sdn Bhd 100% Idaman Elegan Bhd 60% Nuevo Attraction & Sdn Bhd 30% YLT Consultancy Destination Sdn Bhd 100% Idaman Living Sdn Bhd 11 51% Bimbingan Simfoni Sdn Sdn Bhd 100% Vintage Roofing & Bhd 100% Multi Court Construction Sdn Bhd 51% Dayang Merdeka Sdn Bhd Developers Sdn 100% Vintage Tiles Holdings 51% Kirana Emas Sdn Bhd Bhd Sdn Bhd 51% LBS Borneo Sdn Bhd 100% Sinaran Kencana 80% Newsteel Building 51% Legasi Holdings Group Sdn Bhd Systems Sdn Bhd Sdn Bhd (formerly 51% Alunan Warta Sdn Bhd 51% Mayang Jelatek Sdn Bhd known as VTI 51% Panglima Riang Sdn Bhd Consortium 51% Retro Court Sdn Bhd Sdn Bhd) 51% Wirama Era Baru Sdn Bhd 100% MGB Construction & 49% Bendera Berlian Sdn Bhd Engineering Sdn Bhd 40% Bayu Cergas Sdn Bhd (formerly known as MITC 35% Usaha Semarak Sdn Bhd Engineering Sdn Bhd) 30% Pristine Sunrise (M) Sdn 100% Prisma Craft Sdn Bhd Bhd 30% Sambungan Aktif Sdn 100% Prisma Kasturi Bhd Sdn Bhd 30% Setara Armada Sdn Bhd 100% Top Ace 30% Warnasari Idaman Sdn Solutions Sdn Bhd Bhd 20% Tarikan Puncak Sdn Bhd 100% MGB Geotech Sdn Bhd 81% MGB Sany (M) BVI : The British Virgin Islands IBS Sdn Bhd HK : Hong Kong PRC : The People’s Republic of China

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

Corporate Calendar 2019 January

4 January 2019 2019 Media Briefing: LBS Achieved Fourth Consecutive Year of Growth CORPORATE REVIEW

23 January 2019 LBS and Perak State Secretary Incorporated (SSI) signed a MoU to Jointly Develop Land in Perak 12

30 January 2019 LBS Photography and Creativity Contest

31 January 2019 LBS Town Hall Meeting (1st Half Year of 2019)

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

February

23 February 2019 LBS foundation signed MoU with Council to Revitalise Firefly Park and Enhance Sustainability of Local Communities

March CORPORATE REVIEW

4 March 2019 LBS launched “LBS Bonus Kaw-Kaw” reward programme for Homebuyers

5 March 2019 StarProperty.my Awards 2019 13

7 March 2019 Tan Sri Dato’ Sri Lim Hock San as the Main Speaker at Entrepreneurial Leader Seminar held at University College, Skudai, Johor

15 March 2019 Des Prix Infinitus ASEAN Property Award

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

Corporate Calendar 2019 (Cont’d)

15 March 2019 MGB opens First Permanent IBS Precast Concrete Plant The opening was ofciated by YB Puan Hajah Zuraida Binti Kamaruddin, Minister of Housing and Local Government

21 March 2019 World Down Syndrome Day: CORPORATE REVIEW LBS sponsored RM30,000 for Kiwanis Down Syndrome Foundation-National Centre on 36th Kiwanis Treasure Hunt

14 April

9 April 2019 LBS Kita @ Cybersouth- Unveiled new Township Project for Afordable Housing

12 April 2019 LBSclub 10th Bowling Tournament 2019

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

14 April 2019 PropertyGuru Asia Property Awards (Malaysia) 2019

May

3 May 2019 Property Insight Prestigious Developers Awards 2019 CORPORATE REVIEW

3 May 2019 National Housing and Property Focus Summit 2019 Tan Sri Dato’ Sri Lim Hock San, as a panel guest speaker at the CEO National Housing and Property Focus Summit 2019 at the 3rd Asia Pacific CEO Forum 15

4-6 May 2019 LBSclub 8th Treasure Hunt from KL to Penang 36th Kiwanis Treasure Hunt

15 May 2019 Tan Sri Dato’ Sri Lim Hock San is the First Malaysian Business Leader to receive Highest Recognition at the 3rd Asia Pacific CEO Forum

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

Corporate Calendar 2019 (Cont’d) June

18 June 2019 Signing Caremony between PCSB-MGB Consortium & Must Ehsan Development Sdn Bhd for “Rumah Idaman” afordable Homes

21 June 2019 BCI Asia Awards 2019 - Top 10 Developers Awards 2019 CORPORATE REVIEW

28 June 2019 19th Annual General Meeting 2019

16 July

8 July 2019 Malaysia-China Outlook Forum 2019 Tan Sri Dato’ Sri Lim Hock San as a speaker

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

19 July 2019 LBS Town Hall Meeting (2nd Half Year of 2019)

August

28 August 2019 Malaysia Hokkien Enterpreneurship Award 2019-Golden Brick Award Dato’ Sri Daniel Lim Hock Sing received the Business CORPORATE REVIEW Leadership Award

October 9 October 2019 17 iProperty Development Excellence Awards (IDEA) 2019

24 October 2019 Launch of “Melodi Perdana”

30 October 2019 Training for Directors & Staf: The New Section 17A on Corporate Liability in the Malaysia Anti-Corruption Act

ANNUAL REPORT 2019 LBS BINA GROUP BERHAD

Corporate Calendar 2019 (Cont’d) November

11 November 2019 9th Media Appreciation Night 2019

25 November 2019 Launch of Ajar-Ajar Malaysia Branch LBS foundation collaborated CORPORATE REVIEW with Ajar-Ajar Malaysia and Tunku Abdul Rahman University College to establish Pusat Tuisyen at M3 Shopping Mall and was launched by YB Datin Paduka Dr Tan Yee Kew, member Parliment of Wangsa Maju

18 December

5 December 2019 In-House Training: Essential First Aid, CPR & AED

ANNUAL REPORT 2019