18Th Annual General VENUE Banquet Hall, First Floor, Main Lobby TPC Kuala Lumpur 10 Jalan 1/70D Off Jalan Bukit Kiara Meeting 60000 Kuala Lumpur TIME 10.00 A.M
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18TH ANNUAL GENERAL VENUE Banquet Hall, First Floor, Main Lobby TPC Kuala Lumpur 10 Jalan 1/70D Off Jalan Bukit Kiara Meeting 60000 Kuala Lumpur TIME 10.00 a.m. DATE Wednesday, 6 June 2018 Now Available in this Annual Report The softcopy version of LBS Bina Group Berhad Annual Report 2017 is available from our website. Please visit www.lbs.com.my to view online or download. Proudly celebrating 25 momentous years of building over 30,000 affordable homes for Malaysians, LBS Bina Group Berhad - Malaysia's prominent township builder - is honoured to have had the opportunity to contribute to the transformation of lives and evolvement of the nation's landscapes. OUR VISION To be an internationally recognised 6 developer, building and inspiring The LBS Brand 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. Cover Rationale: For 25 years, LBS Bina Group Berhad has played a pivotal role in developing the nation’s future. Our commitment to transform lives, through evolving landscape and changing horizons of opportunity, have put us on the forefront in the property development industry. Given, our passion and professionalism, it has been our pride and privilege to deliver a positive impact on countless Malaysians and international communities, through creating landmarks that embody liveability. This is evident through the townships we developed. With optimism and positivity, we relish the next 25 years as we look forward to greater accomplishments within Malaysia and beyond as we continue to create evolving hallmarks of excellence 42 that leave a lasting legacy of a positive Letter from the and progressive society. Chairman 77 CORPOrate REVIEW Portfolio 2017 LBS at a Glance • 4 // INSIDE The LBS Brand • 6 // Milestones • 8 // Corporate Structure • 10 // THIS Corporate Information • 12 // Corporate Calendar 2017 • 14 // REPORT BOARD OF DIRECTORS Board and Board Committees • 22 // Board of Directors • 24 // 96 Sustainability Report Directors’ Profile • 26 // Key Senior Management • 32 // Key Senior Management Profile • 34 // FINANCIAL & OPeratiONS REVIEW Group Financial Highlights • 40 // Letter from the Chairman • 42 // Awards and Accolades • 46 // Management Discussion and Analysis • 50 // Portfolio 2017 • 77 // CORPOrate SOCIAL REVIEW Sustainability Report • 96 // CORPOrate ACCOuntabiLITY Statement on Corporate Governance • 118 // Audit Committee Report • 144 // Statement on Risk Management and Internal Control • 148 // Recurrent Related Party Transactions • 151 // FINANCIALS Financial Statements • 152 // OTHER INFOrmatiON List of Material Properties held by the Group • 331 // Analysis of Ordinary Shareholdings • 332 // Analysis of Warrant A Holdings • 336 // Analysis of Warrant B Holdings • 339 // 50 Analysis of Preference Shareholdings • 342 // Management Discussion and Analysis AGM INFOrmatiON Notice of Eighteenth Annual General Meeting • 345 // Privacy Notice • 350 // Form of Proxy // LBS AT A GLANCE AS AT 31 MARCH 2018 GARNERED DIVIDEND OF 20 8.2 SEN* AWARDS AND PER ORDINARY ACCOLADES SHARE BUILT MORE THAN 19 30,000 ON-GOING PROJECTS HOMES IN HAND APPROXIMATE REVENUE 576 RM1.36 EMPLOYEES IN MALAYSIA BILLION LAND BANK MORE THAN ACHIEVED 3,816 15% HIGHER SALES IN ACRES YEAR 2017 * 1.2 sen single-tier final dividend subject to the shareholders' approval. TRANSFORMING LIVES THROUGH EvolvingLANDSCAPES LBS has homes for every stage of to meet your needs in today’s In LBS, your life which allow you to live fast-paced world of technology, we strive to deliver your dreams - whether it is your first from affordability to design, home, upgrade to a spacious living sustainability to aesthetics. inspirational space space, investment home, holiday where people call it home or a place for your business. We are improving our processes to HOME. LBS creates inspiring and delightful ensure an effortless journey from spaces. More importantly LBS is sales enquiry to ownership. We’ve people-focussed and understands refined our processes to ensure our In LBS, your priorities and needs to achieve products deliver environment that we don’t just build your dream home and lifestyle. meets the needs of every generation house, we shape and community and ensure Through progressive creations, business are handled effortlessly living habitats of we want to ensure LBS homes, with all LBS customers – in terms of the future. townships and premises gives you property design, township planning the platform to experience a quality and development, customer service. and balanced lifestyle suitable 5 THE LBS BRAND 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 TRUST. THE INTERWovEN PATTERN IS THEN FURTHER EXPANDED INTO AN INFINITE MONagRAM DESIGN, SYMBOLISING LBS’ MISSION IN DELIVERING EXCEPTIONAL PERFORMANCE THROUGH PROGRESSIVE CREATIONS. Over the years, LBS has succeeded in establishing a solid foundation in crafting high-quality built environments. This is what we believe in. Our ongoing commitment to improving overall community wellbeing has enabled us to come far and become who we are. We are driven by our promise to create sustainable living, working and recreational environments that will provide a better future for everyone, a future that is worth beholding. 1992 Start of Maiden Project at Jelapang Maju Light Industrial Park Ipoh, Perak MILESTONES 2012 2011 2008 59 arces mixed Started building island CCPIT agreement with development at Genting resort lifestyle-focused China Highlands for city dwellers homes D’ Island Residence 2013 2014 2015 Build affordable homes Build Midhills at Genting Founded LBS Foundation Magma Garden in Batu Highlands as a getaway to give a helping hand for Pahat, Johor home for city dwellers education, community, environment and health Signed MOU on Zhuhai International Circuit Upgrading and Transformation Plan LBS began with one man’s vision. In the 1960s, Dato’ Seri Lim Bock Seng founded a construction business in Petaling Jaya. Within a few years, LBS’ scale of projects established it as a reputable property developer. Several of its well publicised accomplishments were Taman Perindustrian Bukit Serdang Seksyen 14 in Selangor, jointly developed with the 1992 Thomas Cup champions, Taman Pinggiran Putra, Serdang and the township project at Bandar Saujana Putra. LBS builds homes that meet the needs of Malaysians. For over 25 years, LBS has carefully nurtured a reputation for delivering properties with unsurpassed quality that inspire and enrich. By insisting on continually improving not only construction technologies but the very latest in architectural trends, LBS lives up to its belief that Malaysians deserve homes of the finest workmanship. 8 1993 1997 1998 Accomplishments were Restrategised to develop Expand to Pahang state Taman Perindustrian Bukit medium-low cost homes via development on 110- Serdang Seksyen 14 in and successfully shielded acre land in Cameron Selangor, jointly developed from financial crisis Highlands with the 1992 Thomas Cup champions, Taman Pinggiran Putra, Serdang 2007 2003 2002 Set up its own construction First township project at Listed on the Main Market arm, MITC Engineering Bandar Saujana Putra of Bursa Malaysia and Sdn Bhd to improve quality covering 850 acres of land expanded to Johor and and efficiency Zhuhai China 2016 Build Cameron 2017 Centrum with 86 acres project, biggest mixed Build LBS Alam Perdana, second development in Brinchang township in Klang Valley on 469.86- acre land Launched of Melaka Cultural and Trade Center Zhuhai, China 9 LBS BINA GROUP BERHAD (518482-H) ANNUAL REPORT 2017 CORPORATE Structure AS AT 31 MARCH 2018 100% 100% 100% 100% Intellplace Holdings Linkway Property LBS Bina Holdings LBS Landscape Limited (BVI) Co., Ltd (BVI) Sdn Bhd Sdn Bhd 100% ► 100% Adil Restu Sdn Bhd ► 100% LBS Capital Sdn Bhd Dragon Hill Corporation ► 100% Angsana Abadi Sdn Bhd ► 100% LBS Properties Sdn Bhd Limited (HK) ► 100% Astana Modal (M) Sdn Bhd ► 100% Maju Kamabisa Sdn Bhd ► 100% Azam Perspektif Sdn Bhd ► 100% Misi Aktif Sdn Bhd ► 100% Cergas Asal (M) Sdn Bhd ► 100% MITC Sdn Bhd 100% ► 100% Duta Abadi Sdn Bhd ► 100% Nuevoprima Development Lamdeal Investments Sdn Bhd Limited (HK) ► 100% Equal Alliance Sdn Bhd ► 100% Pelangi Homes Sdn Bhd ► 100% Equal Sign Sdn Bhd 100% Restu Bidara Sdn Bhd 51.92% Biz Bena ► 100% Focal Remedy Sdn Bhd Development ► 100% Fokus Awana Sdn Bhd Sdn Bhd 60% ► 100% Galeri Cekap Sdn Bhd ► 100% Puncak Gama Sdn Bhd Zhuhai International Circuit Limited (PRC) ► 100% Generasi Nostalgia Sdn Bhd ► 100% Saga Megah Sdn Bhd ► 100% Getstyle Sdn Bhd ► 100% Seribu Baiduri Sdn Bhd ► 100% Inderaloka Impian Sdn Bhd ► 100% Sinaran Restu Sdn Bhd 100% Juaraplex Sdn Bhd 100% ► 100% Johan Anggun Sdn Bhd 100% Kenderong Sdn Bhd Zhuhai International 100% Keranji Bina Sdn Bhd ► 100% Iringan Kejora Sdn Bhd Circuit Promotion (HK) 100% Lingkaran Semangat Sdn Bhd Limited (HK) ► 100% Jatidiri Gigih Sdn Bhd 100% Pacific Grant ► 100% Jauhari Unggul Sdn Bhd Sdn Bhd 100% Silibin Jaya Sdn Bhd BVI : The British Virgin Islands ► 100% Kalimah Jaya Sdn Bhd 55% Nilam Mewah HK : Hong Kong 100% Utuh Sejagat Sdn Bhd PRC : The People’s Republic Sdn Bhd of China ► 100% Utuh Aspirasi Sdn Bhd ► 100% Kilatlima Sdn Bhd 10 CORPORATE REVIEW 100% 100% 60% 54.72% Maju Kepunyaan SAUJANA TUNGGAL