ANNUAL REPORT 2012 OUR VALUES the Values to Govern Our Way of Doing Business and Branding
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ANNUAL REPORT 2012 OUR VALUES The values to govern our way of doing business and branding:- nature quality excellence love style OUR VISION Ever Searching for Better Living! OUR MISSION To be a lifestyle developer and make a difference in people’s lives through innovation. COMPANY PROFILE Country Heights Holdings Berhad (“CHHB”) is a public listed conglomerate with subsidiaries in property development and investments, hotel and resort management, healthcare, event planning and exhibitions, education and timeshare. CHHB was listed on the Main Market of the Bursa Malaysia Securities Berhad on 18 February 1994. Our largest development is the Mines Wellness City, where a once deserted opencast tin-mining lake was transformed into a sprawling hive of greenery and activities. Many of our award-winning projects, such as Palace of the Golden Horses, Mines Waterfront Business Park and Mines Exhibition Centre (MIECC) were developed around this now majestic lake. In CHHB, we take pride in our people, our Company and our developments. CONTENTS 3 Corporate Information 66 Statement on Corporate Governance 4 Profile of Board of Directors 73 Audit & Risk Management 10 Profile of Senior Management Committee Report 16 Chairman’s Statement 76 Statement on Internal Control 20 Group CEO Statement 78 Financial Statements 24 Property Development 159 Analysis of Shareholdings 37 Property Investment 160 List of Thirty Largest Securities Accounts Holders 42 Hospitality 161 List of Landed Properties Held by 49 Health the Group 52 Tourism & Membership 168 Notice of Annual General Meeting 55 Country Heights Education 172 Statement Accompanying Notice of Annual General Meeting 58 Corporate Social Responsibility Proxy Form 62 Group Structure Corporate Directory 64 Five-Year Group Financial Highlights We are the CHampS! Country Heights AMazing PeopleS! (Plural of people, Def: a body of persons that are united by a common culture, tradition, or a sense of kinship) Moving to its 30th anniversary soon, Country Heights understands that to be able to gain competitive edge and to maintain sustainability, Human Development is a crucial foundation. Hence, for 2012, Country Heights has dedicated to transform its Human Resource initiatives in formulating systematic programmes for its employees towards a purposeful and effective workforce. The first initiative was the launch of “CHampS!” The coining of a name is to create a common identity among all employees under different business units towards one goal, one culture and one direction. CHampS! is aimed to create unity, inclusiveness and a heighten energy among the approximately 1,200 workforce within the group. Each CHampS! abides the common values of caring, committed, healthy, honesty, appreciative, assertive, mannered, motivated, persistent, positive, sincere and successful as a guide in one’s individual conduct in the working environment. All employees working within the group is recognised as a CHampS! Caring & Appreciative & Persistent & Oomph! Committed! Assertive! Positive! (Energy) C A P S H M ! Healthy & Mannered & Sincere & Honest! Motivated! Successful! Country Heights Holdings Berhad 2 Annual Report 2012 CORPORATE INFORMATION BOARD OF DIRECTORS AUDIT & RISK REGISTRAR MANAGEMENT COMMITTEE General Tan Sri (Dr) Mohamed Hashim Shareworks Sdn Bhd Bin Mohd Ali (Rtd) Nik Hassan Bin Nik Mohd Amin No. 10-1, Jalan Sri Hartamas 8 Chairman, Sri Hartamas Independent Non-Executive Director General Tan Sri (Dr) Mohamed Hashim 50480 Kuala Lumpur Bin Mohd Ali (Rtd) Tel : 603-6201 1120 Tan Sri Lee Kim Tiong @ Lee Kim Yew Fax : 603-6201 3121 Deputy Chairman, Academician Tan Sri Emeritus Non-Independent Non-Executive Director Professor Datuk Dr. Ong Soon Hock AUDITORS Lee Cheng Wen Chew Chong Eu Deloitte KassimChan Group CEO, Chartered Accountants Non-Independent Executive Director Level 19, Uptown 1 NOMINATION COMMITTEE 1, Jalan SS21/58 Academician Tan Sri Emeritus General Tan Sri (Dr) Mohamed Hashim Damansara Uptown Professor Datuk Dr. Ong Soon Hock Bin Mohd Ali (Rtd) 47400 Petaling Jaya Independent Non-Executive Director Selangor Darul Ehsan Academician Tan Sri Emeritus Nik Hassan Bin Nik Mohd Amin Professor Datuk Dr. Ong Soon Hock Independent Non-Executive Director PRINCIPAL BANKERS Nik Hassan Bin Nik Mohd Amin CIMB Bank Berhad Chew Chong Eu Malayan Banking Berhad Independent Non-Executive Director RHB Bank Berhad REMUNERATION COMMITTEE Academician Tan Sri Emeritus Professor Datuk Dr. Ong Soon Hock SOLICITORS Yip & Co General Tan Sri (Dr) Mohamed Hashim Richard Talalla & Harun Bin Mohd Ali (Rtd) Arif & Hakim Lee Partnership Tan Sri Lee Kim Tiong @ Lee Kim Yew Ming, Yee & Co Arianti Dipendra Jeremiah Nik Hassan Bin Nik Mohd Amin Kevin & Co Lee Perara & Tan COMPANY SECRETARY Tan Kok Kee (MIA 4028) STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad REGISTERED OFFICE 10th Floor, Block C Mines Waterfront Business Park WEBSITE No. 3, Jalan Tasik www.countryheights.com.my Mines Wellness City 43300 Seri Kembangan Selangor Darul Ehsan Tel : 603-8943 8811 Fax : 603-8941 1470 Country Heights Holdings Berhad Annual Report 2012 3 PROFILE OF BOARD OF DIRECTORS GENERAL TAN SRI (DR) MOHAMED HASHIM BIN MOHD ALI (RTD) Independent Non-Executive Chairman, Malaysian, 78 years of age General Tan Sri (Dr) Mohamed Hashim bin He is the Chairman of Perwira Niaga Mohd Ali (Rtd) was appointed Chairman of Malaysia (PERNAMA), Ajinomoto (Malaysia) Country Heights Holdings Berhad on 20 Berhad, Delloyd Ventures Berhad, Datasonic August 1993. He is also the Chairman of the Group Berhad, Chiyoda (M) Sdn Bhd, Nomination Committee and a member of the Yokogawa Kontrol (M) Sdn Bhd, Dibena Remuneration and Audit & Risk Enterprise Sdn Bhd, National Aerospace & Management Committees of the Board. Defence Industries Sdn Bhd. He is currently the Chairman of the Southeast Asian He holds a Diploma in Advance Business Association of Glutamate Science Management from Harvard Business School. (“SEAAGS”). The member countries are He was conferred the Honorary Doctorate by Thailand, Indonesia, Philippines, Vietnam the University of Salford, United Kingdom in and Malaysia. He also sits on the Board of 1999 and the Honorary Doctorate by the Institute of Strategic and International Malaysian National Defence University in Studies (ISIS), Borneo Highlands Hornbill October 2012. He is a member of the Golf & Jungle Club Berhad, Mines Resort Selangor Royal Court (Ahli Dewan DiRaja Berhad, Mines Excellence Golf Resort Selangor) since 1 January 2005. Berhad as well as some other private companies. Prior to his entry into the corporate world, General Tan Sri (Dr) Mohamed Hashim Bin He is deemed interested in certain related Mohd Ali (Rtd) was the Chief of Defence party transactions of revenue or trading Forces in the Malaysian Armed Forces where nature which are necessary for the day to he chalked up 40 years of dedicated service. day operations of the Group. During his tenure in the Malaysian Armed Forces, he had initiated the re-organisation and modernisation of the Army. Country Heights Holdings Berhad 4 Annual Report 2012 PROFILE OF BOARD OF DIRECTORS Y. BHG. TAN SRI LEE KIM TIONG @ LEE KIM YEW Deputy Chairman Malaysian, 57 years of age Tan Sri Lee, the founder of Country Heights His magnificent development by transforming Tan Sri Lee also sits on the board of Golden Holdings Berhad, was first appointed to the the World’s largest excavated tin mine into a Horse Palace Berhad, Mines Excellence Golf Board on 1 October 1986. He is also a member flagship development with breathtaking Resort Berhad, Mines Resort Berhad and of the Remuneration Committee of the Board. landmarks such as Palace of the Golden several other private companies. Horses, Mines Wellness Hotel, Mines Tan Sri Lee is an established businessman and Waterfront Business Park, Mines Exhibition Tan Sri Lee is the father of Ms. Lee Cheng Wen, an innovative entrepreneur in the properties Centre (MIECC), Mines Wonderland and Mines Non-Independent Executive Director of the industry. He has almost over 30 years of vast Resort & Golf Club that has earned “The Mines Company. experience in residential, industrial park, hotel Resort City” the National Creativity & Innovation and leisure, commercial and recreation Award by the Malaysian Design Technology In view of his direct interest in CHHB and projects. His strong business acumen and Centre in 2004. substantial shareholdings in Golden Touch visionary leadership are the factors which led Venture Sdn Bhd, he is deemed interested in the Group’s successful completion of several In recognition of his immeasurable contribution certain related party transactions of a revenue or highly acclaimed projects. Country Heights to the property development and hospitality trading nature which are necessary for the day- Damansara and Borneo Highlands Resort have industry in Malaysia, Tan Sri Lee has been to-day operations of the Group. won the “Highly Commended - Best bestowed with the “Lifetime Achievement Development Malaysia” and “Highly Award” in the 2008 Technology Business Commended - Best Golf Development Review ASEAN Awards. Malaysia” respectively in the Asia Pacific Residential Property Awards in association with Bloomberg Television 2010. Country Heights Holdings Berhad was awarded “BestBrands Conglomerate Awards 2010-2011”. Country Heights Holdings Berhad Annual Report 2012 5 PROFILE OF BOARD OF DIRECTORS LEE CHENG WEN Group CEO Non-Independent Executive Director Malaysian, 27 years of age Ms. Lee Cheng Wen was appointed to the contributor in Country Heights Holdings the sole delegate for Malaysia in the Global Board on 1 October 2009. Berhad. In line with the company’s vision of Young Leaders Summit for 2004 and 2005 “Ever Searching for Better Living”, she has in the US and Europe. Ms. Lee officially joined Country Heights also spearheaded the project to transform Holdings Berhad on 7 July 2008. She was Mines Resort City to Mines Wellness City, an Ms. Lee also sits on the board of Golden attached with the Managing Director’s office innovative enhancement on the group’s Horse Palace Berhad, Borneo Highlands prior to her post in managing Country flagship project. In June 2011, she was re- Hornbill Golf & Jungle Club Berhad, Mines Heights Damansara.