Annual Report
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BRIDGING THE REGION ANNUAL REPORT 2019 CONTENTS 01 Our Mission 02 Corporate Profile 04 Chairman’s and CEO's Message 07 Key Financial Highlights 08 Financial Review 10 Board of Directors 14 Senior Management 16 Corporate Structure 17 Corporate Information 18 Awards & Accolades 20 Regional Presence 21 Financial Report 111 Corporate Governance Report 130 Additional Information On Directors Seeking Re-election 137 Risk Management Report 143 Statistics of Shareholdings 145 Notice of Annual General Meeting Proxy Form BRIDGING THE REGION 01 BBR HOLDINGS (S) LTD • ANNUAL REPORT 2019 OUR MISSION To strengthen our capabilities continuously in order to compete in the building and construction, civil engineering and property markets. To provide our clients with innovative structural engineering solutions for green and sustainable buildings by leveraging on our strengths and expertise in high specification construction methods, Swiss parentage, strong track record, established reputation and dynamic management team. To enhance greater opportunities in new markets, so as to further expand our geographical presence and intensify all efforts to bid for both building and infrastructure projects in the region. BRIDGING THE REGION 02 BBR HOLDINGS (S) LTD • ANNUAL REPORT 2019 CORPORATE PROFILE BBR Holdings (S) Ltd (“BBR”) is one of Singapore’s leading construction groups with more than 25 years of industry experience. It currently comprises four core business segments spanning across General Construction, Specialised Engineering, Property Development and Green Technology. The BBR Group is well-positioned to meet the urbanisation challenge in Asia with its proven track record and good combination of innovative engineering with specialist know-how in construction methods. It has business presence in key markets such as Singapore, Malaysia, and the Philippines. Listed in 1997 on SESDAQ, SGX’s then second board, BBR was subsequently upgraded to the Mainboard in September 2006. subsidiaries, Singapore Engineering & Construction BUSINESS OVERVIEW Pte Ltd (“SEC”) (formerly known as Singapore Piling SPECIALISED ENGINEERING & Civil Engineering Private Limited) and Singa Development Pte Ltd (“Singa”). In 1993, BBR was established with a bold vision to introduce innovative design solutions based on Acquired in 2001, SEC has more than 45 years of technologies from its Swiss-based BBR Network. history and has been registered with the Building and Construction Authority of Singapore under the The BBR Network was founded in 1944 when three “A1” classification for both General Building (CW01) Swiss engineers, Brandestini, Birkenmaier and Ros, and Civil Engineering (CW02) since 1984, enabling formed a partnership under the name BBR Bureau. the company to tender for public sector contracts of Since then, the BBR Network comprises a worldwide unlimited value. network of affiliated companies, joint ventures and franchisees that offer specialist construction Singa has a “B1” and “B2” classification for CW01 engineering activities spanning some 50 countries and CW02, respectively. from around the world. PROPERTY DEVELOPMENT Since its inception, BBR’s technology gained Highly synergetic to the Group’s broad construction market acceptance quickly and was recognised by activities, its Property Development business segment our customers for its cost effectiveness and high has been actively engaged in five development efficiency levels. projects since 2006. Subsequently, BBR flourished to take on larger Lush on Holland Hill, a freehold condominium projects in both the public and private sectors development with 56 spacious units in two 12-storey in Singapore and the region. BBR’s Specialised blocks, was completed in 2012. 8 Nassim Hill is an Engineering arm operates via its subsidiaries, BBR upmarket freehold development which comprised Construction Systems Pte Ltd and BBR Piling Pte Ltd 16 super luxury triplex units with basement carparks in Singapore, and BBR Construction Systems (M) Sdn was completed in 2010. Bliss@Kovan is the third Bhd in Malaysia. BBR has also invested in prefabricated freehold site which was developed into a five-storey pre-finished volumetric modular construction condominium with 140 luxurious residential units was (“PPVC”), whereby entire PPVC modules are built completed in November 2015. in multiple units complete with all internal finishes, fixtures and fittings. The prefabrication process takes All the units in these three freehold developments place in a factory and is then transported to the site were fully sold. for installation, similar to a ‘legolike’ assembly. BBR’s fourth project is Lake Life, Executive GENERAL CONSTRUCTION Condominium a development comprising 546 units of executive condominium which offers modern The General Construction segment comprises the and lifestyle design features on a 99-year leasehold principal activities in design-and-build, general HDB land site at Yuan Ching Road/Tao Ching Road, building construction, and civil structural engineering Jurong. The development was 100% sold and activities undertaken through its wholly-owned Temporary Occupation Permit ("TOP") was obtained on 30 December 2016. BRIDGING THE REGION 03 BBR HOLDINGS (S) LTD • ANNUAL REPORT 2019 CORPORATE PROFILE The Wisteria and Wisteria Mall, developed through Riding on the back of the potential growth for more a joint venture, is a 99-year leasehold residential and green buildings, the Group is steadily implementing commercial development located at Yishun Avenue green technology as part of its total solutions 4. The Wisteria residences was 100% sold and TOP package for potential project bids. was obtained in July 2018. The Wisteria comprises 3 blocks of 9-storey residential building, each tower consisting of 72 apartment units from levels 4 to 12. The residences are directly connected to Wisteria OUR BUSINESSES Mall, which consists of 2 levels of retail space at Our Principal Services are: basement and level 1, comprising food & beverage and retail outlets. General Construction BBR's latest property development project is The • Design-and-Build Linq @ Beauty World, a freehold mixed development developed through a joint venture. This development • General Building Construction comprises of a 2-storey commercial podium and a • Civil and Structural Engineering 20-storey residential apartment tower above with • Conservation and Restoration 120 apartment units, with a direct access to the Beauty World MRT station. GREEN TECHNOLOGY Specialised Engineering • Piling and Foundation Systems In 2013, BBR established a Green Technology division to carry out system integration and distribution of • Post-tensioning renewable energy. The Group has bid for projects • Stay Cable Systems to supply, install and lease solar panels and grid • Heavy Lifting connected systems for statutory boards and private sector customers. • Bridge Design and Construction To date, BBR has succesfully delivered two major • Maintenance Repair and Retrofitting solar leasing projects for 20 years and 25 years, • Prefabricated Prefinished Volumetric Construction from HDB and a commercial company, respectively. (PPVC) Construction for a 490kW peak grid-tied system for the latter was successfully completed in 2015 and revenue recognition has commenced for electricity Property Development generated. BBR’s construction of a 6MW peak grid- • Boutique developer for residential as well as mixed tied system which involved engineering, procurement commercial and residential development and construction works and installation of solar panels on the rooftops of 80 blocks of HDB flats in • Property management and consultancy services Ang Mo Kio Town was completed in 2016. A power purchase agreement has been signed with Ang Mo Green Technology Kio Town Council to maintain, lease and buy all the electricity generated by the system for a tenure of • System integration and distribution of renewable 20 years. energy In 2015, BBR is among one of nine consortia selected • Supply, installation and leasing of solar panels and to participate in the floating photovoltaic (“PV”) grid connected systems test-bed project at Tengeh reservoir jointly led by Singapore Economic Development Board and the Public Utilities Board. The test-bed project at Tengeh reservoir allowed companies to develop, test and evaluate the economic and technical feasibility of installing floating solar PV systems on water, as an alternative to deploying solar systems on rooftops. The project was completed in the last quarter of 2016. In 2019, BBR has secured, amongst others, a new contract from the Public Utilities Board for a two 1.5 megawatt-peak ("MWp") floating solar PV project at Bedok and Lower Seletar Reservoirs. BRIDGING THE REGION 04 BBR HOLDINGS (S) LTD • ANNUAL REPORT 2019 PROF. YONG KWET YEW TAN KHENG HWEE ANDREW Independent Director and Executive Director and Non-Executive Chairman Chief Executive Officer BRIDGING THE REGION 05 BBR HOLDINGS (S) LTD • ANNUAL REPORT 2019 CHAIRMAN’S AND CEO'S MESSAGE DEAR SHAREHOLDERS, In Malaysia, besides post-tensioning and pre- stressing works, major construction work in progress during the year pertained to construction works for FY2019 has been a difficult year for the BBR Group the Pan Borneo Highway Sarawak. We also secured as the operating environment for the construction a contract for a stay cable bridge which involves industry in FY2019 remained challenging. We upgrading of the existing Sungai Bintangor Bridge faced keen competition from overseas players from to become an iconic