1
nd 32 ANNUAL GENERAL MEETING
VENUE Grand Seasons Hotel, 72 Jalan Pahang, 53000 Kuala Lumpur DATE Thursday, 23 November 2017 TIME 10.00 a.m.
NOTICE OF THE MANAGING STATEMENT ON THIRTY-SECOND DIRECTOR’S CORPORATE ANNUAL GENERAL STATEMENT GOVERNANCE 02 MEETING 26 46 STATEMENT CORPORATE STATEMENT ON ACCOMPANYING SOCIAL RISK MANAGEMENT NOTICE OF RESPONSIBILITY AND INTERNAL ANNUAL GENERAL CONTROL 05 MEETING 32 53 CORPORATE DIRECTORS’ AUDIT INFORMATION PROFILE COMMITTEE’S 10 40 56 REPORT EXECUTIVE KEY SENIOR FORM OF CHAIRMAN’S MANAGEMENT PROXY 14 STATEMENT 44 161 EKOVEST BERHAD * ANNUAL REPORT 2017 2 www.ekovest.com.my
NOTICE OF THIRTY-SECOND ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT the Thirty-Second Annual General Meeting of the Company will be held at Grand Seasons Hotel, 72 Jalan Pahang, 53000 Kuala Lumpur on Thursday, 23 November 2017 at 10.00 a.m. for the purpose of transacting the following businesses:-
AGENDA
1. To lay the Audited Financial Statements for the financial year ended 30 June 2017 together with Please refer the Reports of the Directors and the Auditors thereon. Explanatory (i)
2. To re-elect Dr. Wong Kai Fatt who retires in accordance with Article 82 of the Company’s Articles of Association. Resolution 1
3. To re-elect Tan Sri Datuk Seri Lim Keng Cheng who retires in accordance with Article 117 of the Company’s Articles of Association. Resolution 2
4. To re-appoint the following Directors:-
i) Mr. Khoo Nang Seng @ Khoo Nam Seng Resolution 3 ii) Mr. Chow Yoon Sam Resolution 4
5. To approve the payment of Directors’ Fees for the financial year ended 30 June 2017. Resolution 5
6. To approve the payment of Directors’ Benefits up to an amount of RM200,000 from 1 July 2017 until the next Annual General Meeting of the Company. Resolution 6
7. To declare a First and Final Single Tier Dividend of 2 sen per share in respect of the financial year ended 30 June 2017. Resolution 7
8. To re-appoint Messrs. Mazars PLT as Auditors for the financial year ending 30 June 2018 and to authorise the Directors to fix their remuneration. Resolution 8
9. As Special Business, to consider and if thought fit, to pass the following ordinary resolutions with or without modifications:-
CONTINUING IN OFFICE AS INDEPENDENT NON-EXECUTIVE DIRECTOR
“THAT approval be and is hereby given for Ms. Kang Hui Ling who has served as an Independent Non-Executive Director of the Company for a cumulative term of more than 9 years, to continue to act as an Independent Non-Executive Director of the Company”. Resolution 9
AUTHORITY PURSUANT TO SECTIONS 75 AND 76 OF THE COMPANIES ACT 2016
“THAT subject always to the Companies Act 2016, the Articles of Association of the Company and the approvals of the relevant governmental/regulatory authorities, the Directors be and are hereby empowered pursuant to Sections 75 and 76 of the Companies Act 2016 to issue shares in the Company, from time to time to such persons and upon such terms and conditions and for 3
NOTICE OF THE THIRTY-SECOND ANNUAL GENERAL MEETING
such purposes as the Directors may, in their absolute discretion, deem fit, provided that the aggregate number of shares to be issued does not exceed 10% of the total number of issued shares of the Company for the time being and the Directors be and are also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad.
AND THAT such authority shall commence immediately upon the passing of this Resolution and continue to be in force until the conclusion of the next Annual General Meeting of the Company.” Resolution 10
PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE AND ADDITIONAL MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE
“THAT authority be and is hereby given pursuant to paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad for the Company and its subsidiaries to enter into recurrent related party transactions of a revenue or trading nature as stated in section 2.4 of the Circular to Shareholders dated 31 October 2017 with the related parties listed in section 2.3 of the Circular which are necessary for the day-to-day operations, in the ordinary course of business, made on at arm's length basis and on normal commercial terms which are not more favourable than those normally available to the public and are not to the detriment of the minority shareholders;
AND THAT the authority conferred by this Mandate shall commence immediately upon the passing of this resolution and is subject to annual renewal. In this respect the authority shall only continue to be in force until:-
a) the conclusion of the next Annual General Meeting of the Company at which time the authority will lapse, unless the authority is renewed by a resolution passed at that Annual General Meeting; b) the expiration of the period within which the next AGM is to be held pursuant to Section 340(2) of the Companies Act 2016 (“the Act”) but must not extend to such extension as may be allowed pursuant to Section 340(4) of the Act; or c) revoked or varied by resolution passed by the shareholders in general meeting,
whichever is the earlier”. Resolution 11
10. To transact any other matter for which due notices have been given in accordance with the Company's Articles of Association and the Companies Act 2016.
NOTICE IS ALSO HEREBY GIVEN THAT subject to the approval of the shareholders at the Thirty-Second Annual General Meeting, the First and Final Single Tier Dividend of 2 sen per share will be paid on 26 January 2018 to members whose names appear in the Record of Depositors on 29 December 2017.
FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall qualify for entitlement only in respect of:
i. Shares transferred into the Depositor's Securities Account before 4.00 p.m. on 29 December 2017 in respect of ordinary transfers; and ii. Shares bought on the Bursa Malaysia on a cum entitlement basis according to the Rules of the Bursa Malaysia Securities Berhad.
By Order of the Board
Lim Thiam Wah, ACIS Chartered Secretary Kuala Lumpur 31 October 2017 EKOVEST BERHAD * ANNUAL REPORT 2017 4 www.ekovest.com.my
NOTICE OF THE THIRTY-SECOND ANNUAL GENERAL MEETING
Notes: Explanatory notes on Special Business:-
1. Only depositors whose names appear in the General Meeting i. The Proposed Resolution 9, if passed, will allow Ms. Kang Hui Record of Depositors as at 9 November 2017 shall be entitled Ling to continue in office as Independent Non-Executive to attend and vote at the Annual General Meeting. Director.
2. A member shall be entitled to appoint not more than two (2) The Malaysian Code on Corporate Governance 2012 proxies to attend and vote at the same meeting provided that recommended that approval of shareholders be sought in the where a member appoints two (2) proxies, the appointment event that the Company intends to retain a person as an shall be invalid unless he specifies the proportions of his Independent Director, a person who has served in that capacity shareholdings to be represented by each proxy. for more than 9 years.
3. A proxy may but need not be a member of the Company. There The Board has assessed and recommended that Ms. Kang shall be no restriction as to the qualification of a proxy. Hui Ling who has served as Independent Non-Executive Director of the Company for more than 9 years, to continue 4. For an exempt authorised nominee which holds ordinary to act as Independent Non-Executive Director, subject to shares in the Company for multiple beneficial owners in one shareholders’ approval at the forthcoming Annual General securities account (“omnibus account”), there is no limit to the Meeting of the Company. number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. Key justifications for her recommendation to continue as Independent Non-Executive Director are as follows: 5. If the appointor is a corporation, the proxy form must be executed under its common seal or under thehand of an officer a. Fulfils the independent director criteria set out in the Main or attorney duly authorised. Market Listing Requirements of Bursa Malaysia Securities Berhad. 6. To be valid, the proxy form, duly completed must be deposited at the Registered Office not less than forty-eight (48) hours b. Relevant experience and expertise as set out in her profile before the time for holding the meeting or any adjournment in the Annual Report. thereof, in the case of a poll, not less than twenty-four (24) hours before the time appointed for the taking of the poll. c. Long service with the Company enhances her knowledge and understanding of the business operations of the 7. Pursuant to Paragraph 8.29A(1) of the Main Market Listing Group which enable her to contribute actively and Requirements of Bursa Malaysia Securites Berhad, all effectively during deliberations or discussion at Audit resolutions set out in this Notice will be put to vote by way of Committee and Board Meetings. poll. ii. The Proposed Resolution 10, if passed, will empower the Explanatory Note:- Directors of the Company to issue and allot shares in the Company up to an aggregate amount not exceeding 10% of (i) This Agenda is meant for discussion only as under the the total number of issued shares of the Company for the time provision of Section 340(1)(a) of the Companies Act 2016 the being for such purposes as they consider would be in the Audited Financial Statements do not require formal approval of interest of the Company. This authority unless revoked or the shareholders and hence, the matter will not be put forward varied at a general meeting will expire at the next Annual for voting. General Meeting. As at the date of this notice, no new shares in the Company were issued pursuant to the mandate granted (ii) Resolution 3 to the Directors at the last Annual General Meeting held on 23 To re-appoint Mr. Khoo Nang Seng @ Khoo Nam Seng as a November 2016 and which will lapse at the conclusion of the Director of the Company. Mr. Khoo Nang Seng @ Khoo Nam Thirty-Second Annual General Meeting. The general mandate Seng who was re-appointed as a Director pursuant to Section will provide flexibility to the Company for any possible fund 129 of the Companies Act, 1965 at the last Annual General raising activities including but notlimited for further placing of Meeting, being eligible, offered himself for re-appointment as shares for purpose of funding future investment(s), working a Director. capital and/or acquisitions.
The Proposed Resolution 3 if passed, will enable Mr. Khoo III. The Proposed Resolution 11, if passed, will authorise the Nang Seng @ Khoo Nam Seng to continue to act as Director Group to enter into recurrent related party transactions as of the Company and he shall be subject to retirement by specified in the Circular to Shareholders dated 31 October rotation at a later date. 2017, provided that such transactions are of a revenue or trading nature which are necessary for the Group's day-to-day (iii) Resolution 4 operations and are in the ordinary course of business made at To re-appoint Mr. Chow Yoon Sam as a Director of the on arm's length basis and on normal commercial terms which Company. Mr Chow Yoon Sam who was re-appointed as a are not more favourable to the related parties than those Director pursuant to Section 129 of the Companies Act, 1965 generally available to the public and are not detrimental to the at the last Annual General Meeting, being eligible, offered minority shareholders of the Company. This authority, unless himself for re-appointment as aDirector. revoked or varied at a general meeting, will expire at the next Annual General Meeting of the Company. The Proposed Resolution 4 if passed, will enable Mr Chow Yoon Sam to continue to act as Director of the Company and he shall be subject to retirement by rotation at a later date. 5
STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING PARTICULARS OF DIRECTORS WHO ARE STANDING FOR ELECTION AT THE THIRTY-SECOND ANNUAL GENERAL MEETING.
There is no Director standing for election at the Thirty-Second Annual General Meeting. EKOVEST BERHAD * ANNUAL REPORT 2017 6 www.ekovest.com.my RIVER OF LIFE A BLUE WATERFRONT IN KUALA LUMPUR 7 EKOVEST BERHAD * ANNUAL REPORT 2017 8 www.ekovest.com.my
Artist’s Impression 9
EkoCheras WORK IN PROGRESS EKOVEST BERHAD * ANNUAL REPORT 2017 10 www.ekovest.com.my
CORPORATE INFORMATION BOARD OF DIRECTORS
TAN SRI DATO’ LIM KANG HOO TAN SRI DATUK SERI KHOO NANG SENG @ Executive Chairman LIM KENG CHENG KHOO NAM SENG Managing Director Executive Director
LIM HOE KANG HUI LING LIM TS-FEI Executive Director Senior Independent & Independent & Non-Executive Director Non-Executive Director
DR. WONG KAI FATT CHOW YOON SAM LEE WAI KUEN Independent & Independent & Independent & Non-Executive Director Non-Executive Director Non-Executive Director
LIM CHEN HERNG WONG KHAI SHIANG LIM DING SHYONG Alternate Director to Alternate Director to Alternate Director to Tan Sri Dato’ Lim Kang Hoo Madam Lim Hoe Tan Sri Datuk Seri Lim Keng Cheng
COMPANY SECRETARY REGISTRARS LEGAL FORM AND PLACE Lim Thiam Wah, ACIS Sectrars Management Sdn Bhd OF INCORPORATION Lot 9-7 Menara Sentral Vista A public listed company incorporated PRINCIPAL PLACE OF BUSINESS No. 150 Jalan Sultan Abdul in Malaysia under Companies Act Ground Floor, Wisma Ekovest Samad Brickfields 50470 2016 and limited by shares No. 118 Jalan Gombak Kuala Lumpur 53000 Kuala Lumpur Tel : 03-22766138 PRINCIPAL BANKERS Tel : 03-40215948 Fax : 03-22766131 AmBank Berhad Fax : 03-40214027 CIMB Bank Berhad REGISTERED OFFICE Malayan Banking Berhad AUDITORS Ground Floor, Wisma Ekovest RHB Bank Berhad Mazars PLT No. 118 Jalan Gombak Public Bank Berhad Chartered Accountants 53000 Kuala Lumpur Kuwait Finance House (Malaysia) Berhad Wisma Selangor Dredging Tel : 03-40215948 Hong Leong Bank Berhad 11th Floor, South Block Fax : 03-40214027 142-A Jalan Ampang DOMICILE 50450 Kuala Lumpur LISTING STATUS Malaysia Tel : 03-21615222 Listed on Bursa Malaysia Fax : 03-21613909 Main Market WEBSITE www.ekovest.com.my 11 EKOVEST BERHAD * ANNUAL REPORT 2017 12 www.ekovest.com.my
DNOTES TUO THE KE 2 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 13
DUKE 2 WORK IN PROGRESS EKOVEST BERHAD * ANNUAL REPORT 2017 14 www.ekovest.com.my
EXECUTIVE CHAIRMAN’S STATEMENT
DEAR VALUED SHAREHOLDERS,
On behalf of the Board of Directors, I am pleased to present the Annual Report and Audited Financial Statements of Ekovest Berhad (“Ekovest” or “Group”) for the financial year ended June 30, 2017.
Tan Sri Dato’ Lim Kang Hoo Executive Chairman 15
EXECUTIVE CHAIRMAN’S STATEMENT
INDUSTRY TRENDS
was indeed a challenging year that impacted the 2016/2017 global economic landscape in many ways. Globally we witnessed major political developments amidst low commodity prices which contributed to the high volatility in financial markets. The Malaysian economy itself was not spared as lower domestic demand and consumer spending led the nation to experience gross domestic product (“GDP”) growth at a much slower pace of 4.2%.
Nevertheless, there are bright prospects ahead for the construction sector. According to a report by the Construction Industry Development Board (“CIDB”), construction growth was at 8.2% or RM140 billion in 2015 and 7.4% or RM166 billion in 2016. The astounding average construction growth of 11% during the 10th Malaysia Plan surpassed the performance of other economic sectors in Malaysia. In 2017, the construction sector is projected to grow by 8% to RM170 billion, mainly boosted by the numerous mega infrastructure projects in the country.
Strong revival of job flows is expected in the near future, driven by several mega rail projects such as the ECRL, HSR and MRT3. The contribution from these mega rail projects to the construction sector should not be underestimated.
This is notwithstanding the current infrastructure projects, such as the Refinery and Petrochemical Integrated Development project in Johor, Mass Rapid Transit (MRT) Line 2 and Light Rail Transit Line 3 in the Klang Valley, Gemas - JB double track rail as well as the Pan Borneo Highway connecting Sabah and Sarawak. These projects, in total, will equate to investments of more than RM200 billion.
Malaysia’s construction industry growth will be among the fastest in the world, from 2016 to 2020, supported by the Government’s plan to improve the country’s transportation network and tourism infrastructure, as well as to increase the volume of renewable projects. Additionally, the Government’s efforts to address the country’s housing shortage will help the industry continue its growth over the coming years.
On the property segment, the Group expects overall property market conditions to continue to be challenging, with bank lending rules remaining tight and oversupply persisting in certain sub-sectors. EKOVEST BERHAD * ANNUAL REPORT 2017 16 www.ekovest.com.my
EXECUTIVE CHAIRMAN’S STATEMENT
However, the Profit Before Tax (“PBT”) in the revenue and operational FINANCIAL for FYE2017 stood at RM176.7 million, profit before tax was mainly due PERFORMANCE which is lower than the PBT reported to the commencement of the in FYE2016 of RM190.9 million. This is construction work for Setiawangsa- due to a one-off expense amounting to Pantai Expressway (“SPE”), as well as In spite of volatile, uncertain, and RM22.6 million on fair value adjustment higher sales recognition for its property challenging conditions in financial year pursuant to the granting of the development; EkoCheras project. ended 2017 (FYE2017), Ekovest was Employees’ Share Option Scheme able to deliver another year of resilient (“ESOS”) incurred during the year . We and profitable financial performance. believe that the share options scheme The results reflect 2 implemented will provide motivation and a sense of features of the year, namely, the robust belonging to our employees and allows underlying construction of the Group the employees to grow together with and a drive to improve the efficiency the Group. and focus of our operations. Furthermore, the PBT reported in In FYE2017, Ekovest registered FYE2016 includes a fair value gain on revenue of RM1.1 billion, a 37.2% investment properties of RM123.0 increased as compared to RM793.6 million. Solely from operational million achieved in the previous perspective, the PBT for FYE2017 financial year ended 2016 (“FYE2016”). stood at RM199.3 million (excluding Our construction division contributed the deduction on ESOS’ fair RM858.4 million or 79%, property value adjustment), a commendable development contributed RM103.4 improvement from the previous year million or 9%, while our toll operations operational PBT of RM67.9 million contributed RM125.9 million or 12% to (excluding the fair value gain on the revenue achieved in FYE2017. investment properties). The increase 17
EXECUTIVE CHAIRMAN’S STATEMENT
STRATEGIC DIVIDENDS REVIEW To show commitment in granting our shareholders returns, the Board of For FYE2017, it was an active year for Directors had on 30 August 2017 us where we remained resilient and recommended a single tier dividend of focused on delivering growth and 2 sen per ordinary share for the long-term shareholders' value. We took financial year ended 30 June 2017. appropriate and deliberate actions This proposal is subject to the to drive performance. With a fair approval of shareholders at the balance of strength and resilience, forthcoming Annual General Meeting of prudence and sound enterprise risk the Company. management, we continued to navigate our way through the challenges to promote the Group’s various businesses. Ekovest is proud to APPRECIATIONS have historically stable and reliable earnings with good visibility provided Once again, on behalf of the Board of by a strong orderbook. Directors, I would like to express our deepest appreciation to our reliable We are committed to improving the management team and all dedicated built environment and we understand employees of the Group, for their the wider impact that our businesses unwavering commitment and support can make in supporting human activity for another spectacular year of through the delivery of superior quality achievements. in our buildings, roads, public spaces, infrastructure and other construction I would also wish to record our areas. sincere appreciation to our customers, clients, business associates, banks, While the short-term market and various government and local uncertainty exists in some of our authorities for their continuous support segments, our strategic focus has put and cooperation. us in a strong position to benefit from longer-term growth. Our hybrid Finally, I would like to express our business model creates long-term heartfelt gratitude to all our valued shareholders’ value by harnessing shareholders. Thank you all for your the benefits of our complementary unwavering faith and confidence in us. businesses - construction and property We uphold the responsibility that you development. This model limits the have entrusted us, striving to maximise impact of economic cycles and allows shareholders' value and deliver us to prioritise high-quality businesses, sustainable long-term earnings growth. so that we can target margins and We look forward to your continued deliver disciplined revenue growth. support and an even better financial year 2018.
Tan Sri Dato’ Lim Kang Hoo Executive Chairman 31 October 2017 EKOVEST BERHAD * ANNUAL REPORT 2017 18 www.ekovest.com.my
KENYATAAN PENGER USI EKSEKUTIF
PARA PEMEGANG SAHAM YANG DIHORMATI,
Bagi pihak Ahli Lembaga Pengarah, saya dengan sukacitanya membentangkan Laporan Tahunan dan Penyata Kewangan Ekovest yang telah di audit bagi Tahun Kewangan Berakhir pada 30 Jun 2017.
TREN INDUSTRI
Tidak dinafikan bahawa tahun 2016/2017 kita berhadapan dengan pelbagai cabaran yang telah memberi kesan pada ekonomi global. Dalam suasana perubahan politik yang berlaku sekarang kita menyaksikan kemelut kejatuhan pasaran komoditi yang menyumbang kepada kadar turun naik yang tinggi dalam pasaran kewangan. Malaysia juga tidak terlepas daripada belenggu ekonomi dengan permintaan yang lemah dalam negara dan pengurangan perbelanjaan pengguna dalam pasaran menyebabkan penurunan Keluaran Dalam Negara Kasar (“KDNK”) sebanyak 4.2%.
Namun begitu, sektor pembinaan masih mempunyai masa depan yang cerah. Menurut laporan dari Lembaga Pembangunan Industri Pembinaan (“CIDB”), peningkatan dalam pembinaan dicatatkan sebanyak 8.2% atau RM140 bilion pada tahun 2015 dan 7.4% atau RM166 bilion pada tahun 2016. Peningkatan purata yang tinggi dalam sektor pembinaan sebanyak 11% pada Rancangan Malaysia ke 10 melepasi prestasi lain-lain sektor ekonomi di Malaysia. Pada tahun 2017 sektor pembinaan dijangka meningkat sebanyak 8% kepada RM170 bilion akibat diransang oleh projek infrastruktur mega dalam negara.
Dianggarkan terdapat lambakan peluang-peluang pekerjaan yang didorong oleh beberapa projek rel mega seperti ECRL, HSR dan MRT3. Kepentingan projek-projek rel mega didalam sektor pembinaan dijangka akan memberi impak yang besar.
Walau apa pun, projek infrastruktur yang sedia ada antaranya Projek Pembangunan Bersepadu Penapisan Minyak dan Petrokimia di Johor, Projek Transit Massa (MRT) Fasa 2 dan Projek Transit Ringan (LRT) laluan ke 3 di Lembah Kelang, Projek Landasan Berkembar Elektrik Gemas - 19
KENYATAAN PENGERUSI EKSEKUTIF
TREN INDUSTRI (SAMBUNGAN)
Johor Bahru dan Projek Lebuhraya Pan Borneo yang bakal menghubungkan Sabah dan Sarawak. Jumlah keseluruhan projek-projek tersebut ialah melebihi daripada RM200 bilion. Kemajuan industri pembinaan di Malaysia adalah antara yang pesat di dunia sepanjang tahun 2016 hingga 2020. Ini sejajar dengan usaha Kerajaan untuk menaiktaraf rangkaian pengangkutan dan infrasruktur pelancongan negara dan juga untuk meningkatkan jumlah projek yang boleh diperbaharui. Selain itu usaha Kerajaan bagi mengatasi masalah kekurangan rumah dapat membantu industri pembinaan untuk terus berkembang di tahun-tahun akan datang.
Dalam segmen hartanah pula Kumpulan Syarikat menjangkakan keseluruhan pasaran akan terus mencabar dimana peraturan pinjaman bank yang ketat dan terdapat bekalan lebihan yang berterusan dalam sub-sektor tertentu.
PRESTASI KEWANGAN
Walaupun dalam situasi yang tidak menentu, tiada kepastian dan pelbagai cabaran ditempuhi sepanjang Tahun Kewangan yang Berakhir pada 2017 (FYE2017), namun Ekovest masih mampu berdaya saing dan hasilnya adalah prestasi kewangan yang menguntungkan. Kejayaan tersebut adalah kesan daripada 2 ciri perlaksanaan iaitu dasar pembinaan asas yang mantap oleh Kumpulan Syarikat dan memberikan tumpuan pada perlaksanaan operasi.
Bagi Tahun Kewangan Berakhir pada 2017, keuntungan Ekovest yang didaftarkan ialah sejumlah RM1.1bilion iaitu peningkatan sebanyak 37.2% berbanding RM793.6juta pada tahun sebelumnya iaitu Tahun Kewangan berakhir pada 2016 (FYE2016). Sektor pembinaan menyumbang sejumlah RM858.4juta atau 79%, pembangungan hartanah menyumbang sejumlah RM103.4juta atau 9% sementara operasi tol menyumbang sejumlah RM125.9juta atau 12% daripada keseluruhan keuntungan yang diperolehi bagi Tahun Kewangan Berakhir pada 2017.
Walau bagaimanapun keuntungan sebelum cukai (“PBT”) bagi Tahun Kewangan Berakhir 2017 (FYE2017) berjumlah RM176.7juta, dimana jumlah tersebut adalah lebih rendah daripada laporan PBT yang direkodkan pada FYE2016 berjumlah RM190.9juta. Ini berikutan perbelanjaan one-off sebanyak RM22.6juta keatas pelarasan nilai saksama berikutan pemberian Skim Opsyen Pilihan Pekerja (“ESOS”) pada tahun tersebut. Syarikat percaya dengan pemberian itu dapat meningkatkan motivasi serta dapat memupuk semangat kekeluargaan di kalangan para pekerja agar dapat seiring dengan perkembangan syarikat. EKOVEST BERHAD * ANNUAL REPORT 2017 20 www.ekovest.com.my
KENYATAAN PENGERUSI EKSEKUTIF
pelbagai cabang peluang perniagaan dalam Kumpulan Syarikat. Ekovest sangat berbangga mempunyai sejarah pendapatan Syarikat yang stabil dan boleh dipercayai melalui kekuatan kontrak yang sedia ada.
Kami komited dalam meningkatkan pembinaan persekitaran. Kami memahami bahawa faedah dari perniagaan yang dijalankan dapat menyokong aktiviti kemanusiaan melalui pembinaan bangunan yang berkualiti, pembinaan jalanraya, kemudahan awam, Infrastruktur dan lain-lain kawasan pembinaan yang terlibat.
Walaupun ketidaktentuan jangka pendek wujud di beberapa segmen dalam Syarikat, namun dengan kekuatan tumpuan strategik berjaya meletakkan Syarikat mengecapi manfaat hasil pertumbuhan jangka panjang. Model perniagaan hibrid telah berjaya mewujudkan nilai jangka panjang pemegang PRESTASI KEWANGAN saham dengan memanfaatkan perniagaan pelengkap (SAMBUNGAN) kami iaitu – Pembinaan dan Pembangunan Hartanah. Model ini dapat mengekang kesan kitaran ekonomi dan Selanjutnya, keuntungan sebelum cukai (“PBT”) yang di membolehkan kita memberi keutamaan kepada urusan laporkan dalam FYE2016 adalah termasuk keuntungan perniagaan berkualiti tinggi supaya kita dapat menyasarkan saksama keatas pelaburan hartanah berjumlah RM123.0 margin dan berupaya menghasilkan pertumbuhan juta. Dari perspektif operasi, PBT bagi FYE2017 berjumlah pendapatan yang konsisten. RM199.3juta (tidak termasuk potongan pelarasan nilai saksama ESOS) merupakan satu peningkatan yang baik dari PBT tahun sebelumnya yang berjumlah RM67.9 juta (tidak termasuk keuntungan saksama keatas pelaburan hartanah). Faktor utama lonjakan pendapatan dan keuntungan operasi sebelum cukai adalah faedah daripada permulaan kerja-kerja pembinaan Setiawangsa-Pantai Expressway (“SPE”) disamping pengiktirafan jualan yang tinggi bagi projek Pembangunan Hartanah; EkoCheras.
KAJIAN STRATEGIK
Tahun Kewangan Berakhir pada 2017 menyaksikan tahun yang rancak dimana kita kekal berdiri teguh dan memberikan tumpuan kepada peningkatan nilai tambah untuk para pemegang saham bagi jangka masa panjang. Kita telah mengambil langkah-langkah yang sesuai dan berani dalam memacu ekonomi syarikat. Bersama kekuatan yang seimbang, berdaya saing, berhemah dalam pengurusan risiko, organisasi kami terus mengemudi perjalanan yang penuh cabaran demi mengembangkan 21
KENYATAAN PENGERUSI EKSEKUTIF
DIVIDEN
Bagi membuktikan komitmen dalam memberikan pulangan kepada pemegang saham kami, pada tarikh 30 Ogos 2017 Ahli Lembaga Pengarah telah mencadangkan pendapatan dividen satu peringkat (single tier) sebanyak 2 sen bagi setiap saham biasa bagi Tahun Kewangan Berakhir 30 Jun 2017. Cadangan ini tertakluk atas kelulusan dari pemegang- pemegang saham pada Mesyuarat Tahunan yang akan datang.
PENGHARGAAN
Sekali lagi bagi pihak Ahli Lembaga Pengarah, saya ingin mengucapkan setinggi-tinggi penghargaan kepada pasukan pengurusan yang dinamik dan seluruh kakitangan Kumpulan Syarikat yang dedikasi diatas komitmen dan sokongan yang tidak berbelah bahagi berikutan pencapaian yang mengagumkan pada tahun ini.
Saya juga ingin merakamkan setinggi-tinggi penghargaan kepada pelanggan-pelanggan, rakan perniagaan, bank dan institusi kewangan,pelbagai badan kerajaan dan pihak berkuasa tempatan diatas sokongan dan kerjasama yang berterusan.
Akhir sekali, saya ingin menzahirkan penghargaan yang tidak terhingga kepada semua pemegang-pemegang saham yang dihormati. Terima kasih diatas kepercayaan dan keyakinan anda kepada kami. Kami menyanjung tinggi tanggungjawab yang telah diamanahkan serta berusaha bersungguh sungguh untuk memaksimakan nilai pegangan saham melalui pertumbuhan pendapatan jangka panjang yang berkekalan. Kami berharap agar sokongan ini akan berterusan untuk tahun kewangan yang lebih gemilang pada 2018 akan datang.
Tan Sri Dato’ Lim Kang Hoo Pengerusi Eksekutif 31 Oktober 2017 EKOVEST BERHAD * ANNUAL REPORT 2017 22 www.ekovest.com.my
诸位敬爱的股东:
我谨代表董事会,欣然 提呈怡克伟士有限公司 (EKOVEST BERHAD) 截至2017年6月30日 财政年的年度报告和 审计财务报表。
业界趋势
2016/2017 年,确实是充满挑战性的一 年。全球经济前景放缓让市场与政治引 起波动。
随着大马经济的波动,国内需求和消 费能力下降,导致国民生产总值 (“ GDP” )增长速度放缓至4.2%。尽 管如此,建筑领域的前景依然一片光 明。
根据建筑工业发展局(“ CIDB ”)的 报告,建筑工业在2016年增长了 7.4%占1千660亿令吉;比较与2015年增 长了8.2%,达到1千400亿令吉。
在“第10个大马计划”下,建筑业达到 平均增长率11%并且超越了大马的其他 经济领域表现。
在2017年内,建筑业预计将增长8%, 或1千700亿令吉,主要得益于国内多项 大型的基建工程。 23
业界趋势(继续) 至于房地产业部分,集团 预料将会继续面对挑 多个大型工程如 ELRL , HSR 战,基于银行放贷条款依 和MRT3 等将带动就业成 然严格。 长率,显示了这些大型铁 路工程对建筑业的重要 性。 财务表现
如今现有的基建工程,如 虽然2017财政年的经济略 柔佛的炼油和石油化工综 有波动 ,但是集团仍能交 合开发工程、巴生谷的 出一个标青的业绩。这反 MRT 第二线和轻快铁第三 映了集团的两大特点-集 线路、金马士—新山双轨 团建构的强大基础以及提 铁路,和衔接沙巴与砂拉 高效率与专注营运的驱动 越之间的泛婆罗洲快速 力。 公路,已达到投资总额超
过2千亿令吉。 在2017年,怡克伟士报10 亿1千万令吉的收入,比 从2016年至2020年,大马 较与2016年的7亿9千360 的建筑业增长率是世界其 万令吉增长了37.2%。 中增长最快的国家之一。 其中,建筑工程组贡献 随着政府计划改善国内的 8亿5千840万令吉或 交通网与旅游基础设 79%;产业发展则贡献1 施,以及致力解决国内的 亿340万令吉或9%;而过 住房不足,这将会带动建 路费经营贡献了1亿2千 筑业未来的发展。 590万令吉或12%。 EKOVEST BERHAD * ANNUAL REPORT 2017 24 www.ekovest.com.my
财务表现(继续) 上一个财政年的营运税前 盈利6千790万令吉(不包 2017财政年的税前盈 括投资产业取得的价值调 利(“ PBT ”)达1亿7千 整)。 670万令吉,仍低于2016 财政年的税前盈利达1亿9 税前营业额与盈利的 千零90万令吉。这是由于 增长,主要归功于 本年度一次性费用雇员认 Setiawangsa-Pantai 高 股计划(“ ESOS ”)的公 速公路(“ SPE ”)的建 允价值调整总值2千260万 筑工程展开,以及产业发 令吉。我们相信,股权认 展如 EkoCheras 取得的销 购计划将令员工更有驱动 售额。 力并与集团一起增长。
此外,2016财政年报告的 策略检讨 税前盈利,也包括了投资 产业的价值调整达1亿2千 2017财政年对我们来说是 300万令吉。 相当活跃的一年。我们仍 然保持弹性多变,并专注 如果从营运角度来看, 于提升股东的价值。 2017财政年的税前盈利1 亿9千930万令吉(不包括 我们慎重推广集团业 扣除雇员认股计划后的公 绩。在实力与弹性、审慎 允价值调整),仍高于 和健全企业风险管理取得 25
策略检讨(继续) 衷心感谢
良好平衡下,我们继续以 我谨再次代表董事会,向 挑战为导向,促进集团的 集团可靠管理团队和全体 各项业务发展。 员工表示衷心的感谢,感 谢他们不遗余力的承诺与 怡克伟士以持续拥有多项 付出,缔造另一个辉煌的 施工合约所带来稳定可靠 表现。 的收益甚感自豪。 同时,我还要诚挚感谢我 我们努力改善建筑环 们的顾客、客户、商业伙 境,而我们也深知我们的 伴、银行与各个政府和地 业务,通过高质量的建 方政府的不断支持与合 筑、道路、公共场所、基 作。 建和其他建筑领域等能支 援人类活动上影响。 最后,我要向所有敬爱的 股东表示衷心的感激,谢 虽然我们的一些次级领域 谢大家对我们坚定不移的 市场仍有短期的不确定 信念与信心。 性,但我们的策略重点仍 使我们地位稳固,并从长 我们势将秉承您对我们委 期增长中受益。 托的责任,力求提升股东 价值,持续长期盈利增 而我们通过互补业务----建 长。 筑与产业发展混合商业模 式的优势,为股东创造的 我们将竭盡所能以在 2018 长期价值,这种模式也大 财政年提呈更辉煌的表 大地局限经济周期带来的 现! 冲击,使我们能够优先考 虑高质量的业务,针对利 润落实稳定的业绩成长。 执行主席 丹斯里拿督林刚河 2017 年10 月31 日 分派股息
为了表示我们对股东回报 的承诺,董事会于2017年 8月30日建议,每个普通 股一次派发2仙股息。此 建议尚待股东大会批准。 EKOVEST BERHAD * ANNUAL REPORT 2017 26 www.ekovest.com.my MANAGING DIRECTOR’S STATEMENT
Tan Sri Datuk Seri Lim Keng Cheng Managing Director 27
MANAGING DIRECTOR’S STATEMENT
uring Financial Year Ended 30 June 2017 (“FYE2017”), we have achieved several strategic milestones, such as the completion of the 40% disposal of equity stake in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd D (“Kesturi”), the concession holder of DUKE Phase 1 & 2, to the Employees Provident Fund, receiving the approval for the DUKE Phase 2A project, launched our KL River City Project, awarded and completed the Blue River Project as well as other construction orderbook secured.
We have continued to operate our businesses steadily and reliably across our 3 business divisions, namely, Construction, Property Development and Toll Operation - delivering dependable growth.
Artist’s Impression
Construction have always been the bread and butter of the company and we expect this to be the same in the years to come as well. Since the incorporation of Ekovest in 1985, we have been in the construction industry and have delivered RM7 billion worth of construction projects to clients all across Malaysia. We pride ourselves for being one of the most respected construction players in Malaysia. We intend to further strengthen our presence in large scale construction projects and to assist the Government to deliver the best infrastructure for Malaysia. However, we do acknowledge that the construction industry is cyclical in nature and very much dependent on the economic and fiscal policy of the country.
Artist’s Impression
Under our property development division, we have six (6) property development projects with potential gross development value (“GDV”) in excess of RM7 billion lined up in our 10 year development master plan. Ekovest currently have a land bank of 39 acres located primarily in northern Kuala Lumpur and this will be the focus of our property division in the coming years. Two (2) of these projects; being the EkoCheras and EkoTitiwangsa @ KL River City, have been launched in 2013 and 2015 respectively. Apart from the land bank in Kuala Lumpur, we also own 25 acres of land in Johor Bahru and 12 acres in Kuantan, Pahang. As mentioned earlier, our focus at this time is on the developments that we have in Kuala Lumpur. We intend to utilise the property development projects in which we have lined up, as a balancing tool to ensure the revenue and returns of the company is sustainable. EKOVEST BERHAD * ANNUAL REPORT 2017 28 www.ekovest.com.my
MANAGING DIRECTOR’S STATEMENT
On the other hand, our toll operation division (i.e. the operation and management of the DUKE toll operation) MANAGEMENT is expected to provide a steady stream of revenue to DISCUSSION complement both the construction and property development industry. In the long run, the management of AND ANALYSIS Ekovest is striving towards achieving a revenue mix of 40% from construction and 30% each from property development This year is of great significance to our Group. For the first and toll operation. time in our history, the Ekovest Group reported a revenue of more than RM1 billion. Revenue for FYE2017 stands at RM1.1 billion, which is an increase of 37.2% or RM295.1 million as compared to previous year. An analysis on the revenue for the Group in FYE2017 and FYE 2016 is as follow:-
FYE 2016 FYE 2017 Variance RM ‘000 RM ‘000 RM ‘000 %
Construction 619,117 858,384 239,267 38.6
Property Development 50,340 103,403 53,063 105.4 FYE2017 have been an exciting year for the Group. The announcement and the completion of the 40% divestment Toll operation 123,007 125,921 2,914 2.4 of our stake in Kesturi to Employees Provident Fund (“EPF”) for RM1.13 billion was a key milestone for the Group. This Others 1,118 995 (123) (11) deal was completed in February 2017 and was also the starting point in which investors and analyst alike, took a Total 793,582 1,088,703 295,121 37.2% closer look at Ekovest Berhad. Together with the proceeds from the divestment, the Board of Ekovest also announced a share split of 2 to 5 and a special cash dividend of RM0.25 The increase in the current year revenue is supported mainly per share, to reward our shareholders for support and by the increase in revenue from the construction division believe in the management and company throughout the whereby the construction works of the DUKE Phase 2, with years. Although the divestment did not result in any contract value of RM1.2 billion, and the Setiawangsa – recognition of “gains on disposal”, it did however strengthen Pantai Expressway (“SPE” or better known as “DUKE Phase the balance sheet of the Ekovest Group to enable us to bid 3”), with contract value of RM3.7 billion. Moving forward, our for larger contracts. The relationship that we have now foster construction outstanding orderbook remains healthy and is with EPF also paves way for potentially more discussion and able to provide earnings visibility for the next 3 to 5 years. engagement for exciting collaborations in the future. Together with the two (2) construction contracts related to the DUKE, our construction division is also currently engaged in various other construction works related to the River of Life project. As a testament to our ability and experience in the construction industry, we also have an-ongoing incentive agreement with the Government of Malaysia relating to the design of sewage treatment plants. 29
MANAGING DIRECTOR’S STATEMENT
Furthermore, the PBT reported in FYE2016 includes a fair MANAGEMENT value gain on investment properties of RM123.0 million. DISCUSSION Solely from operational perspective, PBT for FYE2017 stood at RM199.3 million (excluding the deduction on ESOS’ fair AND ANALYSIS (Cont’d) value adjustment) a commendable improvement from the previous year operational PBT of RM67.9 million (excluding the fair value gain on investment properties). The increase in FYE2017 revenue from the property development division is mainly due to the recognition of From the Balance Sheet perspective, we have seen our Total unbilled sales from the EkoCheras and EkoTitiwangsa Equity grow from RM1.3 billion in FYE2016 to RM2.3 billion development project. Moving forward, we are also expecting in the current financial year. This growth is mainly attributable for the remaining RM447.3 million of unbilled sales to be to the increase in Reserves arising from the disposal of the recognised, as and when we achieve the construction 40% stake in Kesturi to EPF. percentage of completion. We have also seen an increase in our Concession Assets The toll operation division have also seen an increase of from RM2.4 billion in FYE2016 to RM3.2 billion in the current 2.4% in revenue in the current FYE2017. This is due to the year which is mainly due to the commencement of the DUKE increase in toll rates which was announced back in October Phase 3 construction. 2015, whereby FYE2017 is the first full year in which the toll rate for Class 1 vehicles on the DUKE is RM2.50. Similarly, there was an increase from a total of RM600.2 Furthermore, the increase in revenue is also due to million in FYE 2016 to RM4.6 billion in FYE2017 in our receipt of toll compensation of RM7.9million from the Investment Funds, Short Term Deposits and Cash and Bank Government, arising from the delay in toll increase. Moving Balances which correspondence to the liabilities side, an forward, we expect that the full opening of the DUKE Phase increase in the Islamic Medium Term Notes from RM1.7 2 in the new financial year 2018 to be the catalyst for further billion to RM5.4 billion. Both the assets and liabilities traffic and revenue growth for our infrastructure concession increased mainly due to the DUKE Phase 3 project which division. Being an urban expressway, 98% of the traffic that the Group have raised close to RM4.5 billion to finance the is relying on DUKE for their daily commute is from Class 1 project. All monies raised for this project have been placed vehicles, being cars. in various funds to maximise returns and help reduce the negative carry of the borrowings as much as possible.
However, the Profit Before Tax (“PBT”) for FYE2017 stood Overall, our capital expenditure and working capital at RM176.7 million, which is lower than the PBT reported in requirements were financed generally from internal FYE2016 of RM190.9 million. This is due to a one-off generated cash as well as borrowings from financial expense amounting to RM22.6 million on fair value institutions. Moving forward, we expect this strategy remain adjustment pursuant to the granting of the Employees’ largely intact in which we look into project financing structure Share Option Scheme incurred during the year. We believe and modelling to ensure the borrowings risk is “ring-fenced” that the share options scheme will provide motivation and a and kept at project level with minimal recourse to the Group. sense of belonging to our employees and allows the However, we do acknowledge that some of the projects that employees to grow together with the Group. we participate in, requires the support and financial capability of Ekovest Group as a whole in order to proceed. EKOVEST BERHAD * ANNUAL REPORT 2017 30 www.ekovest.com.my
MANAGING DIRECTOR’S STATEMENT
3. The Group had on 21 September 2016, via its MANAGEMENT wholly-owned subsidiary, Nuzen Corporation Sdn Bhd, DISCUSSION entered into a binding term sheet with Employees Provident Fund Board ("EPF") to dispose a 40% equity AND ANALYSIS (Cont’d) interest held in Konsortium Lebuhraya Utara-Timur Sdn Bhd to EPF. On 8 November 2016, the Group entered into a conditional share sale agreement with EPF for a The gearing ratio of the Group remains low at 0.53 times for total cash consideration of RM1,130.0 million. the financial year ended 2017, although it is slightly higher when compared to 0.35 times in the financial year ended 2016. The borrowings in the above calculation have excluded the Islamic Medium Term Notes of RM5.4 billion in FYE2017 and RM1.7 billion in FYE 2016 respectively which has no recourse to the Group.
The net tangible assets per share attributable to equity holders as at FYE 2017 rose as much as 45.2% to RM0.90 from RM0.62 at FYE 2016 despite larger dividend payments during the year under review (adjusted for the impact of share split in FYE2017).
CORPORATE DEVELOPMENTS 4. The Group had on 24 October 2016, via its 1. The Group had on 18 July 2016, via its wholly-owned wholly-owned subsidiary, EkoRiver Construction Sdn subsidiary, Lebuhraya DUKE Fasa 3 Sdn. Bhd, made a Bhd, received a letter of acceptance from DBKL for the lodgment to the Securities Commission Malaysia for the proposed improvement and beautification works under launch of Sukuk Wakalah under the SC’s Guidelines on the River of Life project for a contract sum of Unlisted Capital Market Products under the Lodge and RM255,493,254. Launch Framework. The Issuer proposes to issue sukuk of up to RM3.64 billion in nominal value and with tenures 5. The Group had on 8 November 2016, via its of up to 23 years under the Shariah principle of Wakalah wholly-owned subsidiary, EkoRiver Construction Sdn Bi Al-Istithmar. The issuance has been completed on 23 Bhd, received a letter of acceptance from DBKL for the August 2016. proposed improvement and beautification works under the River of Life project for a contract sum of 2. The Group had on 5 August 2016, via its wholly-owned RM157,250,000. subsidiary, Lebuhraya DUKE Fasa 3 Sdn Bhd, received a letter from the Government of Malaysia for the 6. The Group had on 17 January 2017, via its subsidiary, fulfilment of conditions precedent as stipulated in the Lebuhraya DUKE Fasa 2A Sdn Bhd, received a letter concession agreement dated 11 January 2016 in from the Government on the principle approval of the relation to the design, construction, completion, proposed privatisation of the Kampung Baru Link, operation, management and maintenance of the Istana Link and Kapar Link Expressway. With a total Setiawangsa – Pantai Expressway (formerly known as length of approximately 75.2 kilometres, the estimated the DUKE Phase-3). As such, the effective date of the total project cost stands at RM6.32 billion. Concession Agreement is on 5 August 2016. 31
MANAGING DIRECTOR’S STATEMENT
THANK YOU
To our customers, clients, bankers, business partners and associates, thank you for the trust and support you have placed in us. Thank you to all governmental agencies that have assisted and supported us, especially Kementerian Kewangan, Kementerian Kerja Raya, Kementerian Wilayah Persekutuan, Economic Planning Unit of the Prime Ministers Department, Lembaga Lebuhraya Malaysia and Dewan Bandaraya Kuala Lumpur. CORPORATE DEVELOPMENTS (Cont’d)
7. The Group had on 9 March 2017, offered 120,330,000 options over new shares with an exercise price of RM1.30 to Directors, and Senior Management and Employees of the Ekovest group of companies under its Employees’ Share Option Scheme.
8. The Group had on 7 April 2017, via its wholly-owned subsidiary, Ekovest Properties Sdn Bhd, entered into sale & purchase agreement with Lim Seong Hai I wish to express my most sincere appreciation to my fellow Holdings Sdn Bhd for the acquisition of two parcels Board members for their support and contributions. Thank of land for a total purchase consideration of you to the senior management and all employees of Ekovest RM26,772,950. Berhad for their commitment, hardwork and perseverance throughout the year. With a team of diverse experience and 9. The Group had on 17 April 2017, via EkoRiver background, more obstacles can be unravelled. We are Construction Sdn Bhd (“ERCSB”), received a Letter of lucky to have these people as part of the Ekovest Group. Award from DBKL for the appointment of ERCSB as the design and building contractor to undertake the “Blue Last but not least, thank you to our esteemed shareholders River Project” in the vicinity of the River of Life Precinct for your trust, patience, unwavering commitment and 7 – Masjid Jamek Kuala Lumpur Zone, with a total continuous confidence in our Company. We hold the contract value of RM79.0 million. responsibility that you have entrusted to us in high regard and we shall endeavour to deliver an even better 10. The Group had on 19 April 2017, via its wholly-owned performance in the years to come. I look forward to a very subsidiary, KL Bund Sdn Bhd (f.k.a Ekovest KL Bund exciting year ahead for the Ekovest Group. Sdn Bhd), entered into an incentive agreement with the Government of Malaysia for the enhanced design in respect of Bunus Regional Sewerage Treatment Plant, Tan Sri Datuk Seri Lim Keng Cheng Kuala Lumpur with a contract period until 30 January Managing Director 2019. 31 October 2017
11. The Group had on 21 June 2017, via its wholly-owned subsidiary, KL Bund Sdn Bhd (f.k.a Ekovest KL Bund n o Sdn Bhd), received the approval-in-principle from the i s s e
Government of Malaysia for the proposed development r p m I
of “Kuala Lumpur River City” located in Gombak, Sungai s ’ t s i
Gombak, Kuala Lumpur. On 18 July 2017, the Group t r officially launched the development of “Kuala Lumpur A River City”.
12. The Group had on 23 May 2017, opened the Tun Razak Link, under the DUKE Phase 2 project, single bound from KL to existing DUKE. The Group officially launching the full opening of the Tun Razak Link and Sri Damansara Link on 28 September 2017 and 23 October 2017 respectively. EKOVEST BERHAD * ANNUAL REPORT 2017 32 www.ekovest.com.my
CORPORATE SOCIAL RESPONSIBILITY
CSR HIGHLIGHTS 2017
For the year 2017, Ekovest Berhad has dedicated a lot of time and effort to giving back to our stakeholders whilst incorporating the three pillars of our Corporate Social Responsibility (“CSR”) Initiatives, namely Education, Community, Employee & Sustainability. This CSR approach has been a mainstay in our company policy, and each year, becomes more and more significant.
Ekovest Berhad recognises that our social obligations to society can have an impact and is striving for a balanced attitude in fulfilling our key objectives and expectations to stakeholders, whether it be our customers, employees, shareholders, stakeholders and etc. A committed workforce improves business decision-making as well as increasing workforce sustainability, leading to better organisation relationships and ultimately improved services and solutions to our community.
Our CSR programs provides meaningful contributions to the community around us, continually building positive relationships by actively engaging with them. Ekovest encourages employees, from all our various departments, to share their expertise and to support through participation in our programmes. This not only 33
CORPORATE SOCIAL RESPONSIBILITY
SPONSORSHIP TO PUTRAJAYA COMMUNITY RIDE
Ekovest were proud to sponsor 1000 medals for the Putrajaya Community Ride that was held on 5 August 2017 at Kompleks Futsal 1 Malaysia, Presint 18, Putrajaya.
Our managing director, Tan Sri Datuk Seri Lim Keng Cheng together with Ekovest staff participated in the event.
CSR HIGHLIGHTS 2017 (Cont’d)
ensures that they contribute back to the community, but also creates an experience that is memorable to our staff. The “word of mouth” promotion done, is a better form of advertising that is widely accepted from all. Our focus on creating value for society, the environment, and our business is reflected in the breadth of our commitments. Should there be indication as to how much effort we try to implement in these initiatives, most employees that do participate will acknowledge that they cannot put a dollar value to the greatness of the experience. The memories and experiences remembered however, features in the conversations that the employees share to others. EKOVEST BERHAD * ANNUAL REPORT 2017 34 www.ekovest.com.my
CORPORATE SOCIAL RESPONSIBILITY
CONTRIBUTION OF CHEQUE TO PPKL
Contribution to the Sekolah Kebangsaan Taman Maluri for the Hari Keluarga Tahun 2016 Program Pendidikan Khas Intergrasi (PPKI) that will be organize by SK Taman Maluri.
EKOVEST CHINESE ENDOWMENT PROJECT
As part of Ekovest’s CSR initiatives and as sign of appreciation for the teachers , Ekovest Berhad formed the “Ekovest Chinese Education Endowment Project” to support the school in continuing free education for the school’s employees.
62 students were awarded scholarships for school tuition fees and miscellaneous items .
CSR HIGHLIGHTS 2017 (Cont’d)
During the year, contributions were made to various schools to assist them in fulfilling their programme to improve the infrastructure, teaching aids and the well-being of its students. Such contributions that were done, was the “Back to School Programme” organised by the Federal Territories Ministry as well another organised by the Ahli Parlimen Titiwangsa. These contributions not only uplifted the spirits of the students to go back and resume the school year, but also assisted parents in providing essential school supplies. Benefitting not only the educational institutions, we believe that the moral support should be given to the students to ensure that they are highly motivated to do well in their studies. In line with our core expertise in construction activities, we have been working closely with various schools and have assisted and contributed towards the improvement of infrastructure available in these schools. Our senior management were also invited to the schools to share their experience and life philosophy with the future generation in order to keep them motivated to strive for great heights and also to share lessons in life which we hope will prepare them for the journey ahead of them.
SPONSORSHIP OF E-PAPER TO 42 SCHOOLS
Ekovest Berhad sponsored Sin Chew ePaper to 42 schools located at Wilayah Persekutuan Kuala Lumpur.
The sponsorship is part of our corporate social responsibility (CSR) to encourage reading habits among the teachers and students as well as to preserve the environment and conserve resources. 35
CORPORATE SOCIAL RESPONSIBILITY
HANDOVER CHEQUE TO SK ST MARY
Ekovest Berhad handover cheque to SK ST Mary representative for improving school facilities and provide a conducive learning environment for our future generation.
CSR HIGHLIGHTS 2017 (Cont’d) The Group is committed to represent a sense of togetherness regardless of race, background and belief, and notably gender. Providing and entrusting in equal opportunity for both woman and man, the principles of our CSR Initiatives were clearly portrayed when we participated and contributed towards the “Women Cycling Convoy 2017” which was held on 11 March 2017 at Dataran Putrajaya, Presint 3, Putrajaya. Attracting as many as 11,412 cyclists, the event was organised by the Federal Territories’ Badan Amal Kasih Ibu, in conjunction with International Women's Day. Due to the overwhelming number of participants, this was recorded in the Malaysia Book of Records (“MBOR”) for having the largest number of participants in a women’s cycling event. Ekovest Berhad was one of the main sponsors of the “Women Cycling Convoy 2017”, contributing medals and shirts, for partakers to commemorate their participation in the event. Within its initiative of promoting a healthy lifestyle to all its employees and their families, and to foster positive relationships between employees, we registered many Ekovest employees as participants for the event. On the day of event, Tan Sri Datuk Seri Lim Keng Cheng cheered on Ekovest’s cycling convoy at the starting point.
SPONSORSHIP TO WOMEN’S CYCLINH CONVOY 2017
Ekovest Berhad took part at the Women's Cycling Convoy 2017 at Dataran Putrajaya, Presint 3, Wilayah Persekutuan Putrajaya today in conjunction with International Women Day's. EKOVEST BERHAD * ANNUAL REPORT 2017 36 www.ekovest.com.my
CORPORATE SOCIAL RESPONSIBILITY
CSR HIGHLIGHTS 2017 (Cont’d)
The Group is committed and will carry on its efforts further to enhance our corporate social responsibilities in order to provide a meaningful contribution to the community around us and to promote a sustainable and eco-friendly development. It is widely recognised that this is a main policy that we viably adhere to, namely to promote sustainability and to ensure a value added experience, and as such, via our CSR initiatives, we will find a balance for our financial performance with our social and environmental impacts to create a company that is not only productive and efficient but also caring and sensitive to the needs of the community and the environment in which we operate. Not only are we in for the short haul, but continuing support is also given by the company. As part of being active in the Community, and ensuring that Ekovest participated in various activities, we were very honoured to be the sponsors for several sporting events such as the Putrajaya Community Ride 2017, SMART Tunnel Run 2017, and the IEM Engineer’s Run.
HANDOVER OF VAN AND DONATION TO GEREJA KOTA BELUD AND SOLAR SYSTEM OF GEREJA SIB KG PIASAU KOTA BELUD
Our Managing Director, Tan Sri Datuk Seri Lim Keng Cheng attended the "Handover of Van and Donation to Gereja Kota Belud and Solar System of Gereja Sib Kg Piasau Kota Belud" event held at Kota Belud, Sabah.
YB Datuk Seri Abdul Rahman Dahlan, Minister in the Prime Minister's Department officiated the event. 37 ACADEMIC ACHIEVEMENT CEREMONY AT SK BANDAR BARU SENTUL 2016
DUKE was invited to officiate the event as part of our public engagement initiatives with SK Bandar Baru Sentul.
SPONSORSHIP TO SMK SERI TITIWANGSA
Handing over ceremony of football’s team equipment which includes 100 pairs of sports jerseys, pants and polo t-shirts.
CONTRIBUTION TO FLASH FLOOD VICTIMS AT TAMAN SRI RAMPAI
Ekovest Berhad contributed to 78 person of Taman Sri Rampai residents effected by flash floods that happened on June 2016. EKOVEST BERHAD * ANNUAL REPORT 2017 38 www.ekovest.com.my
CORPORATE SOCIAL RESPONSIBILITY
PROGRAM JOM KEMBALI KE SEKOLAH SESI 2017
Back to school program with YB Datuk Johari Abdul Ghani, Finance Minister II (Ahli Parlimen Titiwangsa) at Dewan Komuniti Umno, Taman Maluri.
The contribution is one of the CSR initiatives by Ekovest to ease the burden of parents to provide education for their children.
KAMPONG BHARU MTB CHALLENGE 2016
As part of public engagement and CSR initiatives with Kampong Bharu community, Ekovest contributed to the event.
Our Managing Director, Tan Sri Datuk Seri Lim Keng Cheng attended Kampong Bharu MTB Challenge 2016 at Padang Kampung Bharu, Jalan Raja Alang.
The event was officiated by YB Datuk Johari Bin Abdul Ghani, Menteri Kewangan II. 39
CORPORATE SOCIAL RESPONSIBILITY
CSR HIGHLIGHTS 2017 (Cont’d)
We believe in nurturing a healthy workforce in the firm belief that good health is vital to a sharp mind, and consequently, productivity. As part of our efforts to ensure our employees have a good work-life balance, over the course of the year, we have ensured their participation in various events such as the BURSA Bull Charge Challenge and have signed on our employees to participate in the Standard Chartered KL Marathon, as well as various other running events such as the Larian Amal Puspanita, and the Wangsa Maju Community Run.