SCIENTEX BERHAD (7867-P) the Infinity Symbol Is Distinct and Powerful, Signifying Perpetuity in a Rendition That Has No End and Lasts Forever
Total Page:16
File Type:pdf, Size:1020Kb
ANNUAL REPORT 2017 SCIENTEX BERHAD (7867-P) The infinity symbol is distinct and powerful, signifying perpetuity in a rendition that has no end and lasts forever. At Scientex, we regard the symbol as a reflection of our infinite growth as a company. It reflects our individual and collective potential to create and capitalise on a world of opportunities. It captures the essence of Scientex which reflects our infinite potential and capacity to yield endless possibilities. Contents 2 Corporate Information 45 - 46 Audit Committee Report 3 Group Structure 47 - 54 Statement On Corporate Governance 4 - 5 Scientex Performance Record 55 - 56 Additional Compliance Information 6 - 7 5-Year Group Financial Highlights 57 - 134 Financial Statements 8 - 9 Media Highlights 135 List Of Properties Held By The Group 10 - 12 Profile Of The Board Of Directors 136 - 137 Analysis Of Shareholdings 13 - 16 Profile Of Key Management 138 - 140 Notice Of Annual General Meeting 17 - 24 Chairman’s Statement 141 Statement Accompanying Notice Of Annual General Meeting 25 - 37 Management Discussion And Analysis Form Of Proxy 38 Investor Relations 39 - 42 Sustainability Statement 43 - 44 Statement On Risk Management And Internal Control SCIENTEX BERHAD 2 Annual Report 2017 CORPORATE INFORMATION Board of Directors Tan Sri Dato’ Mohd Sheri Bin Mohd Kassim Chairman & Independent Non-Executive Director Lim Peng Jin Managing Director Lim Peng Cheong Non-Independent Non-Executive Director Cham Chean Fong @ Sian Chean Fong Independent Non-Executive Director Ang Kim Swee Independent Non-Executive Director Dato’ Noorizah Binti Hj Abd Hamid Independent Non-Executive Director Wong Chin Mun Independent Non-Executive Director Company Secretary Auditors Deloitte PLT Ng Boon Ngee (MAICSA 7053979) Level 16, Menara LGB 1, Jalan Wan Kadir Audit Committee Taman Tun Dr. Ismail 60000 Kuala Lumpur Tan Sri Dato’ Mohd Sheri Bin Mohd Kassim Chairman Solicitors Koh Kim Leng & Co. Cham Chean Fong @ Sian Chean Fong Shearn Delamore & Co. Member Ang Kim Swee Principal Bankers Member HSBC Bank Malaysia Berhad RHB Bank Berhad Dato’ Noorizah Binti Hj Abd Hamid Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad Member Sumitomo Mitsui Banking Corporation Malaysia Berhad Malayan Banking Berhad Public Bank Berhad Nomination and Remuneration Committee Registered Oce & Tan Sri Dato’ Mohd Sheri Bin Mohd Kassim Principal Place of Business Chairman No. 9, Persiaran Selangor Cham Chean Fong @ Sian Chean Fong Seksyen 15, 40200 Shah Alam Member Selangor Darul Ehsan Tel: 03-5524 8888/03-5519 1325 Fax: 03-5519 1884 Risk Management Committee Website: www.scientex.com.my Tan Sri Dato’ Mohd Sheri Bin Mohd Kassim Stock Exchange Listing Chairman Main Market of Bursa Malaysia Lim Peng Jin Securities Berhad Member [Stock code: 4731] Ang Kim Swee Share Registrar Member Symphony Share Registrars Sdn Bhd Level 6, Symphony House Pusat Dagangan Dana 1 Jalan PJU 1A/46, 47301 Petaling Jaya Selangor Darul Ehsan Tel: 03-7849 0777 Fax: 03-7841 8151/52 Email: [email protected] Website: www.symphony.com.my SCIENTEX BERHAD Annual Report 2017 3 GROUP STRUCTURE Scientex Berhad (Company No. 7867-P) MANUFACTURING Industrial Packaging Consumer Packaging Automotive Interior Green Energy Products PROPERTY Scientex Johor • Pasir Gudang • Kulai 1 & 2 • Skudai • Senai 1 & 2 • Pulai Scientex Melaka • Ayer Keroh • Durian Tunggal Scientex Perak, Ipoh • Klebang • Meru 1 & 2 SCIENTEX BERHAD 4 Annual Report 2017 Years Of Revenue Growth 1969-2017 RM Million 2.4 Billion 2,500 2,400 2,300 2,200 2,100 2,000 1,900 1,800 1,700 1.2 1,600 Billion 1,500 1,400 1,300 1,200 1,100 656 Million 1,000 900 800 700 600 184 500 Million 400 37 Million 300 380 12 Thousand Million 200 100 0 1969 1979 1989 1999 2008 2013 2017 Building Expansion Growth Exponential Years Years Years Growth Years 1968-1988 1989-1998 1999-2008 2009-2017 SCIENTEX BERHAD Annual Report 2017 5 SCIENTEX PERFORMANCE RECORD 255,873 260,000 Net Profit Growth (RM’000) 240,865 240,000 220,000 200,000 16-Year Compounded 180,000 Annual Growth = 27% 158,190 160,000 148,450 140,000 120,000 110,284 100,000 83,917 80,000 77,246 60,318 60,000 47,698 40,000 35,184 37,458 23,118 28,472 20,000 16,704 5,426 5,576 3,607 0 Financial 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year 77,369 80,000 Shareholder’s Rewards (RM’000) 75,000 73,956 70,000 Interim and Final Dividend Share Dividend Special Dividend 65,000 60,000 55,000 49,750 50,000 47,054 45,000 57,501 40,000 35,385 35,000 30,106 30,000 25,805 25,000 22,116 19,378 20,000 17,232 14,229 15,000 9,471 10,101 10,770 10,000 8,091 4,457 4,758 5,000 2,669 2,670 2,670 0 Financial 2001 2002 2003 2004 2005 2006 2007* 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017^ Year 1,535,464 1,600,000 Shareholders’ Equity Growth 1,500,000 (RM’000) 1,400,000 1,300,000 1,200,000 1,175,167 1,100,000 1,000,000 941,978 900,000 800,000 712,718 700,000 628,665 600,000 525,715 500,000 467,344 414,348 375,094 400,000 345,952 300,000 268,078 284,603 224,817 223,398 223,569 227,879 242,591 200,000 100,000 Financial 2001# 2002# 2003# 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year * Includes a share dividend on the basis of one (1) treasury share for every fifty (50) existing ordinary shares held based on market value. Includes a single tier final dividend of 10 sen per share proposed for shareholders' approval. ^ # The figures have been restated for consistency. SCIENTEX BERHAD 6 Annual Report 2017 5-YEAR GROUP FINANCIAL HIGHLIGHTS Year ended 31 July 2017 2016 2015 2014 2013 RM’000 RM’000 RM’000 RM’000 RM’000 Results Revenue 2,403,151 2,200,980 1,801,684 1,590,472 1,229,045 Operating Profit 325,069 312,560 224,978 189,620 146,104 EBITDA 395,222 374,541 273,052 232,949 178,977 Profit Before Taxation 317,968 306,332 220,962 186,266 142,980 Profit After Taxation 259,941 246,567 162,096 151,501 112,497 Net Profit 255,873 240,865 158,190 148,450 110,284 Group Assets Non-current Assets 1,624,709 1,487,971 979,099 859,537 789,512 Current Assets 953,080 763,130 660,776 540,841 496,857 Total Assets Employed 2,577,789 2,251,101 1,639,875 1,400,378 1,286,369 Financed by Share Capital 411,843 115,000 115,000 115,000 115,000 Reserves 1,123,621 1,060,167 826,978 597,718 513,665 Equity attributable to owners 1,535,464 1,175,167 941,978 712,718 628,665 of the Company Non-controlling Interests 68,416 66,495 62,784 22,705 19,972 Current Liabilities 743,663 711,753 500,147 546,500 436,887 Non-current Liabilities 230,246 297,686 134,966 118,455 200,845 Total Funds Employed 2,577,789 2,251,101 1,639,875 1,400,378 1,286,369 Performance Indicators Earnings Per Share (Sen)* 54.83 52.94 35.22 33.56 25.52 Net Dividend Per Share (Sen)* 16.00 # 16.00 11.00 10.50 13.00 Net Assets Per Share (RM)* 3.18 2.55 2.09 1.61 1.42 Net Gearing Ratio (Times) 0.18 0.32 0.14 0.36 0.29 Return on Equity (“ROE”) (%) 16.66 20.50 16.79 20.83 17.54 * For year 2013 to 2016, the figures have been restated to reflect the bonus issue of 230,000,000 new ordinary shares in the Company (“Scientex Share”) in August 2016 on the basis of one (1) bonus share for every one (1) existing Scientex Share held by the entitled shareholders. # Includes a single tier final dividend of 10 sen per share proposed for shareholders’ approval. SCIENTEX BERHAD Annual Report 2017 7 RM’000 Group Financial Results RM’000 2,600,000 2,403,151 360,000 2,400,000 2,200,980 330,000 325,069 2,200,000 300,000 312,560 2,000,000 270,000 1,801,684 1,800,000 255,873 240,000 1,590,472 1,600,000 240,865 224,978 210,000 1,400,000 1,229,045 180,000 189,620 1,200,000 150,000 158,190 1,000,000 146,104 148,450 120,000 800,000 110,284 90,000 600,000 60,000 400,000 200,000 30,000 0 0 Financial Year 2013 2014 2015 2016 2017 Revenue Operating Profit Net Profit ROE & Shareholders’ Equity Net Gearing Ratio & Net Borrowings RM’000 % RM’000 Times 1,535,464 1,600,000 20.83 20.50 21 600,000 1.0 1,500,000 17.54 1,400,000 16.79 16.66 18 500,000 1,300,000 0.8 1,175,167 1,200,000 15 1,100,000 400,000 371,007 1,000,000 941,978 12 0.6 900,000 275,792 300,000 256,654 800,000 712,718 9 0.36 700,000 183,260 0.4 628,665 0.32 600,000 200,000 0.29 6 500,000 134,805 0.18 400,000 0.2 100,000 0.14 300,000 3 200,000 100,000 0 0 0 Financial 2013 2014 2015 2016 2017 Financial 2013 2014 2015 2016 2017 Year Year Shareholders’ Equity Return on Equity Net Borrowings Net Gearing Ratio Earnings Per Share Net Dividend Per Share Sen Sen 60 54.83 20 52.94 18 16.00 16.00 50 16 14 40 35.22 33.56 12 13.00 10.50 11.00 30 25.52 10 8.00 8 20 6 5.00 4 10 2 0 0 Financial 2013 2014 2015 2016 2017 Financial 2013 2014 2015 2016 2017 Year Year Earnings Per Share Interim and Final Dividend Special Dividend SCIENTEX BERHAD 8 Annual Report 2017 MediaHighlights SCIENTEX BERHAD Annual Report 2017 9 SCIENTEX BERHAD 10 Annual Report 2017 PROFILE OF THE BOARD OF DIRECTORS Tan Sri Dato’ Mohd Sheriff Bin Mohd Kassim Chairman and Independent Non-Executive Director Tan Sri Dato’ Mohd Sheri Bin Mohd Kassim, a Malaysian, male, aged 78, is an Independent Non-Executive Director and Chairman of the Company.