CORE FACTS 002 Group Five-Year Financial Highlights 006 Corporate Information 007 Corporate Structure 008 Awards & Recognition 014 Directors’ Profile Icon Residence, Mont Kiara Journey of 1 Excellence

s a key player in the property development industry, quality remains at Athe forefront of everything that we do. WHAT’SINSIDE Our efforts to improve quality are always ongoing and we have outlined several key initiatives to enhance our quality in customer service, our developments and also in our MESSAGES people. Our focus on quality and excellence 024 Chairman’s Statement plus the accolades awarded to us is a 034 Group Managing Director’s Report testament to our continued journey of quality 040 Review of Operations in all aspects of our operations. 054 Media Highlights

As a premier lifestyle developer, we are always looking for new ways to raise the bar higher and to push the envelope further. Our ultimate aim is to ensure full customer satisfaction through the consistent delivery of high quality 2 projects and services. We are confident that with our proven strategies, a well-established brand name and the right portfolio of products, we will continue to distinguish ACTIVITIES ourselves in the property market. 058 Sustainability Report 094 Calendar of Events

Cover photo Icon Residence, Mont Kiara 3 GOVERNANCE 100 Corporate Governance Statement 110 Audit Committee Report 113 Statement on Risk Management and Internal Control

Aspen@Garden Residence 4MAH SING GROUP BERHAD WHATT’SINSIDE FINANCIALS 118 Directors’ Report 126 Independent Auditors’ Report 128 Statements of Profit or Loss 129 Statements of Profit or Loss and Other Comprehensive Income 130 Consolidated Statement of Financial Position 132 Company Statement of Financial Position ADDITIONAL 133 Consolidated Statement of INFORMATION Changes in Equity 238 Properties Owned by the Group 135 Company Statement of Changes 243 Statistics of Shareholdings in Equity 246 Statistics of Warrant B Holdings 137 Statements of Cash Flows 249 Statistics of Warrant C Holdings 5140 Notes to the Financial Statements 235 Supplementary Information 236 Statement by Directors NOTICES 237 Declaration by the Officer 252 Notice of Twenty-Fourth Annual primarily responsible for the General Meeting Financial Management of the 257 Statement Accompanying Notice Company of Annual General Meeting 258 Notice of Dividend Entitlement and Payment 259 Form of Proxy 6Go online to our website at: WWW.MAHSING.COM.MY MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

GROUP FIVE-YEAR FINANCIAL HIGHLIGHTS FINANCIAL YEAR ENDED 31 DECEMBER

2011 2012 2013 2014 2015 RM’000 RM’000 RM’000 RM’000 RM’000

Revenue 1,570,696 1,775,260 2,005,596 2,904,723 3,108,506 Profit before tax 240,762# 317,503# 371,116# 471,631# 503,693 Profit after tax 170,238# 233,376# 279,010# 354,910# 384,634 Net profit attributable to equity holders 170,157# 232,225# 280,365# 356,496# 386,677

Total assets 2,852,219# 3,598,377# 4,587,094# 5,326,350# 6,615,678 Total borrowings 977,617 910,297 1,129,845 1,459,240 1,500,255 Equity attributable to ordinary equity holders 1,074,752# 1,248,106# 1,955,249# 2,288,833# 3,135,622 Total equity 1,090,090# 1,258,210# 1,966,236# 2,298,515# 3,684,095

Return on equity 16% 19% 14% 16% 12% Return on total assets 6% 6% 6% 7% 6% Net gearing ratio 0.29 0.25 0.16 0.36 0.04 Basic earnings per share (sen) 12.03* 16.36* 17.16* 18.35* 15.73 Fully diluted earnings per share (sen) 11.84* 16.19* 16.08* 17.60* 15.35 Net assets per share (RM) 1.29 1.49 1.38 1.55 1.30 Net dividend per share 16.5% 15.0% 16.0% 13.0% 13.0% Dividend payout ratio 40.6% 44.8% 42.1% 43.9% 40.5%@ Price earning ratio 8.2 6.2 8.9 8.6 9.2 Share price as at the financial year end (RM) 0.99^ 1.02^ 1.53^ 1.58^ 1.45

# The comparative figures have been restated due to the effect of early adoption of MFRS 15 in the financial year 2015. * The comparative figures for basic and diluted earnings per share have been restated to reflect the adjustments arising from the Rights and Bonus Issues completed during the financial year 2015. @ The dividend payout for 2015 is estimated based on number of shares as at 31 March 2016. ^ Share price is after adjustment on the effects of Rights and Bonus Issues completed during the financial year 2015.

Revenue Net Profit Attributable Equity Attributable (in RM’000) to Equity Holders to Ordinary Equity Holders (in RM’000) (in RM’000) 66 6 6

002 Meridin East, Johor Bahru

002 Group Five-Year Financial Highlights 006 Corporate Information 007 Corporate Structure 008 Awards & Recognition 014 Directors’ Profile

CORE FACTS Icon Residence, Mont Kiara

EXCELLENCE IN CUSTOMER SERVICE EXCELLENCE IN CUSTOMER

e are committed towards focusing on your needs by working with you every Wstep of the way. And we go the extra mile to ensure our customers are SERVICE provided with services that is second to none. MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

CORPORATE INFORMATION

JEN. TAN SRI YAACOB BIN MAT ZAIN (R) LEONG YUET MEI Chairman/ Executive Director Independent Non-Executive Director CAPTAIN IZAHAM BIN ABD. RANI (R) TAN SRI DATO’ SRI LEONG HOY KUM Independent Non-Executive Director Group Managing Director/ Group Chief Executive LOH KOK LEONG board of Independent Non-Executive Director NG CHAI YONG directors Chief Executive Officer JANE LEONG JHENG-YI Alternate Director to Tan Sri Dato’ Sri DATO’ STEVEN NG POH SENG Leong Hoy Kum Executive Director

AUDIT COMMITTEE REGISTERED OFFICE Maybank Islamic Berhad OCBC Bank () Berhad JEN. TAN SRI YAACOB Penthouse Suite 1, Wisma Mah Sing Public Bank Berhad BIN MAT ZAIN (R) No. 163, Jalan Sungai Besi Public Islamic Bank Berhad CAPTAIN IZAHAM BIN ABD. RANI (R) 57100 RHB Bank Berhad LOH KOK LEONG Tel : 603-9221 8888 RHB Islamic Bank Berhad Fax : 603-9222 2833 P.T. Bank Ekonomi Raharja NOMINATION COMMITTEE P.T. Bank Permata Tbk AUDITORS JEN. TAN SRI YAACOB The Bank of Tokyo-Mitsubishi UFJ, Ltd BIN MAT ZAIN (R) Deloitte (AF 0080) CAPTAIN IZAHAM BIN ABD. RANI (R) Chartered Accountants STOCK EXCHANGE LISTING LOH KOK LEONG Level 16, Menara LGB Main Market of Bursa Malaysia 1, Jalan Wan Kadir Securities Berhad REMUNERATION COMMITTEE Taman Tun Dr. Ismail 60000 Kuala Lumpur JEN. TAN SRI YAACOB STOCK SHORT NAME Tel : 603-7610 8888 BIN MAT ZAIN (R) Fax : 603-7726 8986 MAHSING (8583) TAN SRI DATO’ SRI LEONG HOY KUM CAPTAIN IZAHAM BIN ABD. RANI (R) BANKERS INDEX SECRETARIES Affin Bank Berhad Bursa Malaysia Property Index Alliance Investment Bank Berhad YANG BAO LING (MAICSA 7041240) Al-Rajhi Banking & Investment WEBSITE KUAN HUI FANG (MIA 16876) Corporation (Malaysia) Berhad www.mahsing.com.my Bank Islam Malaysia Berhad REGISTRAR CIMB Bank Berhad INVESTOR RELATIONS Tricor Investor & Issuing House CIMB Islamic Bank Berhad Services Sdn Bhd Hong Leong Bank Berhad Tel : 603-9221 8888 (Company No. 11324-H) HSBC Amanah Malaysia Berhad Email : [email protected] Unit 32-01, Level 32, Tower A Malayan Banking Berhad Vertical Business Suite, Avenue 3 Bangsar South No. 8, Jalan Kerinchi 59200 Kuala Lumpur Tel : 603-2783 9299 Fax : 603-2783 9222

006 Core Facts Messages Activities Governance Financials Additional Information Notices

CORPORATE STRUCTURE (ACTIVE OPERATING SUBSIDIARIES)

PROPERTY DIVISION PLASTICS DIVISION Property Development Plastics Manufacturing 100% Capitol Avenue Development Sdn Bhd 100% Mah Sing Plastics Industries 51% Convention City Development Sdn Bhd Sendirian Berhad 100% Dsara Sentral Sdn Bhd 100% Kenwira Sdn Bhd 100% Elite Park Development Sdn Bhd 100% Vital Routes Sdn Bhd 100% Enchanting Heights Sdn Bhd 65% P.T. Mah Sing Indonesia 100% Enchanting View Development Sdn Bhd 100% Enrich Property Development Sdn Bhd Plastics Trading 100% Icon City Development Sdn Bhd 100% Mah Sing Enterprise Sdn Bhd 100% Jastamax Sdn Bhd 100% Klassik Tropika Development Sdn Bhd 100% Legend Grand Development Sdn Bhd 100% Loyal Sierra Development Sdn Bhd 100% Mah Sing Properties Sdn Bhd 100% Mestika Bistari Sdn Bhd 100% Mediterranean View Development Sdn Bhd 100% Meridin East Sdn Bhd (formerly known as Sanjung Tropika Development Sdn Bhd) 100% Major Land Development Sdn Bhd 100% Maxim Heights Sdn Bhd 100% Multi Synergy Group Sdn Bhd 100% Myvilla Development Sdn Bhd 100% Nova Century Development Sdn Bhd 100% Nova Legend Development Sdn Bhd 100% Oasis Garden Development Sdn Bhd 100% Semai Meranti Sdn Bhd 100% Southville City Sdn Bhd 100% Star Residence Sdn Bhd 100% Supreme Springs Sdn Bhd 100% Tropika Istimewa Development Sdn Bhd 100% Uptrend Housing Development Sdn Bhd 100% Venice View Development Sdn Bhd 100% Vienna View Development Sdn Bhd 100% Vienna Home Sdn Bhd

Property Management 100% Liberty Property Management Sdn Bhd 100% Acacia Springs Management Sdn Bhd 100% Mestika Kenangan Sdn Bhd 100% MS Icon Property Services Sdn Bhd 100% Prima Peninsular Development Sdn Bhd 100% Quantum Noble Development Sdn Bhd

Property Investment 100% Marvellous Vantage Sdn Bhd

007 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence AWARDS RECOGNITION&

CORPORATE AND BRANDING

1 The Edge Malaysia’s Top Property Developers Awards 2015 for Top 10 Property Developers Award The Edge Malaysia Property Excellence Award 2015 for The Edge Malaysia Outstanding Property Entrepreneur Award 2015

1

2 StarProperty.my Award 2016 Top Ranked Developer of the Year

2

3 iProperty.com People's Choice Award 2015 for Developer of the Year – Mah Sing Group Berhad

3

008 Core Facts Messages Activities Governance Financials Additional Information Notices

RECOGNITION

4 5

7 8

4 Property Insight Malaysia Prestigious Developer Awards 2016 for Top 10 Developers Award

6 5 BCI Asia Top 10 Developers Award 2015

6 Employer Branding Award for Malaysia Best Employer Brand Award 2015

7 The 5th Asian Excellence Recognition Award 2015 for Best CEO (Investor Relations) – Tan Sri Dato’ Sri Leong Hoy Kum The 5th Asian Excellence Recognition Award 2015 for Best CSR – Mah Sing Group Berhad The 5th Asian Excellence Recognition Award 2015 - Best Investor Relations Company (Malaysia) – Mah Sing Group Berhad

8 The BrandLaureate Special Edition World Award 2015 for Premier Corporate Brand

009 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

9 10

11 12

13 14

9 The Global Branding Awards 2015 for 11 The BrandLaureate Special Edition World 13 IAIR Best Company for Leadership/ Lifetime Achievement Award 2015 Award 2015 for Brandpreneur Life Property Development 2015 Award – Tan Sri Dato’ Sri Leong Hoy Kum Inspired Achievement Award – Tan Sri Dato’ Sri Leong Hoy Kum 14 2015 Frost & Sullivan Excellence in The Global Branding Awards 2015 for The Growth Building Construction Industry Best Brand in Property and Lifestyle 12 The BrandLaureate Billion Dollar Brand Award Development Award 2015 Awards 2014-2015 – Mah Sing Group – Mah Sing Group Berhad Berhad 15 National Annual Corporate Report Awards (NACRA) 2015 for Certificate 10 Corporate Governance Asia for The BrandLaureate Philanthropist of the of Merit Outstanding Companies on Corporate Year 2014-2015 Governance (awardee from 2012-2015) – Tan Sri Dato’ Sri Leong Hoy Kum 16 Asia Responsible Entrepreneurship – Mah Sing Group Berhad Awards 2015 for Investment in People Corporate Governance Asia 2015 for Asian Corporate Director of the Year 17 Social Media Excellence Awards 2015 – Tan Sri Dato’ Sri Leong Hoy Kum for Lifestyle Developer

010 Core Facts Messages Activities Governance Financials Additional Information Notices

PROPERTY

01 02

03 04

2 South East Asia Property Awards 5 Property Insight Malaysia Malaysia (SEAPA) for Best Luxury Prestigious Developer Awards Condo Development (North Malaysia) 2016 for Best Eco-Urban – Ferringhi Residence by Mah Sing Township Development – Group Berhad Southville City @ KL South Property Insight Malaysia 3 Malaysia Landscape Architecture 05 Prestigious Developer Awards Awards (MLAA 2014) for Landscape 2016 for Best Hi-Rise Design Awards – Southville City @ Development, Central Region KL South 1 Asia Pacific Property Awards (APPA) for – Lakeville Residence, Taman Wahyu, Kuala Lumpur Highly Commended Commercial 4 Malaysian Reserve Property Press High-rise Architecture – D’sara Sentral Award for Outstanding Achievement Property Insight Malaysia Asia Pacific Property Awards (APPA) Awards – Ambrosia, Kinrara Prestigious Developer Awards for Leisure Development – The Loft @ Residence 2016 for Best International Destination Development – The Southbay City Malaysian Reserve Property Press Meridin @ Medini, Johor Bahru Award for Best High Rise Development – Icon Residence, 6 StarProperty.my Award 2016 for Mont Kiara The Best Touch & Feel Award – D’sara Sentral

011 QUALITY DRIVEN PROJECTS Southville City@KL South, direct interchange to KL-Seremban Highway to be completed by 2017

QUALITY DRIVEN ur projects are a varied showcase Oof quality developments. From contemporary lifestyle statements to practical yet functional homes, we are recognised as an innovative developer of niche products PROJECTS and trend-setting townships. MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

DIRECTORS’ PROFILE

“It is our determination and commitment to excellence that enabled us to achieve our successes.”

Jen. Tan Sri Yaacob had a distinguished career spanning nearly 40 years in Angkatan Tentera Malaysia before retiring in 1993 as a Panglima Angkatan Tentera Malaysia. He had attended courses at the Australian Army General Command and Staff College, the Naval Post Graduate School in Monterey, United States of America, the Royal JEN. TAN SRI YAACOB BIN MAT ZAIN (R) College of Defence Studies in the United Kingdom Chairman/Independent Non-Executive Director and the Advance Management Programme at Harvard Business School.

Apart from his directorship in the Company, he is the • Malaysian, 80 years of age Chairman of Affin Hwang Investment Bank Berhad • Appointed to the Board on 29 June 1994 and Syarikat Permodalan Kebangsaan Berhad. He is • Chairman of the Audit Committee also a director of Affin Investment Berhad. • Chairman of the Nomination Committee

• Chairman of the Remuneration Committee There is no conflict of interest between him and the • Attended all 4 Board Meetings and 4 Audit Company nor are there any family relationships Committee Meetings convened during the between him and any director or major shareholder of financial year the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any.

014 Core Facts Messages Activities Governance Financials Additional Information Notices

TAN SRI DATO’ SRI LEONG HOY KUM “Do not be afraid P.S.M., S.S.A.P., D.P.M.S., J.P., HON. PH.D Group Managing Director/Group Chief Executive of changes.

• Malaysian, 58 years of age • Founder and First Director Appointed to the Change for the Board, on 3 December 1991 • Member of the Remuneration Committee • Attended all the 4 Board Meetings convened better and strive during the financial year for excellence.”

Tan Sri Dato’ Sri Leong Hoy Kum founded in Malaysia main growth corridors, namely Greater the plastics manufacturing division in 1979 KL ( Valley and Kuala Lumpur), Johor, and listed Mah Sing Group Berhad on the Penang and Sabah. Kuala Lumpur Stock Exchange in 1992. He has been on the Central Committee of the In recognition of his achievements, he was 900-member Malaysian Plastics conferred an honorary Doctor of Philosophy Manufacturers Associations since (Ph.D.) in Business Administration by the 1986. He is also the Honorary Honolulu University, Hawaii in 2000. He President of the Young Malaysian was conferred the Darjah Paduka Movement Association (YMM) Mahkota (D.P.M.S.) which since 1999 and of The Dramatic carries the title of “Dato” and the Jaksa Art Society, Malaysia since Pengaman (J.P.) awards by his 1996. Besides that, he is the Highness, in 1996 Vice-President of the Table and 2001 respectively. Tan Sri Dato’ Tennis Association of Malaysia Sri Leong was conferred the Darjah since 1999. Kebesaran Sultan Ahmad Shah Pahang Yang Amat DiMulia – Tan Sri Dato’ Sri Leong Hoy Peringkat Pertama Sri Sultan Kum is the key driving force Ahmad Shah Pahang (S.S.A.P.) behind the phenomenal which carries the title “Dato Sri” on growth and success of Mah the Sultan Pahang’s 77th birthday on Sing Group Berhad. Driven 3rd November 2007 and the Darjah by his determination to Panglima Setia Mahkota (P.S.M.) which maximise shareholders’ value carries the title “Tan Sri” in 2009. and passion for property, Tan Sri Dato’ Sri Leong He also sits on the Board of Directors of ventured into property various other private companies. development in 1994. Being the Group Managing Director/ He is the brother to Director, Ms Leong Yuet Group Chief Executive, he has Mei and father to Alternate Director, Ms Jane been instrumental in shaping Mah Leong Jheng-Yi. There is no conflict of interest Sing as a multi-award winning real between him and the Company nor has he estate specialist. His vast experience been convicted for any offences within the past spanning 30 years as well as his 10 years other than for traffic offences, if any. entrepreneur spirit culminated in the Group expanding rapidly with projects

015 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

“When a team works in unison, great MR NG CHAI YONG things can be Chief Executive Officer achieved, and that is • Malaysian, 54 years of age • Appointed to the Board on 1 July 2014 the core foundation of • Attended all the 4 Board Meetings convened during the financial year the Group’s journey to excellence.”

Mr Ng Chai Yong has close to 30 years of experience in the civil engineering, banking and property industries.

After practising as a consulting engineer for 3 years, he was in the banking industry for 4 years, first with Citibank N.A in Kuala Lumpur and later in Keppel Bank of Singapore.

Following his return to Malaysia, he joined S P Setia Berhad in 1993 where he served in numerous capacities for 11 years. His last position as the Director/General Manager of Bukit Indah Johor Sdn Bhd and CEO of Setia Eco-Park Sdn Bhd saw him handling large property developments in Malaysia’s central and southern regions.

Prior to joining Mah Sing Group Berhad, he was the executive director of FCW Property Management Sdn Bhd, a subsidiary of FCW Holdings Berhad.

There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any.

016 Core Facts Messages Activities Governance Financials Additional Information Notices

DATO’ STEVEN NG POH SENG “There is no short cut to Executive Director success. Our achievements

• Malaysian, 50 years of age are the direct result of • Appointed to the Board on 27 June 2005 • Attended all 4 Board resourceful planning, Meetings convened during the financial year focused effort and thorough preparation.”

Dato’ Steven Ng Poh Seng has In recognition of his more than 25 years of achievements, Dato’ Steven Ng experience in audit, accounts, Poh Seng was conferred the corporate finance and financial Darjah Kebesaran Mahkota investment. He holds a Bachelor Pahang Yang Amat Mulia – of Science degree majoring in Peringkat Kedua Darjah Indera accounting from the University of Mahkota Pahang (DIMP) which Wales (UK). He is a member of carries the title “Dato’” on the both the Institute of Chartered Sultan Pahang’s 82nd birthday in Accountants in England and 2013. Wales and the Malaysian Institute of Accountants. He worked in a He is currently the Executive Chartered Accountancy firm in Director of the Company heading United Kingdom and upon his the Group Corporate and return to Malaysia, he served as Investment division. a Manager in Malaysian International Merchant Bankers There is no conflict of interest Berhad before joining S P Setia between him and the Company Berhad. After 8 years of service nor are there any family in S P Setia Berhad, he left as relationships between him and Head of Corporate Affairs prior any director or major shareholder to joining the Company. of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any.

017 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

“Right ideas are MS LEONG YUET MEI powerful tools Executive Director that can change • Malaysian, 61 years of age • Appointed to the Board on 17 November 1997 the world, and • Attended all 4 Board Meetings right ideas has convened during the financial year brought the Group to its glory of

Ms Leong Yuet Mei was first appointed to today.” the Board on 17 November 1997 as the Non-Independent Non-Executive Director. She was subsequently re-designated as Executive Director on 27 November 2015.

She has more than 17 years of experience in the property industry. Ms Leong holds an ACCA Certified Diploma in Accounting and Finance. Ms Leong was a member of the Malaysian Institute of Management (MIM) and the Research Institute of Investment Analysts Malaysia (RIIAM). She was attached to RHB Securities Sdn Bhd as a Dealers Representative since 1991. Prior to that Ms Leong was with KAF Discount Berhad as a Senior Accountant.

Ms Leong Yuet Mei is the elder sister to Group Managing Director/Group Chief Executive, Tan Sri Dato’ Sri Leong Hoy Kum and aunt to Alternate Director, Ms Jane Leong Jheng-Yi. There is no conflict of interest between her and the Company nor has she been convicted for any offences within the past 10 years other than for traffic offences, if any.

018 Core Facts Messages Activities Governance Financials Additional Information Notices

“Together with our people, we constantly improve, progress and CAPTAIN IZAHAM BIN ABD. RANI (R) Independent Non-Executive Director upgrade ourselves,

• Malaysian, 54 years of age allowing us to • Appointed to the Board on 16 April 2001 • Member of the Audit Committee go beyond the • Member of the Nomination Committee • Member of the Remuneration Committee • Attended all 4 Board Meetings and 4 Audit boundaries.” Committee Meetings convened during the financial year

Captain Izaham served in the Malaysian Armed Forces for nearly 14 years before his early retirement in 1992. He attended various career courses conducted domestically as well as in Australia and Singapore. He was the Business Development Manager at the Kukup Golf Resort in Pontian, Johor before serving Port Dickson Golf & Country Club as the General Manager until end 2004.

Captain Izaham is also a Director in a leading multinational petroleum company from the Sultanate of Oman, (MB Petroleum Services Sdn Bhd) and Epicentro Resources Sdn Bhd which deals in Defence Products and is a subsidiary of British Aerospace (BAE Systems).

There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any.

019 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

MR LOH KOK LEONG Independent Non-Executive Director

• Malaysian, 51 years of age • Appointed to the Board on 23 September 2002 • Member of the Audit Committee • Member of the Nomination Committee • Attended all 4 Board Meetings and 4 Audit Committee Meetings convened during the financial year

Mr Loh Kok Leong is an accountant by profession and has been attached to various international accounting firms both in Malaysia as well as overseas for more than 20 years, out of which 3 years were dedicated as a partner of Deloitte Touche Tohmatsu Kuala Lumpur. He is currently a partner of a professional services firm, Russell Bedford LC & Company. He is a member of the Malaysian Institute of Accountants, the Malaysian Institute of Certified Public Accountants and the “Excellence Chartered Tax Institute of Malaysia. is an attitude, There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or not a skill. It major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. is the gradual result of always striving to change and be better.”

020 Core Facts Messages Activities Governance Financials Additional Information Notices

MS JANE LEONG JHENG-YI “A company’s Alternate Director to Tan Sri Dato’ Sri Leong Hoy Kum achievements begin

• Malaysian, 30 years of age • Appointed as Alternate Director with its people. With to Tan Sri Dato’ Sri Leong Hoy Kum on 27 November 2015 the right motivation, training and development, we will be able to maintain our pole position in the industry.

Ms Jane Leong Jheng-Yi holds a Bachelor of Commerce (Accounting & Finance) from the University of Melbourne and Masters in Applied Finance from Monash University.

She joined the Company in 2010 and is currently the Senior General Manager for Group Strategy & Operations. Her experience includes planning and managerial roles in Business Development, Corporate & Investments, Human Resource and the Company’s charity arm, Mah Sing Foundation.

Ms Jane Leong Jheng-Yi is the daughter to Group Managing Director/Group Chief Officer, Tan Sri Dato’ Sri Leong Hoy Kum and niece to Executive Director, Ms Leong Yuet Mei. There is no conflict of interest between her and the Company nor has she been convicted for any offences within the past 10 years other than for traffic offences, if any.

021 MESSAGES Ambrosia@Kinrara Residence,

024 Chairman’s Statement 034 Group Managing Director’s Report 040 Review of Operations 054 Media Highlights MESSAGES MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

DEAR VALUED SHAREHOLDERS, We are pleased to present to you our report card for 2015, which marked our 21st year as Malaysia’s premier lifestyle developer. While property is a cyclical industry, Mah Sing’s prudent planning and business strategy has resulted in exceptional growth since we built our first township in , Selangor back in 1994.

024 STATEMENT Core Facts Messages Activities Governance Financials Additional Information Notices

We have grown from The Group will continue to deliver easily as both Ramada Encore Meridin and accessible, well planned projects with Ramada Meridin are expected to be fully strength to strength good concepts in strategic locations. The operational by 2018. with each of our focus will be on townships and integrated projects while or niche developments serviced by More than just developing exceptional maintaining the facilities and amenities. homes, the Group wishes to give people a chance to own their dream home. The exceptional quality Aside from our commendable sales Edge – Mah Sing Millionaire Contest which has made us a achievements for 2015, we have gave us that opportunity, as the winner household name. accumulated an outstanding balance of the competition redeemed his dream sheet, with a cash pile of approximately home at our Icon Residence at Since the year 2010, we have been RM1.4billion, the highest in our history. Mont Kiara, Kuala Lumpur. I wish to achieving annual property sales of above This coupled with our net gearing ratio congratulate him on owning his very own RM1billion. The Group continued to of 0.04 times, well below our internal dream home and hope that the Group will continue to find opportunities to help surpass this mark through our ability to target of 0.5 times, puts us in a great others own their own home. identify strategic locations coupled with position for the year 2016 and beyond. our products that are in line with the The Mah Sing Foundation is an important current market demands. HIGHLIGHTS OF 2015 component of the Group and we are continuously exploring innovative ways to Fast forward to 2015, we continue to A driving factor in reaching our give back to society. We were presented maintain our position as one of the top RM2.3billion sales figure was due to such an opportunity straight out of a developers in Malaysia, achieving strong sales from our ongoing projects movie. The release of the award-winning RM2.3billion in domestic property sales. such as M City in Jalan Ampang, film “The Kid From The Big Apple”, which Southville City@KL South, Icon City in With an increase of 8.5% in net profit Mah Sing has a beneficial interest in, will , M Residence and M and driven by 7.0% improvement in see the Group donating our portion of the Residence 2 in Rawang and Kinrara revenue as compared to the previous profits to the Mah Sing Foundation to aid Residence in Puchong. In addition, the year, this represents a commendable those in need. We were proud to support achievement during the challenging year Group recognised fair value gain on the a movie with deep family and cultural of 2015. completion of investment properties from values that resonates with our organisation Star Avenue Lifestyle Mall. while being able to do a good deed. We take pride in understanding the needs of the market and tailoring our 2015 also saw the Group ventured into With an active array of activities strategies to suit demand. We hit our new territory with the launch of our completed in 2015, the Group aims to 2015 sales target by offering products in inaugural hotel serviced suites, Ramada continue this momentum, and with line with market demand, namely Encore Meridin, as well as our second renewed perseverance and strategic beginner homes for the mass market hotel, Ramada Meridin. Both projects will planning, our other ongoing projects and also upgrader homes in selected add another dimension to our organisation should be able to reach similar high locations. standards.

STATEMENT 025 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

ASIDE FROM OUR COMMENDABLE SALES ACHIEVEMENTS FOR 2015, WE HAVE ACCUMULATED AN OUTSTANDING BALANCE SHEET, WITH A CASH PILE OF APPROXIMATELY RM1.4BILLION, THE HIGHEST IN OUR HISTORY. 2016 SALES TARGET Entering 2016, we will maintain our strategy to focus on accessible, mass market housing in line with the market’s current needs. With 89% of our planned residential launches below the RM1million range, we are in prime position to capture the upturn in market demands. The Group continues to be disciplined in financial management and selective on new launches while continuing to meet targets for our existing projects. With our RM4.75billion in unbilled sales, the Group will be able to accelerate work on current developments and keep us in a healthy position to venture into new projects.

FINANCIAL REVIEW, CORPORATE HIGHLIGHTS AND DIVIDENDS

IMPROVEMENT COMPARED TO 2014 2015KPI & RESULTS REVENUE RM

3.1billion Up 7% from RM2.9billion in 2014

NET PROFIT

Consistent and effective performance RM Compounded annual growth rate (CAGR) of 27% on Net Profit and industry leading Asset Turnover Ratio of 50% on average for the million past 5 years. 386.7 Increase of 8.5% from RM339.2million in 2014

026 Core Facts Messages Activities Governance Financials Additional Information Notices

HIGH UNBILLED SALES OF

RM4.75 billion to sustain earnings growth, equivalent of SALES 1.7 times revenue recognised from property division in RM billion 2015, providing liquidity and a steady stream 2.3 of near term cash flow maintains target for 2016 Consistent sales above a billion since 2010

RM HIGHEST CATCH PILE ON RM billion RECORD provides 1.4strong liquidity 3.1billion Up 7% from RM2.9billion in 2014 CASH POSITION TO BE Outstanding balance sheet ENHANCED BY – only 0.04 times net gearing

million RM Near net cash position final stage 651billings in 2016 despite current scale of projects, well below internal target of 0.5 times PROPOSED DIVIDEND OF PER ORDINARY SHARE OF 6.5SEN RM0.50

EXEMPLARY DIVIDEND PAYOUT OF MINIMUM percent payout percent RATIO FOR ATTRACTIVE 40 10 CONSECUTIVE YEARS 5 DIVIDEND YIELD 027 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

EARLY DELIVERY OF DIVIDEND SOUTHVILLE CITY@KL The Group continues to maintain SOUTH’S DIRECT our remarkable record of paying INTERCHANGE dividends to our trusted We are pleased to update shareholders and I am pleased to shareholders that Gross announce that the Board of development value (GDV) for the Directors have proposed a final 428-acre freehold township of dividend of 6.5 sen per ordinary Southville City@KL South has share of RM0.50 each in respect been enhanced to RM11.1billion of the financial year ended 31 from the new masterplan to December 2015, subject to unlock greater value and shareholders’ approval in the enhancement of value upcoming Annual General proposition. Meeting.

Furthermore, the direct This translates into interchange which directly an attractive connects Southville City to KL-Seremban is expected to be dividend yield of completed by end 2017, earlier approximately 5% than the scheduled completion and marks the 10th in 2018. Apart from shortening consecutive year of the distance to Southville City to just 19km from Kuala Lumpur uninterrupted (from Sg Besi Toll) and with delivery on the convenient direct exit and arrival Group’s minimum at the heart of Southville City, 40% dividend the direct Interchange offers transitional convenience to the payout policy. It regional communities wanting a remains the quick connection to the KL- Group’s Seremban Highway. The commitment to upcoming High Speed Rail will benefit Southville City which is ensure its just 25km from the station in shareholders Bandar Malaysia. continue to benefit from its disciplined This will enhance commercial viability and make Southville City approach to an appealing investment, sustainable long especially its inaugural term growth. commercial retail development namely Savanna Lifestyle Shops which are already in an advanced stage of construction and will reap the benefits of the connectivity immediately.

Cerrado Residential Suites in Southville City@KL South

028 Core Facts Messages Activities Governance Financials Additional Information Notices

CORPORATE EXERCISE – Based on Bank Negara Malaysia’s AWARD WINNING PERPETUAL Annual Report 2015, a substantial DEAL increase in the supply of affordable housing is necessary. During the financial year, the Group completed the issuance of An estimated 203,000 new houses RM540million nominal value will be required annually between unrated perpetual Sukuk under the 2016 and 2020 to match the Shariah principle of Musharakah. estimated growth in households The deal earned the Group the during this period. This is Islamic Finance News (IFN) approximately 2.5 times the “Perpetual Deal of the Year Award “Gross number of houses built annually in 2015”. the previous five years. Within the development same period, annual completion of As a perpetual bond, the issue houses declined considerably to value (GDV) has no fixed maturity date and 80,089 units, far below the enabled the group to lock-in 166,000 average net increase in for the 428- unsecured long-term funding while number of households annually. strengthening its capital structure. acre freehold The proceeds arising from the Looking at the projects we have in Sukuk will be utilised for Shariah- the pipeline, the Group will be township of compliant purposes which may able to support the needs of the include investments and working market and provide buyers with Southville City, capital of the Group and/or the accessible and affordable homes. refinancing of the Group’s existing KL South has The groundbreaking ceremony of borrowings. our Rumah Selangorku project at been enhanced M Residence 2@Rawang is proof THE CURRENT TRENDS of our commitment and marks the to RM11.1billion MOVING THROUGH THE REAL Group’s inaugural project under ESTATE INDUSTRY the Rumah Selangorku affordable from the new housing scheme programme that According to a property survey is administered by the Selangor conducted by the Real Estate masterplan to Housing and Property Board Housing Development Association (LPHS). (REHDA) in 2H2015, almost 70% unlock greater of the 159 respondents remained With Malaysia’s economic growth value and pessimistic of the state of the expected to grow between 4.0% property market in 1H2016. – 4.5% in 2016 according to Bank enhancement Negara, domestic demand will play However, both buyers (48%) and a key role and the Group is of value developers (about 50%) had less poised to be at the forefront with gloomy outlooks for the 2H2016 our current projects and provide proposition” and were more neutral in their affordable homes to buyers. sentiments. This is an indication that many are being cautious of the property market and are adopting a wait-and-see strategy to monitor the market’s performance.

029 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

CORPORATE RESPONSIBILITY We at Mah Sing recognise our responsibility as a corporate citizen and believe in giving back to society. We are proud to be able to have a positive impact to the community and improve the quality of life of those who are in need.

The Group was able to extend their support to the people of Kathmandu, Nepal who were devastated by a 7.8 magnitude earthquake in April 2015. The Mah Sing Foundation, donated RM100,000 to a Nepal earthquake relief fund driven by MERCY Malaysia. The funds were used to provide medical support, including setting up a field hospital in Nepal to help the victims.

The Foundation also took the initiative to organise the Mah Sing Mah Sing Foundation Charity Run Foundation Charity Fun Run which attracted a total of 1,380 participants. The run raised awareness on autism while “The Foundation encouraging people to adopt a healthy lifestyle. also took the initiative

These are few initiatives which the to organise the Group has undertaken to create a positive impact on the community. Mah Sing Foundation Going beyond Bursa Malaysia’s Listing Requirements to report on Charity Fun Run which the CSR initiatives, we have a detailed Sustainability Report from attracted a total of pages 058 to 093 which provides further information of our efforts in 1,380 participants. The the long-term sustainability of economic vitality, social relationships run raised awareness with stakeholders and environmental on autism while also compliance. encouraging people to adopt a healthy lifestyle”

030 Core Facts Messages Activities Governance Financials Additional Information Notices

COMMUNITY ENVIRONMENT LOCAL COMMUNITY WORKPLACE EVENTS

Mah Sing aims to make a The Group is fully committed As a premier lifestyle The foundation of a great difference in people’s lives to safeguarding Earth’s developer, Mah Sing is company is built on the through our contribution to natural resources as it is an continuously finding ways to efforts of our great employees various initiatives we are a essential part of our business. give more value to our loyal – words that remain true to part of. The Group has put into customers. The Group the Group as we aim to In 2015, the Mah Sing practice green efforts, both focuses on developing develop our employees for Foundation contributed to within the organisation and strategies to better connect future success in the educational programmes that for all our development with our customers and company. provide opportunities for projects. ensure customer satisfaction. students to have better The Group received the access to education. These Internally, the Group has A testament to this effort is Malaysia’s Best Employer include contributions to Teach adopted a green policy and the value added services Brand Awards by the for Malaysia’s Fellowship Programme which sends launched a Go-Green such as M Care and M Club Employee Branding Institute individuals to high-need campaign to educate our to our loyal customers. Our for our relentless effort in schools across Malaysia to employees to adopt M Club membership has advocating best HR practices help improve the quality of environmental-friendly efforts grown to 31,000 members and developing talent. One of education, the Tunku Abdul for day-to-day operations and we hope to see it grow the programmes is our LEAD Rahman University College while instilling the habit of further in 2016. In Project (“Leadership (TAR UC) Scholarship recycling. Through this appreciation of their support, Excellence, Advancement Programme to assist outstanding students with initiative, we have managed the Group hosted an Development”) where we are financial difficulties, funds for to collect 2.9 tonnes of exclusive screening for over grooming talented individuals the building of the SSL recyclable items over 5 1,000 M Club members to within the company to one Special Needs School, as months, and the funds the award-winning film “The day take up key roles in the well as donations to the generated were donated to Kid From The Big Apple” in organisation. The project is Johore Bahru Foon Yew the Rumah Kesayangan , Penang, Johor picking up pace and we are Associated Chinese Schools, Kanak-Kanak. Bahru and Kota Kinabalu. excited to see it come to Kolej Universiti Selatan and Our commitment to our fruition. The Star Step Up 2015 Programme for Schools. On the operational front, Mah customers also extends to Sing has 7 projects registered our residential developments. The Group also promotes It is not only on the for a number of green Group Security is working work-life balance and educational front that the certifications including, closely with the police force encourages our employees to Group is giving back to Malaysia’s Green Building to increase safety and have interact in social and sporting society. The Mah Sing Index, REHDA’s GreenRE, been working diligently to activities the company Foundation contributed to the Singapore’s Green Mark and ensure better surveillance and organises throughout the treatment of two patients with critical illnesses via the USA’s LEED. This is part of patrol service. year. Among the activities Yayasan Nanyang Press as the Group endeavours to include the Employees New well as donating to the promote environmental Year Party, Skytrex Malaysia Donors Society for sustainability in all aspects of Adventure, Go-Kart Team their campaign during World our organisation. Challenge, our team’s Blood Donor Day. participation in the Retro Run 2015, the Pulau Jerejak Team More than just donating to a cause, the Mah Sing Building Day Trip for our Foundation organised a employees from Penang, as weekend visit to an well as our 2015 Annual orphanage to lend a hand for Dinner which was attended the day and went a step by a total of 790 staff further, by arranging a throughout the nation. Christmas party for orphans and refugee children where Mah Sing staffs contributed gifts to the children based on their wish list. 031 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

Awards and Achievements

The list of achievements earned by the Group continues to grow with numerous recognitions in 2015. Among the recognitions include:

• iProperty.com People’s • Corporate Governance Asia • The Edge Malaysia Property • 2015 Frost & Sullivan Choice Award 2015 – Outstanding Companies Excellence Award 2015 Excellence in Growth – Developer of the Year on Corporate Governance – Top Property Developers Building Construction – Mah Sing Group Berhad (awardee from 2012- Award 2015 Industry Award 2015) – Mah Sing Group – The Edge Malaysia This marks our second This award recognises the – Asian Corporate Director Outstanding Property consecutive win in the same growth the Group has category with over 20,000 of the Year – Tan Sri Entrepreneur Award 2015 undergone to be one of the top participants voting us as their Dato’ Sri Leong Hoy Kum developers in the country. It is We improved on our ranking to most trusted developer. an award we hold in high I would like to congratulate our become the 5th Top Property esteem. Group Managing Director/Group Developer in Malaysia. It is a Chief Executive, Tan Sri Dato’ Sri testament to our perseverance to Leong Hoy Kum on being named continuously improve ourselves. It Asian Corporate Director of the is also a great honour for our Year. It is a great achievement Group Managing Director/Group for him and a testament in Chief Executive, Tan Sri Dato’ Sri adhering to respectable corporate Leong Hoy Kum to be awarded governance. the Outstanding Property Entrepreneur Award as it is a highlight to his contribution to the industry over the years.

Ferringhi Residence, Penang

032 Core Facts Messages Activities Governance Financials Additional Information Notices

LOOKING TO THE FUTURE well as our Ferringhi Residence 2 in Penang Island. By continuing with our strategy to deliver 2016 is set to be another important year for the affordable homes to the mass market, the Group Group as we aim to set new benchmarks in is confident in capturing a sizeable portion of the delivering excellence for our projects. With our property market. solid track record backed by our prudent financial discipline and healthy liquidity profile, we On a separate note, I am pleased to announce will be able to begin the year with renewed the redesignation of Ms. Leong Yuet Mei as an hunger and determination. Executive Director and welcome Ms. Jane Leong Jheng-Yi as an Alternate Director. Ms. Leong Various indicators point towards the Malaysian Yuet Mei brings with her more than 17 years of property market reaching a turning point soon; experience in the property industry while sentiments are still weak but we think the worst Ms. Jane Leong is is over. Many are currently the Senior expecting General Manager for sentiments to pick Group Strategy and up in the second Operations. Her half of 2016, and experience includes the Government is planning and proactively managerial roles in implementing Business Development, measures to Corporate & increase home Investments, Human ownership amongst Resource, and Mah Malaysians, Sing’s charity arm, especially first time Mah Sing Foundation. home buyers. This Welcome on board. includes The First Home Deposit In closing, I wish to Funding Scheme extend my gratitude to (MyDeposit) with the management and an allocation of staffs for the RM200million and exceptional work and 50% stamp duty excellence they have exemption on instruments of transfer and loan contributed to Mah Sing. Your commitment to agreements for first time home buyers. the cause is exemplary and I thank you for Developers with the right products will be able your efforts. to benefit from this scheme; 50% of our residential launches in 2016 are priced below On behalf of the Board, we would like to convey RM500,000, making half our potential buyers our sincere appreciation to our shareholders, eligible to apply for the MyDeposit scheme. business associates, customers, the Government and local authorities for your continued support The Group is confident that with our planned and belief in Mah Sing. residential launches this year, we will be able to improve on last year’s performance and are in As we continue on this journey, let us strive to good position to sustain our growth. surpass our accomplishments and forge a new path on the road to excellence for 2016. Among our planned launches include our Cerrado serviced apartments in Southville@KL

South, our new blocks in D’sara Sentral, , Lakeville Residence in Taman Wahyu, our new Laman Ayu township in Rawang, Meridin Jen. Tan Sri Yaacob bin Mat Zain (R) East township in Pasir Gudang, Johor Bahru, as Chairman

033 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

Message GROUP MANAGING DIRECTOR’S REPORT 2015 marked an eventful year for the Group as we celebrate our 21st Anniversary as Malaysia’s premier lifestyle developer. With our solid track record for delivering projects of excellent quality, Mah Sing recorded total sales of HKRM2.3billion, a commendable achievement.

TAN SRI DATO’ SRI LEONG HOY KUM Group Managing Director/Group Chief Executive

034 Core Facts Messages Activities Governance Financials Additional Information Notices

The Group registered total unbilled sales of RM4.75billion as of 31st December 2015 which is equivalent to approximately 1.7 times the revenue recognised from our property division in 2015. Our current unbilled status provides liquidity and a steady stream of near term cash flow while the Group’s remaining landbank comprises residential, commercial, industrial and mixed developments, providing viable options for most types of investors.

The Group’s strategy of focusing on M City, Jalan Ampang developing accessible, mass market housing in line with the current market needs was a key element is achieving our sales target for the year. In 2015, 84% of our residential launches were below the in 2015 With mid-range properties maintaining a RM1million range, 71% of which is priced healthy demand in the market, the below RM700,000 and 44% which is Group’s strong presence in key locations, priced below RM500,000. Looking at the mainly Greater KL (63% of remaining year ahead, the Group will follow a similar 84% gross development value), Iskandar formula as 89% of our planned residential of our residential Malaysia and Johor Bahru (23%), Penang launches are below RM1million, with 68% launches were below the Island (9%) and Kota Kinabalu, Sabah priced below RM700,000 and 50% priced (5%), sets the company in prime position HKbelow RM500,000. million range to capture the market with our ready RM1 projects.

The Meridin@Medini, Iskandar Malaysia THE BUILDING BLOCKS OF SUCCESS The Group achieved a net profit of approximately RM386.7million on the back of revenue of approximately RM3.1billion for the year ended 31st December 2015. This represents 8.5% improvement in net profit and 7.0% improvement in revenue as compared to the previous financial year. This was due to the sales of our ongoing development projects which include:

035 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

GREATER KL AND KLANG PENANG ISLAND ISKANDAR MALAYSIA AND KOTA KINABALU, SABAH VALLEY JOHOR BAHRU • Landed residential • Commercial developments: • Landed residential property: Legenda@ • Landed residential Sutera Avenue in Kota developments: Garden Southbay development: Austin Kinabalu Residence and Clover@ Perdana, Sri Pulai • High-rise residential Garden Residence in Perdana 2, Sierra Perdana developments: Southbay , M Residence City in Batu Maung, • High-rise residential and M Residence 2 in Ferringhi Residence in development: Meridin Rawang, Kinrara Batu Ferringhi Bayvue@Sierra Perdana Residence in Puchong • Integrated commercial • High-rise residential development: The developments: M City and Meridin@Medini M-Suites in Jalan Ampang, Icon Residence • Industrial development: in Mont Kiara, Lakeville Mah Sing i-Parc@Tanjung Residence in Taman Pelepas Wahyu

• Integrated development: The Loft@Southbay City, Batu Maung Mah Sing i-Parc@Tanjung Pelepas, Iskandar Malaysia D’sara Sentral in Sungai Buloh, Icon City in Petaling Jaya • Integrated sustainable mixed township: Southville City@KL South • Neighbourhood lifestyle mall: Star Avenue Lifestyle Mall

Clover@Garden Residence, Cyberjaya

Legenda@Southbay City, Batu Maung

036 Core Facts Messages Activities Governance Financials Additional Information Notices

As we progress into 2016, The Group is confident our selection of launches from new and existing projects will be able to contribute positively to the company’s performance. These new launches include:

GREATER KL AND KLANG PENANG ISLAND ISKANDAR MALAYSIA AND KOTA KINABALU, SABAH VALLEY JOHOR BAHRU • High-rise residential • Commercial developments: • Landed residential developments: Ferringhi • Landed residential Sutera Avenue in Kota developments: Laman Ayu Residence 2 in Batu development: Meridin East Kinabalu township in Rawang Ferringhi township in Pasir Gudang • High-rise residential developments: Cerrado Residential Suites in Ferringhi Residence 2, Penang Southville@KL South, new blocks in D’sara Sentral, Sungai Buloh as well as Lakeville Residence, Taman Wahyu

Cerrado Residential Suites, Southville City@KL South

D’Sara Sentral, Sungai Buloh

037 MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

HEALTHY GROSS DEVELOPMENT VALUE (GDV) The Group is happy to report that our unbilled sales and remaining GDV as at 31st December 2015 stands at RM32.9billion within our 4 development areas in Greater KL, Penang, Johor Bahru and Sabah. The Group’s attractive pricing options, strategic locations and range of product offerings contributed significantly to our progress for the year. The Group is looking forward to deliver an exemplary performance in 2016.

STRATEGIC LOCATION MIX & BROAD PRODUCT OFFERINGS

Remaining GDV (2,540 acres) Unbilled Sales Total RM28.1bn RM4.75bn RM32.9bn

5% 4% 9% 13%

23% 23%

33% 63% 27%

STRATEGIC LOCATION MIX BROAD PRODUCT OFFERINGS

Greater KL (22 projects), RM20.7bn Commercial (shops, offices, retail, hotel, SOVO), RM10.9bn Johor (7 projects) RM7.5bn Serviced apartment, SOHO. RM8.7bn Penang (4 projects), RM2.9bn Landed Residential, RM7.5bn Sabah (2 projects), RM1.8bn Condo, Apartments RM4.3bn

Industrial, RM1.5bn

ATTRACTIVE PRICING POINT

RM RMRM

Reidential RMRMillion roduct riced RMillion elow RMillionRMillion

038 Core Facts Messages Activities Governance Financials Additional Information Notices

SOLIDIFYING OUR

PLASTICS LEADERSHIPAnother top performer was M City Jalan OUTLINING A POSITIVE YEAR AHEAD Ampang. The project has performed well The plastics division continues to contribute with both Tower 1 and Tower 2 fully sold We have grown in stature and maintained positively to the revenue of the Group and Tower 3 at 92% occupancy rate. With our position as Malaysia’s premier lifestyle amounting to approximately RM231.9million a total GDV of RM1.6billion, M City is developer, building not only homes but in 2015. The plastics division continued to renowned for its 4 acres of greenery with communities for people to spend the rest sustain its growth in both of its operations thematic hanging gardens. We are looking of their lives in. The numerous awards we in Malaysia and Indonesia. forward to delivering its completion in 2016. received the past year highlight the Group’s commitment to exceed our customers’ expectations and craft once in PROPERTY DEVELOPMENT 2015 also saw the opening of Star Avenue Lifestyle Mall at Sungai Buloh, the a lifetime homes. Our property division performed well to hit Group’s first neighbourhood lifestyle mall. our RM2.3billion sales target in 2015. Our This is a significant milestone for us and 2016 will see the Group make final stage focus to provide beginner homes for the the Group is proud to be able to billings as we handover Vacant mass market and also upgrader homes in contribute more to the surrounding Possession (VP) of completed properties selected locations proved to be successful communities. Its neighbour, D’sara Sentral amounting to approximately RM651million. for the growth of the company. is performing admirably as well as its This will add to the Groups already location at the heart of healthy balance sheet and sustain our Southville City@KL South was our chief represents a driving factor for its positive growth in the market. contributor as the integrated sustainable take up rate. With the proposed mix township represented 26% of our total development of the direct covered linked With our substantial cash pile of sales for 2015. The take up rate for our 7 bridge from D’sara Sentral to the Mass approximately RM1.4billion and financial blocks of Savanna Executive Suites have Rapid Transit (MRT) Line 1 station, the discipline, we are in pole position to reached a remarkable 93% and we expect site is set to become a major hotspot acquire new development opportunities a similar level of interest from buyers when within the Klang Valley. should they arise. we launch our 8th block in 2016. The Group had encouraging progress Understanding the needs of our With the encouraging outlook for Savanna from our landed residential developments customers is a fundamental part of our Executive Suites, we foresee a positive within the Klang Valley, namely M business and we target to provide them uptake when we launch the Cerrado Residence and M Residence 2 in Rawang with the satisfactory service by making Residential Suites. Indicatively priced from and Kinrara Residence in Puchong. The significant investment to the company’s RM388,000, Cerrado Residential Suites are three projects contributed 14% of the service division. affordable luxury homes comprising of 2 Group’s sales and with the launch of our and 3 bedrooms with built-ups from 650 Laman Ayu township in Rawang slated in With our clear vision and proven strategy, square (sq) feet (ft) – 825 sq ft. 2016, we expect this segment to continue the company is poised to break new to bloom throughout the year. ground and enhance our solid track Southville City is set to become a key record in 2016. Armed with our wide project for the Group in the coming years, In our southern region, the Group officially range of portfolio to meet the needs of particularly with the early completion of the launched the sales gallery for Meridin East, the market, we are well positioned for direct interchange to the KL-Seremban our largest township to-date, with the positive growth in 2016. Highway expected in 2017. registration for The Willows, which comprises double-storey link homes As a team, we promise to live up to our Following in similar footsteps was Lakeville measuring 18’ x 65’ sq ft being previewed. high standards and deliver exceptional Residence in Taman Wahyu, our high-rise homes for our customers in the year residential development with a GDV of The Group is also looking forward to ahead. RM1.5billion. The development has delivering completion of the multiple towers outperformed expectations with more than within Icon City, Petaling Jaya which include 85% take up rate for its residential suites Icon Residenz, I-Sovo, Gourmet Street, 30 as its close location to Kuala Lumpur City Jewels and MSC Tower in 2016. The Centre with easy access to the Duta-Ulu Group has began works on a dedicated Tan Sri Dato’ Sri Leong Hoy Kum Klang Expressway (DUKE), Damansara- access ramp from Kuala Lumpur via Federal Group Managing Director/ Puchong Expressway (LDP), Sprint Highway into Icon City as part of its traffic Group Chief Executive Expressway and Middle Ring Road 2 dispersal system to ease traffic entering the (MRR2) make it an appealing option for area. The ramp is expected to be urban buyers. completed in 2016.

039 REVIEW OF OPERATIONS In the year under review, Mah Sing Group met its 2015 sales target of RM2.3billion by offering products in line with market demand, namely beginner homes for the mass market and also upgrader homes in selected locations.

Besides building homes, Mah Sing also fosters thriving communities and recently opened its first neighbourhood lifestyle mall, Star Avenue Lifestyle Mall, Sungai Buloh.

For 2016, Mah Sing looks forward to delivering completion for M City, Icon City’s residential towers, SoVo, Gourmet Street, 30 Jewels and MSC Tower in the Central Region, Southbay Plaza in Penang island, Mah Sing i-Parc@Tanjung Pelepas in Johor Bahru and Sutera Avenue in Kota Kinabalu, Sabah. Lakeville Residence, Taman Wahyu MAH SING Group Berhad Annual Report Twenty Fifteen Journey of Excellence

Star Avenue Lifestyle Mall

Star Avenue Lifestyle Mall, Sungai Buloh Star Avenue was designed as a neighbourhood lifestyle mall, with 4 levels of retail shopping experience and an attached covered boulevard that is tailored for weekend bazaars, festivities, a wide selection of gourmet restaurants, al fresco café as well as fun and vibrant outlets.

Newly opened in December 2015, Star Avenue’s anchor tenants includes Giant hypermarket, Brands Outlet and Original Classic Sports Attire & Equipment. Star Avenue also houses Ace Hardware, Maxis, Aeon Wellness, Guardian, Texas Chicken, Subway, Secret Recipe, Seoul Garden, Sushi King and Next Food Emporium. CENTRAL REGION

Icon Residence, Mont Kiara Icon Residence is a freehold service apartment, located amidst the well-established and booming neighbourhood of Mont Kiara, Sri Hartamas and Dutamas, one of the few most sought-after addresses. The development which drew its architectural inspiration from the Mediterranean waterfront resort and coastal towns features contemporary interior layout with customisable design.

One of Mah Sing’s Iconic Series, the Group is pleased to share that from a total of 290 units launched, 90% has been taken up and handed over to the respective home owners.

Icon Residence was recognised as the Best High Rise Development by the Malaysian Reserve Property Press Awards 2015.

042 Core Facts Messages Activities Governance Financials Additional Information Notices

M City

M City, Jalan Ampang M City is a freehold mixed development in the heart of Kuala Lumpur. Designed with a multi-level thematic hanging gardens, M City is just 5km away from KLCC. The development boasts a state-of-the-art fully equipped gym which includes rock climbing facilities and a mini theatre.

Also a Mah Sing iconic development, M City’s Tower 1 and 2 are fully sold while Tower 3 is 92% taken-up. Tower 1 has been handed over while Tower 2 and 3 are heading for delivery of Vacant Possession (VP) in Q2 and Q4 2016 respectively. Mah Sing is pleased to confirm Village Grocer as an anchor retailer at M City’s boutique retail. CENTRAL REGION

043