Annual Report UNITED U-LI CORPORATION BERHAD
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UNITED U-LI CORPORATION BERHAD UNITED U-LI CORPORATION UNITED U-LI CORPORATION BERHAD [ CO [Company No. 200001008131 (510737-H)] MP A N Y NO. 200001008131 Y NO. ( 510737-H )] A NNU Corporate Office Contact Website A UNITED U-LI CORPORATION BERHAD Tel : (+603) 5569 5999 www.uli.com.my L REP ANNUAL REPORT [Company No. 200001008131 (510737-H)] Fax : (+603) 5569 1666 No. 33, Jalan Kartunis U1/47 2020 Email : [email protected] O Temasya Industrial Park, Seksyen U1 RT 40150 Selangor Darul Ehsan, Malaysia 2020 Table of Contents 002 | Corporate Information 004 | 5 - Year Group Financial Highlights 005 | Profile of Directors 008 | Key Senior Management 009 | Management Discussion And Analysis 014 | Statement on Risk Management And Internal Control 019 | Sustainability Report 028 | Corporate Governance Statement 039 | Audit And Risk Management Committee Report 043 | Additional Compliance Information 044 | Financial Statements 109 | Statement By Directors 110 | Statutory Declaration 111 | Independent Auditors’ Report 115 | Properties of The Group 117 | Analysis of Shareholdings 119 | Notice of Annual General Meeting 122 | Statement Accompanying Notice of Annual General Meeting | Proxy Form Corporate Information SECRETARIES Koay Soo Ngoh (MAICSA 0856746) [SSM PC No. 202008000755] Foo Li Ling (MAICSA 7019557) [SSM PC No. 201908001737] REGISTERED OFFICE 62C, Jalan SS21/62 Damansara Utama 47400 Petaling Jaya Selangor Darul Ehsan Tel No. : +(603) 7727 2806/ 7729 3337 Fax No. : +(603) 7729 3619 BOARD OF DIRECTORS Tan Sri Dato’ Seri Utama Haji Ismail Bin Haji Omar Teow Lai Seng (Chairman) (Executive Director) (Independent Non-Executive Director) Chim Wai Khuan Tan Sri Dato’ Wira Lee Yoon Wah (Independent Non-Executive Director) (Group Managing Director/Chief Executive Officer) Shariff Bin Mohd Shah Dato’ Lee Yoon Kong (Senior Independent Non-Executive Director) (Executive Director) COMPANY NUMBER AUDIT AND RISK MANAGEMENT 200001008131 (510737-H) COMMITTEE Chim Wai Khuan – Independent Non-Executive Director STOCK EXCHANGE LISTING [Chairman] Main Board of Tan Sri Dato’ Seri Utama Haji Ismail Bursa Malaysia Securities Berhad Bin Haji Omar Stock Code : 7133 – Independent Non-Executive Director Shariff Bin Mohd Shah SHARE REGISTRAR – Senior Independent Non-Executive Director Boardroom Share Registrars Sdn. Bhd. 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim NOMINATION AND REMUNERATION Seksyen 13 COMMITTEE 46200 Petaling Jaya Tan Sri Dato’ Seri Utama Haji Ismail Selangor Bin Haji Omar Tel No. : +(603) 7890 4700 – Independent Non-Executive Director Fax No. : +(603) 7890 4670 [Chairman] Chim Wai Khuan AUDITORS – Independent Non-Executive Director Baker Tilly Monteiro Heng PLT Chartered Accountants Shariff Bin Mohd Shah – Senior Independent Non-Executive Director 2 United U-Li Corporation Berhad Corporate Information (Cont’D) GROUP PRINCIPAL BANKERS MANUFACTURING PLANTS United Overseas Bank (Malaysia) Berhad Lot PT 1481, Jalan Emas 1 39-45, Jalan Othman, 46000 Petaling Jaya Kawasan Perindustrian Nilai Selangor Darul Ehsan 71800 Nilai Negeri Sembilan Darul Khusus Hong Leong Bank Berhad Lot 43 & 45, Jalan USJ 10/1G Lot 7, Jalan 6/1 Taipan Triangle, 47620 Subang Jaya Kawasan Perindustrian Seri Kembangan Selangor Darul Ehsan 43300 Seri Kembangan Selangor Darul Ehsan Ambank (M) Berhad Level 18, Menara Dion, Jalan Sultan Ismail 25 & 27 Jalan Taming Lima 50250 Kuala Lumpur Taman Taming Jaya 43300 Seri Kembangan HSBC Bank Malaysia Berhad Selangor Darul Ehsan Unit 2A & 2A-A, Jalan USJ10/18 47610 UEP Subang Jaya, Selangor Darul Ehsan Lot 5 (PT7907), Jalan Balakong 43300 Seri Kembangan Selangor Darul Ehsan SOLICITORS Lot 44, Jalan Cetak Chooi & Company + Cheang & Ariff Tasek Industrial Estate Advocates & Solicitors 31400 Ipoh, Perak Darul Ridzuan 39 Court @ Loke Mansion 273A, Jalan Medan Tuanku, 50300 Kuala Lumpur Tay & Helen Wong BRANCH OFFICE Suite 703, Block F, Phileo Damanasara I 1 Jalan Seroja 54 9 Jalan 16/11, 46350 Petaling Jaya Taman Johor Jaya Selangor Darul Ehsan 81100 Johor Bahru Johor Darul Takzim HEAD/MANAGEMENT OFFICE 33, Jalan Kartunis U1/47 PRODUCTS MANUFACTURED Temasya Industrial Park, Seksyen U1 Cable Support Systems 40150 Shah Alam, Selangor Darul Ehsan Cable Management Systems Tel No. : +(603) 5569 5999 Floor Distribution Systems Fax No. : +(603) 5569 4170 e-mail : [email protected] Integrated Ceiling Systems Website : www.uli.com.my Light Fittings Annual Report 2020 3 5 - Year Group Financial Highlights Revenue Profit Before Tax Net Profit/(Loss) (RM’000) (RM’000) (RM’000) 201,072 199,962 203,520 193,462 159,163 43,482 27,352 6,683 1,401 5,683 31,119 19,141 2,851 (1,527) 3,509 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Shareholders’ Equity Total Assets Borrowings (RM’000) (RM’000) (RM’000) 270,493 285,278 287,403 285,876 287,207 335,059 364,059 343,193 363,266 343,363 34,817 47,618 35,605 50,133 33,173 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Debt/Equity Earnings/(Loss) Per Share Net Assets Per Share (%) (sen) (RM) 23.90 27.62 19.41 27.07 19.55 21.43 13.18 1.56 (0.70) 1.61 1.86 1.96 1.32 1.31 1.32 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 RM’000 2016 2017 2018 2019 2020 RM’000 RM’000 RM’000 RM’000 RM’000 Revenue 201,072 199,962 203,520 193,462 159,163 Profit Before tax 43,482 27,352 6,683 1,401 5,683 net Profit/(Loss) 31,119 19,141 2,851 (1,527) 3,509 Shareholders’ Equity 270,493 285,278 287,403 285,876 287,207 Total Assets 335,059 364,059 343,193 363,266 343,363 Borrowings 34,817 47,618 35,605 50,133 33,173 Debt/Equity (%) 23.90 27.62 19.41 27.07 19.55 Earnings per Share (sen) 21.43 13.18 1.56 (0.70) 1.61 Net Assets per Share 1.86 1.96 1.32 1.31 1.32 4 United U-Li Corporation Berhad Profile of Directors TAN SRI DATO’ SERI UTAMA HAJI ISMAIL BIN HAJI OMAR InDePenDent non-exeCutIve DIreCtor I CHAIRMAN Tan Sri Dato’ Seri Utama Haji Ismail Bin Haji Omar, 67 years old and a Malaysian male, was appointed to the Board and as a member of the Audit and risk Management Committee on 1st August 2018. He was appointed as Chairman of the Board and Chairman of the nomination and remuneration Committee on 28th February 2019. He holds a Bachelor of Law (Hons) LL.B, International Islamic university of Malaysia. He started his career as an Investigationo fficer in the Criminal Investigation Department (CID) of rthe oyal Malaysian Police Force. For the first twenty five years of his career, he was assigned to various police departments in several States in the country. Apart from criminal investigation, he also served as an Investigator in the traffic Department, as Police Prosecutor in the magistrate courts, as an Administrator and Area Inspector and as Investigator in the Disciplinary branch of the Federal Police Headquarters in Bukit Aman. In 1992, he was promoted to the rank of Deputy Superintendant of Police. He continued to serve at the Federal Police Headquarters in the Criminal Department, Commercial Department and narcotics Department. In 2005, with the rank of Deputy Commissioner of Police, he was tasked to head the Selangor Police Contingent as the Chief Police officer of the State. Having successfully served in Selangor, he was further promoted as Director of Management, with the rank of Commissioner at the Federal Police Headquarters in Bukit Aman and subsequently promoted as the Deputy Inspector General of Police in 2007. In September 2010, the Yang Di Pertuan Agong affirmed him as the Inspector General of Police and he successfully completed his term of service in May 2013. After his brilliant career, he was again appointed by His Majesty to be the Malaysian Ambassador for France from 2013 to 2015. He is also a Member of the Malaysia Anti-Corruption Advisory Board (ACAB). He does not have any family relationship with any Director and/or any major shareholder of the Group and has no direct interest of share in ULC. He has not been convicted of any offences other than traffic offences – if any – within the past five years and has not been imposed of any public sanction or penalty by the relevant regulatory bodies during the financial year. He attended all Board meetings held by the Company during the financial year ended 31st December 2020. TAN SRI DATO’ WIRA LEE YOON WAH Group Managing Director I CHIeF exeCutIve Officer Tan Sri Dato’ Wira Lee Yoon Wah, a Malaysian male aged 61, was appointed to the Board on 21st February 2002. He completed his secondary education in 1975 and is one of the founders of the uLC Group. He has more than 20 years experience in the electrical industry. Presently, he is in charge of the overall management and growth of the Group. He is credited for charting the growth of the Group since its inception from a small operation to the industrial concern that it is today. As the driving force behind the Group’s growth, he is also responsible for the overall business development, strategic planning as well as the business and corporate development of the Group. He sits on the Board of all the subsidiaries of the Group. He is the brother of Dato’ Lee Yoon Kong – a major shareholder and Director of the Company – and has a direct interest of 6,492,772 shares and an indirect interest of 81,000,000 shares in uLC. He has not been convicted of any offences other than traffic offences – if any – within the past five years and has not been imposed of any public sanction or penalty by the relevant regulatory bodies during the financial year.