DELIVERING VALUES Annual Report 2009 Cover Rationale Sunway City Berhad (“Suncity”) Is a Living Vision of a Wise Leader, a Persevering Dreamer
Total Page:16
File Type:pdf, Size:1020Kb
(87564-X) DELIVERING VALUES Annual Report 2009 Cover Rationale Sunway City Berhad (“SunCity”) is a living vision of a wise leader, a persevering dreamer. The display of the Group’s 5 divisions symbolises SunCity’s success of delivering values to its stakeholders. Vision A premier property company focusing on quality real estate development and investing in properties with attractive yields that augment its township development to generate excellent returns that maximise shareholders’ value. Sunway City Berhad Group of Companies shall achieve the vision through the realisation of the following goals: • Exceeding customers’ needs with superior and innovative products and services. • Building and developing a culture and environment that promote excellence and dedication in its stakeholders. • Utilising technology to enhance the Group’s competitive advantage in the marketplace. Mission To create a conducive environment for living, working and leisure by transforming the existing landscape and/or landform into well-designed and visually stimulating structures that will greatly enhance its value. Announcement Of Quarterly Results 25 November 2008 Announcement of the unaudited consolidated results for the quarter Financial Calendar ended 30 September 2008 24 February 2009 Announcement of the unaudited Annual Report & consolidated results for the quarter ended 31 December 2008 Annual General Meetings 28 May 2009 1 June 2010 Announcement of the unaudited Date of notice of the 26th & 27th consolidated results for the quarter Annual General Meetings and date of ended 31 March 2009 issuance of the Annual Report 2009 24 August 2009 25 June 2010 Announcement of the unaudited Date of the 26th & 27th Annual consolidated results for the quarter General Meetings ended 30 June 2009 30 November 2009 Announcement of the unaudited consolidated results for the quarter ended 30 September 2009 25 February 2010 Announcement of the unaudited consolidated results for the quarter ended 31 December 2009 Results Highlight Revenue (RM) Profit Before Tax2 (RM) Interim Dividend 1.6 bil 1.3 bil 1.1 bil 2 October 2009 Announcement of the notice of 0.6 bil entitlement and payment of 8 sen Interim Dividend less 25% income tax 80% for the financial period ended 31 December 2009 22% 20091 2008 20091 2008 22 October 2009 1 The financial performance for the financial period ended 31 December 2009 Date of entitlement to covers an 18-month period. 8 sen Interim Dividend 2 Including assets revaluation surplus. less 25% income tax for the financial period ended 31 December 2009 20 November 2009 Date of payment of 8 sen Interim Dividend less 25% income tax for the financial period ended 31 December 2009 Table of Contents 2 The award-winning shopping mall, Sunway Pyramid continues to Sunway Sunway City Berhad Annual Report 2009 be the landmark of Sunway Integrated Resort City. 3 Sunway City Corporate With Integrity 120 Corporate Profile 4 Corporate Governance Statement 122 SunCity in the Limelight 8 Terms of Reference of Executive Group Corporate Structure 10 Committee of the Board 129 Corporate Information 12 Terms of Reference of Nomination Committee 132 Corporate Philosophy 14 Sunway Sunway City Berhad Annual Report 2009 Chairman’s Statement 16 Terms of Reference of Calendar of Significant Events 22 Remuneration Committee 133 Awards and Accolades 28 Terms of Reference of Employees’ Share Option Scheme Committee 134 Performance Review 36 Terms of Reference of Risk 5-Year Financial Highlights 38 Management Committee 136 Segmental Performance 39 Audit Committee Report 137 Chief Financial Officer’s Review 40 Statement on Internal Control 142 Value Added Statement 46 Enterprise Risk Management 144 Share Performance 47 Additional Compliance Information 148 Investor Relations 150 Exemplary Leadership 48 Profile of Board of Directors 50 Financials 152 Profile of Management Team 56 Directors’ Report 154 Statement by Directors 162 Key Business Segments 62 Statutory Declaration 162 Property Development 66 Independent Auditors’ Report 163 Property Investment 74 Income Statements 165 Hospitality 78 Balance Sheets 166 Leisure 82 Statements of Changes in Equity 168 Healthcare 86 Cash Flow Statements 171 Notes to the Financial Statements 175 Corporate Responsibility 90 List of Properties 280 Marketplace 94 Recurrent Related Party Transactions 288 Workplace 98 Environment 108 Shareholdings’ Information Community 114 Directors’ Interests in Shares, Options over Ordinary Shares and Warrants 289 Analysis of Shareholdings 290 Analysis of Warrantholdings 292 Annual General Meetings Notice of 26th Annual General Meeting 294 Notice of 27th Annual General Meeting 296 Form of Proxy for 26th Annual General Meeting Form of Proxy for 27th Annual General Meeting Sunway City Berhad (“SunCity”) is a It also reflects the Group’s commitment dynamic and integrated Malaysian to make livability a top priority as the property conglomerate and consists of township is equipped with the finest in both Property Development and retail and commercial; hospitality; leisure Property Investment divisions. As a result, and entertainment; healthcare and this has enabled the Group to enjoy the education facilities. Corporate ‘Best of Both Worlds’ – a high-growth Property Development division and a The internationally-acclaimed Sunway stable base of income from high-yielding Integrated Resort City will soon be Profile investment properties. further complemented by the development of SunCity’s next iconic SunCity was incorporated as a private attraction, the RM5.2 billion Sunway limited company in Malaysia on South Quay project which will be an 13 July 1982 as Sri Jasa Sdn Bhd and international lakeside metropolis. subsequently changed its name to Sri Jasa Development Corporation Sdn Bhd on 1 December 1986 and Bandar Sunway High-Yielding Property Sdn Bhd on 25 July 1987. It was Investment Division converted to a public limited company SunCity’s Property Investment division on 24 July 1995 and assumed its present holds a truly diversified portfolio of name, Sunway City Berhad on 2 April quality retail and commercial, hospitality, 1996. SunCity’s successful listing on the leisure and entertainment, and Main Market of Bursa Malaysia (formerly healthcare properties establishing itself known as Main Board of Kuala Lumpur as an international-class investment and Stock Exchange) on 8 July 1996 is a commercial property player in the region. testament to its solid business Currently, it owns and manages a total management and aspiration to evolve net lettable areas (“NLA“) of 4.86 million even further as an integrated real estate square feet of commercial properties conglomerate. which include Sunway Pyramid, Sunway Carnival Shopping Mall, Menara Sunway, Sunway Tower 2, Sunway Giza Specialty High-Growth Property Centre, Monash University Sunway Development Division Campus and Sunway University College. As a property developer, the Group has vast experience in developing innovative and quality residential and commercial Hospitality Division properties. In its quest to create a ‘better The Hospitality division owns and life’ for communities in Malaysia and manages a group of hotels and resorts overseas, SunCity constantly takes steps encompassing 3 brand names - Sunway to deliver products and services of Hotels & Resorts, Allson Hotels & Resorts unrivalled quality and value for its and The Banjaran Hotsprings Retreat; customers. This has helped to solidify the comprising over 3,400 guestrooms. Its Group’s status as a leading community international portfolio of hospitality master developer. products and services ranges from a luxury collection and spa retreat, 5-star The Property Development division has hotels with world-class convention, delivered over 17,000 properties with a meeting and exhibition facilities, gross development value (“GDV”) of RM9 luxurious villas, serviced townhouses and billion. As at 30 April 2010, the Group has suites, 4 and 3-star hotels, to technical an unlaunched landbank of 1,458 acres services, travel services, franchise 4 with a GDV of RM12.7 billion. management as well as hotel marketing affiliation services. The crowning jewel for SunCity is the RM6.9 billion Sunway Integrated Resort City, popularly known as Bandar Sunway. Leisure Division Transformed from 800 acres of wasteland, SunCity’s Leisure division owns and the pristine, well-landscaped resort manages 2 award-winning theme parks, township expresses the unique ‘Resort namely the Sunway Lagoon and Lost Living within the City’ concept. World of Tambun, Ipoh as well as other businesses like Sunway Healthy Lifestyle, Sunway Sunway City Berhad Annual Report 2009 5 Sunway Sunway City Berhad Annual Report 2009 The glowing domes of Sunway Resort Hotel & Spa. Sunway International Vacation Club and Malaysia (4As) and the BrandLaureate Sunway Travel. Sunway Lagoon is an iconic Conglomerate Awards by Asia Pacific multi-park attraction in Malaysia. Lost Brands Foundation. Winning both the World of Tambun is a comprehensive awards for 2 consecutive years affirms theme park that is situated at the edge of SunCity’s success in becoming a brand limestone hills and enclaves. with high equity. SunCity’s excellent brand performance is Healthcare Division further reaffirmed as it won the Silver Sunway Medical Centre (“SunMed”) adds to Award in the property category awarded the Group’s position as a provider of quality at the inaugural Putra Brand Awards healthcare services under the Healthcare 2010. The Putra Brand Awards are the division. SunMed is an