Annual Report 2020 We Are
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Gearing Up For Future Growth ANNUAL REPORT 2020 WE ARE GEARING UP FOR FUTURE GROWTH Puncak Niaga Holdings Berhad remains committed to strengthening our business fundamentals and reinforcing our business resilience. Amidst a hugely challenging operating environment attributed to PLANTATION the unprecedented COVID-19 pandemic and a new normal post COVID-19, we are taking steps to solidify our position within our core business segments. In our third full year of operations, our Plantation segment as managed by Danum Sinar has grown Our growth strategies continue to be supported by a from strength to strength to record sustainable dynamic organisational infrastructure as we remain growth and robust performance focused on project execution and delivery. We have identified key drivers to ensure the Group’s long-term sustainable growth into the future. With firm foundations in place, we will redefine our REVENUE Increased total crop competitive edge and remain on course to achieve RM27.083 production by our vision and mission for future growth. MILLION 9% Our mature areas Total developed increased by area increased by 19.6% to 6.9% to 9,551 12,041 HECTARES HECTARES PUNCAK NIAGA ENVIRONMENTAL ENGINEERING CONCESSION AND FACILITIES AND CONSTRUCTION MANAGEMENT Despite the COVID-19 pandemic and the Our Concession and Facilities Management Movement Control Order, we were able to segment as operated by TRIplc Berhad Group of successfully implement tighter control mechanisms Companies holds two concession agreements for and ensured full HSE compliance at our Bunus the Universiti Teknologi MARA (“UiTM”) campus at Project and Kuantan Project sites Puncak Alam and is set for further growth in the healthcare and healthcare services industry REVENUE 2 ongoing projects at REVENUE 2 concession RM131.922 KUALA RM225.274 agreements at MILLION LUMPUR & MILLION UiTM KUANTAN PUNCAK ALAM BUNUS PROJECT BEGAN ASSET Sewage Conveyance MANAGEMENT KUANTAN PROJECT SERVICES for the UiTM System at 85.02% Network Pumping Puncak Alam Teaching Achieved all our KPIs completion as per our contractual Station at Hospital on 1 February 17.09% agreement for the completion, ahead of 2021 marking our entry Network Pumping into the healthcare target of Z1P2 16.55% and healthcare Stations at 97.3% services industry Concession completion PUNCAK NIAGA HOLDINGS BERHAD TABLE OF CONTENTS ABOUT US 04 Puncak Niaga Group Fact Sheet 05 About This Report OUR YEAR AT A GLANCE 06 Five-Year Group Performance 07 Five-Year Financial Highlights 08 Share Price Movement 09 Financial Calendar PG18 Chairman’s Letter To Shareholders OUR ORGANISATION’S D.N.A. 10 Corporate Profile 12 Corporate Information 15 Organisation Structure 16 Corporate Structure OUR STRATEGIC CONTEXT 18 Chairman’s Letter To Shareholders 26 Management Discussion And Analysis PG26 Management Discussion And Analysis HOW WE CREATE VALUE THROUGH SUSTAINABILITY 40 Scope & Reporting Frameworks 41 Sustainability Governance 41 Public Policy 42 Stakeholder Engagement 43 Materiality 44 Creating Economic Value 48 Environmental Value 53 Value To Our Employees 60 Value To Our Communities 62 Milestones PG40 Sustainability Statement 2 Annual Report 2020 VISION To Be The Leading Regional Integrated Water, Wastewater And Environmental Solutions Provider With Involvement In Concession Facilities Management Services, Plantation And Property Development Sectors MISSION OUR LEADERSHIP AND THEIR ROLES To meet the increasing challenges in the demand for water, wastewater and 66 Board Of Directors’ Profile environmental engineering, facilities management services, property development, plantation and construction sector through the continuous implementation 74 Key Personnel Profile - Puncak Niaga Group of strategic planning, high quality standards, efficient services, human capital development, innovative technologies and operational systems To actively participate in local, regional and global business opportunities with HOW WE ARE GOVERNED linkages to the Company’s core activities 78 Corporate Governance Overview Statement To share experience and offer our expertise through Smart Business Partnerships, 94 Audit Committee Report Public Private Partnerships or other innovative business models in order to expand business growth 98 Additional Compliance Information 99 Statement On Risk Management And Internal Control VALUES 108 Corporate Disclosure Policy Our Company’s values, the PUNCAK Values, shape our organisational culture and 109 Corporate Sustainability Policy guide the way we run our business. They are integrated into our business processes 110 Corporate Social Responsibility Policy and our core values 111 Health, Safety And Environmental Policy At PUNCAK, we are and continuously seek to be: 112 Investor Relations Policy & Report 114 Quality Policy 115 Board Diversity Policy PASSIONATE 116 Diversity Policy about our business for sustainable performance 117 Statement On Directors’ Responsibility For P Preparation Of Financial Statements UNITED as one in our corporate responsibility strategy to align with our Vision To Be The Leading Regional Integrated Water, U Wastewater And Environmental Solutions Provider With OUR FINANCIAL NUMBERS Involvement In Concession Facilities Management Services, Plantation And Property Development Sectors 118 Approaching Our Financial Statements 120 Financial Statements NURTURE N our human capital towards an exemplary workforce OTHER INFORMATION CORPORATE GOVERNANCE 275 Analysis On Securities Of Company guides the way we run our business in an evolving global 279 List Of Properties C business environment 283 GRI G4 Content Index th 287 Notice of 24 Annual General Meeting ACCOUNTABLE 292 Statement Accompanying The Notice Of for all our actions and engagement process with our stakeholders 24th Annual General Meeting A • Proxy Form KNOWLEDGEABLE • Personal Data Notice in all aspects of our business operations and continue to K be the trusted and reliable service provider Annual Report 2020 3 PUNCAK NIAGA About Us Our Year At A Glance Our Organisation’s D.N.A. Our Strategic Context HOLDINGS BERHAD Puncak Niaga Group Fact Sheet 2020 KEY HIGHLIGHTS Number of Shares Issued Share Capital As at 31 December 2020 As at 31 December 2020 449,284,556 RM554,662,777 Revenue LIST OF CORPORATE MEMBERSHIPS RM384.344 Member since million 1. Malaysia South-South Association (“MASSA”) 1995 2. Federation of Public Listed Companies (“FPLC”) 1997 3. Malaysian Employers Federation (“MEF”) 1999 4. Malaysian Industry-Government Group for High 2001 Technology (“MIGHT”) Profit After Tax 5. Malaysian-German Chamber of Commerce and 2002 Industry (“MGCC”) RM3.097 6. Malaysian-French Chamber of Commerce and Industry 2002 million (“MFCCI”) 7. Malaysia-Russia Business Council 2002 8. British Malaysian Chamber of Commerce (“BMCC”) 2003 9. Malaysia-Japan Economic Association (“MAJECA”) 2003 10. Commonwealth Partnership for Technology 2003 Total Assets Management (“CPTM”) RM3,142.695 11. Institute of Marketing Malaysia (“IMM”) 2003 million 12. Singapore Water Association 2006 13. Malaysian Investors Relations Association (“MIRA”) 2008 14. Environmental Management & Research Association of 2009 Malaysia (“ENSEARCH”) Puncak Niaga was awarded the Gold 15. Arab-Malaysian Chamber of Commerce 2012 Award at the 16. EU-Malaysia Chamber of Commerce and Industry 2012 2020 Australasian 17. Institute of Corporate Directors Malaysia 2018 Reporting Awards on 24 June 2020 4 Annual Report 2020 How We Create Value Our Leadership and Through Sustainability Their Roles How We Are Governed Our Financial Numbers Other Information About This Report REPORTING FRAMEWORK, SCOPE AND BOUNDARIES This is Puncak Niaga Holdings Berhad’s (“Puncak Niaga” or “the Group”) Annual Report 2020 which presents the Group’s account of how we have created value in line with our business growth ambitions as well as stakeholder commitments for the financial year ended 31 December 2020. Puncak Niaga remains committed to upholding strong governance and ethical business as the robust foundations of our organisation. In line with this, our report aims to provide a transparent, balanced and comprehensive account and analysis of This report highlights key aspects of our strategy, performance and prospects in relation to material financial, economic, social, environmental and governance issues. Our sustainability performance our operating environment, challenges focuses on material issues that affect the long-term success of our business, relating encountered and our achievements for to any significant impacts we have on the economy, environment or social spheres the year as we maintained our efforts to within which we operate. generate and preserve value. It provides an account of the operationalisation of our Forward moving statements should be taken with a degree of caution as they are reliant on various events, risks, uncertainties and other factors beyond our control. strategy, risk management approach and These statements can be identified through the use of key words such as “believes”, mitigation actions taken. The report covers “intend”, “will”, “plans”, “outlook” and other similar words in conjunction with our core business segments of Environmental discussions on future operating or financial performance. In the coming years, we Engineering and Construction, Plantation and will be able to report with more comprehensive data and better assess our material focus areas. Concession and Facilities Management. This Annual Report is aimed at a broad audience of stakeholders, that include our