Umland 2010 English Bursa
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COVER RATIONALE Through the years, UMLand has remained focused on its vision as a developer of distinction through the strengthening of our resources and improvement of our craft. The 2010 Annual Report’s theme shows the Group’s continued commitment, determination and passion for excellence. With the spirit of teamwork and perseverance that unites us, we continue our mission to deliver long term value to our stakeholders, customers and shareholders, as we are…‘LEAPING FORWARD’. CONTENTS 4 Corporate Profi le 6 Corporate Information 10 Chairman’s Message 14 Five-Year Group Financial Highlights 16 Financial Calendar 17 Group Corporate Structure 20 Board of Directors 22 Profi le of Directors 29 Management Team 36 Operations Review 46 Corporate Responsibility 48 Corporate Calendar 2010 60 Corporate Governance Statement 69 Statement on Internal Control 72 Audit Committee Report 75 Additional Compliance Information 81 Financial Statements 159 List of Properties 162 Analysis of Shareholdings 165 Notice of 50th Annual General Meeting 170 Statement Accompanying Notice of 50th Annual General Meeting Form of Proxy VISION To be a property developer of distinction, creating MISSION quality lifestyles To develop a brand and communities that represents quality and innovation which creates value and is the preferred choice SHARED VALUES • Integrity • Customer driven • Profi table • Excellence • Rewarding • Team that works • Progressive UNITED MALAYAN LAND BHD (4131-M) 4 CORPORATE PROFILE UNITED MALAYAN LAND BHD (4131-M) 5 United Malayan Land Bhd (UMLand) was incorporated in 1961 and listed on the Main Board of Bursa Malaysia Securities Berhad in 1969. The Group is principally involved in property development. Guided by a dynamic Board of Directors under the leadership of YABhg Tun Musa Hitam, UMLand’s Board of Directors comprises seven members, four of whom are independent. With a proven track record as a property developer of distinction in both mixed development townships and high- end niche developments, the Group’s growth strategy is to build on its solid foundation by enhancing the value of its Township Division and expanding its Niche Division. The Township Division has three integrated township developments located in high growth areas of Malaysia. The townships of Bandar Seri Alam and Taman Seri Austin are strategically located within Iskandar Malaysia, Johor whilst Bandar Seri Putra is situated in Selangor. The Niche Division has to date completed three high-end residential serviced apartments and condominiums – Seri Bukit Ceylon at Jalan Bukit Ceylon, Suasana Sentral Loft at KL Sentral and Suasana Bangsar in the suburb of Bangsar. The Division is now developing 310-unit residential serviced apartments located in Bukit Ceylon within KL city centre known as Suasana Bukit Ceylon and is on course to launch three new niche projects within the vicinity of KLCC, Johor Bahru CBD and Nusajaya, Iskandar Malaysia. As at 31 December 2010, UMLand’s paid up share capital is RM241,705,233, comprising 241,705,233 ordinary shares of RM1.00 each. The Group’s shareholders’ fund is RM878.53 million and its net assets per ordinary share is RM3.64. UNITED MALAYAN LAND BHD (4131-M) 6 CORPORATE INFORMATION BOARD OF DIRECTORS NOMINATION COMMITTEE AUDITORS Tun Musa Hitam Datuk Syed Ahmad Khalid PricewaterhouseCoopers Chairman Syed Mohammed (Chairman) Chartered Accountants Independent Non-Executive Director Datuk Nur Jazlan Tan Sri Mohamed Level 10, 1 Sentral, Jalan Travers Syed Azmin Mohd Nursin Kuala Lumpur Sentral Dato’ Ng Eng Tee @ Syed Nor P O Box 10192 Deputy Chairman 50706 Kuala Lumpur Non-Independent Executive Director RISK COMMITTEE Syed Azmin Mohd Nursin PRINCIPAL BANKERS Datuk Syed Ahmad Khalid @ Syed Nor (Chairman) OCBC Bank (Malaysia) Berhad Syed Mohammed Dato’ Ng Eng Tee Alliance Bank Malaysia Berhad Independent Non-Executive Director Pakhruddin Sulaiman Malayan Banking Berhad CIMB Bank Berhad Datuk Nur Jazlan Tan Sri Mohamed OPTION COMMITTEE Kuwait Finance House (Malaysia) Berhad Independent Non-Executive Director Syed Azmin Mohd Nursin AmBank Berhad @ Syed Nor (Chairman) Syed Azmin Mohd Nursin Dato’ Ng Eng Tee SHARE REGISTRAR @ Syed Nor Pee Tong Lim Securities Services (Holdings) Sdn. Bhd. Non-Independent Non-Executive Director Level 7, Menara Milenium SENIOR MANAGEMENT Jalan Damanlela Ng Eng Soon Dato’ Ng Eng Tee Pusat Bandar Damansara Non-Independent Non-Executive Director Deputy Chairman / Executive Director Damansara Heights 50490 Kuala Lumpur Pakhruddin Sulaiman Pee Tong Lim Tel No : 603-2084 9000 Independent Non-Executive Director Group Chief Executive Offi cer Fax No : 603-2094 9940 AUDIT COMMITTEE Zulkifl y Garib STOCK EXCHANGE LISTING Datuk Syed Ahmad Khalid Director of Operations Main Market, Bursa Malaysia Syed Mohammed (Chairman) Securities Berhad Datuk Nur Jazlan Tan Sri Mohamed COMPANY SECRETARY Stock Name : UMLand Pakhruddin Sulaiman Zuraidah Mohd Yusoff Stock Code : 4561 (MAICSA 7001552) EXECUTIVE COMMITTEE Tun Musa Hitam (Chairman) REGISTERED OFFICE Dato’ Ng Eng Tee Suite 1.1, 1st Floor Syed Azmin Mohd Nursin Kompleks Antarabangsa @ Syed Nor Jalan Sultan Ismail 50250 Kuala Lumpur TENDER BOARD COMMITTEE Tel No : 603-2142 1611 Dato’ Ng Eng Tee (Chairman) Fax No : 603-2142 1826 (Corporate) Syed Azmin Mohd Nursin 603-2141 4867 (Secretarial) @ Syed Nor www.umland.com.my Datuk Syed Ahmad Khalid Syed Mohammed REMUNERATION COMMITTEE Datuk Syed Ahmad Khalid Syed Mohammed (Chairman) Datuk Nur Jazlan Tan Sri Mohamed Syed Azmin Mohd Nursin @ Syed Nor UNITED MALAYAN LAND BHD (4131-M) 7 UNITED MALAYAN LAND BHD (4131-M) Our commitment and dedication to excellence differentiates us from others. UNITED MALAYAN LAND BHD (4131-M) 11 CHAIRMAN’S MESSAGE On behalf of the Board of Directors (“Board”), I am pleased to present the Annual Report and Financial Statements for United Malayan Land Bhd (“UMLand” or “the Group”) for the fi nancial year ended 31 December 2010 (“FY2010”). OPERATING ENVIRONMENT In 2010 the global economic environment started showing 2009. This was fueled by the steady year-long growth in signs of recovery from the slowdown of the previous consumer demand, an unexpected and welcome boon to years. The major economies which have been hit by the all sectors. This steady recovery for the Malaysian economy recession began to turn around. The global economic is expected to continue into 2011 with BNM forecasting mood was moving into positive territory gradually as GDP growth of between 5% to 6%. reflected by some positive economic indicators, such as the decline in unemployment rate in USA from 9.7% in On a sectoral basis, although the Malaysian construction March 2010 to 9.0% in January 2011; and an increased sector registered a lower 5.2% growth for the year 2010 gross domestic product (“GDP”) growth in China of 10.3% compared to 5.8% for 2009, an impressive final quarter for 2010 compared to 9.2% recorded for 2009. Despite this rebound was recorded, posting a 5.6% growth compared silver lining, most economists cautioned that there are still to 2.8% growth in the preceding quarter. many uncertainties on the road ahead. It is still too early to celebrate. I am pleased to note that UMLand joined the wave of domestic economic optimism by reporting encouraging For Malaysia 2010 has been a good year with the economy results for FY2010. UMLand’s strong performance can be recovering quite significantly from the year before. Figures attributed to the strong economic recovery and support released by Bank Negara Malaysia (“BNM”) showed that from all our stakeholders namely customers, bankers, the Malaysian economy rebounded strongly with a GDP authorities, investors and employees. As a result, both our growth of 7.2% compared to a contraction of -1.7% in niche and township divisions did well. UNITED MALAYAN LAND BHD (4131-M) 12 CHAIRMAN’S MESSAGE Upholding our commitment to reward our loyal shareholders, a net dividend of 7.5 sen per share was proposed for FY2010. DIVIDEND During the year, a tax-exempt interim dividend of 2.50 sen per ordinary share was paid in FY2010. In addition, a fi nal dividend of 5.15 sen per ordinary share, consisting of gross dividend of 0.60 sen per ordinary share, less tax, and a single-tier dividend of 4.55 sen per ordinary share, has been proposed by the directors which will be subject to shareholders’ approval in the forthcoming annual general meeting. If the proposed fi nal dividend is approved, the total gross dividend will be 7.65 sen per ordinary share, bringing the total net dividend for FY2010 to 7.50 sen per ordinary share. This net dividend is consistent with that of the previous fi nancial year. HIGHLIGHTS Marking a more satisfactory year for UMLand were several corporate milestones and developments in 2010. UMLand increased its visibility and credibility in the Klang Revenues climbed 52% to Valley as its niche division witnessed the completion of the RM316.9 million from last Suasana Bangsar development and the launch of its much- year, contributed by the anticipated Suasana Bukit Ceylon in the second half of 2010. successful performance of The Group’s commitment to ongoing value creation for its customers also continued unabated. Down south in Iskandar our Niche and Township Malaysia, the Group’s fl agship township development, Divisions. Bandar Seri Alam has in a strategic move been transformed into a “City of Knowledge”. To earn this recognition, the Group had brought into Seri Alam, the Masterskill University College of Health Sciences, Universiti Teknologi Mara, Universiti Kuala Lumpur, Mara Junior Science College and the Malaysian Art School. These institutions together with the existing Japanese International School, Nam Heng FINANCIAL PERFORMANCE Chinese Primary School and fi ve other government primary In the year under review, the Group’s revenues recorded a and secondary schools, the proposed HELP University and 52% surge from RM208.5 million for the fi nancial year ended the Raffl es International College, will truly transform and 31 December 2009 (“FY2009”) to RM316.9 million for FY2010.