OCR-WC) Holdings 178 Analysis of Warrant D (OCR-WD) Holdings 180 Notice of Annual General Meeting 184 Administrative Guide
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ANNUAL REPORT OCR GROUP BERHAD [ 199701025005 (4 4 0503-K) ] OCR GROUP BERHAD [ 199701025005 (440503-K) ] THE MATE DAMANSARA JAYA ANN U AL REPO R T 2020 YOLO SIGNATURE SUITES PRIYA KUANTAN ISOLA OCR GROUP BERHAD KLCC [ 199701025005 (440503-K) ] A-3A-01, Block Allamanda, 10 Boulevard Lebuhraya SPRINT, PJU6A 47400 Petaling Jaya, Selangor Tel : +603 7710 1000 Fax : +603 7729 0300 www.ocrbhd.com 2020 OUR VISION IT’S WHERE YOU’LL WANT TO BE OUR MISSION PRODUCT SERVICE INTERNAL EXTERNAL DEVELOP AND CONSTRUCT DELIVER HIGH QUALITY PROVIDE CONDUCIVE CREATE SUSTAINABLE BEST VALUED PROPERTIES SERVICES AND EXPERIENCES ENVIRONMENT THAT PROMOTE VALUES FOR OUR THAT FULFILL CUSTOMERS’ AS THE MARK OF OCR CONTINUOUS GROWTH & STAKEHOLDERS’ NEEDS. EXCELLENCE. DEVELOPMENT FOR OUR INTEREST. PEOPLE. 5 CORE VALUES INITIATIVE WE ALWAYS GO EXTRA MILES TO ACHIEVE BEYOND OUR TARGETS AND EXPECTATIONS, WITHIN AND OUTSIDE THE ORGANIZATION. WE PURSUE EXCELLENCE BY SEEING POSSIBILITIES, INSTEAD OF LIMITATIONS. INNOVATION AS A PROGRESSIVE ORGANIZATION, WE ARE COMMITTED TO CONSTANTLY EVOLVE, IMPROVE AND EMBRACE CHANGE TO UPSCALE OUR PRODUCTS AND SERVICES. WE STRIVE TO BE DIFFERENT THROUGH CREATIVITIES AND NEW IDEAS TO STAY COMPETITIVE IN THE MARKET. INTEGRITY AS A CORPORATE CITIZEN, WE REMAIN TRUE TO OUR FOUNDING VALUES OF ETHICS AND INTEGRITY; ENSURING COMPLIANCE, PROFESSIONALISM AND TAKE RESPONSIBILITY IN EVERY DECISION AND ACTION. PASSION WE BELIEVE IN POSITIVITY AND THAT OUR STRENGTH LIES IN OUR PEOPLE. WE LOVE OUR PEOPLE AND ENJOY OUR WORKS. WE ALWAYS STAY OPTIMISTIC IN ADVERSITY AND EMERGE STRONGER THAN BEFORE. COLLABORATION WE BELIEVE IN THE POWER OF WORKING TOGETHER. WE ADDRESS COLLABORATION WITHIN OUR TEAM & BUSINESS PARTNERS; TO DELIVER GREATER SUCCESS THROUGH SHARED GOALS AND MUTUAL SUPPORT. 02 Corporate Information 03 Corporate Structure CONTENTS 05 Board of Directors 09 Key Senior Management 13 Chairman’s Statement 16 Five Years Financial Highlights 19 Management Discussion and Analysis 27 Sustainability Statement 35 Corporate Governance Overview Statement 49 Additional Compliance Information Disclosures 52 Audit Committee Report 55 Statement on Risk Management and Internal Control 59 Statement of Directors’ Responsibilities in Relation to the Financial Statements 60 Financial Statements 171 List of Properties 172 Analysis of Shareholdings 174 Analysis of Irredeemable Convertible Preference Shareholdings 176 Analysis of Warrant C (OCR-WC) Holdings 178 Analysis of Warrant D (OCR-WD) Holdings 180 Notice of Annual General Meeting 184 Administrative Guide Proxy Form 2 OCR GROUP BERHAD ANNUAL REPORT 2020 CORPORATE INFORMATION BOARD OF DIRECTORS REGISTERED OFFICE Chairman/Independent Non-Executive Director Level 5, Block B, Dataran PHB YAM Tunku Azudinshah Ibni Tunku Annuar Saujana Resort, Section U2 40150 Shah Alam Group Managing Director Selangor, Malaysia Ong Kah Hoe Tel : +6 03 7890 0638 Fax : +6 03 7890 1032 Independent Non-Executive Directors Hj. Abdullah Bin Abdul Rahman CORPORATE OFFICE Admiral Tan Sri Dato’ Seri Panglima Ahmad Kamarulzaman Hj Ahmad Badaruddin (Retired) A-3A-01, Block Allamanda Chong Min Shih 10 Boulevard Lebuhraya Sprint, PJU 6A Julian Koh Lu Ern 47400 Petaling Jaya Dato’ Haji Mohd Fakrunizam Bin Ibrahim Selangor, Malaysia Tel : +6 03 7710 1000 Non-Independent Non-Executive Director Fax : +6 03 7729 0300 Lee Chin Cheh SHARE REGISTRAR AUDIT COMMITTEE Shareworks Sdn Bhd Julian Koh Lu Ern (Chairman) No. 2-1, Jalan Sri Hartamas 8 YAM Tunku Azudinshah Ibni Tunku Annuar Sri Hartamas Hj. Abdullah Bin Abdul Rahman 50480 Kuala Lumpur Wilayah Persekutuan, Malaysia Tel : +6 03 6201 1120 NOMINATING COMMITTEE Fax : +6 03 6201 3121 YAM Tunku Azudinshah Ibni Tunku Annuar (Chairman) Hj. Abdullah Bin Abdul Rahman AUDITORS Lee Chin Cheh Baker Tilly Monteiro Heng PLT Chartered Accountants REMUNERATION COMMITTEE Baker Tilly Tower Level 10, Tower 1, Avenue 5 YAM Tunku Azudinshah Ibni Tunku Annuar (Chairman) Bangsar South City Ong Kah Hoe 59200 Kuala Lumpur, Malaysia Chong Min Shih Tel : +6 03 2297 1000 Fax : +6 03 2282 9980 OPTION COMMITTEE PRINCIPAL BANKERS Ong Kah Hoe (Chairman) Admiral Tan Sri Dato’ Seri Panglima Ahmad United Overseas Bank (Malaysia) Berhad Kamarulzaman Hj Ahmad Badaruddin (Retired) AmBank (M) Berhad Wong Jyh Juan STOCK EXCHANGE LISTING RISK MANAGEMENT COMMITTEE Main Market – Construction Ong Kah Hoe (Chairman) Bursa Malaysia Securities Berhad Lee Chin Cheh Stock Name and Stock Code: Admiral Tan Sri Dato’ Seri Panglima Ahmad - OCR (7071) Kamarulzaman Hj Ahmad Badaruddin (Retired) - OCR-PA (7071PA) - OCR-WC (7071WC) - OCR-WD (7071WD) COMPANY SECRETARY Corporate website : www.ocrbhd.com Tan Tong Lang (MAICSA 7045482) Corporate email : [email protected] (SSM PC No. 201908002253) OCR GROUP BERHAD 3 ANNUAL REPORT 2020 CORPORATE STRUCTURE OCR Group Berhad [199701025005 (440503-K)] Wholly-Owned Subsidiaries of OCR Group Berhad: Wholly-Owned Subsidiary of Serba Simfoni Sdn. Bhd.: 1) OCR Commerce Sdn. Bhd. (f.k.a. O&C Commerce Sdn. Bhd.) 1) Fotopop (M) Sdn. Bhd. [199001000272 (191830-X)] (1) [201101033614 (961749-X)] • Property investment. • Trading and provision of construction materials. 2) OCR Construction Sdn. Bhd. (f.k.a. O&C Construction Sdn. Bhd.) 80% Owned Subsidiary of Grand Superland Sdn. Bhd.: [201401042973 (1119151-W)] • Construction of residential and commercial properties and property development. 1) Visi Anggun Properties Sdn. Bhd. [201601029205 (1200146-T)] • Construction of residential and commercial properties. 3) Tristar City Sdn. Bhd. [201501022066 (1147394-P)] • Property development and property investment. 4) Grand Superland Sdn. Bhd. [201501022856 (1148185-D)] 70% Owned Subsidiaries of OCR Group Berhad: • Construction of residential and commercial properties and property development. 1) OCR Development (Kuantan) Sdn. Bhd. (f.k.a. O&C Development (Kuantan) Sdn. Bhd.) [201501016754 (1142088-K)] 5) Sunrise Meadow Sdn. Bhd. [201601014228 (1185159-H)] • Property development and property investment. • Property development and property investment. 2) Pangkal Teguh Sdn. Bhd. [201101012009 (940148-A)] 6) Kirana Masyhur Sdn. Bhd. [201601037701 (1208642-U)] • Construction of residential and commercial properties, project • Investment holding and project management consultation. management and real estate. 7) YP OCR Development Sdn. Bhd. (f.k.a. YP O&C Development Sdn. Bhd.) 3) Kita Mampan Sdn. Bhd. [201301028974 (1058804-X)] [201601038462 (1209403-K)] • Construction of residential and commercial properties. • Property development. 8) Fajar Simfoni Sdn. Bhd. [201801001511 (1263524-X)] • Engage in the business of investment holding, export and 50.01% Owned Subsidiary of OCR Group Berhad: import of goods and real property management. 9) Junjung Simfoni Sdn. Bhd. [201801004687 (1266701-X)] 1) O&C Makok Isola Sdn. Bhd. [201101009616 (937755-H)] • Engage in the business of investment holding, export and • Property development. import of goods and real property management. 10) OCR Land Development Sdn. Bhd. [201801012568 (1274584-H)] • Property development. 50.0005% Owned Subsidiary of Kirana Masyhur Sdn. Bhd.: 11) Amazing Symphony Sdn. Bhd. [201801012530 (1274546-D)] • Construction of residential properties. 1) Mampan Esa (Melaka) Sdn. Bhd. [201301033683 (1063513-P)] • Property and facilities management. 49% Owned Associate through Kita Mampan Sdn. Bhd.: 90% Owned Subsidiary of OCR Group Berhad: 1) AES Builders Sdn. Bhd. [199201014866 (246369-T)] • Construction of residential and commercial properties. 1) OCR Properties (Kuantan) Sdn. Bhd. (f.k.a. O&C Properties (Kuantan) Sdn. Bhd.) [201701011996 (1226161-P)] • Property development and property investment. 40% Owned Associate through Kirana Masyhur Sdn. Bhd.: 1) Landasan Surimas Sdn. Bhd. [201001038435 (922359-A)] (2) Wholly-Owned Subsidiaries of Grand Superland Sdn. Bhd.: • Investment holding, project management consultation and construction. 1) Greatway Capital Sdn. Bhd. [201701005629 (1219794-H)] • Construction of residential and commercial properties. 70% Owned Joint Venture through Landasan Surimas Sdn. Bhd.: 2) Serba Simfoni Sdn. Bhd. [201801000842 (1262855-H)] • Engage in the business of investment holding, export and (3) import of goods and real property management. 1) Taraf Raya Sdn. Bhd. [201001017703 (901408-K)] • Project management consultation and construction. Note : (1) Fotopop (M) Sdn. Bhd. was acquired on 6 May 2020. (2) Landasan Surimas Sdn. Bhd. was acquired on 17 March 2020. (3) Taraf Raya Sdn. Bhd. was acquired on 4 August 2020. 4 OCR GROUP BERHAD ANNUAL REPORT 2020 ISOLAIS KLCCKLCC Luxury Living EXPERIENCE THE FINEST KUALA LUMPUR HAS TO OFFER FROM A PLACE THAT PERFECTLY REFLECTS YOUR STANDARD AND AMBITIONS OCR GROUP BERHAD 5 ANNUAL REPORT 2020 BOARD OF DIRECTORS YAM Tunku Azudinshah Ibni Tunku Annuar was appointed to the Board of Directors (“Board”) as an Independent Non- Executive Director cum Chairman of the Board on 14 August 2015. He is the Chairman of Remuneration Committee and Nominating Committee as well as member of the Audit Committee of OCR. YAM Tunku Azudinshah started his professional career in advertising with the International Agency AP: Foote, Cone and Belding where he managed numerous multinational accounts. He subsequently co-founded PRS Corporate Images and Orbitel.net, media companies and produced television programmes focusing on the “Halal Industry”. Amongst its clients were Nestle, Sime Darby, Menteri Besar Inc (Terengganu), Formis and Inti Group. Premised on his YAM TUNKU AZUDINSHAH experience with media and communications, YAM