Annual Report 2020 ANNUAL REPORT 2020 Annual Report 2020
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[Registration No: 199401035205 (320888-T)] ● ANNUAL REPORT 2020 Annual Report 2020 Annual Report 2020 www.malton.com.my Malton Berhad [Registration No: 199401035205 (320888-T)] 19-0, Level 19, Pavilion Tower 75, Jalan Raja Chulan 50200 Kuala Lumpur, Malaysia Tel No. : 03-2088 2888 Fax No. : 03-2088 2999 VISION To be the leading lifestyle and innovative property developer in the region. MISSION To lead through innovative designs, concepts and products. To create enduring value to customers through quality and creative craftmanship, good master planning and service experience. To be responsive to market trends and lifestyle aspirations for the future. To deliver sustainable returns to shareholders. [Registration No: 199401035205 (320888-T)] Annual Report 2020 CONTENTS Corporate Information 3 Corporate Structure 4 Group Financial Highlights 5 Board of Directors 6 Chairman’s Statement 9 Management Discussion And Analysis 12 Sustainability Statement 21 Corporate Governance Overview Statement 29 Statement on Risk Management and Internal Control 37 Audit Committee Report 40 Financial Statements 45 Group Properties 156 Statement of Shareholders 160 Notice of Annual General Meeting 163 Proxy Form 2020 Annual Report :: CORPORATE 3 INFORMATION BOARD OF DIRECTORS Tan Sri Lim Siew Choon Puan Sri Tan Kewi Yong Non-Independent Non-Executive Chairman Executive Director Guido Paul Philip Joseph Ravelli Chua Thian Teck Deputy Chairman/ Executive Director Independent Non-Executive Director Hj Ahmad bin Hj Ismail, PJK Hong Lay Chuan Independent Non-Executive Director Executive Director Dato’ Siew Mun Wai Independent Non-Executive Director AUDIT COMMITTEE COMPANY SECRETARY PRINCIPAL BANKERS Guido Paul Philip Joseph Ravelli Hor Shiow Jei Affin Bank Berhad Chairman (MAICSA 7023954) Alliance Bank Malaysia Berhad (SSM Pc No. 202008003615) Al Rajhi Banking & Investment Corporation (Malaysia) Bhd Hj Ahmad bin Hj Ismail, PJK AmBank (M) Berhad Member REGISTERED OFFICE Bangkok Bank Berhad CIMB Bank Berhad Dato’ Siew Mun Wai 19-0, Level 19, Pavilion Tower Industrial and Commercial Bank of Member 75, Jalan Raja Chulan China (Malaysia) Berhad 50200 Kuala Lumpur Malayan Banking Berhad Tel 603-2088 2888 RHB Bank Berhad NOMINATING COMMITTEE Fax 603-2088 2999 United Overseas Bank (Malaysia) Bhd Guido Paul Philip Joseph Ravelli Chairman SHARE REGISTRAR STOCK EXCHANGE LISTING Hj Ahmad bin Hj Ismail, PJK Shareworks Sdn Bhd Main Market of Bursa Malaysia Member No. 2-1, Jalan Sri Hartamas 8 Securities Berhad Sri Hartamas 50480 Kuala Lumpur REMUNERATION COMMITTEE Tel 603-6201 1120 COMPANY WEBSITE Fax 603-6201 3121 Guido Paul Philip Joseph Ravelli www.malton.com.my Chairman AUDITORS Hj Ahmad bin Hj Ismail, PJK Member Deloitte PLT (AF 0080) Chartered Accountants Chua Thian Teck Level 16, Menara LGB Member 1, Jalan Wan Kadir Taman Tun Dr. Ismail 60000 Kuala Lumpur Tel 603-7610 8888 Fax 603-7726 8986 :: MALTON BERHAD [Registration No: 199401035205 (320888-T)] 4 CORPORATE STRUCTURE 27 October 2020 BERHAD GROUP 100% Khuan Choo Realty Sdn Bhd 100% 100% Regal Marvel Silver Setup Construction Sdn Bhd Sdn Bhd 100% 100% Silver Quest Pembinaan Gapadu Development Sdn Bhd Sdn Bhd 100% 100% Ehsan Armada Melariang Sdn Bhd Sdn Bhd 100% 100% Khuan Choo Property Interpile (M) Management Sdn Bhd Sdn Bhd 100% 51% Malton Development Amberstraits Sdn Bhd Sdn Bhd 100% 100% Bukit Rimau Regal Path Development Sdn Bhd Sdn Bhd 100% 100% Ambang Layar Raya Suriamas Sdn Bhd Sdn Bhd 100% Domain Stable Construction Sdn Bhd 100% 100% Kumpulan Gapadu Khuan Choo Sdn Bhd Sdn Bhd 100% 100% Pioneer Haven Macorp Sdn Bhd Sdn Bhd 100% 100% Gapadu Domain Resources Development Sdn Bhd Sdn Bhd 100% 51% DMP Construction Memang Perkasa Sdn Bhd Sdn Bhd 100% 100% Asia-Condo Malton Assets Corporation Limited Sdn Bhd 100% 100% Beijing100% Malton Domain Property Malton Asia Investment Services Limited Sdn Bhd Consultancy Ltd 100% 100% Beijing Malton Gapadu Harta Investment Sdn Bhd Consultancy Ltd 100% Domain EPC Sdn Bhd 100% Horizontal Promenade Sdn Bhd 100% Domain Project Management Sdn Bhd 100% Rentak Sejati Sdn Bhd 100% Khuan Choo Development Sdn Bhd 2020 Annual Report :: GROUP FINANCIAL 5 HIGHLIGHTS Revenue Profit After Taxation RM mil RM mil 2000 100 80 100% 1500 Khuan Choo Realty Sdn Bhd 100% 100% 60 Regal Marvel Silver Setup Construction Sdn Bhd 1000 Sdn Bhd 100% 100% 40 Silver Quest Pembinaan Gapadu Development Sdn Bhd Sdn Bhd 500 100% 100% 20 Ehsan Armada Melariang Sdn Bhd Sdn Bhd 100% 100% 0 2016 2017 2018 2019 2020 0 2016 2017 2018 2019 2020 Khuan Choo Property Interpile (M) Management Sdn Bhd Sdn Bhd 100% 51% Malton Development Amberstraits Sdn Bhd Sdn Bhd 100% 100% Bukit Rimau Regal Path Basic Earnings Per Share Net Assets Per Share Development Sdn Bhd Sen RM Sdn Bhd 100% 100% 20 2.0 Ambang Layar Raya Suriamas Sdn Bhd Sdn Bhd 100% Domain Stable Construction 15 1.5 Sdn Bhd 100% 100% Kumpulan Gapadu Khuan Choo Sdn Bhd Sdn Bhd 10 1.0 100% 100% Pioneer Haven Macorp Sdn Bhd Sdn Bhd 100% 100% 5 0.5 Gapadu Domain Resources Development Sdn Bhd Sdn Bhd 100% 51% DMP Construction Memang Perkasa 0 2016 2017 2018 2019 2020 0 2016 2017 2018 2019 2020 Sdn Bhd Sdn Bhd 100% 100% Asia-Condo Malton Assets Corporation Limited Sdn Bhd 100% 100% Beijing100% Malton Domain Property Malton Asia Investment Services Limited Sdn Bhd Consultancy Ltd 2019 2018 100% 100% Beijing Malton Year Ended 30 June 2020 (Restated) (Restated) 2017 2016 Gapadu Harta Investment Sdn Bhd Consultancy Ltd Revenue (RM’000) 1,809,022 992,124 802,866 833,889 632,216 100% Domain EPC Sdn Bhd Profit Before Taxation (RM’000) 51,584 62,424 61,038 127,378 71,201 100% Profit After Taxation (RM’000) 17,660 24,204 35,477 80,365 36,315 Horizontal Promenade Sdn Bhd Total Comprehensive Income Attributable 18,088 24,607 36,305 80,470 37,272 100% Domain Project to Owners of the Company (RM’000) Management Sdn Bhd Share Capital (RM’000) 528,552 528,552 528,552 528,176 448,416 100% Rentak Sejati Sdn Bhd Equity Attributable to Equity 924,701 914,536 900,492 884,926 738,497 Holders of the Company (RM’000) Total Assets (RM’000) 2,380,918 3,028,772 2,637,020 2,628,420 2,101,400 100% Khuan Choo Basic Earnings Per Share (Sen) 3.42 4.67 6.88 17.27 8.12 Development Sdn Bhd Net Assets Per Share (RM) 1.75 1.73 1.72 1.68 1.65 :: MALTON BERHAD [Registration No: 199401035205 (320888-T)] 6 BOARD OF DIRECTORS TAN SRI LIM SIEW CHOON GUIDO PAUL PHILIP JOSEPH RAVELLI Malaysian Male/Non-Independent Non-Executive British Male/Deputy Chairman/Independent Non- Chairman Executive Director Tan Sri Lim Siew Choon, age 60, received his tertiary Mr Paul Ravelli, age 69, studied civil engineering at education in the United States of America and King’s College, University of London and graduated graduated with a Degree in Business Administration with a Bachelor of Science (Hons) degree in Civil and Finance from University of Central Oklahoma. He Engineering. He furthered his studies at Ecole has been involved in the property development and Centrale des Arts et Manufacturers, Paris and was construction industries for more than 37 years. later conferred Master of Science in Engineering. He began his career with a major building contractor He was appointed the Executive Chairman of Malton in Paris and later elected to pursue an international Berhad on 15 February 2001. He was redesignated career in the field of construction. He spent 30 years Non-Executive Chairman of Malton Berhad on 3 with one of the largest international construction January 2017. He attended all five of the board groups, and has more than 40 years of experience in meetings held during the financial year ended 30 the development, implementation and management June 2020. He is the Chairman and Non-Independent of buildings, public works and Build/Operation/Transfer Executive Director of Pavilion REIT Management Sdn projects in France, Hong Kong SAR, Malaysia, Portugal Bhd, the Manager of Pavilion Real Estate Investment and South-East Asia. In year 2000, the President of Trust and Executive Chairman of WCT Holdings France conferred a national honour on him by making Berhad. Both Pavilion Real Estate Investment Trust and him, a Chevalier de l’Ordre National du Merite, in WCT Holdings Berhad are listed on the Main Market of recognition of his contribution to the profession and Bursa Malaysia Securities Berhad. to Franco-Asian business relations. Since 2003, he has also been involved in the associated gas and power His spouse, Puan Sri Tan Kewi Yong is an Executive sector, in various countries. Director and a major shareholder of Malton Berhad. He does not have any conflict of interest with Malton He was appointed an Independent Non-Executive Berhad other than the disclosures made under Director of Malton Berhad on 1 March 2002. He Recurrent Related Party Transactions which appear was subsequently appointed the Deputy Chairman on page 35 and Related Party Transactions and of Malton Berhad on 6 November 2002. He is the Balances in the Financial Statements which appear Chairman of the Audit Committee and also chairs on pages 125 to 128 of this Annual Report. the Nominating Committee and Remuneration Committee. He is a member of the Institute of He is a major shareholder of Malton Berhad. His Internal Auditors Malaysia. He also sits on the Board of interests in the shares of Malton Berhad are set out Directors of Ibraco Berhad, listed on the Main Market in the Statement of Shareholders which appear on of Bursa Malaysia Securities Berhad. pages 160 to 162 of this Annual Report. He has no conviction for offences within the past 5 years.