Advancing Growth Strengthening Value
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MATRIX CONCEPTS HOLDINGS BERHAD 414615-U ADVANCING GROWTH STRENGTHENING VALUE MATRIX CONCEPTS HOLDINGS BERHAD 414615-U Advancing Growth Strengthening Value Wisma Matrix, No. 57, Jalan Tun Dr. Ismail, 70200 Seremban, Negeri Sembilan Darul Khusus, Malaysia. T: +606 764 2688 F: +606 764 6288 www.mchb.com.my ANNUAL REPORT 2018 ANNUAL REPORT 2018 This annual report cover is printed on environmental friendly paper. FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Matrix Concepts Holdings Berhad has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance practices. THE CREATION OF A BENCHMARK – VISION NURTURING ENVIRONMENT AND ENRICHING LIVES BY BEING A CARING AND COMMUNITY DEVELOPER. PROVIDING PREMIER AND QUALITY EDUCATION FOR OUR FUTURE GENERATION AND DIVERSIFY INTO SUSTAINABLE PROPERTY INVESTMENT. MISSION Strive to consistently exceed Continuously develop our Creation and enhancing our customers’ expectations highly-valued human capital shareholders’ value and through delivering par based on meritocracy to fulfillment of our corporate excellence products and ensure continuous growth social responsibilities. professional services for total for both the business and customer satisfaction. stakeholders. 1 2 3 4 Cover Rationale OUR OUR STRATEGY & SUSTAINABILITY About This Report BUSINESS PERFORMANCE REVIEW STATEMENT 6 Corporate Profile 10 Five-Year Group 32 About This 7 Corporate Information Performance Chart Sustainability Statement 8 Corporate Structure 11 Group Financial 33 Sustainability in Action Highlights 37 Materiality, Stakeholder 12 Chairman’s Statement Engagement and Risks 16 Management 42 Sustainability and Risk Discussion & Analysis Management 44 Economic Responsibility: Leading by Example 54 Environmental Responsibility 67 Social: Society 74 Social: Labour Practices INSIDE and Decent Work 81 Social: Human Rights 82 Social: Product Responsibility 88 Our Disclosure Against THIS REPORT the GRI Standards 4 5 6 7 OUR SIGNIFICANT EVENTS HOW WE ARE FINANCIAL ADDITIONAL AND ACCOLADES GOVERNED STATEMENTS INFORMATION 93 Awards & Recognitions 97 Profile of 136 Directors’ Report 224 Additional Information 94 Dividend Highlights Board of Directors 144 Statement by Directors 227 List of Properties 95 Share Price Movement 106 Management Team 144 Statutory Declaration 229 Analysis of 96 Media Highlights 110 Corporate Governance 145 Independent Shareholdings Overview Statement Auditors’ Report 232 Analysis of 123 Audit Committee Report 149 Statements of Warrant Holdings 128 Statement on Financial Position 235 Notice of Risk Management and 151 Statements of Annual General Meeting Internal Control Profit or Loss and Other 238 Statement 134 Statement of Comprehensive Income Accompanying Notice of Responsibility by 152 Statements of Annual General Meeting Directors Changes in Equity 155 Statements of • Proxy Form Cash Flows 157 Notes to the Financial Statements Run the QR Code Reader app and point your camera at the QR Code. 4 MATRIX CONCEPTS HOLDINGS BERHAD // ANNUAL REPORT 2018 // ABOUT THIS REPORT COVER RATIONALE Aside from the continuous update in the media, Bursa Malaysia announcements and quarterly reports, this report demonstrates This year’s annual report, reflects our status of not only, our efforts in adopting best practices, transparency and greater able to stay resilience against the challenging times but also accountability. With the new reporting guidelines introduced, advancing growth. The cover portray the portfolio of businesses our goal is to communicate our strategies, insights, activities undertaken by Matrix Concepts Holdings Berhad (“Matrix”) and also the various outcomes that deliver long-term value to in Property Development, Construction, Hospitality and our stakeholders, including shareholders, business partners, Education. Guided by our philosophy, “Nurturing Environments, customers and employees. Essentially, it encapsulates where we Enriching Lives”, Matrix believes in consistently delivering were, where we aim to go and how we plan to achieve our goals. long-term value not only to the communities we create, but also to our customers, employees, shareholders and the communities The financial statements, audited by Messrs. Crowe Malaysia around us. (formerly known as Crowe Horwath), were prepared according to Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act MATRIX CONCEPTS HOLDINGS BERHAD (“MATRIX”) 2016 in Malaysia. The non-financial statements in this Report were developed in accordance to the Malaysian Code on Corporate As a caring and responsible community developer, integrity, Governance 2017, Main Market Listing Requirements of Bursa honesty and quality remains at the heart of how we conduct our Malaysia, Bursa Malaysia Sustainability Reporting Guidelines and business. the Global Reporting Initiatives. Recognising that we have various stakeholders who are impacted We have made every efforts to ensure this Annual Report by our financial performance and the manner in which our business presents a balanced and accessible assessment of our strategy, is conducted, this Annual Report aims to inform our shareholders performance, governance and prospects. The issues and and other stakeholders about our financial and non-financial developments included were determined by quantitative and performance in the last 12 months, providing a comprehensive, qualitative considerations that have an impact on our current and balanced view on Matrix’s overall business direction and future performance. performance, risks, governance and growth outlook. PROPERTY DEVELOPMENT CREATING SUSTAINABLE LIVING 6 MATRIX CONCEPTS HOLDINGS BERHAD // ANNUAL REPORT 2018 // OUR BUSINESS OUR STRATEGY & PERFORMANCE REVIEW SUSTAINABILITY STATEMENT OUR SIGNIFICANT EVENTS AND ACCOLADES HOW WE ARE GOVERNED 1 FINANCIAL STATEMENTS ADDITIONAL INFORMATION CORPORATE PROFILE MATRIX CONCEPTS HOLDINGS BERHAD (“MATRIX”) WAS INCORPORATED ON 24 DECEMBER 1996. MATRIX WAS LISTED ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD ON 28 MAY 2013. Within a short span of time, in the following year of 2014, Matrix joined The Edge Billion Ringgit Club. Its principal business activities focus mainly on its four (4) pillars GROUP GROUP of strengths: REVENUE PRE-TAX PROFIT FY2018 FY2018 PROPERTY CONSTRUCTION DEVELOPMENT 818.5 295.2 Million Million EDUCATION HOSPITALITY Matrix’s projects live up to its renowned tagline of “Nurturing Environments, Enriching Lives” by being a caring and community developer, providing premier and quality education for our future generation and to inculcate GROUP MARKET integrated sustainable communities in all our developments. NET PROFIT CAPITALISATION FY2018 (AS AT 30 JUNE 2018) Matrix has successfully completed and delivered more than 6,150 residential and commercial properties with a Gross Development Value (GDV) 213.3 1.505 of RM2.5 billion over the last 5 years. The Group’s combined on-going and Million Billion future GDV is approximately RM15 billion over the next fifteen (15) years. // ANNUAL REPORT 2018 // MATRIX CONCEPTS HOLDINGS BERHAD 7 OUR BUSINESS OUR STRATEGY & PERFORMANCE REVIEW SUSTAINABILITY STATEMENT OUR SIGNIFICANT EVENTS AND ACCOLADES HOW WE ARE GOVERNED FINANCIAL STATEMENTS 1 ADDITIONAL INFORMATION CORPORATE INFORMATION DATO’ LEE TIAN HOCK DATO’ (IR.) BATUMALAI A/L RAMASAMY BOARD Group Managing Director Independent Non-Executive Director Non-Independent Executive Director OF DIRECTORS DATO’ HON CHOON KIM HO KONG SOON Independent Non-Executive Director Group Deputy Managing Director DATO’ HAJI Non-Independent Executive Director DATO’ HAJAH KALSOM BINTI KHALID MOHAMAD HASLAH Independent Non-Executive Director REZAL ZAIN BIN ABDUL RASHID BIN MOHAMAD AMIN Senior Independent Non-Executive Director DATO’ LOGENDRAN A/L K Chairman NARAYANASAMY Non-Independent DATO’ FIRDAUS MUHAMMAD Non-Independent ROM BIN HARUN Non-Executive Director Non-Executive Director Independent Non-Executive Director AUDIT COMMITTEE NOMINATION COMMITTEE ESOS COMMITTEE REGISTRAR Rezal Zain Bin Abdul Rashid Dato’ Firdaus Muhammad Rom Dato’ (Ir.) Batumalai A/L Bina Management (M) Sdn Bhd (Chairman) Bin Harun (Chairman) Ramasamy (Chairman) Lot 10, The Highway Centre Dato’ Firdaus Muhammad Rom Dato’ (Ir.) Batumalai A/L Ho Kong Soon Jalan 51/205 Bin Harun Ramasamy Dato’ Logendran A/L K 46050 Petaling Jaya Dato’ (Ir.) Batumalai A/L Dato’ Hon Choon Kim Narayanasamy Selangor. Ramasamy Dato’ Hajah Kalsom Binti Khalid Tel : +603-7784 3922 Fax : +603-7784 1988 Dato’ Hon Choon Kim STOCK EXCHANGE LISTING Dato’ Hajah Kalsom Binti Khalid RISK MANAGEMENT Bursa Malaysia Securities Berhad BANKERS COMMITTEE Main Board AmBank Islamic Berhad COMPANY SECRETARY Rezal Zain Bin Abdul Rashid Property Sector Carmen Loo Kah Boon (Chairman) AmBank Berhad (MAICSA 0784630) Dato’ Logendran A/L K Public Bank Berhad STOCK NAME AND CODE Narayanasamy Maybank Islamic Berhad MATRIX (5236) REGISTERED OFFICE Ho Kong Soon Hong Leong Bank Berhad Wisma Matrix Dato’ Firdaus Muhammad Rom RHB Islamic Bank Berhad No. 57, Jalan Tun Dr. Ismail Bin Harun STOCK NAME AND CODE 70200 Seremban Dato’ Hajah Kalsom Binti Khalid FOR WARRANTS Negeri Sembilan. MATRIX-WA (5236WA) Tel : +606-7642