Annual Report 2021 Hartalega Holdings Berhad Contents
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Hartalega Holdings Berhad Reg. No. 2006 Reg. 01022130 (741883-X) 01022130 Corporate Office Annual Report 2021 C-G-9, Jalan Dataran SD1 Dataran SD, PJU 9 Bandar Sri Damansara 52200 Kuala Lumpur, Malaysia Tel : +603-6277 1733 Grounded in Values Fax : +603-6280 2533 Email : [email protected] Factory No. 7, Kawasan Perusahaan Suria No. 1, Persiaran Tanjung 45600 Bestari Jaya Kawasan Perindustrian Tanjung Selangor Darul Ehsan, Malaysia 43900 Sepang Tel : +603-3280 3888 Selangor Darul Ehsan, Malaysia Fax : +603-3271 0135 2021 www.hartalega.com.my Annual Report 1 Annual Report 2021 Hartalega Holdings Berhad Contents TH AA RA Corporate & MEETING Management Overview 7 R 2021 Vision & Values 2 Industry Firsts 4 Awards & Recognition 5 Responsibility & Our Business 6 Financials Our Presence 8 Corporate Governance Overview Statement 79 The Hartalega Nitrile Glove Story 10 Audit Committee Report 91 Financial Summary 13 Statement on Risk Management Grounded in Values Share Price Performance 15 and Internal Control 95 Hartalega Holdings Berhad The theme of this year’s report, ‘Grounded in Corporate Information Values’, reflects how Hartalega’s core values of 16 Report of the Directors and Financial SHIELD – Synergy, Honesty, Innovation, Excellence, Statements 98 Reg. No. 2006 Learning and Dedication – are deeply embedded Media Milestones 18 in all that we do. This commitment to do the right 01022130 (741883-X) 01022130 thing at all times is instilled in our diverse talent Profile of Directors Additional Compliance pool of Hartanians. Featured on the cover visual, 20 Information 169 our Hartanians are the driving force of the Group, leading us forward to achieve our aspirations for Profile of Senior List of Properties sustainable growth, while always staying true to our Management Team 25 170 Corporate Office Annual Report 2021 C-G-9, Jalan Dataran SD1 values to ensure that we progress on our journey Dataran SD, PJU 9 Bandar Sri Damansara 52200 Kuala Lumpur, Malaysia with good governance, fairness and integrity as our Tel : +603-6277 1733 Grounded in Values Chairman’s Review and Management Analysis of Shareholdings Fax : +603-6280 2533 172 Email : [email protected] guiding principles. 28 Factory Discussion & Analysis No. 7, Kawasan Perusahaan Suria No. 1, Persiaran Tanjung 45600 Bestari Jaya Kawasan Perindustrian Tanjung Selangor Darul Ehsan, Malaysia 43900 Sepang Notice of Annual General Meeting Tel : +603-3280 3888 Selangor Darul Ehsan, Malaysia Fax : +603-3271 0135 176 2021 Sustainability www.hartalega.com.my Annual Report Report 36 Statement Accompanying the Notice of Annual General Meeting 181 Proxy Form 183 1 Annual Report 2021 Annual Report 2021 Hartalega Holdings Berhad Hartalega Holdings Berhad These values represent the qualities that Hartalega incorporates in all that we do, in order to propel the Group forward and enable us to realise our Vision Vision & Values and Mission to deliver the best possible protection via our high quality gloves. Our Vision To be the Number One glove company that produces and delivers the best and most innovative gloves in the world; and to be recognised as a caring company to the community and environment. Our Mission To deliver the best possible protection to people who work with their hands in exposed and challenging environments by providing consistently superior, safer, and more convenient gloves in chosen product markets. xcellence earning edication nnovation Driven By Synergy Honesty Innovation Core Values Our Core Values ynergy are embodied in the onesty acronym, SHIELD, which stands for: Values Excellence Learning Dedication 2 3 Annual Report 2021 Annual Report 2021 Hartalega Holdings Berhad Hartalega Holdings Berhad Industry Firsts Awards & Recognition FIRST to develop FIRST Malaysian FIRST to commercially polymer-coated powder- company to develop produce high-stress- free examination gloves and implement a robotic relaxation NBR in 1994 and among glove stripping system examination and the first to receive FDA in 1995, which mimics surgical gloves in 2002 510(k) to market low the human hand motion and 2006, respectively protein latex gloves to strip gloves off from the production lines FIRST in the industry FIRST in the world to FIRST in the industry to use industrial bar- develop and implement to use empty oil coding and RFID tags successful double palm fruit bunches for product traceability former production line as biomass fuel to and stock management with sophisticated generate heat for process controls production processes The Edge Billion Ringgit Club Aon Best Employer Award Asiamoney Best Awards 2020 - Company of the (2018) Managed Company Year, Highest Growth in Profit After (2010, 2012, 2014) to commission in the industry biomass energy Tax Over 3 Years (Super Big Cap FIRST FIRST FIRST Companies), Highest Return on high-capacity production to have successfully plant in Malaysia AIA - Malaysia’s Healthiest Equity Over 3 Years, Highest Growth Employees Award ISO 9001 : 2015 lines operating at a registered our biomass registered with the in Profit After Tax Over 3 Years (Large Organisation 2018) record speed of 45,000 energy plants with UNFCCC or Kyoto pieces of gloves per the United Nations Protocol, that is in ISO 13485 : 2016 Kincentric Best Employers Malaysia hour, setting a new Framework Convention operation and running HR Excellence Awards 2018 2020 - Excellence in Workplace benchmark for the on Climate Change mainly on empty oil Wellbeing (Silver) EN ISO 13485 : 2016 industry (UNFCCC) or Kyoto palm fruit bunches - Excellence in HR Protocol HR Excellence Awards 2020 Communication Strategy - Excellence in Talent Acquisition (Bronze) ISO 14001 : 2015 (Bronze) - CSR Strategy (Bronze) MREPC Industry Awards 2018 ISO 45001 : 2018 - Most Outstanding Company MSC Malaysia APICTA 2020 - Export Excellence Awards (Industrial Category – - Green Business EC-Certificate Manufacturing) M100 Graduate Employer Award JGMP Leading The Star Export Excellence Awards (2015) 2019 - Exporter of the Year Award & Gold Award (Other Industries U.S. Food and Drug Category) Asiamoney Corporate Administration 510(k) The Way In Governance Award (2015) 2015 The Edge Billion Ringgit Club UL Certification Awards - Most Profitable Company University of Malaya Excellence (Industrial Products Sector) 2013, Awards (2014 - Human Capital National Fire Innovation 2014, 2015 & 2016; Highest Return on Equity Over 3 Years 2018; Development) Protection Association Highest Return on Equity Over 3 Years & Highest Profit Growth Over 3 Years 2019 FinanceAsia Best Companies China Food and (2014 - Best Mid Cap Malaysia) Drug Administration Kincentric Best Employer’s Special Recognition for Purposeful Forbes Asia Best ANVISA Workplace Award 2019 Under A Billion List (2010, 2011, 2012 & 2013) ISEGA Food Contact GCA Graduate Choice Award 2019 Test Certification (Manufacturing Category) HR Asia Best Companies To (German) Work For in Asia Awards (2013, 2014) HR Excellence Awards 2019 PPE Cert (Excellence in HR Communication Strategy) 4 5 Annual Report 2021 Annual Report 2021 Hartalega Holdings Berhad Hartalega Holdings Berhad Our Business Current installed production capacity of over Largest billion exporter of nitrile gloves gloves annually in the world oure alaa’ port Perorane o Ruer love n 2020 R Report alaan Ruer ounl aret aitalisation RM.6 billion stalished in as at arh alasia in 1988 Trnover RM. billion $ rrentl elos Profit After Tax FY2021 8,548 RM. billion Hartanians Biodegradable Metal and sustainable detectable gloves gloves for RM food safety Dividend + riven by Payout Policy Colloidal Oatmeal Active Therapeutic System RM0 R& and 60% million of Profit After Tax COATS™ COVI assistance innovation therapeutic glove Colloidal Oatmeal System since FY208 contribution 6 7 Annual Report 2021 Annual Report 2021 Hartalega Holdings Berhad Hartalega Holdings Berhad Our Presence 8 9 Annual Report 2021 Annual Report 2021 Hartalega Holdings Berhad Hartalega Holdings Berhad The Hartalega Nitrile Glove Story • Commenced R&D on elastic thin nitrile glove 2015 2016 2002 • Overcame technology, pricing • Completed Plants 1 • Commenced commissioning • Commenced R&D on production and intellectual and 2 of the NGC of Plant 3 of the NGC technology property barriers • Launched patented Goodpac • Focused on effective and low- • Introduced users to packing technology cost nitrile glove production a nitrile glove that 2003 • Operated the world’s first mimics the softness double former production line and stretchiness of a at year end 2003 natural rubber glove • Increased production line capacity to 28,000 pcs/hr of • Commissioned first nitrile gloves – highest in the production lines of the industry • Launched the world’s NGC first 4.7g nitrile glove. It mimicked 2014 • Launched new global the properties of 2005 distribution arm, MUN natural rubber gloves • Launched new without protein umbrella brand, allergy risks, was GloveOn competitively priced and outside the Tillotson's patent • Ringgit de-pegged from the US dollar • 25th Anniversary Silver Jubilee Celebration of Hartalega • Groundbreaking for the • Competitor launched Next Generation Integrated 2013 a 4.2g nitrile glove Glove Manufacturing • Hartalega responded Complex (NGC) 2007 with the world’s first • Launched 2.7g nitrile glove 3.7g nitrile glove. It • Introduced patented was developed at glove coating technology, the same time as the Colloidal Oatmeal Active 4.7g glove but kept in Therapeutic System or the ‘war chest’ COATS • Hartalega’s nitrile glove • Increased production