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Across Boundaries Annual Report 2020 Contents GALLANT VENTURE LTD. GALLANT VENTURE LTD. GALLANT VENTURE LTD. 3 HarbourFront Place #16-01 HarbourFront Tower Two Singapore 099254 Tel: (65) 6389 3535 Fax: (65) 6396 7758 www.gallantventure.com ANNUAL REPORT 2020 ANNUAL REPORT PROVIDING SOLUTIONS ACROSS BOUNDARIES ANNUAL REPORT 2020 CONTENTS GROUP OVERVIEW Group Profile 01 Group Businesses 02 Board of Directors 04 Additional Information on Directors 07 Group Structure 26 Corporate Directory 27 Letter to Shareholders 28 BUSINESS AND FINANCIAL REVIEW Business Review 30 Financial Highlights 34 Financial Review 35 SUSTAINABILITY & GOVERNANCE Sustainability Report 37 Statement of Corporate Governance 63 FINANCIALS Directors’ Statement 86 Independent Auditor’s Report 90 Statements of Financial Position 95 Consolidated Statement of Profit or Loss 97 Consolidated Statement of Comprehensive Income 98 Consolidated Statement of Changes in Equity 99 Consolidated Statement of Cash Flows 101 Notes to the Financial Statements 106 OTHER INFORMATION Statistics of Shareholdings 216 Notice of Annual General Meeting 218 Proxy Form GALLANT VENTURE LTD Annual Report 2020 01 GROUP PROFILE Gallant Venture Ltd. (“GV”), headquartered and listed in Singapore, is an Indonesia focused investment holding company with operations primarily in the islands of Batam and Bintan. Our business is well-positioned to leverage on the strategic alliance between Singapore and Indonesia governments and close proximity to Singapore. The principle business of GV and its subsidiaries (“the Group”) are utilities provider, master planner and developer of industrial parks, property development and resort operations. Through the Group’s associated companies’ PT Indomobil Sukses International Tbk (“PT IMAS”) and BOMC Pte Ltd (“BOMC”), the Group has foothold in the automotive and offshore marine industry. CORE BUSINESS PROPERTY RESORT UTILITIES INDUSTRIAL PARKS DEVELOPMENT OPERATIONS OTHER BUSINESS 02 GALLANT VENTURE LTD Annual Report 2020 GROUP BUSINESSES UTILITIES We are independent utilities provider to our industrial park and resorts in Batam and Bintan. We provide power, water, waste management services and telecommunication services to our customers in the industrial parks and resorts. We have invested approximately S$435 million in the construction and development of utilities infrastructure and resources that include power generation and distribution facilities, portable water treatment facilities, sewage treatment plants, waste water treatment facilities and landfills. For power generation, we have aggregate installed capacity of 154 MW, of which 120 MW in BIP, 10 MW in BIIE and 24 MW in Resorts. In order to cope with any potential increase in power consumption, we cater approximately 30% of our installed capacity as standby reserve. For water and waste treatment, we have aggregate capacity of 14,500m3/day and 10,000m3/day. For telecommunication services, we have approximately 6,000 lines servicing Batam and Bintan and also provide internet and triple play (Telephone, Internet and IPTv) services. INDUSTRIAL PARKS We own and manage Batamindo Industrial Park (“BIP”) and Bintan Industrial Estate (“BIE”) in Batam and Bintan that offer the convenience of one-stop manufacturing environment with ready access to Singapore’s financial, infrastructure and logistics network. BIP, a 320 ha premium industrial park in Batam with net factory lettable area of approximately 550,000 sqm, consists of 183 ready-built-factories with factory size between 972 sqm and 9,217 sqm and other services include logistics, medical amenities and workers’ accommodation. BIP is the first industrial park in Asia-Pacific certified ISO 9001 and ISO 14001. BIE, a 170 ha industrial park in Bintan with net factory lettable area of approximately 107,000 sqm, consists of 88 ready- built-factories with factory size between 504 sqm and 2,100 sqm and has its own dedicated wharf, CIQP facilities and amenities for medical and housing. PROPERTY DEVELOPMENT We are the master planner and developer for industrial, commercial, residential and resorts development in Bintan and Batam, Indonesia. We own approximately 18,000 ha of land in Bintan. Our latest integrated resort development, Lagoi Bay, consists of 1,300 ha earmarked for development of resorts, residences, shopping, restaurants, entertainments and sea-sport facilities. Some of the investors in Lagoi Bay include world’s leading resorts and hotels marques such as The Sanchaya, Four Point by Sheraton, Hotel Indigo and Hotel Inn by InterContinental Hotels Group, Dialoog Hotel by Malka and The Haven Bintan Lagoi Bay by the Haven Group. GALLANT VENTURE LTD Annual Report 2020 03 RESORT OPERATIONS We are the master planner and developer in Bintan Resorts. We undertake the overall planning, development, operations and marketing of Bintan Resorts. We provide support facilities and services including ferry services and ferry terminal operations, security, tour and resort operations, property rental, workers’ accommodation, medical support and estate and township maintenance. OTHER BUSINESS PT IMAS, an associated company of the Group, is an Indonesia based integrated automotive group. Its main business among others dealership franchise holder, vehicle sales distributor, after sales services, vehicle financing, spare parts distributor, vehicle assembler, automotive parts/component manufacturer, car rental services, used cars trading, logistics services, fuel distribution, non-formal education services, and other related supporting services. PT IMAS holds well-known brands of international reputation, namely Audi, Bandit, Datsun, HIAB, Hino, John Deere, Kalmar, KIA, Manitou, Nissan, Renault Trucks, SDLG, Suzuki, Volkswagen, Volvo Bus, Volvo Construction Equipment and Volvo Trucks. BOMC, an associated company of the Group, own and operate a state-of-the art common-user facility in Bintan Industrial Estate for manufacturing, fabrication, repairs, modifications, and logistics for the offshore marine, oil and gas industries. It offers all offshore projects the distinct advantage to lower costs, provides increased efficiencies and productivity, adhere to strict corporate compliance and governance requirements with all operations conducted under world class safety and quality systems. 04 GALLANT VENTURE LTD Annual Report 2020 BOARD OF DIRECTORS MR LIM HOCK SAN MR GIANTO GUNARA Non-Executive Chairman and Independent Director Executive Director and Chief Operating Officer Date of last election: 30 April 2019 Date of last election: 26 June 2020 Board Committee Board Committee Chairman of Audit and Risk Management Committee Nil Member of Remuneration Committee Member of Nominating Committee Mr Gunara was appointed as an Executive Director on 8 November 2006. Mr Lim was appointed as a Non-Executive Chairman and Independent Director on 1 February 2006. Mr Gunara is the Executive Director/Group Chief Operating Officer overseeing the Group Operations. He started his Mr Lim has a Bachelor of Accountancy from the University career with Haagtechno BV-Den Bosch in Holland as a of Singapore and a Master of Science (Management) Management Trainee in 1984 and is currently a Non-Executive from Massachusetts Institute of Technology. Mr Lim also Director of QAF Limited. He sits on the Board of Director/ attended the Advanced Management Programme at Harvard Commissioner of several subsidiaries of the Group and in Business School. He is a Fellow of The Chartered Institute other private enterprises. of Management Accountants (UK) and a Fellow and past President of the Institute of Singapore Chartered Accountants. He holds a Bachelor in Business Administration degree from He is also a recipient of the Singapore Government Meritorious Simon Fraser University, Vancouver, Canada. Service Medal, the Public Administration Medal (Gold) and the Public Service Medal. Current directorship in other company listed on Singapore stock exchange Current directorship in other companies listed on Singapore – QAF Limited stock exchange – Indofood Agri Resources Ltd – Interra Resources Ltd MR CHOO KOK KIONG Executive Director and Chief Financial Officer MR EUGENE CHO PARK Date of last election: 26 June 2020 Executive Director and Chief Executive Officer Board Committee Nil Date of last election: 30 April 2018 Board Committee Mr Choo was appointed as an Executive Director on 30 April 2014. Nil Mr Choo is the Executive Director/Group Chief Financial Mr Park was appointed as an Executive Director and Chief Officer overseeing the Group and its corporate services. He Executive Director on 1 February 2006. is also appointed as a Group Risk Officer. Prior to joining the company, he held various management positions in the Responsible for the overall management of the Company, Sembcorp group. He has over 20 years of finance experience, Mr Park is a co-founder of Parallax Capital Management having held the positions of Vice-President of Finance at Group. He has also spent more than 15 years as an Sembcorp Parks Management and Sembcorp Parks Holdings investment banker with Credit Suisse First Boston in London, Ltd (now known as Sembcorp Development Ltd), Assistant Chase Manhattan Asia Ltd in Hong Kong and Banque Paribas Vice-President of Finance at Sembcorp Industries Ltd and Accounts Manager with Singapore Precision Industries Pte in Singapore. He received a Bachelor of Arts (Chemistry) from Ltd. Mr Choo was appointed as a non-executive director of Princeton University in the United States of America and a QAF Limited. Master of Business Administration from INSEAD in France.
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