Bintan Industrial Estate Batamindo Industrial Park 4000 hectare industrial land BINTAN BATA Batamindo Executive Village Bintan Inti Executive Village M Hotels and Resorts Commercial and Residential Projects Master planner and development Lagoi Bay development INDONESIA ISO 9001:200 Power Generation Facilities 0 Telecommunicationsater ISO 14001 Clean W Sole agency Bintan Resorts Vehicle Assembly Ferries Distribution After-sales Service e land bank Low Cost Green Cars IMAS 21,000 hectar Integrated Automotive Group A JAKART Trucks Parts Distribution Cars Forklifts d-winning golf coursesHolidays war A Bintan Airport Hospitality Realising Indonesia Focused Strategies Annual Report 2014 With vision and perseverance, we have has successfully integrated with its newly successfully developed Batam and Bintan acquired automotive arm – PT Indomobil into an investment and tourist destination Sukses Internasional Tbk (“IMAS”). IMAS is offering integrated businesses and services one of the two largest integrated automotive such as industrial parks, utilities, property groups in Indonesia, managing brands such development, and resort operations. as Nissan, Hino, Volvo, Volkswagen, Renault Continuously expanding our product Trucks and so on. With IMAS, the Group offering, Lagoi Bay Development is our has deepened its roots into Indonesia and latest integrated project with resorts/ diversified the Group’s portfolio from a single hotels, commercial activities and residential location-focused business to a country- plots in Bintan. Progressive completion of focused investment holding company. the Lagoi Bay project will bring our Bintan Resorts to new heights and significantly enhance the business prospects on the island. On a separate note, the Group CONTENTS 01 Corporate Profile 43 Directors’ Report 02 Our Presence 46 Statement by Directors 04 Our Core Businesses 47 Independent Auditors’ Report 14 Letter to Shareholders 48 Statement of Financial Position 16 Business Review 49 Consolidated Statement of Comprehensive Income 20 Financial Review 50 Consolidated Statement of Changes in Equity 22 Corporate Structure 51 Consolidated Statement of Cash Flows 24 Financial Highlights 54 Notes to the Financial Statements 25 Board of Directors 155 Statistics of Shareholdings 27 Key Executives 157 Notice of Annual General Meeting 28 Corporate Information Proxy Form 29 Statement of Corporate Governance 4 2014 Annual Report Gallant Venture Ltd. CORPORATE PROFILE Gallant Venture Ltd. is an Since our establishment in the 1990s, we have been an important innovator in four key business Indonesia focused investment segments – utilities, industrial parks, resort holding company headquartered operations and property development. Our in Singapore. We are an integrated businesses are well-positioned to leverage on the strategic proximity of Singapore and the strategic automotive group with coverage alliance between the Singapore and Indonesia across Indonesia and master governments. planner for industrial parks and Our landmark development projects include the Batamindo Industrial Park, the Bintan Industrial resorts in Batam and Bintan. Estate and Bintan Resorts, with more prime developments in the pipeline slated for completion in the near future. 2014 Annual Report Gallant Venture Ltd. 1 SINGAPORE BATAM OUR PRESENCE GALLANT VENTURE LTD. is headquartered in In 2013, the Company has ventured into Singapore which aims to maximise shareholders’ automotive sector in Indonesia region to tap into value. Its strategy is to build a diversified Indonesia the growing demand of vehicle sales which have focused portfolio. Its investments in Batam and doubled from approximately 600,000 units to Bintan, located just across the Singapore Straits, approximately 1.2 million units in 2013. Gallant leverage on strategic alliance between Singapore Venture acquired 71.49% of IMAS, one of the two and Indonesia Governments. With well planned largest integrated automotive business groups co-development of the region, we are pleased to in Indonesia. IMAS has comprehensive expertise witness the transformation of both islands from a across automotive business included holding sole fishing village into an industrial and resorts island agent brand, vehicles assembly and distribution having a combined population of around 1.8 of vehicle sales including heavy equipment, million. after-sales services, vehicle assembly, and manufacturing of automotive parts/components with further interest in financial services. BINTAN JAKARTA 4 2014 Annual Report Gallant Venture Ltd. AUTOMOTIVE Gallant Venture engages in the automotive industry. Our business activities comprise financial services, assembling and distributing automobiles, buses, trucks and heavy equipment as well as their related parts/ components. One of the two largest integrated automotive Suzuki, Volkswagen, Volvo, Volvo Trucks, and Mack business groups in Indonesia, its primary business Trucks and has well-distributed sales and after- line covers sole agencies, vehicle sales distribution, sales branch networks to capture higher sales after sales service, vehicle ownership financing, penetration across Indonesia. spare part distribution under the “IndoParts” brand, vehicle assembly, automotive parts/ components manufacturing and other related supporting services. IMAS manages well-known international brands such as Audi, Foton, Hino, Kalmar, Manitou, Nissan, Renault, Renault Trucks, 2014 Annual Report Gallant Venture Ltd. 5 6 2014 Annual Report Gallant Venture Ltd. PROPERTY DEVELOPMENT Gallant Venture is the master planner and infrastructure provider in Batam and Bintan. It master planned land parcels for industrial, commercial, residential and resort projects on the Group’s land banks in Bintan of approximately 18,000 hectares. Located in Northern Bintan, Lagoi Bay development On completion of Phase 1, it will add over 150 new is earmarked as an integrated resort development. businesses, 10 new hotel properties, condominiums Measuring approximately 1,300 hectares, its and housing compounds, contributing more than features when completed will include resorts, 3,000 keys to Bintan Resorts’ current 1,500 key count. residential sites, shopping malls, restaurants entertainment, and sea-sport facilities. Some of the investors of Lagoi Bay include the world’s leading resorts such as Alila Villas, The Sanchaya, Grand Lagoi Swiss-Belhotel, and Treasure Bay. 2014 Annual Report Gallant Venture Ltd. 7 8 2014 Annual Report Gallant Venture Ltd. INDUSTRIAL PARKS Gallant Venture owns and manages the Batamindo Industrial Park in Batam and the Bintan Industrial Estate in Bintan. We offer the convenience of one-stop manufacturing environment with ready access to Singapore’s financial, infrastructure and logistics network. Our activities include the development of the industrial parks, sales or lease of prepared industrial land as well as the provision of ready-built factories and dormitory. These parks encompass net lettable area of operational efficiency and effectiveness. Our 550,000m2 in Batamindo Industrial Park and Batamindo Industrial Park is the first industrial park 100,000m2 in Bintan Industrial Estate. Our in the Asia-Pacific to be certified ISO 9001:2000 industrial parks are designed with flexible layouts and ISO 14001, hallmarks of manufacturing site and ease of set-up. Separate areas are broadly that is efficient, cost effective and environmentally designed for offices, productions, as well as friendly. loading and unloading of goods. To meet the needs of our investors and tenants, whom may require specifications unique to their operations, the factories may be customised so to achieve 2014 Annual Report Gallant Venture Ltd. 9 10 2014 Annual Report Gallant Venture Ltd. UTILITIES Gallant Venture, a private provider of utilities in Batam and Bintan, provides electricity, telecommunications, water and waste management services to its industrial parks’ and Resorts’ customers. The Group has invested approximately S$435 million in the construction and development of utilities infrastructure and resources including power generation and distribution facilities, portable water treatment facilities, sewage treatment plants and waste water treatment facilities and landfills. Our facilities include 19 dual-fired generators at supply to its customers, our catered approximately Batamindo Industrial Park, 6 generators at Bintan 30% of our installed capacity as standby reserve. Industrial Estate, and 4 generators at Bintan In addition, we maintain a strategic fuel reserve so Resorts. The installed capacities of our generators to ensure continuously and uninterrupted power are 130MW, 20MW, and 24 MW respectively. generation even in the event of disruption in fuel In order to cope with any potential increase in supply. electricity consumption and provide steady power 2014 Annual Report Gallant Venture Ltd. 11 12 2014 Annual Report Gallant Venture Ltd. RESORT OPERATIONS Gallant Venture provides overall support facilities and services to resorts located in Bintan. We undertake the overall planning, development, operations and marketing of Bintan Resorts and provide services to the hotels and resorts located within Bintan Resorts that include ferry services and ferry terminal operations, tour operations, property rental, workers’ accommodation, medical support and estate and township maintenance such as road maintenance and drainage as well as operate a 24-hour crisis centre. Bintan Resorts continue to be a popular tropical of new hotels and shopping malls in Lagoi