MATRIX CONCEPTS HOLDINGS BERHAD 28 ANNUAL REPORT 2016 MATRIX CONCEPTS HOLDINGS BERHAD d’Tempat Country Club - kid’s play area HOSPITALITY UPLIFTING LIVES WITH SUPERIOR AMENITIES By anticipating the needs of those who reside in our communities, Matrix is able to fulfil their expectations while enriching their lives in so many meaningful ways. ANNUAL REPORT 2016 29 CHAIRMAN’S STATEMENT MATRIX CONCEPTS HOLDINGS BERHAD DEAR VALUED SHAREHOLDERS, ON BEHALF OF THE BOARD OF DIRECTORS OF MATRIX CONCEPTS HOLDINGS BERHAD (“MATRIX”), I AM HEARTENED TO REPORT THAT WE DEMONSTRATED OUR RESILIENCE AMIDST THE CHALLENGING PROPERTY SECTOR IN THE 15 MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2016 (15M FP2016). For one thing, the implementation of the Goods and Services Still, new sales in Matrix remained sturdy, as indicated by Tax (GST) on 1 April 2015 had profound effects on demand the unabated demand of house buyers for affordable homes in the overall property market. This was further exacerbated within our sprawling townships with full facilities. Congruent by stricter lending measures imposed by financial institutions. to this stance, our flagship Bandar Sri Sendayan officially launched the d’Tempat Country Club in March 2015, designed Unsurprisingly, statistics from the National Property to imbue vibrancy and serve the needs of the township’s Information Centre corroborated the sentiment on the ground, residents and become the focal meeting point and recreational reporting a 10.5% decline in the total value of residential hub for Seremban and the state. property transactions in 2015, while the total number of transactions reduced 4.6%. We also noted keen interest in Bandar Seri Impian in Johor, as well as for industrial properties at our high-tech industrial park, Sendayan TechValley. These milestones formed a favourable backdrop for the Group’s financial performance in the period under preview. 30 ANNUAL REPORT 2016 LEADERSHIP AND PENYATA PERFORMANCE REVIEW PENGERUSI MATRIX CONCEPTS HOLDINGS BERHAD d’Tempat Country Club - pool view PARA PEMEGANG SAHAM YANG DIHARGAI SEKALIAN, SAYA BAGI PIHAK LEMBAGA PENGARAH MATRIX CONCEPTS HOLDINGS BERHAD (MATRIX ATAU KUMPULAN) DENGAN AMAT BANGGANYA INGIN MELAPORKAN BAHAWA WALAUPUN BERDEPAN DENGAN SEKTOR HARTANAH YANG MENCABAR SEPANJANG TEMPOH KEWANGAN 15 BULAN TAHUN KEWANGAN BERAKHIR 31 MAC 2016 (15B TK2016), NAMUN KAMI BERJAYA MENAMPILKAN TAHAP KETABAHAN YANG TINGGI. Salah satu daripada cabaran tersebut ialah pelaksanaan Sendayan telah melancarkan secara rasmi d’Tempat Country Cukai Barangan dan Perkhidmatan (GST) pada 1 April 2015 Club yang direka untuk memaparkan kerancakan di samping yang telah membawa kesan besar kepada pasaran hartanah memenuhi keperluan para penduduk perbandaran ini serta secara keseluruhan di mana lonjakan permintaan sepanjang menjadikannya titik pertemuan utama dan hab rekreasi untuk tempoh sebelum GST mula menyusut pada suku kedua bandar Seremban dan Negeri Sembilan. dan seterusnya. Keadaan ini telah diburukkan lagi dengan pengetatan syarat pemberian pinjaman oleh institusi kewangan. Kami juga dapat melihat minat ketara yang ditunjukkan terhadap Bandar Seri Impian di Johor dan hartanah perindustrian di Justeru, tidak hairanlah apabila statistik daripada Pusat taman perindustrian teknologi-tinggi kami iaitu, Sendayan Maklumat Hartanah Negara memaparkan sentimen sebenar TechValley. yang berlaku di pasaran dengan melaporkan penyusutan nilai urusniaga hartanah kediaman sebanyak 10.5% pada tahun Semua mercutanda ini telah membentuk latar belakang 2015, sementara bilangan urusniaga pula jatuh sebanyak 4.6%. yang menggalakkan kepada pencapaian prestasi kewangan Kumpulan pada tahun ditinjau. Walau bagaimanapun, jualan baharu di Matrix kekal mantap di mana para pembeli menunjukkan pilihan yang teguh untuk kediaman mampu milik di sekitar perbandaran yang dilengkapi kemudahan sepenuhnya. Sejajar dengan kedudukan ini, pada bulan Mac 2015, hartanah utama kami iaitu Bandar Sri ANNUAL REPORT 2016 31 CHAIRMAN’S STATEMENT MATRIX CONCEPTS HOLDINGS BERHAD REVENUE 15M FY2016 912.2M 2014 - RM598.8 MILLION Hijayu Resort Homes – Elymus Semi-detached Financial Performance For like-to-like comparison on the twelve-month basis, the twelve-month period ended 31 December 2015 (12M FY2016) Matrix recorded revenue of RM912.2 million and pre-tax saw the Group record revenue of RM700.9 million and profit of RM355.7 million for 15M FP2016. pre-tax profit of RM286.5 million, both 17.1% higher than RM598.8 million and RM244.6 million in financial year 2014. While there is no equivalent year-on-year comparison to the Net profit for 12M FY2016 stood at RM213.2 million, 17.0% previous 12-month financial year ended 31 December 2014 higher from RM182.2 million in FY2014. (FY2014), the 52.3% and 45.4% jump in 15M FP2016 revenue and pre-tax profit from RM598.8 million and RM244.6 million The Group’s commendable report card was supported by an respectively in FY2014 was substantially above the 25% mark equally-strong strong balance sheet as at 31 March 2016. required to compensate for the extra quarter in 15M FP2016. Shareholders’ equity grew to RM885.2 million from RM663.8 The outstanding performance was attributed to new launches million as at 31 December 2014 on higher retained profits and and healthy take-up across the Group’s projects in Bandar Sri larger share capital. While total borrowings rose to RM204.4 Sendayan and Bandar Seri Impian, further strengthened by million from RM78.2 million previously, this was corresponding project completions and sales of industrial properties. with our rigorous development activities and land banking initiatives in order to sustain our momentum for the long term. Correspondingly, the Group charted net profit of RM260.9 million in 15M FP2016, growing 43.2% from RM182.2 million in FY2014. 32 ANNUAL REPORT 2016 LEADERSHIP AND PENYATA PERFORMANCE REVIEW PENGERUSI MATRIX CONCEPTS HOLDINGS BERHAD HASIL TK2016 912.2J 2014 - RM598.8 JUTA Pencapaian ini telah membolehkan Kumpulan merekodkan keuntungan bersih sebanyak RM260.9 juta pada tempoh 15B TK2016, meningkat sebanyak 43.2% berbanding RM182.2 juta pada TK2014. Residensi SIGC – Lifestyle Pavilion Bagi tujuan perbandingan mengikut kiraan dua belas bulan, Kumpulan mencapai hasil mencatat rekod sebanyak RM700.9 juta dan keuntungan sebelum cukai sebanyak RM286.5 juta Prestasi Kewangan bagi tempoh dua belas bulan berakhir 31 Disember 2015 (12B TK2016), kedua-duanya 17.1% lebih tinggi berbanding Matrix merekodkan hasil sebanyak RM912.2 juta dan RM598.8 juta bagi hasil dan RM244.6 juta bagi keuntungan keuntungan sebelum cukai sebanyak RM355.7 juta bagi sebelum cukai pada TK2014. Keuntungan bersih bagi 12B tempoh 15B TK2016. TK2016 pula berjumlah RM213.2 juta, 17.0% lebih tinggi berbanding RM182.2 juta pada TK2014. Walaupun tiada perbandingan bersamaan dari tahun ke tahun dengan tempoh kewangan 12 bulan sebelumnya berakhir pada Laporan yang sungguh memberangsangkan ini disokong pula 31 Disember 2014 (TK2014), namun lonjakan hasil sebanyak dengan kunci kira-kira yang teguh pada 31 Mac 2016. 52.3% bagi tempoh 15B TK2016 daripada RM598.8 juta bagi TK2014 dan keuntungan sebelum cukai sebanyak 45.4% Ekuiti pemegang saham berkembang kepada RM885.2 juta bagi tempoh 15B TK2016 daripada RM244.6 juta bagi TK2014 berbanding RM663.8 juta pada 31 Disember 2014 hasil melebihi secara ketara paras 25% yang diperlukan untuk keuntungan tersimpan lebih tinggi dan modal saham yang menampung suku tambahan 15B TK2016. lebih besar. Walaupun jumlah pinjaman meningkat kepada RM204.4 juta daripada RM78.2 juta sebelumnya, namun ia Pencapaian prestasi luarbiasa yang disumbang oleh beberapa sejajar dengan kepesatan aktiviti dan inisiatif tanah simpanan pelancaran baharu dan kadar pembelian menggalakkan bagi bagi mengekalkan momentum jangka masa panjang kami. seluruh projek Kumpulan di Bandar Sri Sendayan dan Bandar Seri Impian telah diperkukuhkan lagi dengan penyiapan beberapa projek dan jualan hartanah perindustrian. ANNUAL REPORT 2016 33 CHAIRMAN’S STATEMENT MATRIX CONCEPTS HOLDINGS BERHAD Launching M.Carnegie Dividends The corporate exercise was deemed completed on 24 July 2015, with the listing of 77.3 million new ordinary shares of Matrix has consistently paid dividends to our shareholders RM1.00 each, together with 77.3 million warrants on the Main since our listing in 2013. Market of Bursa Malaysia Securities Berhad. In respect of 15M FP2016, the Group paid total dividends Boardroom Changes amounting to 18.79 sen per share. These were declared through five interim single-tier dividends of 3.641 sen, 3.50 Matrix noted several key boardroom changes during the sen, 3.50 sen, 3.75 sen, and 4.40 sen respectively. period under review. The total dividend payout of RM104.3 million represents 40% I am pleased to welcome Dato’ Lim Kiu Hock as Executive of net profit for 15M FP2016. Director, as well as Dato’ Hajah Kalsom Binti Khalid and Dato’ Hon Choon Kim as Independent Non-Executive Directors. Corporate Developments I am confident that they would bring a breadth of experience invaluable to Matrix success. Corporate Exercise The Group also announced that Puan Salmah Binti Sharif Matrix had undertaken a corporate exercise comprising a ceased to be an Independent Non-Executive Director on 1-for-6 bonus issue of new shares together with 1-for-6 free 13 June 2015 due to her demise. The Board records its warrants. condolences to her family and loved ones on their bereavement. The bonus issuance was undertaken to improve the liquidity of Matrix shares, while the free warrants would allow our existing and potential shareholders to participate in the Group’s growth, as well as help the Group to raise additional working capital of up to RM185.6 million upon full exercise over a five year period until 2020. 1 Adjusted for issuance of 1-for-6 bonus shares and 1-for-6 bonus warrants on 24 July 2015. 34 ANNUAL REPORT 2016 LEADERSHIP AND PENYATA PERFORMANCE REVIEW PENGERUSI MATRIX CONCEPTS HOLDINGS BERHAD Matrix Global Schools - aerial view Dividen Langkah korporat ini dianggap selesai pada 24 Julai 2015 Matrix telah membayar dividen secara konsisten kepada para dengan penyenaraian 77.3 juta saham biasa baharu berharga pemegang saham sejak penyenaraian kami pada tahun 2013.