UR OCONTENTS ANNUAL REPORT 2019 OUR OUR STRATEGY BUSINESS & ACHIEVEMENTS MANAGEMENT DISCUSSION AND ANALYSIS 04 Corporate Information 22 Management Discussion and pg. 22 05 Our Vision. Our Mission Analysis FINANCIAL 06 Corporate Profile 38 Mah Sing's Value Creation STATEMENTS 07 Luxury Made Affordable Model 08 Corporate Milestones 40 Review of Operations 10 Corporate Structure 11 Group Five-Year Financial Highlights 12 Awards and Recognition pg. 117 14 Snapshots In 2019 18 Mah Sing In The News COVER RATIONALE Year 2019 is an important milestone for Mah Sing as we Ultimately, our hope is to reinvent spaces and enhance the celebrated our silver jubilee, marking our 25 th anniversary quality of life of our stakeholders. This a commitment that in the property development industry. Leveraging on over we make to all of them. Throughout these 25 years, we have two decades of experience, we have grown as one of fulfilled our promises and we will continue delivering quality Malaysia’s leading property developers. products to create positive impact in the lives of the people residing within the space they call home. In the past one year, Mah Sing has continued to adopt effective marketing strategies, engage creative The cover design is a tribute to our 25th anniversary in the collaborations and aggressive land banking activities to stay property industry and the headline “25 Years Of Excellence” ahead in the industry. Our nimble business model, fast highlights the Group's outstanding achievements over the execution culture, innovative ideas and financial prudence past quarter century. Being bold and majestic, the cover has contributed to our success. design mirrors our dynamism and confidence as we continue our journey of growth into the future. Here’s to Sustainability is embedded within the core of Mah Sing’s another 25 years of reinventing spaces and enhancing lives. vision. We strive to preserve, innovate, and push boundaries towards building a sustainable future. We will continue to prioritise sustainability in our strategic activities and operations to deliver long-term values to the Group and our stakeholders. OUR LEADERSHIP OUR SUSTAINABILITY OUR CORPORATE STATEMENT GOVERNANCE 54 Profile of the Board of Directors 66 Our Sustainability Statement 90 Corporate Governance 62 Profile of Senior Management Overview Statement Team 108 Directors’ Responsibility Statement in Respect of the Preparation of the Annual Audited Financial Statements 109 Additional Compliance Information 110 Statement on Risk Management and Internal Control 113 Audit Committee Report FINANCIAL STATEMENTS ADDITIONAL NOTICES INFORMATION 118 Directors’ Report 238 Properties Owned By The 246 Notice of Twenty-Eighth Annual 123 Independent Auditors’ Report Group General Meeting 128 Statements of Profit or Loss 243 Statistics of Shareholdings 253 Notice of Dividend Entitlement 129 Statements of Other Comprehensive and Payment Income 253 Statement Accompanying 130 Statements of Financial Position Notice of Annual General 132 Statements of Changes in Equity Meeting 136 Statements of Cash Flows 254 Administrative Guide for the 139 Notes to the Financial Statements Twenty-Eighth Annual General 236 Statement by Directors Meeting 237 Declaration by the Officer Proxy Form Primarily Responsible for the Financial Management of the Company 2 MAH SING GROUP BERHAD Our Business UR OBUSINESS Mah Sing has become a household name in the property development industry - best known as a market driven property developer that constantly strives to deliver quality homes, realising the people’s dream to own their ideal home. Leveraging on the Group’s vast experience of over 25 years, Mah Sing has been finding innovative ways to offer products and services of stellar quality and excellence. In 2019, the Group has acquired three new lands in Klang Valley, which fits the Group’s strategy of landbanking for niche projects in strategic locations which are ready for immediate development. To date, Mah Sing’s presence spans across Greater Kuala Lumpur, Klang Valley, Penang Island, Johor, and Sabah with 50 projects, cementing the Group’s footprint in the property development industry as one of the leading property developers in Malaysia. Our Business ANNUAL REPORT 2019 3 4 MAH SING GROUP BERHAD Our Business ORPORATE CINFORMATION BOARD OF DIRECTORS TAN SRI DATO’ SERI SITI DATUK HO HON SANG ABD MALIK BIN A RAHMAN NORMA BINTI YAAKOB Chief Executive Officer Independent Non-Executive Director Chairperson/Senior Independent Non-Executive Director DATO’ STEVEN NG POH SENG HO KIM POI Executive Director Independent Non-Executive Director TAN SRI DATO’ SRI LEONG HOY KUM DATUK LEONG YUET MEI JANE LEONG JHENG-YI Group Managing Director/ Executive Director Alternate Director to Tan Sri Dato’ Sri Group Chief Executive Leong Hoy Kum AUDIT COMMITTEE REGISTERED OFFICE STOCK EXCHANGE LISTING ABD MALIK BIN A RAHMAN (Chairman) Penthouse Suite 1 Main Market of Bursa Malaysia TAN SRI DATO’ SERI SITI NORMA Wisma Mah Sing Securities Berhad BINTI YAAKOB No. 163, Jalan Sungai Besi HO KIM POI 57100 Kuala Lumpur STOCK SHORT NAME t 603-9221 8888 NOMINATION COMMITTEE f 603-9222 2833 MAHSING (8583) TAN SRI DATO’ SERI SITI NORMA AUDITORS INDEX BINTI YAAKOB (Chairperson) ABD MALIK BIN A RAHMAN Deloitte PLT (LLP0010145-LCA) Bursa Malaysia Property Index Chartered Accountants (AF0080) REMUNERATION COMMITTEE Level 16, Menara LGB WEBSITE 1, Jalan Wan Kadir TAN SRI DATO’ SERI SITI NORMA Taman Tun Dr. Ismail www.mahsing.com.my BINTI YAAKOB (Chairperson) 60000 Kuala Lumpur TAN SRI DATO’ SRI t 603-7610 8888 INVESTOR RELATIONS LEONG HOY KUM f 603-7726 8986 ABD MALIK BIN A RAHMAN t 603-9221 8888 BANKERS e [email protected] SECRETARIES Alliance Investment Bank Berhad YANG BAO LING Al-Rajhi Banking & Investment (SSM PC No. 202008002683) Corporation (Malaysia) Berhad (MAICSA 7041240) Bank Islam Malaysia Berhad KUAN HUI FANG CIMB Bank Berhad (SSM PC No. 202008001235) HSBC Amanah Malaysia Berhad (MIA 16876) HSBC Bank Malaysia Berhad Industrial And Commercial Bank of China REGISTRAR (Malaysia) Berhad Malayan Banking Berhad Tricor Investor & Issuing House Maybank Islamic Berhad Services Sdn Bhd OCBC Bank (Malaysia) Berhad (Registration Number: Public Bank Berhad 197101000970 (11324-H)) Public Islamic Bank Berhad Unit 32-01, Level 32, Tower A RHB Bank Berhad Vertical Business Suite, Avenue 3 PT Bank Central Asia Tbk Bangsar South PT Bank CIMB Niaga Tbk No. 8, Jalan Kerinchi PT Bank Multiarta Sentosa 59200 Kuala Lumpur PT Bank Permata Tbk t 603-2783 9299 The Bank of Tokyo-Mitsubishi UFJ, Ltd f 603-2783 9222 Our Business ANNUAL REPORT 2019 5 OUR VISION INVENTING SUSTAINABLE FUTURE LIVING THAT ENHANCES QUALITY OF LIFE OUR MISSION EMPOWERING MARKET QUALITY CARING TRENDS PROMISE EMPOWERING Anticipating future Delivering our CARING for our people MARKET QUALITY the people, towards personal TRENDS and PROMISE. community and and professional providing the the environment. growth through right solutions. continuous learning. 6 MAH SING GROUP BERHAD Our Business ORPORATE CPROFILE Mah Sing Group Berhad (Mah Sing) was listed on Bursa Malaysia in 1992 and ventured into property development in 1994. At present, Mah Sing has 50 projects in Greater Kuala Lumpur, Klang Valley, Penang Island, Johor, as well as Sabah. Mah Sing is one of Malaysia’s fully integrated developers with residential, commercial, hospitality and industrial developments. A leading property developer in Malaysia, Mah Sing’s diverse portfolio includes high-rise residential projects, masterplanned townships, integrated developments, Grade A office buildings, retail projects, SoHo and industrial developments. For over two decades, Mah Sing has continuously created iconic developments that have won over 250 domestic and global awards for company performance, corporate governance, product design, concept, innovation and quality. The Group’s efforts to deliver quality homes to meet current market demand was well recognised as the Group clinched various prestigious local and international industry accolades. In 2019 alone, Mah Sing was voted the winner of “People’s Choice Award” and received the “Visionary Developer Award”, along with the “Best Residential Landed Development” for M Aruna in Rawang at the iProperty Development Excellence Awards, whilst taking home Gold for the Most Innovative and Sustainable Office Design at the Asia Recruitment Awards. Continuing the success story, the Group also won two categories under the Sustainable Development Goals No. 1 (No Poverty) and No. 17 (Partnership for the Goals) for its Mushroom Cultivation Project, an initiative by Mah Sing’s Corporate Responsibility arm, Mah Sing Foundation at the JCI Malaysia Sustainable Development Awards, reinforcing its renewed commitment for best sustainability practices. Adding onto the elation, the Group was once again ranked as one of the Top 10 Property Developers in Malaysia at The Edge Property Excellence Awards and honoured with the StarProperty.my’s The All Star Award as one of the Top Ranked Developers of the Year, coupled with the ASEAN Property Awards’ Best Developer Award. As a market driven developer, the Group’s key focus is to enhance life by inventing fit-for-purpose quality product offerings in prime locations with easy access to amenities, connectivity, and ready infrastructures. Upholding its tagline, "Reinvent Spaces. Enhance Life", Mah Sing will continue to build affordably priced products that suit current market demand. Our Business ANNUAL REPORT 2019 7 UXURY MADE L AFFORDABLE RISING APPETITE FOR MASS MARKET