contents contents 2 corporate information 3 corporate structure 4 group financial highlights 6...

Contents

2 Corporate Information

3 Corporate Structure

4 Group Financial Highlights

6 Profile of Directors

12 Chairman’s Statement

16 Statement on Corporate Governance

29 Additional Compliance Information

31 Statement on Risk Management and Internal Control

33 Audit Committee Report

39 Financial Statements

148 Analysis of Shareholdings

151 List of Properties

152 Notice of Annual General Meeting

Form of Proxy

2 Amcorp Properties Berhad

Corporate Information

BoARD oF DIReCtoRs

Azmi HashimNon-Independent Non-Executive Chairman

shalina AzmanNon-Independent Non-Executive Deputy Chairman

tan sri Dato’ Chen Wing sumIndependent Director

tan sri Lee Lam thyeIndependent Director

Dato’ Che Md nawawi bin IsmailIndependent Director

P’ng soo thengIndependent Director

CoMPAnY seCRetARIes

Johnson Yap Choon Seng (MIA 20766)Chua Siew Chuan (MAICSA 0777689)

PRInCIPAL PLACe oF BUsIness

2.01 PJ Tower18 Persiaran Barat46050 Petaling JayaSelangor, MalaysiaTel : +603-7966 2628Fax : +603-7966 2629Website : www.amcorpproperties.com

ReGIsteReD oFFICe

Level 7, Menara MileniumJalan DamanlelaPusat Bandar DamansaraDamansara Heights50490 Kuala Lumpur, MalaysiaTel : +603-2084 9000Fax : +603-2094 9940 / 2095 0292

tan Bun PooIndependent Director

Kamil Ahmad MericanIndependent Director

soo Kim WaiNon-Independent Non-Executive Director

Lee Keen PongManaging Director

shahman AzmanDeputy Managing Director

AUDItoRs

BDOChartered Accountants12th Floor, Menara Uni.Asia1008 Jalan Sultan Ismail50250 Kuala LumpurTel : +603-2616 2888Fax : +603-2616 2970

sHARe ReGIstRAR

Securities Services (Holdings) Sdn BhdLevel 7, Menara MileniumJalan DamanlelaPusat Bandar DamansaraDamansara Heights50490 Kuala Lumpur, MalaysiaTel : +603-2084 9000Fax : +603-2094 9940 / 2095 0292

stoCK eXCHAnGe LIstInG

Bursa Malaysia Securities BerhadMain Market(Listed on 28 November 1972)Stock name : AMPROPStock code : 1007

3Annual Report 2013

Corporate structuresignificant operating Companies

PRoPeRtY DeVeLoPMent & InVestMent

enGIneeRInG & InFRAstRUCtURe

otHeR AssoCIAtes

Malaysia

100% Amcorp Prima Realty Sdn Bhd

100% Distrepark Sdn Bhd

100% Regal Genius Sdn Bhd

100% Taifab Properties Sdn Bhd

100% Living Development Sdn Bhd

60% HDCam Sdn Bhd

London

100% Country Realty Limited

100% Neo Elements Limited

100% Old Burlington Limited

100% Campden Global Limited

60% Merchant Alpha Limited

Mechanical & electrical engineering

51% Blue Star M&E Engineering

Sdn Bhd

100% AMBC Transmission Sdn Bhd

Power Generation

100% Amcorp Power Sdn Bhd

100% Amcorp Perting Hydro Sdn Bhd

Highway operation

20% Kesas Holdings Berhad

40% Augustland Hotel Sdn Bhd

20% Bangi Hotel Sdn Bhd


Group Financial Highlights

FINANCIAL HIGHLIGHTS FY2013

RM 96.8 millionPRoFIt AttRIBUtABLe to oWneRs

RM 1.27net Assets PeR sHARe

3senDIVIDenD PeR sHARe

16.89seneARnInGs PeR sHARe

RM 109.3 millioneARnInGs BeFoRe InteRest, tAX AnD DePReCIAtIon

22%net DeBt / eQUItY *

13.9%RetURn on AVeRAGe eQUItY

* Net debt represents total bank borrowings less deposits with financial institutions and cash and bank balances.

5Annual Report 2013

Group Financial Highlights 5-Year Financial Highlights

Financial Year ended 31 March 2009 2010 2011 2012 2013

PRoFItABILItY Revenue (RM’000) 176,495 240,702 110,111 256,831 174,048 Profit before taxation (RM’000) 9,915 22,901 52,331 101,061 95,907 Taxation (RM’000) 8,536 13,019 (1,344) 2,607 785 Profit for the year (RM’000) 18,451 35,920 50,987 103,668 96,692 Attributable to : Owners of the parent (RM’000) 17,678 33,660 48,681 101,976 96,796 Non-controlling interests (RM’000) 773 2,260 2,306 1,692 (104) KeY stAteMent oF FInAnCIAL PosItIon DAtATotal assets (RM’000) 578,915 943,046 966,286 909,650 1,088,040 Issued share capital (RM’000) 477,341 287,731 287,731 287,731 288,981 Equity attributable to owners (RM’000) 372,998 525,208 570,433 661,244 732,558 Total bank borrowings (RM’000) 69,091 264,600 270,671 167,501 245,919 No. of ordinary shares in issue (‘000) 954,681 575,461 575,461 575,461 577,961

sHARe InFoRMAtIonReturn on average equity (%) 5 7 9 17 14 Gearing ratio (%) 16 34 32 20 25 Gross dividend per share (sen) - - - 6 3 Basic earnings per share (sen) 6 7 8 18 17 Net assets per share attributable to owners (sen) 39* 91 100 115 127 Share price as at 31 March (sen) 30 42 44 46 66

* Before share consolidation exercise

2009 2010 2011 2012 2013

120,000

100,000

80,000

60,000

40,000

20,000

0

Profit attributable to owners (RM’000)

2009 2010 2011 2012 2013

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

Equity attributable to owners (RM’000)

2009 2010 2011 2012 2013

20

18

16

14

12

10

8

6

4

2

0

Basic earnings per share (sen)

2009 2010 2011 2012 2013

140

120

100

80

60

40

20

0

Net assets per share attributable to owners (sen)

96,796

732,558

17 127


Prof ile of Directors

AZMI HAsHIMNon-Independent Non-Executive Chairman

Encik Azmi Hashim, a Malaysian, aged 64, was appointed to the Board on 16 October 1991.

He is an accountant by training and has worked in various professional accounting firms both internationally and locally. He was the General Manager in Amcorp Properties Berhad and then Managing Director on 16 October 1991, Director/Adviser on 1 January 1998 and Chief Executive Officer on 1 February 2003. He was redesignated Executive Chairman on 30 July 2007 and subsequently, Non-Executive Chairman on 1 June 2013.

Encik Azmi also sits on the Board of Sapura Industrial Berhad.

sHALInA AZMAnNon-Independent Non-Executive Deputy Chairman

Puan Shalina Azman, a Malaysian, aged 46, was appointed to the Board on 30 July 2007.

She holds a Bachelor of Science in Business Administration majoring in Finance and Economics from Chapman University in California and in 1993, she obtained her Masters in Business Administration from University of Hull in United Kingdom.

Puan Shalina first gained invaluable experience in the media industry when she was a Business Development Officer with RCE Capital Berhad (“RCE”) in 1990. From 1995 to 1999, she was with Amcorp Group Berhad (“AMCORP”) as Senior Manager, Corporate Planning. In January 2000, she rejoined RCE as the Executive Director and became the Managing Director on 1 September 2000. She held the position until 31 July 2002, prior to assuming her current appointment as Deputy Managing Director of AMCORP.

Apart from AMCORP, Puan Shalina also sits on the Board of RCE.

7Annual Report 2013


tAn sRI DAto’ CHen WInG sUM Independent Director

Y. Bhg. Tan Sri Dato’ Chen Wing Sum, a Malaysian, aged 81, has been a Director of the Company from 8 August 1997 to 8 December 2000. He resigned from the Board when he was elected President of the Senate and on 29 May 2003, he was re-appointed as Independent Non-Executive Director of the Company following his retirement as President of the Senate.

Tan Sri Dato’ Chen is by profession, an advocate and solicitor. He read law in Lincoln’s Inn, London and now serves as Consultant to Messrs Michael Chen & Co. He also read Philosophy and Education in the Chinese University of Hong Kong.

He has been involved in politics and Government service since 1964 and has served as member of Parliament from 1964 to 1986 and member of the Senate from 1997 to 2003. He has also served as Parliamentary Secretary, Secretary General of Alliance, Minister with Special Function, Vice-President of MCA, Deputy President of MCA, Minister of Housing, Local Government and New Village, Treasurer General of Barisan Nasional, Deputy President of the Senate and President of the Senate during his tenure as member of Parliament and the Senate.

He has held positions of Chairman and Director in various corporations during 1972 to 2000. He also has vast experience in international affairs and during his term of office as President of the Senate, he had officially visited Japan, China, Middle East and Latin America.

Tan Sri Dato’ Chen is also the Deputy Chairman of Malaysian South-South Corporation Berhad.

tAn sRI Lee LAM tHYe Independent Director

Y. Bhg. Tan Sri Lee Lam Thye, a Malaysian, aged 67, was appointed to the Board on 1 March 2004.

Tan Sri Lee worked as a temporary school teacher after completing his secondary education at St. Michael’s Institution, Ipoh and later became a trade unionist. He was elected State Legislative Assemblyman for Bukit Nanas, Selangor from 1969 to 1974 and served as a Member of Parliament for Bandar Kuala Lumpur/Bukit Bintang from 1974 to 1990. Following his retirement from politics in 1990, he continued to do public service by contributing actively in the social arena.

He has served as Chairman of the National Services Training Council, member of the Malaysian Human Rights Commission from 2000 to 2002 and member of the Special Royal Commission to enhance the operation and management of the Royal Malaysian Police from February 2004 till May 2005.

Tan Sri Lee is presently the Chairman of the National Institute of Occupational Safety and Health (NIOSH) under the Ministry of Human Resources, and the Vice Chairman and Member of the Executive Council of the Malaysia Crime Prevention Foundation. He also serves as Chairman and member of Board of Trustees of various foundations and charitable organisations.

His directorships in other public companies include Media Prima Berhad and S P Setia Berhad.



DAto’ CHe MD nAWAWI BIn IsMAILIndependent Director

Y. Bhg. Dato’ Che Md Nawawi bin Ismail, a Malaysian, aged 63, was appointed to the Board on 30 July 2007.

Dato’ Nawawi holds a Bachelor of Laws from the International Islamic University of Malaysia and practiced as an advocate and solicitor in a legal firm between 1990 and 1991. Dato’ Nawawi was the Deputy Commissioner of Police of the Malaysian Police Force until his retirement in February 2006. He had held several key positions during his 36 years of service with the Malaysian Police Force including the position of Head of Criminal Investigation Department in the State of Sabah and Perlis, OCPD Cheras, Deputy Director Commercial Crime Division and Deputy Director, Criminal Investigation Department in Bukit Aman.

Dato’ Nawawi also sits on the Board of RCE Capital Berhad.

P’nG soo tHenGIndependent Director

Mr. P’ng Soo Theng, a Malaysian, aged 58, was appointed to the Board on 1 June 2010.

He holds a Bachelor of Science in Valuation and Estate Management from the University of the West of England (formerly known as Bristol Polytechnic). Mr. P’ng is a Fellow of the Royal Institution of Chartered Surveyors (RICS), a Fellow of the Institution of Surveyors Malaysia (ISM) and Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).

Mr. P’ng joined Messrs C H Williams Talhar & Wong, one of Malaysia’s leading real estate professional firm in 1981 and had held several senior positions until his redesignation where he now serves as Consultant of the firm. He was made Partner and Director of the firm in 1989 and Senior Executive Director in 2004. In C H Williams Talhar & Wong, his forte was undertaking consulting appointments and business development for the firm. Mr. P’ng was involved in the valuation exercise for the listing of several REIT companies as well as the sale, structuring, acquisition and due diligence for several high profile transactions involving hotels, commercial properties and commercial development projects. His prior experience stems from a near three year stint in the public sector where he rose to the rank of Acting State Director at the Valuation & Property Services Division, Ministry of Finance.

9Annual Report 2013


tAn BUn PooIndependent Director

Mr. Tan Bun Poo, a Malaysian, aged 63, was appointed to the Board on 1 June 2013.

He graduated with a Bachelor of Commerce from University of Newcastle, Australia in 1973 and obtained his Chartered Accountancy from Institute of Chartered Accountants, Australia in 1976. He is a member of the Malaysian Institute of Accountants, Malaysian Institute of Certified Public Accountants, Institute of Chartered Accountants in Australia and Malaysian Institute of Taxation.

Mr. Tan, a retired Senior Partner with Deloitte KassimChan has more than 37 years of experience in the audits of both private and public companies including banking, insurance and financial services, construction and property development, manufacturing, retailing (including hypermarkets), engineering, gaming and entertainment, leisure and hospitality, food and distribution and the service industry.

He was also involved in leading assignments related to outsourced internal audits and risk management services, initial public offerings, corporate restructuring, mergers and acquisitions, and financial due diligence.

He is a council member of the Malaysian Institute of Certified Public Accountants (MICPA). He is a member of the Accounting & Auditing Technical Committee of MICPA, Financial Statements Review Committee and Investigation Committee of MICPA. He also serves as Chairman of the Auditing & Assurance Standards Board, Malaysian Institute of Accountants.

Mr. Tan also sits on the Board of AmLife Insurance Berhad, Faber Group Berhad, QL Resources Berhad and RCE Capital Berhad.

KAMIL AHMAD MeRICAnIndependent Director

Encik Kamil Ahmad Merican, a Malaysian, aged 63, was appointed to the Board on 23 July 2013.

He graduated in Architecture from Universiti Teknologi Malaysia and the Architectural Association in London. He has worked in various architectural firms in London and Malaysia and possesses vast experience in the architectural field. He is currently the Chief Executive Officer of GDP Architects Sdn Bhd. Encik Kamil also serves as an external examiner for Universiti Teknologi Malaysia and Universiti Malaya.

He also sits on the Board of Eastern & Oriental Berhad and E&O Property Development Berhad.



soo KIM WAINon-Independent Non-Executive Director

Mr. Soo Kim Wai, a Malaysian, aged 52, was appointed to the Board on 30 July 2007.

Mr. Soo is a Chartered Accountant (Malaysian Institute of Accountants), a Certified Public Accountant (Malaysian Institute of Certified Public Accountants), Fellow of the Certified Practising Accountant (CPA), Australia and Fellow of the Association of Chartered Certified Accountants (ACCA), United Kingdom.

He joined Amcorp Group Berhad (“AMCORP”) in 1989 as Senior Manager, Finance and has since held various positions. He was appointed as a Director of AMCORP on 13 March 1996 and subsequently as Managing Director on 1 January 1999. Before joining AMCORP, he was in the accounting profession for 5 years with Deloitte KassimChan from 1980 to 1985 and with Plantation Agencies Sdn Bhd from 1985 to 1989.

Apart from AMCORP, his directorships in other public companies include AMMB Holdings Berhad, ECM Libra Financial Group Berhad, Kesas Holdings Berhad and RCE Capital Berhad. He also sits on the Board of British Malaysian Chamber of Commerce.

Lee Keen PonGManaging Director

Mr. Lee Keen Pong, a Malaysian, aged 51, was appointed Chief Executive Officer on 30 July 2007 and then to the Board as Executive Director on 19 November 2007. He was promoted to Managing Director on 21 February 2012.

Mr. Lee joined Amcorp Group Berhad (“AMCORP”) in 1991 and has held various positions including Managing Director of Mezzanine Capital (Malaysia) Sdn Bhd and was Head of Direct Investment and Property of AMCORP before he was promoted to his current appointment. Prior to that, he has many years of audit and consultancy experience with two international accounting firms, Coopers & Lybrand and KPMG.

Mr. Lee is a Chartered Accountant (Malaysian Institute of Accountants, Institute of Chartered Accountants England and Wales) and a Certified Public Accountant (Malaysian Institute of Certified Public Accountants). He has served as co-opted member on the Financial Statements Review Committee of Malaysian Institute of Certified Public Accountants.

His directorships in other public companies include Kesas Holdings Berhad and MCM Technologies Berhad.

11Annual Report 2013


sHAHMAn AZMAnDeputy Managing Director

Encik Shahman Azman, a Malaysian, aged 38, was appointed to the Board as Non-Independent Non-Executive Director on 2 June 2008. He was redesignated to Executive Director of the Company on 1 June 2010 and promoted to Deputy Managing Director on 21 February 2012.

After graduating from Chapman University, U.S.A. with a Bachelor of Communications, Encik Shahman joined Amcorp Group Berhad (“AMCORP”) in 1996. He was subsequently promoted to General Manager spearheading the Corporate Planning and Strategy portfolio. In 2001, he joined MCM Technologies Berhad, a subsidiary of AMCORP, as General Manager of Corporate Planning and Strategy. His last held position in MCM Technologies Berhad was Chief Investment Officer.

Encik Shahman later joined RCE Capital Berhad as Director of Corporate Affairs on 1 April 2004 and was promoted to Director of Strategic Business Unit on 1 January 2006.

His directorships in other public companies include AMCORP and RCE Capital Berhad.

DetAILs oF MeMBeRsHIPs In BoARD CoMMIttees

CoMMIttees oF tHe BoARDAudit Committee nomination and

Remuneration Committee

employees’ share scheme

CommitteeAzmi Hashim ChairmanShalina Azman Member

Tan Sri Dato’ Chen Wing Sum Member ChairmanTan Sri Lee Lam Thye

Dato’ Che Md Nawawi bin Ismail Chairman Member

P’ng Soo Theng Member

Tan Bun Poo Member

Kamil Ahmad Merican

Soo Kim Wai Member Member Member

Lee Keen Pong Member

Shahman Azman

Notes:

Save as disclosed below, none of the Directors have any family relationship with any Directors and/or major shareholders of the Company:

(i) Encik Azmi Hashim is the brother of Tan Sri Azman Hashim (“TSAH”), a major shareholder of the Company;(ii) Puan Shalina Azman is the daughter of TSAH; and(iii) Encik Shahman Azman is the son of TSAH.

None of the Directors have any conflict of interest with the Company.

None of the Directors have been convicted for offences within the past 10 years.


Chairman’s statement

On behalf of the Board of Directors, I am pleased to present the 47th Annual Report and Audited Financial Statements of the Group and the Company for the financial year ended 31 March 2013

I am pleased to report another year of strong profit for Amcorp Properties Berhad. The Group achieved a profit after tax for the financial year ended 31 March 2013 of RM96.7 million, with shareholder’s funds standing at RM732.6 million. Our net asset per share rose 10%, from RM1.15 to RM1.27 per share. Profits for the year were derived from a mix of property projects both in London and Malaysia, such as Baker Street and Neo Bankside in Central London, the landed residential in Seri Mutiara, Kuala Lumpur and from Pajam, Negeri Sembilan.

London properties

The Group’s investments in prime central London properties continue to yield significant contributions to the Group’s profits.

At the beginning of the financial year, we released for sale all 19 residential units at Ninety-nine Baker Street after the property underwent a conversion from commercial office block to a modern residential block with high-grade quality finishing. Sale of Baker Street units was overwhelming and they were fully taken-up in 10 months with buyers spanning the globe from Asia to London. This project contributed RM25 million to the Group’s results. We still have two tenanted retail units remaining on the ground and lower ground floor with a market value in excess of GBP3 million and which are subject to a rent review before releasing them for sale to the market in the coming financial year.

The project mirrors our strategy of investing in London properties in an excellent location which offers us asset enhancement initiatives to capture potential capital upside within a short turnaround time to cater to the demand of purchasers and investors. For this project, we manage to derive a return on capital in excess of 110% in the span of less than 3 years.

Also during the current year, the Group disposed of a 10 unit residential block located near Kensington High Street for GBP9.3 million (approximately RM46 million) with a gain of GBP1.3 million (approximately RM6.6 million).

The Group’s joint venture with Native Land Limited and Grosvenor Limited on Pavilion D, NEO Bankside is also on track to meet the agreed business plan and financial returns. The NEO Bankside project is the winner of several awards including RESI Award 2012 for the Development of the Year and Small Developer of the Year (less than 1,000 units), Evening Standard New Homes Awards 2012 for best large development and the overall winner of the London Evening Standard Awards. Since the launch in July 2012, 36 out of 53 residential units in the development have been identified for sale and to date, it achieved an impressive 77% take-up rate. Meanwhile, the remaining 17 units are currently held for rental and investment. The NEO Bankside joint-venture has contributed RM7 million or 7% of the Group’s profit after tax.

“

“

13Annual Report 2013

Based on Knight Frank’s research, the prime central London property index saw an increase of 8.7% in whole of 2012 and up to June 2013 increased a further 3.7%. This was due partly to the Sterling’s weakness, safe-haven buying with Europe plagued by unemployment and a stagnant economy, the emerging market wealth creation driving geographically diverse international demand coupled with supply constraints in prime central London.

With this backdrop, the Group in November 2012 joint ventured with HPL (Mayfair) Pte. Ltd., a wholly-owned subsidiary of Hotel Properties Limited, and NL (Pollen) Ltd to acquire a building block at 29-30, Old Burlington Street, located in the highly prestigious and exclusive Mayfair. The project involves the redevelopment and conversion of the existing commercial building into high-end residential apartments. I am indeed excited with this project as an opportunity to acquire a freehold property of this scale in Mayfair is rare and where residential units are in short supply and comparable sales have proven to be in excess of GBP3,000 psf. The redevelopment plan, designed by renowned architect Rogers Stirk Harbour & Partners have been submitted to the local council and is currently pending their approval. This development is expected to be completed in middle 2016 and launched at a time when prices is expected to have appreciated further.

The Group also completed in March 2013 the acquisition of 60% interest in 4b Merchant Square, Paddington, London consisting of 60 residential apartments with 60 car parks with a total value of GBP49.3 million or RM230.2 million. Merchant Square is located in the heart of Central London and is part of the Paddington Basin Waterside Development, which is one of Europe’s largest regeneration projects. With close proximity to the Paddington Station, it benefits from excellent connectivity to the rest of London and UK. The Group intends to hold this for investment and refurbish them before releasing it in the market at the right time.

Malaysia Properties

On the local front, the Group continues to dispose its balance of properties.


The sale of development land in Pajam, Negeri Sembilan netted the Group a gain of RM23.8 million with cash proceeds of RM46.3 million. This was consistent with our previous year’s strategy of disposing non-market fronting assets to be deployed for investments with higher return on capital.

During the year, we delivered the keys to our proud Seri Mutiara purchasers who have seen significant appreciation since the date of purchase. I am also happy to mention that our property development project, Kayangan Heights, the exclusive residential bungalow development in Shah Alam was bestowed with the Malaysia Landscape Architecture Awards (“MLAA”) Excellence Award for the year 2012 by the Institute of Landscape Architects Malaysia under the Property Developer Awards in Landscape Planning & Development Category. The MLAA Excellence Award is presented to outstanding Malaysian landscape architecture consultancy firms and developers for projects completed in and abroad Malaysia. The award honors the best practices in landscape architecture from various aspects of the industry as well as other related fields.

Power & Infrastructure

As part of the Group’s strategy to gain a stronger footing in businesses with recurring and sustainable income, we made further inroad into the renewable energy sector during the year by developing a solar plant under the Feed-in-Tariff system of the Renewable Energy Act 2011.

Energy generation in Malaysia is projected to grow over the outlook period at an average annual rate of 2.8%, doubling from 105.1TWh in 2009 to 217TWh in 2035. The impending reduction of fossil fuel subsidies, depleting resources, limited alternative power sources and greater environmental awareness have ignited a shift in energy reliance towards renewable energy.

In May 2013, our Group signed renewable energy power purchase agreements with Tenaga Nasional Bhd (TNB) for the supply of total 10.25 megawatt (MW) using solar photovoltaic over a period of 21 years. The renewable energy solar farm located in Gemas, Negeri Sembilan, is expected to be the largest single site solar farm in Malaysia upon commencement of generation by 4th quarter 2013. The earnings from the solar plants are expected to contribute positively to the future earnings of the Group.



I am also pleased to highlight our 4MW Sungai Perting Mini Hydro Power Station located at Sungai Perting, Bentong was selected as winner in the “On-Grid” category in the ASEAN Energy Awards 2012 and Silver Award of Merit for Category 4 - Renewable Energy in the Engineering Award 2013. This mini hydro project is unique as its power house is located above the Chamang Waterfall and its water emission in turn forms part of the picturesque waterfall at the popular recreational site. The environmental steps taken to minimize any environmental impact in the construction and subsequent performance of the plant was one of the key considerations in us receiving this high accolade. The Group is now seeking to upgrade the power plant by a further 2MW to tap on the available water flow in order to harvest a higher electricity output which is expected to come on stream in 2015.

With our experience and technical knowledge from our power projects, the Group seeks to expand its renewable energy business and is currently in negotiation with business partners to develop new power plants. These projects will provide the Group with sustainable earnings to counter any cyclical nature in other business divisions.

KESAS, our associate has also done well contributing RM32.5 million to our profit after tax. The concession inked an agreement with the government to restructure its toll rates by extending the concession period by another 5 years. As part of the toll restructuring, KESAS was compensated for the non-increase in tariff for 2012 as well as saw a higher traffic volume by 5% to an average of more than 290,000 vehicles per day.

engineering

The Engineering Division continues to perform reasonably well and pursue viable projects in the market. During the current year, AMBC Transmission Sdn Bhd has successfully secured contracts with TNB for the total contract value of RM36.6 million. Blue Star M&E Engineering Sdn Bhd continues to focus on its mechanical engineering works on Heating, Ventilation and Air-Conditioning (‘HVAC’) projects and has recently secured a new contract with Hilton Puchong with the contract value of RM12.3 million.

shareholders’ Value and Returns

The Group’s strong financial performance has coincided with the impressive share performance in Bursa Malaysia. Our share price increased 92% from 45.5 sen at the beginning of the financial year to a high of 87.5 sen on 23 July 2013. During the same period, the KLCI increased 13%. The Group remains mindful of balancing returns to shareholders together with facilitating future growth. A healthy and strong balance sheet will enable us to take on the existing and future projects in properties and renewable energy.

A final dividend of 3 sen per ordinary share, less tax of 25%, was paid on 25 September 2012 for the financial year ended 31 March 2012. The Board has proposed a final dividend of 3 sen per ordinary share, less tax of 25% for the approval of the shareholders at the forthcoming Annual General Meeting.

L to R:• PresentationoftheASEANEnergyAward2012inPhnomPenh,Cambodia• ASEANEnergyAward2012• SilverAwardofMerit2013

contents contents 2 corporate information 3 corporate structure 4 group financial highlights 6...

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