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HUA YANG BERHAD ANNUAL REPORT 2017

OUR NEwsBOARD

Berita Harian • 10 September 2016

The Star • 9 September 2016

18

Kosmo • 21 February 2017

Focus Malaysia • 28 January 2017 Sinar Harian • 20 March 2017

TheEdgeProperty.com • 31 January 2017


GRoUp lEADERsHipBoARD of DiREctoRs

chew Hoe soonNon-Independent

Non-Executive Director

Member of Audit Committee,

Remuneration Committee

and Nomination Committee

tan sri Dato’ seri Dr. ting chew pehChairman/Independent Non-Executive Director

Chairman of Audit Committee and

Nomination Committee

Member of Remuneration Committee Ho Wen YanChief Executive Officer/

Executive Director


20

Dato’ Wan AzahariBin Yom AhmadIndependent


Ho Mook leongNon-Independent


chew po simNon-Independent


Dato’ tan Bing HuaSenior Independent


Chairman of Remuneration Committee

Member of Audit Committee

and Nomination Committee

20


pRofilE of DiREctoRs

Tan Sri Dato’ Seri Dr. Ting Chew Peh Aged 74, Malaysian, Male. Chairman/Independent Non-Executive Director Chairman of Audit Committee and Nomination Committee Member of Remuneration Committee

Tan Sri Dato’ Seri Dr. Ting Chew Peh was appointed to the Board of Hua Yang Berhad (“Hua Yang”) on 1 June 2000 and was made the Chairman of the Board. He has a Bachelor of Arts Degree from University of Malaya and a Master of Science Degree from University of London. He also holds a Doctorate in Philosophy, which he obtained from University of Warwick.

Tan Sri Dato’ Seri Dr. Ting started his career as a lecturer in the Faculty of Social Sciences and Humanities at Universiti Kebangsaan Malaysia in 1974 until 1980. He was then appointed as an Associate Professor at the Faculty until 1987.

In 1987, Tan Sri Dato’ Seri Dr. Ting ventured into politics with his election as a Member of Parliament for the Gopeng constituency, which he held until the 2008 general elections. He previously served as a Parliamentary Secretary of the Ministry of Health (1988 – 1989), Deputy Minister in the Prime Minister’s Department (1989 – 1990), Minister of Housing and Local Government (1990 – 1999) and Secretary-General of Malaysian Chinese Association (MCA) (1990 – 2005).

He currently sits on the Boards of Puncak Niaga Holdings Berhad, Johan Holdings Berhad and UTAR Education Foundation, Sycal Ventures Berhad and also serves as a Director of several private companies.

Ho Mook Leong Aged 57, Malaysian, Male.

Non-Independent Non-Executive Director

Mr. Ho Mook Leong was appointed to the Board of Hua Yang on 31 January 2002. He has a Degree in Civil Engineering from Ohio State University, United States of America.

Mr. Ho Mook Leong started his career as a Site Engineer with IOI Properties Berhad in 1984 and subsequently left to join Hua Yang as Project Manager in 1988 to oversee the property development projects in Ipoh. From 1991 to 1997, Mr. Ho Mook Leong was on secondment to one of the associate companies to manage another mixed property development project in Ipoh. Having acquired extensive experience and expertise in project management and construction related fields over the years, he became General Manager of Hua Yang in 1997 to oversee all the development projects of Hua Yang Group.

Mr. Ho Mook Leong left Hua Yang in year 2000 to pursue his own consultancy business. In the preparation for the initial public listing of Hua Yang in 2001/2002, Mr. Ho Mook Leong re-joined the Company as Executive Director on 2 January 2002. He was promoted to Chief Operating Officer and Chief Executive Officer of Hua Yang on 1 September 2003 and 1 June 2007 respectively. He resigned as Chief Executive Officer of Hua Yang on 19 August 2010 to pursue his own business interest and remains as Non-Executive Director on the Board of Hua Yang.

Chew Po Sim Aged 74, Malaysian, Female.

Non-Independent Non-Executive Director

Mdm. Chew Po Sim was appointed to the Board of Hua Yang on 27 January 2003. She holds a teaching certificate and on her early retirement from the teaching profession, she ventured into a horticulture trading business for more than 20 years.

Mdm. Chew Po Sim is also currently overseeing her investment holding company, namely Heng Holdings Sdn Berhad, the substantial shareholder of the Company.

22

Dato’ Wan Azahari Bin Yom Ahmad Aged 54, Malaysian, Male.

Independent Non-Executive Director

Dato’ Wan Azahari Bin Yom Ahmad was appointed to the Board of Hua Yang on 19 August 2010. He holds a certificate in Business Studies.

Dato’ Wan Azahari has 20 years of experience in the building and electrical construction industry. He is currently the Group Director to Yom Ahmad Ngah Holdings Sdn Bhd Group of Companies.

Ho Wen Yan Aged 43, Malaysian, Male.

Chief Executive Officer/Executive Director

Mr. Ho Wen Yan was appointed to the Board of Hua Yang on 1 June 2007. He received his architectural training in the United Kingdom at the University of Bath and the Architectural Association. He also holds a Master of Science (Construction Economics and Management) Degree from University College London. He joined Hua Yang on 20 October 2003 as a Project Coordinator at its Johor Branch. He has been an Executive Director of the Group since 1 June 2007 and was appointed Chief Executive Officer on 20 August 2010.

He was appointed to the Board of Magna Prima Berhad on 13 February 2017 as Executive Director.

chew Hoe soon Aged 65, Malaysian, Male. Non-Independent Non-Executive Director Member of Audit Committee, Remuneration Committee and Nomination Committee

Mr. Chew Hoe Soon was appointed to the Board of Hua Yang on 2 June 2003. He holds a Bachelor of Economics (Accounting) Degree (Honours) and a Diploma in Accounting, both from University Malaya. He is a member of the Malaysian Institute of Accountants (MIA).

Mr. Chew Hoe Soon has extensive working experiences in the field of finance and sales & marketing of consumer products, having held the position of Managing Director in a large multinational company for a number of years.

Dato’ Tan Bing Hua Aged 73, Malaysian, Male. Senior Independent Non-Executive Director Chairman of Remuneration Committee Member of Audit Committee and Nomination Committee

Dato’ Tan Bing Hua was appointed to the Board of Hua Yang on 16 January 2006. He graduated from University of Malaya with a B.A (Hons) degree in year 1967. In 1982, he decided to further studies in law, graduating with L.L.B. (Honours) degree from the University of London in 1985 and a Barrister-at-Law of the Lincoln’s Inn, England in 1986.

Dato’ Tan Bing Hua started his career in public service in Bank Negara Malaysia upon his graduation in 1967 where he served for a period of 15 years until 1982. He then practised law in the firm of Amin-Tan & Co in Kuala Lumpur from 1987 to 2012 upon his call to the Malayan Bar in 1987. Thereafter, he continued to practise law in the firm of Choong & Partners from 2013 to 2014.

He currently sits on the Board of Far East Holdings Berhad as an Independent Non-Executive Director.


FAMILY RELATIONSHIP

None of the Directors have any relationship with each other and major shareholders of Hua Yang

except that Ho Wen Yan is the son of Chew Po Sim and the nephew of Ho Mook Leong and Chew

Hoe Soon. Chew Po Sim and Chew Hoe Soon are siblings and Chew Po Sim is the sister-in-law of

Ho Mook Leong.

Chew Po Sim is the mother of Ho Min Yi, Ho Wen Yan, Ho Wen Han and Ho Wen Fan, the major

shareholders of Hua Yang.

CONFLICT OF INTEREST

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

LIST OF CONVICTIONS OF OFFENCE

None of the Directors have been convicted for any offences (other than traffic offences), public

sanction or received any penalty imposed by the relevant regulatory bodies inside or outside Malaysia

within the past five (5) years.

ATTENDANCE OF THE BOARD

All the Directors have complied with the minimum 50% attendance in respect of Board Meeting as

stipulated by the Listing Requirements. There were five (5) Board Meetings held during the financial

year ended 31 March 2017 and the attendance of each Director is as follows:-

NAME OF DIRECTOR ATTENDANCE

1. Tan Sri Dato’ Seri Dr. Ting Chew Peh 5/5

2. Ho Wen Yan 5/5

3. Dato’ Tan Bing Hua 5/5

4. Ho Mook Leong 5/5

5. Chew Po Sim 5/5

6. Chew Hoe Soon 5/5

7. Dato’ Wan Azahari Bin Yom Ahmad 4/5

otHER iNfoRMAtioN of DiREctoRs

24

Ho Wen Yan Aged 43, Malaysian, Male.

Chief Executive Officer / Executive Director

Mr. Ho’s profile is set out on page 22 of this Annual Report.

Tan Hwai LunAged 40, Malaysian, Male.

Chief Financial Officer

Mr. Tan joined Hua Yang as Financial Controller in July 2011 and was promoted to Chief Financial Officer in May

2017. He is a member of Malaysia Institute of Accountant (“MIA”) and CPA Australia.

He has more than 10 years of financial management working experience. He oversees the finance strategy and

planning of the Group.

Ng Kok HongAged 41, Malaysian, Male.

General Manager

Mr. Ng joined Hua Yang in March 2011 as Branch Manager in lpoh. He graduated with Degree in Civil Engineering

(Hons.) from University of Malaysia, Sabah.

He has more than 15 years of working experience in planning, directing, designing, and coordinating various

property development projects. His main portfolio is overseeing Northern operation that covers Perak and

Penang.

Wong Kam MoiAged 54, Malaysian, Female.

Branch Manager

She joined Hua Yang in 2003 and her main portfolio is to oversee all operational aspects of Johor Branch.

She has more than 25 years of working experience in planning, organising, preparing and arranging sales

implementation strategies.

Yeoh Swee HengAged 48, Malaysian, Male.

Assistant General Manager

Mr. Yeoh joined Hua Yang as Project Manager in 31 March 2008 and was promoted to Assistant General Manager

in April 2015. He obtained his Bsc (Hons) Building Construction Management from Sheffield Hallam University,

United Kingdom.

He has extensive experience in construction and property development. He oversees property development

operation and land search of the Group.

pRofilE of sENioR MANAGEMENt


Nurhayati Binti ZubirAged 41, Malaysian, Female.


She joined Hua Yang in November 2013 as the Human Resource Manager and was promoted to Assistant General

Manager in April 2017. She is a graduate from the University of North London, United Kingdom with a Degree

(Hons) Human Resource with Marketing in 1999.

On joining Hua Yang Berhad, she brought with her 13 years of working experience in the Securities Industry

Development Corporation (SIDC), the development arm of the Securities Commission of Malaysia in the areas of

training, marketing and corporate services as well as human resource. Currently, she oversees the effectiveness

of the human capital functions of the Group.

Tan Kwee FarAged 44, Malaysian, Female.


Ivy Tan joined Hua Yang in May 2013 as Administration Manager and was promoted to Assistant General Manager

in April 2017. She holds certificate of Journalism in year 1993 and LCCI Higher Diploma in year 1995.

She has more than 15 years of working experience in the areas of Accounts & Finance, Administration and Human

Resource. Currently, she is responsible for office administration and operations functions of the Group.

Notes:

Save for the Chief Executive Officer who has family relationship with other Directors and/or major shareholder of Hua Yang

Berhad as disclosed on page 23 of this Annual Report, none of the Key Senior Management have:

• Any family relationship with any Directors and/or major shareholders of Hua Yang Berhad;

• Any conflict of interest with Hua Yang Berhad; and

• Any conviction for offences (other than traffic offences), public sanction or received any penalty imposed by the relevant

regulatory bodies inside or outside Malaysia within the past five (5) years.

26

Tan Sri Dato’ Seri Dr. Ting Chew Peh Chairman

cHAiRMAN’s stAtEMENt

Dear Shareholders,

It has been an eventful

year for Hua Yang

Berhad (“Hua Yang”) as

we continue to build on

our platform and extend

our reach as one of the

leading developers of

affordable homes in

Malaysia.


ChAirMAn’s stAteMent (COnt’D)

Aerial view of Ridgewood @ Taman Bercham Utara, Perak

Even as the property market remains subdued, we have been unwavering in the pursuit of our pioneering

vision to enable affordable home ownership for Malaysians. Our achievements in no small measures are

attributed to the perseverance of our resourceful and dynamic management and project teams. Led by

Ho Wen Yan, our Chief Executive Officer, we have firmly kept our pulse on current market trends, and

progressively delivered quality and innovative development products that have enabled us to stamp

our growing presence in the affordable homes segment.

Amongst our launches in the year, I am particularly proud of our maiden foray into the Penang property

market. Our launch of MERITUS RESIDENSI serviced apartments on Penang Mainland was met with much

fanfare and interest. With a few more parcels earmarked for future development on Penang Mainland

itself, we can be proud to lay claim to expanding our brand of affordable homes to the northern region,

from our existing presence in the Klang Valley, Perak, Johor and Negeri Sembilan.

Our financial performance was satisfactory, in parts due to the completion of several serviced apartment

projects, namely METIA RESIDENCE, RESIDENSI FLORA@ONE SOUTH and SENTRIO SUITES; all three

which were successfully handed over to our buyers.

Albeit that the property market is facing some headwinds, Hua Yang has maintained an uninterrupted

profit track record and sustained healthy profit margins in our development activities. This underscores

our growing strength as a developer of affordable homes. Hua Yang has proposed a final single tier

dividend of 2 sen per share. If approved at the upcoming Thirty-eighth Annual General Meeting, this

would translate to a total single tier dividend of 4 sen per share for the financial year. We will strive to

consistently reward our shareholders with dividend payments. However, we must also be mindful to

strike a right balance in reinvesting our profits into our core development business to deliver longer

term growth.

28The Gardens @ Polo Park, Johor

This year we look forward with anticipation to our debut launch at Puchong West, our new integrated

residential development within the Klang Valley which commands a total estimated Gross Development

Value in excess of RM2 billion. Located within the proximity to the bustling Pusat Bandar Puchong district,

this new flagship project offers exciting prospects with our plans to roll out a diverse suite of products that

should continue to appeal to buyers in the affordable home segment.

Yet another significant milestone for Hua Yang this year is our pursuit of the strategic acquisition of Magna

Prima Berhad (‘Magna Prima’). Once the second tranche 20% acquisition is completed, we would emerge as

the single largest shareholder of Magna Prima with an approximately 31% equity interest. As their landbank

is predominantly located within the Klang Valley, our strategic investment in Magna Prima would enable

us to strengthen our presence in the central region, and to tap into the upside potential of their prime

landbank.

The development strategy for both Hua Yang and Magna Prima will be distinct and complementary,

whereby Hua Yang will continue to focus on the development of affordable homes in various key regions,

and Magna Prima would primarily focus on urban Klang Valley development projects. Together with being

able to enjoy synergistic cost benefits from pooling of common resources, we are confident this strategic

investment in Magna Prima would serve to further enhance the value of Hua Yang shareholders in the

longer term.

On behalf of my Board of directors, we extend our gratitude to our management and staff for their

exemplary commitment and dedication to the Company as we continue to strengthen our foundation for

growth. Our sincere thanks also to all our stakeholders for their ardour support over the years. And my

most humble appreciation of my fellow Board members for their unfaltering guidance and leadership as we

continue to propel Hua Yang forward on a sustainable course for growth.


Dear Shareholders,

The intention of this

management discussion

and analysis report is to

provide you with a more

comprehensive review of

Hua Yang’s financial and

operational performance,

and to outline the

Group’s outlook and

prospects in the

current year.

MANAGEMENt DiscUssioN AND ANAlYsis REpoRt

Ho Wen YanChief Executive Officer

30

Emilia @ Taman Pulau Hijauan, Johor

‘When Dreams Take Flight’ epitomises our long-standing commitment to realise the dreams of our buyers

in owning an affordable home. This remains the driving force behind Hua Yang and our team of dedicated

staff. With the maiden launch of MERITUS RESIDENSI on Mainland Penang, Hua Yang has now extended its

development presence in Malaysia spanning the Klang Valley, Perak, Johor, Negeri Sembilan and Mainland

Penang.

Financial Performance

The Group’s financial performance in 2017 reflected our prudent development strategy amidst adverse

market conditions that have served to dampen buyers’ confidence. In the financial year ended 31 March

2017 (“FY17”), Hua Yang achieved revenue of RM385.4 million, compared to RM575.7 million reported in the

previous financial year (“FY16”). Consequently, Hua Yang delivered a profit before tax of RM80.6 million

and a net profit of RM60.9 million in FY17.

The financial results were within our expectations, partly attributed to the completion of our high-rise

residential developments, which contributed substantially to our previous years’ revenues. These projects

include METIA RESIDENCE in Shah Alam, RESIDENSI FLORA@ONE SOUTH in Seri Kembangan and

SENTRIO SUITES in Desa Pandan, which accounted for a total Gross Development Value (“GDV”) of RM495

million. Revenue contribution from our FY17 project launches was not significant as majority of the new

projects were launched towards the end of the financial year.

In FY17, projects within the Klang Valley remain the largest revenue contributor, accounting for 42% of

the Group’s revenue. This was mainly underpinned by construction progress at our highly successful ONE

SOUTH, which is towards the final phases of development, as well as SENTRIO SUITES, which was completed

and progressively handed over to our buyers in February 2017. Projects from Johor and Perak accounted

for 33% and 21% of Group revenue respectively, drawing from steady contributions from our affordable

integrated township developments in TAMAN PULAI HIJAUAN in Johor and BANDAR UNIVERSITI SERI

ISKANDAR in Perak.

During the year under review, we have successfully completed 1,771 units of properties with a total GDV of

RM846 million.


MAnAgeMent DisCussiOn AnD AnAlysis repOrt (COnt’D)

Chart 1 – FY17 Revenue Contribution by Region

Chart 2 – Completed Projects in FY17

(Working table for reference)

Region Unit GDV (RM m) GDV (%)

Klang Valley 870 495 59%

Johor 325 182 21%

Perak 518 141 17%

Negeri Sembilan 58 28 3%

Total 1,771 846 100%

42% Klang Valley

3% N.Sembilan

Completed 1,771 units of properties with total GDV of RM846 million

33% Johor

21%Perak

1% Penang

Perak, 17%, 518 units, RM141 million

Johor, 21%, 325 units, RM182 million

Negeri Sembilan, 3%, 58 units, RM28 million

Klang Valley,59%, 870 units, RM495 million

32

The Management has made conscientious efforts to maintain a healthy balance sheet, conserving cash for

landbanking opportunities. As at end-FY17, cash and cash equivalent stood at RM44.6 million. Net gearing

inched slightly higher to 0.39 times of shareholder funds from 0.34 times as at end-FY16. This was partly

due to higher working capital requirements arising from new project launches in the year, as well as our

strategic entry into Magna Prima Berhad (“Magna Prima”). We acquired an approximate 10.84% equity

interest in Magna Prima for RM66.6 million in January 2017.

The Group’s net assets attributable to shareholders stood at RM595.4 million, an improvement from

RM541.6 million as at end-FY16. On a per share basis, net assets attributable to shareholders declined to

RM1.69 from RM2.05 in the same period, owing to a larger share base as at end-FY17 adjusted from the

1-for-3 bonus issue in October 2016.

Dividends

Hua Yang’s Board of Directors has recommended a payment of a final single-tier dividend of 2 sen per

share. Together with the interim single-tier dividend of 2 sen per share paid on 17 April 2017, this would

make a total dividend payment of 4 sen per share for FY17. The proposed final single-tier dividend is

subject to shareholders’ approval at the upcoming Thirty-Eighth Annual General Meeting.

Property Development

In FY17, Hua Yang chalked up new sales of RM239 million, driven by steady contributions from its ongoing

township projects across Johor and Perak, as well as from the affordable high-rise residential projects such

as CITYWOODS in Johor, ASTETICA RESIDENCES in Seri Kembangan, Selangor and MERITUS RESIDENSI

on Mainland Penang, the latter two which made their respective debut in FY17.

During the year, Hua Yang launched new property projects with an estimated total GDV of RM733 million,

including ASTETICA RESIDENCES and MERITUS RESIDENSI. Launches in FY17 are likely to contribute more

significantly to Hua Yang’s 2018 financial year (“FY18”) sales performance as they were largely launched in

the fourth quarter of the financial year.

Chart 3 – FY17 Sales Contribution by Region

Johor,36%,

RM85 million

Perak,26%,

RM63 million

Penang,22%,

RM52 million

N.Sembilan,3% ,

RM7 million

Klang Valley,13%,

RM32 million


MERITUS RESIDENSI is Hua Yang’s maiden project launch in Mainland Penang, comprising serviced

apartments and retail units with a total project GDV of RM324 million. In February 2017, we introduced into

the market the first phase of 480 serviced apartments and 15 retail units with an estimated GDV of RM224

million. This was warmly received as reflected in the 23% sales achieved within the first month of launch.

ASTETICA RESIDENCES, our latest high-rise residential development in the Klang Valley was officially

launched in March 2017. The development has an estimated GDV of RM375 million, and comprises two

residential towers of serviced apartments and studios, together with retail units. The project offers strong

prospects, being strategically located in Seri Kembangan with proximity to the Mines Shopping Mall and

other ready amenities such as colleges and medical centres.

Other launches in FY17 include mainly affordable landed properties in our maturing townships in Johor, as

well as in BANDAR UNIVERSITI SERI ISKANDAR, our well established and thriving integrated university

township in Perak, where we rolled out new phases of single and double storey affordable homes, namely

ERICA and FREESIA, with a combined GDV of RM105 million.

Chart 4 – FY17 Launches by Region


Klang Valley,RM375 million,

51%

Penang,RM224 million,

31%

Perak,RM106 million,

14%

Johor,RM28 million,

4%

34

Chart 5 – FY17 Launches by Property Type

(Working table for reference)

Component GDV (RM m) GDV (%)

Serviced Apartment 554 76%

Landed Residential 134 18%

Retail 45 6%

Total 733 100%

Unbilled sales stood at RM214 million as at end-March 2017. This is expected to be replenished by improving

new sales in FY18 that would be driven by both the recent launches in late-FY17 as well as our planned new

development projects in the current financial year.

Landbanking

Seeking out new landbank in our pursuit of developing affordable homes is a constant focus for Hua Yang.

We have achieved past success in identifying good land parcels, primarily within matured or established

areas that come with ready amenities that are well suited for affordable homes. We are confident that

we can continue to expand our landbank and sustain our development strategy in the affordable market

segment.

On 5 May 2017, Hua Yang announced the acquisition of 3.8-acre freehold land at Persiaran Meru Raya in

Perak for a total consideration of RM15.3 million. Located in the established area of Bandar Baru Meru Raya,

this parcel of land is slated for development of residential serviced apartments with an estimated GDV of

RM295 million.

With this recent acquisition, the Group has amassed a total of 475 acres of available landbank across five

key regions for future development with an estimated GDV of RM4.5 billion. Projects within the Klang

Valley would account for nearly half of the Group’s future GDV, whilst 30% would be in Perak and 13% in

Penang.

Retail,RM45 million,6%

Landed Residential,RM134 million,18%

ServicedApartment,RM554 million,76%



Chart 6 – Future GDV by Region

Chart 7 – Future Undeveloped Landbank by Region

Strategic Acquisition in Magna Prima Berhad

In FY17, we capitalised on the opportunity to acquire a strategic stake in Magna Prima, a property developer

listed on the Main Market of Bursa Malaysia. Magna Prima owns approximately 35 acres of prime land,

predominantly located within the Klang Valley. This strategic investment would enable Hua Yang to ride

on the upside potential of Magna Prima’s land, as well as to pursue collaboration for growth on a win-win

basis for both companies.

Hua Yang made an initial acquisition of approximately 10.84% equity interest in Magna Prima for a total

consideration of RM66.6 million in January 2017. Subsequently in June 2017, Hua Yang’s shareholders

approved the acquisition of another approximately 20.12% stake in Magna Prima for a total consideration

of RM123.8 million. With the completion of this second tranche, Hua Yang has emerged as the single largest

shareholder with an approximately 30.95% equity interest in Magna Prima.

Penang,RM579 million,

13%

Klang Valley,RM2,021 million,

45%

Perak,RM1,358 million,

30%

Johor,RM452 million,

10%

N. Sembilan,RM86 million,

2%

Johor,126 acres, 27%

N.Sembilan,18 acres, 4%

Klang Valley,29 acres, 6%

Perak,285 acres, 60%

Penang,17 acres, 3%

36

One South @ Seri Kembangan, Klang Valley

This is indeed a meaningful investment for Hua Yang, offering much potential to further enhance

shareholders’ value. Our entry into Magna Prima also entails proper representation on the Magna Prima

Board, with Mr. Ho Wen Yan appointed as the company’s Executive Director in February 2017. Longer term

prospects would be augmented with more immediate possibilities to pool common resources in areas such

as human resource, book keeping, sales and administrative support to enable greater cost savings and

efficiencies between the two property developers.

The development approach for both companies remains distinct. We will not waver from our focus in

the affordable market segment, whilst Magna Prima would continue to focus on its urban Klang Valley

developments, thus complementing each other in sustaining longer term growth.

Property Development Projects

Hua Yang has grown its development activities to encompass nine ongoing development projects

across five key regions within Malaysia, with a healthy mix of high-rise residential projects and affordable

townships. The Group endeavours to build on its solid branding as a developer of innovative and quality

affordable homes. The following highlights several of Hua Yang’s key development projects.

KLANG VALLEY

ONE SOUTH, Seri Kembangan

The highly successful ONE SOUTH is Hua Yang’s flagship integrated development in Seri Kembangan,

comprising multiple phases including serviced apartments, SoHo units, retail shops and office suites. The

RM1 billion project is strategically located along the KL-Seremban Highway and adjacent to the Besraya

Highway where it enjoys a ready population catchment as well as high traffic visibility. In the near future,

ONE SOUTH is expected to be connected via a link bridge across from the proposed MRT 2 Serdang Raya

Station.

Launched in 2010, the first five phases at ONE SOUTH have been successfully handed over to buyers.

RESIDENSI FLORA of phase 5 was awarded a QLASSIC Excellent Award by CIDB for its quality of

workmanship with a scoring of 73%. Our ongoing final phase, comprising CUBE Soho units and ZETA

RESIDENCE serviced apartments, are on track for completion and delivery in the third quarter of 2017 and

second quarter of 2018 respectively.

Total estimated GDV: RM999 millionLand size: 16.7 acresStatus: OngoingSales of final phase: 74% (as at 31 March 2017)


Metia Residence @ Shah Alam, Klang Valley

Sentrio Suites@ Desa Pandan, Klang Valley


METIA RESIDENCE, Shah Alam

METIA RESIDENCE is a high-rise residential development strategically located in Section 13, Shah Alam. It

has excellent accessibility via the Federal Highway, Guthrie Corridor, the New Klang Valley Expressway,

and the North-South Expressway Central Link. The two-block serviced apartments are within proximity to

popular shopping hotspots such as Giant and Tesco hypermarkets, SACC Mall, Plaza Alam Sentral and the

AEON Store. The project is surrounded by established townships such Glenmarie, Ara Damansara, Petaling

Jaya, Subang Jaya, Bandar Sunway and Klang.

The serviced apartments are exclusively designed where the individual apartment entrances do not face

one another, and where each unit is a corner unit with maximum privacy and natural sunlight. The project,

which was awarded a QLASSIC Excellent Award by CIDB for its quality of workmanship with a scoring of

73%, was successfully completed ahead of schedule in September 2016.

Total estimated GDV: RM160 millionLand size: 3.7 acresStatus: CompletedSales of Residential Units: Fully-sold (as at 31 March 2017)

SENTRIO SUITES, Desa Pandan

SENTRIO SUITES is amongst Hua Yang’s successful high-rise residential

developments. Located within the bustling area of Desa Pandan, Kuala

Lumpur, the 40-storey high serviced apartments is the tallest building

in the area overlooking the Kuala Lumpur City Centre skyline. It

features a selection of six design options with two and three bedrooms

layout, as well as studio type units. Each unit is strategically positioned

as a corner unit, offering an unobstructed view of the surroundings

complemented by excellent ventilation and natural lighting.

The project, which was awarded a QLASSIC Excellent Award by CIDB

for its quality of workmanship with a scoring of 75%, was completed

ahead of schedule and progressively handed over to our buyers in

February 2017.

Total estimated GDV: RM231 millionLand size: 1.6 acresStatus: CompletedSales: Fully-sold (as at 31 March 2017)

38

Astetica Residences @ Seri Kembangan, Klang Valley

ASTETICA RESIDENCES, Seri Kembangan

Launched in March 2017, ASTETICA RESIDENCES is our latest mixed residential development within the

Klang Valley. The project, which houses 568 serviced apartments in two tower blocks, has an estimated

total GDV of RM375 million. The design of the serviced apartments are meant to be exclusive semi-Ds and

bungalows in the sky, with low density of ten units per floor served by four lifts and each unit being a corner

unit. One unique feature is the inclusion of comprehensive family-oriented facilities covering approximately

16,000 sq ft (square feet) that is linked with a sky bridge on the 26th floor (double volume) of the tower

blocks.

Strategically located at the epicentre of Seri Kembangan, ASTETICA RESIDENCES is fronting the Mines 2

Shopping Mall, with direct access to the SILK and Besraya Highways and well-connected to other major

routes. It is within proximity to The Mines Shopping Centre, AEON Cheras Selatan, Columbia Asia Medical

Centre, Australia International School, Bukil Jalil Stadium, Palace of The Golden Horses and many other

well-established amenities.

Total estimated GDV: RM375 millionLand size: 3.7 acresStatus: OngoingSales: 3% (as at 31 March 2017)


Cycas @ Taman Pulai Hijauan, Johor


JOHOR

TAMAN PULAI HIJAUAN, Johor Bahru

TAMAN PULAI HIJAUAN is our established and fast maturing affordable township in Johor. The 134.5-acre

township development is strategically located along Jalan Pontian that enjoys the advantages of Skudai-

Pontian corridor, Johor Bahru’s bustling residential hub.

The township has easy access to the Second-link Expressway, JB-Parkway Highway, North-South Highway,

JB/Pontian Highway, and the Skudai Highway. Amenities around the development include a golf resort,

supermarkets, schools, university, shops and commercial centres.

TAMAN PULAI HIJAUAN has grown into a thriving township, with strong emphasis on quality and modern

living etched into a green and natural environment. It has enjoyed steady sales since its first launch of

terrace houses back in 2011. The project was awarded a QLASSIC Excellent Award by CIDB for its quality

of workmanship with a scoring of (76%) for EMILIA of phase five and (75%) for DOCYNIA of phase four.

Completed phases are almost all sold, whilst recent new phases of double-storey cluster homes, together

with a state government affordable home scheme, have a total estimated GDV of RM62 million.

Total estimated GDV: RM458 millionLand size: 134.5 acresStatus: OngoingSales of ongoing phases: 74% (as at 31 March 2017)

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CITYWOODS, Johor Bahru

CITYWOODS comprises two blocks of freehold serviced apartments, and is the latest residential landmark within

the Johor Bahru city centre. Located along Jalan Abdul Samad, and strategically sited across from the 5-Star

Thistle Hotel, Hua Yang’s first serviced apartment project in Johor offers an inspiring view of the Johor Strait and

Singapore city skyline. The apartments come in various stellar designs and layouts, and include a state-of-the-art

security system and a six level private car park with easy access to lift areas.

CITYWOODS is well-connected to major highways such as the Eastern Disposal Link and the coastal highway, and

surrounded by a wealth of convenient amenities. The project’s prime location places it within 5 minutes to the

Johor Bahru city centre, CIQ and Singapore, as well as 10 minutes to the North-South highway and 25 minutes to

the Johor Senai International Airport. Construction progress is on schedule and both tower blocks are expected

to be completed by the third quarter of 2017.

Total estimated GDV: RM217 millionLand size: 2.4 acresStatus: OngoingSales: 51% (as at 31 March 2017)

PERAK

BANDAR UNIVERSITI SERI ISKANDAR, Ipoh

BANDAR UNIVERSITI SERI ISKANDAR is Hua Yang’s integrated university township development in Perak, with a

total estimated GDV of RM1.4 billion. This 777-acre township contains quality residential homes fronting lakes and

natural landscapes, a host of leisure and entertainment facilities, in-town educational institutes of higher learning,

renowned universities and medical centre.

The university township is located strategically in-between the state capital and southern part of Perak,

approximately 35km to the southwest of Ipoh City. The township is well connected with direct access from

the Ipoh-Lumut highway. The development is nestled amongst a variety of amenities including hypermarkets,

restaurants, schools, banks and bus station terminals.

With previous phases launched fully sold, Hua Yang continues to roll out new phases of landed residential in the

township to meet with market demand. The project was awarded a QLASSIC Excellent Award by CIDB for its

quality of workmanship with a scoring of (74%) for LAVENDER 2B and (72%) for CERIA of phase two. In January

2017, two new phases of single and double storey homes, namely ERICA and FREESIA were launched – targeted

at families looking for affordable, quality and modern concept living. Both phases are expected to be completed

in 2018/2019.

Lavender 2 @ Bandar Universiti Seri Iskandar, Perak

Estimated GDV: RM1,444 millionLand size: 777 acresStatus: OngoingSales of ongoing phases: 43% (as of 31 March 2017)

Citywoods @ Jalan Abdul Samad, Johor

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