Annual Report - Bina Puri

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Review Of Operations (Cont’d) OVERVIEW In 2008, Bina Puri remained focused and resilient in under difficult conditions and downturn experienced throughout the world by continuing to secure new projects while completing a few landmark projects in our order book. We were also recognized by our country’s Construction Industry Board (“CIDB”) as Malaysia’s “Best International Builder”. Book Order by Countries Brunei 26% Malaysia 44% We believe new opportunities have started to open up with the timely introduction of a number of fiscal and financial initiatives undertaken by the Malaysian Government to strengthen the domestic economy as shown by the RM67 Billion stimulus package. With our Bina Puri’s excellent performance and track record, we are confident that we will be one of the major beneficiaries to undertake some of the earmarked projects, thereby adding value to our stakeholders. Our commitment to building shareholders’ value, our experienced operations staff together with our long standing ties with suppliers and sub-contractors are part of our core value. CONSTRUCTION DIVISION UAE 12% Pakistan 3% Thailand 15% Our prospects remain vibrant, with a total book order of RM2.7 billion which consists of projects in Malaysia and overseas, namely United Arab Emirates, Brunei, Pakistan and Thailand. In 2008, the Group secured RM 830 million new projects with a higher percentage of it in Malaysia (85% ) as compared to the previous year (43%). Projects secured fromYear 2006 toYear 2008 RM Million Domestic 2000 Overseas Total Value 1,547 1500 1,417 1,306 Polyol Division 2% Property Division 7% Turnover by Division Quarry & Construction Materials 11% Construction Division 80% 1000 500 0 241 615 2006 2007 2008 In 2008, the Group registered a record revenue of RM676.5 million and pre-tax profit of RM8.13 million. Although revenue increased by eleven percent (11%), pretax profit declined by 5%. This was due to escalation of construction raw materials which had spiraled upwards on average by more than 50%. This had a major impact on the whole construction industry and resulted in developers holding out on launching their new projects while even certain Government projects had to reduce their scope as the higher costs had exceeded its initial budget. This unpredictable trend only subsided towards the last quarter of 2008. 802 710 121 830 Recognition and accolades have encouraged Bina Puri to raise our standards further. As mentioned, we were proud recipients of the CIDB International Achievement Award for our projects in Thailand and the Innovative Award for the Bangplee Project in Thailand. The Construction Division will continue to be the core driver of the Group as it accounts for 80% of the Group’s revenue.With raw materials stabilizing, we anticipate that this division will have a better year. HIGHWAY CONCESSION Our 50% associate, KL-Kuala Selangor Expressway Bhd, (KLSEB), the concessionaire for KL-Kuala Selangor Expressway (KLS Expressway), has finally started construction of the RM958 million expressway after close to 10 years of anticipation. 18 BINA PURI HOLDINGS BHD Annual Report 2008
Review Of Operations (Cont’d) Construction of KL-Kuala Selangor Expressway (KLS Expressway) The construction works had commenced on 28 October 2008 with Mudajaya Corporation Berhad appointed as the Turnkey Contractor after going through a competitive tendering and evaluation process. The KLS Expressway is targeted to be completed by 2011. On 13 January 2009, KL-Kuala Selangor Expressway Bhd, has successfully achieved its financial close with Bank Pembangunan Malaysia Berhad for the Istisna’ Facility of RM740.0 million and Islamic Development Bank for the Istisnaa Wa Ijaraara’ facility of RM300.0 million. The said facilities will be utilized to finance the construction of 33km dual carriageway expressway which will provide an alternative link road to the present Federal Road 54 from Kuala Lumpur to Kuala Selangor.The new highway will also forms part of the Malaysian Government planned KL Outer Ring Road (KLORR) which commences from north of Templer Park to Assam Jawa town in the District of Kuala Selangor, Selangor Darul Ehsan, Malaysia. Artist Impression of the new Jesselton View @ Hilltop PROPERTY DIVISION Despite the softer property market environment, the Property Division recorded an impressive revenue of RM46.9 million (RM35.6 million in 2007) and a profit before tax of RM3.1 million (RM2.6 million in 2007).The improved results were due to progressive profits recognized from the Jesselton Condominium and Taman Malawa Jaya, Phase 2 sold during the year. Having successfully launched Phase 2 of Taman Malawa Jaya in Kota Kinabalu, which comprised of 4 storey walkup Apartments totaling 96 units, the Property Division is now focusing on launching its latest development in JesseltonView @ Hilltop comprising 1 block of 80 units of modern and contemporary condominium built over 2 acres of land. This new development is located at the highest point in Hilltop Luyang, Kota Kinabalu, a well sought after address. Jesselton View @ Hilltop will be another niche development after the success of our high end 15-storey Jesselton condominium at Jalan Bersatu off Jalan Damai, Kota Kinabalu which is now recognized as one of the top address in the city.The condominium offers many first in Kota Kinabalu as exemplified by its Grand Lobby and Sky Lounge which overlooks scenic Kota Kinabalu. QUARRY OPERATIONS AND CONSTRUCTION MATERIALS DIVISION The completed 133 units of Jesselton Condominium, Kota Kinabalu, Sabah. The quarry and ready mix concrete division recorded a revenue of RM91.2 million (RM107.8 million in 2007) and a profit before tax of RM2.8 million (RM3.3 million in 2007). The lower than expected performance was impacted by the lower road paving works secured during the year. In light of the softer market conditions and the prevailing lower demand for raw materials in the BINA PURI HOLDINGS BHD Annual Report 2008 19
Page 1: H O L D I N G S B H D Annual Report
Page 4 and 5: Notice Of Annual General Meeting NO
Page 6 and 7: “Appendix A” Date: 8 April 2009
Page 8 and 9: Group Corporate Structure Construct
Page 10 and 11: Corporate Information BOARD OF DIRE
Page 12 and 13: Profile of Directors (Cont’d) Sen
Page 14 and 15: Profile of Directors (Cont’d) Kha
Page 16 and 17: Dato’ Mohamed Feisal Bin Ibrahim
Page 18 and 19: Executive Chairman’s Statement (C
Page 22 and 23: Review Of Operations (Cont’d) con
Page 24 and 25: Group Financial Highlights Bina Pur
Page 26 and 27: Calendar of Events 2008-2009 (Cont
Page 28 and 29: Corporate Social Responsibilities (
Page 30 and 31: Audit Committee Report (Cont’d) F
Page 32 and 33: Corporate Governance Statement The
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Page 38 and 39: Internal Control Statement (Cont’
Page 40 and 41: Komplek Dewan Undangan Negeri Saraw
Page 42 and 43: Directors’ Report For the year en
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Analysis of Shareholdings As at 21
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Thirty Largest Shareholdings (Cont
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Recurrent Related Party Transaction
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Annual Report - Bina Puri

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