Goldis Berhad Annual Report 2003

Chairman’s Letter to Shareholders (cont’d)
IGB Corporation Berhad
Our 29.44% shareholding in IGB Corporation Berhad with a carrying value of RM618.0 million is still our main
asset. For the year 2002, the enlarged IGB group after its merger with Tan & Tan Developments Berhad achieved
significant growth in both revenue and pretax profit. Revenue for the year was RM405.7 million, more than double
that recorded in 2001 while pretax profit increased by 84.98% to RM114.5 million from RM61.9 million.
Net profit increased by 56.14% to RM78.8 million. All divisions performed well. The property division achieved
sales of RM400 million for the year and Mid Valley Megamall completed its first cycle of its 3-year tenancy
renewals in November 2002. These two factors together with IGB’s proposed divestment of its 19.58% in IJM
Berhad will mean that our investment in IGB Corporation Berhad will continue to see strong growth in earnings for
the coming year 2003.
Property Investment & Developments in China
Our joint-venture in Jili Plaza in Beijing contributed RM4.9 million to earnings for 2002. The trademart was 100%
tenanted for the year. Unfortunately, it is expected that the SARs will impact the second quarter performance of
the trademart and hotel this year as a number of areas was under quarantine in Beijing to contain the spread of
SARs.
On the development side, our joint-venture in GTB Holdings, the developer of Sun City contributed RM4.3 million
profit for the year 2002. Out of a total of 882 units of apartments only 58 units remained unsold by the 30 April
2003. Unless the SAR’s restriction in Beijing continues on for another month, we should be able to meet the target
handover date of the last block of apartments in June or July this year.
Pharmaceutical Division
Diversified Healthcare Services (DHS) Sdn Bhd achieved sales of RM43.4 million in 2002 compared with sales
of RM29.1 million in 2001. The investment contributed a profit of RM5.2 million for the year. Following the
successful launch of Ellgy Cracked Heel Cream into the Malaysian and Singaporean market last year, 2003 will see
the launch of Ellgy in Thailand and Vietnam. The introduction of the product into Taiwan and Hong Kong markets
will be dependent on the lifting of travel restrictions by WHO to the two regions.
With the continued launch of new products and penetration into new markets in the region, we expect this company
to continue its high growth in 2003.
10 GOLD IS ANNUAL REPORT 2003