ANNUAL REPORT 2 17 D E F I N I N G T H E F U T U R E
DEFINING THE FUTURE This year, the design of our Annual Report cover depicts a seedling symbolizing our earthiness presence and growth potential. A seedling may be small but rich with possibility which is as humble as it is powerful. Guided by our philosophy, Defining the Future, we trust in our people s calibre to maximize our strategic potential in creating a better future for all. With our credible leadership at the helm focusing on our core expertise in property development, we are confident and committed to developing a sustainable future, striving to maintain an equitable balance between increasing value for our investors and consistently delivering viable value to every stakeholder around us. CONTENTS About Us, Vision, Mission, Core Values 1 2 Corporate Information Corporate Structure 3 4 Media Highlights 5 Years Financial Highlights 5 6 Management Discussion & Analysis Sustainability Statement 11 19 Profile of Board of Directors Profile of Senior Management 23 24 Corporate Governance Overview Statement Audit Risk Management Committee Report 29 33 Statement on Risk Management and Internal Control Financial Statements 35 122 Additional Compliance Information Analysis of Shareholdings 124 127 Notice of the 19th Annual General Meeting Proxy Form
ABOUT US MB World Group Berhad ( MB World Group ) is a public company listed on the Main Market of Bursa Malaysia Securities Berhad. Since 215, MB World Group has diversified its business into property development, a strategic move that leverages on MB World Group s construction expertise. Following the diversification, MB World Group s property development arms, led by MB Max Sdn. Bhd. and Cocoa Valley Development Sdn. Bhd., have grown and contributed significantly to the Group s business performance. In 217, MB World Group Berhad and its subsidiaries ( the Group ) has successfully completed and delivered the 38-storey Pinnacle Tower serviced apartment project in Johor Bahru City Centre and has launched several residential and commercial precincts in its total 47-acre Taman Sri Penawar township project in Bandar Penawar, Kota Tinggi. MB World Group will continuously strive to provide quality developments to improve the quality of life for the community, while creating value for the benefit of all our shareholders and stakeholders. VISION We are dedicated to providing quality developments. We are greatly inspired to look beyond the horizon and constantly seek to venture into various fields to improve the quality of life. MISSION Guided by our strong core values, we will constantly strive to implement the necessary initiatives to achieve our vision. And with it, we will deliver excellence throughout every business to meet and exceed expectations. CORE VALUES BEST PRACTICE: We strive to innovate and deliver top quality solutions and services to exceed our clients expectations, maintain balancing competencies to achieve optimal results. INTEGRITY: We adhere to professional and ethical conduct to deliver the best quality for the best possible cost to our clients. DIVERSITY: We believe in treating people equally and respect differences hence we reward and provide opportunities based on results and competencies. UNITY: We believe that success weighs on teamwork; hence our team is always ready to provide the highest level of service and support in times of need. LEARNING: We encourage learning, development and growth through our clients success and fulfilling the lifestyle needs of the growing community. 1
Corporate Information AUDIT RISK MANAGEMENT COMMITTEE Mr. Chong Jiun Shyang Chairman Dato Ikmal Hijaz Bin Hashim Board of Directors REGISTERED OFFICE Suite 5.11 & 5.12, 5th Floor, Menara TJB, No.9, Jalan Syed Mohd. Mufti, 8 Johor Bahru, Johor. Tel : (6)7 224 2823 Fax : (6)7 223 229 SHARE REGISTRAR MB WORLD GROUP BERHAD I ANNUAL REPORT 217 Senior Independent Director Nomination and Remuneration Committee Chairman Dato Ikmal Hijaz Bin Hashim Mr. Chong Jiun Shyang Secretaries Mr. Lee Wee Hee (MAICSA 77334) Dato Ikmal Hijaz Bin Hashim Independent Non-Executive Chairman Mr. Chong Jiun Shyang Independent Non-Executive Director Independent Non-Executive Director Mr. Ng Liang Khiang Ms. Wong Yean Ni Ms. Cindi Sim Shareworks Sdn. Bhd. (229948-U) No. 2-1, Jalan Hartamas 8, Sri Hartamas, 548 Kuala Lumpur, Wilayah Persekutuan. Tel : (6)3 621 112 Fax : (6)3 621 3121 AUDITORS Crowe Horwath (AF:118) E-2-3, Pusat Komersial Bayu Tasek, Persiaran Southkey 1, Kota Southkey, 815 Johor Bahru, Johor Darul Takzim Tel : (6)7 288 6627 Fax : (6)17 81 346 PRINCIPAL BANKERS Malayan Banking Berhad OCBC Bank (Malaysia) Berhad Ms. Pow Juliet (MAICSA 72821) Principal Place of Business MB World Group Berhad (485144-H) Unit 5-1, Level 5, Plaza DNP, No. 59, Jalan Dato Abdullah Tahir, 83 Johor Bahru, Johor. Tel : (6)7 33 5979 Fax : (6)7 33 5971 Mr. Simon Sim Yow Yung STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad Stock Code : 7189 Stock Name : MBWORLD WEBSITE www.mbworld.com.my 2
Corporate Structure MB World Group Berhad (485144-H) MB World Properties Sdn. Bhd. (222368-V) (formerly known as Emas Kiara Properties Sdn. Bhd.) Development: MB Max Sdn. Bhd. (14919-A) Cocoa Valley Development Sdn. Bhd. (1178919-P) Development: MB WORLD GROUP BERHAD I ANNUAL REPORT 217 MB World Builders Sdn. Bhd. (12374-D) Danga Palms Sdn. Bhd. (1217776-U) MB World Trading Sdn. Bhd. (12373-V) Noblecorp Sdn. Bhd. (953731-H) 3
Media Highlights 1 April 217, by Focus Malaysia 28 November 217, by The Sun Daily MB WORLD GROUP BERHAD I ANNUAL REPORT 217 3 March 218, by The Star 12 February 218, by The Edge Markets 3 January 218, by The Star 26 February 218, by The Malaysian Reserve 21 February 218, by Oriental Daily 21 November 218, by Sin Chew Daily 4
5 Years Financial Highlights 213 214 215 216 217 FINANCIAL PERFORMANCE Revenue (RM) 37,461,856 43,583,384 43,931,971 1,853,545 235,167,823 (Loss) / Profit Before Tax (RM) (8,379,62) 1,71,939 (319,75) 26,466,44 5,47,291 Finance Costs (RM) (1,13,973) (43,57) (272,884) (11,984) (472,19) (Loss) / Profit After Tax (RM) (9,185,317) (3,82,277) 5,253,292 15,789,621 3,558,183 Equity Attributable to Owners of the Company (RM) 75,451,688 72,111,933 78,273,835 94,178,78 195,254,87 Total Assets (RM) 17,24,38 11,914,541 15,511,568 129,893,81 476,145,22 Borrowings (RM) 6,387,598 6,4,16 6,928,185 4,615,161 37,49,729 Return on Equity (%) (12.17) (5.37) 6.71 16.77 15.65 (Loss) / Earnings Per Share (Sen) (1.3) (4.35) 5.77 17.24 27.2 Net Assets Per Share (Sen).85.8.85 1.3 1.24 Gearing Ratio (Times).8.9.9.5.19 Operating Revenue Growth (%) (17.57) 16.34.8 129.57 133.18 25, 2, 15, 1, 5, REVENUE (RM ) 37,462 213 43,583 214 43,932 215 1,854 216 235,168 217 35, 3, 25, 2, 15, 1, 5, -5, -1, (LOSS) / PROFIT AFTER TAX (RM ) (9,185) (3,82) 5,253 15,79 3,558 5, 4, 3, 2, 1, TOTAL ASSETS (RM ) 213 214 215 216 217 213 214 215 216 217 17,24 11,915 15,512 129,894 476,145 MB WORLD GROUP BERHAD I ANNUAL REPORT 217 (LOSS) / EARNINGS PER SHARE (Sen) GEARING RATIO (Times) 3 25 2 15 1 5-5 -1-15 (1.3) (4.35) 5.77 17.24 27.2.2.15.1.5.8.9.9.5.19 213 214 215 216 217 213 214 215 216 217 5