Malton Berhad AR2016 Design Proposal

Annual Report

2016

The Malton Group comprises mainly the Khuan Choo Group, Bukit Rimau Development and Domain Group.

In 2002, Khuan Choo Group, Domain Group and Bukit Rimau Development were injected into Gadek Capital Berhad, culminating in its re-listing on the Main Board of Bursa Malaysia. On 20 February 2002, it assumed the present name, Malton Berhad.

Contents

02 Corporate Information

17 Statement On Corporate Governance

Proxy Form

03 Corporate Structure

25 Audit Committee Report

04 Board Of Directors

29 Financial Statements

07 Chairman’s Statement

116 Group Properties

11 Operations Review

119 Statement Of Securities Holders

16 Operations Review

128 Notice Of Annual General Meeting

4 Malton Berhad (320888-T)

5 Annual Report 2016

UKAY SPRING Embark On A Journey Worth Experiencing Embark On A Journey Worth Experiencing! Indulge in a joyride or even a long drive through the road that reveals Mother Nature’s beauty. So sit back, relax and enjoy the breezy air of Ukay Spring.

6 Malton Berhad (320888-T)

Corporate Information

Board of Directors

Remuneration CommIttee

Tan Sri Lim Siew Choon Executive Chairman

Guido Paul Philip Joseph Ravelli Chairman

Guido Paul Philip Joseph Ravelli Deputy Chairman/ Independent Non-Executive Director

Chua Thian Teck Member

Hong Lay Chuan Executive Director

Hj Ahmad Bin Hj Ismail, PJK Member Company Secretary

Tan Peng Sheung Independent Non-Executive Director Puan Sri Tan Kewi Yong Executive Director Chua Thian Teck Executive Director Hj Ahmad Bin Hj Ismail, PJK Independent Non-Executive Director AudIt CommIttee Guido Paul Philip Joseph Ravelli Chairman Tan Peng Sheung Member

Hor Shiow Jei Registered Office 19-0, Level 19, Pavilion Tower 75, Jalan Raja Chulan 50200 Kuala Lumpur Tel 603-2088 2888 Fax 603-2088 2999 Share Registrar Shareworks Sdn Bhd No. 2-1, Jalan Sri Hartamas 8 Sri Hartamas 50480 Kuala Lumpur Tel 603-6201 1120 Fax 603-6201 3121 Auditors

Hj Ahmad Bin Hj Ismail, PJK Member

Deloitte & Touche Chartered Accountants

Nominating CommIttee

Principal Bankers

Guido Paul Philip Joseph Ravelli Chairman

Affin Bank Berhad Alliance Bank Malaysia Berhad AmBank (M) Berhad CIMB Bank Berhad Malayan Banking Berhad United Overseas Bank (Malaysia) Bhd

Hj ahmad Bin Hj Ismail, PJK Member Tan Peng Sheung Member

Stock Exchange Listing Main Market of Bursa Malaysia Securities Berhad Company Website www.malton.com.my

7 Annual Report 2016

Corporate Structure

and subsidiaries

100% Silver Setup Sdn Bhd 100% Melariang Sdn Bhd

100% Khuan Choo Realty Sdn Bhd 100% Regal Marvel Construction Sdn Bhd

100% Khuan Choo Sdn Bhd 100% Gapadu Development Sdn Bhd

100% Pembinaan Gapadu Sdn Bhd 100% Asia-Condo 100% Ehsan Armada Sdn Bhd 100% Khuan Choo Property

Corporation Sdn Bhd

100% Gapadu Harta Sdn Bhd

Management Sdn Bhd

100% Horizontal Promenade 100% Malton Development Sdn Bhd 100% Bukit Rimau Development

Sdn Bhd

100% Rentak Sejati Sdn Bhd

Sdn Bhd

100% Khuan Choo 100% Layar Raya Sdn Bhd

Development Sdn Bhd

100% Domain Stable Construction Sdn Bhd

100% Kumpulan Gapadu Sdn Bhd

100% Pioneer Haven Sdn Bhd

80% Macorp Sdn Bhd 100% Domain Resources Sdn Bhd 100% Malton Asia Limited 100% Malton Assets Limited 100% Beijing Malton Investment Consultancy Ltd

100% DMP Construction Sdn Bhd

100% Domain Property Services Sdn Bhd

100% Domain EPC Sdn Bhd 100% Domain Project Management Sdn Bhd

100% Silver Quest Development Sdn Bhd

100% Interpile (M) Sdn Bhd

8 Malton Berhad (320888-T)

Board of Directors

Tan Sri Lim Siew Choon

Guido Paul Philip Joseph Ravelli

Malaysian/ Executive Chairman

British/ Deputy Chairman/ Independent Non Executive Director

Tan Sri Lim Siew Choon, age 55, received his tertiary education in the United States of America and graduated with a Degree in Business Administration and Finance from University of Central Oklahoma. He has been involved in the property development and construction industries for more than 33 years.

He was appointed the Executive Chairman of Malton Berhad on 15 February 2001. He attended all five board meetings held during the financial year ended 30 June 2015. He is the Chairman and Executive Director of Pavilion REIT Management Sdn Bhd, the Manager of Pavilion Real Estate Investment Trust, also listed on the Main Market of Bursa Malaysia Securities Berhad.

His spouse, Puan Sri Tan Kewi Yong is an Executive Director and a major shareholder of Malton Berhad. He does not have any conflict of interest with Malton Berhad other than the disclosures made under Recurrent Related Party Transactions which appear on page 24 and Related Party Transactions and Balances in the Financial Statements which appear on pages 91 to 92 of this Annual Report.

He is a major shareholder of Malton Berhad.

His interests in the securities of Malton Berhad are set out in the Statement of Securities Holders which appear on pages 119 to 127 of this Annual Report. He has no conviction for offences within the past 10 years.

Mr Paul Ravelli, age 64, studied civil engineering at King’s College, University of London and graduated with a Bachelor of Science (Hons) degree in Civil Engineering. He furthered his studies at Ecole Centrale des Arts et Manufacturers, Paris and was later conferred Master of Science in Engineering. He spent 30 years with one of the largest international construction groups, and has more than 40 years of experience in the development, implementation and management of buildings, public works and Build/ Operation/ Transfer projects in France, Hong Kong SAR, Malaysia, Portugal and South-East Asia. In year 2000, the President of France conferred a national honour on him in recognition of his contribution to the profession and to FrancoAsian business relations.

He was appointed an Independent NonExecutive Director of Malton Berhad on 1 March 2002. He was subsequently appointed the Deputy Chairman of Malton Berhad on 6 November 2002. He is the Chairman of the Audit Committee and also chairs the Nominating Committee and Remuneration Committee. He is a member of the Institute of Internal Auditors Malaysia. He also sits on the Board of Directors of Ibraco Berhad, also listed on the Main Market of Bursa Malaysia Securities Berhad.

He attended all five board meetings held during the financial year ended 30 June 2015.

He has no family relationship with any of the Directors and/or major shareholders of Malton Berhad. He does not have any conflict of interest with Malton Berhad. He has no convictions for offences within the past 10 years. He does not hold any securities in Malton Berhad.

9 Annual Report 2016

Board of Directors

(cont’d)

Puan Sri Tan Kewi Yong

Chua Thian Teck

Malaysian/ Executive Director

Malaysian/ Executive Director

Puan Sri Tan Kewi Yong, age 59, pursued her tertiary education in the United Kingdom specialising in Business Studies. With more than 30 years of experience in marketing, finance and human resources management, she has been instrumental in setting up various successful business ventures. Her initial involvement was trading and distribution line and over the years, her scope of involvement has extended to cover many other industries.

She was appointed an Executive Director of Malton Berhad on 19 February 2002. She attended all five board meetings held during the financial year ended 30 June 2015. She is an Executive Director of Pavilion REIT Management Sdn Bhd, the Manager of Pavilion Real Estate Investment Trust, also listed on the Main Market of Bursa Malaysia Securities Berhad.

Her spouse, Tan Sri Lim Siew Choon is the Executive Chairman and a major shareholder of Malton Berhad. She does not have any conflict of interest with Malton Berhad other than the disclosures made under Recurrent Related Party Transactions and Balances in the Financial Statements. She does not hold any securities in Malton Berhad other than the disclosures made in the Statement of Securities Holders which appear on pages 119 to 127 of this Annual Report. She has no conviction for offences within the past 10 years.

Mr Chua Thian Teck, age 56, is a Fellow Member of the Association of Chartered Certified Accountants. He has more than 29 years of experience in accounting and financial services and in the course of his career, has acquired valuable knowledge particularly in corporate planning and finance.

He was appointed an Executive Director of Malton Berhad on 25 September 2002. He is a member of the Remuneration Committee.

He attended all five board meetings held during the financial year ended 30 June 2015.

He has no family relationship with any of the Directors and/or major shareholders of Malton Berhad. He does not have any conflict of interest with Malton Berhad other than the disclosures made under Recurrent Related Party Transactions which appear on page 24 and Related Party Transactions and Balances in the Financial Statements which appear on pages 91 to 92 of this Annual Report. He has no conviction for offences within the past 10 years. He does not hold any securities in Malton Berhad.

10 Malton Berhad (320888-T)

BUKIT J A L I L C ITY C ONNE C TING L IFESTY L E , L I V ING & L UXURY A landmark development surrounded by significant buildings, lifestyle amenities and educational institutes. Indulge in the pinnacle of retail therapy at the all-new Pavilion Bukit Jalil situated practically at your doorstep. Revel in the latest fashion, food and urban leisure at this premier.shopping heaven.

11 Annual Report 2016

12 Malton Berhad (320888-T)

Chairman’s Statement

Dear Valued Shareholders, On behalf of the Board of Directors, I am pleased to present the Annual Report and the Financial Statements of the Group and Company for the financial year ended 30 June 2016.

Operating Background The Malaysian economy recorded a stronger growth of 6.0% in 2014 (2013: 4.7%), driven primarily by the continued strength of domestic demand and supported by an improvement in external trade performance. Net exports turned around to contribute positively to growth after seven years of negative contribution, as Malaysia benefitted from the recovery in the advanced economies and the sustained demand from regional economies.

While the growth in domestic demand remained strong, public sector expenditure registered slower growth, consistent with the Government’s fiscal consolidation efforts.

(Source: Bank Negara Malaysia Annual Report 2014). In the second quarter of 2015, the Malaysian economy registered a growth of 4.9% (1Q 2015: 5.6%), and contributed towards a continued expansion in domestic demand.

This helped to offset the negative contribution from net exports during the quarter. On a quarter-on-quarter seasonally adjusted basis, the economy recorded a growth of 1.1% (1Q 2015: 1.2%).

On the property market, house prices increased at a slower rate in 2014 as house buyers and developers adjust to macro prudential and fiscal measures aimed at curbing excessive speculation and risk-taking. Government initiatives to increase the supply of affordable housing have also helped to ease some pressures on house prices amid prevailing strong demand for affordable houses. While the demand-supply gap will take some time to narrow, these developments are reducing risks of a potential sharp correction in house prices going forward. (Source: Financial Stability and Payment Systems Report 2014, Bank Negara Malaysia) A total of 384,060 transactions worth RM162.97 billion were recorded for 2014 against 381,130 transactions worth RM152.37 billion in 2013 indicating a marginal increase of 0.8% in volume and 7.0% in value. The residential sub-sector led the overall property market, with a 64.6% and 50.4% contribution to the volume and value respectively.

13 Annual Report 2016

Chairman’s Statement

(cont’d)

Dividends For the financial year ended 30 June 2016, our Group registered a revenue of:

RM

503.4 million

0.6%

The Board of Directors has proposed a first and final single-tier dividend of 3% in respect of the financial year ended 30 June 2015.

Corporate Development

2016

RM

500.3 million 2015

Financial Review For the financial year ended 30 June 2015, our Group registered a revenue of RM503.4 million, 0.6% higher as compared to RM500.3 million registered in the previous financial year. The Group recorded a pre-tax profit of RM75.7 million for the financial year ended 30 June 2015, which was 5.3% lower than the pre-tax profit of RM79.9 million registered in the previous year. The profit after tax of our Group at RM45.8 million was 11.9% lower than the profit after tax of RM52.0 million registered in the preceding financial year.

The Property Development and Property Trading Divisions were the main contributors to the Group’s revenue, registering RM258.7 million in the financial year ended 30 June 2015, (2014:RM291.6 million) primarily attributed to the Group’s existing projects such as Nova Saujana in Subang, Phase 1 of Bukit Jalil City and SK One Residence in Seri Kembangan.

The Construction and Project Management Division also contributed positively to the revenue of the Group for the financial year ended 30 June 2015, having recorded revenue of RM244.0 million (excluding inter-segment revenue) for the financial year ended 30 June 2015 (2014:RM208.0 million).

During the financial year, the Group successfully handed over vacant possession of the condominium units of our project in Penang, namely The Cantonment to the end purchasers.

On 2 January 2015, the Company placed out 20,000,000 new ordinary shares of RM1.00 each at an issue price of RM1.00 each pursuant to a general mandate obtained from its shareholders at the last Annual General Meeting which was convened on 20 November 2014. The gross proceeds of RM20 million raised from the private placement was utilised for working capital requirements of the Company and its subsidiaries.

On 4 March 2015, the Company had also obtained a general mandate from its shareholders for the Group to enter into construction and project management contracts with construction value of up to RM1.5 billion with related parties. Todate, two construction contracts with an aggregate sum of RM911 million have been awarded to Domain Resources Sdn Bhd, the construction arm of our Group to undertake construction works for substructure works for the redevelopment.

On 8 July 2015, the Company had subscribed for 80% equity interest in Macorp Sdn Bhd (“MSB”) for a cash consideration RM400,000.

MSB is an investment holding company which has obtained a development order to develop a new 10-storey office building with 2 basement levels, adjacent to the Pavilion Kuala Lumpur Mall. The new office building to be known as Menara Khuan Choo, will be retained as an investment property and is expected to be completed before the end of 2017.

On 7 October 2015, the Company announced that Khuan Choo Property Management Sdn Bhd (“KCPM”), had exercised its rights under the put option agreement entered into between KCPM and Impian Ekspresi Sdn Bhd (“IESB”) dated 10 May 2013.

14 Malton Berhad (320888-T)

Operations Review

Property Development and Property Trading Divisions Our Property Development and Property Trading Divisions generated revenue of RM258.7 million in the financial year ended 30 June 2015 as compared to RM291.6 million registered in the previous financial year ended 30 June 2014. The revenue for the financial year ended 30 June 2015 was mainly attributed to the Group’s existing projects such as Nova Saujana in Subang, Phase 1 of Bukit Jalil City and SK One Residence in Seri Kembangan.

In March 2015, the Group has launched Phase 1 of Rapid City Centre in Sungai Rengit, Johor, comprising 60 units of 2-storey shops with an estimated Gross Development Value of RM66.0 million of which 38 units have been sold todate.

The Cantonment @ Penang THE CANTONMENT is a lifestyle condominium development sited on a freehold prime land located right in the heart of Pulau Tikus on Penang Island. This project comprises a 32-storey high-rise tower offering 71 units of high-end condominiums, complete with infinity swimming pool and clubhouse facilities. It has stunning views of Pulau Tikus, Gurney Drive, Georgetown and the nearby hill of Tanjung Bungah.

The Certificate of Completion and Compliance was obtained in June 2015 and the delivery of vacant possession to the purchasers is currently on-going.

Nova Saujana @ Subang Nova Saujana is a lifestyle mixed commercial development sited on a freehold land in Subang, Selangor, near the prestigious Saujana Golf and Country Resort and adjacent to the Japanese School of Kuala Lumpur.

It is also located next to our previous project, Amaya Saujana, which was conferred the award of “Highly Commended Apartment” in Asia Pacific at the International Property Awards in 2012.

Nova Saujana comprises 386 well-designed service apartments and 20 units of retail units, complete with facilities such as a gymnasium, infinity swimming pool, sauna, basketball court, children’s playground, library, cafeteria and BBQ area.

The project was first launched in March 2013 and is expected to be handed over to our purchases in the fourth quarter of 2015

15 Annual Report 2016

Operations Review

(cont’d)

SK One ResIdence @ Seri Kembangan SK One Residence is a stylish service apartment cum retail shop development sited on a freehold land in Seri Kembangan, Selangor.

It comprises 429 well-designed service apartments and 31 units of retail lots, complete with facilities such as a gymnasium, infinity swimming pool, jacuzzi, games room, children’s playground, nursery, cafeteria and BBQ area.

As at 30 September 2015, about 94% of the service apartments have been sold. The project was first launched in March 2014 and is expected to be handed over to our purchasers by the first quarter of 2017.

Bukit Jalil City, Kuala Lumpur Bukit Jalil City is an integrated development in the fast growing Bukit Jalil spanning 50 acres of prime freehold land opposite the lush Bukit Jalil Recreational Park. It is also located close to the proposed extended LRT Line from Bukit Jalil to Kelana Jaya and strategically accessible via major expressways that lead to Kuala Lumpur, Petaling Jaya, Puchong, Subang Jaya and KLIA. The project comprises signature shops and offices, park residences and a regional mall. Phase 1 consists of 112 units of 3/5-storey retail shops with an estimated gross development value of RM543 million which was launched in June 2014 whereas Phase 2 comprises 44 retail shops and 1,098 units of serviced apartments with an estimated gross development value of over RM1 billion.

Rapid City Centre, Johor Rapid City Centre is a 196 acre township development in Sungai Rengit, Johor comprising shops, landed properties and apartments. The development is located close to Petronas’ Refinery and Petrochemical Integrated Development (RAPID) project and the Pengerang Independent Deepwater Petroleum Terminal (PIDPT) which is a joint-venture between Dialog Group Berhad, Royal Vopak of Netherlands and Johor State Secretary.

Phase 1 of Rapid City Centre which comprises 60 units of 2-storey shops with an estimated gross development value of RM66.0 million was launched in March 2015. As of 30 September 2015, 38 units have been sold and the project expected to be completed by the third quarter of 2016.

16 Malton Berhad (320888-T)

17 Annual Report 2016

AMAYA DUTA C RAFTED TO FU L L FI L L THE DESIRES OF THE DIS C ERNING Amaya Duta Sky Suites is an upcoming development by Malton Berhad located at Jalan Kuching, Kuala Lumpur. Amaya Duta specially crafted to fulfill the desires of the discerning, consists of three tower blocks - 46-storey, 49-storey and 30-storey serviced apartments.

18 Malton Berhad (320888-T)

Group Financial Highlights

Revenue

Profit After Taxation

( R M mi l )

( R M mi l )

600

700

500

600 500

400

400 300 300 200

200

100

100

0

0 ‘12

‘13

‘14

‘15

‘16

‘12

‘13

‘14

‘15

Basic Earnings Per Share

Net Assets Per Share

(RM)

(Sen)

25

1.5

20

1.2

15

0.9

10

0.6

5

0.3

0

0 ‘12

‘13

‘14

Year Ended 30 June Revenue (RM’000) Profit Before Taxation (RM’000) Profit After Taxation (RM’000) Profit Attributable to Owners of the Company (RM’000) Paid-Up Capital (RM’000) Equity Attributable to Equity Holders of the Company (RM’000) Total Assets (RM’000) Basic Earnings Per Share (Sen) Net Assets Per Share (RM)

‘15

‘16

‘12

‘13

‘14

‘15

‘16

‘16

2016

2015

2014

2013

2012

503,444 75,700 45,847

500,300 79,853 52,043

359,179 50,153 35,387

340,438 81,029 62,030

462,392 98,152 72,694

45,906 448,416

51,884 422,550

35,567 418,104

61,650 418,104

72,694 348,353

714,677 1,575,576 10.47 1.59

659,326 1,298,096 12.42 1.56

612,424 1,006,757 8.46 1.46

587,310 900,285 14.84 1.40

509,129 959,366 20.86 1.46

19 Annual Report 2016

Statement On Corporate Governance

Introduction The Board of Directors of Malton Berhad (“Board”) recognizes that good governance in its business conducts is fundamental towards the protection and enhancement of shareholders’ value. Accordingly, the Board is committed to ensuring that high standards of corporate governance are maintained throughout Malton Berhad (“Malton” or “Company”) and its subsidiaries (“Group”). The Board fully supports the principles set out in the Malaysian Code on Corporate Governance 2012 (“Code”) and is pleased to outline the manner in which the Group has applied the principles set out in the Code and observed the recommendations set out in the Code, where applicable, and where appropriate alternative practices and reasons for the financial year ended 30 June 2015.

Principle 1 – Establish Clear Roles and Responsibilities of the Board and Management The Board knows the importance of its roles and responsibilities in discharging its fiduciary duties and leadership functions. The Board together with Management, through the Discretionary Authority Limits and Standard Operating Procedures, have established the division of roles and functions in managing the Group. The Board is responsible for oversight and overall management of the Group, whilst Management is responsible for the day- to-day operations of the business and effective implementation of Board decisions.

The Board in discharging its duties has adopted the following objectives:• • • • • • •

Review and adopt strategic and sustainable plans for the Group Oversee the conduct of the Group’s business Identify principal risks and ensure the implementation of appropriate internal controls and mitigation measures Succession planning Oversee the development and implementation of shareholder communications policy for the Group Review the adequacy and integrity of the management information and internal control systems of the Group Formalise ethical standards and policies through a code of conduct for the Group and ensure its practices and compliance throughout the Group

The Executive Chairman is primarily responsible for the vision and strategic direction of the Group. The Executive Directors are responsible in overseeing the implementation of objectives and plans for the Group whilst Management is responsible for the day to day operations of the Group.

The Deputy Chairman, an independent non-executive director, ensures that the Board practices good governance in discharging its duties and responsibilities. The Board, as a whole, retains overall control of the Group.

The Board has established Board Committees as set out below, each with its own functions and responsibilities, to assist the Board in discharging its duties.

• • • •

Audit Committee Nominating Committee Remuneration Committee ESOS Committee

The Board has established in the Discretionary Authority Limits, clear functions reserved for its deliberation and decision and those delegated to Management. Key areas that require the Board’s approval include:• • •

Corporate plans and new ventures Transactions relating to major shareholders and directors Material acquisitions and disposal of assets

20 Malton Berhad (320888-T)

Statement On Corporate G o v e r n a n c e (cont’d)

The Directors in their individual capacity or the Board as a whole, in furtherance of their duties, are entitled to independent professional advice, if and when they deem necessary, and at the Company’s expense.

The Board has unrestricted access to the advice and services of the Company Secretary on procedural and regulatory requirements. The Board recognizes the importance of role of the Company Secretary in supporting the Board by advising and ensuring regulatory compliance and development and also board policies and procedures.

Principle 2 – Strengthening Composition Board Composition Malton is led by a team of experienced directors. Each director comes from different professional backgrounds bringing depth and diverse areas of expertise, a wide range of experience and knowledge to the business strategies and operations of the Group.

Presently, the Board comprises four executive directors and three independent non-executive directors as set out below.

Name Directorship Tan Sri Lim Siew Choon (Executive Chairman) Executive Guido Paul Philip Joseph Ravelli (Deputy Chairman) Independent and Non-Executive Puan Sri Tan Kewi Yong Executive Chua Thian Teck Executive Hong Lay Chuan Executive Hj Ahmad bin Hj Ismail, PJK Independent and Non-Executive Tan Peng Sheung Independent and Non-Executive The profiles of the Directors are presented on pages 4 to 6 of this Annual Report.

The present composition of the Board complies with the requirement of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Main Market Listing Requirements”) which prescribes that at least two directors or onethird of the board of directors, whichever is higher, are independent. There is balance in the Board as each independent director brings invaluable judgement to bear on issues of strategy, performance, resource allocation, risk management and standards of conduct. In the opinion of the Board, the minority shareholders are well represented by the presence of these highly capable and credible independent non- executive directors.

Nominating Committee The Board established the Nominating Committee on 24 October 2002 which currently comprises exclusively nonexecutive directors as follows:• Guido Paul Philip Joseph Ravelli – Chairman • Hj Ahmad bin Hj Ismail, PJK • Tan Peng Sheung The authorities, functions and responsibilities of the Nominating Committee are set out in its terms of reference. The main objectives of the Nominating Committee are to review, recommend and consider candidates for appointment to the Board based on skills and experience, to assess the effectiveness and continuously seek ways to upgrade the effectiveness of the Board as a whole and the Committees of the Board. It also assesses the contribution of each Director, executive or Independent non-executive. In evaluating candidates for directorship, the Nominating Committee will consider the following criteria.

21 Annual Report 2016

Financial Statements

30 Report of the directors

39 Statements of financial position

46 Notes to the financial statements

36 Independent auditors’ report

41 Statements of changes in equity

114 Supplementary information Disclosure on realised and unrealised profits

38 Statements of profit or loss and other comprehensive income

43 Statements of cash flows

115 Statement by directors Declaration by the director primarily responsible for the financial management of the Company

22 Malton Berhad (320888-T)

Report of The Directors

The directors of Malton Berhad have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial year ended 30 June 2015.

Principal Activities The principal activities of the Company are that of investment holding and the provisions of management services to its subsidiary companies.

The principal activities of the subsidiary companies are disclosed in Note 14 to the financial statements.

There have been no significant changes in the nature of the principal activities of the Company and of its subsidiary companies during the financial year.

Results of operations The results of operations of the Group and of the Company for the financial year are as follows:

The The Group Company RM’000 RM’000

Profit before tax Income tax expense

75,700 (29,853)

2,045 (493)

Profit for the financial year

45,847

1,552

In the opinion of the directors, the results of operations of the Group and of the Company during the financial year have not been substantially affected by any item, transaction or event of a material and unusual nature.

Dividends On 30 January 2015, the Company paid a first and final single-tier dividend of 3% amounting to RM12,852,474 in respect of the financial year ended 30 June 2014 as approved by the shareholders at the last Annual General Meeting.

The directors have proposed a first and final single-tier dividend of 3% per share in respect of the current financial year. The proposed first and final dividend is subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Company and has not been included as a liability in the financial statements for the current financial year. Such dividend when approved by shareholders will be accounted for in equity as an appropriation of retained earnings during the financial year ending 30 June 2016.

Reserves And Provisions There were no material transfers to or from reserves or provisions during the financial year other than those disclosed in the financial statements.

23 Annual Report 2016

Statements of Profit or Loss and Other Comprehensive Income For The Financial Year Ended 30 June 2016

Note

The Group 2016 2015 RM’000 RM’000

Revenue Cost of sales

503,444 500,300 27,734 62,227 (367,938) (360,010) - -

5 6

Gross profit Other income Share in results of associated companies 15 Selling and distribution expenses Administrative expenses Finance costs 7

135,506 28,938 (959) (15,861) (55,028) (16,896)

Profit before tax Income tax expense

75,700 79,853 2,045 36,677 (29,853) (27,810) (493) (10,441)

8 9

Profit for the financial year Other comprehensive income/(loss), net of income tax Items that will be reclassified subsequently to profit or loss: Net changes in fair value of available-for-sale financial assets

59

140,290 15,250 (1,059) (5,042) (53,176) (16,410)

The Company 2016 2015 RM’000 RM’000

27,734 5,081 - - (15,806) (14,964)

62,227 4,681 (15,002) (15,229)

45,847 52,043 1,552 26,236

(159)

14

49

Total comprehensive income for the financial year

45,906 51,884

1,566 26,285

Total comprehensive income attributable to: Owners of the Company

45,906

51,884

1,566

Earnings per ordinary share: 10 Basic (sen)

10.47

12.42

Diluted (sen)

9.22

10.49

26,285

Malton Berhad (320888-T) 19-0, Level 19, Pavilion Tower 75, Jalan Raja Chulan 50200 Kuala Lumpur, Malaysia T. 03 2088 2888 F. 03 2088 2999

www.malton.com.my