YG BHG DATIN TAN KUAY FONG

Transcription

1 Directors Profile YG BHG DATIN TAN KUAY FONG MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER Yg Bhg Datin Tan Kuay Fong, aged 65, a Malaysian, is the Managing Director & Chief Executive Officer of TA Enterprise Berhad. She holds a Bachelor of Economics (Honours) Degree and a Post Graduate Diploma in Accounting from the University of Malaya. She started her profession as stockbroking in In 1983, she was one of the pioneer founders of A.T. Securities Sdn Bhd, the first stockbroking company to be established in Shah Alam. In December 1987, she joined TA Securities Sdn Bhd and was appointed the Managing Director of TA Securities Berhad in July Pursuant to the listing of TA Enterprise Berhad, she was appointed as Executive Director of TA Enterprise Berhad in March 1990 and subsequently in May 2002, she was appointed as its Executive Chairman. She was re-designated as Managing Director & Chief Executive Officer of TA Enterprise Berhad on 16 August She was instrumental in the growth and development of TA Enterprise Berhad s financial services businesses during its formation years. In the l990s, Datin Tan Kuay Fong revolutionised the stockbroking business of TA Enterprise Berhad by taking the bold step to build up its IT infrastructure and employed IT programmers and system analysts to design and tailor specific back office IT systems and controls to provide its remisiers and clients with a more efficient platform to trade with greater accuracy and efficiency. She was also instrumental in developing the proprietary trading activates of TA Enterprise Berhad, expanding its retail market, building up its remisiers/ dealers base to enlarge its retail clientele and to expand its business. She has over 25 years of senior management experiences in stockbroking, derivatives and property management. Her experience and expertise incorporates strategic planning, initial business set-up, operations planning and implementation, international business expansion and overall business management. Her financial services career track record has been charted through the years, made possible through her in-depth exposure to the stockbroking industry and financial markets. She now continues to impart her business acumen and skills to the growth and development of TA Enterprise Berhad s financial services business. She also sits on the Boards of TA Global Berhad, a public listed company and a number of companies within the TA Enterprise Berhad Group and TA Global Berhad Group. She is an advisor to the Stockbroking Management Committee of TA Securities Holdings Berhad, a wholly-owned subsidiary of the Company. She is the wife of Yg Bhg Datuk Tiah Thee Kian, Non-Independent Non-Executive Chairman and a substantial shareholder of the Company. She has attended all five of the Board Meetings held during the financial period. TA Enterprise Berhad Annual Report 11

2 Directors Profile YG BHG DATIN TAN KUAY FONG MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER PUAN ZAINAB BINTI AHMAD EXECUTIVE DIRECTOR Puan Zainab Binti Ahmad, aged 64, a Malaysian, is the Executive Director of TA Enterprise Berhad. She holds a Bachelor in Business Administration Degree from the Institut Teknologi Mara/University of Ohio. She has attended all five of the Board Meetings held during the financial period. She started her career in June 1983 with A.T. Securities Sdn Bhd as the General Manager. She then joined TA Securities Sdn Bhd as Director in December 1987 till October She was then appointed as Executive Director of TA Enterprise Berhad on 13 March 1990, a position she holds to-date. She also sits on the Boards of TA Global Berhad, a public listed company; TA Centre Berhad and TA Investment Management Berhad, public companies which are wholly-owned subsidiaries of TA Enterprise Berhad and a number of companies within the TA Enterprise Berhad Group. 12 TA Enterprise Berhad Annual Report

3 YG BHG DATO SRI MOHAMED BIN ABID NON-INDEPENDENT NON-EXECUTIVE DIRECTOR Yg Bhg Dato Sri Mohamed Bin Abid, aged 73, a Malaysian, is the Non-Independent Non-Executive Director of TA Enterprise Berhad. He studied Business Management at The MARA Institute of Technology and was admitted as a Member of the British Institute of Management. He was conferred the award of Sri Sultan Ahmad Shah Pahang by His Royal Highness the Sultan of Pahang in October 2008, that carries the title of Dato Sri. He started his career as a Shipping Executive and was later promoted to Manager in P & O Steam Navigation Co. Ltd, Singapore & London from 1964 to In 1974, he joined MISC Coastal Services Sdn Bhd, a wholly-owned subsidiary of MISC Berhad as Marketing Manager and was promoted to Director/Chief Executive Officer in 1980, a position he held till Subsequently, he was appointed Chief Executive Officer of MISC Agencies Sdn Bhd until In 1987, he was appointed as Managing Director of East & West Maritime Sdn Bhd. In 1989, he founded and established JB Distripark Sdn Bhd and held the position of Executive Director. On 1 July 1995, he joined the Board of TA Enterprise Berhad, a public listed company as Executive Director. He was re-designated as the Non-Independent Non- Executive Director of TA Enterprise Berhad on 5 October 2009 and holds the position to-date. He is also the Chairman of Advisory Board of Tesco Stores (Malaysia) Sdn Bhd since He has extensive experience in the shipping industry and has held various senior positions, both locally and overseas. Over the years, his established network of local and international business contacts have been invaluable to the development and growth of the TA Group. In addition, he has also actively been involved in building the corporate as well as public image of the TA Group of Companies. He also sits on the Board of TA Global Berhad, a public listed company and a number of companies within the TA Global Berhad Group. He has attended all five of the Board Meetings held during the financial period. TA Enterprise Berhad Annual Report 13

4 Directors Profile YG BHG DATIN TAN KUAY FONG MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER MR PETER U CHIN WEI INDEPENDENT NON-EXECUTIVE DIRECTOR Mr Peter U Chin Wei, aged 65, a Malaysian, is the Independent Non-Executive Director of TA Enterprise Berhad. He is a Fellow of the Institute of Chartered Accountants in England and Wales and also a member of the Malaysian Institute of Accountants. He is the Chairman of the Company s Audit Committee, Nomination Committee and Remuneration Committee. He has attended all five of the Board Meetings held during the financial period. Before returning to Malaysia, he worked in the London office of Coopers and Lybrand (now known as PricewaterhouseCoopers). Upon his return to Malaysia in 1977, he worked for Inchcape Malaysia Sdn Bhd, YTL Group and he joined the MUI Group in 1980 until 1989 as General Manager. He joined the Board of AsiaPac Bhd (formerly known as Pegi Malaysia Berhad) as an Executive Director in 1989 till Thereafter, he joined TA Enterprise Berhad as an Executive Director in October 1990 till October Subsequently, he was appointed as an Independent Non-Executive Director of TA Enterprise Berhad on 15 July 1999, a position he holds to-date. He also sits on the Boards of TA Global Berhad and Kumpulan Europlus Berhad, public listed companies and Asian Outreach (M) Berhad, a public limited company. 14 TA Enterprise Berhad Annual Report

5 MR JORY LEONG KAM WENG INDEPENDENT NON-EXECUTIVE DIRECTOR Mr Jory Leong Kam Weng, aged 52, a Malaysian, is an Independent Non-Executive Director of TA Enterprise Berhad. He graduated with a Bachelor of Economics Degree and a Bachelor of Laws Degree from Monash University, Australia. He is a Fellow of CPA Australia and a Chartered Accountant of the Malaysian Institute of Accountants. He is also a certified mediator on the panel of the Malaysian Mediation Centre. He was called to the Malaysian Bar in In February 1992, he joined TA Enterprise Berhad as the Group Legal Manager until July He was the Vice President of International Division of TA Enterprise Berhad from November 1993 to October Between November 1995 to February 1997, he held the position of General Manager / Director of Credit Leasing Corporation Sdn Bhd. He also held the post of Executive Director of TA Bank of Philippines, Inc from March 1997 to June From June 1998 to July 1999, he was the Chief Executive Officer of TA Securities Berhad. He was appointed as Independent Non-Executive Director of TA Enterprise Berhad on 19 May 2003, a position he holds to-date. He is also an Independent Non-Executive Director of TA Global Berhad, Xin Hwa Holdings Berhad and Pecca Group Berhad, companies listed on Bursa Malaysia. He is also an Independent Non-Executive Director of Tokio Marine Life Insurance Malaysia Bhd, a life insurance company. He also sits on the Board of several private companies and of Asian Outreach (M) Berhad and Pusat Penyayang KSKA, all of which are public limited companies. He is a member of the Company s Audit Committee, Nomination Committee and Remuneration Committee. He has attended all five of the Board Meetings held during the financial period. Since July 1999, he has been a Partner of Messrs Iza Ng, Yeoh & Kit as a practising Advocate and Solicitor. TA Enterprise Berhad Annual Report 15

6 Directors Profile YG BHG DATIN TAN KUAY FONG MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER MR CHRISTOPHER KOH SWEE KIAT INDEPENDENT NON-EXECUTIVE DIRECTOR Mr Christopher Koh Swee Kiat, aged 48, a Malaysian, is the Independent Non-Executive Director of TA Enterprise Berhad. He graduated from the University of Malaya in 1992 and was called to the High Court of Malaya as an Advocate and Solicitor in March He also holds an ACCA postgraduate diploma in Accounting and Finance. He was previously attached with the Corporate Department of an established law firm. Thereafter, he joined TA Securities Berhad as Assistant Manager in November He was appointed the Head of Legal Affairs Department in November He has negotiated and prepared the legal documentation for the various overseas ventures of the company including a bank and stockbroking companies in various countries. He was also the Company Secretary of The Chase Manhattan (M) Berhad (now known as JP Morgan Chase). In 2001, he was the Vice President for MasterCard International in its Asia Pacific regional office in Singapore. He joined Messrs Chris Koh & Chew (formerly known as GH Tee & Co), Advocates & Solicitor in October He was appointed to the Board of TA Enterprise Berhad as Independent Non- Executive Director on 24 May 2006, a position he holds to-date. He specialises in corporate, commercial and finance matters including merger and acquisitions, corporate restructuring, joint ventures, corporate finance, listing of companies, private equity acquisition and matters relating to aviation laws. Now also an Independent Non-Executive Director of the Company, his scope of responsibilities includes extending legal advice and assisting in the acquisition of business interests on behalf of the Company. He also sits on the Boards of TA Global Berhad, a public listed company and TA Investment Management Berhad, a public company which is a wholly-owned subsidiary of TA Enterprise Berhad. He is a member of the Company s Audit Committee, Nomination Committee and Remuneration Committee. He also sits on the investment committee of Mizuho ASEAN Investment Fund LLP. He has attended all five of the Board Meetings held during the financial period. 16 TA Enterprise Berhad Annual Report

7 YG BHG DATIN RAHMAH BINTI MAHMOOD INDEPENDENT NON-EXECUTIVE DIRECTOR Yg Bhg Datin Rahmah Binti Mahmood, aged 58, a Malaysian, is the Independent Non-Executive Director of TA Enterprise Berhad. She graduated with a double Bachelor of Science degree in both Marketing and Mass Communications from Syracuse University, New York. She also obtained a Master in Journalism (PR) from the University of Southern California (USC). She started her own automotive spares manufacturing company, Malaysian Automotive Lighting Sdn Bhd ( Malaysian Automotive ) about 20 years ago in Penang with Robert Bosch Gmbh as the initial partners and later with Magnetti Mirelli of Italy. Malaysian Automotive is now a global manufacturing partnership with Automotive Lighting Reutlingen Gmbh, Germany, manufacturing automotive head lamps and rear lamps for companies such as Proton, Perodua, Suzuki, Mazda and other international car manufacturers and currently she is the Director and shareholder of Malaysian Automotive. She is also the Chairman and Managing Director of Syarikat Mahmood Ambak & Sons Sdn Bhd since 1988, a trading company supplying automotive spares to the Ministry of Defence of Malaysia and the Royal Malaysia Police for the last 20 years. She was then appointed to the Board of TA Enterprise Berhad as an Independent Non-Executive Director on 16 August 2007, a position she holds to-date. She has also diversified her business dealings into Independent Environmental Monitoring and sits on the Boards of Spanfield Sdn Bhd and Clearwater Towers Sdn Bhd, an environmental company. Currently, she is looking into being involved in renewable energy such as solar energy and other manufacturing concerns in Malaysia through a company Solarah Sdn Bhd. She is also a director of Intelligent Power Systems Techonology Sdn Bhd, a company involve in solar panel installations and advice. She has over 25 years of experience in business management, contract negotiations and manufacturing practices. She also has assisted the Malaysian government in bringing in foreign investment into the country especially in the field of manufacturing. She also sits on the Board of TA Global Berhad and Xin Hwa Holdings Berhad, public listed companies. She has attended all five of the Board Meetings held during the financial period. Notes: 1. Family Relationship of Directors Save as disclosed, none of the directors has any family relationship with any director and/or major shareholder of the Company. 2. Conflict of Interest Save as disclosed, none of the Directors has any conflict of interest with the Company. 3. Conviction of Offence Save as disclosed, none of the Directors has been convicted of any offence in the past 10 years. 4. Interest in Securities The particulars of the Directors interest in securities of the Company are set out in pages 57 and 58. TA Enterprise Berhad Annual Report 17

8 Chairman s Statement FINANCIAL REVIEW TA Group recorded a pre-tax profit of RM67.0 million in the Financial Period Ended 31 December 2015 while net profit attributable to shareholders slipped to RM2.3 million. This translated to earnings per share of 0.13 sen in Financial Period ended 31 December The return on shareholders equity stood at 0.1% in the current financial period. The weak net profit was largely attributed to soft operating income coupled with an increase in finance costs. The change in financial year from 31 January to 31 December would also translate to the Financial Period Ended 31 December 2015 comprising only 11 months from 1 February 2015 to 31 December The cumulative 11-month period ended 31 December 2014 is not available for comparison. By segment, the Broking and Financial Services Division registered revenue of RM114.9 million. This segment accounted for approximately 16% of the Group s total revenue in the current financial period. Despite the challenging macro environment, the Broking and Financial Services Division achieved a net segment profit of RM23.2 milion. Between February and December 2015, the average market capitalization of Bursa Malaysia securities stood at RM1.67 trillion, with trading velocity little changed at 30.9% against 30.7% in the previous corresponding period. Revenue derived from the Credit and Lending Division stood at RM20.7 million. Net segment results dropped to RM91.7 million due to lower loan recoveries. The segment also reported foreign exchange gains totaling RM10.4 million. 18 TA Enterprise Berhad Annual Report

9 Dear Shareholders, Once again, it is my pleasure to present the 26th Annual Report and Financial Statements of the Company and the Group for the Financial Period Ended 31 December 2015 on behalf of the Board of Directors of TA Enterprise Berhad. Investment holding reported decent revenue of RM72.5 million for the 11-month period ended 31 December However, the division reported a net segment loss of RM114.1 million, underpinned by a fair value loss on investments amounting to RM135.8 million. Foreign exchange losses totaling RM20.9 million along with high finance costs of RM34.9 million further weakened the segment s results. On the real estate front, the Hotel unit registered RM415.0 million in revenue. Net segment results stood at RM61.8 million but a foreign exchange loss of RM26.9 million resulted in a lower pre-tax profit. in lower revenue of RM42.1 million for Property Development. The division reported a net segment result of RM2.0 milion. Muting the loss is an increase in share of results in joint ventures amounting to RM46.4 million due to an increase in project profit recognition. The Directors proposed a final single tier ordinary dividend in respect of the financial period ended 31 December 2015 of 0.40 sen per ordinary share totalling RM6,848,000 to be approved by shareholders of the Company. Property Investment reported revenue and net segment results of RM44.3 million and RM11.6 million respectively. The lack of property launches in the 11-month period ended 31 December 2015 resulted TA Enterprise Berhad Annual Report 19

10 Chairman s Statement OPERATIONS REVIEW AND DEVELOPMENT 1. STOCKBROKING TA Securities Holdings Berhad (TASH) recorded a pre-tax profit of RM8.8 million for the Financial Period Ended 31 December 2015 with the change in the financial year-end date from 31 January to 31 December will be a challenging year for stocks as various macro and micro factors that have been undermining investor confidence since last year remain unsettled. The weak outlook for the Ringgit caused by the start of monetary tightening in the US and decline in commodity markets especially in the price of crude oil will see continued selling by foreign funds and prevents their swift return. The deteriorating economic fundamentals of China, our largest trading partner and her guidance for a weaker yuan add to the woes. We take cognizance of this difficult period and will engage, monitor, constantly evaluate our business strategies to maximize returns to our shareholders. In the 2nd quarter of 2016, a new branch will be opened in Johor Bahru and subsequently more branches to be opened in other strategic locations. TASH clinched the following 3 awards at The Bursa Malaysia Broker Awards 2015 : i. Champion - Best Retail Equities Participating Organisation (Non-Investment Bank) ii.. Champion - Best Institutional Equities Participating Organisation (Non-Investment Bank) iii. 1st Runner Up - Best Syariah Equities Participating Organisation (Non-Investment Bank) 2. UNIT TRUST AND ASSET MANAGEMENT For the Financial Period Ended 31 December 2015, TA Investment Management Berhad has total assets under management of RM 954 million, being a combination of unit trust funds and direct mandate portfolios under its management. The close to RM1 billion assets under management (AUM) was contributed by both strong increases in TA European Equity Fund (TAEURO) and TA Global Technology Fund (TAGTF). TA Dana Afif Fund (TADA) has also helped in increasing the AUM. The total return for TAEURO and TAGTF for the 1-year period ended 31 December 2015 was 24.50% and 23.89% respectively. Both Funds are managed by Henderson Global Investors Limited, a leading independent global asset management firm. We aim to break through our current AUM to reach 1 billion and will be launching 4 new structured and multi asset funds in 2016 to increase our product range. We are also actively promoting our existing funds in order to build a sustainable and profitable income through diversified multi channels and multi product lines. 3. DERIVATIVES TA Futures continued to win the Bursa Malaysia Berhad s Top Commodity Futures Broker award for the twelfth year in For the 11-month period to 31 December 2015, Crude Palm Oil Futures comprised 70.31% of Bursa Malaysia s derivatives market volume and also 95.19% of TA Futures total derivatives volume. The number of derivatives trading accounts as at 31 Dec 2015 stood at 2,285, an 11.2% increase over 31 January 2015.The company s total trading volume for the Financial Period Ended 31 December 2015 increased from the corresponding period before by 5.6% to 3.47 million contracts. Meanwhile total trading volume on Bursa Malaysia s derivatives market increased by 9.7% to million contracts over the same period. TAF s operating revenue for the Financial Period Ended 31 December 2015 amounted to RM12.19 million compared to RM12.9 million for the 12-month period to 31 January Profit Before Tax for the Financial Period Ended 31 December 2015 amounted to RM1.17 million compared to RM3.36 million for the 12-month period to 31 January Although TAF will continue to be dominant in the Crude Palm Oil derivatives, we take note that there is a need to invest more resources to improve our presence in the retail derivatives market as well as in the institutional KLCI Index Futures market. 20 TA Enterprise Berhad Annual Report

11 4. CREDIT AND LENDING The Division s profit before tax was RM96.4 million for the Financial Period Ended 31 December The RM91.7 million net segment results were attributed to challenging market conditions. Short Term Loan Financing will be our main business focus for We will work closely with the business units of TA Group to increase our loan portfolio. This includes complementing our TA Securities stock broking business by providing corporate lending, financing of private placements, rights issue and share investments. We look forward to a favourable FY 2016 with our business strategies and initiatives in place. 5. PROPERTY DEVELOPMENT MALAYSIA Stringent bank lending policies, cooling measures introduced by the government in 2014 and implementation of the Goods & Services Tax (GST) in 2015 continued to dampen buying sentiment and contributed to a softer property market demand. Statistics compiled by the National Property Information Centre showed that four major states, KL, Selangor, Penang and Johor experienced a contraction in total residential transaction volume and value of 12% and 16% year-on-year respectively in the first 9 months of While conditions have not improved in 2016, we are still cautiously optimistic about our business prospects due to the strategic location of our property developments and the weak ringgit that has potential to attract foreign buyers for our up market developments. Damansara Avenue, Petaling Jaya Damansara Avenue is our visionary masterpiece of business, leisure and residential development sprawled over 48 acres of freehold land amidst a 7-acre urban park, alfresco dining outlets and commercial retail. This integrated development is expected to fetch a gross development value of approximately RM 3.8 billion over the next ten years. The initial phase of development known as Ativo Plaza and Azelia Residence have received good take-up rate. We will be embarking on our next project comprising 668 units of service apartments housed in two iconic towers named Ativo Suites in the 3rd quarter of Next in the pipeline is Ativo Annexe, an integrated development with office and residential elements above a street mall retail plaza featuring lush landscaping. It was conceived to augment the retail section of Ativo Plaza and to enhance the value of surrounding residences. TA 3 & 4, Kuala Lumpur TA 3 & 4 is a 2.47 acre of prime land situated on the apron of the Kuala Lumpur City Centre footprint along Jalan P. Ramlee. Excavation, piling and basement works commenced on 10 March 2015 and expected to be completed in the first half of The two 50-storey iconic towers and a 5-storey podium will house a 5-star full service hotel and apartments, retail shop lots, exquisite Food & Beverage (F&B) outlets and innovative residential components that offer the best of luxury living in an urban environment. The completed towers will be a showcase of TA Global s strength in creating lifestyle properties. Nova Square, Bukit Bintang Located right in the heart of Kuala Lumpur s Golden Triangle, Nova Square is a acres freehold mixed development consisting of 1 tower of iconic lifestyle residences, 1 tower of strata offices and 1 tower of boutique hotel and serviced residences with 2 levels of podium F&B and entertainment outlets. It is immensely accessible via the Smart Tunnel, Jalan Tun Razak and Jalan Ampang to other parts of Kuala Lumpur and Selangor. The expected GDV for this project is approximately RM2.5 billion. TA Enterprise Berhad Annual Report 21

12 Chairman s Statement Dutamas, Kuala Lumpur This strategic 4.55 acres of freehold land is nestled in the vicinity of the exclusive and affluent residential enclave of Kenny Hills, Sri Hartamas and Mont Kiara. The development order has been approved for this low density development of 2 blocks of condominium with a GDV of RM482 million and it is targeted to be launched in the 4th quarter of CANADA Trump International Hotel & Tower Vancouver - Vancouver, Province of British Columbia, Canada Trump International Hotel & Tower Vancouver is an iconic 63-storey mixed-use tower comprising a luxury hotel with 147 guest suites, 217 high-end residential suites, a 4-level podium and an 8-level underground car park. The 217 residence suites are currently 98.62% sold as of February 2016 with a total sales value of CAD393.9 million. The residences will be completed and handed over to the purchasers by the 2nd Quarter of While the Hotel with its 147 guest suites, champagne lounge, signature restaurant, Trump Spa and pool bar nightclub anticipated to be opened for business in the summer of The balance unsold inventory 2 units are the penthouses which will be re-designed by world renowned designers and will be exclusive real estate to be sold at later. We expect to sell out the remaining few penthouses in the near future with Canada witnessing a significant wave of Asian investors buying real estates across the country. AUSTRALIA Little Bay Residential Development Project, Sydney, New South Wales The Group acquired the 13.6 hectare rare ocean front land in Little Bay in May, 2014 to develop 582 houses and apartments with an estimated GDV of AUD700 million. Little Bay Cove is envisaged to be one of Sydney s landmark lifestyle residential developments to be delivered over a period of seven years. 6. PROPERTY INVESTMENTS MALAYSIA Menara TA One, Kuala Lumpur Menara TA One continues to yield strong income on the back of high occupancy rates. This 36-storey grade A office building is home to services companies in the technology, oil & gas, property management and financial industries. Renovation work to upgrade the facilities is scheduled for completion by the 3rd quarter of The yield and occupancy of the building are set to improve further. Starbucks Coffee opened their doors for business in March 2016 on the ground floor of Menara TA One and this will be followed by a high-end restaurant and bar on the roof-top of our building by the 3rd quarter of Retail and Office Suites at Subang Business Centre (USJ 9) and Taipan USJ 10, Petaling Jaya Our retail and office suites at Subang Business Center continue to enjoy stable yields with an occupancy rate of 96%. The operations of Subang Jaya branch of TA Securities are housed in the Centre. Retail units at Ativo Plaza, Damansara Avenue The occupancy rate of our 43 retail units at the ground and first floor level of Ativo Plaza improved from 91% last year to 95% currently. The office suites also reported a higher occupancy rate. 22 TA Enterprise Berhad Annual Report

13 CANADA FortisBC Centre, Vancouver In 2014, FortisBC Centre commenced the construction of the brand new 18,000 square feet glass structure conference facility to be connected to Trump International Hotel & Tower Vancouver. This conference facility is scheduled for opening in early July 2016 and will be leased to Trump International Hotel & Tower Vancouver. An overall major upgrade and interior cab modernization of the elevators since mid 2015 are likely to contribute to higher lease rate upon completion in early The new elevator system is already operational and has increased efficiency by 33%. Despite keen competition with an additional one million square feet of newly constructed space entering the market, building occupancy levels of the FortisBC Centre remained at 87.1% in The average lease rate increased by 4% and led to an increase in revenue. 7. HOTEL OPERATIONS THAILAND Mövenpick Resort & Spa, Karon Beach, Phuket In 2015, Movenpick Resort and Spa recorded an increase in total revenue by THB2.6 million, mainly contributed from the food and beverage department. Occupancy rate increased by 7.9% but there was a decline of THB600 in the Average Daily Rate (ADR) due to a change in customer mix and stay period. However, the Gross Operating Profit (GOP) for 2015 rose by THB17.4 million to THB million due to effective cost saving measures. AUSTRALIA Radisson BLU Plaza, Sydney Occupancy rate increased marginally from 86.9% to 87.1% despite with 3,000 room nights being unavailable due to refurbishment works since October The Hotel also successfully achieved an increase in total revenue and GOP by AUD394,141 and AUD900,501 respectively in year 2015 compared to year Radisson BLU Plaza continues to uphold its award winning records and various awards have been won by the Hotel for year The Westin Melbourne, Melbourne The Westin Melbourne performed relatively well in 2015 where the Hotel saw an increase of AUD3.1 million in revenue and registered the highest occupancy rate of 92.8%. Its RevPAR was positively driven by both occupancy and ADR of AUD308, which exceeded the previous year by AUD19. It was ranked No.1 once again in its competitive set for market share. The Hotel achieved a high GOP margin of 45.6% for the year 2015 due to effective cost savings initiatives. SINGAPORE Swissotel Merchant Court, Singapore The occupancy rate decreased marginally by 1.6% despite weak market conditions and loss of room nights due to refurbishment works. The Hotel managed to sustain its ADR and RevPAR with only a slight decline of 1% and 2.8% versus the market decline of 3.3% and 3.7% respectively. The growth outlook for Singapore in 2016 remains modest and focus will be on the timely completion of refurbishment works and improved marketing strategies. TA Enterprise Berhad Annual Report 23

14 Chairman s Statement CHINA Swissotel Kunshan, China. The Hotel completed 2015 with a 2.2% year-on-year increase in occupancy rate. Total revenue was down by RMB4.7 million from RMB68.5 million due to renovation of the ballroom, which impacted meeting groups and banquet business. Looking ahead, we expect a solid performance with the launch of the new Executive level Rooms and Lounge. The new ballroom and meeting space have garnered record breaking revenues in January Swissotel Kunshan has also been selected as the main Hotel for the prestigious Thomas & Uber Cup World Badminton Championship in May CANADA Aava Whistler Hotel In 2015, Aava was able to achieve over CAD7.9 million in revenue, a 10.4% increase over 2014, and the best recorded revenue in the hotel s history. During the winter season of 2015/16, we achieved three consecutive million dollar months in Room Revenue, which is a remarkable achievement only witnessed during February of 2010 when Whistler hosted the Winter Olympics. A brilliant dry and sunny summer followed by a near-perfect winter season in 2015/16 with plenty of snow and above average weather conditions provided the perfect scenario to make substantial gains in performance metrics. Another variable that contributed to our success was the steep decline in the Canadian dollar, which immediately stimulated record setting international travel demands. While annual occupancy only showed a 2% lift over 2014 due to a saturated high seasonality, our 68.1% occupancy exceeded the village average by almost 10%. Our ADR showed strength and strong gains in all compression periods gaining 6% YOY; an increase of over CAD8.58. The RevPAR showed a healthy lift of 9.2%, breaking through the CAD100 barrier at CAD These metrics translated into a healthy momentum towards our bottom line with a GOP achievement of CAD2.9 million, which is a 31.7% increase over our 2014 figures. Moving into 2016, we anticipate the healthy economy and attractive Canadian dollar to continue to drive considerable demand and measurable rate of growth. While compression periods in Whistler are fairly defined, shoulder season performance should continue to improve and occupancy rates should remain very strong. Thus, we look forward to continue achieving positive results by driving ADR gains, occupancy and overall revenue to new levels. 8. CORPORATE GOVERNANCE On the corporate governance front, the board of directors is committed towards adhering to the requirements and guidelines as set forth in the Malaysian Code on Corporate Governance 2012 as well as the Main Market Listing Requirements and will ensure the guiding principles and recommendations in corporate governance are engaged effectively in our practices and policies in the best interest of the stakeholders. 9. PROSPECTS AND OUTLOOK Global economic growth is expected to moderate in 2016 with risks tilted towards the emerging markets. Malaysia s economic resilience will be tested from various angles especially in terms of competitiveness and sustainable long term growth. In addition to economic uncertainties, the domestic capital market is also facing additional challenges in the form of foreign fund selling as prospects of monetary tightening in the US and the prolonged weakness in commodity prices weighs on the ringgit. Thus, we anticipate the equity market to remain volatile. However, the benchmark index could end the year on a positive note as central banks and governments of major nations continue to pursue unconventional monetary measures and fiscal policies respectively to stimulate the sluggish global economy. 24 TA Enterprise Berhad Annual Report

15 The Malaysian property market will not escape the vagaries of adverse economic conditions, aggravated by inflation, job cuts, removal of subsidies, tightening of bank lending, oversupply and negative effects from the implementation of GST. Developers are expected to brace for a difficult 2016 as demand for property is expected to be subdued. However, we see pockets of opportunity on the local property scene in KL that is supported by a young demography, healthy employment conditions, high household income and ongoing infrastructure works for public transportation. Most of our land banks are strategically located to seize the benefits from these developments such as proximity to LRT/MRT stations and popular landmarks. We expect Menara TA One and future projects like TA3 & 4, Dutamas and Damansara Avenue to yield reasonable returns to the Group. In Canada, high hopes continue to be placed on the trade sector, aided by the weak Canadian dollar, to contribute to its forecast economic growth of 1.7% in 2016.The pump priming by the Liberal government, weak Canadian dollar and low interest rate of 0.5% may help to boost the property market and benefit our key development projects in the country. On the Vancouver front, with the demand for its residential market escalating noticeably over the past 12 to 18 months, we hope to achieve 100% sales in our Trump International Hotel & Tower Vancouver project in the coming year when the project completes. The Reserve Bank of Australia delivered a cautiously upbeat outlook on the Australian economy in the face of a global financial turmoil and fears of a sharp slowdown in China s economy. Among the qualified optimism on the local outlook given are a falling jobless rate, low inflation, a lower Australian dollar and the transition out of a reliance on the mining investment boom for growth to a broader range of economic activities. Real GDP for the country is expected to remain steady at between 2.5% and 3.5% in While significant steam appears to have gone out of the real estate markets especially in hot areas such as Sydney and Melbourne, building approvals still remained at high levels. Sydney and Melbourne recorded the strongest property performance in 2015 and we expect this trend to continue into 2016 with a more subdued rate growth than previous years. Overall, on the property development front, we will continue to seek opportunities to grow our land banks and business locally and internationally. On the flip side, the weakening of local currencies vis-à-vis the US dollar could be a boon to our hospitality business in Canada, Australia, Singapore, China and Thailand as it makes these destinations cheaper for travelers from the US. European travelers will also find it cheaper to visit Australia and Canada based on the euro s strength. As part of our growth strategy for our Hospitality Division, we will continue with our refurbishment works where necessary to improve our product offerings, build new hotels within our projects in Malaysia and explore opportunities to leap frog earnings through new hotel acquisitions. Barring any unforeseen circumstances, the Board of Directors expects the Group s performance to be satisfactory for the financial year ending 31 December ACKNOWLEDGEMENT On behalf of the Board, I would like record my sincere appreciation to all our valued shareholders, business partners, clients, financiers and all regulatory bodies for their support and trust. My heartfelt thanks also go to our remisiers, agents, management team and staff of TA Group for their loyalty, dedication and contribution that made 2015 a meaningful year for the Group despite the challenges. Special thanks as well to every board member of TA Enterprise Berhad and its subsidiaries for their continued guidance and support throughout the year. With that, I seek the commitment and involvement of all stakeholders to continue striving for excellence and working synergistically for a greater year ahead. Non-Independent Non-Executive Chairman TA Enterprise Berhad Annual Report 25

16 Statement on Corporate Social Responsibility TA continues to play an active role as a responsible corporate company to improve the living standards of the poor and needy through many Corporate Social Responsibility ( CSR ) activities. TA believes in giving back meaningfully to the local community through a wide range of CSR activities that promote healthcare, education and providing financial assistance to the poor and needy, and also through staff engagement and volunteerism. TA S RESPONSIBILITY TO THE COMMUNITY TA has adopted a few homes and organizations under its CSR wings and donates on a monthly basis to help fund their operational expenses. Desa Amal Jireh TA Group makes a monthly contribution to Desa Amal Jireh Home at Semenyih which houses 101 children from ages 1-23 who are orphans, from single parents or poor families. The home provides shelter, education, counselling and motivation to the children equipping them to adapt to society when they leave the home. They also home- school 26 children and the teacher with the older children will go to the orang asli community in Mantin weekly to teach Basic English. Grace Community TA Group has provided 4 shop lots in Klang to Grace Community Services (GCS) in 2011 to store the bulk food donations and as a community centre for various social activities. GCS is a non-profit charitable organization established to care for the destitute, handicapped, orphans and widows. The food bank was set up with the primary objective of providing basic food items to charitable homes, rehabilitation centres and the poor in Klang, Kuala Lumpur, Shah Alam and the surrounding states. TA Group is also donating a fixed monthly sum to help the various charitable activities such as the food bank, clinic for the poor, Persatuan- Rumah Kids and shelter for the homeless and abused women. 26 TA Enterprise Berhad Annual Report

17 Datin Alicia Tiah holding up a uniform made by the students Datin Alicia Tiah with the centre facilitator and students Women eager to learn TA Family Living Skills Centre Women eager to learn TA Family Living Skills Centre ( TAFLSC ) was set up in August 2015 under the sponsorship of TA Foundation, which is located in the heart of Taman Medan, Petaling Jaya. One of the main reasons this community was chosen was because of its social-economic conditions associated with the prevalent urban poverty. The 2013 SPR registered voters (above 21 years old) showed 43,000 voters in Taman Medan of whom many were BR1M recipients - 14,700 (monthly household gross income below RM3,000). The major deprivations of the urban poor are unbalanced meals, insecure housing and lack of basic support services especially education and healthcare. If such basic needs of our urban poor residents are not adequately addressed, they can potentially lead to hostile neighborhoods, broken families, high health costs - physically and mentally, and illicit income. With these concerns in mind, TAFLSC hopes to uplift the conditions of the urban poor in Taman Medan. With a synergistic multi-pronged approach, TAFLSC aims to improve the lives of all three components of the family unit Father, Mother and Child. This is premised on the belief that such a comprehensive approach will yield better success and longer lasting impact than individual effort. Phase 3: Fathers To provide skills to single or poor fathers - fish farming, hydroponics farming, job matching With this approach, TAFLSC hopes to empower the families with financial self-reliance by focusing on skills and knowledge needed at work, at school, within each family unit and by extension, the society. TAFLSC has launched Phase 1 which is sewing classes for single or poor mothers, regardless of race and religion. The classes are held in the mornings, 4 days a week for 3 months before they graduate from basic sewing class. Since the first day of class, the women have learnt how to cut and sew curtains for the centre, their own work uniforms, table napkins and aprons. Subsequently the centre will launch Phase 2 and 3 once the sewers are able to generate regular income. TAFLSC is now open to sewing contracts from corporates, schools, associations and individuals to generate income both for the women and the centre in order to be self-sustaining. For those looking to use our centre s sewing services, please us at tafamilylivingskillscentre@gmail.com or call (10:00am to 3:00pm - Mondays to Fridays). Phase 1: Mothers To provide sewing classes to single or poor mothers and re-hiring them for contracts Phase 2: Children To provide educational and motivational classes for their school-going children TA Enterprise Berhad Annual Report 27

18 Statement on Corporate Social Responsibility Harvesting crops Datin Alicia Tiah holding up a uniform Fish made Farming by the students Datin Alicia Tiah with the centre facilitator Computer and students room 02 Shepherd Centre Foundation (2 Orphanage Homes for Boys & Girls) Shepherd Centre Foundation was founded by Pastor Jacop and his wife in 1993 and their first location was at Semenyih where they provided a home for boys and girls who have been orphaned, abused or abandoned. The objective of this home was to provide the underprivileged boys with a conducive and loving environment to grow up as responsible citizens. The 2 homes currently take care of about 80 children and abandoned senior citizens. Their second location was housed in a home built on a community land in Bukit Beruntung. The new home was opened in January, 2014 and provides a head start for about 15 boys from ages 6-18 with education, skills training, character molding and spiritual guidance. In order to be self sufficient, they have started their own bakery, vegetable farming, chicken rearing and fish farming which are being tended by the students themselves. TA Mobile Clinic Doctors & Volunteers Gethsemane Medical Care (TA Mobile Clinic) TA Group works together with Gethsemane Medical Care to set up TA Mobile Clinic in 2007 to provide free medical treatment and care to the more needy community, regardless of race and religion in the outskirts and orang asli villages. The clinic is held during weekends and a team of 2 or 3 doctors with 10 volunteers will give medical assistance to the marginalized community. This ministry transcends all boundaries as free medical care is also given to many foreign workers and refugees in our country and has greatly impacted many lives. This collaboration helps create a sustainable healthcare programme for the underprivileged and unreached groups. On top of that, TA has also made cash donations / donations in kind to the following homes to assist the homes in operating costs and basic needs. Yayasan Latihan Insan Istimewa Ipoh, Perak Victorious Living Assembly Persatuan Dialisis Kurnia Petaling Jaya, Selangor Ray of Hope 28 TA Enterprise Berhad Annual Report

19 TA S RESPONSIBILITY TO ITS EMPLOYEES Work-life Balance TA has always emphasized and is committed to promoting the well-being of our staff in the workplace. TA staff enjoys a free gym membership to our TA s gymnasium located on the 11th floor of Menara TA One. The fully equipped gymnasium was set up in year 2005 for the benefit of the staff. TA believes that a healthy body through regular exercise promotes higher productivity and also creates a work life balance Annual Dinner Committees Datuk Tony Tiah and Datin Alicia Tiah with their portrait Best Dressed winners for East and West Category TA Annual Dinner (World Cultural Night) In year 2015, TA held an amazing annual dinner night themed World Cultural Night at Mandarin Oriental which saw many talented and dedicated TA staff coming together and working as a team to make the night a success. Many staff also made the effort to dress up in various world cultural attires which created an international atmosphere. The cultural night was further enhanced by great performances by our very own TA staff from different departments. Overall, the annual dinner was a success and everyone was truly entertained and had a great time bonding with their fellow colleagues. TA S RESPONSIBILITY TO THE ENVIRONMENT TA is committed to reducing consumption of resources and energy by minimizing wastages. We have embarked on recycling plans at all levels. Going Environmental Friendly TA has also installed energy saving light bulbs to preserve the environment and to lower energy consumption. As part of TA s effort to reduce paper wastage, we have adopted the E-Board Papers & E-Info Meeting Concepts. Board papers and reports are circulated via s or compact discs to Management and Board of Directors. The E-Board Papers are also projected on screen during all the Board and Committee meetings. TA Enterprise Berhad Annual Report 29

20 5 -Year Group Financial Summary (Restated)# (Restated)# PERIOD / YEAR ENDED 31-Dec Jan Jan Jan Jan-12 (RM '000) (RM '000) (RM '000) (RM '000) (RM '000) OPERATING RESULTS Revenue 721, , , , ,135 Profit before tax 66, , , , ,559 Profit after taxation 18, , , , ,642 Profit attributable to equity holders of the parent 2, , ,032 82,329 99,331 KEY FINANCIAL POSITION DATA Total assets 6,718,275 6,087,057 5,843,237 5,309,300 4,583,073 Cash and cash equivalents * 323, , , , ,973 Total liabilities 3,394,614 2,987,946 2,811,333 2,385,668 1,777,476 Total borrowings** 2,765,309 2,244,682 1,688,029 1,304, ,732 Paid up share capital 1,711,910 1,711,910 1,711,910 1,711,910 1,711,910 Equity attributable to owners of the Company 2,216,272 2,084,724 1,792,481 1,692,681 1,598,599 SHARE INFORMATION Per share (sen) - Earnings (Basic) Earnings (Fully diluted) Net tangible assets ^^ Gross dividends Share price as at 31 December/ January (RM) Market capitalisation (RM'000) 1,027,146 1,283,933 1,283, ,074 1,044,265 FINANCIAL RATIOS Return on total assets (%) 0.03% 1.9% 2.3% 1.6% 2.2% Return on shareholders' equity (%) 0.1% 5.4% 7.6% 4.9% 6.2% Gearing ratio (times) Price to earnings ratio (times) * Comprise cash and short term deposits but excluding remisiers' monies, bank overdrafts and deposits pledged for banking facilities. ** Comprise term loans, revolving credits and bank overdrafts denominated in RM and foreign currencies. ^^ Net tangible assets = total assets - total liabilities - intangible assets - deferred tax assets + deferred tax liabilities. # Certain comparative figures of the prior years were restated mainly to reflect the adoption of new/revised financial reporting standards, changes in accounting treatment and reclassifications to conform with current year presentation. 30 TA Enterprise Berhad Annual Report