Berita Harian 10 September The Star 9 September 2016

Transcription

1 Our Newsboard Berita Harian 10 September 2016 The Star 9 September 2016 HUA YANG BERHAD ANNUAL REPORT 2017

2 TheEdgeProperty.com 31 January 2017 Focus Malaysia 28 January 2017 Sinar Harian 20 March 2017 Kosmo 21 February

3 Group leadership Board of directors Chew Hoe Soon Non-Independent Non-Executive Director Member of Audit Committee, Remuneration Committee and Nomination Committee Tan Sri Dato Seri Dr. Ting Chew Peh Chairman/Independent Non-Executive Director Chairman of Audit Committee and Nomination Committee Member of Remuneration Committee Ho Wen Yan Chief Executive Officer/ Executive Director HUA YANG BERHAD ANNUAL REPORT 2017

4 Chew Po Sim Non-Independent Non-Executive Director Dato Wan Azahari Bin Yom Ahmad Independent Non-Executive Director Ho Mook Leong Non-Independent Non-Executive Director Dato Tan Bing Hua Senior Independent Non-Executive Director Chairman of Remuneration Committee Member of Audit Committee and Nomination Committee 20

5 Profile Of Directors Tan Sri Dato Seri Dr. Ting Chew Peh Aged 74, Malaysian, Male. Chairman/Independent Non-Executive Director Chairman of Audit Committee and Nomination Committee Member of Remuneration Committee Tan Sri Dato Seri Dr. Ting Chew Peh was appointed to the Board of Hua Yang Berhad ( Hua Yang ) on 1 June 2000 and was made the Chairman of the Board. He has a Bachelor of Arts Degree from University of Malaya and a Master of Science Degree from University of London. He also holds a Doctorate in Philosophy, which he obtained from University of Warwick. Tan Sri Dato Seri Dr. Ting started his career as a lecturer in the Faculty of Social Sciences and Humanities at Universiti Kebangsaan Malaysia in 1974 until He was then appointed as an Associate Professor at the Faculty until In 1987, Tan Sri Dato Seri Dr. Ting ventured into politics with his election as a Member of Parliament for the Gopeng constituency, which he held until the 2008 general elections. He previously served as a Parliamentary Secretary of the Ministry of Health ( ), Deputy Minister in the Prime Minister s Department ( ), Minister of Housing and Local Government ( ) and Secretary-General of Malaysian Chinese Association (MCA) ( ). He currently sits on the Boards of Puncak Niaga Holdings Berhad, Johan Holdings Berhad and UTAR Education Foundation, Sycal Ventures Berhad and also serves as a Director of several private companies. Ho Mook Leong Aged 57, Malaysian, Male. Non-Independent Non-Executive Director Mr. Ho Mook Leong was appointed to the Board of Hua Yang on 31 January He has a Degree in Civil Engineering from Ohio State University, United States of America. Mr. Ho Mook Leong started his career as a Site Engineer with IOI Properties Berhad in 1984 and subsequently left to join Hua Yang as Project Manager in 1988 to oversee the property development projects in Ipoh. From 1991 to 1997, Mr. Ho Mook Leong was on secondment to one of the associate companies to manage another mixed property development project in Ipoh. Having acquired extensive experience and expertise in project management and construction related fields over the years, he became General Manager of Hua Yang in 1997 to oversee all the development projects of Hua Yang Group. Mr. Ho Mook Leong left Hua Yang in year 2000 to pursue his own consultancy business. In the preparation for the initial public listing of Hua Yang in 2001/2002, Mr. Ho Mook Leong re-joined the Company as Executive Director on 2 January He was promoted to Chief Operating Officer and Chief Executive Officer of Hua Yang on 1 September 2003 and 1 June 2007 respectively. He resigned as Chief Executive Officer of Hua Yang on 19 August 2010 to pursue his own business interest and remains as Non- Executive Director on the Board of Hua Yang. Chew Po Sim Aged 74, Malaysian, Female. Non-Independent Non-Executive Director Mdm. Chew Po Sim was appointed to the Board of Hua Yang on 27 January She holds a teaching certificate and on her early retirement from the teaching profession, she ventured into a horticulture trading business for more than 20 years. Mdm. Chew Po Sim is also currently overseeing her investment holding company, namely Heng Holdings Sdn Berhad, the substantial shareholder of the Company. HUA YANG BERHAD ANNUAL REPORT 2017

6 Ho Wen Yan Aged 43, Malaysian, Male. Chief Executive Officer/Executive Director Mr. Ho Wen Yan was appointed to the Board of Hua Yang on 1 June He received his architectural training in the United Kingdom at the University of Bath and the Architectural Association. He also holds a Master of Science (Construction Economics and Management) Degree from University College London. He joined Hua Yang on 20 October 2003 as a Project Coordinator at its Johor Branch. He has been an Executive Director of the Group since 1 June 2007 and was appointed Chief Executive Officer on 20 August He was appointed to the Board of Magna Prima Berhad on 13 February 2017 as Executive Director. Chew Hoe Soon Aged 65, Malaysian, Male. Non-Independent Non-Executive Director Member of Audit Committee, Remuneration Committee and Nomination Committee Mr. Chew Hoe Soon was appointed to the Board of Hua Yang on 2 June He holds a Bachelor of Economics (Accounting) Degree (Honours) and a Diploma in Accounting, both from University Malaya. He is a member of the Malaysian Institute of Accountants (MIA). Mr. Chew Hoe Soon has extensive working experiences in the field of finance and sales & marketing of consumer products, having held the position of Managing Director in a large multinational company for a number of years. Dato Tan Bing Hua Aged 73, Malaysian, Male. Senior Independent Non-Executive Director Chairman of Remuneration Committee Member of Audit Committee and Nomination Committee Dato Tan Bing Hua was appointed to the Board of Hua Yang on 16 January He graduated from University of Malaya with a B.A (Hons) degree in year In 1982, he decided to further studies in law, graduating with L.L.B. (Honours) degree from the University of London in 1985 and a Barrister-at-Law of the Lincoln s Inn, England in Dato Tan Bing Hua started his career in public service in Bank Negara Malaysia upon his graduation in 1967 where he served for a period of 15 years until He then practised law in the firm of Amin-Tan & Co in Kuala Lumpur from 1987 to 2012 upon his call to the Malayan Bar in Thereafter, he continued to practise law in the firm of Choong & Partners from 2013 to He currently sits on the Board of Far East Holdings Berhad as an Independent Non-Executive Director. Dato Wan Azahari Bin Yom Ahmad Aged 54, Malaysian, Male. Independent Non-Executive Director Dato Wan Azahari Bin Yom Ahmad was appointed to the Board of Hua Yang on 19 August He holds a certificate in Business Studies. Dato Wan Azahari has 20 years of experience in the building and electrical construction industry. He is currently the Group Director to Yom Ahmad Ngah Holdings Sdn Bhd Group of Companies. 22

7 Other Information Of Directors FAMILY RELATIONSHIP None of the Directors have any relationship with each other and major shareholders of Hua Yang except that Ho Wen Yan is the son of Chew Po Sim and the nephew of Ho Mook Leong and Chew Hoe Soon. Chew Po Sim and Chew Hoe Soon are siblings and Chew Po Sim is the sister-in-law of Ho Mook Leong. Chew Po Sim is the mother of Ho Min Yi, Ho Wen Yan, Ho Wen Han and Ho Wen Fan, the major shareholders of Hua Yang. CONFLICT OF INTEREST None of the Directors have any conflict of interest with the Company. LIST OF CONVICTIONS OF OFFENCE None of the Directors have been convicted for any offences (other than traffic offences), public sanction or received any penalty imposed by the relevant regulatory bodies inside or outside Malaysia within the past five (5) years. ATTENDANCE OF THE BOARD All the Directors have complied with the minimum 50% attendance in respect of Board Meeting as stipulated by the Listing Requirements. There were five (5) Board Meetings held during the financial year ended 31 March 2017 and the attendance of each Director is as follows:- NAME OF DIRECTOR ATTENDANCE 1. Tan Sri Dato Seri Dr. Ting Chew Peh 5/5 2. Ho Wen Yan 5/5 3. Dato Tan Bing Hua 5/5 4. Ho Mook Leong 5/5 5. Chew Po Sim 5/5 6. Chew Hoe Soon 5/5 7. Dato Wan Azahari Bin Yom Ahmad 4/5 HUA YANG BERHAD ANNUAL REPORT 2017

8 PROFILE OF SENIOR MANAGEMENT Ho Wen Yan Aged 43, Malaysian, Male. Chief Executive Officer / Executive Director Mr. Ho s profile is set out on page 22 of this Annual Report. Tan Hwai Lun Aged 40, Malaysian, Male. Chief Financial Officer Mr. Tan joined Hua Yang as Financial Controller in July 2011 and was promoted to Chief Financial Officer in May He is a member of Malaysia Institute of Accountant ( MIA ) and CPA Australia. He has more than 10 years of financial management working experience. He oversees the finance strategy and planning of the Group. Ng Kok Hong Aged 41, Malaysian, Male. General Manager Mr. Ng joined Hua Yang in March 2011 as Branch Manager in lpoh. He graduated with Degree in Civil Engineering (Hons.) from University of Malaysia, Sabah. He has more than 15 years of working experience in planning, directing, designing, and coordinating various property development projects. His main portfolio is overseeing Northern operation that covers Perak and Penang. Wong Kam Moi Aged 54, Malaysian, Female. Branch Manager She joined Hua Yang in 2003 and her main portfolio is to oversee all operational aspects of Johor Branch. She has more than 25 years of working experience in planning, organising, preparing and arranging sales implementation strategies. Yeoh Swee Heng Aged 48, Malaysian, Male. Assistant General Manager Mr. Yeoh joined Hua Yang as Project Manager in 31 March 2008 and was promoted to Assistant General Manager in April He obtained his Bsc (Hons) Building Construction Management from Sheffield Hallam University, United Kingdom. He has extensive experience in construction and property development. He oversees property development operation and land search of the Group. 24

9 Nurhayati Binti Zubir Aged 41, Malaysian, Female. Assistant General Manager She joined Hua Yang in November 2013 as the Human Resource Manager and was promoted to Assistant General Manager in April She is a graduate from the University of North London, United Kingdom with a Degree (Hons) Human Resource with Marketing in On joining Hua Yang Berhad, she brought with her 13 years of working experience in the Securities Industry Development Corporation (SIDC), the development arm of the Securities Commission of Malaysia in the areas of training, marketing and corporate services as well as human resource. Currently, she oversees the effectiveness of the human capital functions of the Group. Tan Kwee Far Aged 44, Malaysian, Female. Assistant General Manager Ivy Tan joined Hua Yang in May 2013 as Administration Manager and was promoted to Assistant General Manager in April She holds certificate of Journalism in year 1993 and LCCI Higher Diploma in year She has more than 15 years of working experience in the areas of Accounts & Finance, Administration and Human Resource. Currently, she is responsible for office administration and operations functions of the Group. Notes: Save for the Chief Executive Officer who has family relationship with other Directors and/or major shareholder of Hua Yang Berhad as disclosed on page 23 of this Annual Report, none of the Key Senior Management have: Any family relationship with any Directors and/or major shareholders of Hua Yang Berhad; Any conflict of interest with Hua Yang Berhad; and Any conviction for offences (other than traffic offences), public sanction or received any penalty imposed by the relevant regulatory bodies inside or outside Malaysia within the past five (5) years. HUA YANG BERHAD ANNUAL REPORT 2017

10 Chairman s statement Dear Shareholders, It has been an eventful year for Hua Yang Berhad ( Hua Yang ) as we continue to build on our platform and extend our reach as one of the leading developers of affordable homes in Malaysia. Tan Sri Dato Seri Dr. Ting Chew Peh Chairman 26

11 Chairman s statement (CONT D) Aerial view of Taman Bercham Utara, Perak Even as the property market remains subdued, we have been unwavering in the pursuit of our pioneering vision to enable affordable home ownership for Malaysians. Our achievements in no small measures are attributed to the perseverance of our resourceful and dynamic management and project teams. Led by Ho Wen Yan, our Chief Executive Officer, we have firmly kept our pulse on current market trends, and progressively delivered quality and innovative development products that have enabled us to stamp our growing presence in the affordable homes segment. Amongst our launches in the year, I am particularly proud of our maiden foray into the Penang property market. Our launch of MERITUS RESIDENSI serviced apartments on Penang Mainland was met with much fanfare and interest. With a few more parcels earmarked for future development on Penang Mainland itself, we can be proud to lay claim to expanding our brand of affordable homes to the northern region, from our existing presence in the Klang Valley, Perak, Johor and Negeri Sembilan. Our financial performance was satisfactory, in parts due to the completion of several serviced apartment projects, namely METIA RESIDENCE, RESIDENSI FLORA@ONE SOUTH and SENTRIO SUITES; all three which were successfully handed over to our buyers. Albeit that the property market is facing some headwinds, Hua Yang has maintained an uninterrupted profit track record and sustained healthy profit margins in our development activities. This underscores our growing strength as a developer of affordable homes. Hua Yang has proposed a final single tier dividend of 2 sen per share. If approved at the upcoming Thirty-eighth Annual General Meeting, this would translate to a total single tier dividend of 4 sen per share for the financial year. We will strive to consistently reward our shareholders with dividend payments. However, we must also be mindful to strike a right balance in reinvesting our profits into our core development business to deliver longer term growth. HUA YANG BERHAD ANNUAL REPORT 2017

12 This year we look forward with anticipation to our debut launch at Puchong West, our new integrated residential development within the Klang Valley which commands a total estimated Gross Development Value in excess of RM2 billion. Located within the proximity to the bustling Pusat Bandar Puchong district, this new flagship project offers exciting prospects with our plans to roll out a diverse suite of products that should continue to appeal to buyers in the affordable home segment. Yet another significant milestone for Hua Yang this year is our pursuit of the strategic acquisition of Magna Prima Berhad ( Magna Prima ). Once the second tranche 20% acquisition is completed, we would emerge as the single largest shareholder of Magna Prima with an approximately 31% equity interest. As their landbank is predominantly located within the Klang Valley, our strategic investment in Magna Prima would enable us to strengthen our presence in the central region, and to tap into the upside potential of their prime landbank. The development strategy for both Hua Yang and Magna Prima will be distinct and complementary, whereby Hua Yang will continue to focus on the development of affordable homes in various key regions, and Magna Prima would primarily focus on urban Klang Valley development projects. Together with being able to enjoy synergistic cost benefits from pooling of common resources, we are confident this strategic investment in Magna Prima would serve to further enhance the value of Hua Yang shareholders in the longer term. On behalf of my Board of directors, we extend our gratitude to our management and staff for their exemplary commitment and dedication to the Company as we continue to strengthen our foundation for growth. Our sincere thanks also to all our stakeholders for their ardour support over the years. And my most humble appreciation of my fellow Board members for their unfaltering guidance and leadership as we continue to propel Hua Yang forward on a sustainable course for growth. The Polo Park, Johor 28

13 Management Discussion and Analysis Report Dear Shareholders, The intention of this management discussion and analysis report is to provide you with a more comprehensive review of Hua Yang s financial and operational performance, and to outline the Group s outlook and prospects in the current year. Ho Wen Yan Chief Executive Officer HUA YANG BERHAD ANNUAL REPORT 2017

14 Taman Pulau Hijauan, Johor When Dreams Take Flight epitomises our long-standing commitment to realise the dreams of our buyers in owning an affordable home. This remains the driving force behind Hua Yang and our team of dedicated staff. With the maiden launch of MERITUS RESIDENSI on Mainland Penang, Hua Yang has now extended its development presence in Malaysia spanning the Klang Valley, Perak, Johor, Negeri Sembilan and Mainland Penang. Financial Performance The Group s financial performance in 2017 reflected our prudent development strategy amidst adverse market conditions that have served to dampen buyers confidence. In the financial year ended 31 March 2017 ( FY17 ), Hua Yang achieved revenue of RM385.4 million, compared to RM575.7 million reported in the previous financial year ( FY16 ). Consequently, Hua Yang delivered a profit before tax of RM80.6 million and a net profit of RM60.9 million in FY17. The financial results were within our expectations, partly attributed to the completion of our high-rise residential developments, which contributed substantially to our previous years revenues. These projects include METIA RESIDENCE in Shah Alam, RESIDENSI FLORA@ONE SOUTH in Seri Kembangan and SENTRIO SUITES in Desa Pandan, which accounted for a total Gross Development Value ( GDV ) of RM495 million. Revenue contribution from our FY17 project launches was not significant as majority of the new projects were launched towards the end of the financial year. In FY17, projects within the Klang Valley remain the largest revenue contributor, accounting for 42% of the Group s revenue. This was mainly underpinned by construction progress at our highly successful ONE SOUTH, which is towards the final phases of development, as well as SENTRIO SUITES, which was completed and progressively handed over to our buyers in February Projects from Johor and Perak accounted for 33% and 21% of Group revenue respectively, drawing from steady contributions from our affordable integrated township developments in TAMAN PULAI HIJAUAN in Johor and BANDAR UNIVERSITI SERI ISKANDAR in Perak. During the year under review, we have successfully completed 1,771 units of properties with a total GDV of RM846 million. 30

15 Management Discussion and Analysis Report (CONT D) Chart 1 FY17 Revenue Contribution by Region 21% Perak 1% Penang 42% Klang Valley 33% Johor 3% N.Sembilan Chart 2 Completed Projects in FY17 (Working table for reference) Region Unit GDV (RM m) GDV (%) Klang Valley % Johor % Perak % Negeri Sembilan % Total 1, % Completed 1,771 units of properties with total GDV of RM846 million Negeri Sembilan, 3%, 58 units, RM28 million Perak, 17%, 518 units, RM141 million Klang Valley, 59%, 870 units, RM495 million Johor, 21%, 325 units, RM182 million HUA YANG BERHAD ANNUAL REPORT 2017

16 The Management has made conscientious efforts to maintain a healthy balance sheet, conserving cash for landbanking opportunities. As at end-fy17, cash and cash equivalent stood at RM44.6 million. Net gearing inched slightly higher to 0.39 times of shareholder funds from 0.34 times as at end-fy16. This was partly due to higher working capital requirements arising from new project launches in the year, as well as our strategic entry into Magna Prima Berhad ( Magna Prima ). We acquired an approximate 10.84% equity interest in Magna Prima for RM66.6 million in January The Group s net assets attributable to shareholders stood at RM595.4 million, an improvement from RM541.6 million as at end-fy16. On a per share basis, net assets attributable to shareholders declined to RM1.69 from RM2.05 in the same period, owing to a larger share base as at end-fy17 adjusted from the 1-for-3 bonus issue in October Dividends Hua Yang s Board of Directors has recommended a payment of a final single-tier dividend of 2 sen per share. Together with the interim single-tier dividend of 2 sen per share paid on 17 April 2017, this would make a total dividend payment of 4 sen per share for FY17. The proposed final single-tier dividend is subject to shareholders approval at the upcoming Thirty-Eighth Annual General Meeting. Property Development In FY17, Hua Yang chalked up new sales of RM239 million, driven by steady contributions from its ongoing township projects across Johor and Perak, as well as from the affordable high-rise residential projects such as CITYWOODS in Johor, ASTETICA RESIDENCES in Seri Kembangan, Selangor and MERITUS RESIDENSI on Mainland Penang, the latter two which made their respective debut in FY17. During the year, Hua Yang launched new property projects with an estimated total GDV of RM733 million, including ASTETICA RESIDENCES and MERITUS RESIDENSI. Launches in FY17 are likely to contribute more significantly to Hua Yang s 2018 financial year ( FY18 ) sales performance as they were largely launched in the fourth quarter of the financial year. Chart 3 FY17 Sales Contribution by Region Perak, 26%, RM63 million Penang, 22%, RM52 million Klang Valley, 13%, RM32 million Johor, 36%, RM85 million N.Sembilan, 3%, RM7 million 32

17 Management Discussion and Analysis Report (CONT D) MERITUS RESIDENSI is Hua Yang s maiden project launch in Mainland Penang, comprising serviced apartments and retail units with a total project GDV of RM324 million. In February 2017, we introduced into the market the first phase of 480 serviced apartments and 15 retail units with an estimated GDV of RM224 million. This was warmly received as reflected in the 23% sales achieved within the first month of launch. ASTETICA RESIDENCES, our latest high-rise residential development in the Klang Valley was officially launched in March The development has an estimated GDV of RM375 million, and comprises two residential towers of serviced apartments and studios, together with retail units. The project offers strong prospects, being strategically located in Seri Kembangan with proximity to the Mines Shopping Mall and other ready amenities such as colleges and medical centres. Other launches in FY17 include mainly affordable landed properties in our maturing townships in Johor, as well as in BANDAR UNIVERSITI SERI ISKANDAR, our well established and thriving integrated university township in Perak, where we rolled out new phases of single and double storey affordable homes, namely ERICA and FREESIA, with a combined GDV of RM105 million. Chart 4 FY17 Launches by Region Johor, RM28 million, 4% Perak, RM106 million, 14% Klang Valley, RM375 million, 51% Penang, RM224 million, 31% HUA YANG BERHAD ANNUAL REPORT 2017

18 Chart 5 FY17 Launches by Property Type (Working table for reference) Component GDV (RM m) GDV (%) Serviced Apartment % Landed Residential % Retail 45 6% Total % Retail, RM45 million, 6% Landed Residential, RM134 million, 18% Serviced Apartment, RM554 million, 76% Unbilled sales stood at RM214 million as at end-march This is expected to be replenished by improving new sales in FY18 that would be driven by both the recent launches in late-fy17 as well as our planned new development projects in the current financial year. Landbanking Seeking out new landbank in our pursuit of developing affordable homes is a constant focus for Hua Yang. We have achieved past success in identifying good land parcels, primarily within matured or established areas that come with ready amenities that are well suited for affordable homes. We are confident that we can continue to expand our landbank and sustain our development strategy in the affordable market segment. On 5 May 2017, Hua Yang announced the acquisition of 3.8-acre freehold land at Persiaran Meru Raya in Perak for a total consideration of RM15.3 million. Located in the established area of Bandar Baru Meru Raya, this parcel of land is slated for development of residential serviced apartments with an estimated GDV of RM295 million. With this recent acquisition, the Group has amassed a total of 475 acres of available landbank across five key regions for future development with an estimated GDV of RM4.5 billion. Projects within the Klang Valley would account for nearly half of the Group s future GDV, whilst 30% would be in Perak and 13% in Penang. 34

19 Management Discussion and Analysis Report (CONT D) Chart 6 Future GDV by Region Perak, RM1,358 million, 30% Johor, RM452 million, 10% N. Sembilan, RM86 million, 2% Penang, RM579 million, 13% Klang Valley, RM2,021 million, 45% Chart 7 Future Undeveloped Landbank by Region Penang, 17 acres, 3% N.Sembilan, 18 acres, 4% Johor, 126 acres, 27% Perak, 285 acres, 60% Klang Valley, 29 acres, 6% Strategic Acquisition in Magna Prima Berhad In FY17, we capitalised on the opportunity to acquire a strategic stake in Magna Prima, a property developer listed on the Main Market of Bursa Malaysia. Magna Prima owns approximately 35 acres of prime land, predominantly located within the Klang Valley. This strategic investment would enable Hua Yang to ride on the upside potential of Magna Prima s land, as well as to pursue collaboration for growth on a win-win basis for both companies. Hua Yang made an initial acquisition of approximately 10.84% equity interest in Magna Prima for a total consideration of RM66.6 million in January Subsequently in June 2017, Hua Yang s shareholders approved the acquisition of another approximately 20.12% stake in Magna Prima for a total consideration of RM123.8 million. With the completion of this second tranche, Hua Yang has emerged as the single largest shareholder with an approximately 30.95% equity interest in Magna Prima. HUA YANG BERHAD ANNUAL REPORT 2017

20 This is indeed a meaningful investment for Hua Yang, offering much potential to further enhance shareholders value. Our entry into Magna Prima also entails proper representation on the Magna Prima Board, with Mr. Ho Wen Yan appointed as the company s Executive Director in February Longer term prospects would be augmented with more immediate possibilities to pool common resources in areas such as human resource, book keeping, sales and administrative support to enable greater cost savings and efficiencies between the two property developers. The development approach for both companies remains distinct. We will not waver from our focus in the affordable market segment, whilst Magna Prima would continue to focus on its urban Klang Valley developments, thus complementing each other in sustaining longer term growth. Property Development Projects Hua Yang has grown its development activities to encompass nine ongoing development projects across five key regions within Malaysia, with a healthy mix of high-rise residential projects and affordable townships. The Group endeavours to build on its solid branding as a developer of innovative and quality affordable homes. The following highlights several of Hua Yang s key development projects. KLANG VALLEY ONE SOUTH, Seri Kembangan The highly successful ONE SOUTH is Hua Yang s flagship integrated development in Seri Kembangan, comprising multiple phases including serviced apartments, SoHo units, retail shops and office suites. The RM1 billion project is strategically located along the KL-Seremban Highway and adjacent to the Besraya Highway where it enjoys a ready population catchment as well as high traffic visibility. In the near future, ONE SOUTH is expected to be connected via a link bridge across from the proposed MRT 2 Serdang Raya Station. Launched in 2010, the first five phases at ONE SOUTH have been successfully handed over to buyers. RESIDENSI FLORA of phase 5 was awarded a QLASSIC Excellent Award by CIDB for its quality of workmanship with a scoring of 73%. Our ongoing final phase, comprising CUBE Soho units and ZETA RESIDENCE serviced apartments, are on track for completion and delivery in the third quarter of 2017 and second quarter of 2018 respectively. Total estimated GDV: RM999 million Land size: 16.7 acres Status: Ongoing Sales of final phase: 74% (as at 31 March 2017) One Seri Kembangan, Klang Valley 36

21 Management Discussion and Analysis Report (CONT D) Metia Shah Alam, Klang Valley METIA RESIDENCE, Shah Alam METIA RESIDENCE is a high-rise residential development strategically located in Section 13, Shah Alam. It has excellent accessibility via the Federal Highway, Guthrie Corridor, the New Klang Valley Expressway, and the North-South Expressway Central Link. The two-block serviced apartments are within proximity to popular shopping hotspots such as Giant and Tesco hypermarkets, SACC Mall, Plaza Alam Sentral and the AEON Store. The project is surrounded by established townships such Glenmarie, Ara Damansara, Petaling Jaya, Subang Jaya, Bandar Sunway and Klang. The serviced apartments are exclusively designed where the individual apartment entrances do not face one another, and where each unit is a corner unit with maximum privacy and natural sunlight. The project, which was awarded a QLASSIC Excellent Award by CIDB for its quality of workmanship with a scoring of 73%, was successfully completed ahead of schedule in September Total estimated GDV: RM160 million Land size: 3.7 acres Status: Completed Sales of Residential Units: Fully-sold (as at 31 March 2017) SENTRIO SUITES, Desa Pandan SENTRIO SUITES is amongst Hua Yang s successful high-rise residential developments. Located within the bustling area of Desa Pandan, Kuala Lumpur, the 40-storey high serviced apartments is the tallest building in the area overlooking the Kuala Lumpur City Centre skyline. It features a selection of six design options with two and three bedrooms layout, as well as studio type units. Each unit is strategically positioned as a corner unit, offering an unobstructed view of the surroundings complemented by excellent ventilation and natural lighting. The project, which was awarded a QLASSIC Excellent Award by CIDB for its quality of workmanship with a scoring of 75%, was completed ahead of schedule and progressively handed over to our buyers in February Total estimated GDV: RM231 million Land size: 1.6 acres Status: Completed Sales: Fully-sold (as at 31 March 2017) HUA YANG BERHAD ANNUAL REPORT 2017 Sentrio Desa Pandan, Klang Valley

22 ASTETICA RESIDENCES, Seri Kembangan Launched in March 2017, ASTETICA RESIDENCES is our latest mixed residential development within the Klang Valley. The project, which houses 568 serviced apartments in two tower blocks, has an estimated total GDV of RM375 million. The design of the serviced apartments are meant to be exclusive semi-ds and bungalows in the sky, with low density of ten units per floor served by four lifts and each unit being a corner unit. One unique feature is the inclusion of comprehensive family-oriented facilities covering approximately 16,000 sq ft (square feet) that is linked with a sky bridge on the 26th floor (double volume) of the tower blocks. Strategically located at the epicentre of Seri Kembangan, ASTETICA RESIDENCES is fronting the Mines 2 Shopping Mall, with direct access to the SILK and Besraya Highways and well-connected to other major routes. It is within proximity to The Mines Shopping Centre, AEON Cheras Selatan, Columbia Asia Medical Centre, Australia International School, Bukil Jalil Stadium, Palace of The Golden Horses and many other well-established amenities. Total estimated GDV: RM375 million Land size: 3.7 acres Status: Ongoing Sales: 3% (as at 31 March 2017) Astetica Seri Kembangan, Klang Valley 38

23 Management Discussion and Analysis Report (CONT D) Taman Pulai Hijauan, Johor JOHOR TAMAN PULAI HIJAUAN, Johor Bahru TAMAN PULAI HIJAUAN is our established and fast maturing affordable township in Johor. The acre township development is strategically located along Jalan Pontian that enjoys the advantages of Skudai- Pontian corridor, Johor Bahru s bustling residential hub. The township has easy access to the Second-link Expressway, JB-Parkway Highway, North-South Highway, JB/Pontian Highway, and the Skudai Highway. Amenities around the development include a golf resort, supermarkets, schools, university, shops and commercial centres. TAMAN PULAI HIJAUAN has grown into a thriving township, with strong emphasis on quality and modern living etched into a green and natural environment. It has enjoyed steady sales since its first launch of terrace houses back in The project was awarded a QLASSIC Excellent Award by CIDB for its quality of workmanship with a scoring of (76%) for EMILIA of phase five and (75%) for DOCYNIA of phase four. Completed phases are almost all sold, whilst recent new phases of double-storey cluster homes, together with a state government affordable home scheme, have a total estimated GDV of RM62 million. Total estimated GDV: RM458 million Land size: acres Status: Ongoing Sales of ongoing phases: 74% (as at 31 March 2017) HUA YANG BERHAD ANNUAL REPORT 2017

24 Jalan Abdul Samad, Johor CITYWOODS, Johor Bahru CITYWOODS comprises two blocks of freehold serviced apartments, and is the latest residential landmark within the Johor Bahru city centre. Located along Jalan Abdul Samad, and strategically sited across from the 5-Star Thistle Hotel, Hua Yang s first serviced apartment project in Johor offers an inspiring view of the Johor Strait and Singapore city skyline. The apartments come in various stellar designs and layouts, and include a state-of-the-art security system and a six level private car park with easy access to lift areas. CITYWOODS is well-connected to major highways such as the Eastern Disposal Link and the coastal highway, and surrounded by a wealth of convenient amenities. The project s prime location places it within 5 minutes to the Johor Bahru city centre, CIQ and Singapore, as well as 10 minutes to the North-South highway and 25 minutes to the Johor Senai International Airport. Construction progress is on schedule and both tower blocks are expected to be completed by the third quarter of Total estimated GDV: RM217 million Land size: 2.4 acres Status: Ongoing Sales: 51% (as at 31 March 2017) PERAK BANDAR UNIVERSITI SERI ISKANDAR, Ipoh BANDAR UNIVERSITI SERI ISKANDAR is Hua Yang s integrated university township development in Perak, with a total estimated GDV of RM1.4 billion. This 777-acre township contains quality residential homes fronting lakes and natural landscapes, a host of leisure and entertainment facilities, in-town educational institutes of higher learning, renowned universities and medical centre. The university township is located strategically in-between the state capital and southern part of Perak, approximately 35km to the southwest of Ipoh City. The township is well connected with direct access from the Ipoh-Lumut highway. The development is nestled amongst a variety of amenities including hypermarkets, restaurants, schools, banks and bus station terminals. With previous phases launched fully sold, Hua Yang continues to roll out new phases of landed residential in the township to meet with market demand. The project was awarded a QLASSIC Excellent Award by CIDB for its quality of workmanship with a scoring of (74%) for LAVENDER 2B and (72%) for CERIA of phase two. In January 2017, two new phases of single and double storey homes, namely ERICA and FREESIA were launched targeted at families looking for affordable, quality and modern concept living. Both phases are expected to be completed in 2018/2019. Estimated GDV: RM1,444 million Land size: 777 acres Status: Ongoing Sales of ongoing phases: 43% (as of 31 March 2017) Lavender Bandar Universiti Seri Iskandar, Perak 40