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GARNERED

24
AWARDS AND
ACCOLADES

17

REVENUE

BUILT MORE THAN


ONGOING
PROJECTS
IN HAND

30,000

HOMES
LAND BANK
MORE THAN

RM680.3 2,800
(MILLION)
ACRES

ACHIEVED

60%
higher sales
in year 2015

DIVIDEND OF

9.5 SEN*
per ordinary share

APPROXIMATE

400

Employees
in Malaysia
* 6 sen Tax Exempt Special Dividend had been paid on 26 January 2016
* 3.5 sen Single Tier First and Final Dividend to be approved by shareholders at the Sixteenth Annual General Meeting

Our Vision
To be an internationally recognised developer, building and
inspiring delightful spaces that enhance community living.

Our Mission
To consistently deliver exceptional performance through
progressive creations, realising value to all stakeholders and
enriching communities at large.

BUILDING STRENGTH
DEFINING DISTINCTION
Reflecting a consistency in flow from the previous year, the theme of Building Strength Defining
Distinction is inspired by LBS continued drive towards building its competitive capability and its
continuous desire to always build a better, more robust future for all stakeholders; a future of
promise, potential and vision. In doing so, LBS sets itself apart for charting its own unique path of
accomplishments and achievements, for measuring success on its own terms that stays true to
its vision, mission and business philosophy that as we progress, we continue to deliver meaning,
opportunities and possibilities for all who desire a better future.

Image Disclaimer: All images used are for illustrative purpose only.

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LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

003

In LBS, we strive to deliver inspirational


space where people call it HOME.
In LBS, we dont just build house, we shape
living habitats of the future.
LBS has homes for every stage of your life which allow you to live your
dreams- whether it is your first home, upgrade to a spacious living
space, investment home, holiday home or a place for your business.
LBS creates inspiring and delightful spaces. More importantly LBS is
people-focused and understands your priorities and needs to achieve
your dream home and lifestyle.
Through progressive creations, we want to ensure LBS homes,
townships and premises gives you the platform to experience a quality
and balanced lifestyle suitable to meet your needs in todays fast-paced
world of technology, from affordability to design, sustainability to
aesthetics.
We are improving our processes to ensure an effortless journey from
sales enquiry to ownership. Weve refined our processes to ensure our
products deliver environment that meets the needs of every generation
and community and ensure business are handled attentively with all
LBS customers in terms of property design, township planning and
development, customer service.

Content
06
18

Corporate
Review
The LBS Brand 006
Awards and Accolades 008
Corporate Structure 010
Corporate Information 012

Board of
Directors
Board of Directors
Directors Profile

018
020

26
58

Financial &
Operations Review
Group Financial Highlights
Chairmans Statement
Review of Operations
Project Portfolio

026
030
036
046

Corporate Social
Review
Corporate Social Responsibility 058
Corporate Calendar
068

78
113

Corporate
Accountability
Statement on
Corporate Governance
078
Audit Committee Report
105
Statement on Risk Management
and Internal Control
109
Recurrent Related Party
Transactions
111

Financials
Financial Statements

113

257
270

Other Information
List of Major Properties
Analysis of Shareholdings
Analysis of Warrant A Holdings
Analysis of Warrant B Holdings

257
258
262
266

AGM Information
Notice of Sixteenth
Annual General Meeting
Form of Proxy

Telok Gong

270

Midhills at Genting

The LBS
BRAND
The interweaving design represents the
enduring bonds between the founder
Dato Seri Lim Bock Seng and his four
sons, who, together, expanded LBS into
a leading property group, infused with
their core values of unity and trust.
The interwoven pattern is then further
expanded into an infinite monagram
design, symbolising LBS mission in
delivering exceptional performance
through progressive creations.

Over the years, LBS has succeeded in establishing


a solid foundation in crafting high-quality built
environments. This is what we believe in. Our
ongoing commitment to improving overall
community wellbeing has enabled us to come
far and become who we are. We are driven by
our promise to create sustainable living, working
and recreational environments that will provide a
better future for everyone, a future that is worth
beholding.

008
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

AWARDS
and
ACCOLADES

2015
ASIA PACIFIC PROPERTY AWARDS
5 Stars Best Architecture
Single Residence, Malaysia :
Barrington Homes

ASIA PACIFIC PROPERTY AWARDS


5 Stars Best Development
Marketing, Malaysia :
BSP Township

ASIA PACIFIC PROPERTY AWARDS


Highly Commended
Apartment Malaysia :
BSP21

THE BRANDLAUREATE BRAND


ICON LEADERSHIP AWARDS 2015
Hall of Fame Lifetime Achievement
Brand ICON Award 2015

WORLD CHINESE ECONOMIC


SUMMIT (WCES) LIFETIME
ACHIEVEMENT AWARD
For enhancing bilateral relations
between Malaysia and China
(Guangdong Province)

ARC AWARDS
INTERNATIONAL XXIX
2015 Grand Winner Best of
International (Asia/Pacific)
- Annual Report 2014

009

2014

2013

IAIR AWARDS

ASIA PACIFIC
PROPERTY AWARDS

MARKETING EXCELLENCE
AWARD 2013

5 Stars Best Interior Design


Show Home Malaysia :
Balvia @ D Island Residence

Bronze winner of Excellence


In Product/Packaging Design:
Cameron Golden Hills
The Way Life Should Be

Best Company for Leadership


Property Development
Malaysia

ASIA PACIFIC
PROPERTY AWARDS
Best Residential Development,
Asia Pacific :
SkyVilla @ D Island Residence

ASIA PACIFIC
PROPERTY AWARDS
Highly Commended :
Development Multiple Units
Malaysia :
Apicalia @ D Island Residence

ASIA PACIFIC
PROPERTY AWARDS
5 Stars Best Residential
Development, Malaysia :
SkyVilla @ D Island Residence

ASIA PACIFIC
PROPERTY AWARDS
Highly Commended Interior
Design Show Home, Malaysia :
Nautilus @ D Island Residence

ASIA PACIFIC
PROPERTY AWARDS
Highly Commended :
Development Marketing
Malaysia :
D Island Residence

MARKETING EXCELLENCE
AWARD 2013
Bronze winner of Excellence
In Public Relations : Internal/
Employee Communications

2012
ASIA PACIFIC
ENTREPRENEUR AWARD
(APEA)
Entrepreneur of
The Year 2012 :
Dato Sri Lim Hock San

MARKETING EXCELLENCE
AWARD 2013
Finalist of Excellence In CRM
and Loyalty Marketing

PROPERTY PRESS
AWARDS 2013
(MALAYSIAN RESERVE)
Best Urban Scenic
Development
(D Island Residence)

2011
SME RECOGNITION
AWARD 2011
Platinum Entrepreneur Award :
Dato Sri Lim Hock San

BCI ASIA
Top 10 Developers
2011 Award

010
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

Corporate
Structure
100%

100%

as at 31 MARCH 2016

100%

Linkway Property
Co., Ltd (BVI)

100%

100% Adil Restu Sdn Bhd

100% MITC Sdn Bhd

100% Angsana Abadi Sdn Bhd

100% Astana Modal (M) Sdn Bhd

100% Prisma Craft Sdn Bhd

100% Azam Perspektif Sdn Bhd

100% Prisma Kasturi Sdn Bhd

100% Cergas Asal (M) Sdn Bhd

100% Restu Bidara Sdn Bhd

100% Equal Alliance Sdn Bhd

100% Top Ace Solutions


Sdn Bhd

Dragon Hill Corporation


Limited (HK)

100%
Lamdeal Investments
Limited (HK)

LBS Bina Holdings


Sdn Bhd

100%

Intellplace Holdings
Limited (BVI)

100% Equal Sign Sdn Bhd


100% Focal Remedy Sdn Bhd
100% Fokus Awana Sdn Bhd

60%
Zhuhai International
Circuit Limited (PRC)

100%
Zhuhai International
Circuit Promotion (HK)
Limited (HK)

100% Galeri Cekap Sdn Bhd


100% Generasi Nostalgia Sdn Bhd
100% Getstyle Sdn Bhd

LBS Landscape Sdn Bhd

75% MITC Engineering Sdn Bhd

60% Nuevo Attraction &


Destination Sdn Bhd
100% Nuevoprima
Development
Sdn Bhd
30% YLT Consultancy Sdn Bhd
(formerly known as Esquire

100% Inderaloka Impian Sdn Bhd

Outlet Sdn Bhd)

100% Intellview Sdn Bhd

100% Pelangi Homes Sdn Bhd

100% Jatidiri Gigih Sdn Bhd

100% Jauhari Unggul Sdn Bhd

100% Saga Megah Sdn Bhd

100% Kalimah Jaya Sdn Bhd

100% Seribu Baiduri Sdn Bhd

100% Utuh Sejagat Sdn Bhd

50% Biz Bena Development Sdn Bhd

100% Sinaran Restu Sdn Bhd

100% Kilatlima Sdn Bhd

100% Juaraplex Sdn Bhd

100% LBS Capital Sdn Bhd

100% Kenderong Sdn Bhd

100% LBS Properties Sdn Bhd

100% Keranji Bina Sdn Bhd

100% Maju Kamabisa Sdn Bhd

100% Lingkaran Semangat Sdn Bhd

100% Misi Aktif Sdn Bhd

100% Pacific Grant Sdn Bhd

100% Silibin Jaya Sdn Bhd

55% Nilam Mewah Sdn Bhd

011

100%

Maju Kepunyaan Sdn Bhd

31.95%

ML Global Berhad

100% Utuh Aspirasi Sdn Bhd


90% Sepadan Maju Sdn Bhd
85% Johan Anggun Sdn Bhd

60%

SPJ Construction Sdn Bhd

100%

Saga Serata Sdn Bhd

60%
Healthguard Medicare
Sdn Bhd

80% Iringan Kejora Sdn Bhd


80% Pembangunan Primer Sdn Bhd
80% Prima Utuh Sdn Bhd
75% Koleksi Sigma Sdn Bhd
71% Generasi Simbolik Sdn Bhd
70% Alunan Prestasi Sdn Bhd
70% LBS Maju Sdn Bhd
66% Puncak Gama Sdn Bhd
61% Dataran Enigma Sdn Bhd
58% Casa Inspirasi Sdn Bhd
55% Megah Solaris Sdn Bhd
51% Mayang Jelatek Sdn Bhd
51% Taman Sempurna Sdn Bhd
51% Wirama Era Baru Sdn Bhd
40% Bayu Cergas Sdn Bhd
35% Usaha Semarak Sdn Bhd
30% Bimbingan Sumber Sdn Bhd
30% Pristine Sunrise (M) Sdn Bhd
30% Sambungan Aktif Sdn Bhd
30% Setara Armada Sdn Bhd
30% Warnasari Idaman Sdn Bhd
20% Tarikan Puncak Sdn Bhd

BVI : The British Virgin Islands


HK : Hong Kong
PRC : The Peoples Republic of China

012
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

Corporate
Information
As at 31 March 2016

BOARD OF DIRECTORS

AUDIT COMMITTEE

Dato Seri Lim Bock Seng


SSSA, DPMS, AMN
(Chairman)

Dato Lim Mooi Pang


DIMP
(Executive Director)

Lim Tong Lee (Chairman)

Tan Sri Lim Hock San


PSM, SSAP, DSSA, JP
(Managing Director)

Datuk Haji Baharum Bin


Haji Mohamed
DMSM, AMN, PIS
(Senior Independent Non-Executive
Director)

Datuk Lim Si Cheng

Datuk Lim Si Cheng


PJN, PIS
(Independent Non-Executive
Director)

Lim Tong Lee (Chairman)

Datuk Wira Lim Hock Guan


DCSM, DMSM, PJK, JP
(Executive Director)
Maj (Hon) Dato Sri Lim Hock Sing
SSAP, DIMP, JP
(Executive Director)
Datuk Lim Hock Seong
DMSM
(Executive Director)
Dato Chia Lok Yuen
DIMP
(Executive Director)

Lim Tong Lee


(Independent Non-Executive
Director)

Datuk Haji Baharum Bin Haji


Mohamed

NOMINATION AND
REMUNERATION COMMITTEE
Datuk Haji Baharum Bin Haji
Mohamed
Datuk Lim Si Cheng

ESOS COMMITTEE
Lim Tong Lee (Chairman)
Datuk Haji Baharum Bin Haji
Mohamed
Datuk Lim Si Cheng
Datuk Wira Lim Hock Guan
Dato Chia Lok Yuen

013

Midhills

RISK MANAGEMENT
COMMITTEE

REGISTERED OFFICE

Dato Lim Mooi Pang

Plaza Seri Setia Level 1-4


No. 1 Jalan SS9/2
47300 Petaling Jaya
Selangor Darul Ehsan
Malaysia
T + 603 7877 7333

Chang Yee Khim

F + 603 7877 7111

Tan Sri Lim Hock San (Chairman)


Datuk Wira Lim Hock Guan
Dato Chia Lok Yuen

Wong Kah Yeen


Yeoh Keong Hoong

BUSINESS ADDRESSES

COMPANY SECRETARY

HEAD OFFICE

Lee Ching Ching

Plaza Seri Setia Level 1-4


No. 1 Jalan SS9/2
47300 Petaling Jaya
Selangor Darul Ehsan
Malaysia
T + 603 7877 7333
F + 603 7877 7111

MITC SDN BHD


No. 321 & 322 Plaza Seri Setia
No. 1 Jalan SS9/2
47300 Petaling Jaya
Selangor Darul Ehsan
Malaysia
T + 603 7877 7333
F + 603 7861 8077
MITC ENGINEERING SDN BHD
H-6 Sunway PJ@51A
Jalan SS9A/19 Section 51A
47300 Petaling Jaya
Selangor Darul Ehsan
Malaysia
T + 603 7874 5888
F + 603 7874 5889

014
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

Corporate
Information

NORTHERN REGION
IPOH
No. 17 Medan Ipoh 1A
Medan Ipoh Bistari
31400 Ipoh
Perak Darul Ridzuan
Malaysia
T + 605 255 8820
F + 605 254 4225
CAMERON HIGHLANDS
B3-31-G Brinchang Square
Jalan Besar Brinchang
39100 Cameron Highlands
Pahang Darul Makmur
Malaysia
T + 605 491 5018
F + 605 491 5020
SOUTHERN REGION
BATU PAHAT
No. 22 Jalan Kundang
Taman Bukit Pasir
83000 Batu Pahat
Johor Darul Takzim
Malaysia
T + 607 438 8688
F + 607 438 8233

REGISTRAR
Tricor Investor & Issuing House
Services Sdn Bhd (11324-H)
Unit 32-01, Level 32 Tower A
Vertical Business Suite Avenue 3
Bangsar South
No.8 Jalan Kerinchi
59200 Kuala Lumpur
Malaysia
T + 603 2783 9299
F + 603 2783 9222

SALES OFFICES & GALLERIES


D ISLAND RESIDENCE
No. 3 Jalan Timur 9
D Island Residence
47130 Puchong
Selangor Darul Ehsan
Malaysia
Hotline: 1700 81 8998

BANDAR SAUJANA PUTRA


No. 2 & 6 Jalan SPU 1
Bandar Saujana Putra
42610 Jenjarom
Kuala Langat
Selangor Darul Ehsan
Malaysia
Hotline: 1700 81 8998
BRINCHANG SQUARE
B3-31-G Brinchang Square
Jalan Besar Brinchang
39100 Cameron Highlands
Pahang Darul Makmur
Malaysia
T + 605 491 5018
F + 605 491 5020
KUANTAN
B-16, Jalan Gambut 1
25000 Kuantan
Pahang Darul Makmur
Malaysia
T + 609 513 8500
F + 609 513 3043

015

Corporate
Information

SOLICITORS
Balendran Chong Advocates
& Solicitors
Cheah Poh Gek & Associates
Gan & Zul
Henry Lim & Co.
Lee, Ong & Partners
Manjit Singh Sachdev, Mohammad
Radzi & Partners
Ong & Partners
Rashid Asari & Co.
Steven Tai, Wong & Partners
Ting & Ting

AUDITOR
UHY

PRINCIPAL BANKERS /
FINANCIERS
Bank Kerjasama Rakyat Malaysia
Berhad
Bank of China (Malaysia) Berhad
CIMB Bank Berhad

Industrial and Commercial Bank


of China (Malaysia) Berhad
Kuwait Finance House (Malaysia)
Berhad
Malayan Banking Berhad
Malaysia Building Society Berhad
Public Bank Berhad
RHB Bank Berhad
The Bank of East Asia, Limited
United Overseas Bank (Malaysia)
Berhad
The Hong Kong and Shanghai
Banking Corporation Limited
(Hong Kong)
Industrial and Commercial Bank
of China Limited (Zhuhai)
Bank of China Limited (Zhuhai)

STOCK EXCHANGE LISTING


Main Market, Bursa Malaysia
Securities Berhad
since 30 January 2002
Stock Code : 5789
Stock Name : LBS
Sector
: Properties

WEBSITE
www.lbs.com.my

EMAIL
Customer Service:
cs@lbs.com.my

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Embracing a

new era
of growth

Embracing the future with optimism and confidence, we set forth


towards a new horizon, ushering brighter prospects and reshaping
the landscape for a better tomorrow.

018
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

01

02

BOARD
OF
DIRECTORS

019

03

04

05

06

07

08

09

10

1 DATO SERI LIM BOCK SENG


Chairman

6 DATO CHIA LOK YUEN


Executive Director

2 TAN SRI LIM HOCK SAN


Managing Director

7 DATO LIM MOOI PANG


Executive Director

3 DATUK WIRA LIM HOCK GUAN


Executive Director

8 DATUK HAJI BAHARUM BIN HAJI MOHAMED


Director

4 MAJ (HON) DATO SRI LIM HOCK SING


Executive Director

9 DATUK LIM SI CHENG


Director

5 DATUK LIM HOCK SEONG


Executive Director

10 LIM TONG LEE


Director

020
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

DIRECTORS
PROFILE
Dato Seri Lim Bock Seng

Chairman | Age 85 | Malaysian


(Non-Independent Non-Executive Director)
Dato Seri Lim is the founder of LBS
Bina Holdings Sdn Bhd (LBS), was
appointed as the Chairman of LBS
Bina Group Berhad (LBGB or Group
or Company) on 6 December
2001. He has more than 40 years of
experience in the construction and
property development sectors. He
was initially involved in the supply and
transportation of sand, aggregates,
earth and ball clay for construction
of infrastructure works such as
earthworks, sewerage works, roads
and drainage. Subsequently, he
ventured into construction of houses,
shops and factory buildings.

Dato Seri Lim is active in community


activities, particularly in the Seri Setia
area in Petaling Jaya, Selangor. He
sits on the boards and committees
of
several
non-profit-making
organisations. He is the Permanent
Honorary Chairman of Seri Setia Old
Folks Home, Honorary Adviser to
Khuan Loke Club, Seri Setia, Honorary
Adviser to General Traders Association,
Sungai Way Subang, Honorary
Chairman of the Old Boys Association
of SJK (C) Sungai Way, Honorary
Adviser for Youth Club Sungai
Way, Honorary Adviser of Selangor
and Kuala Lumpur Lim Clansmen
Association, Honorary Chairman of
the Management Board and Building
Committee of SJK (C) Sungai Way,
Honorary Chairman of Persatuan
Hokkien Sungai Way, Honorary
President of the Federation of Hokkien
Association, Malaysia, Permanent

Honorary Adviser to Loong Thien


Kong, Kajang, Permanent Honorary
Adviser to Persatuan Penganut Tho
Guan Sen, Permanent Honorary
Adviser to Wei Long Temple Happy
Garden Kuala Lumpur, Honorary
Chairman to Ulu Selangor Ann Kooi
Association, Honorary Adviser to
Federation of Association of Lim
Clansmen and Honorary Chairman
to Selangor & Kuala Lumpur Ann Kooi
Association. Dato Seri Lim also sits
on the Board of several subsidiary
companies of the Group.
He is the father of Tan Sri Lim Hock
San (Managing Director), Datuk Wira
Lim Hock Guan (Executive Director),
Maj (Hon) Dato Sri Lim Hock Sing
(Executive Director), Datuk Lim Hock
Seong (Executive Director) and Dato
Lim Mooi Pang (Executive Director).

021

DIRECTORS
PROFILE

Tan Sri Dato Sri Lim Hock San


Managing Director | Age 58 | Malaysian
(Non-Independent Executive Director)

Graduated with First Class Honours in


Civil Engineering from the University
of Wales, United Kingdom in 1982,
Tan Sri Lim returned to Malaysia upon
his fathers request to help out in the
family business of lorry transportation
and construction works. Two decades
later, the businesses have expanded
to include property development. On
6 December 2001, Tan Sri Lim was
appointed the Managing Director of LBS
Bina Group Berhad (LBGB).
With outstanding entrepreneurship and
years of management and technical
expertise, Tan Sri Lim soon became the
Key Leader and spearheaded LBGB and
its subsidiaries (Group) to become one
of the leading players in the property
development industry.
The following outstanding awards were
won by Tan Sri Lim :i. Second prize in the British Steel
Corporation Competition for Design
in Hollow Steel Section in 1982
ii. Recipient of the inaugural Platinum
Entrepreneur
Award
by
SMI
Association of Malaysia in 2011
iii. Prestigious Entrepreneur of the Year
2012 by Asia Pacific Entrepreneurship
Awards (APEA)
iv.
Malaysia
Best
Company
for
Leadership of Property Development
of the Year 2014 by International
Alternative Investment Review (IAIR)
Awards

v. Conferment of the World Chinese


Economic Summit (WCES) Lifetime
Achievement Award for continued
efforts in enhancing bilateral
relations between Malaysia and
China (Guangdong Province) in 2015
vi. Bestowed with The BrandLaureate
Hall of Fame Lifetime Achievement
Brand Icon Leadership Awards 2015
by Asia Pacific Brands Foundations
vii. Global Best Company for Leadership
of Property Development of the Year
2016 by International Alternative
Investment Review (IAIR) Awards
Being an active advocate of social and
community works, Tan Sri Lim sits on
the board of the following charitable
organizations :1. Chairman of the Board of Governors
of SMJK Katholik
2. Chairman of the Board of Governors
of SJK (C) Sungai Way
3. Chairman of the Board of Governors
of SJK (C) Tun Tan Siew Sin
4. President of The Federation of
Malaysia Lim Associations
5. President of Gabungan Persatuan
Cina Petaling Jaya, Selangor
6. President of Wushu Federation of
Federal Territory Kuala Lumpur
7. President of Malaysia-Guangdong
Chamber of Investment Promotion
8. President of Malaysia Chamber of
Commerce In China-Guangdong
9. Vice President of the Ann Khoe
Association, Selangor & Wilayah
Persekutuan

10. Vice President of Fujian Overseas


Exchanges Association Fifth Council
11.
Honorary Chairman of Rumah
Berhala Leng Eng Tian
12. Honorary President of Catholic High
School Alumni Association
13. Honorary President of Persatuan
Penganut Tho Guan Sen
14.
Committee of China Federation
Ninth Plenary Session
15. Committee of China Chamber of
International Commerce
16.
Committee of Fujian Provincial
Federation
17. Committee of Zhuhai Municipal
Peoples
Political
Consultative
Conference (Zhuhai CPPCC), China.
Besides holding directorships of several
subsidiary companies in the Group, Tan
Sri Lim also holds an important portfolio
as Chairman of Risk Management
Committee in LBGB. Currently, Tan
Sri Lim sits on the Board of ML Global
Berhad as a Non-Independent NonExecutive Director.
He is the eldest son of Dato Seri Lim
Bock Seng (Chairman) and brother of
Datuk Wira Lim Hock Guan (Executive
Director), Major (Hon) Dato Sri Lim
Hock Sing (Executive Director), Datuk
Lim Hock Seong (Executive Director)
and Dato Lim Mooi Pang (Executive
Director).

022
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

DIRECTORS
PROFILE
Datuk Wira Lim Hock Guan

Maj (Hon) Dato Sri Lim Hock Sing

Datuk Wira Lim Hock Guan was appointed as Executive


Director of LBGB on 6 December 2001. He holds a B.Sc. Civil
Engineering from the Tennessee Technology University,
USA. Datuk Wira Lim Hock Guan started his career as a Civil
Engineer upon his graduation.

Maj (Hon) Dato Sri Lim Hock Sing was appointed as


Executive Director of LBGB on 6 December 2001.
Obtaining his Bachelor of Accounting Degree from Eastern
Washington University in 1989, he started practicing as an
audit supervisor at Khoo & Co, a local public accounting
firm. LBS later absorbed him as a fulltime Director beginning
in 1991 and has been entrusted with LBS Groups interests
in the states of Pahang and Johor.

Executive Director | Age 54 | Malaysian


(Non-Independent Executive Director)

Datuk Wira Lim Hock Guan has more than 20 years of


extensive experience in the field of property development
and construction. He is in charge of the Groups projects
in Klang Valley and he is one of the major driving forces
behind the LBS Groups successful implementation of the
projects in the Klang Valley.
Datuk Wira Lim Hock Guan sits on the Board of several
subsidiary companies of the Group. He is a member of Risk
Management Committee and ESOS Committee in LBGB.
He also sits on the Board of Zhuhai Holdings Investment
Group Limited, a company listed on the Main Board of
Hong Kong Stock Exchange, as Non-Executive Director.
He is also active in community works and has involved
in several non-profit-making organisations. He is the
Chairman of Persatuan Hokkien Sungai Way, President of
Selangor Petaling Business & Industry Association, Vice
President of Malaysia-Guangdong Chamber of Investment
Promotion and the Vice President of The Malaysian
Chamber of Commerce in Guangdong, China. He is also
a qualified sharpshooter from National Riffle Association,
Washington D.C. Datuk Wira Lim Hock Guan also sits
on the Board of ML Global, a listed company as a NonIndependent Non-Executive Director and several subsidiary
companies of the Group.
He is the son of Dato Seri Lim Bock Seng (Chairman) and
brother of Tan Sri Lim Hock San (Managing Director), Maj
(Hon) Dato Sri Lim Hock Sing (Executive Director), Datuk
Lim Hock Seong (Executive Director) and Dato Lim Mooi
Pang (Executive Director).

Executive Director | Age 52 | Malaysian


(Non-Independent Executive Director)

Dato Sri Lim Hock Sing has devoted his professional career
into LBS. With his accountancy background and also
over 20 years of experience in property development, he
has contributed invaluable aptitude in matters of finance,
marketing and real estate evaluation. He also plays a handson approach sitting on the Board of subsidiaries of the
Group.
Apart from the corporate personality which he is known for,
Dato Sri Lim Hock Sing also blends well with the community.
His environmental concerns are reflected in his position as
one of the Trustees in Sultan Ahmad Shah Environment
Trust (SASET) since 2012. He is also a contributing member
of Persatuan Warga Cinta Negara Malaysia (PENCINTA),
and engaged in central roles for organizations like Young
Entrepreneurs Association of Malaysia (PUUM) and Sungai
Way Hokkien Association.
Due to the respectable corporate figure he portrays, he was
invited to join as a committee member of the MalaysiaKuwait Business Council, an organization formed under
the Malaysia External Trade Development Corporation
(MATRADE).
Dato Sri Lim Hock Sing was awarded the rank of Honorary
Major in the 505th Regiment of The Reserve Army of
Malaysia by K.D.Y.T.M. Tengku Mahkota Pahang, Tengku

023

DIRECTORS
PROFILE
Abdullah Al-Haj Ibni Sultan Haji Ahmad Shah Al-Mustain
Billah in 2012.
He is the third son of Dato Sri Lim Bock Seng (Chairman),
brother to Tan Sri Lim Hock San (Managing Director),
Datuk Wira Lim Hock Guan (Executive Director), Datuk Lim
Hock Seong (Executive Director) and Dato Lim Mooi Pang
(Executive Director).

Datuk Lim Hock Seong

Executive Director | Age 50 | Malaysian


(Non-Independent Executive Director)

Datuk Lim Hock Seong graduated from Kolej Damansara


Utama with a Diploma in Telecommunication and Computer
Engineering in 1990, and was appointed Executive Director
of LBGB on 6 December 2001. He is also the Executive
Director of LBS since 1992.

Dato Alan Chia Lok Yuen


Executive Director | Age 57 | Malaysian
(Non-Independent Executive Director)

Dato Alan Chia Lok Yuen was appointed as a Director of


LBGB on 6 December 2001 and was promoted to Executive
Director on 1 July 2005. He is an Associate member of the
Institute of Chartered Secretaries and Administrator, UK
(ACIS) and has obtained a Diploma in Banking And Finance
from the Institute of Bankers Malaysia. He is also a MBA
graduate from the prestigious Heriott-Watt University in
Edinburgh, United Kingdom.
Dato Alan was previously a banker by profession under the
employment of a well-known domestic bank for more than
16 years. He has gained vast experience and exposure in
local and international corporate business dealings.

As a Director in charge of property development projects in


Perak, he monitors the initialisation, planning, management
and overseeing day-to-day operations of the projects.

He joined LBS as Senior General Manager in 1996 in charge


of the overall management and business operations of the
Group. He has contributed significantly towards the growth
of the LBGB Group and its subsequent listing in the Bursa
Malaysia Securities Berhad.

He is a member of the Yayasan Ang Koai Selangor, the


Malaysian Chinese Association, the Persatuan Hokkien Seri
Setia as well as other charitable and non-profit-making
organisations. Datuk Lim Hock Seong is also actively
involved in community works. He also sits on the Board of
several subsidiary companies of the Group.

He is responsible for LBS Groups corporate functions


including IT, Treasury, Investor Relations, Legal, Credit &
Property Management and Secretarial & Corporate Affairs.

Upon playing an active role in the social development and


well-being of the community, Datuk Lim Hock Seong has
been conferred the Diraja Mulia Seri Melaka (D.M.S.M) by
His Royal Highness Yang di-Pertua Negeri Melaka in 2007.
He is the son of Dato Seri Lim Bock Seng (Chairman) and
brother of Tan Sri Lim Hock San (Managing Director), Datuk
Wira Lim Hock Guan (Executive Director), Maj (Hon) Dato
Sri Lim Hock Sing (Executive Director) and Dato Lim Mooi
Pang (Executive Director).

Dato Alan also sits on the Board of several subsidiary


companies of the Group. He is also a member of the Risk
Management Committee and ESOS Committee in LBGB.
He does not have any family relationship with any Director
and/or Major Shareholder of the Company.

024
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

DIRECTORS
PROFILE
Dato Lim Mooi Pang

Datuk Haji Baharum Bin Haji Mohamed

Dato Lim Mooi Pang was appointed as Executive Director


of LBGB on 16 July 2009. She graduated with an Honour
Degree in Management Studies from the University of
Waikato, New Zealand. She began her career with Messrs.
Ernst & Young New Zealand where she attained her
qualifications as a member of the New Zealand Institute
of Chartered Accountants. Her last position with Ernst &
Young was as Senior Audit Manager.

Datuk Haji Baharum bin Haji Mohamed was appointed as


Independent Non-Executive Director of LBGB on 20 August
2013 and designated as Senior Independent Non-Executive
Director on 19 April 2014. He is currently the Director of
FELCRA Berhad.

Executive Director | Age 49 | Malaysian


(Non-Independent Executive Director)

Before joining LBS Group in May 2004, she was the Director
of Finance and Administration with Speedline Technologies,
an American multi-national company based in Singapore.
Prior to her current position, Dato Lim Mooi Pang was the
Senior General Manager of the Overseas Operating Division
where she oversaw and managed LBS Groups investments
in Zhuhai, China. She continues to be a Vice-Chairman of
Zhuhai International Circuit Ltd.
She is currently responsible for LBS Groups corporate
functions in Accounts and Finance, Human Resource and
Administration, Purchasing and Rental, Sales and Marketing
Communication.
Dato Lim Mooi Pang also sits on the Board of several
subsidiary companies of the Group. She is a member of the
Risk Management Committee in LBGB.
Dato Lim Mooi Pang is the daughter of Dato Seri Lim Bock
Seng (Chairman), sister of Tan Sri Lim Hock San (Managing
Director), Datuk Wira Lim Hock Guan (Executive Director),
Maj (Hon) Dato Sri Lim Hock Sing (Executive Director) and
Datuk Lim Hock Seong (Executive Director).

Director | Age 59 | Malaysian


(Senior Independent Non-Executive Director)

Datuk Baharum graduated from the University of


Kebangsaan (UKM) with a Bachelor of Social Science
(Honours) in 1982. He also obtained Certificate in Business
Managament from The Asian Institute Management, Manila
in 1985. He obtained his master degree from European
University of Ireland (EUI) in 2003 and graduated with a
doctorate in PhD Specialisation Environmental at UUM
College of Law, Government and International Studies,
University Utara Malaysia in 2015.
After graduated in 1982, he started his career as Officer
with Majlis Amanah Rakyat (MARA) from 1982 to 1986 and
thereafter appointed as Deputy Director of MARA in the
states of Negeri Sembilan (1987 to 1989) and Sabah (1989
to 1992). He was a Special Officer to YB Chairman of MARA
from 1992 to 1995 prior to his appointment as Principal
Secretary to the Deputy Minister of the Prime Ministers
Department from 1995 to 1998. He was the former
Chairman of Lembaga Pelesenan Kenderaan Perdagangan
Semenanjung Malaysia from 2004 to 2006 and was also
appointed as Chairman of UDA Holding Berhad from year
2006 to 2008. Presently, he is the Executive Chairman of a
privately owned company involved in construction.
Datuk Baharum is a member of the Audit Committee,
Nomination and Remuneration Committee and ESOS
Committee in LBGB. He does not have any family
relationship with any Director and/or Major Shareholder of
the Company.

025

DIRECTORS
PROFILE
Datuk Lim Si Cheng

Lim Tong Lee

Director | Age 66 | Malaysian


(Independent NON-Executive Director)

Director | Age 48 | Malaysian


(Independent Non-Executive Director)

Datuk Lim Si Cheng was appointed as Independent NonExecutive Director of LBGB on 20 August 2013.

Lim Tong Lee was appointed as Independent NonExecutive Director of LBGB on 22 May 2013. He is currently
the Head of Corporate Finance of KGI Fraser Securities Pte
Ltd, Singapore (formerly known as AmFraser Securities Pte
Ltd). He also sits on the Board of ValueMax Group Ltd, a
company listed on the Main Board of Singapore Exchange,
as Independent Non-Executive Director.

Datuk Lim began his career as a journalist in 1968. From


1982 to 1990, he was a State Assemblyman of Bandar
Segamat and Exco Member of Johor State Government
from 1986 to 1990. He was appointed as Political Secretary
to the Minister of Transport, Malaysia from 1990 to 1995.
Following this, he was elected as Member of Parliament
Kulai, Johor for 3 consecutive terms from 1995 to 2008.
Datuk Lim then moved to House of Representative,
Parliament Malaysia and served as Deputy Speaker started
from 1999 until February 2008. He was a member of the
Malaysian Pepper Board from 2008 to 2011.
Datuk Lim holds directorship in various companies which
include Ralco Corporation Berhad and Koperasi Jayadiri
Malaysia Bhd. He is also very active in community works
of various charitable organisations. Presently, Datuk Lim is
the Deputy Chairman of MCA Disciplinary Board, member
of University Tunku Abdul Rahman Education Foundation,
Trustee in Huaren Education Foundation, Trustees in
Chang Ming Thien Foundation, board member of KOJADI
Education Services Sdn Bhd and committee member of
Malaysia Mental Literacy Movement.
Datuk Lim is a member of the Audit Committee, Nomination
and Remuneration Committee and ESOS Committee in
LBGB. He does not have any family relationship with any
Director and/or Major Shareholder of the Company.

He has more than 24 years working experience in private


equity, corporate finance and audit. Prior to joining KGI
Fraser Securities Pte Ltd, he was attached to Venstar Capital
Management Pte Ltd, Singapore, from 2014 to 2015 as
Senior Vice President, AmWater Investments Management
Pte Ltd in 2013 as Chief Investment Officer and AmFraser
Securities Pte Ltd, Singapore as Director/Head of Corporate
Finance from 2007 to 2012. He was with AmInvestment
Bank Berhad from 1995 to 1997 and 1999 to 2007 with last
position as Director of Corporate Finance.
He was attached to Ernst & Young, Kuala Lumpur office for 5
years prior to joining AmInvestment Bank in 1995. Between
1997 to 1999, he was employed as the General Manager,
Corporate Finance of a property development company.
He is a Fellow Member of Association of Chartered Certified
Accountants, United Kingdom, a member of Malaysian
Institute of Accountants and Malaysian Institute of Certified
Public Accountants.
He is Chairman of the Audit Committee, Nomination and
Remuneration Committee and ESOS Committee in LBGB.
He does not have any family relationship with any Director
and/or Major Shareholder of the Company.

All the directors of LBGB have no conflict of interest with the Company nor
any convictions of any offences within the past 10 years.

026
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

Group Financial
Highlights
RM680

RM108

548,396

668,265

680,296

62,777

65,056

430,171

104,129

108,088

34,300

37,160

392,663

69,930

76,074

million

531,820

million

449,565

million

RM76

11

12

13

14

15

11

12

13

14

15

11

12

13

14

15

REVENUE

PROFIT BEFORE TAXATION

(RM000)

(RM000)

PROFIT AFTER NONCONTROLLING INTERESTS


(RM000)

RM1,032

189.18

869,657

969,062

1,031,661

109.31

116.76

184.20

183.72

189.18

8.87

9.70

96.09

14.06

14.09

Sen

445,105

Sen

422,535

million

14.09

11

12

13

14

15

11

12

13

14

15

11

12

13

14

15

EQUITY ATTRIBUTABLE TO
OWNERS OF THE PARENT
(RM000)

NET ASSETS PER SHARE


(SEN)

BASIC EARNINGS PER SHARE


(SEN)

027

Group Financial
Highlights
FINANCIAL YEAR ENDED 31 DECEMBER
2011

2012

2013

2014

2015

Revenue 449,565 # 531,820 # 548,396 # 668,265 680,296


Profit Before Taxation

62,777 # 65,056 # 430,171 # 104,129 108,088

Profit After Non-controlling Interests

34,300 # 37,160 # 392,663 # 69,930 76,074

Paid-up Share Capital

386,553

386,553

479,651

538,298

551,437

Equity Attributable To Owners Of The Parent

422,535

445,105

869,657

969,062

1,031,661

Net Tangible Assets

299,296

339,607

773,242

879,657

945,183

8.87

9.70

96.09

14.06

14.09

Basic Earnings per share (sen)


Gross Dividend per share (sen)
Net Assets per share (sen)
Net Tangible Assets per share (sen)

9.50 *

2.50

2.50

11.00

9.25

109.31

116.76

184.20

183.72

189.18

77.43

89.09

163.78

166.77

173.33

REMARKS
#
*
*

The figures included discontinued operations


6 sen Tax Exempt Special Dividend had been approved by Board of Directors and paid on 26 January 2016
3.50 sen Single Tier First and Final Dividend to be approved by shareholders at Sixteenth Annual General Meeting

FINANCIAL CALENDAR
Financial Year Ended

31 December 2015

Announcement of Quarterly Results:First Quarter ended 31 March 2015


Second Quarter ended 30 June 2015
Third Quarter ended 30 September 2015
Fourth Quarter ended 31 December 2015
Publishing of Audited Financial Statements
Publishing of Annual Report
Annual General Meeting

29 May 2015
28 August 2015
26 November 2015
25 February 2016
7 April 2016
28 April 2016
9 June 2016

Redefining Standards, Elevating

Benchmarks
In going beyond, we seek to not meet or exceed architectural benchmarks,
but to redefine them giving deeper and holistic meaning to quality,
comfort and lifestyle.

030
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

Chairmans
Statement
DEAR VALUED SHAREHOLDERS,

In my last letter, I shared about the slowdown in global economy posing challenges
to all industries. This continued to be the central topic for year 2015 bringing forward
to year 2016 with economists viewpoint still divided over the depth and duration
of its impact. Regardless of the challenges, I believe we as an industry player are
responsible to secure our position in the property market, while building a strong
foundation that can sustain our business well into the future.

031

CREDITABLE PERFORMANCE
LBS is a property developer
building residential and commercial
properties to create the maximum
returns for its shareholders with
aim of consistently pursuing and
delivering exceptional performance,
both in business and finance. Our
key actions in initiating innovation
and continuously recasting our
strategic focus to align our product
offerings to the evolving needs of
buyers in the property market have

The financial year 2015 was a tale of


two halves for the property industry.
Like others in our segment, we
continued to suffer from a decline in
sales in the first half and have to pare
down our forecast of the year. While
carefully observing the best timing
for new launches in the second half
of 2015, we were among the first
few to show early sign of recovery in
sales. We reported a 60% increase in
sales for the year as a whole, a record
breaking achievement from our
original RM1.0 billion target. Against

cash payment totalling HKD200


million arising from the disposal
of investments in China in 2013;
and
b) The proposed First and Final
Single Tier Dividend of 3.5
sen (2014: 3.25 sen) per share
derived
from
its
ordinary
business operations subject to
shareholders approval at the
forthcoming Sixteenth Annual
General Meeting. As compared
with last year, we have declared
7.7% more dividend.

We reported a 60% increase in


sales for the year as a whole, a record
breaking achievement from our original
RM1.0 billion target.

further strengthened our balance


sheet and rebalance our portfolio
while providing renewed stability,
focus and direction through more
active and passionate operational
management.

the backdrop of economic hiccup


and reflecting on the right quality and
mix of our property projects in hand,
I must conclude that we had a good
year in 2015.

I would say that, both the Board


and the Management, have done
an excellent job in transforming the
quality and capability of LBS team,
sharpening the focus of our strategic
intent, enhancing performance and
increasing our resources. LBS has
scale, focus and outstanding expertise
and experience. We have a long held
and deep commitment to advance
the sustainability agenda in property
development and management and
have delivered some of the most
sought after properties. This enables
us to embrace new opportunities as
we move through market cycles.

SHAREHOLDERS VALUE
CREATION
We recognize the importance of
dividends to investors. Thus, we
have increased the absolute dividend
amount paid to shareholders taking
into account the increased capital
base of 2.4% during the financial
year 2015. LBS continued to reward
its shareholders in line with its Dual
Dividend Policy, covering:
a) The payout of Special Dividend of
6 sen per share on 1 September
2015 derived from the receipt of
the second tranche of deferred

ShareHolders
Return

12.2%

032
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

CHAIRMANS
STATEMENT
In addition to cash dividend, the
Company had also issued bonus
warrants in year 2015 on the basis of
one (1) free Warrant B for every four
(4) existing ordinary shares held. This
represents a bonus of about 8 sen
per share basing on the theoretical
fair value of the bonus warrant at
issue date.
I am delighted to note that full year
dividend which valued at a historical
high of 17.5 sen per share representing
a yield of 12.2% was returned to
shareholders for the financial year
2015. We remain committed to our
Dual Dividend Policy and provide
higher dividend as long as market
conditions, retained earnings and
cashflow allow.

CORPORATE STRATEGY
REVIEW
In year 2015, the Group has
continued with its strategy adopted
since year 2013, particularly in land
bank replenishment strategy. Thanks
to our re-strategised business model
and land bank acquisition initiatives,
our performance in year 2015
showed a good momentum in our
consistent and successful strategy
with strong customers demand for
our products, which enabled us to
rescale and reposition our business
amidst challenging environment.
The success of our business is a
testament to the robustness of our
strategy and with this in mind, the
Board is confident that the plans
being executed by the Group is
poised to take advantage of the
growing opportunities ahead.

To continue leveraging on our


existing construction strength and
realising additional synergies from
the complementary activities, we
are looking forward to growing and
building our construction division
with target to further expand its
client base. The investment in the ML
Global Berhad is the opportunity we
grasped with objective to strengthen
our capacity in construction segment
while expanding and diversifying our
clientele.

CORPORATE DEVELOPMENTS

In the year 2015, we


acquired a total of 763
acres of development
lands in the states of
Johor and Selangor that
will pave way for our
expansion strategy in
the immediate future.

In the year 2015, we have also


acquired 4 new dormant subsidiaries
and 1 new associated company to
take over new projects in the future.

Greater Potential Earnings


foothold
During the year, the Group continues
its business rationalisation and
expansion activities through a series
of equity interest acquisitions from
the minority shareholders in four
companies. The increasing stakes
in these companies enables the
Group to gain better control and
recognition of greater potential
earnings deriving from the future
projects development.

Land banking
The Group continues to operate
successfully in a sluggish property
market with strong acquisitions in
the year to increase our strategic
land portfolio. In the year 2015,
we acquired a total of 763 acres of
development lands in the states of

Midhills

033

CHAIRMANS
STATEMENT

Johor and Selangor that will pave


way for our expansion strategy in
the immediate future. In line with the
Groups aims for capital efficiency,
joint venture partners are being
identified for certain projects as
appropriate.
Following the continued good
progress with our valuable strategic
land assets, our land bank as at 31
December 2015 expanded by 34% to
2,870 acres with estimated total gross
development value of RM21.7 billion.
Opportunistic Approach in other
Business Segment
Apart from being a property
developer, we also ventured into
tourism business in year 2014
through a subsidiary with activities
branded under Melaka Alive. Aimed
to position as the lead attraction for
cultural tourism in Malaysia, Melaka
Alive combines elements of theatre

and history against a sophisticated


technology laden background to
inspire visitors the diverse cultures
and rich history of Melaka.
On 21 September 2015, we
had signed a Memorandum of
Understanding with Zhuhai Jiuzhou
Holdings Group Co. Ltd to express
both parties consent and accord to
achieve the vision of the Upgrading
and Transformation Plan of Zhuhai
International Circuit to transform the
racing circuit into a cosmopolitan with
content and elements comprising
racing, tourism and China-Malaysia
culture. This plan is to be developed
based on the following concepts:1. To integrate motorsports into
modern urban life in an open
way by demolishing the existing
enclosing wall of the racing circuit.
2. To create a tourism centre
of cultural exchange in the
Northern District of Zhuhai with
special attraction.

3. To create a multi-culture centre


to exhibit cultural exchange,
encompassing a Malacca cultural
museum and Made in Malaysia
Excellence exhibition hall.
I strongly believe this transformation
plan would create great value for this
investment upon execution.

034
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

CHAIRMANS
STATEMENT
Commitment to Innovations
The Groups vision on becoming an
internationally recognized developer
continued to earn awards from its
development projects and marketing
campaigns in year 2015.
LBS once again swept the awards for
the third year in a row by receiving top
award for three categories namely
the Five Star Development Marketing,
Malaysia with BSP Township; Five
Star Architecture Single Residence,
Malaysia with Barrington Homes
and Highly Commended Apartment,
Malaysia with BSP 21. With the
awards, it is not only indicate the
strength of our projects, but served
as a great encouragement for us to
attain even better performance for
this year.

I must take the opportunity provided


to me in this letter to express my
most sincere congratulations to our
Managing Director, Tan Sri Lim Hock
San who has been bestowed with
the prestigious The Brandlaurette
Hall of Frame-Lifetime Achievement
Brand ICON Leadership Award 2015
by Asia Pacific Brands Foundation
for his outstanding leadership and
distinguished effort in driving LBS to
a greater height.

2016 OUTLOOK AND


PROSPECT
We have now entered into second
quarter of new financial year 2016.
I received 2016 with optimism
particularly encouraged by the
recent recovery of Malaysia Ringgit
and some improvement in the
oil price. However, the economy
recovery remains fragile as cloud of
uncertainty continue hanging over
major economies. Commodity prices
still weak, consumer sentiment

stayed sluggish. We remain alert


to the possibility of further market
disruption given the uncertain
global economic conditions. We
will therefore continue to act with
caution over the coming financial
periods.
We believe that property market is
going to be relatively stable this year
underpinned by low unemployment
rate and a growing population with
relatively
young
demographics.

035

CHAIRMANS
STATEMENT

As stated earlier, a key aspect of our


strategy is replenishing our land bank.
We are of the view that the current
down cycle may present land bank
building exercise opportunities for us
at attractive prices with the back of a
healthier balance sheet and stronger
cash position.
We will continue with our strategy of
exploring portfolio opportunities and
focusing on integrated developments
to leverage our larger and strategic
land bank.

APPRECIATION
To all our valued customers,
shareholders, business associates,
bankers and the relevant government
authorities, I extend herewith my
appreciation for your continuous
support and confidence in the Group.

We will continue with our


strategy of exploring portfolio
opportunities and focusing on
integrated developments to
leverage our larger and strategic
land bank.

It is to the credit of all LBS employees


that we have responded with accent
and dedication to the tasks in hand
during the critical times my
special thanks for their toughness,
determination and support under the
heavy work demands arising out of a
challenging year 2015.

We are mindful of the challenges


due to the slowdown in property
sector where the high-end property
remain competitive. We will continue
emphasizing on affordable segment,
which is expected to remain as
driving force in the property market
in the near term backing by the
governments vigorous initiatives in
helping the youth to buy their house,
such as My First Home Scheme, Youth
Housing Scheme and MyDeposit
Scheme.

Whilst caution remains our master,


we are well-focused on the
opportunities we now expect to
unfold. I look forward to receiving
again your immeasurable support to
LBS.

DATO SERI LIM BOCK SENG


Chairman
15 April 2016

036
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

Review of
Operations
DEAR VALUED SHAREHOLDERS,
During the year 2015, the Group has seen another year of improvement with our
property development business trended favorably and our sales hit a record high of
achieving billion-ringgit milestone. The commendable sales performance was mainly
attributed to strong demand for its projects in Bandar Saujana Putra (BSP) and
D Island Residence in Klang Valley.

037

FINANCIAL REVIEW
For the financial year 2015, the
Group delivered another favorable
results, posting Revenue and Profit
Before Tax (PBT) of RM680.3 million
and RM108.1 million respectively.
These represent approximately 2%
increase in revenue and 4% increase
in PBT against the results recorded
in the preceding year 2014. The
improvement was mainly attributable
to the progressive recognition of
revenues from the high rise projects
at BSP and D Island Residence in
Klang Valley, Cameron Golden Hills
in Cameron Highlands and Midhills
in Genting Highlands. In addition,
there were few landed projects
in Klang Valley were at their final
stage of completion during the year
2015. Nevertheless, the unbilled
sales of approximately RM1.0 billion
as at 31 December 2015 provides
comfortable future earnings for the
Group.
Following a series of active land
procurement exercise and acquisition
of non-controlling interests as

the Group delivered


another favorable
results, posting
Revenue and Profit
Before Tax (PBT) of

RM680.3 million
and RM108.1
million respectively.

well as higher works done for the


development projects, the Group
ended the year 2015 with a cash and
cash equivalent balance of RM154.4
million, a drop of 42.3% from 2014s
figure of RM267.8 million. However,
the gross gearing ratio remains at
industrys healthy level of 0.56 times
with better financial flexibility backed
by total assets of RM2.4 billion.
Our main business segment, which is
property development, continues to
spearhead the Groups growth in year
2015 and it is expected to continue
to be the main stream of income for
the Group. Property development
segment contributed 85.0% of the
Group revenue while other segments
including
construction,
motor
racing circuit, trading and others
contributed the remaining 15%.

ECONOMIC OVERVIEW 2015


Following the deterioration of global
commodity with oil prices remain
stuck at historical lows, depreciation
of Malaysian Ringgit against United
State Dollars, financial market
turbulence and sudden reversal of
capital flows, Malaysia grappled with
severe economic headwinds in year
2015.

At the domestic front, more


stringent loan requirements and
lackluster
consumer
sentiment
upon the implementation of goods
and services tax have affected the
performance in the local property
market. Nevertheless, Malaysias
economy in the fourth quarter of
2015 expanded at 4.5 per cent and
full-year growth at 5.0 per cent, which
was slightly higher than economists
forecast of 4.9%, underpinned by the
manufacturing sector. In addition,
the implementation of goods and
services tax, effective 1 April 2015 and
execution of subsidy rationalization
by the government certainly help to
support fiscal consolidation to ensure
the stability of the Malaysia economy.

MALAYSIA OPERATIONS
PROPERTY DEVELOPMENT
Under this challenging environment,
the Group remained resilient and 1,584
units were sold during the year 2015,
translating to a sales value of RM1.092
billion, which has outperformed
industry level with impressive increase
of 60% in sales as compared to year
2014. The key developments which had
contributed to LBS in achieving its 2015
sales target were projects located in
Selangor with a total sales contribution
of approximately RM857 million.

038
LBS BINA GROUP BERHAD (518482-H)
ANNUAL REPORT 2015

Review of
Operations
As at the end of year 2015, the
Group has 15 on-going projects with
gross development value (GDV)
of approximately RM2.1 billion, out
of which 7 were launched during
the year. In 2015, 1,686 units of
various type of properties with total
value of RM798.6 million have been
completed and followed by hand
over of vacant possession to the
purchasers.

KLANG VALLEY
As at end of year 2015, the Group
has two projects in the Klang
Valley, which are BSP township
and D Island Residence. These two
projects continued to be the anchor
contributors making up 83.0% of the
total sales in year 2015.
Bandar Saujana Putra
BSP, a township that was launched
in year 2003 with population
over 30,000 was rewarded with
a prestigious award the Five Star
Development Marketing, Malaysia
at the Asia Pacific Property Awards

BSP township and


D Island Residence
continued to be the
anchor contributors
making up 83.0% of the
total sales in year 2015.

(APPA) 2015. The award recognised


the successful marketing strategy
and campaign of the project and
represented it is well-positioned to
meeting the increasing demands for
quality homes.
The Group still has about 161.5 acres
of land in BSP with total GDV of RM4.2
billion, out of which approximately
100 acres are designated for mixed
development comprising shopping
mall, service apartment, hotel, retail
shops and sport center. Part of the
said land is allocated for high-rise
and affordable housing known as
Rumah Selangorku.

BSP 21 has also gained recognition


from APPA 2015 and crowned with
Highly Commended Apartment, a
testament for our affordability not
at the expense of quality, design and
sustainable living. The first five blocks
launches received 93% take-up rate
as of today. We are confident that this
project would continue to receive
good response in the market with
contribution of about RM380 million
in sales for year 2016.

BSP Skypark, which was launched in


2013, is the first service residences
in BSP with modern facilities and
has received 96% take-up rate as
of today. Vacant possession of
completed property was handed
over to purchaser in the year 2015.

In 2015, the Group had launched


its commercial units known as BSP
Village. It is designed to fulfill the
social and commercial needs of the
residents in BSP as well as allowed us
to tap into the growing populations
of BSP. With the opening of MAHSA
University in the vicinity in September
2015, it attracted strong interest with
68% take-up rate and the remaining
units are targeted to be fully snapped
up in the next few months.

BSP 21, a 10-block high rise residential


project on a piece of 21-acre land
next to the main road of BSP with
estimated total GDV of RM1.4 billion
was launched in December 2014.

Besides, Rumah Selangorku, an


affordable housing development
project known as BSP Bayuan Mas
comprising a total of 1,312 units
of affordable houses and 24 units

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of shops would be launched in
year 2016 in line with the state
governments effort to encourage
the public to own house at affordable
prices in Selangor. This housing
project involved the building of 1,048
apartments units with built-up area
of 900 sq. ft. to be sold at RM180,000
each and 264 apartments units with
built-up area of 800 sq. ft. to be sold
at RM150,000 each.
It is our commitment to make this
850-acre township a place that is
safe and convenient by constantly
providing
more
improvements
and enhancements. In year 2015,
residents have seen the lake near
Camellia Cottage being beautified
and installed with new walkway and
outdoor gym facilities; the relocation
of more organized and convenient
venue for night market and the
increased areas for well-maintained
landscape.
We are of the view that residential
properties within an integrated
project have a greater appeal because
of the surrounding lifestyle amenities
compared to a standalone project.
Under the urbanization planning,
besides sustainable development,
integrated
development
where
space optimization and resource
efficiencies have been given much
emphasis lately. A good integrated
development equals to having
an optimal mix of quality retail,
commercial and residential spaces,
all seamlessly integrated to provide
the day-to-day convenience and
comfort for people to reside, work
and relax. Thus, well-designed, wellbuilt and well-managed projects
located around key business centres

and transport hubs have done well


and are expected to stay relevant
over time. We make this one of
the prime criteria in our land bank
sourcing process. In the meantime,
our plan for future development in
BSP township has already reflected
this trend under the theme of One
BSP.
While BSP is in its midst of concluding
the final phase with only about 19%
land undeveloped, we are in the
midst of exploring new joint venture
partners who shared our vision and
plan for joint venture development to
start another township project in the
Klang Valley.
D Island Residence
In light of the challenging market
conditions in year 2015, the Group
has revised its products strategy in
DIsland Residence by introducing
the double storey semi-detached
homes Corallia priced at a much
attractive rate from RM1.6 million
per unit onwards. On top of that,
the Group continues with its effort

to devise way of attracting demands,


which include launching of the first
high-rise condominium SKYVILLA in
this island-feature development with
appealing price from RM649,900
onwards. The focus on the revised
portfolios in D-Island Residence
would continue to persist as both
projects have received encouraging
response.

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Review of
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In addition, the Group will also
unfold new phase of Nautilus, 53
units of double storey super-linked
homes, and its second high-rise
development in D-Island Residence
named as Harbour Front in year 2016
with combined GDV of approximately
RM663 million.
Desiran Bayu, Puchong
Desiran Bayu, which is located next
to our premier development DIsland
Residence, is poised to meet the
increasing demands for affordable
homes within the Klang Valley.
Subsequent to the market research
done internally, the management
will be launching Phase 1 to 3
Desiran Bayu, comprising 236 units
of double storey linked homes, 88
units of double storey cluster-linked
semi-detached homes and 6 units
of double storey semi-detached
homes in second half of 2016.
These properties are priced between
RM470,000 and RM880,000 per unit.
The entire project is expected to
contribute a GDV of RM375.8 million.

Klang and Shah Alam


Two new industrial parks named as
Telok Gong Industrial Park in Klang
and Taman Perindustrian Shah Alam
@ U10 are planned for launching in
2016. The former comprises a total
of 96 units of semi-detached factory,
bungalow factory and low cost factory
with total estimated GDV of RM295.0
million while the later consists of 13
exclusive parcels of vacant detached
plots for light industrial use with total
land area of 52.9 acres, carrying a
GDV of RM243.6 million.

PAHANG
Cameron Highlands
46 unit of two and three storey
semi-detached residence known as
Barrington Homes were unveiled in
2014 in conjunction with the official
opening of LBS signature sales office
in Brinchang. With a five bedrooms
and seven bathrooms layout, the
three storey English Tudor-styled
landed properties come with a layout
size of 4,385 sq. ft. and priced from
RM1.7 million. The double storey
semi-detached homes have gross
built-up of 2,516 sq. ft. are priced
from RM968,000. As at end of 2015,
it had received positive response with
take-up rate of approximately 60%.
First batch of Barrington Homes is
expected to complete in 2016.
Two projects are in the launching
pipeline for year 2016. One of the
projects is 77 units of double storey
linked house Vines 2 priced from
RM700,000 onwards with GDV of
RM58.3 million. Another is Phase 1 of
Cameron Centrum comprises shop
units and hotels with total GDV of

RM252 million, of which 58 units of


shop with estimated GDV of RM178.3
million.
Gotong Jaya
In December 2014, we have launched
another new project Midhills in
Gotong Jaya. Midhills is a mixed
development comprising 610 units of
furnished service apartments under 3
blocks with various sizes and a hotel
block with 186 rooms with estimated
total GDV of approximately RM413.3
million. Phase I comprises 192 units
of furnished serviced apartments with
total GDV of RM103.5 million and
priced at RM422,900 was launched
in year 2014.
We believe that the upcoming world
first 20th Century Fox World Theme
Park and the Genting Premium Outlet
in the Genting Highlands will spur the
dynamic in this vicinity which in turn
will increase the potential of Midhills .

JOHOR
Batu Pahat
Bandar Putera Indah township has
contributed 11% toward the Groups
sales in year 2015.
Magma Garden comprises 1,416
single storey terraced homes out of
which 465 units were launched in
2013 and has received overwhelming
response with a take-up rate of
97% as of today. The overwhelming
response was supported by its
attractive pricing of RM150,000 and
ideal location in the heart of Batu
Pahat. It has a gross built-up area of
1,022 sq. ft. with each unit situated
on a 20 ft. by 65 ft. land area.

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obligation to extend a general offer
to acquire all the shares and warrants
of MGB not yet owned by us under
Section 218(2) of the Capital Markets
and Services Act, 2007.

Ivory Garden is two storey terraced


homes with gross built-up of 2,728
sq. ft. Phase 1 comprising 207 units
with total GDV of RM83 million were
launched in 2014. Initially, priced at
an affordable range from RM388,000
onwards, it has received encouraging
response with a total take-up rate
of 86% as at today, recording a
cumulative sale of RM70.8 million.
Phase 2 with its 44 units launched in
mid-2015 continued to receive good
response.
Apart from that, in the first quarter of
2015, we have launched 22 units of
double storey semi-detached homes
Royal Garden with total GDV of RM14
million and 58 units of low-cost shop
with total GDV of RM10 million.
In the years to come, more projects
under Bandar Putera Indah will be
introduced to the public to cater for the
increasing demand both in residential
and commercial units at the affordable
and medium price segment.

MALAYSIA OPERATIONS
CONSTRUCTION
Subsequent
to
the
Company
becoming a substantial shareholder
of ML Global Berhad (MGB) in
August 2014, the Company has
further increased its stake in MGB
to 31.95% as of March 2016 from
22.06% in year 2014 as the Group
expects this investment will generate
synergies and more shareholder
values in the future. The last two
quarters of MGBs result have already
shown improvement and turned in
profits in year 2015. MGB was uplifted
from a PN 17 status with its securities
traded as regular on the Main Market
of Bursa Malaysia effective 11 March
2016.
When I pen down this note, MGB
has already became our subsidiary
with the acceptance of 18.97% equity
shares offered at RM0.56 each.
Consequential from the acceptance
of the offer, we have triggered the

We perceive MGBs businesses are


complementary to our property
development
and
construction
activities. The said shares acquisition
undertaken by the Company is to
gain control of MGB in order to drive
the future strategic direction and
business expansion of MGB. This
enables us to exercise management
and operational control over the
MGB Groups businesses with a
view of improving its future financial
performance and correspondingly
enhance the value of the Companys
investment in MGB.

OVERSEAS OPERATIONS
Zhuhai International Circuit
(ZIC)
ZIC is a prestigious motorsport racing
circuit recognized internationally by
many from around the world. ZIC
was the first permanent motor racing
circuit built in China. Completed in
November 1996 to host Chinas first
international motor race event, the
4.3 km long circuit has since become
a hub for Motorsports enthusiasts
from all over the world. Built to
exacting international standards and
approved by the FIA (Federation
Internationale DeLAutomobile), the
race track offers challenging corners
for spectacular overtaking maneuvers
to world class drivers.

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ANNUAL REPORT 2015

Review of
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To create more value of this 264acre land, the Management together
with its local partner are seeking
local authorities approvals on an
upgrading and transformation plan
to transform the racing circuit into
a mixed development comprising
motor sports, tourism and cultural
elements. The transformation plan is
in line with the 21st Century Maritime
Silk Road strategy introduced by China
President Xi Jinping and is also riding
on the establishment of Friendly
State and Province between Malacca
State and Guangdong Province. The
transformation plan includes, among
others, upgrading of the race track
and development of a motor sportsthemed hotel, exhibition hall catering
to the racing industry, theme park,
premium outlet and also Malacca
cultural and information center.
In March 2016, we have initiated
the transformation plan with the
launching ceremony for its Malacca
Cultural and Trade Centre and

Malacca Cultural Festival in Zhuhai


co-officiated by Malaccas Yang
di-Pertua Negeri, Tun Datuk Seri
Utama Mohd Khalil bin Yaakob, Chief
Minister of Malacca, Datuk Seri Ir. Haji
Idris Haron and Guandong Governor,
Mr Zhu Xiaodan.
On top of that, the value of the ZIC
land could be further enhanced by
the completion of the 29km Hong
Kong-Zhuhai-Macau bridge, which
is targeted to be completed in early
2017. The bridge opening is set to
give a further boost the economy
particularly the tourism industry
in Zhuhai City. We aligned our
strategy to tap onto this advantage
to incorporate tourism segment into
the transformation plan.
Zhuhai Holdings Investment
Group Limited (Zhuhai Holdings)
LBS currently is one of the substantial
shareholders of Zhuhai Holdings.

Zhuhai Holdings is a company listed


in Hong Kong. With a large portion
of state-owned core quality assets
in respect of transportation, tourism
and public utilities in Zhuhai, its
businesses cover various sectors
such as city energy supply, tourism
properties, maritime transportation,
port terminals operation, hotel
services, theme attractions, maritime
tourism, golf and travel agency
services.
For the financial year ended 31
December 2015, the consolidated
revenue of Zhuhai Holdings Group
achieved HK$3.1 billion, representing
an increase of about 76.3% as
compared with HK$1.7 billion last
year. Gross Profit of the Zhuhai
Holdings Group increased by 44.0%
to HK$764.1 million and Profit for the
year recorded at HK$301.5 million,
comparing with HK$162.3 million
last year. The net profit attributable
to ordinary equity holders of
Zhuhai Holdings was approximately
HK$124.7 million, representing a
decrease of 110.1% as compared with
last year. Its basic earnings per share
for the year were HK$8.77 cents.
Zhuhai Holdingss 197-acre mixed
development
high-end
project
known as Cuihu Xiangshan (
) was honoured as one of the Top
10 Super-deluxe Homes in Asia in
2015. Following the overwhelming
response to Phase 1 villas project in
2014, high-rise project in the Phase
2 has achieved robust sales in 2015
where all units were sold out on the
launch day, creating another sales
legend for this project. This project
has contributed about RMB435

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million in revenue to Zhuhai Holdings
in its financial year 2015.
A final dividend in respect of the year
ended 31 December 2015 of HK2
cents (2014: HK1 cent) per share,
amounting to a total dividend of
HK$28.6 million is to be proposed
at its forthcoming annual general
meeting in May 2016.

2016 OUTLOOK AND GROUP


PROSPECTS
The challenges we saw last year
set to continue into the 2016
financial year. However, our longterm strategy remains unchanged
with focus on our growth strategy
revolved around domestic property
market, particularly in the states of
Selangor, Johor and Pahang. The
group will continue to observe
with vigilant the progress of macro
market environment. We believe
that the down-cycle leads to land
bank
acquisition
opportunities.
Nevertheless, the Group employs a
conservative funding and treasury
strategy in land banking exercise as
bulk of our land bank acquired were
in the form of joint ventures, thus
allows the Group to consistently
keep a comfortable level of gearing.
We will continue to adopt a
sustainable
growth
strategy,
leveraging on winning partnerships
and long-term relationships. Whilst
we poised to capture growth
opportunities, the Group cautiously
monitors the markets and adopts
careful approaches in all situations.

Through active acquisition of land


banks exercise in the past two years,
with Groups strong unbilled sales
and pipeline of projects, we envisage
overall outlook to remain positive.
We continue to observe closely
the changing macro economic
conditions and remain selective
on investment that will create the
optimum value. We strive to further
strengthen our sales and operations
for better products competitiveness.
Under the circumstance that there
is minimum indication of easing
the property cooling measures,
we would be selective in the area
of expanding our land bank, whilst
waiting for opportune timing in new
projects launching.
Moving forward, we will continue
to manage and evaluate the
development of all our projects
caters to different potential market
segments from affordable, mid to
high-end developments. We would
continue in re-strategizing LBS
business model, revamping products
and marketing strategies in shaping
its vision to be an international
recognised
developer,
building
and inspiring delightful spaces that
enhance community living into reality
through building inspiring living
spaces and sustainable communities.
We firmly believe persistent and
sustainable development is crucial
elements to success in this industry.
LBS will uphold its courage to
transform while maintaining modesty
and determination. We will continue
to deliver quality products and strive
to make the right decisions.

APPRECIATION
Over the years, the Group has
received numbers of awards and
recognitions and the awards won
lately are the Top 10 Developers
of the Year StarProperty.my Awards
2016 and Best Company for
Leadership of Property Development
in International Alternative Investment
Review Awards (IAIR Awards). These
awards bear testimony to our
continuous efforts and commitment
in providing quality homes and prove
that we are on the right track for
growth and to achieve our vision as an
internationally recognized developer.
At the same time, I would like to
express my heartfelt thankfulness
to my fellow directors for their
invaluable and constant support and
all our business partners as well as
valued customers for their continued
trust over the years.
The inherent cyclical nature of the
property market brings the year
ahead to further challenges but we
will continue to maintain our focus
on the long-term, as we have always
done. I am confident that the Groups
extensive experience will enable
LBS to navigate the path ahead
successfully and take hold of every
opportunity to further our expansion.
Again, I look forward to the future
with optimism, and I invite you to join
us in our journey.

Tan Sri Lim Hock San


Managing Director
15 April 2016