Annual Report 2016 GUH Holdings Berhad - malaysiastock.biz GUH Holdings Berhad is a Malaysian-based corporation with businesses in ... Cable Industry Berhad and Universal ... is involved

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GUH Holdings BerhadAnnual Report 2016

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MISSIONFOR ITS SHAREHOLDERS• Practisegoodcorporategovernancetoenhancetransparency• Identifycorrectventuresandbusinessdevelopmenttomaximizeshareholders’value• Providegooddividendpayment

FOR ITS EMPLOYEES• Provideaconduciveworkingenvironment• Providepropertraining,developmentandopportunitiesforcareeradvancement• Recognizeandrewardexcellentemployees

FOR ITS CUSTOMERS• Respondtothechangingdemandsofthecustomers• Improveproductsqualityandtechnical innovationstofulfillcustomers’needsandsatisfactions inthemarket

place

FOR ITS COMMUNITY• Participateinenvironmentalprotection• Upholditscorporateresponsibilitiesforthebenefitsofthecommunity

VISIONTobeprofitableandwell-establishedconglomeratethatmaximizestheinterestforits

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CORPORATE PROFILE

GUHHoldingsBerhadisaMalaysian-basedcorporation

withbusinessesin

electronic,propertydevelopmentandutilities

Asaproudandhome-growncompany

withitsdiversifiedportfolio,

GUHiscommittedtobuilding

asustainablefutureandbringingpositivebenefits

toallitsstakeholders

www.guh.com.my

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TanSriDato’SeriH’ngBokSanExecutive Chairman

Dato’KennethH’ngBakTeeChief Executive Officer/Managing Director

Dato’HarryH’ngBakSeahNon-Executive Director

DatinJessicaH’ngHsiehLingNon-Executive Director

Mr.ChewHockLinIndependent Non-Executive Director

Dato’IsmailBinHamzahIndependent Non-Executive Director

Mr.LaiChangHunIndependent Non-Executive Director

En.WanIsmailBinWanNikIndependent Non-Executive Director

Dato’GanKongMengIndependent Non-Executive Director

Board of Directors

Company Secretaries

Dato’KennethH’ngBakTee(LS0008988)KeeGimTee(MAICSA7014866)

Share Registrar

MegaCorporateServicesSdnBhd(187984-H)Level15-2BangunanFaberImperialCourtJalanSultanIsmail50250KualaLumpurTel :0326924271Fax :0327325388Website :www.megacorp.com.my

Registered Office

PartofPlot1240&1241BayanLepasFreeIndustrialZonePhase3,BayanLepas11900PenangTel :046166333Fax :046166366Website :www.guh.com.my

Independent Auditors

CroweHorwath(AF1018)CharteredAccountantsLevel6,WismaPenangGarden42JalanSultanAhmadShah10050PenangTel :042277061Fax :042278011Website :www.crowehorwath.com.myPrincipal Bankers

PublicBankBerhadCitibankBerhadUnitedOverseasBank(Malaysia)BhdMalayanBankingBerhadCIMBBankBerhad

Stock Exchange Listing

ListedontheMainMarketofBursaMalaysiaSecuritiesBerhadunderIndustrialProductsSector

StockCode :3247StockName :GUH

CORPORATEINFORMATION


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1 CorporateProfile

2 CorporateInformation

4 ProfileofDirectors

10 ProfileofManagementTeam

13 ExecutiveChairman’sStatement

15 Management’sDiscussionandAnalysis

23 CorporateStructure

24 FinancialHighlights

26 SustainabilityReport

30 CorporateGovernanceStatement

43 AdditionalDisclosure

44 StatementonRiskManagementand InternalControl

47 AuditCommitteeReport

51 FinancialStatements

129 AnalysisofShareholdings

132 ListofProperties

133 NoticeofAnnualGeneralMeeting

139 StatementAccompanyingNoticeof AnnualGeneralMeeting

• ProxyForm

CONTENTS

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TanSriDato’SeriH’ngBokSanisthefounderofGUHCircuitIndustry(PG)Sdn.Bhd.,theExecutiveChairmanofGUHHoldingsBerhad(“GUH”)GroupandthesubstantialshareholderofGUH.HewasappointedtotheBoardofGUHon6January1994.TanSriDato’SeriH’ngalsositsontheBoardofSarawakCableBerhad,apubliclistedcompany.Heholdsdirectorshipsinseveralotherprivatelimitedcompanies.

Anexperiencedandwell-knownentrepreneurwhocompletedhighschoolexaminationintheearlyyearswithaCertificateinBusinessAdministrationandAccountingobtainedinSingapore,TanSriDato’SeriH’ngbeganhiscareer invarious fields frommarketingmanagement,businessadministrationtothesettingupofbusinessesandmanufacturing.TanSriDato’SeriH’ngfoundedLeaderCableIndustryBerhadbackin1976andheimplementedarestructuringandmergerexercisebetweenLeaderCableIndustryBerhadandUniversalCable(M)BerhadandestablishedLeaderUniversalHoldingsBerhadastheholdingcompany,whichwasformerlylistedonBursaMalaysiaSecuritiesBerhad.Throughouthiscareer,TanSriDato’SeriH’nghasbeenverymuchinvolvedinthebusinessentrepreneurshipandhehasgainedextensiveoperationalexperienceinthemanufacturingaswellasthecorporaterestructuringandmergerexerciseandmanyotherfieldsandindustrysectors.Hehasaccumulatedin-depthknowledgeandrecognitionovertheyears.

TanSriDato’SeriH’ng’sdaughter,DatinJessicaH’ngHsiehLingandtwobrothers,Dato’HarryH’ngBakSeahandDato’KennethH’ngBakTeearealsotheDirectorsofGUH.TanSriDato’SeriH’ngisdeemedtohaveaninterestpertainingtotheproposedrenewalofshareholders’mandateforrecurrentrelatedpartytransactionsofarevenueortradingnaturewhichwillbe tabledat the forthcoming53rdAnnualGeneralMeeting.Heisalsodeemedtobeinterestedincertainrecurrentrelatedpartytransactionsortradingnaturewhicharenecessaryfordaytodayoperationsof theCompanyanditssubsidiariesasdisclosedonpage120oftheAnnualReport.

Saveasaforesaiddisclosed,therearenootherbusinessarrangementswiththeCompanyinwhichhehaspersonalinterests.TanSriDato’SeriH’nghasnotbeenconvictedofanyoffenceswithinthepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

TanSriDato’SeriH’ngattended3outof5Boardmeetingswhichwereheldinthefinancialyearended31December2016.

Tan Sri Dato’ Seri H’ng Bok San, JP

PSM, DPPN, DGPN, DSPN, PKT, PJK

ExecutiveChairman77yearsold,Male,Malaysian

PROFILEOFDIRECTORS

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Dato’KennethH’ngBakTeehasbeenappointedtotheBoardastheChiefExecutiveOfficer/ManagingDirectorofGUHsince1September2004.HeisamemberoftheRemunerationCommitteeappointedbytheBoard.CurrentlyhealsoservesasaDirectorofallsubsidiariesoftheGroupandseveralotherprivatelimitedcompanies.HeisaBoardmemberofBinaryUniversityCollegeofManagementandEntrepreneurship.

Priortothat,hewaswithInternationalBusinessMachines(IBM)inKualaLumpurandIBMinAsiaSouthPacificArea(ASPA)HQinHongKong.HewasalsowithLeaderUniversalHoldingsBerhad(“Leader”) for16years.

Dato’KennethgraduatedwithaBachelorofMathematics(DoubleHonours)inComputersScienceandCombinatoric&OptimizationandalsoholdsaMasterofAppliedScience(ManagementScience) inUniversityofWaterloo,Canada.HeiscurrentlyaFellowMemberoftheInstituteofApprovedCompanySecretaries,anAffiliateMemberoftheMalaysianInstituteofCharteredSecretariesandAdministratorsandaMemberoftheRegisteredFinancialPlanner.

Dato’KennethisthebrotheroftheGroup’sExecutiveChairman,TanSriDato’SeriH’ngBokSanandtheNon-ExecutiveDirector,Dato’HarryH’ngBakSeah.Hisniece,DatinJessicaH’ngHsiehLingisalsoaNon-ExecutiveDirectorofGUH.Dato’Kennethisdeemedtohaveaninterestpertainingtotheproposedrenewalofshareholders’mandateforrecurrentrelatedpartytransactionsofarevenueortradingnaturewhichwillbetabledattheforthcoming53rdAnnualGeneralMeeting.HeisalsodeemedtobeinterestedincertainrecurrentrelatedpartytransactionsortradingnaturewhicharenecessaryfordaytodayoperationsoftheCompanyanditssubsidiariesasdisclosedonpage120oftheAnnualReport.

Saveasaforesaiddisclosed,therearenootherbusinessarrangementswiththeCompanyinwhichhehaspersonalinterests.Dato’Kennethhasnotbeenconvictedofanyoffenceswithinthepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

Dato’Kennethattendedallofthe5Boardmeetingswhichwereheldinthefinancialyearended31December2016.

Dato’ Kenneth H’ng Bak TeeDPNS, DSPN, PKT, PJM

ChiefExecutiveOfficer/ManagingDirector

57yearsold,Male,Malaysian

PROFILEOFDIRECTORS

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Datin Jessica H’ng Hsieh LingNon-ExecutiveDirector

51yearsold,Female,Malaysian

DatinJessicaH’ngHsiehLingwasappointedtotheBoardasaNon-ExecutiveDirectoron20February2001.SheisamemberoftheAuditCommitteeandRiskManagementCommitteeappointedbytheBoard.Sheholdsdirectorshipsinseveralotherprivatelimitedcompanies.

DatinJessicagraduatedfromSouthernIllinoisUniversityatCarbondale,USAwithaBachelorofScienceDegree,majoring inAccountingandshealsoobtainedaMasterofScienceDegree,majoring inTaxationfromDrexelUniversity,Philadelphia,USA.Uponcompletinghertertiaryeducation,DatinJessicastartedhercareerbyholdingvariousmajorkeypositionsinmultinationalcompaniesandgainedextensiveknowledgeandexperienceincorporatefinanceandbusinessmanagementpriortojoiningLeaderUniversalHoldingsBerhad.DatinJessicaisthedaughteroftheGroup’sExecutiveChairman,TanSriDato’SeriH’ngBokSan.Heruncles,Dato’HarryistheNon-ExecutiveDirectorandDato’Kenneth is theChiefExecutiveOfficer/ManagingDirectorofGUH.DatinJessicaisdeemedtohaveaninterestpertainingtotheproposedrenewalofshareholders’mandateforrecurrentrelatedpartytransactionsofarevenueortradingnaturewhichwillbetabledattheforthcoming53rdAnnualGeneralMeeting.SheisalsodeemedtobeinterestedincertainrecurrentrelatedpartytransactionsortradingnaturewhicharenecessaryfordaytodayoperationsoftheCompanyanditssubsidiariesasdisclosedonpage120oftheAnnualReport.

Dato’HarryH’ngBakSeahwasappointedtotheBoardasaNon-ExecutiveDirectorofGUHon13January1994.Healsoholdsdirectorshipsinseveralotherlocalandoverseasprivatelimitedcompanies.

Uponcompletinghishighschooleducation,hebeganhiscareerwhichis involved in thefieldofpewterandmagnetwiremanufacturingandoperations.Subsequently,heventuredintothetelecommunicationsandpowercablebusiness.HehasheldvariouspositionsfromtheGroupManagingDirectorofLeaderUniversalHoldingsBerhadsince1993untiltheappointmentastheExecutiveViceChairmanfrom1997to2005.Throughouthiscareer,Dato’Harrygainedextensiveexperienceandenhancedtheknowledgeinthemanufacturingoperationsanddiversifiedbusinessenvironmentovertheyears.

Dato’HarryisthebrotheroftheGroup’sExecutiveChairman,TanSriDato’SeriH’ngBokSanandtheChiefExecutiveOfficer/ManagingDirector,Dato’KennethH’ngBakTee.Hisniece,DatinJessicaH’ngHsiehLingisalsoaNon-ExecutiveDirectorofGUH.Dato’Harryisdeemedtohaveaninterestpertainingtotheproposedrenewalofshareholders’mandateforrecurrentrelatedpartytransactionsofarevenueortradingnaturewhichwillbetabledattheforthcoming53rdAnnualGeneralMeeting.HeisalsodeemedtobeinterestedincertainrecurrentrelatedpartytransactionsortradingnaturewhicharenecessaryfordaytodayoperationsoftheCompanyanditssubsidiariesasdisclosedonpage120oftheAnnualReport.

Dato’ Harry H’ng Bak SeahDSPN, PJK

Non-ExecutiveDirector67yearsold,Male,Malaysian

Saveasaforesaiddisclosed,therearenootherbusinessarrangementswiththeCompanyinwhichshehaspersonalinterests.DatinJessicahasnotbeenconvictedofanyoffenceswithinthepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

DatinJessicaattendedallof the5Boardmeetingswhichwereheld in thefinancialyearended31December2016.

Saveasaforesaiddisclosed,therearenootherbusinessarrangementswiththeCompanyinwhichhehaspersonalinterests.Dato’Harryhasnotbeenconvictedofanyoffenceswithinthepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

Dato’Harryattendedallofthe5Boardmeetingswhichwereheldinthefinancialyearended31December2016.

PROFILEOFDIRECTORS

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Dato’ Ismail Bin HamzahAMN, KMN, DIMP

IndependentNon-ExecutiveDirector


Dato’IsmailBinHamzahwasappointedtotheBoardasanIndependentNon-ExecutiveDirectoron19December2001.HeservesasChairmanoftheNominationCommitteeandtheRemunerationCommitteeoftheBoard.HeisalsoamemberoftheAuditCommitteeandRiskManagementCommittee.Dato’IsmailsitsontheBoardsofafewpubliclistedcompanies,namelyEngtexGroupBerhad,SCCHoldingsBerhad,GohBanHuatBerhadandJKGLandBerhad.ApartfromservingasaDirectorofpubliclistedcompanies,Dato’IsmailalsoservesasaDirectorofseveralotherprivatelimitedcompanies.

Dato’ Ismailgraduated fromtheUniversityofMalaya in1970withaBachelorofEconomics(Hons)inAnalyticalEconomics.Uponcompletedhistertiaryeducation,hestartedhiscareerbyholdingmanykeypositionsinthegovernmentalagenciesandorganizations.Hegainedextensiveknowledgeandexperiencefromeconomicstofinanceacquired,throughouthiscareerandtenureofserviceinthegovernmentalauthoritiesformorethan30years.SittingontheBoardofa fewpublic listedcompanies,Dato’IsmailisveryexperiencedandcapabletoprovideindependentandobjectivejudgmenttotheBoardandheisabletoattendalltheBoardmeetingswithsufficienttimedevotedtoreadingandformulatingsolutionstoissuespresentedattheBoardmeeting.

Mr. Chew Hock LinIndependent


Mr.ChewHockLinwasappointedtotheBoardasanIndependentNon-ExecutiveDirectorofGUHon20February2001.HeservesasChairmanofAuditCommitteeandRiskManagementCommitteeandisamemberoftheNominationCommitteeandtheRemunerationCommitteeoftheBoard.HeisalsotheSeniorIndependentDirectorofGUHtowhomallconcernsmaybeconveyed.Mr.ChewalsositsontheBoardofMasterPackGroupBerhad,apubliclistedcompany.

Mr.ChewgraduatedwithaBachelorofCommerceDegreefromtheUniversityofWesternAustralia.HeisamemberofCharteredAccountantsAustraliaandNewZealand.HeisamemberoftheMalaysianInstituteofCertifiedPublicAccountantsandamemberoftheMalaysianInstituteofAccountants.HeisalsoaFellowofCharteredTaxInstituteofMalaysia.Mr.Chewisaformerpartnerofaninternationalauditfirm.Hehasmorethan40yearsofworkingexperienceinvariousareascoveringauditing,accounting,financeandtax.Hegainedextensiveexperienceandknowledgeduringhistenureasapartnerandlongyearsofserviceintheaccountancyprofession.BasedonhisexperiencesittingontheBoardofafewpubliclistedcompanies,Mr.Chewisabletoplayhisrole informulatingandreviewingtheCompany’sstrategiesandtostrikeabalanceandmaketheBoardmoreeffectiveandbeaccountabletoshareholders.

Saveasaforesaiddisclosed,Mr.ChewdoesnothaveanyfamilyrelationshipwithandisnotrelatedwithanyDirectorand/ormajorshareholderofGUHnorhasanypersonalinterestinanybusinessarrangementinvolvingtheCompany.Mr.Chewhasnotbeenconvictedofanyoffenceswithinthepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

Mr.Chewattendedallofthe5Boardmeetingswhichwereheldinthefinancialyearended31December2016.

Saveasaforesaiddisclosed,Dato’IsmaildoesnothaveanyfamilyrelationshipwithandisnotrelatedwithanyDirectorand/ormajorshareholderofGUHnorhasanypersonalinterestinanybusinessarrangementinvolvingtheCompany.Dato’Ismailhasnotbeenconvictedofanyoffenceswithinthepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

Dato’Ismailattendedallofthe5Boardmeetingswhichwereheldinthefinancialyearended31December2016.

PROFILEOFDIRECTORS

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PROFILEOFDIRECTORS

En. Wan Ismail Bin Wan NikIndependent


En.WanIsmailBinWanNikhasbeenappointedtotheBoardsince26January1994.En.WanIsmailisalsoadirectorofseveralotherprivatelimitedcompanies.

En.WanIsmailgraduatedfromtheUniversityofMalayain1971withaBachelorofEconomicsDegree.HealsocompletedtheexaminationsoftheInstituteofCharteredSecretariesandAdministrators,UnitedKingdomin1970andtheSecuritiesInstituteofAustraliain1972.Throughhiscareerthatinvolvedinvariousindustries,hehasgainedextensiveknowledgeanddiversifiedbusinessexperienceincludingcommercialbanking,investment,propertydevelopment,manufacturingandtrading.HepreviouslyservedasaDirectorinafewpubliclistedcompaniesandheisknowledgeable,competentandabletogiveindependentjudgmenttotheBoardandtofacilitateamorefair,balancedandeffectivegovernanceof theBoardandtheCompany.

Saveasaforesaiddisclosed,En.WanIsmaildoesnothaveanyfamilyrelationshipwithandisnotrelatedwithanyDirectorand/ormajorshareholderofGUHnorhasanypersonal interest inanybusinessarrangementinvolvingtheCompany.En.WanIsmailhasnotbeenconvictedofanyoffenceswithinthepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

En.WanIsmailattendedallofthe5Boardmeetingswhichwereheldinthefinancialyearended31December2016.

Mr.LaiChangHunhasbeenappointedtotheBoardsince13January1994.Mr.LaiisamemberoftheNominationCommitteeappointedbytheBoard.Healsoholdsdirectorshipsofseveralotherprivate limitedcompanies.

Mr.LaiwastheChairmanofPenangElectricalMerchantAssociationandheispresentlyholdingthepositionasoneoftheTrusteesintheAssociation.HeispresentlyaDirectorofHanChiangHighSchoolandCollegeandalsoholdingthepositionasaDirectorinanumberofsocialsocieties.Mr.Laicompletedhishighschooleducationandobtainedadiplomaintheelectricalandelectronicintheearlyyear.Hestartedhiscareerintheelectricalengineeringbusiness.Overtheyears,hehasgainedextensiveknowledgeandbusinessexperienceinthemanufacturingandmarketingofelectronicsandelectricalproductsandappliances.Apart fromthat,hehadbeenservingontheBoardofotherpubliclistedcompanyandisknowledgeable,competentandabletogiveobjectivejudgmenttotheBoardandtofacilitateamorefair,balancedandeffectivegovernanceoftheBoardandtheCompany.

Saveasaforesaiddisclosed,Mr.LaidoesnothaveanyfamilyrelationshipwithandisnotrelatedwithanyDirectorand/ormajorshareholderofGUHnorhasanypersonal interest inanybusinessarrangement involvingtheCompany.Mr.Laihasnotbeenconvictedofanyoffenceswithinthepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

Mr.Laiattendedallofthe5Boardmeetingswhichwereheldinthefinancialyearended31December2016.

Mr. Lai Chang Hun DJN, PKT

IndependentNon-ExecutiveDirector


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PROFILEOFDIRECTORS

Dato’ Gan Kong MengDSDK, PSPP, SDK, DJN, BCN, SMP, AMK,

KMN, PPAIndependent


Dato’GanKongMengwasappointedasanIndependentNon-ExecutiveDirectoron1June2015. He iscurrentlyaSeniorVicePresident forcorporateintegrityandChairmanforcreditreviewandriskassessmentofaprivatelimitedcompany.Keyresponsibilitiesincludeimplementinginternalcontrols,workingwithrelevantauthoritiesandadoptingimportantrulessuchasthoserelatingtobusinessrelationsandthoserelatingtothepreventionofmoneylaunderingandterroristfinancing.

Dato’GangraduatedfromtheUniversityScienceMalaysiawithaBachelorofScienceDegreeinPhysics&MathematicsandhealsoobtainedaMasterofSocialScienceDegreeinAnthropology/Sociology.

Dato’GanservedintheRoyalMalaysiaPoliceformorethan30overyearsbeforeretiringinearlyJanuary2015.HewastheOCPDofGeorgetown,Penang,OCCIofKualaLumpurCityandhealsoheldvariouspositionsinspecialbranch,managementaswellaspublicorder. Dato’Gan’svastexperiencewillbenefit theGroupinbriefingthesecurityandriskmanagementissues.

Saveasaforesaiddisclosed,Dato’GandoesnothaveanyfamilyrelationshipwithandisnotrelatedwithanyDirectorand/ormajorshareholderofGUHnorhasanypersonalinterestinanybusinessarrangementinvolvingtheCompany.Dato’Ganhasnotbeenconvictedofanyoffenceswiththepast5yearsotherthantrafficoffencesandhehasnotbeenimposedwithpublicsanctionorpenaltybytherelevantregulatorybodiesduringthefinancialyear.

Dato’Ganattendedallofthe5Boardmeetingswhichwereheldinthefinancialyearended31December2016.

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PROFILEOFMANAGEMENTTEAM

Qualifications:

• BachelorDegreeinChemicalEngineering,UniversityofTechnologyMalaysia• RegisteredEngineerofBoardofEngineerMalaysia

Working experiences:

• Morethan15yearsofexperienceinplanningandimplementationoflargescalewaterandwastewaterprojects,havingworkedinamongothers,Biwater,HyfluxandMMC.

• Identificationandacquisitionofwaterandwastewatertreatmentplants

Appointment to the current position:

• 1July2015

Qualifications:

• DiplomainElectronicsEngineering,ICSSchools,UK• MasterinBusinessAdministration• DoctorateofPhilosophyinBusinessAdministration,BulacanStateUniversityofPhilippines• MemberofTheInstitutionofEngineeringandTechnologyUK(MIET)


• TestEquipmentEngineerwithSanyoElectric• SeniorDesignEngineer/R&DProjectManagerwithGrundigR&D• ProductionManagerwithAsianDriveshaft• ApplicationEngineering&CommercialManagerwithGKNDriveline• PersonalAssistanttoGroupExecutiveDirectorwithGUHElectricalAppliancesSdn.Bhd.• PersonalAssistanttoGeneralManagerwithGUHCircuitIndustry(PG)Sdn.Bhd.• GeneralManagerofGUHCircuitIndustry(PG)Sdn.Bhd.


• 8January2014

DR. BRIAN KOK SIEW FOONGGeneral Manager – Electronic Division (GUH PG)60 years old, Male, Malaysian

MR. LIM CHIN WANGGeneral Manager – Utility Division38 years old, Male, Malaysian

Qualifications:

• Graduatedfromhighschooleducation


• Morethan30yearsofexperienceinrigidPCBsmanufacturingindustry• AssistantSupervisorwithMCIndustrySdn.Bhd.• SeniorDivisionManagerwithZyconCorporation(Kuching)Sarawak• DeputyGeneralManagerwithGUHCircuitIndustry(Suzhou)Co.Ltd.• GeneralManagerofGUHCircuitIndustry(Suzhou)Co.Ltd.

Appointment to current position

• 1January2008

MR. YEW KIM CHONGGeneral Manager – Electronic Division (GUH SZ)52 years old, Male, Malaysian

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Qualifications:

• BachelorofEngineering(Civil),UniversityofTasmania,Australia


• Morethan30yearsofexperienceandknowledgeinthebuildingconstructionandpropertydevelopmentindustry.


• 16August2006

MR. SUNNY LIM HIONG CHAISenior Project Manager – Property Division55 years old, Male, Malaysian

Qualifications:

• CertificateinArchitecture• DiplomainCivilandStructureEngineering


• Morethan27yearsofexperienceinconstructionandpropertydevelopmentinclusiveofdesign,planning,implementation,marketingandsaleadministration.


• 1August2006

MR. LEOW CHEE JIANSenior Project Manager – Property Division51 years old, Male, Malaysian

Qualifications:

• BachelorDegreeinAccounting,UniversityofMalaya• CharteredAccountantwithTheMalaysianInstituteofCertifiedPublicAccountants• MemberofMalaysianInstituteofAccountants


• Morethan20yearsofexperienceinthefieldofaccounting,costing,taxation,finance,auditingandriskmanagement.

• BeganhercareerwithArthurAndersen&Co


• 1January2015

MS. YEOH SAW GAIKDeputy General Manger – Corporate Office47 years old, Female, Malaysian

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Qualifications:

• BachelorDegreeinEconomics,MonashUniversity,Australia


• GainedextensiveknowledgeandexperienceinbusinessmanagementfromCitigroupandKiyamasGroupofcompanies.

• 2yearsworkingexperienceasDeputyGeneralManagerinGUHCircuitIndustry(Suzhou)Co.Ltd.,China

• PersonalAssistanttoCEO/ManagingDirectorofGUHHoldingsBerhad• GeneralManagerofCorporateDivisionofGUHHoldingsBerhad


• 12January2015

Mr.LewisH’ngChunLiisthesonofDato’KennethH’ngBakTee,CEO/ManagingDirector.HeisalsothenephewofTanSriDato’SeriH’ngBokSanandDato’HarryH’ngBakSeahandthecousinofDatinJessicaH’ngHsiehLing.

Mr.LewisH’ngsitsontheboardofmajorityofsubsidiariesofGUH.Heisdeemedtohaveaninterestpertainingtotheproposedrenewalofshareholders’mandateforrecurrentrelatedpartytransactionsofarevenueortradingnaturewhichwillbetabledattheforthcoming53rdAnnualGeneralMeeting.

MR. LEWIS H’NG CHUN LIGeneral Manager – Corporate Office29 years old, Male, Malaysian


Additional notes on the above Management Team

Saveasaforesaiddisclosed,noneoftheManagementTeamhasany:-

1. Directorshipinpubliccompaniesandlistedissuers;

2. Familyrelationshipwithanydirectoror/andmajorshareholderoftheCompany;

3. ConflictofinterestswiththeCompany,and

4. Convictionofofffences,otherthantrafficoffenceswithinthepast5years,andpublicsanctionorpenaltyimposedbytherelevantregulatorybodiesonhimorherduringthefinancialyear.

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OnbehalfoftheBoardofDirectorsofGUHHoldingsBerhad(“GUH”or“theCompany”),IampleasedtopresenttheAnnualReportandAuditedFinancialStatementsof theCompanyandtheGroupforthefinancialyearended31December2016.

Tan Sri Dato’ Seri H’ng Bok San, JP

PSM, DPPN, DGPN, DSPN, PKT, PJK

ExecutiveChairman

EXECUTIVECHAIRMAN’SSTATEMENT

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Performance Overview

Despitetheadverseenvironment,forthefinancialyearended31December2016,theGroup’srevenueincreasedtoRM315.1millionfromRM285.4millionrecordedintheprecedingyear.TheGrouprecordedahigherprofitbeforetaxofRM23.2millioncomparedtoRM18.7millionfortheprecedingyearmainlyduetoimprovementandcontributionfromitsElectronicDivision.

Significant Event

On1March2016, theCompanyannouncedthat theproposedacquisitionof two (2)contiguouspiecesof freeholdvacant landheldunderLot1377andLot1699,Mukim12atTempatLadangValdor,SeberangPeraiSelatan,Penang,measuringapproximately12.06acres,onefromarelatedpartyandanotheronefromathirdpartybyGUHRealtySdn.Bhd.,awholly-ownedsubsidiaryoftheCompanyhadbeencompleted.Duringthefinancialyear,theCompanyproposedandsubscribed1,166,667newordinarysharesofRM1.00each(25%equityinterest)inStraitsInternationalEducationGroupSdn.Bhd. fora totalcashconsiderationofRM11.0million;andacquired2ordinarysharesofRM1.00each(100%equityinterest)inMilanDiamondSdn.Bhd.foracashconsiderationofRM2.00andthesettlementofliabilitiesofapproximatelyRM6.77million,ofwhichRM3.5millionhasbeensettledinyear2016.Thetransactionscompletedon30March2016.Uponthecompletion,Straits InternationalEducationGroupSdn.Bhd.hasbecomeanassociateofGUHCapitalSdn.Bhd.,whichisawholly-ownedsubsidiaryofGUHwhereasMilanDiamondSdn.Bhd.hasbecomeawholly-ownedsubsidiaryofGUHAssetHoldingsSdn.Bhd.,whichinturnawholly-ownedsubsidiaryofGUH.

Sustainability of Business

TheBoardofDirectorsofGUH(“theBoard”)alwaysacknowledgesthatmaintainingagoodbusinessisnotjustaboutachievingthedesiredfinancialbottomline,butalsobeingethicalandsustainable.Therefore,GUHGroupwillcontinuetoembracesustainabilityincarryingoutitsbusinessconductandoperations,impactontheenvironmentandsocietyitoperates.

More informationonGUH’s initiatives isdisclosed intheSustainabilityReportof theCompany’sAnnualReport2016.

Corporate Governance

In linewith theMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhadandtheMalaysianCodeonCorporateGovernance2012,theBoardfirmlybelievesthatgoodgovernanceenablestheGrouptoholdthetrustofitsstakeholders.Therefore,theBoardisalwaysmindfulofitsdutiesandwillcontinuetoupholdandfosterastrongcultureoncorporategovernanceastheBoardbelievesthatitistheplatformtosafeguardthebestinterestoftheCompanyanditsshareholders

whileensuringthattheinterestsofotherstakeholdersarenotcompromised.

More information inrelationtocorporategovernancecanbefoundintheCorporateGovernanceStatementoftheCompany’sAnnualReport2016.

Dividend

TheBoard iscommitted todelivering thebestvaluetotheshareholdersviaconsistentdividendpayments.In linewith this, theBoardhascontinuouslybeendeclaringdividendtoitsshareholdersovertheyearsinitscommitmenttoenhanceshareholders’returns.Forthefinancialyearended31December2016,theBoarddeclaredaninterimsingletierdividendof3.5senpershare.Thiswaspaidon28September2016 to theshareholderswhosenamesappearedintheRecordofDepositorsoftheCompanyatthecloseofbusinesson8September2016.

Related Party Transactions

TherelatedpartytransactionsoftheGrouparedisclosedinNote29oftheNotestotheFinancialStatementswhichalsosetout therecurrent relatedparty transactionsconductedduringtheyearinaccordancewiththemandateobtainedfromtheshareholdersatGUH’sAnnualGeneralMeetingheldon24May2016.Exceptasaforesaiddisclosed,thereisnoothermaterialcontractinvolvingthe interestof thedirectorsandmajorshareholdersduringtheperiod.

Outlook and Prospects

Moving intoyear2017, theCompanyhasadoptedacautiousapproachgiventhatmarketconditionsremainvolatile.Nevertheless,ElectronicDivisionoftheGroupanticipatesbetterresultsonpredictedsurgeinglobalmarketformajordomesticappliances,favorableproductmixand implementationofoperational improvementstrategies.Inaddition,PropertyDivisionforeseesnewpropertylaunches,flatgrowthindemandforelectricalproductsandbuildingmaterialscoupledwithhigherFFByieldinyear2017.UtilityDivisionexpectstoreturntotheblackonhigherrevenuerecognitioncoupledwithaggressivetenderingofnewandsizeablewaterprojectsinyear2017.Overall, theGroupexpects to remainpositiveandperformbetterintheyearahead.

Appreciation

TheBoardwouldliketotakethisopportunitytoexpressitsheartfeltthanksandappreciationtotheManagementteamandstafffortheirloyalty,hardworkandcommitmentindrivingtheCompanyforward.TheBoardalsorecordsthankstotheshareholders,customers,partners,bankers,businessassociatesandalltherespectedgovernmentauthoritiesfortheirinvaluablesupportandassistance,continuoustrustandunderstandingduringtheyear.

EXECUTIVECHAIRMAN’SSTATEMENT


14

15


MANAGEMENT’SDISCUSSIONANDANALYSIS

OnbehalfoftheBoardofDirectorsofGUHHoldingsBerhad(“GUH”or“theCompany”),Iampleased topresent theresultsandperformanceofGUHand itsGroupofCompaniesforthefinancialyearended31December2016.

Dato’ Kenneth H’ng Bak Tee DPNS, DSPN, PKT, PJM

CEO/ManagingDirector

16


2015

83.8%

0.3%

7.1%

0.6%

2.9%5.3%


Forthefinancialyearended31December2016,therewasanincreaseofRM29.7million inGrouprevenueofRM315.1millioncomparedtoRM285.4millionforyear2015.

ElectronicDivisionhadahighercontributionofRM264.7millionor84.0%ofGrouprevenue(year2015:RM239.3millionor83.8%).UtilityDivisionbroughtinRM25.7millionor8.2%ofGrouprevenue(year2015:RM20.3millionor7.1%)mainlycontributedbythewaterprojectsofitssubsidiaryknownasTeknoservEngineeringSdn.Bhd.

DespiteimprovedperformancebyElectronicandUtilityDivisionsoftheGroup,PropertyDivisionhaddroppedslightlyinrevenuetoRM14.8millionor4.7%ofGrouprevenue(year2015:RM15.0millionor5.3%).Thiswasaffectedbytheadverseeconomicenvironmentwhichcontinuedtopressurethedecreaseinthenumberofpropertyunitssold.Meanwhile,ElectricalDivisionmadeRM8.0millionor2.5%ofGrouprevenue(year2015:RM8.3millionor2.9%)mainlyduetolowersalesofelectricalproducts.

PlantationandInvestmentDivisionsrecordedRM1.4millionandRM0.5millionor0.4%and0.2%ofGrouprevenuerespectively.(year2015:RM1.7millionandRM0.8millionor0.6%and0.3%).


GUH Group Revenue By Segment

2016

84.0%

0.2%

8.2%

0.4%

2.5% 4.7%

Waterandwastewatertreatment

Unallocatednon-operatingsegmentsCultivationofoilpalm

SaleofelectricalappliancesManufactureofprintedcircuitboards

Propertydevelopment

17


Despitetoughbusinessenvironmentthroughoutyear2016,GUHGroupmanagedtomakeprofitbeforetaxofRM23.2millionwhichwasRM4.5millionhigherthanprofitbeforetaxofRM18.7millionrecordedinyear2015.TherewasanimprovementofRM8.8millioninprofitbeforetaxforElectronicDivisionmainlycontributedfromitstwosubsidiariesnamelyGUHCircuit Industry(PG)Sdn.Bhd.andGUHCircuit Industry(Suzhou)Co.,Ltd.ofRM7.2millionandRM1.4millionrespectively.ProfitbeforetaxforElectricalDivisionincreasedbyRM0.7millioncomparedtoyear2015mainlyduetohighergainonfairvalueadjustmentofinvestmentpropertiesofRM0.6millionandgainondisposalofinvestmentpropertiesofRM0.1millionforitssubsidiaryknownasGUHRealtySdn.Bhd.

Apartfromthat,therewasadeclineofRM0.2millioninlossbeforetaxforInvestmentDivisioncomparedtoyear2015mainlyduetofavorableforeignexchangeofRM0.7millionoffsetbyfairvaluelossoncontingentconsiderationfortheacquisitionofassociates,i.e.StraitsInternationalEducationGroupSdn.Bhd.(“SIEG”)ofRM0.4millionduringyear2016.

ThenegativevarianceofRM2.6millionincontributionsfromassociateswasduetoshareoflossfromCambodiaUtilitiesPte.Ltd.upontheexpirationofPowerPurchaseAgreementinMay2015andshareoflossfromSIEGofRM0.4million.Inaddition,UtilityDivisionsufferedafurtherlossofRM2.0millioncomparedtoyear2015mainlyduetoslowconstructionprogressfornewwaterprojectscoupledwithhigheradministrativeexpenses.Inthemeantime,PropertyDivisionrecordedalossbeforetaxofRM0.1millionagainstprofitbeforetaxofRM0.9millionforyear2015withlowerpropertyunitssold.ProfitbeforetaxforPlantationDivisionplungedbyRM0.2millioncomparedtoyear2015intandemwiththedropinrevenue.



GUH Group Profit Before Tax By Segment

2016 2015

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

(2,000)

Segments

19,619

875 68483

(1,317) (1,270)

(RM’000)

Segments

30,500

25,500

20,500

15,500

10,500

5,500

500

(4,500)

28,397

1,575482207

(3,274) (4,171)

(RM’000)

Waterandwastewatertreatment

Unallocatednon-operatingsegmentsCultivationofoilpalm

SaleofelectricalappliancesManufactureofprintedcircuitboards

Propertydevelopment

18



Electronic Division

Manufacturing of Printed Circuit Boards (PCBs)

GUH Circuit Industry (PG) Sdn. Bhd. (GUH PG)

TherevenueofGUHPGforyearended2016improvedsignificantlyoveryear2015,anindicativetrendthatthestrategiesoflongtermbusinesssustainabilitybyimprovingcapability,capacityandcustomerconfidenceborefruit.Strategiesweremappedandcarriedintoactionplansbycarefulanalysisofthemarketsituation,predictingfuturetrendsofendproductsandtomakefocusedinvestmentsincapitalassetsandknowledgedevelopmentof theemployeesintheidentifiedPCBdomain.Asaresult,therewere improvements indouble-sidedandmulti-layeredboardstechnicalcapabilitiesandsales.GUHPGrecordedasignificantimprovementinprofitbeforetaxfortheyearended2016comparedtoyear2015.

AsexternalkeyindicatorsofcontinuousimprovementsworthyofhighlightingwerereceivingtheToshibaBestServiceAwardandtheYamahaBestPerformanceAwardbothinMay2016.

GUHPG’sproductquality improvedsignificantly,customerauditspassedwithdistinctionandallQualityManagementSystemandEnvironmentalSystemauditspassedeffortlessly.CustomersvisitingGUHPGincreasedsignificantlyduetoitsmottoof“sellingasolution”ratherthanjustPCBs.

The financial performanceofGUHPG improvedsignificantly inboth revenueandprofitbefore taxcontributedbyManagement’s focuson improvingmanufacturingefficiency,customersconfidenceandwithcarefulanalysisofendproducts tounderstandcustomerstechnicalexpectationsbetter.In2016GUHPGmadeastrategicandsignificantCAPEXinvestmenttoupgradeitsmanufacturingcapability.GUHPGfurtherbudgetedforsubstantialCAPEXinvestment foryear2017tofurtherimproveonmanufacturingcapabilityaswellasstrategicsemi-automationinvestmentinsomekeyidentifiedprocesses.

TheconsumerpreferencetrendofmovingfromfamilyloungeTV,hometheater,Hi-Fisetstowardsindividualisedcarry-alongsmartphonesremainunabatedandthusGUHPGexpectsacontinueddeclineinPCBsforAudioandVisualproducts.Theproductsofair-conditioners,car-audio,homeappliancesandmusical instrumentswillcontinuetogrow.GUHPGisredirectingeffortsandstrategiesinitsmarketingaswellasthemanufacturingcapabilitiestowardsthisdomain.

Thepricesofrawmaterial,coppercladlaminates(“CCL”),oneofthemajormaterialusedformakingPCBshavebeenmovingupwards in2016due to thesupplyofcopperfoilbeingdivertedtomakingbatteriesforelectric

vehiclesandotherbatteryoperatedproducts.GUHPGcontinuouslynegotiateiswithcustomersforreasonablepriceincreaseinlinewithCCLpricehike.

AvailabilityofworkersandlabourcostincreasedhavebecomeanormandproblemsthateverymanufacturerfaceinMalaysia.TheMalaysiangovernmenthasfurtherincreasedtheminimumwagerulingtoRM1000inJuly2016fromtheRM900mandatedinJanuary2013,whichaddontheburdenofdirectlabourcost.Inthisdomain,GUHPGisembarkingonaprojectofsemi-automationof identifiedareastoreducerelianceonworkers forrepetitivetasks.

InDecember2016,BankNegaraMalaysiaimplementedtheFOREXruleof;

• 75%immediateconversionofUSDtoMYRduringpaymentbyoverseascustomers

• AllpaymentbetweenresidentcompaniesinMalaysiamustbeinMYR

ThisnewrulehasanimpactonUSDpricestoresidentcompanies.Nevertheless,GUHPGmanagedtonegotiateawin-winpaymentagreementwithitscustomers.

Despitethepresenceofunavoidablerisksfactorssuchashighlighted,theprospectsofGUHPGfor2017remainstableandsustainableanditexpectsimprovementsin2017over2016byimplementingactionstoenactthefollowingstrategies:

• Continue toenhancecustomersconfidence inquality,deliverylead-time,productivity,capabilityin lowvolumehighmixbusiness,by improvinginternaloperationalperformance.

• InthemarketingandsalesdomainGUHPGwillpursuenewcustomerswithproductsinhomeappliances,air-conditioners,car-audio,air-conditionersandmusicalinstruments.

19


• Anexpansionofexistingcustomerandnewcustomergroupsbypromotingcustomersconfidenceinthecapabilityinfinepitchandlinedesign,BGAdesign,impedancecontrol,carbonprinting,goldplatingandplugged-holedesigns.

• Concentrationofhighersalesmarginproductssuchasdouble-sidedandmulti-layeredPCBsandexpansionintheexportmarkettoreplacebusinesslostinthelocalMalaysianmarket.

• In2016,GUHPG’sinvestmentsinmachinerywilltakeontheapproachtosemi-automatewhereverpossible toposition itself into less relianceondirect labouraswellassecuringconsistency inmanufacturingefficiency.

GUH Circuit Industry (Suzhou) Co., Ltd. (GUH SZ)

aggressivepricestrategy,extensionoflongerpaymentterms,cheaper toolingcostandengineeringcost tocapturenewbusinessshareallocations.

AlthoughGUHSZ’s totalsales revenuedecreasedslightlyinyear2016itisconfidentthatthecompanywillbeabletosustainandbeprofitablein2017andbeyondtoitsmanufacturingoperationexcellence,goodqualityproductsandreputablemarketimage.

Goingforward,GUHSZwillcontinuouslydevelopproductsforcustomersinthenichemarketandselectionofmoreprofitablePCBapplications in thehomeappliancesandfanmotormarket.Thisnewbusinessexpansionwillgenerateadditionalsalesrevenuewithbetterprofitmarginwhilemaximizingtheutilisationofproductioncapacity.GUHSZwillcontinuetoupgradeitsproductioncapabilityanditsoperationexcellencetogaincustomersconfidenceandfuturebusinesssustainability.

GUHSZcontinueditsbrandingimageofmaintainingover75%ofJapanesebasedcustomersofyear2016totalsales revenue.Thiswillcontinue tocontributesignificantlyinthesustainabilityofcompany’sprofitabilityduetobetterpricingscenarioandbusinessstabilitytrendofitscustomerprofile.

TherevenueofGUHSZforyear2016wasslightlylowerthanyear2015andprofitbefore taxalsodecreasedslightlyinyear2016.Benchmarkingwithsimilarindustries,GUHSZremainsstrongandprofitable.

ThecontinuousincrementinproductioncostsattributedtoexternalfactorscoupledwithlabourshortageandthestringentChinagovernment’senvironmentregulationsweresomeoftheconstraintsthatcausedlessefficientandweakerPCBmanufacturerstosustainlossesandtoclosedowntheirmanufacturingoperationsormoveout fromChina toASEANregionssuchasThailandandVietnam.

However,GUHSZhasbeenabletoweatherthesituationwellbyundertakingvariousactionplanswhichincludecostreductionstrategiesinmanufacturingoperations,suppliermanagement,logisticandstringentbudgetarycontroltoremaincompetitive.

GUHSZexpectsthreats like increment inproductioncostscoupledwith labourcost, labourshortage, thestringentChinagovernment’senvironmentregulationstoworsenovertime.GUHSZwithforwardpreparationsandsustainabilityplanswillbravethroughanychallenges.

OtherchallengesincludestiffcompetitionfromsimilarwellmanagedlocalChinesePCBmanufacturerswiththeimprovementoftheirproductsqualitycoupledwiththeir

20



Property Division

GUH Properties Sdn. Bhd. (GUH Properties)GUH Land Sdn. Bhd. (GUH Land)GUH Development Sdn. Bhd. (GUH Development)GUH Realty Sdn. Bhd. (GUH Realty)Milan Diamond Sdn. Bhd. (Milan Diamond)

RevenueofGUHPropertiesinyear2016waslowerthanthepreviousyear.Slumpintheoilprice,depreciationofMalaysianRinggit,andtighteningofcreditrulesforhousingloanwereamongthemajorfactorstowardtheweakpropertymarket.Asaresult,theprofitbeforetaxwasaffectedaccordingly.

Fortheyearunderreview,GUHPropertiesembarkedonhigh-end landedguardedresidentialdevelopmentsituatedonhighgroundwithsurroundingshoppingmalls,healthcarecentresandcommercialhubs.Theconstructionoftheentrancestatementandshowvillaareonthevergeofcompletion.

GUHDevelopmentiscurrentlyplanningtheoverallmasterdevelopmentplanforthe46acresdevelopmentlandatSimpangAmpat,PulauPinang.Itwillbeanintegrateddevelopmentwithlifestyleshops,housingprojectsandcommercialhub.Launcheswillbescheduled in thenearfuture.

Inyear2016,GUHRealtycompletedthepurchaseof2piecesoflandatSungaiBakap,PulauPinang.Withcombined landareaofapproximately17acres, thedevelopmentisatthestageofobtainingapprovalsfromtherelevantauthoritiestodevelop into light industrialarea.

BesidelandacquisitionatSungaiBakap,MilanDiamond,thewhollyownedsubsidiaryofGUHAssetHoldingsSdn.Bhd.,hasatthesameyearenteredintoalandacquisitionagreementtoacquire3acresoflandatRawang,SelangortoerectinternationalschooltogetherwithbuildingandthelanditwillbeleasedtoStraitsInternationalEducationGroup(SIEG)onlongtermbasis.

Basedonthecurrentchallengingeconomicenvironmentandrisingcostofliving,itisanticipatedthatsaleswillcontinuetoslowdown.PropertyDivisionhasintensivelydevelopedmoreaggressivemarketingstrategytomarketitsproductsandtocaterforstiffercompetitionamongpropertyplayers.

Movingforward,PropertyDivisionwillembarkonintegratedcommercialprojectwithretailoutlets, recreationandleisurefacilities,foodandbeverageoutlets,shopsandoffices.DuetolackofintegratedcommercialprojectsintheareaofTamanBukitKepayang,Serembananditsstrategiclocation,thedevelopmentwillbeingreatdemand.

PropertyDivisionwilllaunchthelightindustrialprojectinSungaiBakap,PulauPinangandtoconstruct theinternationalschoolbuildingsinRawang,Selangoroncetherelevantauthorityapprovalhavebeenobtained.

With the introductionof theabovediversityrangeofpropertydevelopment,differentmarketneedsanddemandshavebeencaptured.PropertyDivisionhasstrategiseditspositiontodiversifyitssourceofincomeandprofitfromdifferentrangeofpropertydevelopmentproducts.

ThePropertyDivisionwillcontinuetoscoutforlandtofurther increase its landbankandtocater for futuregrowth.

20

21



Electrical Division

GUH Electrical (BW) Sdn. Bhd. (GUH BW)

GUHBWisprincipallyengagedinthetradingofvariouselectricalgoodsandconstructionmaterialssuchastiles,paintsandsanitaryware.

GUHBWclosedadifficultyearonagoodnote.Despiteachallengingmarketenvironmentdue todifficultmacroeconomicconditions,GUHBWgrewnetprofitbymorethan50%,fromRM0.1milliontoRM0.2million.Thegrowthcamefrombothexistingproductsandnewproductsrangewhichcontributedstronglytoitsprofitmargin.Duringtheyear,thecompanywideneditsrangeofproductsunderthehouse-brand“LEB”,tomaximizemargin,inadditiontothecurrentproductrangeoffittings,ballastsandindustrialfan.TheLEBbrandhasexpandedtoincludeLEDtubeandflexiblecables.

2016wasachallengingyearwithdepreciationoftheMalaysianRinggitandweakerprivateconsumption,whichledtoayearofreduceddemandandunpredictability.However,GUHBWisnowbetterpositionedforprofitgrowthinyear2017asmarketconditionsstabilize.

Asanestablishedtradinghouse,havingbeen in thebusinessformorethan45years,thedivisionconstantlystrivestoserveitsexistingcustomersbetterbymaintainingreliableandexcellentservice,andat thesametime,attractingthebestpossiblenewcustomerswithitsfairmarketprices.

GUHBWcontinuestobeoneofthetopdistributorsofestablishedbrandsofelectrical installationmaterialssuchasSchneiderandwillcontinue tosourceandengageforneworotherestablishedproductsthatwillcontributetoitsrevenue.

GUHBWmaintainsanoptimistic outlook for thedivision.2016wasayearofmacroeconomicdifficultyandchallengingwithunpredictablemarkets.GUHBWenters2017withengagedandcommittedteamtofocusonrealizingoperationalefficienciestodriveprofitabilitygrowth.

Plantation Division

GUH Plantations Sdn. Bhd. (GUH Plantations)

Prolongeddryweatherinsecondhalfofyear2015andfirsthalfofyear2016causedtheoutputoffreshfruitsbunchestodeclinewhichaffectedanddampenedthecrudepalmoilproduction.Productionofcrudepalmoildroppedfrom19.96milliontonnesinyear2015to17.31million tonnes inyear2016.Thedeclinewasapproximately13.28%.

Palmoilstocksclosedat1.77milliontonnesinDecember2016,lowerby23.38%comparedto2.31milliontonnesrecordedinDecember2015.Oneofthereasonsforthedeclineinstockswasduetolowerproduction.Inyear2016,thepriceofalloilpalmproductswashigherduetolowfreshfruitsbunchesproductionfurtherimprovedpalmoilpricesandweakerMalaysianRinggitagainstUSDollar.CrudePlamOilwastradedatRM2,652.00per

tonneinyear2016comparedtoRM2,153.50pertonneinyear2015.CrudePalmOilpricereachedRM3,200.00pertonneinDecember2016.

HighCrudePalmOilpricehasnarrowedpalm’sdiscounttotherivaledibleoil,promptingprice-sensitivebuyerstoswitchtosoyinstead.

ThePlantation IndustriesandCommodities (MPIC)Ministryisoptimisticofachievinghigherpalmoilexportrevenueinyear2017onthebackofbetterpricesseeninthecurrentcommodity.

GUHPlantationsexpectstoachievehigheroutput inyear2017comparedtoyear2016duetobetterrainfallinthepast.Nonetheless,theincreaseisnotsignificantaspalmsrequirelongerrecoveryperiod.

21

22



Utility Division

Water & Wastewater Solutions

Teknoserv Engineering Sdn. Bhd. (Teknoserv)

TherevenueincreasedtoRM25.7millioninyear2016fromRM20.3millioninyear2015.Thegrowthinrevenuewasdue to recognitionofsales frommaturationofongoingprojects.

Inadditiontotheabove,Teknoservdemonstrateditselfasanexperiencedandestablishedplayerinthewaterandsewerageindustrybysuccessfullysecuringa50MLDwatertreatmentplantprojectinPerakinJanuary2016andthreenewseweragetreatmentplantprojectsinNegeriSembilanandPenangrespectively in thesecondhalfofyear2016.

Teknoservhadalsosuccessfullycommissionedandhandedovera25MGDwatertreatmentplantinMarch2016whichwasanintegralpartoftheprestigiousMudaRiverSchemePhase4APackage12ProjectinPenangandontracktocompleteanothertwowatertreatmentplantprojectsbyendofyear2017.

Inviewoftheintensecompetitionamongserviceproviders,playersapttooutbideachotherinordertosecuremarketshare.Followingthisandtheneedtoremainviable,Teknoservoffersattractivepackagestosecurecontract

especiallyduringthiseconomicdownturn.Inordertoremaincompetitive,thecompanyhasestablishedstrongnetworkingwithsupplychainandsub-contractorsinordertoachievecompetitivepricing.Themanagementstaffalwaysmaintaingoodrapportwithconsultants,clientsandrelevantauthoritiestoensurethesecuredprojectsareexecutedsmoothly.

Priceescalationinconstructionmaterialandequipment,andweakeningofMalaysianRinggitduringprocurementstageforimportedequipmentsaresomeofthemajorthreatstothecompany.Inordertomitigatethis,theteamconsistenlychecksformaterialsandequipmentpricesandvalidityonaregularbasis.Theteamwillsecurelongerpricevalidityperiodfromthesuppliersbeforetakingupanynewcontract.

Teknoserviswellplacedtoparticipateandclinchmoreprojects in thewaterandseweragemarkets, locallyandoverseasbyconsistentlyreviewing itsbusinessdevelopmentstrategiesandeffortsinlinewithmarketopportunitiesanddevelopments inorder to furtherenhanceitsorderbookandsecureitsbusinessportfoliointheregion.

Financial Position of GUH Group

GUHGroup’stotalassetsasat31December2016wasRM663.5millionagainstRM614.4millioninyear2015whileequityattributabletoownersoftheCompanygrewtoRM524.8millionfromRM517.9million.NetassetspershareattributabletoownersoftheCompanyincreasedtoRM1.99persharefromRM1.96persharelastyear.TotalcashoftheGroupwasRM110.6millionasat31December2016comparedtoRM136.0millionasat31December2015.


23


GUHPropertiesSdn.Bhd.(44057-D)

GUHPlantationsSdn.Bhd.(76386-W)

GUHAssetHoldingsSdn.Bhd.(191588-V)

GUHInternational(HK)Pte.Ltd.

GUHWaterHoldingsSdn.Bhd.(945131-T)

GUHCapitalSdn.Bhd.(1163923-H)

CambodiaUtilitiesPte.Ltd.

GUHElectrical(BW)Sdn.Bhd.(9143-K)

TeknoservEngineeringSdn.Bhd.(337348-H)

StraitsInternationalEducationGroupSdn.Bhd.(916080-M)

GUHElectrical(KL)Sdn.Bhd.(84822-P)

GUHWater(Jiangsu)Pte.Ltd.

GUHElectricalAppliancesSdn.Bhd.(103524-K)

MalaysianMechanicalEngineeringIndustriesSdn.Bhd.(45674-U)

TecnovacMarketingSdn.Bhd.(333591-H)

GUHRealtySdn.Bhd.(48565-M)

MilanDiamondSdn.Bhd.(1098744-D)

JeladanSdn.Bhd.(195266-U)

GUHLandSdn.Bhd.(1091980-T)GUHDevelopmentSdn.Bhd.(188437-M)

100% GUHElectronicHoldingsSdn.Bhd.(165866-A)100% GUHCircuitIndustry(PG)Sdn.Bhd.(231743-T)

100% GUHCircuitIndustry(Suzhou)Co.,Ltd.

100% GrandUnited(BVI)Co.Ltd.

100% GrandCircuitIndustry(Philippines)Inc.

GUH HOLDINGS BERHAD(4104-W)

ElectronicDivision Property&PlantationDivision UtilityDivision

CORPORATESTRUCTURE

24


FINANCIALHIGHLIGHTS

PROFIT BEFORE TAX (RM’000) PROFIT FOR THE FINANCIAL YEAR ATTRIBUTABLE TO OWNERS OF

THE COMPANY (RM’000)

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (RM’000)

TOTAL ASSETS (RM’000)

REVENUE (RM’000) EBITDA (RM’000)320,000 80,000

300,000 60,000

280,000 40,000

260,000 20,000

240,000 02012 2013 2014 2015 2016

YEAR2012 2013 2014 2015 2016

YEAR

50,000 40,000

40,00035,000

30,000

30,000

20,000 20,000

25,000

10,00015,000

10,000

0 50002012 2013 2014 2015 2016

YEAR2012 2013 2014 2015 2016

YEAR

2012 2013 2014 2015 2016

YEAR2012 2013 2014 2015 2016

YEAR

600,000 600,000

400,000 400,000

200,000 200,000

0 0

280,386

46,897

286,569

38,606

299,379

33,637

285,373

18,674

315,120

23,216

59,308

36,111

52,066

29,987

49,687

20,513

32,882

9,931

37,379

18,878

491,225

563,698 569,159

614,439

663,456

422,708

490,079 494,272517,940 524,795

25


FINANCIALHIGHLIGHTS

RETURN ON TOTAL EQUITY (%) BASIC EARNINGS PER SHARE (SEN)

NET ASSETS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (RM)

LOANS AND BORROWINGS (RM’000)

GROSS DIVIDEND PER SHARE (SEN)

GEARING RATIO (%)

# Adjustedretrospectivelytoreflectthechangesinthenumberofsharesasaresultof1for2BonusIssueinNovember2013.

14.00

3.00

14.00

12.00

2.00

12.00

6.00

10.00

1.00

10.00

5.00

8.00

0.00

8.00

4.00

6.00 6.00

3.00

4.00 4.00

2.00

2.00 2.00

1.00

0.00 0.00

0.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

2012

2012

2012

2013

2013

2013

2014

2014

2014

2015

2015

2015

2016

2016

2016

YEAR

YEAR

YEAR

2012 2013 2014 2015 2016

YEAR

2012 2013 2014 2015 2016

YEAR

2012 2013 2014 2015 2016

YEAR

20,000

15,000

10,000

5,000

0

8.52

6.24

4.15

1.92

3.60

13.23#

11.34

7.75

3.76

7.16

2.40

1.82 1.87 1.96 1.99

6.00 6.00

5.00 5.00

3.50

117 136 0 0

16,278

0.03 0.03 0 0

3.10

Documents

Annual Report 2016 GUH Holdings Berhad - malaysiastock.biz GUH Holdings Berhad is a Malaysian-based corporation with businesses in ... Cable Industry Berhad and Universal ... is involved