The annual report provides an overview of LBS Bina Group Berhad's corporate structure and leadership, financial highlights for 2012, operations and projects, as well as corporate social responsibility initiatives. The report introduces the board of directors and profiles the chairman, Dato' Seri Lim Bock Seng, who has over 30 years of experience in property development. It also outlines the group's vision to be an internationally recognized developer that inspires community living through exceptional projects.
2. Our
Vision
To be an internationally recognised developer,
building and inspiring delightful spaces that
enhance community living.
Our
Mission
Toconsistentlydeliverexceptionalperformance
through progressive creations, realising value
to all stakeholders and enriching communities
at large.
Cover
Rationale
This year annual report’s theme is “Living The Life with LBS”,
which reflects our determined efforts to turn our developments
into your home. With each project that we embark on, we pay
careful attention to every details, ensuring that you have the
best of what we can offer. Letting you live your life, the way you
want and how you always imagined it to be.
3. Content
(02) Corporate Structure
(07) Corporate Information
(09) Awards and Accolades
(11) Living The Life With LBS
(12) Board of Directors
(14) Directors’ Profile
(31) Group’s Financial Highlights
(34) Chairman’s Statement
(40) Review of Operations
(49) Portfolio 2012
(61) Corporate Social Responsibility
(68) Corporate Calendar
(72) Corporate Governance Statement
(90) Audit Committee Report
(95) Statement on Risk Management and Internal Control
(97) Recurrent Related Party Transactions
(101) Financial Statements
(224) List of Major Properties
(225) Analysis of Shareholdings / Warrants Holdings
(232) Notice of Thirteenth Annual General Meeting
FORM OF PROXY
4. 2 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Corporate
Structureas at 22 May 2013
BVI: The British Virgin Islands
HK: Hong Kong
PRC: The People's Republic of China
100%
Lamdeal Consolidated
Development Limited
(HK)
60%
Zhuhai International Circuit
Consolidated Development
Limited
(PRC)
100%
Zhuhai International Circuit
Consolidated Development
(HK) Limited
(HK)
100%
Lamdeal Golf & Country
Club Limited
(HK)
60%
Zhuhai International Circuit
Golf & Country Club Limited
(PRC)
100%
Lakewood Golf &
Country Club
(HK) Limited
(HK)
100%
Intellplace Holdings Limited
(BVI)
100%
Dragon Hill Corporation Limited
(HK)
100%
Linkway Property Co., Ltd
(BVI)
100%
LBS Bina Holdings Sdn Bhd
100% Adil Restu Sdn Bhd
100% Angsana Abadi Sdn Bhd
100% Astana Modal (M) Sdn Bhd
100% Azam Perspektif Sdn Bhd
100% Cergas Asal (M) Sdn Bhd
100% Equal Alliance Sdn Bhd
100% Equal Sign Sdn Bhd
100% Focal Remedy Sdn Bhd
100% Galeri Cekap Sdn Bhd
100% Generasi Nostalgia Sdn Bhd
100% Inderaloka Impian Sdn Bhd
100% Intellview Sdn Bhd
100% Jatidiri Gigih Sdn Bhd
100% Jauhari Unggul Sdn Bhd
100% Kalimah Jaya Sdn Bhd
81% Utuh Sejagat Sdn Bhd
100% Kilatlima Sdn Bhd
100% LBS Capital Sdn Bhd
100% LBS Properties Sdn Bhd
100% Maju Kamabisa Sdn Bhd
100% Misi Aktif Sdn Bhd
100% MITC Sdn Bhd
51% MITC Engineering Sdn Bhd
51% Prisma Kasturi Sdn Bhd
100% Pelangi Homes Sdn Bhd
100% Saga Megah Sdn Bhd
100% Seribu Baiduri Sdn Bhd
5. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 3
Corporate
Structure
as at 22 May 2013
100%
Maju Kepunyaan Sdn Bhd
100%
LBS Landscape Sdn Bhd
60%
SPJ Construction Sdn Bhd
100%
Saga Serata Sdn Bhd
51% Puncak Gama Sdn Bhd
51% Wirama Era Baru Sdn Bhd
40% Bayu Cergas Sdn Bhd
40% Tarikan Puncak Sdn Bhd
35% Usaha Semarak Sdn Bhd
30% Pristine Sunrise (M) Sdn Bhd
30% Sambungan Aktif Sdn Bhd
30% Warnasari Idaman Sdn Bhd
100% Sinaran Restu Sdn Bhd
100% Juaraplex Sdn Bhd
100% Kenderong Sdn Bhd
100% Keranji Bina Sdn Bhd
100% Lingkaran Semangat
Sdn Bhd
100% Pacific Grant Sdn Bhd
100% Silibin Jaya Sdn Bhd
55% Nilam Mewah Sdn Bhd
30% Iringan Kejora Sdn Bhd
100% Utuh Aspirasi Sdn Bhd
90% Sepadan Maju Sdn Bhd
80% Prima Utuh Sdn Bhd
71% Generasi Simbolik Sdn Bhd
70% Alunan Prestasi Sdn Bhd
70% Fokus Awana Sdn Bhd
70% Intelstyle Sdn Bhd
70% Johan Anggun Sdn Bhd
70% LBS Maju Sdn Bhd
58% Casa Inspirasi Sdn Bhd
51% Dataran Enigma Sdn Bhd
51% Mayang Jelatek Sdn Bhd
51% Pembangunan Primer Sdn Bhd
60%
Healthguard Medicare
Sdn Bhd
9. Corporate
Informationas at 22 May 2013
BOARD OF DIRECTORS
Dato’ Seri Lim Bock Seng
SSSA, DPMS, AMN
(Chairman)
Dato’ Kamaruddin bin Abdul Ghani
DIMP, SMP, AMN
(Vice Chairman and Senior
Independent Non-Executive Director)
Dato’ Lim Hock San
DSSA, JP
(Managing Director)
Datuk Lim Hock Guan
DMSM, PJK, JP
(Executive Director)
Mej (K) Dato’ Lim Hock Sing
DIMP, JP
(Executive Director)
Datuk Lim Hock Seong
DMSM
(Executive Director)
Chia Lok Yuen
(Executive Director)
Lim Mooi Pang
(Executive Director)
Tan Sri Dato’ Seri Utama (Dr) Haji Abu
Hassan bin Haji Omar
PSM, SPMS, SMT, PIS, FCILT, FMIP
(Independent Non-Executive Director)
Maj Jen Dato’ Mohamed Isa bin Che
Kak (B)
JSD, KMN, PPT, SMP, DSDK, JMN,
DPTS, PSAT
(Independent Non-Executive Director)
Dato’ Wong Woon Yow
DSSA
(Independent Non-Executive Director)
Mohd Fazil bin Shafie
(Independent Non-Executive Director)
Kong Sau Kian
(Independent Non-Executive Director)
Lim Tong Lee
(Appointed w.e.f. 22 May 2013)
(Independent Non-Executive Director)
AUDIT COMMITTEE
Dato’ Kamaruddin bin Abdul Ghani
(Chairman)
Maj Jen Dato’ Mohamed Isa bin Che
Kak (B)
Dato’ Wong Woon Yow
Kong Sau Kian
NOMINATION AND
REMUNERATION COMMITTEE
Kong Sau Kian (Chairman)
Dato’ Kamaruddin bin Abdul Ghani
Dato’ Lim Hock San
Datuk Lim Hock Guan
Tan Sri Dato’ Seri Utama (Dr) Haji Abu
Hassan bin Haji Omar
Maj Jen Dato’ Mohamed Isa bin Che
Kak (B)
ESOS COMMITTEE
Maj Jen Dato’ Mohamed Isa bin Che
Kak (B) (Chairman)
Datuk Lim Hock Guan
Chia Lok Yuen
Mohd Fazil bin Shafie
Kong Sau Kian
RISK MANAGEMENT COMMITTEE
Dato’ Lim Hock San (Chairman)
Datuk Lim Hock Guan
Lim Mooi Pang
Chia Lok Yuen
Chang Yee Khim
Chew Wee Seong
Yeoh Keong Hoong
COMPANY SECRETARIES
Lee Ching Ching
Phang Ai Tee
REGISTERED OFFICE
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
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 7
10. Corporate
Information
as at 22 May 2013
BUSINESS ADDRESSES
HEAD OFFICE
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 ENGINEERING SDN BHD
H-7 & I-7 Sunway PJ@51A
Jalan SS9A/19 Section 51A
47300 Petaling Jaya
Selangor Darul Ehsan
Malaysia
T + 603 7874 5888
F + 603 7874 5889
MITC SDN BHD
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
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
B-G-10 & B-G-12 Block B
Jalan Royal Lily 1 Taman Royal Lily
39000 Tanah Rata 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 Services Sdn Bhd
(118401-V)
Level 17 The Gardens North Tower
Mid Valley City
Lingkaran Syed Putra
59200 Kuala Lumpur
Malaysia
T + 603 2264 3883
F + 603 2282 1886
SALES OFFICES & GALLERIES
D' Island RESIDENCE
No. 3, Jalan Timur 9
D' Island Residence
47130 Puchong
Selangor Darul Ehsan
Malaysia
T + 6011 1233 0899 / 0877
BANDAR SAUJANA PUTRA
No. 2 & 6, Jalan SPU 1
Bandar Saujana Putra
42610 Jenjarom
Kuala Langat
Selangor Darul Ehsan
Malaysia
T + 6011 1233 0566 / 0577 / 0655
SOLICITORS
Cheah Poh Gek & Associates
Manjit Singh Sachdev, Mohammad
Radzi & Partners
Rashid Asari & Co.
Steven Tai, Wong & Partners
AUDITOR
UHY
PRINCIPAL BANKERS / FINANCIERS
Affin Bank Berhad
AmBank (M) Berhad
Bank Kerjasama Rakyat Malaysia Berhad
CIMB Bank Berhad
Export-Import Bank of Malaysia Berhad
Kuwait Finance House (Malaysia) Berhad
Malaysia Building Society Berhad
Public Bank Berhad
United Overseas Bank (Malaysia) Berhad
STOCK EXCHANGE LISTING
Main Market,
Bursa Malaysia Securities Berhad
since 30 January 2002
Stock Code : 5698
Stock Name : LBS
Sector : Properties
WEBSITE
WWW.LBS.COM.MY
EMAIL
cs@lbs.com.my
8 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
11. Awards And
Accolades
2012
2013
2011
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 9
1. Asia Pacific Property Award
5 Stars Best Interior Design Show Home
Malaysia (Balvia @ D' Island Residence)
2. Asia Pacific Property Award
Highly Commended: Development Multiple
Units Malaysia (Apicalia @ D' Island Residence)
3. Asia Pacific Property Award
Highly Commended: Development Marketing
Malaysia (D' Island Residence)
4. Marketing Excellence Award 2013
Bronze winner of Excellence In Public
Relations: Internal/Employee Communications
5. Marketing Excellence Award 2013
Bronze winner of Excellence In Product/
Packaging Design: Cameron Golden Hills “The
Way Life Should Be”
6. Marketing Excellence Award 2013
Finalist of Excellence In CRM and Loyalty
Marketing
1. Asia Pacific Entrepreneur Award (APEA)
Entrepreneur Of The Year 2012: Dato’ Lim
Hock San
1. SME Recognition Award 2011
Platinum Entrepreneur Award: Dato’ Lim
Hock San
2. BCI Asia Top 10 Developers 2011 Award
13. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 11
— In LBS,
we strike to deliver
inspirational space
where people call it home.
LBS has homes for every stage of your life which will 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-focussed 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
today’s 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. We’ve refined our processes
to ensure our products deliver environment that meets the
needs of every generation and community and ensure business
are handled effortlessly with all LBS customers - in terms
of property design, township planning and development,
customer service.
In LBS,
we don't just build houses,
we create living habitats of the future.
Living The Life
With LBS
14. 12 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
1
8
2
13
3
4
14
Board of
Directors
15. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 13
6
7
9
11
10
12
5
Board of
Directors
16. 14 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
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 30 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 Dato’ Lim Hock
San (Managing Director), Datuk Lim
Hock Guan (Executive Director), Mej
(K) Dato’ Lim Hock Sing (Executive
Director), Datuk Lim Hock Seong
(Executive Director) and Ms. Lim Mooi
Pang (Executive Director). Dato’ Seri
Lim has no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
DATO’ SERI LIM BOCK SENG
Chairman
Age 82
Malaysian
(Non-Independant Non-Executive Director)
Directors’
Profile
17. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 15
Dato’ Kamaruddin joined the Board
of Directors of LBGB on 6 December
2001. Dato’ Kamaruddin is a consultant
in equestrian. As a consultant, he
has played a major role in providing
valuable opinion during the phases of
designing and building of Bukit Kiara
Resort and the Putrajaya Equestrian
Park.
Dato’ Kamaruddin is also a sportsman
that actively involved in the equestrian
sport. He represented Malaysia in
equestrian and polo competitions and
won numerous prizes. With glorious
of victory, Dato’ Kamaruddin had
successfully became the gold medallist
for Kuala Lumpur SEA Game and also
in the World Endurance Champion,
both in year 2001. On the other hand,
he also held committee positions in
various equestrian and polo clubs.
Mainly, he was founder member and
the past president of the Equestrian
Association of Malaysia and founder
member of Malaysian Endurance
Riding Society. He was also the
organising committee of the World
Equestrian Endurance Championship
in 2008. He is the honorary member
of Royal Selangor Polo Club and The
Equestrian Association of Malaysia. He
is also an honorary life member of Bukit
Kiara Equestrian Club.
He is the Chairman of Audit Committee
and member of Nomination and
Remuneration Committee in LBGB.
He does not have any family
relationship with any Director and/or
Major Shareholder of the Company.
He has no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
DATO' KAMARUDDIN BIN ABDUL GHANI
Vice Chairman
Age 68
Malaysian
(Senior Independent Non-Executive Director)
Directors’
Profile
18. Dato’ Lim joined LBS in 1982 and
became the Managing Director of LBS
in 1992. On 6 December 2001, Dato’
Lim was appointed as the Managing
Director of LBGB. He was graduated
with First Class Honours in Civil
Engineering from the University of
Wales, United Kingdom in 1982, and
Dato’ Lim won the second prize in the
British Steel Corporation Competition
for Design in Hollow Steel Section in
the same year.
Dato’ Lim’s excellent business
foresights, technical expertise and 30
years of management experience have
well positioned him as the Key Leader.
Under his leadership, LBGB and its
subsidiaries (“Group”) have grown and
developed as one of the major players
in property development. Dato’ Lim
was the recipient of the inaugural The
Platinum Entrepreneur Award by SMI
Association of Malaysia in 2011 and the
prestigious Entrepreneur of the Year
2012 by Asia Pacific Entrepreneurship
Awards (APEA) for his outstanding
entrepreneurship, leadership and
achievements in raising the profile
of the Company in the country and
overseas.
Dato’ Lim is also very active in
community works of various charitable
organisations. Presently, Dato’ Lim
is the Chairman of the Board of
Governors of SMJK Katholik, and
SJK (C) Sungai Way, the President
of Persatuan Hokkien Seri Setia, the
President of Selangor Petaling Business
& Industry Association, Vice President
of the Ann Khoe Association, Selangor
& Wilayah Persekutuan, the Vice
President of Federation of Hokkien
Associations of Malaysia, the Deputy
President of Gabungan Persatuan Cina
Petaling Jaya, Selangor, the President
of Malaysia-Guangdong Chamber of
Investment Promotion, the President
of Malaysia Chamber of Commerce
in China-Guangdong, Committee
Member of China Chamber of
International Commerce and member
of Zhuhai Municipal People’s Political
Consultative Conference (Zhuhai
CPPCC), China.
Besides sitting on the Board of several
subsidiary companies of the Group,
Dato’ Lim is the Chairman of Risk
Management Committee and member
of Nomination and Remuneration
Committee in LBGB.
He is the eldest son of Dato’ Seri Lim
Bock Seng (Chairman) and brother
of Datuk Lim Hock Guan (Executive
Director), Mej (K) Dato’ Lim Hock Sing
(Executive Director), Datuk Lim Hock
Seong (Executive Director) and Ms. Lim
Mooi Pang (Executive Director). Dato’
Lim has no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
DATO’ LIM HOCK SAN
Managing Director
Age 55
Malaysian
(Non-Independant Executive Director)
16 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Directors’
Profile
19. Datuk 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 Lim
Hock Guan started his career as a Civil
Engineer upon his graduation.
Datuk 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
Group’s projects in Klang Valley and
he is one of the major driving forces
behind the LBS Group’s successful
implementation of the projects in the
Klang Valley.
Datuk Lim Hock Guan also sits on
the Board of several subsidiary
companies of the Group. He is also
active in community works and has
involved in several non-profit-making
organisations. He is the 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.
He is member of Risk Management
Committee, Nomination and
Remuneration Committee as well as
ESOS Committee in LBGB.
He is the son of Dato’ Seri Lim Bock
Seng (Chairman) and brother of Dato’
Lim Hock San (Managing Director),
Mej (K) Dato’ Lim Hock Sing (Executive
Director), Datuk Lim Hock Seong
(Executive Director) and Ms. Lim Mooi
Pang (Executive Director). Datuk Lim
Hock Guan has no conflict of interests
with the Company and he has no
convictions for any offences within the
past 10 years.
DATUK LIM HOCK GUAN
Executive Director
Age 51
Malaysian
(Non-Independent Executive Director)
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 17
Directors’
Profile
20. 18 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Mej (K) Dato’ Lim Hock Sing was
appointed as Executive Director of
LBGB on 6 December 2001. Upon
graduating from Eastern Washington
University, USA in 1989, with a Bachelor
of Arts Degree in Accountancy, Mej
(K) Dato’ Lim Hock Sing has practiced
his trade as an audit supervisor at
Khoo & Co., a public accounting firm.
He was later absorbed into LBS and
has been a fulltime Director since
1991, overseeing all of LBS Group’s
projects in Pahang State, particularly in
Cameron Highlands.
With his accountancy background
and over 20 years of experience in
property development, Mej (K) Dato’
Lim Hock Sing has been providing
invaluable professional expertise for
LBGB in areas of finance, marketing
and property evaluation. He is also sits
on the Board of several subsidiaries of
the Group.
Apart from his corporate involvement
in the industry, Mej (K) Dato’ Lim Hock
Sing is also known for his community
work. His exceeding reputation has
been acknowledged by the Youth
Group of Kuala Lumpur Lim Clansmen
Association, which he was elected
as a leader. He is also an Executive
Committee Member of the Young
Entrepreneur’s Association of Malaysia
(PUMM) since the year 2002 and
an active member of the Hokkien
Association of Sungai Way, Sungai Way
Old Boys Association and Persatuan
Warga Cinta Negara Malaysia
(PENCINTA). Beginning from 2012, Mej
(K) Dato’ Lim Hock Sing also sits in the
Board of Trustees for Sultan Ahmad
Shah Environment Trust (SASET), a
non-profit organisation.
Mej (K) Dato’ Lim Hock Sing was
awarded by K.D.Y.T.M. Tengku Mahkota
Pahang Tengku Abdullah Al-Haj Ibni
Sultan Haji Ahmad Shah Al-Musta’in
Billah the Honorary Major In The
Reserve Army (Rej 505 Askar Wataniah)
on 24th June 2012.
Mej (K) Dato’ Lim Hock Sing is the
third son of Dato’ Seri Lim Bock Seng
(Chairman), and a brother of Dato’ Lim
Hock San (Managing Director), Datuk
Lim Hock Guan (Executive Director),
Datuk Lim Hock Seong (Executive
Director) and Ms. Lim Mooi Pang
(Executive Director). Mej (K) Dato’ Lim
Hock Sing has no conflict of interest
with the Company and is free from
convictions of any offences within the
past 10 years.
MEJ (K) DATO’ LIM HOCK SING
Executive Director
Age 50
Malaysian
(Non-Independant Executive Director)
Directors’
Profile
21. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 19
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.
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 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.
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 Dato’
Lim Hock San (Managing Director),
Datuk Lim Hock Guan (Executive
Director), Mej (K) Dato’ Lim Hock Sing
(Executive Director) and Ms. Lim Mooi
Pang (Executive Director). Datuk Lim
Hock Seong has no conflict of interest
with the Company and he has no
convictions for any offences within the
past 10 years.
DATUK LIM HOCK SEONG
Executive Director
Age 48
Malaysian
(Non-Independent Executive Director)
Directors’
Profile
22. 20 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Chia Lok Yuen was appointed as a
Director of LBGB on 6 December 2001
andwaspromotedtoExecutiveDirector
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.
Chia Lok Yuen 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.
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 responsible for LBS Group’s
corporate functions including IT,
Treasury, Investor Relations, Legal,
Credit & Property Management and
Secretarial & Corporate Affairs.
Chia Lok Yuen 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.
He has no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
CHIA LOK YUEN
Executive Director
Age 54
Malaysian
(Non-Independant Executive Director)
Directors’
Profile
23. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 21
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.
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, Ms. Lim
was the Senior General Manager of the
Overseas Operating Division where
she oversaw and managed LBS Group’s
investments in Zhuhai, China. She
continues to be a director of Zhuhai
International Circuit Golf & Country
Club Limited and Zhuhai International
Circuit Consolidated Development
Limited. She has also assumed the
position of Vice-Chairman at Zhuhai
International Circuit Ltd.
She is currently responsible for LBS
Group’s corporate functions in Accounts
and Finance, Human Resource and
Administration, Purchasing and Rental,
Sales and Marketing Communication.
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.
Lim Mooi Pang is the daughter of Dato’
Seri Lim Bock Seng (Chairman), sister
of Dato’ Lim Hock San (Managing
Director), Datuk Lim Hock Guan
(Executive Director), Mej (K) Dato’
Lim Hock Sing (Executive Director)
and Datuk Lim Hock Seong (Executive
Director). She has no conflict of
interests with the Company and she
has no convictions for any offences
within the past 10 years.
LIM MOOI PANG
Executive Director
Age 46
Malaysian
(Non-Independent Executive Director)
Directors’
Profile
24. 22 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Tan Sri Dato’ Seri Utama (Dr) Haji Abu
Hassan bin Haji Omar, who joined
the Board of Directors of LBGB on
20 August 2004, has about forty-
one (41) years of experience in the
civil and public services. He holds
an Honours Degree in Geography as
well as a Master Degree in Regional
Development from the University
of Hull, United Kingdom. In 1985,
he was awarded the Honorary
Doctorate of Science Degree from
the same university. He has held
various administrative and political
positions. Amongst the civil service
posts he held were District Officer,
Hulu Langat; Principal Assistant
Secretary, Economic Planning Unit,
Prime Minister’s Department and
Deputy State Secretary, Selangor. He
was the Minister of Welfare Services
from 1984 to 1986, the Minister of
Federal Territory from 1986 to 1987,
the Minister of Foreign Affairs from
1987 to 1991, the Minister of Domestic
Trade and Consumer Affairs from
1991 to 1997 and the Menteri Besar of
Selangor from 1997 to 2000. He was
Member of Parliament (Kuala Selangor)
from 1978 to 1997 and Selangor State
Assemblyman (Permatang) from 1997
to 2004, Pro-Chancellor of Universiti
Industri Selangor (UNISEL) from 2006
to 2009 and Member of the Council
of Royal Court Selangor from 1997
to 2000 and 2005 to 2010. He is now
the President of Majlis Bekas Rakyat
(“MUBARAK”) Selangor, Member of
MUBARAK Malaysia Supreme Council
and Chairman of Reconciliation
Council Parliament Kuala Selangor.
Tan Sri Dato’ Seri Utama (Dr) Haji Abu
Hassan is currently Chairman, Advisor
and Director of several public and
private limited companies. Amongst
them is as Advisor of Beslube
Engineering (M) Sdn Bhd. He is also
Patron, Chairman and President of
a number of Non-Governmental
Organisations. Amongst them are
Patron, University of Hull Alumni;
Chairman, Board of Trustees, Mental
Health Foundation Malaysia; Patron,
Rumah Tunas Harapan Tengku
Ampuan Rahimah, Kuala Selangor;
Patron Persatuan Bekas Murid-Murid,
Sekolah Tinggi Klang, Selangor;
Advisor of Royal Klang Club, Secretary
of Group of Ex-Ministers (GEM)
and Chairman of Derma Alam Shah
Committee. In Kota Kemuning, Shah
Alam where he resides, he is Patron
of the Kota Kemuning Residents’
Association.
He is a member of the Nomination and
Remuneration Committee in LBGB.
He does not have any family
relationship with any Director and/or
Major Shareholder of the Company.
He has no conflict of interests with the
Company and he has no convictions
for any offences within the past 10
years.
TAN SRI DATO’ SERI UTAMA (DR) HAJI ABU HASSAN BIN HAJI OMAR
Director
Age 72
Malaysian
(Independent Non-Executive Director)
Directors’
Profile
25. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 23
Maj Jen Dato’ Mohamed Isa bin Che
Kak (B) joined the Board of Directors
of LBGB on 6 December 2001.
Currently, he is also Director of C.I.
Holdings Berhad. After graduating
from the Royal Military College, he
was commissioned into the Royal
Malay Regiment in 1958. In his course
of military career, he attended various
military training courses such as The
Joint Services Command and Staff
College in Willington, India where he
qualified with Pass Staff College (psc),
The Senior Officers Management
Course in Naval Staff College in
Monteray, California, United States of
America.
In his more than 32 years of service in
the Malaysian Army, he had served in
various capacities both Regimental and
Staff. Among his early appointments
was the Regimental Intelligence Officer
serving with the United Nation Forces
in Congo. He was also appointed as the
Aide De Camp (ADC) to His Majesty
Yang Di-Pertuan Agong of Malaysia
from 1971 to 1975. In recognition
of his services, he was awarded with
the military honour of Pingat Setia
Angkatan Tentera.
He is the Chairman of ESOS
Committee, a member of Audit
Committee and Nomination and
Remuneration Committee in LBGB as
well as sitting on the Board of several
subsidiary companies of the Group.
He does not have any family
relationship with any Director and/or
Major Shareholder of the Company.
He has no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
MAJ JEN DATO’ MOHAMED ISA BIN CHE KAK (B)
Director
Age 77
Malaysian
(Independent Non-Executive Director)
Directors’
Profile
26. 24 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Dato’ Wong Woon Yow joined the
Board of Directors of LBGB on 20
August 2004. He is a Diploma holder in
Banking and Credit Management and
the Executive Diploma in Marketing
and Selling Bank Services from
International Management Centre,
United Kingdom. He served Malayan
Banking Berhad for more than 33 years.
During that period he gained much
exposure and experience in managing
various branches as well as managing
head office departments. He is also
well known and respected in the local
business community.
After leaving Malayan Banking Berhad
in 1993 he ventured into property
development.
He is a member of the Audit Committee
of LBGB.
He does not have any family
relationship with any Director and/or
Major Shareholder of the Company.
He has no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
DATO’ WONG WOON YOW
Director
Age 74
Malaysian
(Independant Non-Executive Director)
Directors’
Profile
27. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 25
Mohd Fazil was appointed to the
Board of LBGB on 6 December 2001
as an Independent Non-Executive
Director. He obtained a Bachelor in
Civil Engineering (Hons) Degree from
Universiti Teknologi Mara in 1995.
Subsequently, he further obtained the
accreditation of Master of Business
Administration from Oxford University,
United Kingdom in year 2009.
He began his career as a project
engineer and was promoted to become
a project manager with Perangsang
International Sdn Bhd. He has over
16 years of working experience in
civil engineering and is currently
the Managing Director of a private
management consultant company.
He is a member of ESOS Committee in
LBGB.
He does not have any family
relationship with any Director and/or
Major Shareholder of the Company.
He has no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
MOHD FAZIL BIN SHAFIE
Director
Age 44
Malaysian
(Independent Non-Executive Director)
Directors’
Profile
28. Kong Sau Kian joined the Board of
Directors of LBGB on 6 December
2001. He is a member of the Malaysian
Institute of Accountants. He graduated
with a Bachelor of Accounting (Honours)
Degree from University of Malaya
in 1988. Subsequently, he joined an
international public accounting firm
until 1992 where he gained exposure
in areas include audit of wide range
of industries, corporate restructuring,
acquisition audit and other special
assignments. He also sits on the Board
of LBI Capital Berhad and Asia Brands
Berhad (formerly known as Hing Yiap
Group Berhad).
He is the Chairman of Nomination and
Remuneration Committee, member
of Audit 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 no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
KONG SAU KIAN
Director
Age 48
Malaysian
(Independant Non-Executive Director)
26 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Directors’
Profile
29. Lim Tong Lee was appointed as
Independent Non-Executive Director
of LBGB on 22 May 2013.
He is currently the Chief Investment
Officer of AmWater Investments
Management Pte Ltd, Singapore.
He has more than 22 years working
experience in corporate finance and
financial related industries covering
initial public offerings, mergers and
acquisitions, private equity, secondary
fund raising, bond fund raising,
corporate restructuring, privatisation
exercise, reverse take over/back door
listing and auditing.
Prior to joining AmWater Investments
Management Pte Ltd, Singapore in
2013, he was attached to AmFraser
Securities Pte Ltd, Singapore as
Director/Head of Corporate Finance
from 2007 to 2012 and he was with
AmInvestment Bank Berhad from 1995
to 1997 and 1999 to 2007 with his
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 July 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 does not have any family
relationship with any Director and/or
Major Shareholder of the Company.
He has no conflict of interests with the
Company and he has no convictions for
any offences within the past 10 years.
LIM TONG LEE
Director
Age 45
Malaysian
(Independent Non-Executive Director)
Directors’
Profile
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 27
33. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 31LBS BINA GROUP BERHAD ANNUAL REPORT 2012 31
Group Financial
Highlights
REVENUE
(RM’000)
PROFIT/(LOSS) BEFORE TAXATION
(RM’000)
2008
2009
2010
2011
2012 531,820
261,254
198,476
340,912
449,565
2008
2009
2010
2011
2012 65,056
10,294
27,001
62,777
PROFIT/(LOSS) AFTER NON-
CONTROLLING INTEREST
(RM’000)
SHARE CAPITAL
(RM’000)
2008
2009
2010
2011
2012 37,160
21,499
(17,182)
16,512
34,300
2008
2009
2010
2011
2012 386,553
386,212
386,553
386,553
386,553
2008
2009
2010
2011
2012 445,105
438,817
424,133
425,377
422,535
2008
2009
2010
2011
2012 339,607
345,316
331,747
295,991
299,296
EQUITY ATTRIBUTABLE TO OWNER
OF THE PARENT
(RM’000)
NET TANGIBLE ASSETS
(RM’000)
(6,558)
34. 32 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Group Financial
Highlights
EARNINGS PER SHARE
(SEN)
NET TANGIBLE ASSETS PER SHARE
(SEN)
GROSS DIVIDEND PER SHARE
(%)
NET ASSETS PER SHARE
(SEN)
* Subject to approval of shareholders at Thirteenth Annual General Meeting
2008
2009
2010
2011
2012 115.15
113.62
109.72
110.04
109.31
2008
2009
2010
2011
2012 9.70
5.58
(4.45)
4.27
8.87
2008
2009
2010
2011
2012 87.86
89.41
85.82
76.57
77.43
2008
2009
2010
2011
2012 2.50*
-
-
-
2.50
35. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 33
Group Financial
Highlights
2005 2006 2007 2008 2009 2010 2011 2012
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Revenue 456,412 328,712 281,298 261,254 198,476 340,912 449,565 531,820
Profit / (Loss) Before Taxation 69,690 16,025 13,780 10,294 (6,558) 27,001 62,777 65,056
Profit / (Loss) After
Non-controlling Interest 36,983 4,622 5,603 21,499 (17,182) 16,512 34,300 37,160
Share Capital 378,110 384,239 385,192 386,212 386,553 386,553 386,553 386,553
Equity Attributable To Owners
Of The Parent 378,734 381,912 394,231 438,817 424,133 425,377 422,535 445,105
Net Tangibles Assets 331,018 332,187 300,426 345,316 331,747 295,991 299,296 339,607
Per Ordinary Share
Net Assets (Sen) 100.16 99.39 102.35 113.62 109.72 110.04 109.31 115.15
Earnings (Sen) 9.79 1.22 1.46 5.58 (4.45) 4.27 8.87 9.70
Gross Dividend (%) 3.25 - - - - - 2.50 2.50*
Net Tangibles Assets (Sen) 87.55 86.45 77.99 89.41 85.82 76.57 77.43 87.86
* Subject to approval of shareholders at Thirteenth Annual General Meeting
FINANCIAL CALENDAR
Financial Year Ended 31 December 2012
Announcement of Quarterly Results: -
First Quarter ended 31 March 2012 30 May 2012
Second Quarter ended 30 June 2012 29 August 2012
Third Quarter ended 30 September 2012 29 November 2012
Fourth Quarter ended 31 December 2012 26 February 2013
Publishing of Annual Report and Audited Financial Statements
Issuance Date 6 June 2013
Annual General Meeting 28 June 2013
36. 34 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Chairman’s
Statement
OVERVIEW
Based on Bank Negara Malaysia Annual Report 2012, the
Malaysian economy performed better than expected in 2012,
with a higher growth of 5.6% (2011: 5.1%). The strong growth
was supported by resilient domestic demand, which cushioned
the negative impact of weak external environment. Domestic
demand recorded its highest rate of expansion for the decade,
supported by strong consumption and investment spending.
The continued resilient in domestic demand was underpinned
largely by sound macroeconomic fundamentals, the more
diversified and balanced economic structure, the stronger and
more developed financial system, and greater macroeconomic
policy flexibility.
37. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 35
Chairman’s
Statement
Record Performance
2012 has turned out to be a year where,
once again, we had turned in a better
performance than expected. Despite
the uncertainties that had emerged in
the global economy with the sentiments
of prolong economic and financial crisis
in the US and Eurozone, the economic
slowdown in China and India, we had
broken our own record sales achieved
in the previous year. The Group met
these challenges and sustained sales
growth to close the year with RM871
million sales against the targeted sales
of RM800 million, which representing a
strong growth of 31.4%, as compared
to RM663 million sales achieved in year
2011.
Riding on the improved in properties
sales, the Group marked further
improvement of its financial results for
the financial year ended 31 December
2012 (FY 2012). A year-on-year growth
of 19.8% in revenue was recorded in
FY 2012, setting the full year revenue
at RM509.6 million compared to
RM425.3 million in the preceding year.
The profit before tax grew to RM75
million in the FY 2012 signifying a
growth of approximately 10.73% from
the previous year. The Group posted
net profit after tax of RM39.0 million
in FY 2012 translated into earnings per
share of 9.7 sen (FY 2011: 8.87 sen),
representing an increase of 9.4%.
The improved revenue and profits for
the FY 2012 are attributable to the
progressive recognition of revenue,
profit contribution and good take up
rates from the Group's development
projects including D' Island Residence
and The Lake Residence in Puchong,
Cameron Golden Hills and Brinchang
Square in Cameron Highlands, Min
Garden in Batu Pahat, Lavender 2,
Iris Garden II, Topaz III & IV, Ivory
Residences II, Indigo Homes, Magenta
Homes, Camelia Cottage, Pearl Villa,
Royal Ivory, Royal Ivory 2, Royal Garden
and I Hub Puchong in Bandar Saujana
Putra (BSP) as well as other commercial
and industrial projects such as Taman
Perindustrian Tasik Perdana in Puchong
and Saujana Business Park in BSP.
Dividend
In view of the Group's commendable
performance for the FY 2012 and
in appreciation to the shareholders'
support, the Board has recommended
the First and Final Dividend of 2.5 sen
per ordinary share of RM1.00 each
less 25% income tax for the FY 2012.
The proposed dividend is subject to
the approval of shareholders at the
forthcoming Thirteenth Annual General
Meeting.
38. 36 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Chairman’s
Statement
Corporate Development
Acquisition of equities from Minority
Shareholders
During the year, the Group continues its
business rationalization and expansion
activities by acquiring the remaining
equity interests from the minority
shareholders of Utuh Aspirasi Sdn
Bhd ("UASB") and Galeri Cekap Sdn
Bhd ("GCSB") ("Acquisition"). The
Acquisition has rendered both UASB
and GCSB wholly-owned subsidiaries of
the Group, and consequently enables
the Group to gain better control and
recognition of all the potential earnings
derived from the projects developed
under these companies.
New Project
We continue to take advantage of
our strong operating platform to
build strategic alliances with excellent
partners, the latest being our joint
venture with the Government of Pahang
in which we held 51% equity stake. This
joint venture would transform a piece
of 86.4-acre land into a self-contained
township which consists of 6 phases of
residential and commercial properties
comprising apartments, condominium,
office units, retail units, shopping
complex, resort hotel, tourist viewing
tower and chapel, with estimated total
Gross Development Value ("GDV")
of RM1.7 billion spanning over an
estimated project period of 5 years.
Revamp of wholly-owned Subsidiary
The Group's wholly-owned subsidiary,
LBS Bina Holdings Sdn Bhd has
disposed its entire 49% equity interest
in Prisma Kasturi Sdn Bhd ("PKSB") and
held the remaining 51% equity interest
through its wholly-owned subsidiary,
MITC Sdn Bhd. This revamp has
rendered PKSB became a 51% indirect
subsidiary of LBS for the Group to
pursue joint venture projects in future.
39. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 37
Chairman’s
Statement
Financing Facilities of RM124.6 Million
In March 2012, the Company sealed
RM124.6 million Financing Facilities
with Malaysia Building Society Berhad.
The facilities were channeled for the
financing of development of two (2)
projects in D' Island Residence.
Proposed Disposal of Investments in
China
The Company had on 18 April
2012 signed a Memorandum of
Understanding ("MoU") with Jiuzhou
Tourism Property Company Limited
(formerly Jiuzhou Technology
company Limited) ("JDX"), a wholly-
owned subsidiary of Zhuhai Holdings
Investment Company Limited (formerly
Jiuzhou Development Company
Limited) ("JDCL") for the proposed
disposal of up to 100% (but not less than
60%) stake in Dragon Hill Corporation
Limited ("Dragon Hill"), a wholly-owned
subsidiary of LBS. Dragon Hill through
its subsidiaries, owns and operates
the 36-hole Lakewood Golf Club and
its adjoining property development
project in Zhuhai, China. Dragon Hill
has 60% profit sharing rights in these
two businesses.
This MoU enables both parties to have
exclusive right of negotiation for a
period of six (6) months from the date
of MoU on the terms and conditions
of a definitive agreement with regards
to the proposed disposal. The MoU
was later extended for another six (6)
months by both parties to allow for
more time in negotiation on the terms
and conditions of the final agreement.
The negotiation was finally concluded
and a conditional Sale and Purchase
Agreement was inked at a grand signing
ceremony in Zhuhai on 10 April 2013.
The divestment of these two businesses
in Zhuhai would bring in proceeds of
HKD1.65 billion in the form of cash and
quoted shares of JDCL.
Share Buy Back
During the FY 2012, 5,336,700 ordinary
shares were bought back from the
open market for RM4,406,841.33 and
were retained as Treasury Shares in the
Company.
Early Redemption of Part of Sukuk
Programme
The Sukuk Programme was secured
by Danajamin Nasional Berhad under
the Shariah Principle of Kafalah for
the issuance of Islamic Commercial
Papers/Medium Term Notes of up to an
In March 2012, the Company sealed RM124.6
million Financing Facilities with Malaysia
Building Society Berhad. The facilities were
channeled for the financing of development
of two (2) projects in D' Island Residence.
40. 38 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
aggregate principal amount of RM135.0
million to be issued in five (5) tranches.
As of February 2013, the Company has
made early settlement by redeeming
and cancelling the entire Tranche 1, 3
and 4 of the Sukuk Programme totaling
RM75 million which has contributed to
the total cost savings of about RM3.8
million, giving positive effect to the
Company's earnings while reducing
gearing ratio.
Awards and Accolades
On behalf of the Board, I would like
to extend our heartiest congratulation
to both Managing Director, Dato' Lim
Hock San who was the recipient of the
prestigious Entrepreneur of the Year
2012 at the Asia Pacific Entrepreneur
Award (APEA) 2012 for his outstanding
entrepreneurship, leadership and
achievements in the property
development industry, and Executive
Director, Mej (K) `Dato' Lim Hock Sing
who was conferred with Honorary Major
in the Reserve Army (REJ 505 Askar
Wataniah) Pekan by KDYTM Tengku
Mahkota Pahang.
The Group's awards winning Lakewood
Golf Club in Zhuhai was named Zhuhai
Best Club of the Year 2012 by the Top
Magazine for its excellent service and
five-star boutique club environment.
2013 Outlook and Prospect
Despite headwinds from Europe and the
US, prospects in Asia remain positive.
Residential demand is expected to
continue supported by economic
growth, homeownership aspirations,
urbanisation and a growing middle
class. Nevertheless, we anticipated that
the 2013 outlook remains challenging
with lingering global uncertainties. LBS
would continue to leverage its local
presence, experience and brand equity
to seize opportunities. With a healthier
balance sheet and stronger cash
position, the Group has the capacity to
step up acquisitions of well-located and
promising sites in the region.
The Group is optimistic of 2013 outlook
and has thus set its new sales challenge
of RM1 billion. The new target is
supported by series of new launches
with well-balanced pricing in three
difference segments. A total of 15 new
launches with a total GDV of RM1.2
billion constituting approximately 3,000
units of housing development in the
pipeline for launching in 2013.
Moving forward, the Group will
continue to embark on strengthening
our position as a developer of
choice among house buyers through
innovative and contemporary themed
development. We shall continue to
leverage on the demand for affordable
residential, lifestyle themed residential
and commercial development.
Living the Life with LBS
LBS property aims to create the
environment for people to embrace life
and all that comes with it. The Group
affirmed its aspiration to help every
homebuyer enjoy a unique lifestyle
experience in their dream homes
through its newly launched "Living
Chairman’s
Statement
41. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 39
The Life With LBS" theme campaign. This campaign focuses
on the Company's efforts to create quality, affordable yet
sustainable living spaces for people to embrace a balanced
lifestyle with aim to fulfill everyone's dream to own a home.
Appreciation
On behalf of the Board of Directors, I wish to extend
the Board's appreciation to all our valued customers,
shareholders, business associates, bankers and the relevant
government authorities for their continuous support and
confidence in the Group.
I would like to extend my gratitude to the Management
and employees for their unending contribution, unwavering
dedication, loyalty and commitment to the Group which have
made the success of the Group.
Last but not least, my special thanks to my fellow board
members for their invaluable contributions in the past years
and untiring support at all times.
DATO' SERI LIM BOCK SENG
Chairman
7 May 2013
Chairman’s
Statement
42. Review Of
Operations
40 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Amidst the challenging global
environment, the Malaysian economy
remains resilient. On the property front,
demand for affordable homes and well-
planned developments in the Klang
Valley remained strong and is expected
to receive a boost from the ongoing
implementation of government's ETP
through various NKEA such as Greater
Kuala Lumpur and MRT line.
The Group's efforts in year 2011 to re-
strategize its business model, launch
brand new image and identity, innovate
products design and revamp marketing
strategies have continued to reap
benefits significantly from this business
transformation in year 2012.
2012 was a productive year for
LBS. The positive take up rates for
our products resulted in the Group
maintaining its strong financial track
record. For the financial year 2012, LBS
pulled in another year of remarkable
performance, registering RM871 million
in sales, which represents 32% increase
as compared with RM662 million
recorded in year 2011.
MALAYSIA OPERATIONS
In year 2012, property development
contributed 99.5% of total revenue of
the Group and it continues to be the
main stream of income for the Group.
As at end of 2012, the Group has 18
on-going projects out of which 13
were newly launched. These projects
are located in Klang Valley, Cameron
Highlands and Batu Pahat. In 2012,
910 units of various properties with
total value of RM575 million have been
2012 was a productive year
for LBS. The positive take up
rates for our products resulted
in the Group maintaining its
strong financial track record.
For the financial year 2012,
LBS pulled in another year
of remarkable performance,
registering RM871 million in
sales, which represents 32%
increase as compared with
RM662 million recorded
in year 2011.
43. Review Of
Operations
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 41
completed and handed over vacant
possession to the purchasers.
The LBS' iconic D' Island Residence
in Puchong, a flagship high-end
development, is set on 175 acres of
natural terrain surrounded by a 1,000-
acre lake. First launched in year 2010
themed with "Island Retreat, Urban
Charm", D' Island Residence promotes
a unique resort-lifestyle complete with
modern conveniences and distinctive
concept.
Phase 4 of D' Island Residence
comprising 60 units of Nautilus concept
home was launched during the year.
Nautilus is luxury superlink homes that
have influences from the Scandinavian
Islands known for its trademark of
symmetrical and minimal designs which
gives the homes a subtle elegance.
A total of 89 units of bungalow lots were
launched during the year 2012 and
about 75% were sold as at May 2013.
Bandar Saujana Putra (BSP) continued
to be the main contributor for the sales
and revenue of the Group for the year
2012. 6 new projects were launched
during 2012 comprising 368 units of
Royal Ivory (double storey cluster link
semi-detached house), 164 units of
Royal Ivory 2 (double storey cluster link
semi-detached house), 98 units of Royal
Garden (double storey semi-detached
house), 26 units of I Hub Puchong
(factory), 80 units of Topaz IV (double
storey link house) and 348 units of
Pearl Villa (double storey townhouse).
Together with previous launches, as at
year end, BSP has a total of 8 on-going
projects.
Moving forward, in early of 2013, the
Group has launched its BSP Skypark,
a first high-rise 24-storey serviced
residences in BSP with modern facilities.
It comprises 689 units of serviced
residences and 32 shop units with GDV
of approximately RM319 million.
In Cameron Highlands, 2 new projects
were introduced in the year 2012.
SomerSquare of Cameron Golden Hills
comprises 192 units of retail boulevard
and residential apartments with total
GDV of RM85 million was officially
launched in October 2012 while Suriana
of Taman Royal Lily consists of 55 units
of commercial shops and residential
apartments was launched in May 2012.
In line with our marketing campaign
"Living the Life With LBS" and
government initiatives to increase
44. 42 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Review Of
Operations
home ownership among Malaysian,
the Group has introduced its second
phase of Min Garden (single storey
semi-detached home) with total GDV of
approximately RM6.9 million in Bandar
Putera Indah, Batu Pahat, Johor to cater
to homebuyers in search of quality and
affordability.
OVERSEAS OPERATIONS
On 10 April 2013, the Group has finally
sealed the agreement to unlock the
value of its investments in Zhuhai, China,
after long-drawn-out negotiations since
early 2012, for a total sale consideration
of HKD1.65 billion or equivalent to
approximately RM657 million. The
disposal of the Group's equity interests
in two subsidiaries involved in golf club
operations and proposed property
development projects is expected to
be completed in second half of 2013.
From the disposal, the Company would
receive HKD1.35 billion or equivalent to
approximately RM538 million cash and
225,563,909 ordinary shares of HKD0.10
each in Zhuhai Holdings Investment
Group Limited ("Zhuhai Holdings"),
a company listed on the Main Board
of the Hong Kong Stock Exchange.
Upon completion, the Company would
emerge as a substantial shareholder of
Zhuhai Holdings and thus would further
expand the business and establish a
stronger foothold in China which is
also in line with our aim to become an
internationally recognised developer
by expanding and strengthening our
presence in China and would allow the
Company benefit from the 197-acre
property development project that has
been delayed for more than 10 years.
Management & Consultancy
In Zhuhai, China, besides the Lakewood
Golf Club and the proposed property
development project, LBS is also
providing management and consultancy
services to Zhuhai International Circuit
(ZIC), a prestigious car racing site of
international recognition visited by
many from around the world. ZIC was
the first permanent motor racing circuit
built in China. Completed in November
1996 to host China's 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 DeL'Automobile), the
race track offers challenging corners for
spectacular overtaking maneuvers to
world class drivers.
ZIC is now host to many local, regional
and international races, this include
Pan Delta Super Racing Festival,
China Superbike Championship,
Petronas Sprinta FIM Asian Grand
Prix, Asian Formula International Open
Competition and FIM Asian Grand
Prix. In addition, ZIC helps many
car manufacturers and car-related
businesses stage their corporate
activities. These may range from product
launches, product trials to customer
incentive events. Over the last few
years, ZIC has received many awards
for its involvement in the promotion of
motorsports in China.
45. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 43
Review Of
Operations
2013 OUTLOOK AND
GROUP PROSPECTS
In Malaysia, the first quarter of 2013 has
proven to be challenging to developer
as buyers adopted a "wait-and-see"
attitude on property investment for the
impending Thirteenth General Election.
Other factors affecting the investment
decision were the tighter financing
criteria and introduction of higher rate
of Real Property Gains Tax.
However, sales have been picking
up subsequent to the conclusion of
the general election in early May.
The property market is expected to
continue its encouraging momentum
in the remaining months of 2013. This
positive market sentiment is anticipated
to be fuelled by local private investment
as supported by prevailing low interest
rate, relatively low unemployment rate
and attractive financing packages. In
addition, there is possibility of influx
of foreign investments into Malaysia
property market as the properties in
Malaysia still have greater room for
appreciation as compared to Singapore
and Hong Kong. According to the
findings of the IFC and World Bank's
"Doing Business Report 2013" which
ranks Malaysia at number 12 (out of 185
economies) of the world's most business
friendly countries further highlights the
strength and resilience of the Malaysian
economy. This ranking is up 6 notches
from 2012 ranking.
We also expect the Malaysian high-
end residential market to continue
to receive favourable demand in
particular from foreign investors from
the region especially Singapore, India,
China and the Middle East who now
find the traditional investment markets
like Singapore, Australia and Dubai
becoming very expensive or overpriced.
With a stable economy, a transparent
property and land ownership law, and
the expected strengthening of the
Ringgit against US dollars, Malaysia's
properties is increasingly seen as a safe
haven for investors seeking stability
from the turbulent global financial
market.
LBS remains its leading role in, and
to benefit from, opportunities arising
in all parts of the residential property
market using our core skills in property
development. The recent published
PR1MA project by the government
reiterates the strong demand for more
affordable homes for the middle income
group. While this effort of government
will take times to translate into reality, it
demonstrates that LBS is at the forefront
of the market trend where more than
35% of our products are ranged in
the affordable homes segment. While
including high-end properties in the
portfolio, LBS continues to balance its
product range so as to have greater
weight in economically strong areas,
and this, together with our strong team
work, would enable us to build a track
record of out-performance against the
market.
In tandem with the positive outlook,
particularly in supporting the
Government's effort to increase home
ownership among Malaysian, the Group
affirmed its aspiration to help every
46. 44 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Review Of
Operations
homebuyer enjoy a unique lifestyle
experience in their dream homes
through its newly launched "Living The
Life With LBS" marketing campaign.
This campaign focuses the Company's
efforts to create quality, affordable and
sustainable living spaces for people to
embrace a balanced lifestyle.
Moving forward, the Group will
continue to manage and evaluate
the development of all our projects
with an emphasis on timely realisation
and profit margin improvements. We
would monitor the market closely
for the opportune time to launch the
developments in the pipeline. The
Group's land banking strategy has
afforded it with a diverse portfolio that
caters to different market segments.
From affordable, mid to high-end
developments, it can extract the
appropriate sites to market at the right
time. Furthermore, as some of these
sites are the Group's historical land
bank, with future additions acquisition,
whether through out-right purchase
or joint venture, the Group believes it
is in a better position to weather any
challenges that may arise in the years
to come.
APPRECIATION
Although 2013 may be challenging,
the Group's core values of passion,
unity and progressive innovation,
coupled with teamwork, resilience and
an unflinching commitment towards
excellence will drive LBS through
the uncertain environment. The
Group will stay focused and nimble
to seize opportunities and achieve
sustainable growth and value for all our
stakeholders.
I would like to express my fellow
directors for invaluable counsel and
guidance. To the management and
staff, thank you for your hard work and
dedication in building LBS to what it is
today. At the same time, I would also
like to thank all our business partners
for their continued support and trust
over the years.
Dato' Lim Hock San
Managing Director
7 May 2013
Artist Impression
51. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 49
D' Island RESIDENCE
D' Island Residence is an island paradise
with measurement of 175-acre land which
surrounded by 1,000 acres of scenic lakes with a
small piece of land connecting to the mainland.
This island-theme development in Puchong
will be transformed into a truly remarkable and
exclusive mixed-residential neighbourhood, a
unique of its kind – exclusive island living right
in the heart of the city. D' Island Residence,
luxury homes to a natural lifestyle with total
peace of mind at an exclusive green home in
hub.
Portfolio
2012
风情岛屿
魅力之都
Island Retreat
Urban Charm
52. A carefully-planned outdoor facilities
include a nature-themed jogging track,
an outdoor gym and exercise area,
contemporary children playground as
well as a club house features first-class
leisure and recreational facilities for
adults and children such as swimming
pool, gymnasium, sauna, lounge and
activity centre ensure residents benefit
from active outdoor recreations. Lush
greenery, blue water, fresh air and
excellent recreational facilities make
a perfect combination for promoting
healthy and vitality lifestyle. All these
are planned along with a 3-tier security
system to ensure residents can engage
in various facilities or activities with total
peace of mind.
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2012
50 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
The residents of D' Island Residence are enjoying the exclusive sunrise and sunset
views right in the island. The latest launches of Nautilus (three-storey superlink
houses) come with the clean lines and sleek surfaces promote a spacious interior in
each home which is further accentuated with an expansive indoor atrium allowing
natural light to illuminating indoor areas. Apart from its energy-saving benefits, the
natural lighting promotes a cosy atmosphere within the home. A private roof garden
serves as a natural extension into the great outdoors, overlooking spectacular views
of the development’s beautifully landscaped surroundings. Projects in Nautilus and
Balvia (three-storey semi-detached homes) are also equipped with a private in-
house lift which further enhances a sense of luxury.
53. Portfolio
2012
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 51
D' Island Residence is divided into five zones namely (North
Coast-Mediterranean, South Coast-Thailand, West Coast-
Scandinavian, East Coast-Bali and Northwest Coast-Venice)
with residential segment comprising bungalows, semi-
detached homes, luxury superlinks and super condominium.
In this unique island, we promote a resort-lifestyle complete
with modern conveniences and going green concept that is
more sustainable and eco-conscious toward environment.
D' Island Residence estimated to have tenure of five to seven
years with total Gross Development Value (“GDV”) of RM3
billion.
This unique island resort-style development is well connected
to several highways such as the Damansara-Puchong
Expressway (LDP), the Shah Alam Expressway (KESAS) and
Maju Expressway (MEX). Nearby amenities include Tesco
Hypermarket, IOI Mall and Giant Hypermarket, which are less
than 15 minutes drive away.
54. Portfolio
2012
bANDAR sAUJANA pUTRA (bsp)
The slogan of Bandar Saujana Putra (BSP)
“The Township for Everyone” embraces the
township’s brand and its promise of reaching
out to everyone – from young aspiring home
owners to young couples, from growing
families to mature families spanning multiple
generations, from seasoned property investors
to first time buyers and even businesses.
BSP, an integrated township is an up-and coming township,
with approximately 6,900 homes completed todate and
1,950 homes currently being developed by LBS. The extent
of variety in the residential units will ensure that people from
a wide range of income group and lifestyle will be equally
accommodated. BSP boasts a seamless integration between
the community by developing recreational parks, sporting
facilities, surau and shops.
Superb Connectivity
This flagship project is strategically located within close
proximity of the developing education hub, medical centres,
police station and petrol station. This fully self-contained
township located about 30 kilometres South East of Kuala
Lumpur City Centre, is strategically close to the major
suburbs of Klang Valley, yet secluded enough to provide a
haven of serenity. The township is also easily accessible and
conveniently connected via major expressways including the
LDP, ELITE, Shah Alam, KESAS, SKVE and Maju Expressway
(MEX), it is within minutes of Petaling Jaya, Sunway, USJ,
Subang Jaya, Seri Kembangan, Shah Alam, Cyberjaya and
Putrajaya. This strategically located and self-contained
township further aims to live up to its tagline, “The Township
For Everyone”, by providing a conducive living environment
for families of today and that of the future.
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2012
Artist Impression
52 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
55. Portfolio
2012
The phenomenal connection through
highways to Putrajaya, the Malaysia
Government administrative centre and
also where the Putrajaya International
Convention Centre resides; Cyberjaya,
the country’s first intelligent city with
world class IT infrastructure and the
Multimedia Development Corporation
or MDeC headquarter; KLIA, one of
Southeast Asia’s major aviation hubs;
Sepang International Circuit, the
Malaysian Grand Pix and other nearby
townships such as Taipan USJ, Putra
Heights, Sunway, Puchong etc has
further enhanced the integrity for the
development of BSP.
Another convenient and fast alternative
mode of transportation will be available
at Putra Heights, the nearby township
will be connected by 2 proposed LRT
extensions and Putra Heights station
will serve as an interchange station
between the Kelana Jaya extension and
the Ampang extension. The Company
is planning for the proposed shuttle-bus
initiative in connecting the communities
in BSP with the nearest LRT or bus
station.
Comprehensive Development
BSP has contributed significantly
towards the creation of self-contained
township under the government
blueprint paradigm which supports
well the extensive demand of property
in Klang Valley. As planned, BSP is
moving towards a mixed development
township that will comprise residential,
commercial, education and leisure
hub. With the abundance of great
interlinking systems and proximity to
numerous cities, BSP is expected to
propel to become another pulsating
town in the vicinity.
BSP is equipped with amenities and
utilities well required to live an urban
life. The Giant hypermarket is just
mere kilometers away from the town.
Communities’ well-being is a great
matter to us. From restaurants, coffee
joints, parks, football field, gardens, to
police station, Surau and school, the
up and coming facilities and amenities
are envisioned to make the life in BSP
enjoyable, pleasant and ease of mind.
The self-contained BSP township is
expected to be completed in 7 to 10
years and has an estimated GDV of
RM6.8 billion.
Occupancy
The occupancy rate for BSP has
achieved more than 70% witnessing
the tremendous growth of the township
since its first launch in 2003 and we
are upbeat about that the number of
occupancy could be further augmented
owing to its strategic location and the
pulsating of neighbourhood.
Potential value
With the full support of the Malaysia
Government, the Multimedia Super
Corridor (MSC) was designed to leap-
frog the country into the information
and knowledge age. It will become one
of the cornerstones to drive Malaysia
towards a high-income economy within
the next 10 years and is expected to
contribute 10.2% to the nation’s gross
domestic product by 2015. These
catalysts will, in turn, is expected to
provide up to 83,000 job opportunities
and thus, project a strong confidence
on the growth prospect in BSP which
is strategically located in the vicinity of
MSC zone.
Portfolio
2012
Artist Impression
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 53
56. Portfolio
2012
Mahsa University’s new campus
and Citi-Link Express’ expansion of
logistics warehousing operation both
are located in the vicinity of BSP is
expected to enhance the vibrancy
of the township and transforming
potential value on investment as Mahsa
University Campus can accommodate
about 15,000 students in its faculties
and Citi-Link Express’ new hub would
draw around 530 employees.
New Launches
During the year, 1,084 units of
residential and commercial properties
were launched in BSP with total GDV
of approximately RM580 million.
The demand for our products was
overwhelming with more than 94% out
of the said 1,084 units have been sold.
Following the highly successful take-up
rates in BSP Avenue, LBS has launched
Royal Ivory 2 (double story cluster link
semi-detached houses) and Royal
Garden (double storey semi-detached
houses) to cater to its growing market
demands for premium homes. These
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2012
mark the final two phases of landed
residential developments in BSP
before LBS progresses into high rise
developments – BSP Skypark 24-story
Serviced Residence, being the first
high-rise development in BSP.
Launches for various innovative medium
to medium-high end properties in the
pipeline shall see LBS’ endeavor in
striving the balance between affordable
and luxury while positioning the Group
to a new phase of growth.
Artist Impression
54 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
57. Portfolio
2012
cAMERON golden hills
Offering a wholesome lifestyle, the 59-acres
of land is set 5,000 feet above sea level in a
tranquil set amidst nature’s own gift of green
comfort between Brinchang and Tanah Rata of
Cameron Highlands, Pahang. Cameron Golden
Hills is approximately 4 km north of Tanah Rata
town and 2 km south of Brinchang town.
In creating the concept for Cameron Golden Hills, we set out
to preserve the lush and peaceful ambience of this culture
rich highland, recapturing the prestige and cachet for this
strategic located highland. Residents will mesmerized by its
charms surrounding each home and greeted to limitless fresh
cool air and clear blue sky spotted with lovely white clouds.
Cameron Highlands.
The way life should be.
With its unique natural green scenery
and cooling climate, Cameron
Highlands has evolved from a traditional
farming economy into a famous tourist
destination in Malaysia. To tap on this
changing economic trend, this mixed
development project has included
in its upcoming plan property types
that are for hospitality industry, this
includes arcade market and shop
apartments. Cameron Golden Hills as
a complete township offering holiday
apartments, double storey terrace and
semi-detached houses, villas, bungalow
lots, commercial developments and
hotels for residents with total GDV of
approximately RM704.2 million would
be strategized on high quality and
exclusive designs.
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 55
58. The phase 1 of The Vines comprising 106 units of double
storey terrace house of which 94 units have been sold out
thereby leaving only 12 completed and ready to be moved in
units. While for the phase 2 which left only 39 units available
is expected to be completed by 2nd quarter of 2013.
SomerSquare consists of six-blocks of shop apartments, a
newest development located in the centres, Brinchang and
Tanah Rata was unveiled in year 2012. The first 2 blocks
namely SomerSquare I and SomerSquare II consist of 192
units of shop apartments were launched in October 2012 with
GDV of approximately RM85 million which are scheduled for
completion by year 2015.
Launch of Vines Residence consists of 50 units three storey
semi-detached houses with total GDV of RM86 million is in
the pipeline.
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2012
Taman Royal Lily
Taman Royal Lily is strategically located at Tanah Rata town
centre of Cameron Highlands. The cool and fresh air in the
highlands offers an attractive retreat for city dwellers who
want temporary respite from the noise and pollution of the
city. 11 units of shop unit in 5-storey Suriana Shop Apartment
was launched in May 2012 with total GDV of RM3.2 million.
Artist Impression
56 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
59. THE LAKE RESIDENCE
The Lake Residence is strategically located
in the thriving and robust Puchong, USJ
and Subang Jaya Corridor. The township is
well connected to the main interchange of
Damansara-Puchong Highway and it also
accessible from ELITE Highway linked by the
Approved Cloveleaft Intechange-Putrajaya in
near future.
Situated next to the D’ Island Residence, The Lake Residence
is also enjoying the cooling breeze and stunning view of the
lake. Its close proximity to the various amenities in Puchong
town makes the location strategic as one highly sought after
in the vicinity.
This project comprises a total of 299 units of townhouse
with total GDV of RM102.7 million received overwhelming
responses with 290 units have been sold out.
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2012
MIN GARDEN
LBS southern project - Bandar Putera Indah is
a 1,288 acre fully integrated township, which
comprises more than 6,300 units of mixed
development of residential and commercial
units, located approximately 7km from Batu
Pahat town center and within minutes of
neighbouring towns such as Yong Peng and
Muar.
As of today, 778 units of properties have been handed over
to purchasers. Launches of 76 units of single-storey semi-
detached houses named as Min Garden with GDV of RM19.6
million received very encouraging response in Bandar Putera
Indah.
With the recent announcement made on the proposed Kuala
Lumpur-Singapore high speed super rail project which will be
having an interchange station at Batu Pahat, the locality of
Bandar Putera Indah will be more attractive.
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 57
Artist Impression
Artist Impression
63. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 61
The Group embraces the important of environmental factors, the
health and safety of the employee in an organization as well
as social welfare to society at large. The concept of companies’
responsibilities is beyond the purely legal or profit related has
gained new impetus. As a corporate citizen, we recognize corporate
social responsibility initiatives are an integral part of our business
philosophy in our journey to attaining sustainability and it is
essential for our group to preserve that a business should strike a
balance between maximizing shareholder value and fulfilling the
social responsibility in order to achieve sustainability development.
Corporate Social
Responsibility
64. 62 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
ENVIRONMENTAL PROTECTION
AND SUSTAINABILITY
The Group recognizes the importance
of preserving the natural environment
and is committed to achieving
good standards of environmental
performance, preventing pollution
and eliminate wastage generate
from operations. As such, we make
concerted efforts to ensure our activities
and policies are being implemented to
meet or exceed the requirements of
legislation and applicable best practice.
As the property developer, we realized
the importance of preserving green
environment and initiated numerous
operational processes that set out
to reduce the adverse impact of our
projects activities on the environment
through the various means on numerous
areas, including:-
- Managing our construction site;
- Ensure all operations and activities
comply with environmental protection
regulation;
- Disseminating guidelines set on 3Rs
(Reuse, Recycle and Reduce); and
- Policy set for efficient usage of water,
electricity and paper arising from our
daily activities.
In response to the global environmental
conservation responsibility, the
Company's latest D' Island Residence is
incorporated with the latest Rainwater
Harvesting system that harvest the
water from the roof for the usage of
landscape watering, toilet flushing and
car washing. On average, a household
can save up to 15%-20% of water based
on the designed rainwater usage. It
is estimated to save up to 100,000
liters of water per household per year.
D' Island Residence will feature more
environmentally friendly and energy
efficient systems like LED street lights,
solar panel in the near future.
Our CSR programmes initiatives and
efforts to preserve the environment
and inculcate the eco-awareness has
started since year 2009 by participating
Corporate
Social
Responsibility
65. COMMUNITY
We continue to support borderless
charitable initiatives through variety
social contributions to help the needs of
communities. Philanthropy or donations
to charitable causes has been one of
the corporate social events carried out
by the Group annually. This year was
no exception as the Group continued
to provide support and participate in
community development, the Group
made donations to welfare and charity
organisations, religion organisations and
schools.
For the sixth consecutive year, LBS
has participated as one of the main
sponsors for Kiwanis Treasure Hunt. This
charity event was in aid of the Kiwanis
Down Syndrome Foundation – National
Centre, The Community Centre for the
Deaf, Ti-Ratana House of Hope, Rumah
Wawasan, Sitiawan, Joy Workshop,
Melaka and Kiwanis Orphanage,
Batu Pahat organised by The Kiwanis
Club of Kuala Lumpur (KCKL). The
Group has also encouraged employee
volunteerism in non-government
organisation. During the year, LBS has
volunteered its services to take part in
a Charity Food & Funfair organized by
Kiwanis Down Syndrome Foundation
National Centre.
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 63
in Earth Hour and initiating various “Go
Green” projects. Besides the above, in
year 2012, Mej (K) Dato’ Lim Hock Sing,
Executive Director of the Company
has demonstrated a great practice by
accepting the role as one of the Trustees
of the Sultan Ahmad Shah Environment
Trust (SASET). SASET is a non-profit
organisation which aims to protect and
restore the natural beauty, protecting
endangered species both plant and
animals and implementing sustainable
projects to allow the people to benefit
from the vast natural resources of
Pahang.
WORKPLACE
To accomplish corporate objectives
effectively, the Group ensure its
employee are strengthened through
continuous training and development.
Employees were encouraged to attend
seminars, talks, courses and job-
related skills organised by professional
institutions or arranged in-house jointly
with professionals with subject tailored
to different needs that are job related.
Employees of the Group were provided
with hospitalization insurance and
opportunity to have a direct ownership
of the Company through Employee
Share Option Scheme. They are also
entitled to participate in the property
purchase discount scheme of the
Group.
The Group recognises the importance
of non-work related activities amongst
colleagues. To foster interaction amongst
employees and build-up strong team
spirit, LBSclub was delegated with the
responsibilities to organise various
activities in achieving these objectives.
With initiatives from LBSclub, various
activities have been carried out. During
the year, these include monthly staff
birthday celebration, LBS Sports Day-3rd
Bowling Tournament, “The Egg Hunters”,
“Mummy’s Bookmark”, “LBS Gala Night
2012-Colours of Celebration”, “Photo
Taking contest on Uniquely Malaysian”,
“Design A Christmas Hat Contest” and
“LBS 1st Treasure Hunt”.
Corporate
Social
Responsibility
66. Corporate
Social
Responsibility
64 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
During the year, LBS has also
participated and sponsored for other
fund raising events, these include:-
- The Star’s new education pullout-
Steps-Up School Sponsorship
Programme 2012 to improve and
promote the English Language skills
among pupils of Chinese schools in
Year Four, Five and Six;
- Contributed funds into government
programme for integrated housing
and community centres for the
communities in Kampung Padang
Rumbia and Kampung Pulau Serai as
part of nationwide effort to eradicate
poverty;
- Cameron Highlands Educational,
Rehabilitation Informative Special
Home (C.H.E.R.I.S.H), a Non-
Governmental Organisation that
providing special educational and
rehabilitational services for children
and young adults with special needs
in Cameron Highlands; and
- Contributed to a working programme
organised by Y.B. Tan Sri Nor
Mohamed bin Yakcop to facilitate
assistance to the aboriginal families
in Cameron Highlands.
To contribute our part in ensuring
university and college students
remained relevant in the rapid changing
job market, LBS internship program
provides the students opportunities
to gain meaningful professional and
educational enrichment experiences
through working in the organisation.
During the year, 10 students from
University of Loughborough, UK have
participated in the program and they
were seconded to assist in the Project
Department, Sales and Marcom
Department and Construction division.
The Group continues with its effort to
help those in the middle income group
to own their dream homes easier and
simpler with its initiatives of building
medium cost homes for purchasers
from medium income group at many
of its mixed development projects
such as in Cameron Highlands, Bandar
Saujana Putra, The Lake Residence and
Bandar Putera Indah supporting the
Government’s effort to increase home
ownership among Malaysians.
Besides, a Quality Management
System, ISO-9001:2008 for Provision of
Engineering and Construction Works,
has been established and implemented
to enhance delivery of quality, reliable,
healthy, safety and environmental
friendly products and services to the
community.
67. To our contractors, tenders procedures
have been made clear to them so as the
award of contracts are done in a fair and
just manner. For better understanding
of the Group’s performance and
growth, the interested parties may
access to information through the
Group’s website at www.lbs.com.my or
news released from time to time.
Corporate
Social
Responsibility
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 65
THE MARKETPLACE
The Group recognises the importance
of building and maintaining positive
relationships with its customers,
suppliers and contractors.
To ours customers, the Group continues
to maintain an open communication
with its purchasers via Customer Care
Center, email at cs@lbs.com.my or
Company’s Facebook account @ Cust
Serv Lbs. Immediate reply and/or
action would be taken for enquires or
complaints received so as to ensure
customers’ satisfaction.
To our suppliers, the Group has set
out standards and ethics by which the
business is conducted. It ensures that
there is no bias and all suppliers will
be treated fairly without prejudice. The
Group values and derives considerable
and competitive advantage from
active cooperation with its established
suppliers in terms of innovation and
product development.
68. Corporate
Social
Responsibility
66 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
CSR in Overseas Operations
“Take Up Social Responsibility
Courageously, Build Green Environment
Together” is the operation direction
of Lakewood Golf Club and Zhuhai
International Circuit Ltd.
During the financial year, Lakewood
Golf Club has hosted a fund raising
project namely “仁爱之心,点滴之恩”.
The proceed raised was channeled to
an employee of the Club as medical
fee. Besides, the Club has organized
another fund raising project namely
“中秋节贫困慰问” to provide financial
assistance to the poor family to mitigate
their daily expenses or commitment.
To promote sports in youth group,
Lakewood Golf Club continues to
provide special rate of green fee for
the youth in their golf activities carried
out in the Club, this includes the “2012
National Junior Golf Master Challenge”.
For invited guests of members of the
club who are above 60 years old, special
rate of green fee would also be granted
to encourage for more participation of
senior players.
Furthermore, we have organized
“爱心协会现场义卖”, a joint initiative
fund raising program with Charity
Promotion Association of Zhuhai with
mission to provide aids and supports
to all charitable services, among others
funding for the poor student and single
mother, during the Pan Delta Race
events.
70. Corporate
Calendar
January 2012
March 2012
Media Briefing: Unveiled of 2012
business strategies
Monthly staff birthday cum Chinese New
Year celebration organised by LBSclub
“Gong Xi Fa Chai” from LBS in
conjunction with Internal Communication
Briefing
Signing Ceremony between MBSB & LBS
Bina Group Berhad for Financing Facilities
of RM124.6 Million
Monthly staff birthday celebration cum
My Valentine Gift Exchange organised by
LBSclub
LOVE response from staff to the call for
Pink & Red attire on Valentine’s Day
Managing Director, Dato’ Lim Hock
San in cover page of Public Listed
magazine
Students of SJK (C) Sungai Way, PJ happily received
angpow and mandarin oranges from Managing Director,
Dato’ Lim Hock San who is also the Chairman of the
Board of Governors of the school
Chinese New Year lion dance at office
68 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
February 2012
71. March 2012 (cont'd)
May 2012 June 2012
April 2012
LBS being one of the main sponsors for
the 29th Kiwanis Treasure Hunt
LBS Media Appreciation Night
Distinguish guests from China visited
LBS head office
Monthly staff birthday celebration cum
Mummy’s Bookmark organised by LBSclub
The Egg Hunters organised by LBSclub
LBS held its 12th Annual General Meeting
and Extraordinary General Meeting at Greens
II, Tropicana Golf & Country Club, Selangor
IR Roadshow by IR Team held in major
cities in both West and East Malaysia
LBS sponsored for the Star’s “Step Up School
Sponsorship Programme 2012”
Signing Ceremony of the Memorandum of
Understanding in Zhuhai for the proposed disposal of
the Group’s equity interests in two of its subsidiaries
involved in golf club operations and property
development in China
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 69
Corporate
Calendar
72. Corporate
Calendar
June 2012 (cont'd)
July 2012
September 2012
Media Briefing held after the
conclusion of 12th Annual General
Meeting
Monthly staff birthday celebration cum
Fastest Ketupat Wrappers organised by
LBSclub
Monthly staff birthday celebration cum
Fastest Way of Wearing Necktie Competition
in conjunction with Fathers’ Day organised by
LBSclub
Sultan Ahmad Shah Environment Trust
Emerald Charity Gala 2012
Monthly staff birthday cum
Hari Raya celebration
Scandinavian Garden Party in conjunction
with the official launch of Nautilus: 3-Storey
Superlink Homes at D' Island Residence
Asia Pacific Entrepreneur Award Internal Communication Briefing held
at SJK (C) Sungai Way, Petaling Jaya
LBS Gala Night 2012:
Colours of Celebration
70 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
73. October 2012
November 2012
December 2012
Real Estate & Home Deco Expo 2012 at
Sunway Pyramid Convention Centre
Visitors participate in “Living The Life
With LBS” photo taking competition
Monthly staff birthday celebration
cum Christmas Hat Design contest
organised by LBSclub
Prize presentation to the winners of
“Living the Life with LBS” photo taking
competition
Monthly staff birthday celebration cum Jasmine
Garland competition in conjunction with
Deepavali organised by LBSclub
Official Launch of SomerSquare,
Cameron Highlands
Official Launch of Cameron Golden Hills:
"The Way Life Should Be"
LBS First Treasure Hunt officiated by
Dato’ Lim Hock San
Corporate
Calendar
LBS BINA GROUP BERHAD ANNUAL REPORT 2012 71
The Star Property Fair at Kuala
Lumpur Convention Centre
74. 72 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Corporate
Governance
Statement
The Malaysian Code on Corporate Governance 2012 (“MCCG 2012”) was launched on 29 March 2012
and superseded the Malaysian Code on Corporate Governance 2007. It sets out broad principles and
specific recommendations on structures and processes which companies should adopt in making good
corporate governance an integral part of their business dealings and culture.
The Board of Directors (“Board”) of LBS Bina Group Berhad (“Company” or “Group”) recognises the
importance of adopting high standards of corporate governance within the Group in order to safeguard
stakeholders’ interest as well as enhancing shareholders’ value.
The Board wishes to disclose hereunder the manner in which the Group has applied the Principles
of MCCG 2012 and the extent to which it has complied with the Recommendations of MCCG 2012,
pursuant to Paragraph 15.25 of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia
Securities Berhad (“Bursa Malaysia”) except for matters specifically identified, the Board has generally
complied with the Recommendations set out in MCCG 2012 for the financial year ended 31 December
2012 (“FY 2012”).
Principle 1: Establish Clear Roles and Responsibilities
Clear Functions of the Board and Management
The Board delegates authority and vests accountability for the Group‘s day-to-day operations with the Senior Management
team led by the Managing Director to achieve the corporate objectives.
The Board delegates the resources management to the Senior Management team and has unrestricted access to any
information pertaining to the Company and the Group. As such, the Senior Management team would be invited to attend
the Board Meetings as and when necessary, to furnish with explanations and comments on the relevant agenda items
tabled at the Board Meetings or to provide clarification on issue(s) that may be raised by the Directors. The Board and the
Senior Management team work together to make decisions that will result in growth of the Company.
Clear Roles and Responsibilities
The Board recognises their roles and responsibilities of optimising the operations of the Company and its subsidiaries in
discharging of its fiduciary and leadership functions.
The Company is governed by the Board that has the overall responsibility in leading and determining the strategic
directions of the Company and its subsidiaries. The Board is primarily responsible for the Group’s overall strategic plans
for business performance, appraisal of major business proposals, overseeing the proper conduct of business, succession
planning, shareholders’ communication and ensuring adequate systems of internal control and risk management are in
place.
75. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 73
Corporate
Governance
Statement
Composition of the Board
The Board, as at the FY 2012 comprised of thirteen (13) members. Six (6) Independent Non-Executive Directors (including a
Vice Chairman), six (6) Executive Directors (including a Managing Director) led by Dato’ Seri Lim Bock Seng as the Chairman
and Non-Independent Non-Executive Director of the Company.
A brief profile of each director is presented on page 14 to 27 of this Annual Report.
The Company is led and managed by an experience Board comprising members of a wide range of experience in relevant
fields such as civil engineering, accountancy, banking, business entrepreneurship, information technology and public
service. The collective diverse professional background, skills, experience and knowledge of their respective fields have
successfully directed and supervised the Group’s business activities.
The Board also recognises the pivotal role of the Independent Non-Executive Directors in corporate accountability as they
provide unbiased and independent views, advice and judgement made to issues and decisions and act in the best interest
of the Group and its shareholders.
The present composition of the Board is in compliance with Paragraph 15.02(1) of MMLR of Bursa Malaysia where more than
1/3 of the board of directors of the Company is independent directors. The size and composition of the Board is appropriate
for proper functioning of the Board and provides effective check and balance in discharging its responsibilities.
Board Meetings
A pre-scheduled annual calendar of the Board Meetings is circulated to all the Board members at the beginning of each year
to facilitate the Directors to plan ahead. Board Meetings are usually held a minimum of five (5) times in a year. Additional
meetings convened as and when there are important and urgent decisions to be made, which required to be taken between
the scheduled meetings.
All the Directors have complied with the minimum 50% attendance requirement in respect of Board Meetings as stipulated
by the MMLR of Bursa Malaysia. During the FY 2012, a total of six (6) Board Meetings were held. The attendance of each
Director at the Board Meetings is tabulated as below:
Directors Attendance
Dato’ Seri Lim Bock Seng 6/6
Dato’ Kamaruddin bin Abdul Ghani 6/6
Dato’ Lim Hock San 6/6
Datuk Lim Hock Guan 5/6
Mej (K) Dato’ Lim Hock Sing 4/6
Datuk Lim Hock Seong 6/6
Lim Mooi Pang 6/6
Chia Lok Yuen 6/6
Tan Sri Dato’ Seri Utama (Dr) Haji Abu Hassan bin Haji Omar 5/6
Dato’ Wong Woon Yow 6/6
Maj Jen Dato’ Mohamed Isa bin Che Kak (B) 6/6
Mohd Fazil bin Shafie 5/6
Kong Sau Kian 6/6
76. 74 ANNUAL REPORT 2012 LBS BINA GROUP BERHAD
Corporate
Governance
Statement
Supply of Information
During the Board Meetings, the Independent Non-Executive Directors are also briefed on business outlook, major
acquisition and disposal of assets/investments and updates from business development including overseas operations.
All Directors are invited to deliberate and discuss on any issues as they deem fit. Where a potential of conflict arises in the
Group’s transactions involving any Director’s interest, such Director is required to declare his/her interest and abstain from
the decision making process. The proceedings of the meeting including all issues of concerns, discussions, deliberations,
substance of enquiry and responses, suggestions, decisions and conclusion made at the Board and Board Committee
Meetings are recorded in the minutes of the Board and Board Committee respectively forming part of the statutory record
of the Company upon adoption by the Board. Minutes of meetings of each Board Committee are also tabled to the Board
for deliberation.
Board Committees
The Board delegates specific responsibilities to the respective committees of the Board namely Audit Committee,
Nomination and Remuneration Committee, Employee Share Option Scheme (“ESOS”) Committee and Risk Management
Committee in order to enhance business and corporate efficiency and effectiveness. The Chairman of the respective Board
Committees will brief the Board on the matters discussed at the Committees’ meeting and minutes of these meetings
are circulated to the Board. Board Committees operate within their respective clearly defined terms of reference and
operating procedures, and the Board receives reports of their proceedings and deliberations with their recommendations.
The ultimate responsibility for decision making lies with the Board.
A summary of the operations of these Committees is set out below:-
a) Audit Committee
Please refer to the Audit Committee Report which forms part of this Annual Report for further details.
b) ESOS Committee
The ESOS Committee is entrusted with the tasks of administer and implement the ESOS in accordance with the Bye-
Laws of ESOS and in such manner it shall deem fit with the powers and authority conferred upon it by the Board and
exercise any discretion under the Bye-Laws with regards to the eligibility of employees to participate in the ESOS, share
offers and share allocations and to attend to such other matters as may be required in implementing the ESOS. There
were four (4) ESOS Meetings held during the FY 2012.
c) Nomination and Remuneration Committee (“NRC”)
The NRC consists of a majority of Independent Non-Executive Directors (“INEDs”). During the FY 2012, the NRC has
assessed the effectiveness of the Board as a whole and the Board Committees. The assessment parameters included
board structure, operations, roles and responsibilities, Chairman’s roles and responsibilities and the effectiveness of the
Board in its monitoring role.
Through Evaluation Panel (“Panel”) comprising Chairman of Board Meeting, Chairman of NRC and Chairman of
Audit Committee, the Board has assessed each Director’s contribution to the effectiveness of the Board. The Panel
conducts the assessment through the completion of assessment questionnaires. The assessment parameters include
attendance record, contribution to interaction, quality of input and understand of roles.
77. LBS BINA GROUP BERHAD ANNUAL REPORT 2012 75
Corporate
Governance
Statement
The NRC also reviews remuneration package comprising salaries, bonuses, benefits-in-kind and allowances of Executive
Directors and Senior Management staff annually to ensure that the remuneration packages are fair and reasonable. The
determination of the remuneration of the INEDs is a matter for the Board as a whole. There was one (1) NRC Meeting
held during the FY 2012.
d) Risk Management Committee (“RMC”)
The RMC was established to oversee the implementation of the risk management system and to ensure that the risk
management process is in place and functioning effectively. In fulfilling the primary objectives, the RMC is responsible
for identifying, evaluating, monitoring and reporting of risk areas and providing control measures, recommendations
and management action plans to mitigate such risks through periodic meetings and updates to the Audit Committee
in a timely basis.
During the FY 2012, the RMC has reviewed the implementation status of the Management Action Plan under the Risk
Register and identified new risks, and discussed the Risk Assessment Reports in relation to the transactions entered
into. There were three (3) RMC Meetings held during the FY 2012.
Appointment and Re-election of Directors
Appointments to the Board are made based on the recommendation of the NRC.
In accordance with the Company’s Articles of Association, one third (1/3) of the Board, including the Managing Director,
shall retire from office at least once in every three (3) years in compliance with the MMLR of Bursa Malaysia. These retiring
Directors shall be eligible for re-election. The Articles of Association also provides that a Director appointed by the Board
during the year shall also be subjected to re-election at the forthcoming Annual General Meeting (“AGM”) subsequent to
his appointment. Directors who have attained or over the age of seventy (70) years are mandatory to retire annually and may
offer themselves for re-election at the forthcoming AGM pursuant to Section 129(6) of the Companies Act, 1965. The names
of the Directors seeking for re-election are disclosed in the Notice of Annual General Meeting.
Formalised Ethical Standards through Code of Conduct and Business Ethics
The Group’s Code of Conduct and Business Ethics for Directors and employees continue to govern the standards of ethics
and good conduct expected from the directors and employees. Details as below:-
Directors’ Code of Conduct
The Code of Conduct for the Board provides guidance for proper standards of conduct, sound and prudent business
practices as well as standard of ethical behaviour for Directors, based on principles of integrity, responsibility, sincerity and
corporate social responsibility.
The Board currently observes the following Code of Conduct:-
(i) Companies Act, 1965; and
(ii) The Code of Ethics for Company Directors issued by the Companies Commission of Malaysia.