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  • W A R I S A N T C H O L D I N G S B E R H A D (424834-W)

    2017 a n n u a l r e p o r t

  • CONTENTS CORPORATE INFORMATION

    BUSINESS DIVISIONS

    CORPORATE STRUCTURE

    PRESIDENT’S STATEMENT

    MANAGEMENT DISCUSSION AND ANALYSIS

    FINANCIAL CHARTS

    5-YEAR FINANCIAL HIGHLIGHTS

    PROFILE OF DIRECTORS

    PROFILE OF KEY SENIOR MANAGEMENT

    SUSTAINABILITY STATEMENT

    CORPORATE GOVERNANCE OVERVIEW STATEMENT

    AUDIT COMMITTEE REPORT

    RISK MANAGEMENT AND INTERNAL CONTROL STATEMENT

    ADDITIONAL COMPLIANCE INFORMATION

    ANALYSIS OF SHAREHOLDINGS

    GROUP PROPERTIES

    STATEMENT ON DIRECTORS’ RESPONSIBILITY FOR PREPARING THE ANNUAL AUDITED FINANCIAL STATEMENTS

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    22

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    50

    DIRECTORS’ REPORT

    INDEPENDENT AUDITORS’ REPORT

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION

    CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

    CONSOLIDATED STATEMENT OF CASH FLOWS

    STATEMENT OF FINANCIAL POSITION

    STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

    STATEMENT OF CHANGES IN EQUITY

    STATEMENT OF CASH FLOWS

    NOTES TO THE FINANCIAL STATEMENTS

    STATEMENT BY DIRECTORS

    STATUTORY DECLARATION

    NOTICE OF ANNUAL GENERAL MEETING

    FORM OF PROXY

    PERSONAL DATA PROTECTION NOTICE

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    143

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    FINANCIAL STATEMENTS

  • Warisan TC Holdings Berhad (424834-W)2

    AUDIT COMMITTEE

    Dato’ Chong Kwong Chin Chairman

    Datuk Abdullah bin Abdul Wahab

    Lee Min On

    NOMINATING AND REMUNERATION COMMITTEE

    Datuk Abdullah bin Abdul Wahab Chairman

    Dato’ Chong Kwong Chin

    Lee Min On

    COMPANY SECRETARIES

    Ang Lay Bee Chang Pie Hoon

    REGISTERED OFFICE

    62-68, Jalan Sultan Azlan Shah 51200 Kuala Lumpur Malaysia Telephone : +603 4047 8888 Facsimile : +603 4047 8636

    CORPORATE OFFICE

    No. 15-3, Tingkat 3 Jalan Ipoh Kecil 50350 Kuala Lumpur Malaysia Telephone : +603 4047 9733 Facsimile : +603 4047 9722 Email : corporate@warisantc.com Website : www.warisantc.com.my

    SHARE REGISTRARS

    Tricor Investor & Issuing House Services Sdn Bhd Unit 32-01, Level 32, Tower A Vertical Business Suite, Avenue 3 Bangsar South No. 8, Jalan Kerinchi 59200 Kuala Lumpur Malaysia Telephone : +603 2783 9299 Facsimile : +603 2783 9222 Email : is.enquiry@my.tricorglobal.com

    AUDITORS

    Mazars PLT Wisma Selangor Dredging 11th Floor, South Block 142-A, Jalan Ampang 50450 Kuala Lumpur Malaysia

    STOCK EXCHANGE LISTING

    Main Market of Bursa Malaysia Securities Berhad (Listed on 15 December 1999)

    DIRECTORS

    DATO’ TAN HENG CHEW President

    TAN KENG MENG Chief Executive Officer

    CHIN TEN HOY Senior Vice-President, Mayflower Group

    DATUK ABDULLAH BIN ABDUL WAHAB Senior Independent Non-Executive Director

    DATO’ CHONG KWONG CHIN Independent Non-Executive Director

    LEE MIN ON Independent Non-Executive Director

    Warisan TC Holdings Berhad2

    CORPORATE INFORMATION

  • Annual Report 2017 3Annual Report 2017 3

    Inbound tour

    Outbound tour

    Corporate travel

    Airline ticketing

    Car and coach rental

    equipment, forklift, factory scrubber and sweeper

    equipment (road, earthwork, quarry and mining)

    golf & turf equipment

    TRAVEL & CAR RENTAL

    MACHINERY

    AUTOMOTIVE

    OTHERS

    Annual Report 2017 3

    BUSINESS DIVISIONS

  • Warisan TC Holdings Berhad (424834-W)4

    100% 100% 100% 100%

    100% 100% 100% 100%

    100% 100% 100% 100%

    TRAVEL & CAR RENTAL

    MACHINERY

    AUTOMOTIVE

    OTHERS

    Note: Inactive and dormant companies are excluded from the corporate structure.

    W A R I S A N T C H O L D I N G S B E R H A D (424834-W)

    50%

    55%55%

    50%

    100%100%

    100%100%

    100%100%

    100%100%

    100%100%

    100%

    100%100%

    100%

    100%

    100%100%100%100%

    100% 100%100%100% 100%100%

    100%100% 100%100%

    100%

    100%100%

    100%100%

    70%

    80%

    Mayflower Online Sdn Bhd

    M A T Tours And Travel (Cambodia) Pte Ltd

    Gocar Mobility Sdn Bhd

    Mayflower Holidays (Borneo) Sdn Bhd

    Mayflower Car Rental Sdn Bhd

    Mayflower Holidays Sdn Bhd

    Mayflower-My 2nd Home (MM2H) Sdn Bhd

    Mayflower Corporate Travel Services Sdn Bhd

    TCIM Sdn Bhd Jentrakel Sdn Bhd

    Angka-Tan Motor Sdn Bhd

    Kereta Komersil Seladang (M) Sdn Bhd

    Warisan Captive Incorporated

    Comit Communication Technologies (M) Sdn Bhd

    Warisan TC Automotive Manufacturers (M) Sdn Bhd

    Grooming Expert Sdn Bhd

    MUV Marketplace Sdn Bhd

    Shiseido Malaysia Sdn Bhd

    Tung Pao Sdn Bhd

    MUV Solutions Sdn Bhd

    Wacoal Malaysia Sdn Bhd

    Warisan TC Management Services Sdn Bhd

    Tan Chong Apparels Manufacturer Sdn Bhd

    CORPORATE STRUCTURE

  • Annual Report 2017 5

    PRESIDENT’S STATEMENT

    It has been an encouraging year for the Group as we managed to turn around the Group’s performance within a short span of time in spite of the ongoing challenges faced throughout the year such as an uncertain economic outlook, tight credit market, inflation and cautious customer spending. The Group continues to strengthen and improve on its core businesses units and at the same time make bold but important decision to venture into new business opportunities and new market to further enhance and diversify its future earnings. However, the latter new business ventures will require a gestation period and resources before they can contribute positively to the Group’s results. Our efforts and resilience towards the various challenges are beginning to bear fruit as proven by the positive results in 2017.

    The Group has continued to embrace the importance of technologies and acknowledged the disruptive impact of technologies upon businesses.

    Annual Report 2017 5

    Dear Shareholders

    On behalf of the Board, I am pleased to present the Annual Report of Warisan TC Holdings Berhad for the financial year ended 31 December 2017.

    With this in mind, Mayflower Online Sdn Bhd (“Mayflower Online”) was incorporated in July 2017 to undertake and pursue the business of providing multiple travel products and services via our one-stop electronic and web platform. In November 2017, Mayflower Online officially launched its online platform in Mid Valley, Petaling Jaya with much fanfare.

    The Group’s joint venture business in Thailand, Mayflower Saha Travel (Thailand) Co. Ltd. (formerly known as Mayflower Saha (Thailand) Co. Ltd.), had obtained its business licences towards the end of 2017 and is expected to contribute positively to our future income.

    Despite the expected gestation period from such new business ventures which may have short term adverse impact on our Group’s results, we strongly believe that these are the essential steps that are necessary for the sustainability and long-term growth of the Group.

    Financial Performance

    Group’s revenue increased by 10% to RM490.8 million from RM446.1 million in prior year. In line with the increase in revenue, the Group recorded a profit before tax of RM8.6 million as compared to a loss before tax of RM0.9 million in prior year. The Group’s Travel and Car Rental and Machinery divisions augmented by the continuous cost rationalisation measures, have contributed to such favourable results.

    The Group recorded profit after tax of RM4.5 million as compared to a loss after tax of RM5.6 million primarily due to the higher revenue generated during the year.

  • Warisan TC Holdings Berhad (424834-W)6

    PRESIDENT’S STATEMENT cont’d

    Dividends

    The Board recommends a final single tier dividend of 3.0 sen per share for the financial year ended 31 December 2017 which will be subjected to shareholders’ approval at the forthcoming Annual General Meeting. Combined with the interim single tier dividend of 1.0 sen per share, which was paid in September 2017, the total dividend per share for the year is 4.0 sen.

    Outlook

    The forecasted positive outlook from the 2018 National Budget, the expected strengthening of Ringgit against major currencies and the Government’s continuous efforts to spend on various infrastructure projects in Malaysia have provided the Group with an opportunity to improve on its result in 2018.

    However, we will remain cautious on the uncertainties that could arise from the economic and geopolitical challenges globally. The tight credit market and expected increase in US Fed interest rates which will subsequently result in a corresponding increase on Malaysia’s interest rates will continue to pose a major challenge to our business.

    Technology adoption, geographical expansion and continuous process improvement will remain our key focus in our stride towards long term business sustainab