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Transcript of STANDING TALL - listed company ... Telekom Malaysia Berhad, MSD Digital Intelligence Sdn Bhd,...

  • TALL STANDING

    ANNUAL REPORT 2018

  • CONTENTS GDEX Positioning Statement

    Corporate Information

    Group Structure

    Chairman’s Statement

    Connecting People and Possibilities

    Chief Executive Officer’s Statement

    Management Discussion and Analysis

    Embarking On Accelerated Expansion

    Board of Directors

    Directors’ Profile

    Key Senior Management

    Key Senior Management Profile

    Building a Well-trained and Motivated Workforce

    Corporate Sustainability Report 2018

    Corporate Governance Overview Statement

    Additional Compliance Information

    Statement on Risk Management and Internal Control

    Audit and Risk Management Committee Report

    5-Year Group Financial Highlights

    Directors’ Responsibility Statement

    Financial Statements

    Analysis of Shareholdings

    Analysis of Warrants-B Holdings

    Group Property Particulars

    Notice of Annual General Meeting

    Proxy Form

    Our Stations

    1

    2

    3

    4

    8

    10

    16

    22

    24

    26

    30

    32

    36

    38

    49

    63

    65

    70

    74

    75

    76

    168

    172

    175

    176

  • REACHING FOR THE SUN

    GDEX Positioning Statement

    In the dense jungles of Borneo, there stands a tree which towers majestically above all others. Known as the Yellow Meranti, it is reputed to be the tallest tropical hardwood tree in the world.

    Soaring 89.5 meters with a canopy cover of some 40 meters wide, the Yellow Meranti is not just a wonder of nature but also an invaluable source of food and shelter to the surrounding flora and fauna.

    To soar above the rest, the Yellow Meranti must be able to tap into all of nature’s resources. Its roots must dig deep into the ground to anchor its massive weight and height while its trunk must be sturdier and stronger than the rest to withstand the storms of nature.

    So it is with GDEX. In the gathering intensity of competition, it must become even stronger and aggressive in growing its infrastructure, systems and processes, manpower and delivery fleet. Only then, it can aspire to be the fastest growing and most agile player in the express delivery industry.

    The Yellow Meranti and GDEX. Striving to rise above all challenges.

  • BOARD OF DIRECTORS

    DATO’ CAPT. AHMAD SUFIAN Independent Non-Executive Chairman

    TEONG TECK LEAN Managing Director/ Group Chief Executive Officer

    LIM CHEE SEONG Executive Director/Chief Financial Officer

    LEE KAH HIN Executive Director

    LIEW HENG HENG Independent Non-Executive Director

    ADI ARMAN BIN ABU OSMAN Independent Non-Executive Director

    WOO KENG LEONG Non-Independent Non-Executive Director

    CHUA KHING SENG Non-Independent Non-Executive Director

    AUDIT AND RISK MANAGEMENT COMMITTEE

    Liew Heng Heng (Chairman) Dato’ Capt. Ahmad Sufian Adi Arman bin Abu Osman

    COMBINED NOMINATION AND REMUNERATION COMMITTEE

    Adi Arman bin Abu Osman (Chairman) Dato’ Capt. Ahmad Sufian Liew Heng Heng

    COMPANY SECRETARIES

    Tai Yit Chan (MAICSA 7009143) Tan Ai Ning (MAICSA 7015852)

    AUDITORS

    Deloitte PLT (LLP0010145-LCA) Chartered Accountants (AF 0080) Level 16, Menara LGB 1 Jalan Wan Kadir Taman Tun Dr. Ismail 60000 Kuala Lumpur

    REGISTERED OFFICE

    Lot 6.05, Level 6, KPMG Tower 8 First Avenue, Bandar Utama 47800 Petaling Jaya Selangor Darul Ehsan Tel : 03-7720 1188 Fax : 03-7720 1111

    ADVOCATES & SOLICITORS

    Lee & May B-12-7, Unit 7 12th Floor, Block B Megan Avenue II Jalan Yap Kwan Seng 50450 Kuala Lumpur Tel : 03-2163 3816 Fax : 03-2161 1816

    CORPORATE HEAD OFFICE

    19, Jalan Tandang 46050 Petaling Jaya Selangor Darul Ehsan Tel : 03-7787 2222 Fax : 03-7787 6686

    SHARE REGISTRAR

    Boardroom Corporate Services (KL) Sdn Bhd Lot 6.05, Level 6, KPMG Tower 8 First Avenue, Bandar Utama 47800 Petaling Jaya Selangor Darul Ehsan Tel : 03-7720 1188 Fax : 03-7720 1111 PRINCIPAL BANKER

    Malayan Banking Berhad (3813-K)

    STOCK EXCHANGE LISTING

    Main Market of Bursa Malaysia Securities Berhad

    STOCK NAME AND CODE

    GDEX : 0078

    WARRANT NAME AND CODE

    GDEX-WB : 0078WB

    CORPORATE WEBSITE

    www.gdexpress.com

    GD EXPRESS CARRIER BHD (630579-A)2

    CORPORATE INFORMATION

  • ANNUAL REPORT 2018 3

    Listed on Main Market of Bursa Malaysia

    Securities Berhad

    GD EXPRESS CARRIER BHD (630579-A)

    INVESTMENT HOLDING

    GD Express Sdn Bhd Express Delivery

    100%

    GD Express (Singapore) Pte Ltd Express Delivery

    100%

    GDEX Regional Alliance Pte Ltd Dormant

    100%

    GD Valueguard Sdn Bhd Insurance Services

    100%

    GD Venture (M) Sdn Bhd Transportation Services

    100%

    GDEX SEA Sdn Bhd (formerly known as GD Technosystem Sdn Bhd) Investment Holding

    100%

    GD Facilities and Assets Management Sdn Bhd Facilities & Assets Management

    100%

    GD Logistics (M) Sdn Bhd Logistics Operations

    100% GD Distribution Services Sdn Bhd Logistics Operations

    100% GD Secured Solutions Sdn Bhd Logistics Operations

    100% GD Customised Solution Sdn Bhd Logistics Operations

    100%

    Incorporated in Singapore

    GDEX Properties Sdn Bhd (formerly known as Abric Properties Sdn Bhd) Properties Investment Holding

    100%

    Locally Incorporated

    Associate

    Web Bytes Sdn Bhd Software Solutions

    30%

    GROUP STRUCTURE

  • Chairman

    DATO’ CAPT. AHMAD SUFIAN

    GD EXPRESS CARRIER BHD (630579-A)4

  • STATEMENT CHAIRMAN’S

    ANNUAL REPORT 2018 5

    DEAR SHAREHOLDERS

    I am pleased to present my fourteenth annual statement to our fellow stakeholders for the financial year ended 30 June 2018.

    The Malaysian economy continued to improve, buoyed by firmer oil prices and stronger exports. The steady recovery in oil prices, from around US$55 per barrel to above US$70 per barrel in mid-2018 bodes well as it placed more resources for developing the country. Better demand of exports (commodities, electrical and electronic products) contributed to a healthier trade balance for Malaysia. The Ringgit hovers around RM4.00 against the US dollar benchmark.

    The express delivery business continued to enjoy strong growth due to the stronger demand of E-commerce. This heightened demand resulted in intense competition from the emergence of many new deep-pocketed players. Many local logistics firms joined the fray by adding last mile delivery to their portfolios. Despite these challenges, our Group continued to perform up to expectations, although our business margins were under increasing pressure.

  • GD EXPRESS CARRIER BHD (630579-A)6

    DIVIDEND PAYMENT

    The board of directors has declared a first and final dividend of 0.20 sen per share for every existing share. The board has also decided to continue with its dividend reinvestment plan which provides an option for the dividends received to be converted into shares.

    SIGNIFICANT DEVELOPMENTS

    In January this year, the Group embarked on an entrepreneurship programme tailored especially for the rural community. Called “Kampung By GDEX”, this programme, a collaborative effort between Malaysian Communications and Multimedia Commission (MCMC), Telekom Malaysia Berhad, MSD Digital Intelligence Sdn Bhd, Malaysia Internet Center and GDEX, aims to promote and stimulate E-commerce activities in the rural areas.

    “Kampung By GDEX” was created to help small business owners and entrepreneurs in terms of logistics, whereby GDEX offers express delivery solutions to them to promote their products to a bigger market place. This initiative will not only provide better access to express delivery services to the rural people, small business owners and entrepreneurs but also assist them to increase their earnings.

    In April this year, the Group launched the GDEX Academy in collaboration with the Jabatan Pembangunan Kemahiran Malaysia (Department of Skills Development Malaysia) which is under the Ministry of Human Resources. This Academy, to be manned by certified Operations personnel in the Group, will provide first hand on-the-job training for those interested in building a career in the fast-growing express delivery industry.

    In mitigating the intense competition and growing demand for express delivery services, the Group went on an accelerated expansion programme. We increased the workforce, expanded the delivery fleet, enlarged our network by adding more new branches and increased our warehouse space. A new E-commerce and Linehaul Hub was also opened in Kuching, Sarawak in October 2017. This new hub will not only increase our express delivery footprint but also enhance the development of the digital economy and E-Commerce in Sarawak.

    The Group continued to affirm and strengthen its various regional tie-ups with its strategic partners. Our relations and collaboration with these partners continue to flourish with the constant sharing of information and exchange of ideas.

    CHAIRMAN’S STATEMENT cont’d

  • ANNUAL REPORT 2018 7

    CHALLENGES AND OPPORTUNITIES

    With competition in the express delivery industry growing stiffer by the day, the Group must