STANDING TALL - listed company ... Telekom Malaysia Berhad, MSD Digital Intelligence Sdn Bhd,...
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ANNUAL REPORT 2018
CONTENTS GDEX Positioning Statement
Connecting People and Possibilities
Chief Executive Officer’s Statement
Management Discussion and Analysis
Embarking On Accelerated Expansion
Board of Directors
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
Analysis of Shareholdings
Analysis of Warrants-B Holdings
Group Property Particulars
Notice of Annual General Meeting
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
Tai Yit Chan (MAICSA 7009143) Tan Ai Ning (MAICSA 7015852)
Deloitte PLT (LLP0010145-LCA) Chartered Accountants (AF 0080) Level 16, Menara LGB 1 Jalan Wan Kadir Taman Tun Dr. Ismail 60000 Kuala Lumpur
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
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
GD EXPRESS CARRIER BHD (630579-A)2
ANNUAL REPORT 2018 3
Listed on Main Market of Bursa Malaysia
GD EXPRESS CARRIER BHD (630579-A)
GD Express Sdn Bhd Express Delivery
GD Express (Singapore) Pte Ltd Express Delivery
GDEX Regional Alliance Pte Ltd Dormant
GD Valueguard Sdn Bhd Insurance Services
GD Venture (M) Sdn Bhd Transportation Services
GDEX SEA Sdn Bhd (formerly known as GD Technosystem Sdn Bhd) Investment Holding
GD Facilities and Assets Management Sdn Bhd Facilities & Assets Management
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
Incorporated in Singapore
GDEX Properties Sdn Bhd (formerly known as Abric Properties Sdn Bhd) Properties Investment Holding
Web Bytes Sdn Bhd Software Solutions
DATO’ CAPT. AHMAD SUFIAN
GD EXPRESS CARRIER BHD (630579-A)4
ANNUAL REPORT 2018 5
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
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.
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