Business Overview

4. INFORMATION ON OUR GROUP (Cont’d) 4. INFORMATION ON OUR GROUP (Cont’d) The details of the Offerors are as follows: Name of Offerors  No. of Offer Shares  Ng Chun Kooi  4,007,404  Ng Kit Heng  1,804,002  Ow Chee Cheoon  1,804,002  Shahnum Niza Bin Yahya  5,316,196  Meriah Binti Nasibi  4,007,396  Ng Chun Seong  7,287,666  Lim Ann Liang  4,882,787  Bernard Lim Soon Chiang  890,547  Total  30,000,000
Further details on the Offer For Sale are set out in Section 2.3.2 of this Prospectus. 4.3.6 Listing on Bursa Securities We will make an application to Bursa Securities for the admission of our Shares into the Official List and the listing of and quotation for our entire enlarged issued and paid-up share capital on the Main Market of Bursa Securities. 4.4 OVERVIEW OF OUR GROUP’S BUSINESS ACTIVITIES, PRODUCTS AND SERVICES Construction is our Group’s core business activity. Our Group is involved in building construction and civil engineering construction sub-sectors such as the construction of commercial buildings, residential construction, roads, bridges, flyovers, interchanges, schools and special purpose buildings. In order to complement and diversify our construction activities, we are also involved in property development activities via our subsidiaries, the AQRS Group. We believe that our involvement in property development is beneficial to our Group as it leverages on our core expertise in construction, enhances our earnings and creates synergistic benefits to our Group as we are able to undertake the construction of our property development projects and hence, reduce our overall costs and directly control the quality of our property development projects. While our head office is based in Klang Valley, we do not restrict our operations to a particular area and have successfully undertaken projects in various states and places in Malaysia, such as Kuala Lumpur, Selangor Darul Ehsan, Perak Darul Ridzuan, Pulau Pinang, Pahang Darul Makmur, Kedah Darul Aman, Johor Darul Takzim, Terengganu Darullman and Sabah. Presently, our Group adopts a policy of being selective when tendering for private sector projects due to the credit risk and unstable payment patterns frequently associated with private sector projects. Our management believes that this policy has helped our Group avoid significant levels of borrowings and hence, we have operated with low gearing levels. 4. INFORMATION ON OUR GROUP (Cont’d) Further information on our Group’s 2 main business activities are set out below: (i) Building and Civil Engineering Construction Our core business is in building and civil engineering construction. Our Construction Division has been awarded with CIDB Grade G7 licences which allows us to participate in tenders irregardless of contract values. In addition, we are also able to undertake Government and Government related construction projects as the main contractor, given that our subsidiary, Gabungan Strategik has a PKK Class A licence. Our building construction services includes the construelion of commercial buildings, residential buildings, schools and special purpose buildings. We also provide civil engineering construction services which includes the construction of roads, bridges. flyovers and interchanges. As we are capable of undertaking various types of construction services, we are able to provide the necessary construelion services that are required to develop a whole development scheme, from the initial stages of the site clearing up. till the stage of completion of the building construction and supporting infrastructure. Furthermore, we also provide design and build services upon our customers’ requests. As part of our on-going effort to keep up with recent technologies and new methods of construelion, we are also able to provide construelion services using IBS components. The IBS is a system of construction that uses pre-cast or pre­fabricated components. This system mostly involves work off-site than on-site as the production of the pre-casts and the pre-fabricated steels would be produced in the faelory before being transported to the construelion site for on-site installation. The use of IBS components is encouraged by the Government and is being increasingly used as its usage reduces site labour, controlled quality, safer construelion sites, minimal wastage and cleaner environment. We provide construelion services to both the private and public seelor. Most of our completed and ongoing projects originate from the Government and GLCs. However, we intend to aelively participate in the PPP initiative programmes introduced in the 10MP. Please refer to Section 4.20 of this Prospectus for further details of our future plans and strategies. As at the LPD, there is no significant new or proposed products and services to be introduced. Further details of our completed and on-going construelion projects are set out in Section 4.5.1 of this Prospectus. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 4. INFORMATION ON OUR GROUP (Cont’d) (ii) Property development Our Property Development Division is principally focused on residential and commercial developments. We have established ourselves as a niche lifestyle property developer encompassing environmentally friendly concepts into our projects which have been well received, as evidenced by the successful launch of our residential and commercial development projects i.e. “Contours”, comprising 41 units of “Courtyard Villas Gated Community” with 1 unit clubhouse, a TNB substation and a security booth in Ulu Kelang, Gombak, Selangor Darul Ehsan, “Gombak Grove”, comprising 25 units of “zero-lot” bungalows together with a TNB substation in Setapak, Gombak, Selangor Darul Ehsan, “The Allium”, comprising 2 blocks of office of 11 and 22 floors respectively and 1 block of 3­storey commercial building with 8-storey basement carpark in Damansara Perdana, Petaling Jaya, Selangor Darul Ehsan and “The Avenue @ Kinrara Uptown” comprising 177 units of shops and 1 unit of shopping complex together with all necessary infrastructure and public utilities in Taman Lestari Perdana, Bandar Puteri Permai, Selangor Darul Ehsan. We distinguish ourselves from our competitors by offering unique designs, introducing new environmental friendly technologies and concepts together with attention to detail which meets the needs and expectations of our customers. As at the LPD, our on-going and proposed property development projects are: (a) on-going property development projects
• a residential development project in Ulu Kelang, Gombak, Selangor Darul Ehsan known as “Contours”;
• a residential development project in Setapak, Gombak, Selangor Darul Ehsan known as “Gombak Grove”;
• a commercial development project in Damansara Perdana, Petaling Jaya, Selangor Darul Ehsan known as “The Altium”; and
• a commercial development project in Taman Lestari Perdana, Bandar Puteri Permai, Mukim & Daerah Petaling, Selangor Darul Ehsan, known as “The Avenue @ Kinrara Uptown”;

 

(b) proposed property development projects
• proposed commercial development in Permas Jaya, Johor Bahru, Johor Darul Takzim. Details of this project has yet to be finalised as at the LPD;
• proposed commercial development in Seberang Perai Tengah, Pulau Pinang. Details of this project has yet to be finalised as at the LPD;
• proposed commercial development in Bandar Sunway, District Petaling, Selangor Darul Ehsan known as “Stylo”; and
• proposed residential development in Johor Bahru, Johor Darul Takzim known as “One Temenggong”.

 

Further details of our completed, on-going and proposed property development projects are set out in Section 4.5.2 of this Prospectus. I Company No: 912527-A I 4. INFORMATION ON OUR GROUP (Cont’d) 4.5 PRODUCTS AND SERVICES 4.5.1 Construction projects Our Group has undertaken various projects in the past which includes commercial buildings, residential buildings, schDDls and GDvernment bUildings and cDmplexes. We alsD prDvide civil engineering cDnstructiDn services which includes the cDnstructiDn Df rDads, bridges, flyDvers and interchanges. The table belDw sets DUt Dur GrDup’s prDjects with cDntract values Df RM1 0 milliDn and belDw each: Item  FYE 2009  FYE 2010  FYE 2011  Number Df cDntracts  6  6  1  Average value Df cDntracts (RM’OOO)  1,399  2,778  6,999  TDtal value Df cDntracts (RM’OOO)*  8,392  16,667  6,999
NDte: * Included in the revenue recognised in the financial statements Df Dur respective subsidiaries fDr the respective financial years under

 

 

review.
The tables belDw sets DUt details Df Dur GrDup’s cDmpleted and Dn-gDing cDnstructiDn prDjects as at the LPD with cDntract values Df mDre than RM10 milliDn each: . (i) Completed Construction Projects Project and Location Construction of infrastructure wDrks and bridge fDr Persiaran Sultan in Shah Alam, SelangDr Darul Ehsan I Company No: 912527-A I
Name Customer  of  Syarikat Muhibah Perniagaan Pembinaan Sdn Bhd  &
Value of Contract (RM’OOO)  Commencement DatelCompletion Date  Main Contractorl Subsidiary  Sub-contractor*  Basis for Award of Project  16,516  28.12.19961 09.08.1998  MDtibina  **  NegDtiatiDn

4. INFORMATION ON OUR GROUP (Cont’d)
and NKVE and in Jaya, Darul of
Name of Customer Syarikat Muhibah Perniagaan & Pembinaan Sdn Bhd Gamuda Berhad, a company which is iisted on Bursa Securities Value of Contract (RM’OOO)  Commencement Date/Completion Date  Main Contractor/ Subsidiary  Sub-contractor’  Basis for Award of Project  13,844  15.01.1999/ 31.12.2001  Motibina  (i) Dwisentral (M) Sdn Bhd (ii) Wn Engineering & Construction Sdn Bhd (iii) Mako Engineering &COil) (iv) Sena Letrik (M) Sdn Bhd (v) Gumi Asli Elektrikai Sdn Bhd (vi) Millennium Release Sdn Bhd (vii) Syarikat Lian Aik Tractor Works (viii) Vspro Corporation Sdn Bhd (ix) Leader Response Sdn Bhd (x) Js Subang Enterprise  Negotiation  10,722  19.01.2000/ 18.09.2000  Gabungan Strategik  (i) Hi-GroW1h Construction Sdn Bhd (ii) Master Pave Sdn Bhd (iii) Binaform Sdn Bhd .  Tender

I Company No: 912527-A I 4. INFORMATION ON OUR GROUP (Cont’d) Project and Location Construction of 48 double-storey semi-detached houses at Kota Kemuning, Section 31, Shah Alam, Selangor Darul Ehsan Design, construction and completion of Komp/eks Rakan Name of Customer Muda  in  Baling,  Kedah  Darul  Aman

HICOM-Gamuda Development Sdn Bhd (a subsidiary of Gamuda Berhad, which is listed on Bursa Securities) Kementerian Belia dan Sukan Value of  Commencement  Main  Contract  Date/Completion  Contractor/  (RM’OOO)  Date  Subsidiary  12,999  06.04.2001/  Gabungan  09.11.2002  Strategik  19,000  01.05.2003/  Gabungan  16.06.2005  Strategik
Sub-contractor’ (i)  Astral Electrical (M) Sdn  Bhd  (ii)  Beauceil Plaster Ceiling  (iii)  Darizcon Sd n Bhd  (iv)  Hing Loong Tiling &  Construction Sdn Bhd  (v)  ICS Spray Tiles &  Construction  (vi)  Klipseal Builders (M) Sdn  Bhd  (vii)  Master Materials  Contracting  (viii)  Shing Huat Rooftruss  Sdn Bhd  (ix)  Tai Tee Cermin &  Aluminium Sdn Bhd  (x)  Tukang Besi Soon Lee  (i)  Astral Electrical (M) Sdn  Bhd  (ii)  Bestworld Equipment  Sdn Bhd  (iii)  Frontstar Construction  Sdn Bhd  (iv)  Liteframes Sdn Bhd  (v)  Fat Kilang Besi  (vi)  Imaprima Sdn Bhd  (vii)  Prime CIS Sdn Bhd  (viii)  Pesona Resources  (ix)  Throvest Piping  Engineering Sdn Bhd  (x)  Yap Metal Roofing  System Co
Basis for Award of Project  Tender  Negotiation

I Company No: 912527-A I 4. INFORMATION ON OUR GROUP (Cont’d) Project and Location Construction of a 3-storey office block at Ladang Sungai Sedu, Jalan Kelang Banting, Tanjung Dua Belas, Kuala Langat, Selanlior Darul Ehsan Construction of 67 units of 2­storey office buildings and 24 units of 3-storey office building in Kota Damansara, Name of Customer Petaling  Jaya,  Selangor  Darul  Ehsan

Golden Hope Builder’s Sdn Bhd (currently known as Sime Darby Builders Sdn Bhd, a subsidiary of Sime Darby Berhad which is listed on Bursa Securities) Masprima Development Sdn Bhd I Company No: 912527-A I
Value of Contract (RM’OOO)  Commencement Date/Completion Date  Main Contractor/ Subsidiary  Sub-contractor’  Basis for Award of Project  17,288  04.06.2004/ 28.01.2006  Gabungan Strategik  (i) Astral Electrical (M) Sdn Bhd (ii) BDC Corporation Sdn Bhd (iii) Eastern Pretech (M) Sdn Bhd (Iv) Express Engineering Sdn Bhd (v) Ina; Prosper Sdn Bhd (vi) Imaprima Sdn Bhd (vii) PJD Concrete Products Sdn Bhd (viii) Syabanas Sdn Bhd (ix) Sigma Elevator (M) Sdn Bhd (x) Setech Engineering Sdn Bhd  Tender  30,028  01.10.2005/ 29.08.2007  Motibina  (i) Syabanas Sdn Bhd (ii) Kejuruteraan Elektrik Kencana Sdn Bhd (iii) WII Construction (iv) Winglass Aluminium Sdn Bhd (v) Prima Trade Network Sdn Bhd (vi) Ken Lit Resources Sdn Bhd (vii) Yew Fait Construction (KL) Sdn Bhd (viii) Forest House Sdn Bhd (ix) Shing Huat Rooftruss Sdn Bhd (x) Brilliant Builder Sdn Bhd  Negotiation
4. INFORMATION ON OUR GROUP (Cont’d)
Name of Customer Usahasama SPNB-LTAT Sdn Bhd FAMA
Value of Contract (RM’OOO)  Commencement DatelCompletion Date  Main Contractorl Subsidiary  Sub-contractor’  Basis for Award of Project  32,925  20.04.20051 31.12.2007  Gabungan Strategik  (i) Astral Electrical (M) Sdn Bhd (ii) Acoustro Corporation Sdn Bhd (iii) Canweld Construction Works (iv) Tai Tee Cermin & Aluminium Sdn Bhd (v) Kejuruteraan Letrik KB Sdn Bhd (vi) Langsutra Sdn Bhd (vii) Le-Xion Waste Engineering Sdn Bhd (viii) Imaprima Sdn Bhd (ix) Roof Builder Resources Sdn Bhd (x) RV Woods Sdn Bhd  Tender  27,500  17.10.20071 22.09.2009  Gabungan Strategik  (i) Fire Ace Sdn Bhd (ii) HKS Construction (iii) JK Piling Sdn Bhd (iv) Jotun (Malaysia) Sdn Bhd (v) Tai Tee Cermin & Aluminium Sdn Bhd (vi) KONE Elevator (M) Sdn Bhd (vii) Lumut Piling (viii) Pembinaan HS Heng Sing Sdn Bhd (ix) Sumisteel Marketing Sdn Bhd (x) Tai Leong Industries Trading Sdn Bhd  Negotiation
4. INFORMATION ON OUR GROUP (Cont’d) 4. INFORMATION ON OUR GROUP (Cont’d)
Name Customer Syarikat Muhibah Perniagaan Pembinaan Sdn Bhd  of &  Syarikat Muhibah Perniagaan Pembinaan Sdn Bhd  &
Value of Contract (RM’OOO)  Commencement Date/Completion Date  Main Contractorl Subsidiary  Sub-contractor’  Basis for Award of Project  11,557  22.01.20081 01.02.2010  Motibina  (i) Kim Master Tiling & Builders Sdn Bhd (ii) Dasar Pintar Sdn Bhd (iH) Demetal Construct”ion Sdn Bhd (Iv) H.H. Enterprise (v) Binaform Sdn Bhd (vi) Wawasan Dengkil Sdn Bhd (vii) Infra System (viii) Megamas Piling (ix) Ekata Construction (x) Jy Infra Construction  Negotiation  13,674  03.01.20081 01.02.2010  Motibina  (i) Dasar Pintar Sdn Bhd (ii) Infra System (iii) Kim Master Tiling & Builders Sdn Bhd (iv) Js Subang Enterprise (v) Binaform Sdn Bhd (vi) Wawasan Dengkil Sdn Bhd (vii) Jy Infra Construction (viii) S & E Equipments Rental Sdn Bhd (ix) Demetal Construction Sdn Bhd (x) Megamas Piling  Negotiation
Project and Location Upgrade of Seremban-Senawang federal road in Senawang, Negeri Sembiian Darul Khusus Design and construction of 43 additional school blocks using the IBS construction method in Selangor Darul Ehsan and Kuala Lumpur ­Name of Customer
JKR Kementerian Pelajaran Maiaysia
Value of  Commencement  Main  Contract  Date/Completion  Contractor/  (RM’OOO)  Date  Subsidiary  110,000  01.10.2005/  Gabungan  23.05.2010  Strategik  150,000  11.10.2007/  Gabungan  26.05.2010  Strategik
Sub-contractor’ (i)  Agrow Builders Sdn Bhd  (ii)  Duralift Corporation Sdn  Bhd  (iii)  Geomac Services  (iv)  Kejuruteraan Letrik KB  Sdn Bhd  (v)  Lysaght Marketing Sdn  Bhd  (vi)  Mirda Bina Sdn Bhd  (vii)  Imaprima Sdn Bhd  (viii)  Sum Hup Sheet Piling  Sdn Bhd  (ix)  True Master Sdn Bhd  (x)  Tyco Fire, Security &  Services Malaysia Sdn  Bhd  (i)  Chong Precast Builder  Sdn Bhd  (ii)  CM Specialist &  Engineering Sdn Bhd  (iii)  DHD Enterprise  (iv)  Juara Steel Sdn Bhd  (v)  Jotun (Malaysia) Sdn Bhd  (vi)  Matt Soghee Sdn Bhd  (vii)  Imaprima Sdn Bhd  (Viii)  Precast Products Sdn  Bhd  (ix)  Pacific Ocean Tiling Sdn  Bhd  (x)  Rawang Glass Trading  Sdn Bhd
Basis for Award of Project  Negotiation  Negotiation

INFORMATION ON OUR GROUP (Cont’d) Project and Location  Construction of part of Projek Lebuhraya Kemuning -Shah Alam (LKSA) Highway stretch from Section 24 at Jalan 24113 Shah Alam to Interchange at Federal Highway Route 2 in Shah Alam, Selangor Darul Ehsan  Construction of Inslilul Kemahiran Selia Negara, Kuaia Langat, Selangor Darul Ehsan&
Name of Customer Pembinaan Limpah Sejagat Sdn Bhd RD Resources Sdn Bhd Value of Contract (RM’OOO)  Commencement Date/Completion Date  Main Contractor/ Subsidiary  Sub-contractor’  Basis for Award of Project  18,173  01.05.2008/ 30.06.2010  Motibina  (i) Sugu Construction Sdn Bhd (ii) Js Subang Enterprise (iii) Golden Plus Granite Sdn Bhd (iv) Krisdah Sdn Bhd (v) Multi-Lines Systems (M) Sdn Bhd (vi) T&D Consult Sdn Bhd (vii) Binaform Sdn Bhd (viii) Seng Yuen Construction (ix) YTL Premix Sdn Bhd (x) Puchong Paver Sdn Bhd  Tender  90,000  14.03.2008/ 24.01.2011  Gabungan Strategik  (i) Arena Perintis Sdn Bhd (ii) Chok Boon Kwong Enterprise (iii) Eastern Pretech (M) Sdn Bhd (iv) Hi-Tech Power Sdn Bhd (v) Tai Tee Cermin & Aluminium Sdn Bhd (vi) Lee Sing Kiat Construction Works & Renovation (vii) Lotez Engineering Sdn Bhd (viii) Matt Soghee Sdn Bhd (ix) Mecomb Malaysia Sdn Bhd (x) Yee Meng Construction Sdn Bhd  Negotiation
I Company No: 912527-A I 4. INFORMATION ON OUR GROUP (Cont’d) Project and Location Construction of a 10-storey office with 1 parking podium, 1 cafeteria, 1 mechanical and engineering building and infrastructure works on Lot 5270 at University Malaya campus, Lembah Pantai, Kuala Lumpur Design, construction, equipping, commissioning and maintenance of Psychiatric Hospital Permai for Kementerian Kesihalan Malaysia at Tampoi, Johor Darul Takzim Name of Customer
Syarikat Muhibah Perniagaan & Pembinaan Sdn Bhd MRCB Engineering Sdn Bhd I Company No: 912527-A I
Value of Contract (RM’OOO)  Commencement Date/Completion Date  Main Contractor/ Subsidiary  Sub-contractor’  Basis for Award of Project  11,932  01.06.2010/ 15.06.2011  Motibina  (I) Luxbee Enterprise Sdn Bhd (ii) Deco Reno Dream Concept (iii) Tai Tee Cermin & Aluminium Sdn Bhd (iv) Infra System (v) Procubix Contracts Sdn Bhd (vi) Syabanas Sdn Bhd (vii) Forest House Sdn Bhd (viii) Krisdah Sdn Bhd (ix) Bricomp Maju Sdn Bhd (x) Lim Hung Phong  Negotiation  12,947  15.12.2008/ 15.11.2011  Gabungan Strategik  (I) GSC Bina (ii) Goh Ah Lek (iii) Low Han Keong (iv) Matt Soghee Sdn Bhd (v) Mastercon Enterprise (vi) North East Construction (vii) Pacific Ocean THing Sdn Bhd (viii) Stonemason (JB) Sdn Bhd (ix) Wong Song Painting And Renovation Contractor (x) Wong Kie Kai  Tender
INFORMATION ON OUR GROUP (Cont’d) and and of dan for Darul of Reserve -2) in Tapai,

Value of  Commencement  Main  Name of  Contract  Date/Completion  Contractor/  Customer  (RM’OOO)  Date  Subsidiary  JPJ  59,450  15.05.2008/  Gabungan  30.04.2011  Strategik  True Master Sdn Bhd  125,000  04.09.2008/ 15.01.201i2)  Gabungan Strategik
Sub-contractor” (i) Amity Construction Sdn Bhd

(ii) DHD Enterprise

(iii) Infra-Way Construction Sdn Bhd
(iv) Tai Tee Cermin & Aluminium Sdn Bhd

(v) KCC Coating Sdn Bhd
(vi) Lestari Jaya Enterprise

(vii) Mecomb Malaysia Sdn Bhd
(viii) Ooi Motor Dan Tukang Besi
(ix) Tropika Golden Landscape and Design

(x) Vintek Glass and Aluminium Sdn Bhd

Dekon Sdn Bhd Basis for Award of Project  Negotiation  Negotiation

INFORMATION ON OUR GROUP (Cont’d) Project Location  Construction proposed enhancement works Lebuhraya Damansara-Puchong (Package Puchong Southbound, Puchong Perdana Interchange Kg. Bharu Puchong Perdana Interchange Southbound Selangor Ehsan  Total
and of along A) -Intan to and in Darul
Name of Customer  Value of Contract (RM’OOO)  Commencement Date/Completion Date  Main Contractor/ Subsidiary  Sub-contractor”  Basis for Award of Project  Lingkaran Trans Kota Sdn Bhd  104,600  16.09.2009/ 15.12.2011  Gabungan Strategik  Dasar Pintar Sdn Bhd  Tender  888,155
Notes: Comprises top ten (10) major sub-contractors appointed. .. Information not available as the project was completed more than 10 years ago. Constructed fully using the ISS method.
& Constructed partielly using the ISS method. (1) Mako Engineering & Co is a related party to our Group by virtue of the estate of Ng Choen Heng (deceased), who was a Director and shareholder of Mako Engineering & Co. He was the brother of Ng Kit Heng, a Promoter, substantial shareholder and Executive Director of our Company.
(2) The extension is up to the date of the Certificate of Practical Completion. However, as at the LPD, we have yet to receive the official Certificate of Practical Completion.

4. INFORMATION ON OUR GROUP (Cont’d) (ii) On-going Construction Projects Project anLocation d  Construction proposed enhancement works Lebuhraya Damansara-Puchong (Package Selangor Ehsan Motibina  Construction proposed enhancement works Lebuhraya Damansara-Puchong (Package C1) Petaling Toll Plaza Jaya, Darul Gabungan Strategik
of along B) In Darul to of along -Jaya -Bandar Puchong Selangor Ehsan to
Commencement  %of  Value of  Date/Expected  Completion  Main  Basis for  Name of  Contract  Completion  as at the  Contractor/  Award of  Customer  (RM’OOO)  Date  LPD  Subsidiary  Sub-Contractor@  Project  Lingkaran Trans  98,600  01.05.20101  95  Motibina  Barisan Bidara  Tender  Kota Sdn Bhd  30.04.2012  Sdn Bhd  (Extended to  31.07.2012)(1)  Lingkaran Trans Kota Sdn Bhd  73,980  01.1220101 28.02.2013  53  Gabungan Strateglk  Dasar Pintar Sdn Bhd  Tender
I Company No: 912527-AJ 4. INFORMATION ON OUR GROUP (Cont’d)
Project and Location Construction of 9 schools using IBS construction method in Wilayah Persekutuan Kuala Lumpur, Perak Darul Ridzuan and Kedah Darul Aman Name of Customer
Ministry of Education, Malaysia Value of Contract (RM’OOO)  Commencement Date/Expected Completion Date  % of Completion as at the LPD  Main Contractor/ Subsidiary  Sub-Contractor@  Basis for Award of Project  50,680  18.02.2011/ 27.07.2012 (Extended to 22.05.2013)(2)  44  Gabungan Strategik  (i) Agrow Builders Sdn Bhd (ii) JEKS Engineering Sdn Bhd (iii) Eastern Pretech (Malaysia) Sdn Bhd (iv) Asoma Technology Sdn Bhd (v) Gemilang Vistra Sdn Bhd (vi) Yeow Kee Plumber & Construction Sdn Bhd (vii) How Thong Sanitary Sdn Bhd (viii) Sepakat GeoDrilling (M) Sdn Bhd (ix) Belkron Trading Sdn Bhd (x) Mink Yuan Cabin & Container Sdn Bhd  Negotiation

I Company No: 912527-A I 4. INFORMATION ON OUR GROUP (Cont’d) Commencement  %of  Value of  Date/Expected  Completion  Main  Basis for  Project and  Name of  Contract  Completion  as at the  Contractor/  Award of  Location  Customer  (RM’OOO)  Date  LPD  Subsidiary  Sub-Contractor!!!  Project  Construction,  MMC-Gamuda  29,000  16.03.2011/  37  Gabungan  (i) Chuan Un  Tender  completion,  Joint Venture  15.03.2013  Strategik  Chye Sdn  testing,  Bhd  commissioning  (ii) Asoma  and maintenance  Technology  of the  Sdn Bhd  Infrastructure  (iii) Hock Leong  works train set /  Engineering  EMU  Sdn Bhd  Maintenance  (iv) Ikatan  Depot and  Teguh Bina  Wagon Repair  Sdn Bhd  Shed at Bukit  (v) Beikron  Tengah, Pulau  Trading Sdn  Pinang  Bhd  (vi) Warren  Technology  Sdn Bhd  (vii) Shimba Sdn  Bhd  (viii) BNQ  Engineering  Sdn Bhd  (ix) Zloty  Holding Sdn  Bhd
4. INFORMATION ON OUR GROUP (Cont’d) Project and Location
Rebuilding Police Training Centre (PULAPOL) in Ayer Hilam, Jempol, Negeri Sembilan Darul Khusus Name of Customer
Pembinaan BLT Sdn Bhd Value of Contract (RM’OOO)  Commencement Date/Expected Completion Date  %of Completion as at the LPD  Main Contractor/ Subsidiary  Sub-Contractor@  Basis for Award of Project  70,670  07.04.2011/ 08.11.2012  48  Gabungan Strategik  (i) Telong Corporation Sdn Bhd (ii) Syarikat Muhibah Perniagaan & Pembinaan Sdn Bhd (iii) Broadway Power Sdn Bhd (iv) Lotez Engineering Sdn Bhd (v) How Thong Sanitary Sdn Bhd (vi) Tai Tee Cermin & AI. (vii) Besstar Interior Sdn Bhd (viii) Heng Kee Trading Sdn Bhd (ix) CM Specialist & Engineering Sdn Bhd (x) Infra-Way Construction Sdn Bhd  Tender

4. INFORMATION ON OUR GROUP (Cont’d) Project and Location Civil works for upgrading of Institut Pendidikan Guru Gaya, Kota Kinabalu, Sabah Construction of SMK Bandar Sri Puncak Jalil using IBS construction method  in,  Selangor  Darul  Ehsan
Execution and completion of site clearance and earthworks at Selangor Science Park 2, Dengkil, Sepang, Selangor Name of Customer
REMT Utama Sdn Bhd Kementerian Peiajaran Malaysia
Syarikat Muhibah Perniagaan & Pembinaan Sdn Bhd Value of Contract (RM’OOO)  Commencement Date/Expected Completion Date  %of Completion as at the LPD  Main Contractorl Subsidiary  Sub.Contractor@  Basis for Award of Project  11,050  28.03.2011/ 09.12.2011 (Extended to 16.09.2012)’  56  Megah Ikhlas  (i) STC Drilling Sdn Bhd (ii) Emas Kiara Marketing Sdn Bhd (iii) Imaprima Sdn Bhd (iv) Well Enterprise  Negotiation  40,500  13.09.20111 11.03.2013  1  Gabungan Strategik  (i) Fuland Engineering (ii) PPS Builders Sdn Bhd (iii) Kadar Kemas Sdn Bhd (iv) Asas Security Services Sdn Bhd  Tender  38,083  05.01.20121 10.12.2012  29  Motibina  WD infra Sdn Bhd  Negotiation

I Company No: 912527-A 4. INFORMATION ON OUR GROUP (Cont’d) Project and Location Construction of 1 block of office and 1 block of 6 storey carpark and 1 storey basement carpark at Lot 1238, 25 Mukim Ampang, Daerah Ulu Langat, Kuala Lumpur Total
Notes: Name of Customer
Syarikat Muhibah Perniagaan & Pembinaan Sdn Bhd Value of Contract (RM’OOO)  Commencement Date/Expected Completion Date  % of Completion as at the LPD  Main Contractor! Subsidiary  Sub.Contractor@  Basis for Award of Project  21,748  15.02.20121 14.06.2013  •  Gabungan Strategik  A  Negotiation  434,311

@ Comprises top ten (10) major sub-contractors appointed. • Negligib/e as project has just commenced as at the LPD.
• The extended completion date for this project was due to the encroachment of neighbouring land, causing a delay in confirmation of works and late

possession.
A No sub-contractors as none have been appointed yet as at the LPD. (1) We had on 02.04.2012, applied for an extension of time of up to 31.07.2012. This extension oftime was subsequently approved on 30.04.2012. The extension was sought due to delays in receiving approval, late site hand over and certain sections construct/on works being put on hold.
(2) We had on 08.02.2012, applied for an extension of time of up to 22.05.2013. The extension was sought mainly due to delays in receiving approval, late site hand over and additional works required. As at the LPD, the extension of time has yet to be approved.

THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK I Company No: 912527-A I 4. INFORMATION ON OUR GROUP (Cont’d) 4.5.2 Property Development Our Property Development Division has completed a development project and we also have 4 on-going development projects as at the LPD. The tables below sets out our Group’s completed, on-going and future development projects as at the LPD: (i) Completed Projects
Location and Description of Project  Proiect Name  Type of Development  GDV (RM’OOO)  Commencement Datel Completion Date  Kota Damansara, Petaling Jaya, Selangor Darul Ehsan Development of 92 units of semi­detached houses with 1 unit of TNB substation  The Residency  Residential Development  92,678  23.07.2004/29.06.2006

THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK I Company No: 912527-A I 4. INFORMATION ON OUR GROUP (Cont’d) (ii) On-going Projects Location and Description of Proiect Ulu Kelang, Gombak, Selangor Darul Ehsan On-going residential development project comprising 41 units of “Courtyard Villas Gated Community” with 1 unit clubhouse, a TNB substation and a security booth Setapak, Gombak, Selangor Darul Ehsan On-going residential development project comprising 25 units of “zero-lot” bungalows together with a TNB substation(‘)
Project Name  Type of Development  Total Units for Sale  Total Units Sold as at the LPD  Estimated GDVas at teLP~RM’OOO  %of Completion as at the LPD  Commencement Datel Expected Completion Date
Contours”)  Residential  41  27  148,321  35 -65(2)  13.09.20101  Development  12.09.2013  Gombak Grove(‘)  Residential Development  25  18  58.608  65 -70(0)  28.12.20101 27.12.2012
I Company No: 912527-~ INFORMATION ON OUR GROUP (Cont’d) Location and Description of Project Damansara Perdana, Petaling Jaya, Selangor Darul Ehsan Proposed commercial development of 2 blocks of office comprising 11 and 22 floors respectively and 1 block of .3-storey commercial building with 8-storey basement carpark(‘) which comprises: (a) 1 block of 11 floors of commercial office known as “The CEO Suites”;
(b) 1 block of 22 floors of

 

commercial known as Prime”; and  office “The  (c)  1 block of commercial known as Pulse”.  3-storey building “The
Project Name  Type of Development  Total Units For Sale  Total Units Sold As At the LPD  Estimated GDV as at the LPD (RM’OOO)  % of Completion as at the LPD  Expected Commencement Datel Expected Completion Date  The Allium  Commercial  Development  138  37  82,930  5%  24.10.20111 23.10.2014  22  -{‘J  208,010  – Fourth quarter of  floors  20121  Fourth quarter of  2015*  *  -{‘J  43,280  – Fourth quarter of 20121 Fourth quarter of 2015*
I Company No: 912527-A I INFORMATION ON OUR GROUP (Cont’d) Location and Description of Project Taman Lestari Perdana, Bandar Puteri Permai, Mukim & Daerah Petaling, Selangor Darul Ehsan
Proposed development of 177 units of shops and 1 unit shopping complex together with all the necessary infrastructure and public utilities1n which comprises:
(a) 177 units of shops which comprises: -12 units 4 storey
shops; -165 units 2 storey shops; and -3 TNB substation
(b) 1 unit of shopping compiex

Collectively known as “The Avenue @ Kinrara Uptown”
Estimated  %of  Commencement  Total Units  GDV as at  Completion  Datel  Project  Type of  Total Units  Sold As At  the LPD  as at the  Expected  Name  Development  For Sale  the LPD  (RM’OOOI  LPD  Completion Date  The  Commercial  177  109  186,494  15%  16.07.2011/  Avenue@  Development  15.07.2014  Kinrara  Uptown
I Company No: 912527-A 4. INFORMATION ON OUR GROUP (Cont’d) Notes:
Details not yet finalised as at the LPD. (f) All relevant statutory approvals for these projects have been obtained. The building plan approvals for “Contours” and “Gombak Grove” were obtained on 28.12.2009 (approval for the revised building plans were obtained on 26.03.2010) and 27.10.2010 respectively. The development costs of these projects are expected to be funded through a combination of internally generated funds and bank borrowings.
(2) The % of completion as at the LPD is spread between 35% to 65% as there are 4 different types of units available in this project. Therefore, each type of unit will have a different percentage of completion due to the fact that the actual work done on site is different for the vanous types.

(3)
The % of completion as at the LPD is spread between 65% to 70% as there are 4 different types of units available in this project. Therefore, each type of unit will have a different percentage of completion due to the fact that the actual work done on site is different for the various types. (‘) Pursuant to the development agreement dated 13 October 2008 between AQRS and Mereu Gandingan Corporation Sdn Bhd, the landowner (“Landowner), AQRS is to develop the land and bear the costs and expenses relating to the development of the land including premium payable for the conversion of the land. In addition, AQRS will bear the interest charges on the borrowings taken out by the Landowner, redeem the said borrowings from the sales proceeds of the development project and pay the Landowner a totai sum of RM4.62 million in accordance with the provisions of Ihe agreement.(5) The development order for “The Altium” has been obtained on 07.01.2011 (approval for the layout plan was obtained on 17.03.2011) and the buitding plan has been obtained on 07.12.2011. The development costs of this project is expected to be funded through a combination of internally generated funds and bank borrowings. (6j Project has yet to be launched as at the LPD. (1) The development order for this project has been approved on 5 July 2011 by Majlis Perbandaran Subang Jaya. Darar Ehsan Sdn Bhd has subsequently submitted an application to amend this development order and the amended development order has been granted on 19 July 2011, amending the development order from 4 storey, 12 units apartments to 12 units 4 storey shops and from 165 units 4 storey apartments to 165 units 2 storey shops. The buitding plans approval has yet to be obtained. Darar Ehsan Sdn Bhd has applied for special permission to commence building works under Uniform Building By-Laws, 1984 (By-laws 13) on 21 October 2011 and the application has been approved by Maj/is Perbandaran Subang Jaya on 2 November 2011, atlowing Prestige Field to commence piling works and sub-structure works. . (iii) Proposed Projects
Location and Description of Project  Project Name  Type of Development  Total Units Planned  Estimated GDV as at the LPD (RM’OOO)  Expected Commencement Datel Expected Com plet/on Date  Subsidiary Company  Permas Jaya, Johor Bahru, Johor Darul Takzim(1){2)  -‘”  Commercia/ Development  -‘”  -,q  -‘”  Crystal Aspect  GRN 54243 Lot 3413 & HS(D) 55933 Lot 6154 Mukim 6, District of Seberang Pera; Tengah, Pulau Pinano!2!  yl  Commercial Development  .’,!  yl  .'”  Grand Meridian
4. INFORMATION ON OUR GROUP (Cont’d) Location and Description of Proiect Bandar Sunway, District Petaling, Selangor Darul Ehsan Proposed development of 2 blocks commercial building with 2 storey and 39 storey respectively comprising a 2-storey commercial building, 34-storey SOHO, 5 storey carpark podium and 1 basement carpark Johor Bahru, Johor Darui Takzim 668 units of residential service apartments to be comprised in two 38-storey blocks and carparks(‘)
Project Name  Type of Development  Total Units Planned  Estimated GDV as at the LPD (RM’OOO)  Expected Commencement Datel Expected Completion Date  Subsidiary Company  Stylo  Commercial Development  384  263,780  -‘”‘  AQRS  One Temenggong  Residential Development  668  450,000  Third quarter of 20121 Third ~uarter of 2015(5  AQRS
Notes:
(1) The development costs of this project is expected to be funded through a combination of internaliy generated funds and bank borrowings.
(2) The project details have yet to be finalised as at the LPD.
(3) The commencement of this project is subject to the completion of the Stylo Land SPA.
(4) Pursuant to the development agreement dated 30 September 2011 between AQRS and Pro-Meridian Sdn Bhd, the landowner (“Landowner”), AQRS and the Landowner is to jointly undertake, develop and complete the development of the land and AQRS shali pay the Landowner a minimum guaranteed amount of RMI17,000,000 In cash, which has been based on a gross sale value of RM450,000,000 for the development. In the event the actual gross sale value exceeds RM450,000,000 then such surplus, after set-off against excess costs, shali be shared by AQRS and the Landowner on the ratio of 50:50 and is payable upon issuance of the final accounts for the development project.
(5) Pursuant to the development agreement dated 30 September 2011, the commencement of the development and construction of the development project shali be completed within a period of three (3) years commencing from 1 January 2012 and expiring on 31 December 2014, with an extension of a further six (6) months from 31 December 2014 and expiring on 30 June 2015, We will seek en extension of time for the completion of the project, if required.

Further details of our properties held for deveiopment is set out in Section 9.1.3 of this Prospectus. 4. INFORMATION ON OUR GROUP (Cont’d)
4.5.3 Sales and Marketing (i) Construction Division
Our Construction Division secures contracts generally through participation in open and invited tenders for both public and private sector projects which are generally initiated by clients or consultants whom we have worked with in our previous projects. We also leverage on our reputation and our Directors’ wide network and established relationships with Government and GLCs for business opportunities.
(ii) Property Development Division

Our Property Development Division has a sales gallery in Kota Damansara, Petaling Jaya, Selangor Darul Ehsan as well as showrooms on selected project sites. Most of the sales are promoted through printed media, online, brochures, billboards and through existing customers’ listing or database. Our Property Development Division also participates in property exhibitions and joint promotions with end-financiers to promote our new property development projects. Our Property Development Division employs, amongst others, the following marketing strategies to promote our property development projects: • Exclusivity of designs to suit individual preferences and lifestyles;
• Special prices for “early bird” buyers;
• Advertising in printed media, online, attractive brochures, billboards and signages;
• Adopting an environmentally friendly policy; and
• Focusing on target markets.

 

4.5.4 Principal Markets At present, our Construction Division and Property Development Division are concentrated on the Malaysian market as 100% of our revenue for the FYE 2011 were derived in Malaysia. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 4. INFORMATION ON OUR GROUP (Cont’d) 4.6  KEV ACHIEVEMENTS, AWARDS AND RECOGNITIONS  4.6.1  Key Achievements and Milestones  The table below sets out our key achievements and milestones over the past years:
Vear Event 1996
• Motibina commenced its business and started as a civil and building contractor.
• Gabungan Strategik and Megah Ikhlas commenced their business and started as a contractor for civil and bUilding construction works.
• AORS commenced its business and started as a property development company.
• Gabungan Strategik successfully designed, built and completed Sekolah Kebangsaan Brickfields 1, Kuala Lumpur, fully constructed using IBS components.
• Gabungan Strategik was accredited with OMS MS ISO 9001 :2000 for the provision of construction services in building and civil engineering works (which has since been upgraded to ISO 9001 :2008 in 2010).
• Gabungan Strategik was appointed as Rescue Contractor by Usahasama SPNB-LTAT Sdn Bhd for construction of quarters for anmy personnel in Ampang, Selangor Darul Ehsan which was abandoned by the previous contractor. The project was successfully handed over to the client within the contract period.
• Gabungan Strategik’ obtained its first contract which exceeds RM1 00.00 million for the upgrading of Seremban-Senawang (Phase 2) federal road in Senawang, Negeri Sembilan Darul Khusus.

1999 2003 2005 2006
• AORS successfully built and completed “The Residency”, a residential development comprising 92 semi-detached houses in Kota Damansara, Petaling Jaya, Selangor Darul Ehsan. 2007
• Gabungan Strategik successfully secured its largest ever contract to-date of RM150.00 million for the construction of 43 additional school blocks in Selangor Darul Ehsan and Kuala Lumpur using IBS components.
• AORS was accredited with OMS MS ISO 9001 :2000 for the design and development for residential properties (which has since been upgraded to ISO 9001 :2008 for the development services for residential, industrial, commercial and institutional properties in 2010).
• Motibina was accredited with OMS MS ISO 9001 :2000 for the provision of construction services in building and civil engineering works (which has since been unnraded to ISO 9001 :2008 in 2010).

4. INFORMATION ON OUR GROUP (Cont’d) Year 2010 2011 Event
• AQRS launched its residential development projects -“Contours” comprising 41 units of “Courtyard Villas Gated Community” with 1 unit clubhouse, a TNB substation and a security booth in Ulu Kelang, Gombak, Selangor Darul Ehsan and “Gombak Grove” comprising 25 units of “zero-lot” bungalows together with a TNB substation in Setapak, Gombak, Selangor Darul Ehsan.
• Motibina was accredited with OHSAS 18001 :2007 for the provision of construction services for building and civil engineering works.
• Prestige Field launched its commercial development project -“The Avenue @ Kinrara Uptown” comprising 177 units of shops and 1 unit shopping complex together with all the necessary infrastructure and public utilities in Taman Lestari Perdana, Bandar Puteri Permai, SeJangor Darul Ehsan.
• Nusvista launched its commercial development project -“The Altium” comprising 2 blocks of office comprising 11 and 22 floors respectively and 1 block of 3-storey commercial building with 8­storey basement carpark in Damansara Perdana, Petaling Jaya. Selangor Darul Ehsan.

Awards, Accreditations and Recognitions As a testimony to the quality of our services, the table below sets out our awards,
accreditations and recognition over the past years: Awarding Body/Client Gamuda Berhad Certification International (UK) Limited together with UKAS Quality Management Year  Accreditation/Award  2001  Letter of Appreciation Quality Management  2003  System MS ISO  9001: 2000
Brief Description Letter  of  Appreciation  granted  to  Gabungan  Strategik  for  successfully
salvaging and completing Pusat Latihan Pengurusan /nstitut Kesihatan Umum Fasa 1-Peringkat 2, Kuala Lumpur within a tight schedule Certificate granted to Gabungan Strategik for the provision of Construction Services in Building and Civil Engineering Works
4. INFORMATION ON OUR GROUP (Cont’d) Year  Accreditation/Award  2003  Letter of Appreciation Sijil Pencalonan Kontraktor Terbaik  2004  Anugerah Prestasi Kontraktor Terbaik Certificate of  2004  Excellence Letter of Appreciation Letter of Appreciation  2006  2006
Awarding Body/Client JKR JKR  JKR  Kementerian dan Sukan  Selia  Golden  Hope
Builders Sdn Bhd Brief Description Letter  of  Appreciation  granted  to  Gabungan  Strategik  for  successfully
designing and building Seko/ah Kebangsaan Brickfields 1, Kuala Lumpur using the IBS construction method Certificate granted to Gabungan Strategik for Anugerah Prestasi Kontraktor Terbaik for successfully designing and building Seko/ah Kebangsaan Brickfie/ds 1, Kuaia Lumpur using the IBS construction method Certificate awarded to Gabungan Strategik for successfully designing and building Seko/ah Kebangsaan Brickfields 1, Kuala Lumpur using the IBS construction method within the specified timeframe Letter of Appreciation granted to Gabungan Strategik for completion of Kompleks Belia dan Sukan DaerahlPusat Rakan Muda, Baling, Kedah Darul Aman within the specified timeframe Letter of Appreciation granted to Gabungan Strategik for completion of Pejabat Daerah, Tapak Kompleks Kerajaan Daerah Kua/a Langat, Selangor Darul Ehsan within the specified timeframe
4. INFORMATION ON OUR GROUP (Cont’d) 4. INFORMATION ON OUR GROUP (Cont’d) Year 2007  Accreditation/Award QMS MS ISO 9001: 2000  Awarding Body/Client SIRIM QAS  Brief Description Certificate granted to AQRS for the design and development for residential properties  2007  QMS MS ISO 9001: 2000  SIRIM QAS  Certificate granted to Motibina for the provision of construction services for building and civil engineering works  2010  QMS MS ISO 9001: 2008  Sustainable Certification Ply Ltd  Upgraded certificate granted to AQRS for the development services for residential, industrial, commercial and institutional properties  2010  QMS MS ISO 9001: 2008  IQNet QAS  and  SIRIM  Upgraded certificate granted to Motibina for the provision of construction services for building and civil engineering works  2010  Letter Appreciation  of  FAMA  Letter of Appreciation granted to Gabungan Strategik for completion of Termina/ Makanan Negara within the specified timeframe  2010  Letter Appreciation  of  Kementerian Pelajaran Malaysia  Letter of Appreciation granted to Gabungan Strategik for completion of 43 additional school buildings in Kuala Lumpur and Selangor Darul Ehsan using the IBS construction method within the specified timeframe  2010  Quality Management System MS ISO 9001 :2008  Certification International (UK) Limited together with UKAS Quality Management  Upgraded certificate granted to Gabungan Strategik for the provision of construction services in building and civii engineering works
Year  Accreditation/Award  Awarding Bodv/Client  Brief DescriDtion  2010  OHSAS 18001:2007  Sustainable Certification Ply Ltd  Certificate granted to Motibina for the provision of construction services for building and civil engineering works  2011  Certificate of Appreciation  MMC-Gamuda Joint Ventures Sdn Bhd  Certificate of Appreciation to Gabungan Strategik in recognition of valuable contributions in acheiving nine (9) million man hours without lost time injury for Electrified Double Track Project Package N4 & Package N5
THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 4. INFORMATION ON OUR GROUP (Cont’d) 4.7 BUSINESS PROCESS (i) w ~ I c.. ”
z
0:: w oz W f-w CJ) « I c.. Building and Civil Engineering Construction The typical process flow for a construction project which we act as the main contractor is depicted in the diagram below: Public Invitation through Media Tenders and Contracts
Direct Invitation by Client

Decline the Invitation
NoWithdraw

 

—.
Tender Bond &

—.~ Archive Yes … Pre-Construction
Procurement / Self Identified Project I Direct Negotiation
/Woz «
L..——-,———J … z w f­Constructionz« ::2 Works -1
o Handingi= oz «
z Overo (.I::l 0:: f­en z o Post oConstruction C COMPLETION~ 4. INFORMATION ON OUR GROUP (Cont’d) (a) Tenders and Contracts Upon invitation for tender by the client, we will collect tender documents. In some occasions, pre-qualification exercise may be required before participating in the tender exercise. Our Contracts Department or Tender Committee will gather relevant information, takeoff quantity, make estimation and carry out pricing. Tender Documents will be adjudicated by the Tender Committee and approved by our Executive Director and Chief Executive Officer before submitting to the client. The client may call us for a tender interview for clarification and negotiations. If the tendering exercise is successful, a letter of award will be issued to us and followed by signing of contract. During contract implementation, any changes to contract or project requirements will be handled by variation orders. (b) Pre-Construction
Upon award of contract, the Project Manager will set up a project team and if required, our Planning Unit will assist to carry out project planning. The planning activities shall include preparation of project programme, project budget and project quality plan as well as determining construction methodology and resources required for the project. A project kick-off meeting shall be conducted for our project team. Submissions to relevant authorities and local council are carried out including procuring relevant permits and approvals. Our Project Team will take site possession and mobilise the required resources to the project site.
(c) Procurement

Upon receipt of requisition of materials, our Contracts Manager will source for potential suppliers from the approved suppliers list and call for quotations. Quotations received shall be analysed, and purchasing documents shall be issued to successful suppliers for the supply of materials requested. Our Contracts Department will be responsible for the selection and appointment of sub-contractors in accordance with project progress. The sub-contractors shall be appointed from the approved sub-contractors list with approval from the Directors. Where necessary, we or our clients may carry out verification of supplier’s materials or sub-contractor’s services at the .supplier’s premises or sub­contractor’s project site. At the end of the project or at the end of the year, our suppliers and sub-contractors shall be evaluated accordingly. (d) Construction Works We will initiate construction activities after mobilising the required resources to the project site. Site administration shall be carried throughout the construction stage. The activities at this stage include construction and installation works, site meetings, requisition of construction materials, handling of construction materials, coordination with sub-contractors, inspection and testing, maintenance and servicing of plant, machinery and equipment, handling of documents and records and processing of variation orders. 4. INFORMATION ON OUR GROUP (Cont’d) (e) Post Construction We will carry out a final inspection and testing at the end of the project. At this stage, the site team shall start to demobilise from the construction site. Our Project Manager shall prepare the project final accounts, as-built drawings and operations and maintenance manuals. Project records shall be archived. Where required by contractual requirements, our Project Manager may organise operations and maintenance training to the client. If there are any defects identified during the defects liability period, we will investigate the causes of defects and the defects shall be rectified. The foregoing business process for construction projects in which we act as main contractor is generally applicable to the construction projects which we act as sub­contractor, except for the following: Acting as sub-contractor: • Most of the tender opportunities in relation to the provision of our services as sub­contractor, are attained through invitations by main contractors of the respective projects or referrals by our previous customers; and
• For most of the projects which we act as sub-contractor, we are generally not required to provide performance bond to secure our performance.

THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 4. INFORMATION ON OUR GROUP (Cont’d) (li) Property Development The typical process flow for a property development project is depicted in the diagram below:
!­Z w :2 !l. o -I W >W o uJ 0:: !l. z o ~ W -I !l. :2 o o o z <:( !­Z w :2 !l. 9 w (fj o Pre.Development Sales and Marketing
Sales Administration and Credit Control
Project Implementation
Post Development

COMPLETION 4. INFORMATION ON OUR GROUP (Cont’d) (a) Business Planning
The Executive Director and General Manager of AQRS will identify suitable land for development and meet the owners directly or through intenmediaries to secure the land. They may liaise with the Head of Departments for inputs and feasibility studies to determine the viability of land and market needs. Upon receiving recommendations and approvals from the Board, the Executive Director will proceed with the purchase of the land or enter into a joint-venture with the land owner.
(b) Pre-Development

The Projects Department plans the master development for a project. The Projects Department will ensure that the town-planner and relevant consultants obtain the Master Layout Plan approval from authorities. A product brief will be prepared for each development. The Projects Department will coordinate with relevant departments and consultants to finalise the design. The Projects Department is responsible for land mailers and ensures that all required documents for application to authorities for approval are complied with. The Contract Department is responsible for the selection and appointment of contractors, tender documentation and award of contracts and thereafter will recommend to the board for approval. (c) Sales and Marketing
The Sales and Marketing Department will provide appropriate inputs and recommendations on purchasers’ needs and expectations, design concept and others to the Projects Department at the Pre-Development stage. The department will prepare the advertising materials for the application of an advertising and sales penmit. The Sales and Marketing Department will organise all marketing materials and tools and conduct sales launches. The department will communicate with the purchasers to sign the Sale and Purchase Agreement.
(d) Sales Administration and Credit Control
The Sales and Marketing Department is also responsible for the administration and documentation in relation to the purchasers’ loan. The department will liaise with the Projects Department for Architect/Consultant Certification to ensure timely progress billings and collections. The Department ensures that all receivables are collected before handing over of vacant possession to the purchasers.
(e) Procurement

Upon receipt of request for purchase of products, the Procurement/Contract Department will source for potential suppliers and call for quotations. Quotation received will be analysed, and purchasing documents issued to successful supplier for the supply of materials requested. The Contract Department will be responsible for the selection and appointment of suppliers, consultants and contractors in accordance with the project’s needs assisted by the Projects Department. At the end of the project or at the end of each year, suppliers, consultants and contractors will be evaluated to determine their performance and ability to meet the project requirements by the Projects Department, Contracts Department and relevant department representatives. 4. INFORMATION ON OUR GROUP (Cont’d) (f) Project Implementation Upon award of contract, the Projects Department will prepare the site to be handed over to the contractor on the site possession date. During construction, regular meetings are conducted to monitor the progress of the construction works. The Projects Department will carry out periodic inspection on the works perfonned by the contractor to ensure works are done in accordance with the construction drawings and specifications and complies with the required quality standards. Upon completion of construction works, the Superintendent Officer will conduct a Certificate of Practical Completion inspection with the contractor in the presence of the Projects Department. The Superintendent Officer will issue a Certificate of Practical Completion to the contractor when works are practically completed. The Projects Department will liaise with the architect and consultants for authorities’ inspection. (g) Post-Development The Projects Department will ensure that the Superintendent Officer and consultants submit the application and obtain the certificate of fitness for occupation from the local council. The Projects Department will hand over the vacant possession of the properties to the purchasers upon notification from the Sales and Marketing Department and clearance of all outstanding payments. The Projects Department will monitor the defects complaints received from purchasers during the defects liability period and attend to the complaints. The Projects Department will liaise with the relevant authorities for the handing over of the public areas to the respective local authorities. The Projects Department will apply for issuance of strata titles or individual titles to the purchasers. 4.8 QUALITY CONTROL Our Group places a high degree of emphasis on the quality of our construction and property development projects. Our senior management team has played a vital role in providing leadership and direction to our employees in maintaining the highest standards of quality. In addition, stringent quality controls are implemented in every aspect of our Group’s business operations. We have our Quality Control Manual as an administrative guideline for our quality control procedures and quality management systems. As testament to our Group’s emphasis on quality, .our following subsidiaries have been certified as being ISO and OHSAS compliant by the relevant awarding bodies: Company  Certification  Awarding Body  Gabungan Strategik  QMS MS ISO 9001:2000 in 2003 and have since been upgraded to QMS MS ISO 9001 :2008 in 2010  Certification International (UK) Limited together with UKAS Quality Management SIRIM QAS (Upgraded certification was awarded by Sustainable Certification pty Ltd)  AQRS  QMS MS ISO 9001 :2000 and have since been upgraded to ISO 9001:2008 in 2010
4. INFORMATION ON OUR GROUP (Cont’d) Company  Certification  Awarding Body  Motibina  OMS MS ISO 9001:2000 and have since been upgraded to ISO 9001 :2008 in 2009  SIRIM QAS  OHSAS 18001:2007 in 2010  Sustainable Certification Pty Ltd
Our Group employs qualified and experienced engineers, architects and other consultants to ensure the quality of our projects are not compromised and our contractors and suppliers abide by the standards set by our Group. This is carried out through meetings, progressive monitoring and reporting, close supervision of works carried out by our workers and inspection of supplies received.
4.9 R&D Our Group engages in non-manufacturing nature of business. Therefore, our Group does not engage in R&D activities. However, our Group strives to continually develop and enhance the quality of our services through staff training and development programmes and attend external conference. Our Group will also strive to keep abreast of the latest development in the construction and property development industries through conference, trade fair and other channels. 4.10 LICENCES, PATENTS, TRADE MARKS, BRAND NAMES, TECHNICAL ASSISTANCE AGREEMENTS, FRANCHISES AND OTHER INTELLECTUAL PROPERTY RIGHTS As at the LPD, save as disclosed in Section 4.14, our Group does not have any other licences, patents, trade marks, brand names, technical assistance agreements, franchises and other intellectual property rights. Please refer to Section 4.14 of this Prospectus for all approvals, major licences and permits obtained by our Group. 4.11 TYPES, SOURCES AND AVAILABILITY OF RAW MATERIALS AND SUB-CONTRACTOR SERVICES The main raw materials used by our Group in our operations include steel bars, pre­mixed and ready mixed concrete, sand, aggregates, cement, plywood, limber and building materials. Most of our raw materials are sourced from a large base of suppliers in Malaysia. The prices of some of our raw materials are volatile and may be different from one supplier to the other. As such, our procurement team will source for the raw materials at the best available price, after taking into consideration the quality, reliability and timeliness of these suppliers. As at the LPD, we have not been materially affected by the price volatility of our raw materials. TO-date, we have not experienced any major disruption in the supply of raw materials as they are generally widely available in Malaysia. In addition, we have not experienced any difficulties in procuring raw materials as we have established and maintained good relationships with our suppliers. 4. INFORMATION ON OUR GROUP (Cont’d) Sub-contractors and consultants are also important resources to our Group. Our Group maintains a list of experienced, high quality, reliable and competitively priced consultants and sub-contractors based in Malaysia whom we will employ as and when required. 4.12 MAJOR CUSTOMERS Our Construction Division provides construction services to customers in Malaysia. The customers of our Property Development Division are mainly local and foreign individuals or companies, who either purchase our residential or commercial properties for own occupation or for investment purposes. As such. revenue contribution from our Group’s customers may fluctuate from year to year given the nature of our businesses, which is mainly based on contracts to be secured from time to time (for our Construction Division) and one-off purchases (for our Property Development Division). Our major customers who have individually contributed to 10% or more of our total proforma Group revenue for the past 3 FYEs 2009 to 2011 are set out below: Percentage Length of of total proforma Group Revenue Relationship (%\ (Years) FYE Customer
2009 2011 JPJ
2010 6.58 2.62 4 Kementerian Pelajaran 10.63 24.11 5.84 2.72 6Malaysia RD Resources Sdn Bhd
10.149.79 3.52 5 True Master Sdn Bhd 13.67 12.22 8.78 4 Lingkaran Trans Kota 26.35 32.60 3-Sdn Bhd
As at the FYE 2011, we have 3 major customers which are Private Entities. We enjoy a close and long-standing business relationship with our customers and place significant emphasis on developing and maintaining customer satisfaction, goodwill and rapport. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 4. INFORMATION ON OUR GROUP (Cont’d) For the FYE 2011, 32.60% of our total proforma Group revenue was contributed by Lingkaran Trans Kota Sdn Bhd as a result of our Group being able to secure three (3) contracts for the construction of proposed enhancement worKs along Lebuhraya Damansara Puchong in Selangor Darul Ehsan namely Package A, Package B and Package C1 which collectively amounted to a total contract value of RM277.18 million. Furthermore, the aforesaid Package A contract which amounts to RM104.60 million was completed in December 2011. Notwithstanding the above, we are not materially dependent on any individual customer as we have been able to replenish our order book with a variety of projects from different customers.
4.13 MAJOR SUPPLIERS AND SUB·CONTRACTORS Our major suppliers and sub-contractors which individually contribute 10% or more of our proforma Group’s purchases and sub-contractors costs respectively for each of the 3 FYEs 2009 to 2011 are set out below:
Products Purchased! Services Rendered Sand aggregates  and  Pre-mixed  and
ready mixed concrete products Sand and aggregates Acrylonitrile Butadiene Styrene (ABS) pipes Provision of building and civil construction work Provision of building and civil construction work Proportion of our  proforma Group’s  Purchases!  Sub-Contractor Costs (%)  FYE  Length of Relationship  2009  2010  2011  (Years)  – 7.51  – 7  6.22  20.73  – 6  14.42  20.62  – 4  – 20.68  – 3  17.08  1.49  1.44  10  20.38  17.33  10.57  4
4. INFORMATION ON OUR GROUP (Coni’d) Suppliers! Sub-contractors  Dasar Pintar Sdn Bhd  Barisan Bidara Sdn Bhd
Products Purchased! Services Rendered Provision and maintenance of construction machinery plants  and  Provision  and
maintenance of construction machinery and plants Proportion of our proforma Group’s Purchases! Sub-Contractor Costs (%) 2009 -. FYE 2010 40.04 -Length of Relationship 2011 (Years) 23.97 3 3197 2 For the FYE 2011, 55.94% of our sub-contractors costs were attributable to Dasar Pintar Sdn Bhd and Barisan Bidara Sdn Bhd. Both of the sub-contractors were appointed in respect of the contnacts secured by our Group for the construction of proposed enhancement works along Lebuhraya Damansara Puchong in Selangor Darul Ehsan namely Package A, Package B and Package C1. The increase in contribution of the sub­contractors costs from Dasar Pintar Sdn Bhd and Barisan Bidara Sdn Bhd is in line with the increase in revenue recorded from the aforesaid projects. Our Directors are of the view that we will not face any problems in sourcing our raw materials or delay of services from our suppliers and sub-contractors respectively due to the fact that we have a long-term and stable business relationship with these suppliers and sub-contractors and have been dealing with some of them since our Group’s commencement of business. Our Directors believe that this continuing business relationship will provide a basis for reliable and continuous support from them. Therefore, we are not dependent on any supplier or sub-contractor for their supplies or services as we are able to source for raw materials and sub-contnactor services from alternative suppliers and sub-contractors as and when required. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 4. INFORMATION ON OUR GROUP (Cont’d)
4.14 APPROVALS, MAJOR LICENCES AND PERMITS The approvals, major licences and permits issued to companies within our Group as at the LPD, together with the conditions attached and status of compliance other than those pertaining to general business registration requirements, are as follows: Licences and Permits Held by Subsidiary Company Gabungan Strategik  Issuing Authoritv CIDB  19.11.1999 (Grade 6 licence which was subsequently upgraded to Grade 7 on 28.03.2002)! 05.01.2012 Date of First Certification! Date of Issuance of Current Licence  Validity Period! Date of Expiry of Current Licence 05.01.2012/ 04.01.2013  Type of Licence! Permit! Approval! Service Registration as contractor category Grade 7 under the category of B04, CE21 and M15  (b) The contractor has been adjudicated a bankrupt; Equity and Other Major Terms and Conditions Imposed be 1. The Certification shall not be transferred. (a) The contractor does not meet the requirements of any other written law; The contractor’s registration shall cancelled, suspended or revoked if: 2.  Noted Met Status of Comnliance  (c) Winding-up  petition  filed  against  the  contractor;  (d) The contractor violates or fails to comply with any provisions of the CIDB  Act;  (e) The contractor has obtained the certificate by making or cause the making of any declaration, certification or false representation or fraud, in writing or otherwise;  (I) The contractor abandons any construction work undertaken to be carried out without any valid reason;  ,
I Company No: 912527-A I 4. INFORMATION ON OUR GROUP (Cont’d) 4. INFORMATION ON OUR GROUP (Cont’d) 4. INFORMATION ON OUR GROUP (Cont’d) 4. INFORMATION ON OUR GROUP (Cont’d) I Company No: 912527-A I Licences and Permits Held by Subsidiary Company Gabungan Strategik  Issuing Authority PKKIgI  Date of First Certification! Date of Issuance of Current Licence 16.02.2000 (Class B licence which was subsequently upgraded to Class A on 04.12.2001)! 19.04.2012  Validity Period! Type of Date of Licence! Expiry of Permit! Current Approval! Licence Service 16.02.2012! Class A 15.02.2014 Bumiputera contractor status  1. At least 51% of the ownership shares of the MeC company are held by Bumiputera; Equity and Other Major Terms and Conditions Imposed (g) The contractor was found guilty of negligence by the court or any board of inquiry established under any written laws relating to any construction work undertaken; or (h) The contractor violated any terms and conditions of the responsibilities and obligations as stated in paragraph 2 of the CI DB licence. PKK must be informed of any changes to information within 21 days from the date of such changes. 2. Ownership of the shares held by Bumiputera individuals should be more than non­Bumiputera individual shares; 3. At least 51 % of the members of the Board of Directors of the company are held by Bumiputera; 4. The position of Chief Executive, Managing Director or General Manager and other key posts must be held by Bumiputera; Status of Compliance Noted Met and continue to be met
Licences and Permits Held by Subsidiary ComDanv  Issuing Authoritv  Date of First Certification! Date of Issuance of Current Licence  Validity Period! Date of Expiry of Current Licence  Type of Licence! Permit! Approvall Service  Equity and Other Conditions Imposed  Major  Terms  and  Status of ComDlIance  5. At least 51 % of the employees company shall be Bumiputera;  of  the  Mer  6. Financial management shall be controlled by Bumiputera;  7. Organizational charts and functions of the company management must be controlled by Bumiputera;  8. The company shall not sub-contract all the work or assign the whole management of any contracts to other parties; and  9. To ensure the Bumiputera are active partners and play a major role in the company’s business as described in the sub paragraphs 1 to 8 above.  Gabungan Strategik  16.02.2000 (Class B licence wh ich was subsequently upgraded to Class A on 04.12.2001 )! 0103.2012  16.02.2012! 15.02.2014  Class A contractor status  PKK must be informed of any changes to information within 21 days from the date of such changes. PKK is entitled to terminate or suspend the registration of the company as contractor without any notice if it is found that the information given is false or if there is failure to provide the required information.  Met and continue to be met·
Licences and Permits Held by Subsidiary Company Megah Ikhlas  Issuing Authoritv’ CIDB  Date of First Certification! Date of Issuance of Current Licence 04.06.1999/ 30.04.2012  Validity Period! Date of Expiry of Current Licence 14.11.2011/ 13.11.2014 Type of Licence! Permitl Approvall Service Registration as contractor category Grade 7  Equity and Other Major Terms Conditions ImDosed 1. The Certification shall not be transferred. 2. The contractor’s registration shall cancelled, suspended or revoked if: and Status of ComDlIance Met be Noted (a) The contractor does not meet the requirements of any other written law; (b) The contractor has been adjudicated a bankrupt; (c) Winding-up petition filed against the contractor; (d) The contractor vioiates or fails to compiy with any provisions of the CIDB Act; (e) The contractor has obtained the certificate by making or cause the making of any declaration, certification or false representation or fraud, in writing or otherwise; (I) The contractor abandons any construction work undertaken to be carried out without any valid reason;
Date of First  Validity  Licences  Certification/  Period/  Type of  and Permits  Date of  Date of  Licence/  Held by  Issuance of  Expiry of  Permitl  Subsidiary  Issuing  Current  Current  Approval/  Equity and Other Major Terms and  Status of  Company  Authoritv  Licence  Licence  Service  Conditions Imposed  Compliance
(g) The contractor was found guilty of negligence by the court or any board of inquiry established under any written laws relating to any construction work undertaken; or  Noted  (h) The contractor violated any terms and conditions of the responsibilities and obligations as stated in paragraph 2 of the CI DB licence.  Motibina  CIDB  15.07.1997/ 24.09.2010  24,09.2010/ 23.09.2013  Registration as contractor category Grade 7  1. The Certification shall not be transferred. 2. The contractor’s registration shall be cancelled, suspended or revoked if:  Met Noted  (a) The contractor does not meet the requirements of any other written law;  (b) The contractor has been adjudicated a bankrupt;  (c) Winding-up petition filed against the contractor;  (d) The contractor violates or fails to comply with any provisions of the CI DB Act;

4. INFORMATION ON OUR GROUP (Cont’d) 4. INFORMATION ON OUR GROUP (Cont’d) Date of Fi rst  Validity  Licences  Certification!  Period!  Type of  and Permits  Date of  Date of  Licence!  Held by  Issuance of  Expiry of  Permit!  Subsidiary  Issuing  Current  Current  Approvall  Equity and Other Major Terms and  Status of  Company  Authority  Licence  Licence  Service  Conditions Imposed  Compliance  (e) The contractor has obtained the certificate by making or cause the making of any declaration, certification or false representation or fraud, in writing or otherwise;  Noted  (f) The contractor abandons any construction work undertaken to be carried out without any valid reason;  (g) The contractor was found guilty of negligence by the court or any board of inquiry established under any written laws relating to any construction work undertaken; or .  (h) The contractor violated any terms and conditions of the responsibilities and obligations as stated in paragraph 2 of the CIDB licence.  3. The contractor shall comply with all the requirements and provisions in the Contractors Ethics Code
Majlis  10.03.2012  10.03.2012/  Business  This licence must be displayed in the business  Met  Perbandaran  31.12.2012  Licence  premise and the holder of the licence is  Subang Jaya  responsible for renewing the respective licence  before the licence expires.
Date of First  Validity  Licences  Certificatlonl  Periodl  Type of  and Permits  Date of  Date of  Licencel  Held by  Issuance of  Expiry of  Permit!  Subsidiary  Issuing  Current  Current  Approvall  Company  Authority  Licence  Licence  Service  AQRS  Majlis  30.12.20101  01.01.20121  Licence for  Bandaraya  29,12.2011  31.12.2012  Industry and  Petaling Jaya  Business Trade  Jabatan  21.07.2010  16.07,20101  Housing  Perumahan  15.07.2015  Developer’s  Negara  Licence for  “Contours”  Jabatan  27.07.20101  22.07.20111  Advertising and  Perumahan  09,08.2011  21.07.2012  Sales Permit  Negara  for “Contours”  Jabatan  15.12,2010  08.12.20101  Housing  Perumahan  07.12.2013  Developer’s  Negara  Licence for  “Gombak  Grove”  Jabatan  06.01,2012  28.12.20111  Advertisement  Perumahan  27.12.2012  and Sales  Negara  Permit for  “Gombak  Grove”  Majlis  19,07,2011  19.07,20111  Development  Perbandaran  19,07.2012  Order for  Subang Jaya  “Stylo”
Equity and Other Major Terms and Conditions Imposed This licence must be displayed in the business premise The developer is required to deposit a sum of RM200,000 as deposit to extract the licence. This deposit sum shall not be withdrawn unless the written consent has been obtained from the Housing Officer. None The developer is required to deposit a sum of RM200,000 as deposit to extract the licence. This deposit sum shall not be withdrawn unless the written consent has been obtained from the Housing Officer, None None Status of ComDllance  Met  Met and will continue to be met  Not Applicable  Met and will continue to be met  Not Applicable  Not Applicable
4. INFORMATION ON OUR GROUP (Cont’d) Licences and Permits Held by Subsidiary Companv  Issuing Authoritv  Date of First Certification! Date of Issuance of Current Licence  Validity Period! Date of Expiry of Current Licence  Type of Licence! Permitl Approval! Service  Crystal  Majlis  02.10.2009  02.10.20091  Letter of  Aspect  Bandaraya Johor Bahru  01.10.2010It}  approval on a proposed plan to build a Multi Purpose Hall on part of Lot 65352 (Zon 4­3) Jalan Permas 11, Bandar Baru Permas Jaya, Mukim Plentong, Johor Bahru, Johor Darul Takzim  Nusvista  Majlis Bandaraya Petaling Jaya  07.01.2011  07.01.20111 06.01.2012  Development Order for “The Allium”  Majlis Bandaraya Petaling Jaya  07.12.2011  Not Applicable  Building plan approval for “The Altium”
Equity and Other Major Terms and Conditions Imposed The company will comply with the conditions stipulated in the Uniform Building Law 1984 (Amendment) By-Laws (25)/(27) The developer is required to pay a premium of RM290,074 to the Improvement Service Fund(2) The company will comply with the conditions stipulated in the Town and Country Planning Act, 1976 (Act 172) Status of Compliance  Met and will continue to be met  Met  Met and will continue to be met
Notes: The certifications by CIOB are renewed every 3 years.@ The certifications by PKK are renewed every 2 years. Upon Listing, Gabungan Strategik may not be able to comply with certain conditions imposed by PKK in order to maintain the licence whereby in this event, a variation or waiver (where applicable) will be sought by Gabungan Strategik. Gabungan Strategik had informad PKK of the Listing Exercise SUbsequent to the completion ofthe Acquisitions by Gabungan AQRS. I Company No: 912527-A] 4. INFORMATION ON OUR GROUP (Cant’d) (1) Crystal Aspect had on 27 February 2012, submitted a request to the Johor State Economic Planning Unit for an extension of time of 166 days from 1 April 2012 to 14 September 2012, The Johor State Economic Planning Unit had on 14 May 2012 approved the extension of time until 14 September 2012,
(2) A total premium of RM290,074 was paid in the following manner (i) 20% before the ietter of approval for development order is delivered, (Ii) 40% before the letter of approval for earthworks plan is delivered and (iii) 40% before the letter of approval for road and drainage works plans are delivered.

Save as disclosed above, there are no other equity conditions imposed as at the LPD and we have no other major licences, permits or approvals as at the LPD, THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK .4. INFORMATION ON OUR GROUP (Cont’d)

4.15 SEASONALITY The construction and property development industries in Malaysia are cyclical in nature and are highly dependent on the country’s general economic conditions in Malaysia. It generally moves in tandem with the economy, whereby strong economic growth coupled with fiscal stimulus by the Government would spur the growth of the construction and property development industries.
4.16 INTERRUPTION TO BUSINESS We did not experience any interruption to our business, which had significant effects on the operations of our Group, for the past 12 months prior to the date of this Prospectus.
4.17 DEPENDENCY ON CONTRACT/ARRANGEMENTIDOCUMENT/OTHER MATTERS Save for our licences as disclosed in Section 4.14 of this Prospectus, there is no other contracUarrangemenUdocument or other matters that our Group is highly dependent on that could materially affect our business or profitability as at the LPD. Our Group will continually and consistently replenish our construction order book from existing and new customers as well as increasing our land bank in strategic locations in order for us to undertake new property development projects.
4.18 TECHNOLOGY USED OR TO BE USED Our Group relies mainly on the skills and expertise of our management team and employees in executing and completing our construction and property development projects in a timely manner and which meets the requirements and expectations of our customers.
4.19 COMPETITIVE STRENGTHS AND ADVANTAGES We believe our key competitive strengths and advantages are as follows: (i) Our capability of undertaking IBS construction projects In 2003, we secured our first IBS project for the construction of Seko/ah Kebangsaan Brickfie/ds 1, Kuala Lumpur which was successfully completed by fully employing IBS construction method, which involves pre-cast columns, beams and ACOTEC panels. We have also been employing the IBS construction method in another project I.e. the building of 43 additional school blocks in Selangor Darul Ehsan and Kuala Lumpur. IBS is a system of construction which utilises techniques, products, components or building systems which involves prefabricated components and on-site installations. The usage of IBS components requires technically competent and skilled personnel to ensure the successful completion of the project However, due to the higher costs of using IBS components, not many construction companies in Malaysia have undertaken IBS construction projects and hence, those with the necessary skills and competencies in using IBS components for construction in Malaysia is limited. 4. INFORMATION ON OUR GROUP (Cont’d) The usage of IBS components does not require any capital outlay as the IBS components are pre-ordered from the IBS component manufacturers according to the project requirements. The major IBS component manufacturers where our Group sources our IBS components from are Eastern Pretech (M) Sdn Bhd, Precast Products Sdn Bhd and PJD Malta Sdn Bhd. Our usage of IBS and the pre-cast method has benefitted us in terms of: • reduction of site labour;
• quality improvement;
• faster project completion;
• minimal wastage;
• neater and safer construction sites; and
• cleaner environment,

which would not have been possible if the conventional construction method was employed. This is due to the fact that, amongst others, the conventional construction method requires more site labour as construction is done manually and quality may also be compromised as it is dependent on the skills of the site labour. The Government highly promotes the usage of IBS as an alternative to the labour intensive conventional construction method and is hopeful that more private developers will support the Government’s call by using a higher percentage of IBS in the construction of housing and other building projects. The Government has also prescribed the use of the pre-cast method under the IBS in a few sizeable public projects such as Kuala Lumpur International Airport, Petronas Twin Towers and KL Sentral (Source: IBS Roadmap 2003­2010). Premised on the above, we believe that our experience and track record in the usage 01 IBS in our completed and on-going construction projects gives us a competitive advantage when we submit tenders for public and private sector projects which requires the use of IBS. Furthermore, there are barriers to entry for new contractors to employ the IBS as the necessary experience and track record is required in order to ensure the successful completion of an IBS project due to the complexity of the IBS construction method. (ii) Our ability to provide engineering and construction services to both building and civil engineering segments of the construction industry Our expertise ranges from undertaking building construction works to civil engineering construction works. Our building construction works ranges from construction of residential buildings and commercial buildings to schools and government buildings/complexes while our civil engineering construction works includes earthworks, roads, bridges and f1yovers. Our ability to undertake both building and civil engineering construction works provides us with a competitive edge as it allows uS to participate in tenders where building and civil engineering construction expertise is jointly required. 4. INFORMATION ON OUR GROUP (Cont’d) (iii) Established track record and market reputation Recognising the importance of a good reputation, we have continually endeavoured to position ourselves as a reliable contractor that consistently provides high quality services and on a timely basis. Amidst a backdrop of 4,668 Grade G7 contractors registered with CIDB as at 31 March 2012 (Source: www.cidb.qov.mvl, our Group is committed to position ourselves as the preferred builder that customers can rely on. The number of repeat customers and invitations to participate in selected tenders is a testament of our customers’ satisfaction of our services. Our property development projects have also been well received by our customers. We have, over the years, established a name for ourselves as a niche lifestyle property developer offering unique and innovative designs as evidenced by the strong sales recorded for our property development projects that have been launched on minimal advertising expenditure. We also believe the accolades received over the years are testimonies of our strength and has helped build our reputation. Section 4.6.2 of this Prospectus sets out the awards, accreditation and recognitions that we have received over the past years. (iv) Experienced and established management team
A good management team coupled with progressive strategies and policies is critical for our growth, maintaining our stringent quality standards and strengthening our relationship with our customers. This may also pose as a barrier to entry to new entrants into the construction industry. Our management team, led by our Executive Directors, some of whom have more than 20 years of experience in the construction andlor property development industries, are supported by a pool of experienced and committed staff, including our key management, engineers amI project managers. Our management team’s extensive network, dedication, experience and knowledge, have successfully led to our Group’s rapid growth. Our established management team with a proven track record of strong leadership and consistent performance, combining entrepreneurial drive with financial and managerial prudence is also one of the main contributing factors towards our Group’s established reputation and track record.
(v) Healthy cash and gearing position
Our actual Group NA of RM122.26 million and cash and bank balances and fixed deposits as at end of the FYE 2011 of ‘RM50.96 million (before the IPO) reflects our ability to meet most of our short-term obligations. We also have a low actual Group gearing position of 0.55 times as at the FYE 2011 (before the IPO), which enables us to expand and secure bank borrowings if and when necessary.
(vi) Long-term relationships with our customers, suppliers and sub­contractors

Over the years, our Group has nurtured good working business relationships with our customers, suppliers and sub-contractors. We have established good rapport with our existing customers, which consist of Government and GLCs. We have also built long-term relationships with our other customers.

4. INFORMATION ON OUR GROUP (Cont’d) (vii) Our commitment of maintaining our standards of quality and services We believe that it is a crucial aspeclto maintain our standards of quality and services. We have established a reputation for being a reliable contractor and property developer who is able to deliver quality work and services in a timely manner in accordance with the requirements set out by our customers. We have in place, quality management systems, namely the ISO 9001 :2008, QMS accreditation for Gabungan Strategik, Motibina and AQRS. Motibina was also accredited with the OHSAS 18001 :2007 for the provision of construction services for building and civil engineering works. These accreditations provide customers with the assurance that our Group adheres strictly to certain quality processes and standards. (viii) Barriers to entry The level of competition within the construction and property development industries is high. However, possible barriers to entry for new players in respect of these industries may include: • requirement of skilled and experienced technical manpower with extensive construction as well as project management expertise;
• established market penetration for a contractor providing comprehensive construction and engineering services;
• good track record and established reputation; and
• long term relationships with customers, suppliers and sub-contractors.

(ix) Strategically located land banks Our Group owns strategic land banks located in various parts of Malaysia, namely Klang Valley, Pulau Pinang and Johor Darul Takzim, totalling approximately 13 hectares. These land banks are located in strategic areas with access to existing infrastructures and amenities. Our Group has a dedicated and knowledgeable management team who is able to secure strategically located land banks to meet future market demands and trends and hence, enhance the value of our Group. Please refer to Section 9.1.3 of this Prospectus for further details of the land banks owned by our Group as at the LPD. 4.20 FUTURE PLANS AND STRATEGIES 4.20.1 On-going (i) Continuing Participation in Government and GLCs Projects As a construction-based company, we will continue to participate in tenders for projects awarded by the Government and GLCs. As a testament to our track record and expertise on the use of ISS components, Kementerian Pelajaran Malaysia has invited Gabungan Strategik to participate in tenders such as the building of new schools and school ex1ension blocks using the ISS construction method. Gabungan Strategik is confident of successfully securing several projects from these tender exercises. 4. INFORMATION ON OUR GROUP (Cont’d) Our Group, via Gabungan Strategik, is also registered with JKR and SPNB as a Rescue Contractor to undertake projects which have been abandoned or in instances where the previous contractor has been terminated by them. To-{jate, Gabungan Strategik has successfully completed the construction of a housing development for army personnel and Government staff in Ampang, Kuala Lumpur, which is a rescue project for SPNB. Premised on our proven track record in the successful completion of all our construction projects, our Directors envisage that we will continue to be able to secure more Government and GLCs projects in the future. (ii) Diversification in Scope of Construction Services Our Group, via our wholly-owned subsidiary, AQRS, is involved in property development activities that enables our Group to generate in-house projects given that all construction activities for our property development projects will be fully undertaken by our subsidiaries. Our current ongoing property development projects include “Contours” located in Ulu Kelang, Gombak, Selangor Darul Ehsan, “Gombak Grove” located in Setapak, Gombak, Selangor Darul Ehsan and “The Avenue @ Kinrara Uptown” located in Lestari Perdana, Mukim and Daerah Petaling, Selangor Darul Ehsan whereby the construction is undertaken completely by Motibina. Gabungan Strategik, on the other hand, is undertaking the construction of Nusvista’s proposed development of “The Altium” in Damansara Perdana, Petaling Jaya, Selangor Darul Ehsan. Furthermore, given our experience in undertaking both construction and property development activities, our Group intends to venture into turnkey construction. A turnkey contractor provides for the complete planning, design, engineering, procurement, construction and start-up of a construction project which often includes a financing component. As a turnkey contractor, our Group will offer our clients pre-planning, design, construction, engineering and management expertise to provide the best possible project outcome. Therefore, we will be able to initiate and negotiate a wide range of construction work in collaboration with our business partners. This diversification in scope of services via the provision of turnkey construction services will enable us to enhance the range of construction work undertaken. (iii) Participation in PPP Initiatives We also plan to actively participate in the PPP initiative programmes introduced in the 10MP after our Listing. Under the Government’s Economic Transformation Programme, the PPP initiative involves smart and effective partnerships between the public and private sectors. Examples of PPP projects include the proposed developments of the Pharmaceutical Services and Regulatory Complex, the Pediatric Hospital, Universiti Kebangsaan Malaysia, the Fish Landing Port, the Tutoring Hospital of the International Islamic University Malaysia at the Medical Campus in Kuantan, Pahang, the construction of hostels at the Tun Hussein Onn University and Universiti Teknikal Malaysia Melaka and the Integrated Public Transportation Terminal in Gombak, Selangor Darul Ehsan (Source: Unit Kerjasama Antara Swasta website at http://www.ukas.gov.my). As part of our future plans after our Listing, we intend to participate in deferred payment arrangement, PPP initiatives relating to building and infrastructure related projects which commensurate with our expertise and financial resources. The financial impact towards our Group in adopting the deferred payment arrangement will be as follows: 4. INFORMATION ON OUR GROUP (Cont’d) (i) substantial capital outlay up-front to build and complete the project;
(ii) long duration of repayment from the Government;

(iii) a fixed revenue stream (Le. recurring income from the lease rental) over the duration of the lease; and (iv) possible increase in long-term borrowings and interest expense to partially finance the capital outlay.
(iv) Strengthening our Property Development Business

Our Group, via AQRS, has successfully launched 2 residential development projects known as “Contours”, comprising 41 units of “Courtyard Villas Gated Community” with 1 unit clubhouse, a TNB substation and a security booth, located at Ulu Kelang, Gombak, Selangor Darul Ehsan and “Gombak Grove” comprising 25 units of “zero-lot” bungalows together with a TNB substation in Setapak, Gombak, Selangor Darul Ehsan. In addition, Nusvista had, in September 2011, launched “The Altium”, a commercial development comprising 2 blocks of office comprising 11 and 22 floors respectively and 1 block of 3-storey commercial building with 8-storey basement carpark in Damansara Perdana, Petaling Jaya, Selangor Darul Ehsan. Prestige Field also had, in July 2011, launched “The Avenue @ Kinrara Uptown” a commercial development comprising 177 units of shops and 1 unit shopping complex together with all the necessary infrastructure and public utilities in Taman Lestari Perdana, Bandar Puteri Permai, Selangor Darul Ehsan. This has allowed us to position ourselves as a lifestyle developer offering niche products in the Malaysian housing market and creating our own branding as a developer which offers niche lifestyle property products that are unique and modern that would appeal to our target customers. To further strengthen our property development business, our Group plans to acquire new land banks at strategic locations and at reasonable prices. We will then develop these land banks into either commercial or residential properties in line with our business strategy. Therefore, our Board intends to utilise part of the proceeds from our Public Issue for the purpose of acquisition of new land banks. Details of the utilisation of proceeds from our Public Issue are set out in Section 2.8 of this Prospectus. 4.20.2 Within 3 Years (i) Expanding our Construction Business to East Malaysia In line with the development of more efficient building technologies, the Malaysian construction industry is moving towards the adoption of IBS construction method to shorten the construction period and ensure better construction quality. In this regard, our Group is currently studying the feasibility of either acquiring equity interests in a company which is involved in the manufacture of pre-cast and IBS components or undertaking the manufacture of pre-cast and IBS components on a joint venture basis as well as expanding our construction services to East Malaysia. We are also looking into the possibility of being involved in such activity in Sabah through the establishment of a new IBS manufacturing facility. At present, to the best of our Board’s knowledge, there are only a few IBS component manufacturers in East Malaysia. Therefore, there is a potential market for IBS components in East Malaysia for our Group to tap into. 4. INFORMATION ON OUR GROUP (Cont’d) Furthermore, as at the LPD, our Group has undertaken 3 infrastructure projects in Sabah with a contract value of RMB.61 million, RM3.69 million and RM11.05 million, respectively, totaling RM23.35 million. Therefore, as our Group already has existing operations in Sabah, albeit on a smaller scale, our Group plans to further expand our construction business in Sabah and subsequently, Sarawak. However, our Group does not have any plans to expand our property development business to East Malaysia in the immediate future as we are currently focusing on the acquisition of land banks in the Klang Valley, Penang and Johor where there is potential for development and higher acceptance of our Group’s niche products. (ii) Overseas Expansion As part of our expansion strategies, we are currently exploring construction and property development opportunities abroad. We are focusing on opportunities in Indonesia in the immediate future as Indonesia is experiencing high economic growth and is geographically close to Malaysia. Some exploratory studies on property development and/or construction have been undertaken in Indonesia and our Group is in the process of identifying specific business opportunities. The steps currently undertaken by our Group for our Group to venture into the Indonesia market includes: (i) Undertaking exploratory visits;
(ii) Preliminary discussions with potential joint venture partners;

(iii) Familiarising with the market demand and supply conditions; (iv) Understanding the market’s acceptance of new property development products; and
(v) Understanding legal, financial and taxation aspects of doing business in Indonesia.

For overseas projects, our Group’s plan is to undertake contracts on a joint venture basis with the local contractors/partners in the overseas market as their local knowledge will be invaluable to us and reduces our risk of entering into a new market. Nonetheless, we intend to adopt a cautious approach in our ventures abroad by focusing on projects financed and promoted by established organisations. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

 

 

 

 

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