Business Overview

I I 4. INFORMATION ON OUR GROUP 4.1 BACKGROUND INFORMATION 4.1.1 History and Key Milestones 4.1.1.1 History of Our Group We were incorporated in Malaysia under the Act as a public limited company on 5 December 2013 under our present name to serve as an investment holding company and a vehicle for our listing. Our Group’s principal business activities are in engineering and construction, where we are involved in piling and foundation works, bridge construction, building construction and other civil works. Our other business activity is in the manufacture and installation of prefabricated building system. Over the years, we have established ourselves as a bore piling specialist with a track record of approximately 12 years. Bore piling is a method used in piling and foundation works. Our Group was founded by Dato’ Ang Cheng Siong, our Group Managing Director, Siew Mun Lout, our Executive Director, Dato’ Ir Dr Khoo Ping Sen, our Executive Director, and Yap Yoon Fatt, our Head of Plant Division. All of our founders have been instrumental in contributing to the strategic direction, growth, development, operation and success of our Group. The history of our business can be traced back to 1992 with the incorporation of Ikhmas Jaya where our initial actiVity was in general civil engineering works. In 1994, we successfully secured and commenced our first project as detailed in item 1, Section 41.1.2 of this Prospectus. In 1996, we incorporated Rekavista, which served as a special purpose vehicle to undertake civil engineering and building construction projects. In 2005, Rekavista became our wholly­owned subsidiary and remained an inactive company until 2012, when we undertook piling and foundation works for the KL Eco City Parcel C proJect. In 1997, we incorporated Aliran Ribuan Sdn Bhd (now known as MM2 Builders) and only commenced business in 1999 as a manufacturer of concrete products. In June 2014, MM2 Builders changed its business activity to the installation of prefabricated building system to support the business operations of MM2 Building System. Also in 1997, we were awarded two (2) contracts to construct bridges within Putrajaya as detailed in item 2, Section 4.1.1.2 of this Prospectus, which provided us with the track record to secure other bridge construction projects. In 1999, we incorporated RV Equipment Sdn Bhd (now known as Ikhmas Equipment) to provide rental service of construction machinery and equipment for in-house use as well as for external customers. In 2000, we incorporated Rekavistq Sarawak to undertake general civil and building construction works in Sarawak. Rekavista Sarawak secured and commenced its first project in 2002 as detailed in item 4, Section 4.1.1.2 of this Prospectus. In 2003, we secured our first bUilding bore piling contract, as detailed in item 5, Section 4.1.1.2 of this Prospectus. In 2004, we purchased our first bore piling machine as we aim to expand our bore piling and foundation business. Prior to that, we were renting machinery and equipment. With our own machinery and equipment, we have since been able to better control our work schedule by minimising dependency on third party supplier of machinery and equipment. In 2004, we incorporated IJ Geotechnic to undertake geotechnical works and provide CSM technology, which are complementary to our bore piling and foundation works. Geotechnical works commonly precede any piling and foundation works. In addition, planning and specification for piling and foundation works, including, amongst others, the type of piling, number of piles, dimension of piles and depth of piling, are dependent on geotechnical studies and works. CSM technology is a complementary technology used in constructing retaining walls. 4. INFORMATION ON OUR GROUP (Cont’d) In 2006, we undertook piling and foundation works for an administration complex in Putrajaya as detailed in item 7, Section 4.1.1.2 of this Prospectus. We adopted the project owner’s Environmental Management System processes and practices, and were subsequently awarded a certificate of recognition for implementing “Best Environmental Management System”. This recognition will provide us with an advantage when bidding for future jobs from the project owners. In 2010, we undertook the design and construction of Pra; Swing Bridge in mainland Penang as detailed in item 10, Section 4.1.1.2 of this Prospectus. We received nationwide recognition for this project when it was awarded the IEM Outstanding Engineering Achievement Award by The Institution of Engineers Malaysia in 2014. In 2012, we incorporated MM2 Building System and ventured into the manufacture of prefabricated building system using the proprietary “M2 EMMEDUE® Advanced BUilding System” machinery and equipment from our supplier, EMMEDUE® S.pA in Italy. As at the LPD, MM2 Building System together with its supporting arm MM2 Builders are undertaking two (2) ongoing projects with a total of approximately RM61 million. During the same year in 2012, we undertook piling and substructure works for Parcel C of the KL Eco City project at Bangsar, Kuala Lumpur as detailed in item 11 (a), Section 4.1.12 of this Prospectus. For this project, we proposed an alternative design using a CSM wall to replace the specified diaphragm wall system. Our CSM wall design saved two (2) months in construction time and approximately RM2.7 million in project cost as compared to the original tender specification which has resulted in our successful securing of the project. In addition, it was our maiden project using CSM technology. In 2013, we undertook building construction works for a service apartment in Ampang, Kuala Lumpur as detailed in item 12(a), Section 4.1.1.2 of this Prospectus. In the same year, we undertook our largest project to-date based on contract value. This was for infrastructure works for the Subang-Skypark Terminal Railway Track project as detailed in item 12(b), Section 4.1.1.2 of this Prospectus. Since 2003, we have made a concerted effort to establish ourselves as specialists in bore piling. For FYE 2014, our Group achieved revenue of approximately RM293.51 million. 4.1.1.2 Key Project Milestones of Our Group Our Group’s key project milestones are summarised as follows:­No.  Year~ Commencement Projects  # Total Contract Value (RM’ million)  1.  1994  Ikhmas Jaya secured and commenced our first project for the design, construction and commissioning of water pipe laying works from Sentul Hill Reservoir to Kuala Lumpur City Centre Development Area which was completed in 1995  10  2.  1997  Ikhmas Jaya was awarded two (2) contracts to construct bridges within Putrajaya as follows:­(a) Bridge BR 10; and (b) Putra Bridge; which both were completed in 1999  37 57  3.  2001  Ikhmas Jaya secured a contract for the construction of a bridge at Chenor, Pahang which was completed in 2004  85
4. INFORMATION ON OUR GROUP (Cont’d) No.  Year of Commencement  Projects  # Total Contract Value (RM’ million)  4.  2002  Rekavista Sarawak secured and commenced its first project for the construction of a secondary school in Sibu, Sarawak which was completed in 2004  17  5.  2003  Ikhmas Jaya secured our first building bore piling contract for the construction of a diaphragm wall for Prince Court Medical Centre, a private hospital in Kuala Lumpur which was completed in the same year  19  6.  2004  Ikhmas Jaya secured our first infrastructure bore piling project for the construction of contiguous bored pile walls for the Gombak River Diversion flood mitigation project in Kuala Lumpur which was completed in 2006  37  7.  2006  Ikhmas Jaya undertook piling and foundation works for an administration complex, “Pusat Pentadbiran Kerajaan Persekutuan”, in Precinct 5, Putrajaya which was completed in 2008  72  8.  2008  fkhmas Jaya commenced piling and foundation works for Paradigm Mall in Kelana Jaya, Selangor  30  9.  2009  Ikhmas Jaya undertook the following:­ (aJ the design-and-build bUilding construction of a training centre for the Royal Malaysia Police (PULAPOL) in Terengganu; and  112  (b) the infrastructure works, ground improvement, bridge structures, drainages, road works, landscape and associated works for JB-Nusajaya Highway -Section 2: CH 2400 10 CH 9500 which was completed in 2011  49  10.  2010  Ikhmas Jaya undertook the design and construction of the Prai Swing Bridge In mainland Penang for the railway electrification and double tracking project from Ipoh to Padang Besarwhich was compleled in August 2013 (a) Rekavista undertook contiguous bored pile wall, earthworks, piling and basement structure works for Parcel C of the KL Eco City project at Bangsar, Kuala Lumpur which was completed in May 2014;  80 153 11.  2012  (b) Ikhmas Jaya secured an additional contract for the substructure works and elevated roadway for Parcel D of the KL Eco City project; and  109  (c) Ikhmas Jaya was awarded a contract to undertake bore piling, caisson piles and micro piles works for Package V8 of the Klang Valley Mass Rapid Transit Sungai Buloh-Kajang Line project in Selangor (a) Ikhmas Jaya undertook superstructure and other finishing works including M&E and interior design works for Damai 88 service apartments in Ampang, Kuala Lumpur; and (b) Ikhmas Jaya undertook infrastructure works for Subang-Skypark Terminal Railway Track -Phase 1, a railway project between Saujana and Skypark Terminal in Subang  98 111 270  12.  2013
I I 4. INFORMATION ON OUR GROUP (Cant’d) Note:­# Total contract value includes variations orders.
Save as disclosed in Sections 4.1.1.1 and 4.1.1.2 above, there were no material changes in the mode of conducting our Group’s business and there were no material changes in the types of products produced or services rendered in the course of our Group’s history up to the LPD. Save as disclosed in Section 4.14.6 of this Prospectus, there were no acquisitions or disposals of material assets other than in the ordinary course of our business for the past four (4) FYE 2011 to FYE 2014 and up to the LPD. Our Group has never been involved in any bankruptcy, receivership or similar proceedings. Please refer to Section 4.4.1 for the awards and recognition of our Group.
4.1.2 Share Capital and Changes in Share Capital Our present authorised share capital is RM250,000,000 comprising 1,000,000,000 Shares, of which RM98,500,000 comprising 394,000,000 Shares have been issued and fUlly paid-up. Details of the changes in our issued and paid-up share capital since incorporation are as follows: ­No. of
I Cumulative Issued Date of Shares Par and Paid-up Allotment Allotted Value Consideration Share Capital (RM) (RM) Subscribers’ shares 2 1.00 2t5.122013 100 Cash25.04.2014 98 100 07.05.2015 0.25300 Subdivision 100 03.06.2015 393,999,600 Shares issued as consideration for the 0.25 98,500,000 Acquisition of lkhmas Jaya Upon completion of the Public Issue, our enlarged issued and paid-up share capital will be increased to RM130,000,000 comprising 520,000,000 Shares. None of Ikhmas Berhad’s shares as tabulated above were Issued at a discount, on special terms or instalment payment terms. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital of Ikhmas Berhad. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) 4.1.3 Corporate Structure As at the LPO, our corporate structure is as follows:­lkhmas Berhad 100%  I  60%  MM2 Building System

100% 100% ….
MM2 Builders IJ Geotechnic The details of our subsidiaries are as follows-Corporation  Datel Place of Incorporation  Issued and Paid-up Share Capital (RM)  Equity Interest (%j  Principal Activities  Ikhmas Jaya  12.12.19921 Malaysia  30,000,000  100.0  Piling and foundation works, construction of bridges and buildings, and other civil works  MM2 Building System  21.06.20121 Malaysia  401,000  600  Manufacture of prefabricated building system  Subsidiaries held by Ikhmas Jaya  Rekavista  14.06.19961 Malaysia  2,000,000  1000  General civil construction  and  building  Ikhmas Equipment  08.10.19991 Malaysia  2  1000  Rental of plant, machinery and equipment  IJ Geotechnic  02.07.20041 Malaysia  2  100.0  Geotechnical works and provision of CSM technology  Subsidiary held by MM2 Building System  MM2 Builders  05.11.19971 Malaysia  100,000  100.0  Installation of building system  prefabricated  Subsidiary held by Rekavista  Rekavista Sarawak  23.06.20001 Malaysia  100  100.0  General civil construction  and  building
4.  INFORMATION ON OUR GROUP (Cont’d)  4.1.4  Our Subsidiaries  4.1.4.1  Ikhmas Jaya  (a)  Background and History  Ikhmas Jaya was incorporated in Malaysia under the Act on 12 December 1992 as a private limited company under the name of Ikmas Jaya Sdn Bhd It changed and assumed its present name on 28 September 1994.  Ikhmas Jaya commenced business on 1 September 1994.  (b)  Principal Activities and Products! Services  Ikhmas Jaya is principally engaged in piling and foundation works, construction of bridges and buildings, and other civil works.  (c)  Substantial Shareholder  Ikhmas Jaya is a wholly-owned subsidiary of our Company.  (d)  Share Capital  The authorised share capital of Ikhmas Jaya is RM50,000,000 comprising 50,000,000 ordinary shares of RM1.00 each. The issued and fully paid-up share capital of Ikhmas Jaya as at the LPD is RM30,000,000 comprising 30,000,000 ordinary shares of RM1.00 each.  The changes in the issued incorporation are as follows:­ and  fully  paid-up  share  capital  of  Ikhmas  Jaya  since  its
Date of Allotment  No. of Ordinary Shares Allotted  Par Value (RM)  Consideration  Cumulative Issued and Paid-up Share Capital (RM)  1212.1992  2  1.00  Subscribers’ shares  2  25.11.1994  249,998  1.00  Cash  250,000  03.06.1996  750,000  1.00  Bonus shares issued on the basis of 3 new ordinary shares for everyone (1) existing ordinary shares held  1,000,000  1106.2001  4,000,000  1.00  Bonus shares issued on the basis of fOUf (4) new ordinary shares for every one (1) existing ordinary shares held  5,000,000  28.09.2007  15,000,000  1.00  Bonus shares issued on the basis of three (3) new ordinary shares for every one (1) existing ordinary shares held  20,000,000  25.03.2011  10,000,000  1.00  Bonus shares issued on the basis of one (1) new ordinary shares for every two (2) existing ordinary shares held  30,000,000
None of Ikhmas Jaya’s shares as tabulated above were issued at a discount, on special terms or instalment payment terms. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital of Ikhmas Jaya, 44 4. INFORMATION ON OUR GROUP (Cont’d) (e) Subsidiaries and Associates As at the LPD, Ikhmas Jaya’s subsidiaries are Rekavista, Ikhmas Equipment and IJ Geotechnic. Ikhmas Jaya does not have any associated company. 4.1.4.2 MM2 Building System (a) Background and History
MM2 Building System was incorporated in Malaysia under the Act on 21 June 2012 as a private limited company under its present name. MM2 Building System commenced business on 21 June 2012.

(b) Principal Activities and Products! Services MM2 Building System is principally engaged in manufacture of prefabricated building system.
(c) Substantial Shareholders MM2 BUilding System is a 60.0% owned subsidiary of our Company. The substantial shareholders of MM2 Building System are as follows:­

Name  Direct  Indirect  No. of Ordinary Shares of RM1.00 Held  (%)  No. of Ordinary Shares of RM1.00 Held  (%)  Ikhmas Berhad Pang Kim Leen IJ Holdings Goh Kim Due  240,600 160,400 — 60.00 40.00 — –(~) 240,600 (b) 160,400  –60.00 40.00
Notes:­(a) Deemed interested by virtue of ils shareholding in Ikhmas Berhad pursuant to Section 6A of the Act.
(b) Deemed interested by virtue of the shareholding of his spouse, Pang Kim Leen pursuant to Section 134(12)(c) of the Act.

(d) Share Capital The authorised share capital of MM2 Building System ;s RM1 ,000,000 comprising 1,000,000 ordinary shares of RM1.00 each. The issued and fully paid-up share capital of MM2 Building System as at the LPD is RM401 ,000 comprising 401,000 ordinary shares of RM1.00 each The changes in the issued and fully paid-up share capital of MM2 Building System since its incorporation are as follows: ­Date of Allotment  No. of Ordinary Shares Allotted  Par Value (RM  Consideration  Cumulative Issued and PaidMup Share Capital (RM)  21.06.2012 27.01.2014  1,000 400,000  1.00 1.00  Subscribers’ shares Cash and machinery and tools  1,000 401,000
4. INFORMATION ON OUR GROUP (Cont’d) None of MM2 Building System’s shares as tabulated above were issued at a discount. on special terms or instalment payment terms. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital of MM2 Building System. (e) Subsidiary and Associated Company As at the LPD, MM2 Building System’s sUbsidiary is MM2 Builders. MM2 Building System does not have any associated company. 4.1.4.3 Rekavista (a) Background and History
Rekavista was incorporated in Malaysia under the Act on 14 June 1996 as a private limited company under its present name. Rekavista commenced business on 1 November 1997.

(b) Principal Activities and Productsl Services Rekavista is principally engaged in general civil and building construction.
(c) Substantial Shareholders
Rekavista is a wholly-owned subsidiary of Ikhmas Jaya, which in turn is a wholly-owned subsidiary of our Company.
(d) Share Capital

The authorised share capital of Rekavista is RM2,000,000 comprising 2.000,000 ordinary shares of RM1.00 each. The issued and fully paid-up share capital of Rekavista as at the LPD is RM2,000,000 comprising 2,000,000 ordinary shares of RM1.00each. The changes in the issued and fully paid-up share capital of Rekavista since its incorporation are as follows:­Date of Allotment  No. of Ordinary Shares Allotted  Par Value (RM)  1406.1996  2  1.00  29.12.1998  98  1.00  23.091999  999,900  100  28.07.2004  1.000,000  1.00
Consideration Subscribers’ shares Cash Bonus shares issued on the basis of 9,999 new ordinary shares for every one (1 ) existing ordinary shares held Bonus shares issued on the basis of one (1) new ordinary shares for every one (1) existing ordinary shares held Cumulative Issued and Paid-up Share Capital (RM) 2 100 1,000,000 2,000,000 None of Rekavista’s shares as tabulated above were issued at a discount, on special terms or instalment payment terms. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital of Rekavista. 4. INFORMATION ON OUR GROUP (Cont’d) (e) Subsidiary and Associated Company As at the LPO, Rekavista’s subsidiary is Rekavista Sarawak. Rekavista does not have any associated company.
4.1.4.4 Ikhmas Equipment (a) Background and History Ikhmas Equipment was incorporated in Malaysia under the Act on 8 October 1999 as a private limited company under the name of RV Equipment Sdn Bhd. It changed and assumed its present name on 28 January 2014. Ikhmas Equipment commenced business in July 2000. (b) Principal Activities and Productsl Services Ikhmas Equipment is principally engaged in rental of plant, machinery and equipment.
(c) Substantial Shareholders
Ikhmas Equipment is a wholly-owned subsidiary of Ikhmas Jaya, which in turn is a wholly­owned subsidiary of our Company.
(d) Share Capital

The authorised share capital of Ikhmas Equipment is RM100,000 comprising 100,000 ordinary shares of RM1.00 each. The issued and fully paid-up share capital of Ikhmas Equipment as at the LPO is RM2 comprising 2 ordinary shares of RM1.00 each. There are no changes in the issued and fully paid-up share capital of Ikhmas Equipment since its incorporation. None of Ikhmas Equipment’s shares were issued at a discount, on special terms or instalment payment terms. As at the LPO, there are no outstanding warrants, options, convertible securities or uncalled capital of Ikhmas Equipment. (e) Subsidiary and Associated Company As at the LPO, Ikhmas Equipment does not have any subsidiary or associated company.
4.1.4.5 IJ Geotechnic (a) Background and History
IJ Geotechnic was incorporated in Malaysia under the Act on 2 July 2004 as a private limited company under its present name. IJ Geotechnic commenced business on 4 July 2004.

(b) Principal Activities and Productsl Services IJ Geotechnic is principally engaged in geotechnical works and provision of CSM technology.
(c) Substantial Shareholders

IJ Geotechnicis a wholly-owned subsidiary of Ikhmas Jaya. which in turn is a wholly-owned subsidiary of our Company. 4. INFORMATION ON OUR GROUP (Cont’d) (d) Share Capital The authorised share capital of IJ Geotechnic is RM100,000 comprising 100,000 ordinary shares of RM1.00 each. The issued and fully paid-up share capital of IJ Geotechnic as at the LPD is RM2 comprising 2 ordinary shares of RM1.00 each. There are no changes in the issued and fully paid-up share capital of IJ Geotechnic since its incorporation. None of IJ Geotechnic’s shares were issued at a discount, on special terms or instalment payment terms. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital of IJ Geotechnic. (e) Subsidiary and Associated Company As at the LPD, IJ Geotechnic does not have any subsidiary or associated company.
4.1.4.6 MM2 Builders (a) Background and History MM2 Builders was incorporated in Malaysia under the Act on 5 November 1997 as a private limited company under the name of Aliran Ribuan Sdn Bhd and changed its name to Reka Concrete Products Sdn Bhd on 3 September 1999. On 18 June 2014, it changed and assumed its present name. MM2 Builders commenced bUSiness on 29 October 1999. (b) Principal Activities and Productsl Services MM2 Builders is principally engaged in the installation of prefabricated building system.
(c) Substantial Shareholders
MM2 Builders is a wholly-owned subsidiary of MM2 Building System, which in turn is a 60.0% owned subsidiary of our Company.
(d) Share Capital

The authorised share capital of MM2 Builders is RM100,000 comprising 100,000 ordinary shares of RM1.00 each. The issued and fully paid-up share capital of MM2 Builders as at the LPD is RM100,000 comprising 100,000 ordinary shares of RM1.00 each. The changes in the issued and fully paid-up share capital of MM2 Builders since its incorporation are as follows:­Date of Allotment  No. of Ordinary Shares Allotted  Par Value Consideration (RM)  Cumulative Issued and Paid-up Share Capital (RM)  05.11.1997  2  1.00 Subscribers’ shares  2  12.11.1999  99,998  1,00 I Cash  100’~
None of MM2 Builders’ shares as tabulated above were issued at a discount, on special terms or instalment payment terms. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital of MM2 Builders. 48 4. INFORMATION ON OUR GROUP (Cont’d) (e) Subsidiary and Associated Company As at the LPD, MM2 Builders does not have any subsidiary or associated company.
4.1.4.7 Rekavista Sarawak (a) Background and History
Rekavista Sarawak was incorporated in Malaysia under the Act on 23 June 2000 as a private limited company under its present name. Rekavista Sarawak commenced business on 1 December 2000.

(b) Principal Activities and Products! Services Rekavista Sarawak is principally engaged in general civil and building construction
(c) Substantial Shareholders
Rekavista Sarawak is a wholly-owned sUbsidiary of Rekavista, which in turn is a wholly­owned subsidiary of our Company.
(d) Share Capital

The authorised share capital of Rekavista Sarawak is RM100,000 comprising 100,000 ordinary shares of RM 1.00 each. The issued and fUlly paid-up share capital of Rekavista Sarawak as at the LPD is RM1 00 comprising 100 ordinary shares of RM1.00 each. The changes in the issued and fully paid-up share capital of Rekavista Sarawak since its incorporation are as follows: ­Date of Allotment  No. of Ordinary Shares Allotted  I Par Value Consideration (RM)  Cumulative Issued and Paid-up Share Capital (RM)  23.6.2000  4  100 Subscribers’ shares  4  26.6.2000  96  1.00 Cash  100
None of Rekavista Sarawak’s shares as tabulated above were issued at a discount, on special terms or instalment payment terms. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital of Rekavista Sarawak. (e) Subsidiary and Associated Company As at the LPD, Rekavista Sarawak does not have any subsidiary or associated company. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) 4.2 LISTING SCHEME In conjunction with, and as an integral part of the listing of and quotation for our entire enlarged issued and paid-up share capital on the Main Market of Bursa Securities, our Company undertook a Listing Scheme, which involved the following:­4.2.1 Subdivision We undertook a subdivision of 100 ordinary shares of RM1.00 each into 400 new ordinary shares of RM0.25 each in our Company on the basis of four (4) new Shares for everyone (1) existing ordinary share of RM1.00 each held. The Subdivision resulted in the issued and paid-up share capital of our Company being increased from 100 ordinary shares of RM1.00 each t0400 Shares. The Subdivision was completed on 7 May 2015. 4.2.2 Acquisitions (al Acquisition of Ikhmas Jaya We had entered into a conditional share sale agreement dated 17 June 2014 and a supplemental share sale agreement dated 29 August 2014 with the Vendors to acquire the entire issued and paid-up share capital of Ikhmas Jaya comprising 30,000,000 ordinary shares of RM100 each for a purchase consideration of RM98,499,900 satisfied wholly by the issuance of 393,999,600 Ikhmas Berhad Shares at an issue price of RMO.25 per Ikhmas Berhad Share. The purchase consideration of Ikhmas Jaya was based on the adjusted proforma consolidated NTA of Ikhmas Jaya (comprising Ikhmas Jaya, Rekavista, IJ Geotechnic and Rekavista Sarawak) as at 31 December 2013 after taking into account the dividend payment, provision for real property gain tax and adjustment to the fair value (net of deferred taxation) of the properties of Ikhmas Jaya of RM13, 169,076 as set out below:­RM Proforma consolidated NTA of Ikhmas Jaya as at FYE 2013 96,241,241 Payment of dividend-in-specie by transferring the equity interest of Ikhtisas Emas Sdn I’) (10,131,181) Bhd Provision for real property gain tax arising from payment of dividend-in-specie (456,465)
Add: Fair value adjustment to certain properties of the Ikhmas Jaya (net of deferred taxation) Ib) 13,169,076 Adjusted proforma consolidated NTA of Ikhmas Jaya as at FYE 2013 98.822,671 Notes: ­(a) Please refer to Note (2) in Section 8.1.1 of this Prospectus for further details of the payment of dividend-in· specie.
(b) The fair value adjustment arising from the revaluation of the properties of lkhmas Jaya is as set out below:­

(A)  (B)  (C = A -B)  (0)  (E=C  0)  (F)  (G -E x F)  Market  NBV as at  Gross  Deferred  Net  Equity  Amount of  Value*  31.12.2013  Surplus  Taxation  Surplus  Interest  Surplus  RM  RM  RM  RM  RM  %  RM  Ikhmas Jaya  25,240,000  11,326,160  13,913,840  744,764  13,169.076  100.00  13,169,076
The  revaluation  of the  properties  is  based  on  market value  as  appraised by  the  Independent Registered  Valuers.  Please  refer  to  Sections  4.14.2 and  12 of this  Prospectus for further details  on  valuation  of the  properties.  50
4. INFORMATION ON OUR GROUP (Cont’d) The shareholdings of the Vendors in our Company pursuant to the Acquisition of Ikhmas Jaya are as follows:­Shareholders  No. of Ordinary Shares of RM1.00 Each Held in Ikhmas Jaya  Equity Interest %  No. of Ikhmas Purchase Berhad Consideration Shares Issued RM  Dato’ Ang Cheng Siong Aura Perdana Dato’ Ir Dr Khoo Ping Sen Slew Mun Lout Yap Yoon Fall Yap Beng Teck Woo Chee Meng  9,175,000 8,411,000 7,157,000 2,684,000 1,373,000 600,000 600,000  30.58 28.04 23.86 8.95 4.57 2.00 2.00  30.124,549 27,616,100 23,498,751 8.812,500 4,508,000 1,970,000 1,970,000  120,498.196 110,464,400 93,995,004 35,250,000 18,032,000 7,880,000 7,880,000  Total  30,000,000  100.00  98,499,900  393,999,600
(b) Acquisition of Ikhmas Equipment
Ikhmas Jaya had entered into a conditional share sale agreement dated 17 June 2014 with Rekavista to acquire 100.0% of the issued and paid-up share capitai of Ikhmas Equipment comprising 2 ordinary shares of RM1.00 each for a cash consideration of RM1 ,480,000. The purchase consideration of Ikhmas Equipment was based on the audited NTA of Ikhmas Equipment as at 31 December 2013 of RM1,482,340 and was satisfied via internally generated funds.
(c) Acquisition of 60% MM2 Building System
We had entered into a conditional share sale agreement dated 17 June 2014 with Ikhmas Jaya to acquire 60.0% of the issued and paid-up share capital of MM2 Building System comprising 240,600 ordinary shares of RM1.00 each for a cash consideration of RM260,000. The purchase consideration of MM2 BUilding System was based on the 60.0% of the audited NTA of MM2 Building System as at 31 December 2013 of RM263,885 and was satisfied via internally generated funds.
(d) Acquisition of MM2 Builders

MM2 Building System had entered into a conditional share sale agreement dated 17 June 2014 with Rekavista to acquire 100.0% of the issued and paid-up share capital of MM2 Builders comprising 100,000 ordinary shares of RM100 each for a cash consideration of RM2. The purchase consideration of MM2 Builders was based on the audited net tangible liabilities of MM2 Builders as at 31 December 2013 of RM125,267 and was satisfied via internally generated funds. The Acquisition of Ikhmas Jaya resulted in our issued and paid-up share capital being increased from 400 Ikhmas Berhad Shares to 394,000,000 Ikhmas Berhad Shares. The new Ikhmas Berhad Shares issued pursuant to the Acquisition of Ikhmas Jaya ranked pari passu in all respect with our existing Ikhmas Berhad Shares, except that the new Ikhmas Berhad Shares will not be entitled to any dividends, rights, allotment or other distributions declared, made or paid prior to the date of allotment and issuance of the said Ikhmas Berhad Shares. The Acquisitions were compieted on 3 June 2015. 4. INFORMATION ON OUR GROUP (Cont’d) 4.2.3 Transfer Following the Subdivision and Acquisitions, the following shareholders transferred their respective Ikhmas Berhad Shares to IJ Holdings. an investment holding company:­Shareholders  No. of Ikhmas Berhad Shares  %  Dato’ Ang Cheng Siang Aura Perdana Dato’ Ir Dr Khoo Ping Sen Siew Mun Lout Yap Yoon Fat! Yap Beng Teck Woo Chee Meng  120,498,400 110,464,400 93,995.200 35,250.000 18.032.000 7,880,000 7.880,000  3058 28.04 23.86 8.95 4.57 2.00 2.00  Total  394,000,000  100.00
The Transfer was completed on 3 June 2015.  Further details of IJ Holdings are disclosed in Section 6.1.2.1 of this Prospectus.  4.2.4  IPO  SUbsequently, we are undertaking an IPO. the details of which are set out in Section 2.3 of  this Prospectus.  4.2.5  Listing  Upon completion of the abovementioned Subdivision. Acquisitions, Transfer and IPO. we will  seek a listing of and quotation for our entire enlarged issued and paid-up share capital of  RM130,OOO.000 comprising 520,000,000 Shares on the Main Market of Bursa Securities.  [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
4. INFORMATION ON OUR GROUP (Cont’d) 4.3 OVERVIEW OF OUR GROUP’S BUSINESS MODEL AND OVERALL STRATEGY Our Group’s business model is depicted in the diagram below:­5pe~;alisJsin Bore Jimng Own Fleet-of Machinery and Equipment
4.3.1 Our Business Activities In,.House Design and ‘Engineering Capabilities Qualified and Experienced Management and Technical learn
Our Group’s principal business activities are in engineering and construction, where we are involved in piling and foundation works, bridge construction, building construction and other civil works. Our other business activity is in the manufacture and installation of prefabricated building system. Over the years, we have established ourselves as a bore piling specialist Our piling and foundation works, and construction of bridges and buildings are synergistic activities as we commonly undertake piling and foundation works in conjunction with the construction of bridges and buildings. Our other civil works consists of general civil engineering works such as water, gas and sewerage pipe laying works, flood mitigation works and construction of sewerage treatment plant These other civil works were our Group’s initial business activities which provided our Group with the knowledge and experience in general civil engineering works. Currently, our Group do not focus on other civil works. For the FYE 2014, piling and foundation works was our largest revenue contributor, accounting for approximately 54.75% of our Group’s total revenue. Construction of bridges and buildings accounted for approximately 42.26% of our Group’s total revenue for FYE 2014. There was no revenue contributed from other civil works for FYE 2014. Our other business activity include the manufacture and installation of prefabricated building system which is a complementary business activity as prefabricated building system is a bUilding construction technology. For FYE 2014, manufacture and installation of prefabricated building system accounted for approximately 2.99% of our Group’s total revenue. 4. INFORMATION ON OUR GROUP (Cont’d) 4.3.2 Target Markets and Customer Base Our target markets include both the private and public sectors for the provision of our products and services. For FYE 2014, private sector projects represented approximately 49.98% of our Group’s total revenue while public sector projects represented the remaining of approximately 50.02% of our Group’s total revenue. As such, we are able to address the entire spectrum of the market in Malaysia to provide our business with sustainability and growth. Our customer base comprises main contractors who are primarily responsible for the delivery of the total project, as well as project owners that directly award the relevant package for our work scope. Revenue from main contractors accounted for approximately 70.06% of our Group’s total revenue for the FYE 2014. Our revenue from main contractors was mainly in relation to piling and foundation works. The main contractor of a project is responsible for the total project, which commonly includes piling and foundation works. The main contractor would subcontract the relevant piling and foundation works to us. 4.3.3 Competitive Advantages and Key Strengths Our competitive advantages and key strengths provide us with the platform to compete against other piling, foundation and construction companies, as well as facilitate business sustenance and future growth. Our competitive advantages and key strengths are as follows:­(a) Specialists in Bore Piling Since our first bore piling project in 2003, we have established ourselves as bore piling specialists with wide experience in various building and infrastructure projects. We have developed strong bore piling technical skills and knowledge through our experience. This enables us to propose alternative design options to our customers, which are sometimes lower in costs without compromising quality and functionality. The ability to propose lower cost solutions has helped us in winning tenders for bore piling works. Further, since our first bore piling contract in 2003, we have completed bore piling works for a total of 49 building and infrastructure projects with total contract sum of approximately RM823 million. As at the LPD, our ongoing piling and foundation projects which comprised mainly bore piling works amounted to a total contract sum of approximately RM275 million. We have in-house Engineers that are able to design optimum bore piling systems, taking into consideration factors such as cost effectiveness, practicality, safety, durability and environmental impact. As at the LPD, 30 out of our leam of 37 Engineers were focused in the design and construction work for bore piling, headed by our Executive Directors, Siew Mun Lout and Dato’ Ir Dr Khoo Ping Sen. (b) In-House Design and Engineering Capabilities As an engineering establishment, we have in-house technical professionals including Civil, Structural and Geotechnical Engineers. Our Engineers are involved in the technical design of piling and foundation works, and construction of bridges and buildings. Since inception, we have undertaken design-and-build contracts for projects involving piling and foundation works, bridges, buildings and sewerage treatment plants. Notably, we were awarded the prestigious IEM Outstanding Engineering Achievement Award in 2014 by the Institution of Engineers Malaysia for our Prai Swing Bridge for the railway electrification and double tracking design-and-build project between Ipoh and Padang Besar. This is a further testament to our in-house design and engineering capabilities. I 4. INFORMATION ON OUR GROUP (Cont’d) We are positioned as a total solutions provider for piling and foundation works, and construction of bridges and buildings. We are capable of proposing design and engineering processes and undertaking responsibilities for the total construction process to meet our customers’ requirements. Furthermore, we are also capable of providing alternative designs to our customers. This capability enhances our Group’s profile and enables us to tender and secure design-and-build projects. As at the LPD, we employed a total of 37 qualified Engineers who are involved in our piling and foundation works, and construction of bridges and buildings.. (c) In the Engineering and Construction Business for Approximately 20 Years We have been in the engineering and construction business for approximately 20 years and have successfully completed a wide range of projects with total contract sum of approximately RM1.7 billion for both the public and private sectors. In addition, we have been involved in various high-profile public and private sector projects, such as the Putra Bridge in Putrajaya, Duta-Ulu Kelang Expressway in Kuala Lumpur, railway electrification and double tracking project between Ipoh and Padang Besar at the Malaysia­Thailand border, Storm Water Management and Road Tunnel in Kuala Lumpur, the Klang Valley Mass Rapid Transit Sungai BUloh-Kajang Line in Selangor, Kelana Jaya Light Rail Transit extension in Selangor and KL Eco City in Kuala Lumpur. Our established track record in the industry can provide confidence to potential customers, which may increase our success rate in securing contracts. (d) Own Fleet of Machinery and Equipment We own a diversified fleet of machinery and equipment to support our piling and foundation works, and bridge and building construction. As at the LPD, we own 26 crawler cranes, 18 bore piling hydraulic rigs, 20 excavators, 14 bore pile vibro hammers, 13 mobile cranes, 5 hydraulic breakers, 2 bore pile mechanical rigs, 1 CSM cutter machine and 1 tower crane. Our wide range of machinery and equipment enables us to adopt various construction methods, meet different customers’ requirements, as well as ensuring the timely completion of our projects as we do not need to rely on rental of third party machinery and equipment. Operating our own fleet of machinery and equipment also allows us to differentiate ourselves from other service providers that rely on rented machinery and equipment. We can expediently deploy our own machinery and equipment to various locations as reqUired In some situations, operating our own machinery and equipment enable us to be more flexible in pricing to win contracts as our operating costs would be lower compared to contractors that have to rent their machinery and equipment. For instance, when comparing to new entrants or smaller incumbent operators who do not have their own fleet of machinery and equipment, we are relatively less constrained by the availability of machinery and equipment in the rental market and/or exposed to potential fluctuation in rental rates. As such, we can be more flexible in terms of our tender pricing as well as ensuring the timely deployment of machinery and equipment to our customer’s site. As at the LPD, the NBV of our material machinery and equipment are approximately RM58.65 million. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 55 4. INFORMATION ON OUR GROUP (Cont’d) (e) Qualified and Experienced Management and Technical Team We have a management team of qualified and experienced personnel to lead and manage our business operations. Our Group Managing Director, Dato’ Ang Cheng Siong, has more than 30 years of experience in the building and construction industry, specialising in project management of civil and building works. Our Executive Director, Siew Mun Lout has more than 25 years of construction experience in bridge works, earthworks and roadworks including breakwater constructions. Our Executive Director, Dato’ Ir Dr Khoo Ping Sen, has more than 35 years of experience in the building and construction industry, specialising in bore piling and foundation works, as well as structural designs for bridges, high-rise bUildings and industrial buildings. Furthermore, our key management also include qualified technical professionals such as Civil and Structural Engineers, Geotechnical Engineers, Mechanical Engineers, Electrical Engineers, Quantity Surveyors and Project Managers. As at the LPD, we have 37 qualified Engineers on our payroll. In addition, our projects are led by experienced project managers, some of whom have more than 25 years of project management experience. Our management and technical team of qualified and experienced personnel will provide our Group with a sustainable and stable platform for continuing business growth. (f) Quality Management Systems and Safety Track Record We continuously emphasise maintaining quality standards in undertaking all of our construction projects. This is reflected by our commitment in complying to the ISO 9001 :2008 Quality Management System for the provision of civil engineering, project management and building construction services, including construction of bridges, dams and reservoirs, pipe laying, water treatment plants, flood mitigation works, oil and gas works and foundation works. Our ISO certification provides customers with assurance and confidence that our services adhere to recognised quality standards and processes. In addition, we have been recognised for our adherence to work place safety standards, as demonstrated by the following awards:­(i) 500 thousand man-hours without lost time injury -Certificate of Appreciation by Pembinaan KS Tebrau Sdn Bhd;
(ii) Good management on safety, health and environment at the workplace and contribution to the reduction of work related injury and disease -Certificate of Appreciation by MMC-Gamuda Joint Venture for the railway electrification and double tracking project -Ipoh to Padang Besar;

(iii) 2 million hours working without lost time injury -Certificate of Appreciation by MMC­Gamuda Joint Venture for the railway electrification and double tracking project ­lpoh to Padang Besar; and (iv) 2.6 million man-hours without lost time injury at Package V8 of the Klang Valley Mass Rapid Transit Sungai Buloh-Kajang Line project from 1 January 2013 to 31 December 2013 by UEM Construction Sdn Bhd. Our work place safety track record provides our customers with assurance that their projects will not be disrupted by work place accidents. More importantly, it demonstrates that we value our workers’ well-being and ensure a safe working environment. 4. INFORMATION ON OUR GROUP (Cont’d) 4.4 AWARDS, RECOGNITION AND AFFILIATIONS 4.4.1 Awards and Recognition Year  Awards and Recognition  2006  Winner of Outstanding SMEs Category'” of the Golden Bull Award 2006 Second Runner Up for implementing the “Best Environmental Management System” by Putrajaya Holdings Sdn Bhd Winner of Outstanding SMEs Category” of the Golden Bull Award 2008 Winner of Outstanding SMEs Category of the Golden Bull Award 2009 Ranked 5′” Position in the Super Golden Bull Category’·’ of the Golden Bull Award 2010 2 million hours working without lost time injury -Certificate of Appreciation by MMC-Gamuda Joint Venture for the railway electrification and double tracking project from Ipoh to Padang Besar Ranked 1″ in the Super Golden Bull Category”) of the Golden Bull Award 2011 500 thousand man-hours without lost time injury -Certificate of Appreciation by Pembinaan KS Tebrau Sdn Bhd Good management on safety, health and environment in the workplace and contribution to the reduction of work related injury and disease -Certificate of Appreciation by MMC-Gamuda Joint Venture for the railway electrification and double tracking project from Ipoh to Padang Besar OSH Management -Bore Pile Specialist Year 2013 -Certificate of Attendance by the Malaysian Occupational Safety & Health Professional’s Association (MOSHPA) IEM Outstanding Engineering Achievement Award for the design and construction of the Prai Swing Bridge for the railway electrification and double tracking project between ipoh and Padang Besar by the Institution of Engineers Malaysia 2.6 million man-hours without lost time injury at Package V8 of the Klang Valley Mass Rapid Transit Sungai Buloh-Kajang Line project from 1 January 2013 to 31 December 2013 by UEM Construction Sdn Bhd —–.J  2007  2008  2009  2010  2011  2013  2014
Notes:­(1) The Outstanding SMEs Category is for SMEs with annual sales turnover of RM5 million and above up to RM75 million in the last three (3) financial years. One hundred (100) companies are selected as winners for this category based on a number of criteria including operational and financial performances, growth plans, market presence and innovation.
(2) The Super Golden Bull Category is for SMEs with annual sales turnover of RM75 million and above up to RM150 million in the last three (3) financial years and not more than 150 full-time employees. len (10) companies are selected as the winners for this category based on a number of criteria including operational and financial performances, growth plans, market presence and innovation.

[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) 4.4.2 Enterprise and Trade Affiliations Our Company, through our subsidiary, is a member of the following association:­Company  Membership Organisation  Membership Number  Member Since (Year)  Ikhmas Jaya  Master Builders Association Malaysia  0596106  2006
4.5 OVERVIEW OF OUR GROUP’S BUSINESS ACTIVITIES (a) Principal Business Our principal business activities are in engineering and construction, where we are involved in piling and foundation works, bridge construction, building construction and other civil works.
Piling and Other CivilBridges BuildingsFoundation Works· As an engineering company we have in-house technical professionals such as Civil, Structural and Geotechnical Engineers. Our Engineers are involved in the technical design and specifications for piling and foundation works, and construction of bridges and buildings. As for other civil works, depending on the nature of the project, we may require our in-house engineering expertise. Having our own in-house engineering expertise is crucial as it enabies us to provide total solutions for piling and foundation works, as well as for construction of bridges and buildings. This is a key advantage over other construction companies that do not have in-house design and technical capabilities. Such companies have to engage third party Engineers, which can be inconvenient for the project owners or main contractors. As a construction company, we undertake all of our own construction works. We use a combination of in-house and subcontracted labour for our construction activities. We also own and operate our own fleet of machinery and equipment, thus enabling us to complete projects in a timely manner as we do not need to rely on rental of th ird party machinery and equipment. Our subsidiaries, Ikhmas Jaya and Rekavista, are registered with the CIOB as Grade 7 contractors mainly for civil engineering construction and building construction specialisations. As a Grade 7 contractor, we are able to undertake projects with unlimited tender capacity. Please refer to Sections 4.15(a) and 4.15(c) for more details on the specific categories registered by Ikhmas Jaya and Rekavista with the CIOB respectively. As at the LPO, our ongoing projects comprising piling and foundation, as well as construction of bridges and buildings amounted to a total contract sum of approximately RM659.93 million as disclosed in Sections 4.5.1.5, 4.5.2.2 and 4.5.3.3 of this Prospectus. As at the LPO, we did not have any ongoing projects for other civil works. 58 4. INFORMATION ON OUR GROUP (Cont’d) (b) Others Our other business activity include the manufacture and installation of prefabricated building system which is a complementary business activity as prefabricated building system is a building construction technology. As at the LPD, we are undertaking two (2) ongoing prefabricated building system projects with a total contract sum amounting to approximately RM60.66 million as disclosed in Section 4.5.42 of this Prospectus. (e) Business Synergies Our various business activities are highly synergistic. The core of our business is our piling and foundation works. Piling and foundation works are also required when constructing bridges and buildings. As such, these three (3) activities are highly synergistic in terms of activities as well as from our customers’ perspective. Our ability to carry out these synergistic business activities enable us to provide total solutions to our customers, where we are able to construct substructures comprising piling and foundation as well as superstructures such as bridges and bUildings. Our other business activity is in the manufacture and installation of prefabricated building system. Our prefabricated building system is a bUilding construction method that utilises prefabricated modules manufactured in our factory that are brought on-site for installation and completion. (d) Revenue Segmentation Our revenue segmentation by business activities for FYE 2014 is as follows:­
Notes:­(1) There was no revenue derived from other civil works for FYE 2014.
(2) These are for total solution and include all necessary piling and foundation work where relevant.

For FYE 2014, our Group’s total revenue amounted to approximately RM293.51 million. Piling and foundation represented the largest proportion of our Group’s total revenue at approximately 54.75% for FYE 2014. We undertook piling and foundation works for buildings and infrastructure, which accounted for approximately 37.32% and 17.43% of our Group’s total revenue for the FYE 2014 respectively. This was followed by the construction of bridges and buildings, which accounted for approximately 25.41% and 16.85% of our Group’s total revenue for the FYE 2014 respectively. The remaining of approximately 2.99% of our Group’s total revenue for FYE 2014 was derived from the manufacture and installation of prefabricated building system. 59 4. INFORMATION ON OUR GROUP (Cont’d) For FYE 2014, all of our revenue was derived from Malaysia. The breakdown of our Group’s total revenue for FYE 2014 by states was as follows:­Revenue by Location  RM’OOO  %  Kuala Lumpur  153,673  52.36  Selangor  113,966  38.83  Putrajaya  11,332  3.86  Terengganu  8,516  2.90  Penang  3,968  1.35  Pahang  1,228  0.42  Perak  471  0.16  Melaka  351  0.12  Total  293,505  100.00
For FYE 2014, the large majority of our revenue was derived from Kuala Lumpur, Selangor and Putrajaya, which accounted for a combined total of approximately 95.05% of our Group’s total revenue. The proximity of these three (3) areas enables us to deploy our professional staff, on-site workers and machinery and equipment efficiently. This also enables us to minimise the cost of transporting our machinery and equipment among the various construction sites, as well as minimise travel and related time, and costs for personnel. Our business focus in Kuala Lumpur, Selangor and Putrajaya allows us to address a relatively large market. This is supported by the fact that in 2014, the total value of construction work done in Kuaia Lumpur, Selangor, Putrajaya and Labuan amounted to RM42.48 billion, representing 41.42% of the total for Malaysia (Source: Independent Assessment of the Piling, Foundation and Construction Industry for Infrastructure and Buildings in Malaysia prepared by Vital Factor). [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
I 4. INFORMATION ON OUR GROUP (Cont’d) 4.5.1 Piling and Foundation Piling and foundation works is our key business activity which contributed approximately RM150.58 million or 54.75% of our Group’s total revenue for FYE 2014. Our piling and foundation works are focused in the following areas:­

Piling work is the process of placing piles or supporting columns below the ground to support or to serve as the foundation for above ground structures. Piles are made of materials such as wood, steel, reinforced concrete, pre-stressed concrete and composites (piles made from a combination of different materials). Most of the piles used today are made of concrete, especially those used for large structures and high-rise buildings. Piles commonly sit above rock formation or some other hard layer of natural or man-made material. The pile’s function is to support the above ground structure by transferring its load down to the rock formation or hard layer of material. Step 2: A(a) Bore Piling Step 1: A skeletal metal Step 3; vertical hole reinforcement Concrele is is bored to cage Is poured downWe specialise in bore piling. Bored piles are mainly used to the required lowered down the hale and depth the bored hole allowed to setsupport high-rise buildings and large structures. Bored piles are constructed in situ, in that it is constructed at the specific spot where the piles are required to be placed.
Bored piles are formed by boring or excavating a hole into the soil to the required depth. A reinforcement cage made of steel bars is then lowered into the hole and wet concrete is poured in and left to set.
The majority of our piling and foundation works involve bore piling. Since we undertook our first bore piling project in 2003, we have undertaken many types of piling works for a wide range of projects for buildings and infrastructure.
With our wide experience and track record, we have since established ourselves as specialists in bore piling and foundation works. In situ construction of bored pile in Kajang for Package VB of the Klang Valley Mass Rapid Transit Sungai Butah-Kajang Line project undertaken by our Group 51 4.5.1.1 Piling Works P11ing Works Ctinsttuclionbf Retaining W~l~s
4. INFORMATION ON OUR GROUP (Cont’d)
Our Group’s first bore pifing project, undertaken for Prince Court Medical Centre, a private hospital located on Ja/an Tun Razak, Kuala Lumpur  (b)  Micropiling  Micropile is a small pile generally with diameter of less than 300 mm. It is cast in situ using the same process as bored piles. Micropiles have smaller bearing capacity compared to bored piles. Micropiles are typically used to strengthen the foundation of an existing building or structure. Due to the smaller size of the machine used, micropiles are also frequently used at sites that are difficult to access.  We have also undertaken micropiling jobs as part of our full portfolio of piling solutions.  (cl  Other Piling Methods  We strive to provide total piling solutions to our customers who are main contractors and project owners. In some cases, there are projects that require other piling methods that are suitable for a particular application. We are a bore piling specialist and as such, we outsource certain other types of piling works such as driven piling and jack-in piling to third party piling contractors. This is because specialised machinery is required to perform these types of piling.  4.5.1.2  Construction of Retaining Walls  Retaining walls are structures used to retain soil, rock or other materials in a vertical condition. As such, they provide a lateral support to vertical slopes of soil that would otherwise collapse. They are used in a wide variety of civil engineering applications including embankment stabilisation and the construction of basement walls, underpasses or tunnel approaches, in-ground tanks and other buried structures.  [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
I 4. INFORMATION ON OUR GROUP (Cont’d) We mainly construct retaining walls utilising the following retaining wall systems:­Contiguous Bored Pile WaH (top view) A contiguous bored pile wall is constructed using closely-spaced SpecffiedReinforced PHe ” Spiu:lng
~
bored piles. The bored piles may be virtually touching each other or are separated by specified spacing.
A secant pile wall is constructed using intersected bored piles where primary piles (which are usually reinforced) are installed first. Once the primary piles gain sufficient strength, the secondary piles are constructed in between the primary. Secant Pile Wall (top view) A CSM waif is similar to a diaphragm wall, except that it is constructed using CSM technology. With CSM technology, a cement slurry is mixed with existing soil in situ and allowed to harden. The process utilises two sets of cutting wheels that cut the surrounding soil while simultaneously blend injected cement slurry with the existing soil. This results in the formation of hardened rectangular panels once the cement hardens. CSM Wall (cross-sectional view)  llenlonile slurry mhier;hvith  Cerfll~nt~ur-ry j~ !”un1p-e;d o-\lt\yhile the ml~lng tooll~ l”)(uiJCtl’d  ~t~~lb<lr 11 in~erted for ieinf9 rCE’ment

A soldier pile wall is constructed using vertical steel piles with horizontal lagging (timber sheeting). [THE REST OF THIS PAGE 15 INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d)
Steel Sheet Pile Wall A steel sheet pile wall is constructed by driving steel sheet piles vertically into the ground to support lateral pressure.
We are able to design and construct a wide range of retaining walls, including contiguous bored pile wall, secant pile wall, CSM wall, soldier pile wall and steel sheet pile walls. 4.5.1.3 Construction of Basements Basement construction is sometimes incorporated as part of piling and foundation works as it requires excavating soil to various depths and constructing retaining walls to prevent the surrounding soil from collapsing into the excavated area. Once the retaining walls are constructed, there are two (2) methods that can be employed to construct the basement:­(a) Bottom-up method where soil is excavated to create a cavity for the construction of the basement.
(b) Top-down method where the ground floor level is constructed first. Thereafter, soil is excavated below the ground floor level to create a cavity to construct the next level down. This process continues until it reaches the desired depth. This approach allows above ground and below ground structures to be constructed concurrently, which can greatly reduce construction time.

 

Basement works using the bottom-up method for Parcel C of the KL Eco City Project at Jalan Bangsar, Kuala Lumpur as undertaken by our Group
64 4. INFORMATION ON OUR GROUP (Cont’d) 4.5.1.4 Completed Piling and Foundation Projects For the past five (5) financial years and up to the LPD, our completed piling and foundation projects with contract sum exceeding RM1.0 million are as follows:­
1. Paradigm Mall, Kelana Piling works WCT Construction Jaya Sdn Bhd  52,800 April 2008  November 2011  2. Railway electrification Bore piling and MMC-Gamuda and double tracking -ancillary works Joint Venture Package N2  8,336 October 2008  October 2013  3. Railway electrification Bore piling and MMC-Gamuda and double tracking -ancillary works Joint Venture Package N1  6,153 May 2009  October 2013  4. JB-Nusajaya Highway -Bore piling works Section 2: CH 2400 to CH 9500 Segi Tiara Sdn Bhd  4,506 June 2009  September 2010  5. Institusi Perguruan Bore piling works Bahasa Melayu Malaysia Tidal Marine Engineering Sdn Bhd  6,337 December 2009  March 2010  6. Bandar Sri Damansara Site clearance, Biaxis (M) Sdn serviced apartment earthworks, bore Bhd piling, pile cap and ancillary works  6,261 December 2010  August 2011  7. 5000-T/D Clinker Piling works Production Cement Plant. Gopeng Tian Jin Cement Industry Engineering (M) Sdn Bhd  28,287 January 2011  December 2012  8. Railway electrification Contiguous bored MMC-Gamuda and double tracking -pile wall and Joint Venture Package N4, Sub-ancillary works package S15  5,488 February 2011  February 2012  9. Kelana Jaya Line Light Bore piling works Rail Transit Extension Package 1A and 1B Trans Resources Corporation Sdn Bhd  29,701 March 2011  April 2014  10. Putrajaya Tabung Haji Piling and Econpile (M) Sdn Office Complex (Precinct substructure works Bhd 3)  40,149 September 2011  February 2013  11. NSCI Bahau Second Bore piling works Clinker Production Line of 5000TPD SEC (Malaysia) Contracting Sdn Bhd  18,495 November 2011  September 2012  12. Damai 88, Ampang Piling and D.J. Design & substructure works Suppliers Sdn Bhd  36,066 March 2012  March 2013  13. DA:Men, USJ Bore piling works Domain Resources Bhd Sdn  19,000 May 2012  June 2013

4. INFORMATION ON OUR GROUP (Cant’d)
14.  Parcel C of the KL Eco Contiguous  bored Setia Precast Sdn  163,360  June  May  City  pile  wall, Bhd  2012  2014  earthworks,  piling  and  basement  structure works
Notes:­ (1)  Total contract value includes variations orders  (2)  Based on issuance of the CPC.  (3)  Physical construction completed but pending issuance of CPC.

Bore piling works for DAMen, a mixed development located at USJ, Selangor as undertaken by our Group 66 Piling works for Paradigm Mall, a mixed development located at Kelana Jaya, Selangor as undertaken by our Group 15. Elevated Station Package S7 at Balakong and Taman Koperasi 16. Bukit Tunku Bungalow ­Package 1 17. Elevated Station Package S3 at The Curve, One Utama and Taman Tun Dr. Ismail 18. Bukit Jalil commercial development Putrajaya (Precinct 16) Substructure works Civil Servant High-Rise Apartments 19.

9 Seputeh mixed Piling works development 20.
Bore piling works Earthworks and piling works Bore piling and pile cap works Piling and pile cap construction Apex Communications Sdn Bhd An individual UEM Construction Sdn Bhd Ho Hup Construction Company Berhad Apex Communications Sdn Bhd Gelanggang Harapan Construction Sdn Bhd 1,349 6,721 3,589 12,177 11,594 19,000 April 2013  April 2014  April 2013  March 2015  April 2013  May 2015  September 2013  September 2014  March 2014  January 2015  June 2014  December 2014
4. INFORMATION ON OUR GROUP (Cont’d)
Contiguous bored pile wall, earthwolks, piling and Bore piling walks for the Kelana Jaya Line Light Rail Transit basemel1t structure wOlks for Parcel C of the KL Eco Extensiol1 Project-Package IA and 18 as undertaken by City project as undertaken by our Group our Group 4.5.1.5 Ongoing Piling and Foundation Projects As at the LPD, our ongoing piling and foundation projects amounted to a total contract sum of approximately RM274.88 million. Details are as follows:­
1.  Parcel D of the Eco City  KL Substructure KL Eco works and Sdn Bhd elevated roadway  City  108,743  December 2012  May 2016  67%  2.  Package V8 of the Bore piling, UEM Klang Valley Mass caisson piles Construction Rapid Transit and Sdn Bhd Sungai Buloh-micropiles Kajang Line works  98,173  December 2012  June 2015  92%  3.  Duta-Ulu Kelang Bore Expressway 2 works (Section 2 -Tun Razak Link) at Mainline MC30  piling  Pembinaan Hamid Abdul Rahman Sdn Bhd  18,500  February 2014  August 2015  47%  4.  Duta-Ulu Kelang Bore Expressway 2 works (Section 1 -Sri Damansara Link) at Mainline ML1  piling Pembinaan Sahabatjaya Sdn Bhd  16,460  April 2014  August 2015  54%  5.  Sri Kuala Lumpur Substructure School (Sri KL) works  Othman Merican Educational Development Berhad  8,700  June 2014  June 2015  90%

6. 7.
8.
9.

9 Seputeh mixed Contiguous Gelanggang Harapandevelopment bored piles Ampang Line Light Bore Raii Transit -Sentul works Timur Extension project Light Rail Transit Bore Kelana Jaya Station works 2 Duta-Utu Kelang Contiguous Expressway 2 bored piles (Section 2 -Tun Razak Link) at Ramp MCTO Total Note:­Construction Sdn Bhd piling MRCB Engineering Sdn Bhd piling Trans Resources Corporation Sdn Bhd Pembinaan Hamid Abdul Rahman Sdn Bhd 1,500 April August 30% 20152015 2,727  May  July  1%  2015  2015  14,990  May  September  8%  2015  2015  5,083  May  November  1%  2015  2015
274,876 # Total contract value includes variations orders.
Bore piling, caisson pIles and m;cropJ1e works for Package VB of the Klang Valley Mass Rapid Transit Sungai Bu/oh­Kajang Line project as undertaken by our Group 4.5.2 Construction of Bridges We are involved in construction of bridges, which contributed approximately RM74.58 million or 25.41 % of our Group’s total revenue for FYE 2014. A bridge is a structure spanning an obstacle such as a body of water, valley or road for the purpose of providing a route over the obstacle. Bridges can carry a number of different transportation systems including roads, railways, canals, pipelines and footpaths. The physical structure of a bridge is divided into two parts:­4. INFORMATION ON OUR GROUP (Cont’d) (a) Superstructure consists of the bridge deck (roadway/ railway), structural members and others such as railing, lighting, footpath and drainage; and
(b) Substructure, also known as foundation, consisting of abutments or end-bents, piers or interior bents, footings and piling.

 

The materials used to build bridge structures include timber, stone, steel and more recently reinforced and pre-stressed concrete. Modern bridges are currently built using concrete, steel, fibre reinforced polymers, stainless steel or composites (combination of different types of materials). There are various designs where it serves different purposes and are applied to different situations. Design of bridges varies depending on the function of the bridge, the material used, the nature of the terrain where the bridge is constructed and anchored as well as the funds available to construct it. Generally, there are fixed and movable bridges. Fixed bridges are set into place. Movable bridges are able to change their positions to accommodate traffic below them, usually ships and barges. Movable bridges are commonly constructed on navigable waters as it is usually not feasible to construct tall bridges with high clearance for vessels to pass through. Furthermore, a movable bridge solution ensures that the bridge is not built with a steep incline that is impassable to rail and other traffic. However, the disadvantage of movable bridges is that traffic on the bridge must be halted when it is opened to allow ships to pass through. The three (3) most common movable bridge types are bascuie bridge, swing bridge and lift bridge. Since our Group commenced operations we have constructed a swing bridge.
Artist’s impression of the Pmi SWing Bridge Artist’s impression of the Prai Swing Bridge constructed by our Group (Bridge Closed) constructed by our Group (Bridge Open) 4. INFORMATION ON OUR GROUP (Cont’d) We mainly construct bridges based on the following types of bridge designs:­(i) Beam bridge as disclosed in Section 4.9.3(a) of this Prospectus;
(ii) Girder bridge as disclosed in Section 4.9.3(b) of this Prospectus;

(iii) Truss bridge as disclosed in Section 4.9.3(c) of this Prospectus; (iv) Arch bridge as disclosed in Section 4.9.3(d) of this Prospectus; and
(v) SWing bridge as disclosed in Section 4.9.3(e) of this Prospectus.

4.5.2.1 Completed Projects For the past five (5) financial years and up to the LPD, our completed bridge construction projects with contract sum exceeding RM1.0 million are detailed as follows:­
1.  JB-Nusajaya  Highway  -Infrastructure  Segi  Tiara  Sdn  48,601  July  June  Section  2:  CH  2400  to works,  ground Bhd  2009  2011  CH 9500  improvement,  bridge  structures,  drainages,  road  works,  landscape  and  associated  works  2.  Railway  electrification Design  and MMC-Gamuda  80,478  February  July  and double tracking-Prai construction  of  the Joint Venture  2010  2013  SWing Bridge  Prai  Swing  Bridge  and  associated  works
Notes:­ (1)  Total contract value includes variations orders.  (2)  Based on issuance of the CPC.  [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
4. INFORMATION ON OUR GROUP (Cont’d)  4.5.2.2 Ongoing Projects  As at the LPD, our  ongoing bridge construction  project has  a  total contract  sum of  approximately RM274.35 million. Details are as follows:­ 1. Subang-Skypark Infrastructure Konsortium  269,800  November  November  48%  Terminal Railway works  Skypark Link Sdn  2013  2015  Track ­Phase 1  Bhd -Lion Pacific  Sdn Bhd  2. Pier 488 & 489 Infrastructure MRCB Engineering  4.550  April  July  35%  for the Ampang works  Sdn Bhd  2015  2015  Line Light Rail  Transit  Total  274,350
Note:­# Total contract value includes variations orders.
4.5.3 Construction of Buildings We are involved in construction of buildings which contributed approximately RM49.47 million or 16.85% of our Group’s total revenue for FYE 2014. 4.5.3.1 Building Construction Works Construction of buildings is focused on physical buildings commonly used by people. such as residential, commercial, industrial, leisure and institutional buildings. Some of the types of buildings are as follows:­(a) Residential buildings including terraced houses, semi-detached houses, detached houses, flats, apartments and condominiums;
(b) Commercial buildings including shop units, offices and shopping complexes;
(c) Industrial buildings including factories and warehouses;
(d) Leisure buildings including hotels, motels, serviced apartments, resorts and clubs;
(e) Institutional buildings including hospitals, educational institutions and police barracks; and
(f) Public amenity buildings including railway stations, sports stadium, museums and community centres.

[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
4. INFORMATION ON OUR GROUP (Cont’d) For construction of buildings, we are typically engaged directly by the project owner as the main contractor of the project. We will mainly undertake superstructure works, while subcontracting out portions of work that are not cost effective for us to carry out in-house.
Our Group undertakes a wide range of activities for the construction of buildings, which may include, amongst others, the following:­(i) Overall project planning and management;
(ii) On-site preparation activities prior to site alteration such as surveying, clearing of vegetation, placement of stakes and flagging guides, and movements of machine and equipment;

(iii) Construction of access roads which may entail clearing and grubbing, sub-grade stabilisation, base course construction and paving; (iv) Establishment of construction staging area such as for heavy equipment to be delivered to the site, fuelled, maintained and stored in temporary facilities when they are not in use;
(v) Procurement and arrangement for material storage such as soil, rocks and other building materials that must be hauled and stored at the site;
(vi) Site preparation such as removal of surface vegetation and major root systems, and also discharge of water for concrete washout, pumping for work area isolation and washing vehicles;

(vii) Earthworks such as grading, excavating, backfilling and compaction, base course, soil stabilisation, slope protection and soil treatment; (viii) Site restoration and clean-up such as protection of bare earth by seeding, planting, mulching and fertilising; (Ix) Foundation works such as piling and caissons installation; (x) Sewage and drainage;
(xi) Water reticulation works;

(xii) Erection of buildings and structures; (xiii) Mechanical and electrical works; (xiv) Paving such as walkways, roads and parking areas, curbs, and surfacing; and (xv) Landscaping. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d)
Construction of a police training centre in Terengganu undertaken by our Group Since we commenced operations, we have undertaken the construction of the following types of buildings:­
Residential  Flats! Apartments! Condominium Serviced apartments  Commercial  Shop units  Institutional  Educational institutions Police training centre  Others  Hangar Control building
4.5.3.2 Completed Projects For the past five (5) financial years and up to the LPD, our completed projects in construction of buildings are detailed as follows:­
1.  KT Prima Business Centre, Terengganu  Building works  Ikhtisas Emas Sdn Bhd  16,526  November 2008  July 2012  2.  Police training (PULAPOL), Terengganu  centre  Design-and-build bUilding constructions  Denrich-Na!uri Rezeki JV  112,162  April 2009  October 2013  3.  Hangar on Jalan Lapangan Terbang Subang, Selangor  Building works  Airod Sdn Bhd  39,920  July 2011  March 2013  4.  Railway electrification Building works for MMC-Gamuda and double tracking-control building and Joint Venture Package N5, Sub-other ancillary Package S16 works  1,896  December 2010  November 2014
4. INFORMATION ON OUR GROUP (Cont’d) Notes:­(1) Total contract value includes variations orders.
(2) Based on issuance of the CPC.

 

As at the LPD, our ongoing construction of buildings project has contract sum of approximately RM11 0.70 million. Details are as follows:­
Note:­# Total contract value includes variations orders.
Artist’s impression of the ongoing construction of Damai 88 service apartments in Ampang, Kua/a Lumpur as undertaken by our Group 74 4. INFORMATION ON OUR GROUP (Cont’d) 4.5.4 Manufacture and Installation of Prefabricated Building System We are involved in the manufacture and installation of prefabricated building system, which contributed approximately RM8.78 million or 2.99% of our Group’s total revenue for FYE 2014.
The prefabricated building system is a construction process where a large proportion of the building is mass-produced off-site as prefabricated components, which are then installed on-site to complete the building.
Our subsidiary MM2 Building System is involved in manufacturing of prefabricated building system and our subsidiary MM2 Builders is involved in installing the prefabricated building system. Our prefabricated building system manufacturing plant is located in Nilai.
The technology that is being used by us to manufacture the prefabricated building system is as detailed in Section 4.9.4 of this Prospectus.

Wall panel Stairs panel [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) Our prefabricated building system has the following characteristics and advantages over conventional construction methods:­(a)  Easy to handle as the panels are relatively light;  (b)  Shorter installation time;  (c)  Versatility in design as the foam panels can be cut into the desired shape easily;  (d)  Able to support heavy loads;  (e)  Strong resistance to fire;  (f)  Earthquake and blast resistance;  (g)  Provides heat insulation, which reduces energy consumption for heating and cooling;  and
(h) Provides good sound insulation
Spot welding machine to fabricate various types ofpanels [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) 4.5.4.1 Completed Projects Since the commencement of our prefabricated building system operations in 2012, our completed projects for the manufacture and installation of prefabricated bUilding system are detailed as follows:­
1.  Supplies of Supplies prefabricated building prefabricaled system to Jasin, Melaka building system  of Arah Semangat Sdn Bhd  2,530  September 2012  Not applicable ­supply only  2.  Tzu Chi Kepong  Building,  Manufacture installation prefabricated building system  and of  Putra Perdana Construction Sdn Bhd  29  October 2013  Not applicable ­supply only  3.  Office block at Seksyen Manufacture 67, Jalan Inai, Kuala installation Lumpur prefabricated building system  and of  Pesona Metro Sdn Bhd  227 December 2013  April 2014  4.  International University Manufacture College of Automotive at installation Pahang prefabricated building system  and of  Hicom Sdn Bhd  Builders  1,394  March 2014  May 2015  6. 5.  Manufacture installation prefabricated bUilding system Factory, warehouse and Manufacture office buildin9 at supply Kawasan Perindustrian prefabricated Kundang, Gombak building system Budget hotel at PJ 21 Commercial Centre  Heritageand Original of Sdn Bhd and Unjur Metro Sdn of Bhd  77 537  April 2014 June I 2014  December 2014 Not applicable -, supply only  7. 100 units of single Manufacture storey terrace house supply under the Perumahan prefabricated Generasi Baharu Felda building system U Bukit Tajau, paha~ ‘—-­ and Kasyaf of Bhd —–‘  Bina  Sdn —‘-­ June 2014 942 ..J-__~  Not applicable ­supply only ~
Notes:­ (1)  Total contract value includes variations orders.  (2)  Based on issuance of the CPC.  (3)  Physical construction completed but pending issuance of CPC  [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK)
4. INFORMATION ON OUR GROUP (Cont’d) 4.5.4.2 Ongoing Projects As at the LPD, our ongoing prefabricated building system projects have a total contract sum of approximately RM60.66 million. Details are as follows:­
1. Pulau Redang 5­storey fiat 2. Pulau Perhentian 5­storey fiat Total Design, manufacture and installation of prefabricated building system Design, manufacture and installation of prefabricated building system Tunjang Jitu Sdn Bhd Tunjang Jitu Sdn Bhd 27,975 32,686 60,661 April 2012 April 2012 September 78% 2015 November 25% 2015 Note:­# Total contract value includes variations orders.
Ongoing construction of 5-starey flats in Putau Redang, Terengganu us;ng our prefabdcafed building system [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) 4.6 OUR BUSINESS AND OPERATION PROCESSES The process flow for our bore piling operation is depicted in the diagram below:­Check Concrete Before it is Set
Check Quality and Integrity of Bored Pile ~ –
Geotechnical Study
,j, Oesignand Specificiltionof Bored Pile System
,j, Preparation of Working Platform
,j, MobiliSation .~ Sef1Up of Plant-Machinery and Equipment
J. InslaJiatiOriof Temporary Steel Casing

Boring of Soil to Form Borehole •
lCleaning the BaSe onhe Pile •
inslaJiation.ofSteel Reinforcement Cage•juring.ofooncrele into Borehole to Form Bored Pile Extraction of Temporary Steel Casing

Bored Pile Completed when Concrete is Set
The first step in bore piling is to undertake a geotechnical study to determine the characteristics of the soil, bedrock and underground water table, and of surrounding environment and topology in terms of overburden, slope and water runoff. 4. INFORMATION ON OUR GROUP (Cont’d) This will be followed by the design and technical specification for each bored pile as well as the entire system of piles for supporting the superstructure. The design and technical specification will take into consideration the findings from the geotechnical study. Factors that affect the environment such as noise and vibration, and preventing effects on adjoining structures during pile construction are also taken into consideration. We prepare the working platform before actual piling work commences. This is done to ensure that the site can handle our machinery and equipment, and has a safe, efficient and effective working environment. The bore piling process starts with mobilisation and setting up of our bentonite mixing plant, machinery and equipment. The location selected must be suitable and properly prepared. The site should be accessible and clear of obstructions and other hazards. The load bearing capacity of the ground should be sufficient to support the weight of the plant, machinery, equipment and delivery trucks. If the site is on a slope, it should be within the operating parameters of the equipment. The first step in creating the bore pile is the installation of a cylindrical steel casing into the ground. This steel casing serves as a temporary formwork to hold the concrete when the concrete is poured into the bored hole. A service crane or vibratory hammer is used to drive the steel casing into the ground to the required depth until it reaches the support of the hard rock. The hard rock supports the steel casing during the drilling process and supports the bored pile when it is completed. About one meter of the steel casing is left protruding from the ground. A drilling tool is then used to form the Installation of Temporary Casing borehole. The drilling tool comprises an auger bit at the end of the drill shaft to cut into the soil, while the screw-like shaft is used to remove the soil within the casing. The soil surrounding the outside of the borehole is prevented from collapsing into the borehole by the previously installed steel casing. If the casing is not long enough to reach the required depth in the ground, bentonite slurry will be used to support the soil below the casing. Once it is drilled to the specified depth, the bottom of the shaft is cleaned using a drilling bucket.

Boring of soil to fonm a borehole [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] I 4. INFORMATION ON OUR GROUP (Cont’d)
Once the borehole is ready, a reinforcement cage made of steel rods fitted with a spacer is placed down the borehole using a crane. The spacer is wired to the cage to provide lateral support to the reinforcement cage. Subsequently, concrete with the specified composition is poured into the borehole under high pressure to form the bored pile. Several checks and inspections, including fluid density and concrete slump tests are carried out during the concreting process. The temporary steel casing is removed using a vibrating hammer once the concrete has set. Installation of steel re;nforcement cage

Reinforcement Cage In addition, we also carry out proof drilling through core drilling to check the quality of the concrete, contact between the rock and concrete, as well as the quality of the rock beneath the lowest point of the bored pile (also known as the “toe”). We carry out tests to check the integrity of the bored pile shaft, including high strain dynamic load test, pile integrity test and sonic logging test. These tests are commonly used to detect concrete defects that may affect the overall performance of the bored pile, such as honey combing, cold joints and cracks. All of these tests are undertaken by independent testing parties together with our in-house technical personnel. 4. INFORMATION ON OUR GROUP (Cont’d) 4.7 QUALITY ASSURANCE MANAGEMENT We place strong emphasis on the quality of Our work and services, and safety of our workers. We adopt the following approaches to ensure certain quality and safety standards are maintained and adhered to:­(a) We have in-house Engineers to ensure product design and construction quality.
(b) We have built quality checks and procedures into all our work processes, including inspection of input materials, machinery and equipment, site preparation, process of construction and testing of finished work and products.
(c) We have instituted workplace safety procedures covering worksite procedures, machine and equipment operation, and workers’ safety practices.
(d) We have a team of professionals comprising Engineers, Surveyors, Site Managers and Supervisors to implement our quality and safety standards and procedures.

As part of our commitment to product quality, we have obtained the relevant quality accreditation as follows:-
The quality accreditations indicate that our Group adopts certain processes and procedures to ensure that quality standards are maintained internally. This provides customers with the comfort and assurance of the quality of our Group’s construction work. As at the LPD, we have 37 Engineers and 19 Quantity Surveyors who are jointly involved in our in-house quality control throughout the construction process. Six (6) of these Engineers being primarily responsible for the proper implementation of our Group’s quality assurance! control policy. We also have 21 Health, Safety and Environment personnel responsible for minimising occupational hazards, maintaining safety compliance of project sites, as well as preventing damage to the surrounding environment. Our emphasis on work place and work practices safety has been effective and recognised, as indicated by the awards we received from our customers as disclosed in Section 4.3.3(1) of this Prospectus. 4.8 R&D As we are mainly engaged in piling and foundation works, and construction of bridges and buildings, R&D is not relevant to our business. As a result, we do not carry out any specific R&D activities and therefore do not formulate any R&D policy for our business operations. Furthermore, we did not recognise any R&D expenditure for FYE 2011 10 FYE 2014. 4. INFORMATION ON OUR GROUP (Cant’d) 4.9 TECHNOLOGY USED We mainly utilise the following technologies in our core business operations:­(a) Piling;
(b) Basement construction;
(c) Bridge construction; and
(d) Prefabricated building system technology.

4.9.1 Piling We employ a number of technologies for our piling including the following:­(a) Rotary Rotary bored piling method is where the piling rig is equipped with a bar that moves vertically. A short length of auger or a digging bucket is held at the end of bar. The auger or bucket excavates the ground when it is rotated. The bar is then retracted, the rig is slewed and then the excavated soil is ejected by spinning the bar and tool rapidly. This action is repeated until the soil is excavated to the required depth. Usually, temporary casing or stabilising mud such as bentonite suspension is used to support the excavate area and to prevent it from collapsing. The casing or slurry is usually extracted as or immediately after the bore is filled with concrete. (b) Continuous Flight Auger In the continuous flight auger piling method, a pile is formed by drilling into the ground with a full length auger. In this method, the auger stays in the bored hole until the final depth. When the drilling is complete, concrete is injected through the hollow stem of the auger under pressure and the pressure is maintained as the auger is extracted. A steel reinforcing cage is then inserted into the concrete before it hardens.
(c) Micropiling Micropile is a small pile generally with diameter of less than 300 mm. It is cast in situ using the same process as bored piles. Micropiles have smaller bearing capacity compared to bored piles. Micropiles are typically used to strengthen the foundation of an existing building or structure. Due to the smaller size of the machine used, micropiles are also frequently used at sites that are difficult to access. (d) CSM CSM technology is a technique which injects and blends binding agents (generally cement) with existing soil in situ to produce a final hardened product. Once hardened, these mixed soils are capable of retaining soiis and water for cut-off walls, earth retaining walls and for soil improvement. One of the main advantages of CSM technology is that no vibrations are induced during construction, which is an important consideration in urban areas. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) 4.9.2  Basement  We make use of the following basement construction technologies:­ (a)  Top-Down  In the top-down method, the ground floor level is constructed first Once the ground floor is complete, soil is excavated below the ground floor level to create a cavity to construct the next level down. This process continues until it reaches the desired depth.  (b)  Bottom-Up  In the bottom-up method where soil is excavated to create a cavity for the construction of the basement.  4.9.3  Bridge Construction  We employ several types of bridge design technology including the following:­ (a)  Beam Bridge
A beam bridge utilises the simplest bridge span structural form. Each bridge span has a support on each end. Other supports such as piers may also hold up the bridge between the two ends.

 

Beam b6dge in Putrajaya as constnIcfed by our Group (b) Girder Bridge Girder bridge comprises girders placed on bridge abutments and piers. A bridge deck is built on top of the girders to carry traffic. Girder bridges are currently the most commonly built and utilised type of bridge in the world, where it is commonly used in constructing highway flyovers and modern elevated structures for light rail transport. The two (2) most common types of girder bridges are I-beam girder bridge and box-girder bridge. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d)
Chenor Bridge using box-girder design as constructed by our Group (c) Truss Bridge Truss bridge is a bridge that uses truss elements connected as triangular units with joints. They are generally more economical than beam bridges. (d) Arch Bridge Arch bridge is an arched structure built beneath the bridge’s roadway to provide support.

 

Steet arch bridge in Cyberjaya as constructed by our Group 4. INFORMATION ON OUR GROUP (Cant’d) (e) Swing Bridge Swing bridge rotates about a centre pier to create an opening. One of the advantages of a swing bridge is that it has the lowest power requirement among all movable bridges.
Swing bridge design used for the construction of railway track in Prai, Penang as undertaken by our Group In addition, we also employ a number of bridge construction technologies including the following:­(i) Form Traveller System The form traveller system is a movable formwork system for cast in situ construction that can be used tor free cantilever bridge segmental construction of post-tensioned box girder. The bridge span is constructed on opposite directions simultaneously and it is facilitated by using the top of a pier as the initial anchor point with two separate form travellers. The bridge construction is conducted by moving each pair of form travellers further away from their respective pier in tandem so the weight of each cantilever is always balanced. Form travellers are preferred for constructing bridge spans over deep valleys, waterways and roads where access from the ground is a challenge and the number of piers is limited.
Construction of Chenor Bridge using the Form Travelier System as undertaken by our Group (ii) Self-climbing Formwork System Self-climbing formwork system operates in a similar manner to form travellers. However, it is used to vertically build piers, as opposed to laterally bUilding bridge decks. Self-ciimbing formwork is installed on site and can be used to construct the entire height of a new cast in­place concrete pier. This formwork system elevates itself periodically with a hydraulic system. The system is static when the pouring of concrete is in process. 4. INFORMATION ON OUR GROUP (Cont’d) (iii) Slipform System Slipform system is a formwork system similar to self-climbing formwork system, except that the formwork is moving slowly upwards at all times as concrete is being poured into the formwork. As new concrete is being poured into the formwork, the concrete that was previously poured starts to harden. As the formwork moves upwards it creates a space in the top for more concrete to be poured in and at the same time leaving the harden concrete at the bottom. This process is repeated slowly and continuously such that a continuous concrete structure is created. Slipforming enables continuous and non-interrupted cast in-place concrete structures which have superior performance characteristics. (iv) Launching Gantry Launching gantry is a bridge formwork system that performs sequential construction (on rollers or track) of a continuous deck at one end of the bridge. As each new section is added, the whole deck is pushed or pulled out (usually over multiple spans). This is commonly used for the construction of elevated highways and railway lines. 4.9.4 Prefabricated Building System Technology Prefabricated bUilding system technology is a construction process where a large proportion of a building is mass-produced off-site as prefabricated components. These components are installed on-site to complete the building. Our prefabricated building system utilises the proprietary “M2 EMMEDUE® Advanced Building System” machinery and equipment from our supplier, EMMEDUE® S.pA in Italy. Our supplier is a specialist in manufacturing and marketing seismic resistant and thermal­insulation building systems. The basic element of the prefabricated building system is a modular panel. Each panel consists of two (2) welded galvanised steel meshes that are joined by connectors. A layer of appropriately shaped foam polystyrene (expanded polystyrene) is sandwiched in the middle of the two steel meshes. The prefabricated building system is manufactured at our factory in accordance to technical specifications. Completed panels are transported to the construction site for installation. Once the panels are installed, the building or structure is finished in accordance to the customer’s requirements. Finishing commonly involves rendering the outer surfaces of the building or structure with cement. As our prefabricated building system is modular, we have specific design for the following types of panels:­(a) Single panel;
(b) Double panel;
(c) Stair panel;
(d) Landing panel;
(e) Floor panel; and
(f) Curved panel.

4. INFORMATION ON OUR GROUP (Cont’d)’——————­We can use various combinations of our modular panels to construct most, if not all, parts of a bUilding or structure (except the roof).
Single Panel Double Panel Floor Panel
Slair Panel Landing Panel Curved Panel The advantages of prefabricated building system over conventional building methods include the following:­(i)  less labour is required to construct buildings or structures, which reduces labour costs;  (ii)  reduction in volume of building materials used, which would minimise wastage;  (iii)  reduced environmental impact and better construction site cleanliness;  (iv)  better quality control by using standardised prefabricated building system components;  (v)  promotes a safer and more organised construction site; and  (vi)  shorter construction time period as the major components are prefabricated.
[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) 4.10  RAW MATERIALS AND MAJOR SUPPLIERS  4.10.1  Types, Sources and Availability of Raw Materials/Input  The following are the major types of raw materials and services for our business operations for FYE 2014:­

 

Notes:­(1) Include steel bar, wire mesh, steel products and pipes.
(2) Include plywood and timber.

(3) Include bricks, sand, crusher run, quarry dust, hardware, accessories and others. (4) Include subcontractors that provide both labour and materials.
(5) The above purchases exclude electricity and other utilities.
(6) Insignificant.

For the FYE 2014, purchases of materials, consumables and services for our business operations amounted to a total of approximately RM198.17 million We sourced approximately 100.00% of our Group’s total purchases of materials, consumables and services from local suppliers. 89 4. INFORMATION ON OUR GROUP (Cont’d) For FYE 2014, purchases of materials and consumables accounted for approximately RM 104.44 million or about 52.70% of our Group’s total purchases of materials, consumables and services, all of which were sourced locally. Our purchases of materials and consumables include building and construction materials, consumables and materials to manufacture prefabricated bUilding system. For FYE 2014, purchases of building and construction materials accounted for approximately RM98.13 million or 49.52% of our Group’s total purchases of materials, consumables and services. The building and construction materials that we purchased during the FYE 2014 included steel and other metal materials, concrete and cement, wood materials, scaffolding and beams, piling tools and other building and construction materials. For FYE 2014, diesel and materials to manufacture prefabricated building system accounted for approximately RM5.84 million or 2.94% and RM0.47 million or 0.24% of our Group’s total purchases of materials, consumables and services respectively. For FYE 2014, purchases of services accounted for approximately RM93.73 million or 47.30% of our Group’s total purchases of materials, consumables and services. Approximately 99.99% of these services were sourced locally while the remaining of approximately 0.01 % was from an overseas service provider. Our purchase of services includes subcontracted works, rental of machinery and equipment, and repair and maintenance services. For FYE 2014, subcontracted works accounted for approximately RM79.92 million or 40.33% of our Group’s total purchases of materials, consumables and services. Rental of machinery and equipment accounted for approximately RM13.22 million or 6.67% of our Group’s total purchases of materials, consumables and services while repair and maintenance services accounted for approximately RMO.59 million or 0.30%. As at the LPO, we have not experienced any shortages in the supply of materials, consumables and services mentioned above. 4.10,2 Major Suppliers The table below lists the suppliers of our Group that accounted for 10.0% or more of our Group’s total purchases for the last four (4) FYE 2011 to FYE 2014:­
1.  Syarikat Logam Unitrade 3dn Bhd  3  4,239  326  3,627  2.20  20,504  10.35  2.  Setia Precast 3dn Bhd  3  9,660  7.44  39,789  2413  13,778  6.95  Total Grdup  purc~ase~    100,00
4. INFORMATION ON OUR GROUP (Cont’d) Our Group is dependent on Syarikat Logam Unitrade Sdn Bhd as it accounted for approximately 10.35% of our Group’s total purchases of materials, consumables and services for FYE 2014. Our Group is also dependent on Setia Precast Sdn Bhd as it accounted for approximately 24.13% of our Group’s total purchases of materiais, consumables and services for FYE 2013. The following factors help to mitigate our dependency on our major suppliers:­(a) Syarikat Logam Unitrade Sdn Bhd
(i) We have been dealing with Syarikat Logam Unitrade Sdn Bhd for approximately three (3) years for the purchase of steel bar, pipe and other accessories. This indicates a stable and continuing business relationship with Syarikat Logam Unitrade Sdn Bhd; and
(i) There are many other suppliers of steel bar, pipe and other accessories in the market. We can easily source steel bar, pipe and other accessories from other suppliers should the need arises.

 

(b) Setia Precast Sdn Bhd
(i) As part of the arrangements set out in our contract with Setia Precast Sdn Bhd for the Parcel C of the KL Eco City project, Setia Precast Sdn Bhd is our supplier for the ready mixed concrete and steel bars that we use in the project. Our dependency on Setia Precast Sdn Bhd was reduced to approximately 6.95% of our Group’s total purchases of materials, consumables and services for FYE 2014. Since the physical completion of the Parcel C of the KL Eco City project in May 2014, we have not purchased materials, consumables and services from Setia Precast Sdn Bhd for use in any of our other projects; and
(ii) There are many other suppliers of ready mixed concrete and steel bars in the market. We can easily source ready mixed concrete and steel bars from these other suppliers.

 

4.11 MARKETING ACTIVITIES AND MAJOR CUSTOMERS 4.11.1 Marketing Strategies We utilise the following marketing strategies and positioning to sustain and expand our business:­(a) Position ourselves as specialists in bore piling providing total solutions for foundation works and SUbstructures.
(b) Provide total solutions supported by the following:­
(i) our in-house technical Engineers and profeSSionals capable of undertaking design and construction works for piling and foundation, and construction of bridges and bUildings;
(ii) in-house fleet of machinery and eqUipment for timely and ease of deployment; and

 

(iii) synergistic capabilities and experience in designing and constructing substructures and superstructures. 4. INFORMATION ON OUR GROUP (Cont’d) (c) Address business opportunities from both the public and private sectors by maintain our registrations with CIOB and other relevant regulatory bodies.
(d) Target large projects by maintaining our Grade 7 CIOB registration, which allows us to bid for any contracts without restrictions. Since commencement of our business and as at the LPO, we have been awarded 13 projects with contract sum exceeding RM50 million per project.
(e) While we will continue emphasise on winning jobs in Kuala Lumpur, Selangor and Putrajaya, we will also market our services to customers in other states and territories in Malaysia.
(f) Continuously improve the quality of our work and services.
(g) Maintain a high standard of work place safety and minimising adverse impact on the environment.

Our marketing strategies and positioning are aimed at:­(i) providing sustainable growth for our business;
(ii) attaining and maximising economies of scale by securing large projects, which will also help to maximise the utilisation of our fleet of machinery and equipment; and

(iii) enlarging our addressable market by catering to both the private and public sectors, as well as foray into peninsular Malaysia.  other  states  and  territories  outside  the  central  region  of  4.11.2  Distribution Channel Strategy  We adopt a direct and indirect distribution channel strategservices as depicted below:­ y to  ma rket  our  products and  Our Distribution Channel Strategy

Project Owners
Main Contractors
Our portfolio of services requires us to bid for jobs directly from project owners as well as indirectly through main contractors. Piling and foundation works are commonly integral parts of a total project package that is awarded to a main contractor. As such, we bid for piling and foundation works contracts from the main contractors. However, in some cases, we bid for piling and foundation work contracts directly with the project owners but work under a main contractor. We commonly bid for construction of bUilding contracts directly from the project owners. In such a situation, we are the main contractor for the project. We may subcontract out some portions of the work to external suppliers. 4. INFORMATION ON OUR GROUP (Cont’d) Contracts for the construction of bridges are similar tD cDntracts for piling and fDundation wDrks, where the total package is awarded to a main cDntractor. As such, we bid for work frDm the main cDntractors. However, in some cases, we bid directly with the project owner but wDrk under a main cDntractor. For the FYE 2014, revenue derived thrDugh contracts secured from main cDntractors through the indirect distribution represented approximately 70.06% of our Group’s tDtal revenue. Revenue derived thrDugh contracts secured frDm project owners through the direct distribution channel accDunted fDr the remaining of approximately 29.94% Df Dur Group’s tDtal revenue. 4.11.3 Major Customers For the FYE 2014, our customer base comprises the following types in various states and territDries in Malaysia:­(a) Types
(i) Public and private sectDr main contractDrs; and
(ii) Public and private sector project owners.

 

(b) States and Territories
(i) Kuala Lumpur;
(ii) SelangDr;

 

(iii) PutraJaya; (iv) Terengganu;
(v) Penang;
(VI) Pahang;

(vii) Perak; and (viii) Melaka Our ability tD service the full spectrum Df bDth public and private sectDrs custDmers across a number Df states and territDries provide growth DppDrtunities fDr our business DperatiDns. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) The table below lists the customers representing 10.0% or more of our Group’s total revenue over any of the lastfour (4) FYE 2011, FYE 2012,FYE 2013 and FYE 2014:-
1. Sdn Bhd -Lion Pacific Sdn Bhd D.J. Design & 2. Suppliers Sdn 3 Bhd UEM 3. Construction 3 Sdn Bhd Setia Precast4. 3Sdn Bhd MMC-Gamuda5. 6JOint Venture Econpile (M)6. 4Sdn Bhd Denrich Naluri7. 6Rezeki JV 8 Airod Sdn Bhd 4 Tianjin Cement Industry9. 4(Malaysia) Sdn ~Bhd Total revenue of our Group Notes:­70,963  27,775  13.69  15,683  7.64  47,777  33,088  16.11  35,305  43,193 3,253 25,579 9,598 29,286  29.71 2.24 17.59 6.60 20.14  45,210 19,928 29,535 1,031 23,058 (a) (6)  22.29 9.82 14.56 0.51 11.37 1’1  85,304 19,547 5,276 I” (291) 7,265  4154 9.52 2.57 I” (0.14) 3.54  31,245 4,439 2,086 1,341  145,403  100.00  202,868  100,00  205,335  100,00  293,505

(a) Adjustments to previous year.
(b) Insignificant proportion.

For FYE 2011 to FYE 2014 collectively we have nine (9) customers that contributed 10.0% or more of our Group’s total revenue. For FYE 2014, we were reliant on four (4) customers, namely Konsortium Skypark Link Sdn Bhd -Lion Pacific Sdn Bhd, D.J. Design & Supplies Sdn Bhd, UEM Construction Sdn Bhd and Setia Precast Sdn Bhd and as they contributed approximately 24.18%, 16.28%, 12.03% and 10.65% respectively of our Group’s total revenue. The following factors mitigate against our Group’s dependency on these customers:­(i) Our business is mainly project-based. As such, some customers may account for 10.0% or more of our Group’s total revenue in some years as a project is being implemented. Revenue contribution from these customers will then typically be less than 10.0% of our Group’s total revenue during the financial years where no projects are being implemented for the said customers. 94 4. INFORMATION ON OUR GROUP (Cont’d) (ii) Konsortium Skypark Link Sdn Bhd -Lion Pacific Sdn Bhd, who accounted for approximately 24.18% of our Group’s total revenue for FYE 2014 is the main contractor for the Subang-Skypark Terminal Railway Track -Phase 1 project. This RM270 million project is expected to be completed in November 2015. Hence, our Group expects our dependency on Konsortium Skypark Link Sdn Bhd -Lion Pacific Sdn Bhd to be reduced from FYE 2016 onwards. (iii) D.J. Design & Supplies Sdn Bhd, who accounted for approximately 16.28% of our Group’s total revenue for FYE 2014, is the project owner for the Damai 88, Ampang project, where we undertook the project’s piling and substructure works as well as building construction works. We expect our dependency on D.J. Design & Supplies Sdn Bhd to be reduced from FYE 2016 onwards as the project is expected to be completed in August 2015. (iv) UEM Construction Sdn Bhd, who accounted for approximately 16.11 % of our Group’s total revenue for FYE 2013, is the main contractor for Package V8 of the Klang Valley Mass Rapid Transit Sungai Buloh-Kajang Line project. For the FYE 2014, the proportion of revenue contribution from UEM Construction Sdn Bhd to our Group’s total revenue was lower as our Group’s total revenue grew in the FYE 2014. As a result, our dependency on UEM Construction Sdn Bhd based on the percentage of revenue contribution was reduced to approximately 12.03% for the FYE 2014.
(v) Setia Precast Sdn Bhd, who accounted for approximately 41.54% of our Group’s total revenue for FYE 2013, is the main contractor for Parcel C of the KL Eco City project. As the project was completed in May 2014, our dependency on Setia Precast Sdn Bhd based on the percentage of revenue contribution, was reduced to approximately 10.65% for the FYE 2014.
(vi) We have reduced our dependency on the other customers that accounted for more than 100% or more of our Group’s total revenue for FYE 2011 and FYE 2012. These customers accounted for less than 100% of our Group’s total revenue for the FYE 2013 and FYE 2014

(vii) In addition, we believe that our established track record as well as our continuing business relationship with our major customers will provide the basis for us to secure more contracts from these major customers for our continuing business growth 4.12 SEASONALITY We do not experience any material seasonality in our business as our business operations are mainly based on contractual arrangements. 4.13 BRANDS NAMES, TRADE MARKS, LICENCE AGREEMENTS AND TECHNICAL AGREEMENTS As at the LPD, our Group does not have any brand name, patent, trademark, technical assistance agreement, franchise or any other intellectual property right. As at the LPD, there are no other patents or licenses, industrial, commercial or financial contracts (including informal arrangements or understandings) or new manufacturing processes, which have been entered into by us that we are highly dependent on or that are material to our business and/or profitability. I I4. INFORMATION ON OUR GROUP (Cont’d) 4.14  OUR GROUP’S PROPERTY, PLANT AND EQUIPMENT  4.14.1  Location of Principal Place of Business, Marketing and Production Facilities  As at the LPD, our Group’s principal place of business, marketing and production facilities are as follows:­
Period of Approximate Ownerl Registered Tenancyl Land Area! Landlordl BUilt-Up Area No. Tenant Description! Rental Per Existing Use Address Month (sqf) 6,039/1. Ikhmas Jaya Two (2) intermediate and one Nos. 35, 37 & 39 (1) corner adjoining units of 3-Jalan PJU 1Af41B 20,351 storey terrace shopl office Pusat Dagangan NZX with basement car park/ Ara Jaya, PJU 1A Ikhmas Group’s head office 47301 Petaling Jaya Sefangor Darul Ehsan 2. “””. “Tan ——Say A.·.-.sec·on’a—-iloor unit of an L:2:~fBiock”L-‘-‘-_–. –‘0’1″:1’1″,”26’14—to· -Noi”-appfi’ca”fjTe”l Tuan & Sons intermediate 3-storey terrace No 2, Jalan PJU1A141B 31.10.2015/ 1,905 Realty Sdn shop/office! Pusat Dagangan NZX RM1, 100 Bhd! Ikhmas Site office Ara Jaya, PJU 1A Jaya 47301 Petaling Jaya Selangor Darul Ehsan 1·3″:.. ··· Acc’Diade A·fi·rst'”···f’j”o’o·i·”····urlii·’···’··’·of·· .. ·an·lKfo.4’S”–‘1″ ,.. “..,–“.”. 6f·6i’:·2″6’1·’4..··..·to· Not appIicablei Technology intermediate 3-storey terrace Jafan PJU1A141B 30.06.20151 1,800 Sdn Bhdl shop/officel Pusat Dagangan NZX RM1,200 with Ikhmas Jaya Site office Ara Jaya, PJU 1A an extension 47301 Petaling Jaya up to Selangor Darul Ehsan 07.07.2015 (i)
4 Wong Kim An”””j’nternlecliate”u’nii”””of 1·v.;~ ‘L-ot’44;,qPT 3422)’ 6116.2614 to . 3:000i Lanl storey terrace factoryl Jalan Nilai 7/17 30.092016/ 2,850 MM2 MM2 Building System’s office Kawasan Perindustrian Nilai 7 RM1,500 Building cum warehouse(I,) 71800 Nilai System Negeri Sembilan ……………. 01,10,2014 to
········:j,666i5 Choong —An “inie’rm’e'(j'”i~lte’ unit of 1’h-Lot”44’s”(PT’34’23’j’ Yoon Keong storey terrace factoryl Jalan Nilai 7/17 30.09.2016/
2,850 and Chen MM2 Building System’s office Kawasan Perindustrian Nilai 7 RM1,500 Fern Fang! cum warehouse (Ii) 71800 Nilai MM2 Negeri Sembilan Building System Notes:­(i) Our Group intends to further extend our tenancy for another one (1) year up to 30 June 2016 and is in the midst of signing the agreement with the landlord.
(ii) Our Group intends to relocate our prefabricated building system manufacturing operations at the rented factory to our own manufacturing facility to be located at Lot 299, Jalan Segenting, 42500 Teluk Panglima Garang, Selangor Darul Ehsan as disclosed in item 4 of Section 4.14.2 of this Prospectus by the third quarter of 2016. Please refer to Section 4.18.2 of this Prospectus for further details.

[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] I Company No: 1072872-0 I 4. INFORMATION ON OUR GROUP (Cont’d) 4.14.2 Land and buildings As at the LPO, our Group owned the following properties:­
1. Ilkhmas  No.  35, Jalan  PJU  1AJ41B,  Pusat  7 yearsl  None/  11712.20071  1,916,8761  1,896,325  2,580,0001  663,124!  Notes (1)  Jaya  Dagangan NZX,  Ara  Jaya,  PJU  1A,  Freehold!  Charged  to  Hong  06.03.2014  and (5)  47301  Petaling Jaya, Selangor DaTul  2,439/  Leong  Bank  and  Ehsanl  8,475  Berhad  01,0620151  Cost Method  HSD  233616,  Lot  No.  PT  33386,  and  Mukim  Damansara,  District  of  Investment  Petaling and State of Selangor DaTul  Method  Ehsan  2. Tikhmas  !,j”o.····jf..····Xala·;;”·····p’j”iT 1-A14″fB’: “””p’usat”  Two  (2)  7 years!  –‘-~io-ne7  ”  17.12.200711,511;6661-1,495,6131 ·,······~~~5~~~1~1·’·’·’···,4:lB,466r’N~~~5(~~f  Jaya  Dagangan NZX,  Ara  Jaya,  PJU  1A,  intermediate  and  Freehold!  Caveat  lodged  in  47301  Petaling Jaya, Selangor DaTul  one  (1)  corner  1,800/  favour  of  Hong  and  Ehsan/  adjoining  units  of  5,938  Leong  Bank  0106.20151  3~storey  terrace  Berhad  Cost Method  HSD  233615,  Lot  No.  PT  33385,  shop!  office  with  and  Mukim  Damansara,  District  of  basement  car  Charged  to  Hong  Investment  Petaling and State of Selangor DaTul  park!  Leong  Bank  Method  Ehsan  Our Group’s head  Berhad  3. IIkhmas  No.  39, JalanFJ”}l.f 1A/41B,  Pusat  office  7 years!  FiC;n-e/O .-“-._._._._._._._._”_._.,.­ 17.122067r’1:5’1T~6o6T1.4ii5,67’lI’  1,950,0001  ,. -43If4oal’i’iotes(i)”  Jaya  Dagangan NZX,  Ara  Jaya,  PJU  1A,  Freehold!  Caveat  lodged  in  06.03.2014  and (5)  47301  Petaling Jaya, Selangor DaTul  1,800/  favour  of  OCBC  and  Ehsanl  5,938  Bank  (Malaysia)  01.06.2015/  Berhad  Cost Method  HSD  233614,  Lot  No.  PT  33384,  and  Mukim  Damansara,  District  of  Charged  to  OCBC  Investment  Petaling and State of Selangor DaTul  Bank  (Malaysia)  Method  Ehsan  Berhad  Sub-Total  I 4,940,0761  4.886,471  6,480.000  1,539,924
97
I Company No: 1072872-D I 4. INFORMATION ON OUR GROUP (Cont’d)
4.  Ilkhmas  Lot  299,  Jalan  Segenting,  42500 IA parcel of agriculture land I Not applicablel  None!  Noli  3,312,375  3,411,970  3,500,000/  187,625  Jaya  Teluk  Panglima  Garang,  Selangor zoned for industrial use!  Freehold!  Charged  twice  to  applicable  03032014  Darul Ehsan/  Vacant  115,432/  United  Overseas  and  Not applicable  Bank  (Malaysia)  0106.2015/  Geran Mukim 1465, Lot 299, Locality  Berhad  Comparison  of Batu 12, Jalan Telok-Jugra, Mukim  Method  of Teluk Pang lima Garang, District of  Kuala Langat and State of Selangor  Darul Ehsan  5.  likhmas Jaya  Lot-‘4’967:”‘”JaTa’;;-‘-‘Segentfng~”-“‘Batu’-‘f1″,’A”pa”rce’j””of'”i’ndustiTaTTa-il”d’i'”‘Not”’a’ppiTca’bi’eT” Kuala Langat, 42500 Teluk Panglima Storage and maintenance Freehold/  None/ Charged  four  (4)  Notl applicable  2,151,605  2159:873  613500~~60~61r·  . 9,3483951·N;~~s(I~j  Garang, Selangor Darul Ehsan/  area  for  construction 275,340/  times  to  AmBank  and  materials and equipment  Not applicable  (M) Berhad  01.06.2015/  Geran Mukim 1622, Lot 4907, Locality  Comparison  of Jalan Tanjong Duabe(as, Mukfm of  Method and  Teluk  Panglima  Garang,  District  of  Investment  Kuala Langat and State of Selangor  Method  Darul Ehsan  6.  Ilkhma·s  …. “”” “.”.”.”.”.”.” ” _……. No, 63. Jalan SS15/8A, SS15, 47500 An intermediate  .”””.””.” .”.”.”.” 4-storey 30/  ,..  None!  1984  907,170 …..__._ ,  897,9061 -,  3,600,000/__..”–_. 2,692,830 I Notes (3)  Jaya  Subang Jaya, Selangor Darul Ehsan/  terrace shop/ officel  Freehold/  Charged  to  07.03.2014  and (5)  Rented to two (2) different 1,755/  Southern  Bank  and  Geran 298818, Lot No. 8254, Bandar tenants  6,696  Berhad  and  CIMB  01.06.2015/  Subang Jaya (formerly known as HSO  Bank Berhad  Cost Method  9434,  PT  No.  4073,  Mukim  of  and  Damansara), District of Petaling and  Investment  State of Selangor Darul Ehsan  Method  Sub-Total  16,371,1501  6,469,749  18,600,000 I  12,228,850
98
I Company No 1072872-0 I 4. INFORMATION ON OUR GROUP (Cant’d)
7.  ISetiausaha No.2, Jalan Kerayong 5, Taman Sri A corner single-storeyl13 years! This land shall notI19.11.2001 Kerajaan Kerayong, Off Ja!an Kapar, 42200 terrace house! Leasehold 99 be transferred, Selangor! Kapar, Selangor Darul Ehsan! Vacant years (expiring on charged or leased I Ikhmas IPM 3742, Lot No. 31071, Seksyen 1, 17.01.2094)1 without the prior Jaya 3,0251 approval from the Locality of Kapar, Pekan Kapar, 1,053 state authority! (formerly known as HS(M) 16307, Lot None No. PT 20591, Mukim of Kapar),  14,934  14,934  160,000/1 145,066 04.03.2014 and 01.06.20151 Cost Method  0_””” ‘””0″ “~””‘”IDarul Ehsan I Sub-Total  160,000 145,066  I I Total  25,240,000 13,913,8401  Note (6)

Notes:­(1) The party \-valls between the shop! office have been demolished to provide mutual access. The staircase at shop! office no. 35 has been removed and the side verandah at shop! office no. 35 has been enclosed. The first floor’s flat roof area and second floor’s void area between shop! office nos. 35 and 37 have been enclosed. This is also the same with the area between shop! office nos. 37 and 39. On behalf of Ikhmas Jaya, Arkitek Mustapha Kama! Sdn Bhd (the “Architect”) had on 4 July 2014 submitted an application to Majlis Bandaraya Petaling Jaya (“MBPJ”) to obtain approval for the extension and renovation (“MBPJ Approval”). As at the LPD, the MBPJ Approval is pending and is anticipated to be obtained twelve (12) months from the date of the submission of the revised building plan incorporating all the necessary amendments required by MBPJ (“MBPJ Submission for Final Approval”). The MBPJ Submission for Final Approval is pending as we are waiting for the inspection from the fire Department in order to obtain the release! approval letter from the Fire Department. Please refer to Section 3.1.12 of this Prospectus for our next course of action in the event that the MBPJ Approval is not obtained and for the risk associated with the aforementioned non-compliance. Please refer to note (5) in Section 4.14.2 of this Prospectus in relation to the undertakings provided by us on the MBPJ Approval.
(2) Erected on the site are two (2) open sided structure and ancillary buildings as well as cabin containers which are generally constructed of metal framework, metal deck Toof and metal cladding wall. A building plan approval has yet to be obtained. On behalf of Ikhmas Jaya, Jururancang Nazreeomar as the Planning Consultant had on 28 August 2014 submitted an application to Majlis Daerah Kuala Langat (“MDKL”) to obtain planning approval for the temporary building used as a storage area for construction materials (“MDKL Approval”). MDKL had on 16 October 2014 granted a conditional approval for the temporary building plan (“MDKL Conditional Approval”) and further issued a separate letter dated 24 October 2014 setting out detailed conditions (“MDKL Letter of Conditions”). Thereafter, we expect to submit the revised building plan incorporating all the necessary amendment(s), as required by MDKL (“MDKL Submission for Final Approval”). We have obtained the approval from Indah Water Konsortium on 28 April 2015. further, Tenaga Nasional Berhad (”INS”) has via its letter dated 6 April 2015 stated that it has no objection for the construction of the temporary building! store subject to the construction of a substation. We have via our letters dated 12 April 2015 and 18 May 2015, appealed to the TNB for the waiver of such requirement which were not successful. We are in the midst of submitting another appeal to TNB to waive the said condition in view that the MDKL Approval is for the temporary bUilding! store. As at the LPD, the MDKL Approval is pending and is anticipated to be obtained within twelve (12) months from the MDKL Submission for final Approval. Please refer to Section 3.1.12 of this Prospectus for our next course of action in the event that the MDKL Approval is not obtained and for the risk associated with the aforementioned non-compliance.

99 [COmpany No: 1072872-0 I 4. INFORMATION ON OUR GROUP (Cont’d) (3) The front wall of the first floor has been repositioned to accommodate an opened sitting area. On behalf of Ikhmas Jaya, the Architect had on 4 July 2014 submitted an application to Majlis Perbandaran Subang Jaya (“MPSJ”) to obtain approval for the extension and renovation (“MPSJ Approval”). MPSJ had on 26 August 2014 granted a conditional approval for the building plan (“MPSJ Conditional Approval”). In reply, the Architect had on 16 October 2014 submitted the revised bUilding plan incorporating all the necessary amendments as required by MPSJ (“MPSJ Submission for Final Approval”). The approval of the Fire Department was obtained on 12 May 2015 (“Bomba Approval”). On behalf of lkhmas Jaya, the Architect had on 26 May 2015 notified MPSJ that the Bomba Approval had been obtained and the conditions for the MPSJ Submission for Final Approval have been fulfilled. Further, on behalf of Ikhmas Jaya, the Architect had on 27 May 2015, made payment to MPSJ for an extension of ten (10) months from 18 August 2015 to 18 May 2016 to obtain the MPSJ Approval CMPSJ Approval Extension”). As at the LPD, the MPSJ Approval is pending and is anticipated to be obtained within twelve (12) months from the MPSJ Approval Extension. If our Group is not able to obtain the MPSJ Approval, we intend to request and negotiate with the tenants occupying the property to shift in order for rectification works to be performed on the property until all the relevant laws, regulations, rules and requirements are fully complied with. Save for the loss of rental income to our Group, there is no associated risk that could affect our business and operations in connection to the aforementioned non-compliance. Please refer to note (5) jn Section 4.14.2 of this Prospectus in relation to the undertakings provided by us on the MPSJ Approval.
(4) We do not have a copy of the CF and has requested for a copy from MPSJ. As indicated by the MPSJ in its letter dated 26 May 2014, the CF had been issued in 1984 by Majlis Perbandaran Petaling Jaya and MPSJ is unable to provide us with a copy of the CF as MPSJ does not have a copy in its records as the CF was issued more than 29 years ago (“MPSJ Letter”). Therefore, the exact date of the issuance of the CF cannot be determined other than the year of the issuance as stated in the aforementioned MPSJ Letter.
(5) We had on 31 October 2014 provided the SC the following undertakings:­
(a) To obtain the MBPJ Approval and MPSJ Approval in accordance with the expected timeframe as disclosed in note (1) and note (3) in Section 4.14.2 ofthis Prospectus respectively;
(b) To update the SC when the MBPJ Approval and MPSJ Approval are obtained; and
(c) To provide all necessary disclosures with regards to the status of the applications to MBPJ and MPSJ to obtain the MBPJ Approval and MPSJ Approval respectively in our annual report.

 

(6) The revaluation surplus has not and will not be incorporated in the financial statements of the Ikhmas Jaya.

Please refer to Section 12 of this Prospectus for the Valuation Certificates prepared by the Independent Registered Valuers in relation to the valuation of the properties. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 100 ~ompany No: 1072872-0 J 4. INFORMATION ON OUR GROUP (Cont’d) 4.14.3 Investment Properties
(i) Not applicable 1. ISolid 8-1, Level 8, Damai 88, No.79, Ja(an Damai, off Jalan IService Apartment Not applicable! 1,078,616None! Promenade Ampang, 55100 Kuala Lumpur, Wilayah Persekutuanl Freehold! Charged to United Overseas Sdn Bhdl 1,215 Bank (Malaysia) Bhd Ikhmas Jaya Parcel No.: 8-1 within storey No.8 held under Master Title GRN76768, Lot 20003, Seksyen 88 (formerly known as GRN12914, Lot 83, Seksyen 0088), Bandar 3.1~~i~s~~;i····· “I~i~~~~~:~6p~’ji~I~~ j;~~;~~~i;~~~~~eJ~~:ia:;~~1 servEeApartment “‘I-~~~’:ft~il~a~~e~::;:'”;:XPiring and  District  of  Kuala  Lumpur,  State  of  Wilayah  Persekutuan  2. ISolid  9~·1·· ..·Iev·eT·9·:·”i5amaT88·,-·-i\fo·:i9~··’j’ai’a·n··i5am·iti,”off’jal”a’ii”)Servi·c€i·’A’piirtme’nt·­ Not applicable!  –..·’NoneT····_·_··  “””””””’1” “”NoTappiicablel······..·1,083,541  Promenade  Ampang, 55100 Kuala Lumpur, Wilayah Persekutuan!  Freehold!  Charged to United Overseas  Sdn Bhdl  1,040  Bank (Malaysia) Bhd  Ikhmas Jaya  Parcel No.: 9-1 within storey No.9 held under Master  Title  GRN76768,  Lot  20003,  Seksyen  88  (formerly  known as GRN12914, Lot 83, Seksyen 0088), Bandar  and  District  of  Kuala  Lumpur,  State  of  Wilayah  Persekutuan (ii)  Th-e-·Ta-;;·cfc-an–·be–·tra-nsferrecjJ·..·······liJ”Not”·ap’piicable1···”{iiij-N”Cirap’plicaEije”‘
leased or charged upon the approval of the statelkhmas Jaya IPetaling Jaya, Selangor Darul Ehsan I on 9 February 2111)! 766.18 authority! Land charged to MalaysianParent Lot (P.T.) 5167, held under Master Title No. HSD 280412, Seksyen 40, Bandar Petallng Jaya, Trustees Berhad and RHB Islamic Bank Berhad Daerah Petaling, Negeri Selangor. Total 2,162,157 Notes:­(i) As at the LPD, there are no existing use to the properties, no CF issued and no valuation carried out on these properties as they are currently under construction.
(ii) As disclosed in Section 13.5(a) of this Prospectus.

(iii) The sale and purchase agreement was signed on 29 January 2015 as disclosed in item (2) in Section 4.14.8 and Section 13.5(i) of this Prospectus. 101 4, INFORMATION ON OUR GROUP (Cont’d) Save as disclosed in Sections 4.14.1, 4.14.2 and 4.14.3 and where relevant in this Prospectus, our Directors, confirmed in respect of the properties of our Group lhat:­(a) there are no other restrictions in interests or encumbrances;
(b) the eXisting land use is in accordance with the land use conditions;
(c) the properties above are in compliance with the relevant land use and building regulations;
(d) the properties above are in compliance with the express conditions attached; and
(e) all the buildings above have been issued with CF.

4.14.4 Material Machinery and Equipment Our Group owned the following material machinery and equipment:­
Material Plant and Eauipment  Air Compressor Backhoe Loader Backpusher Bar Bender Bore Pile Mechanical Rig Bore Pile Vibro Hammer Bore Piling Hydraulic Rig Bulldozer Compact Sub-Station Concrete Pump Concrete Truck Crawler crane CSM Cutter Machine Desander Dump Truck
As at LPD ~ : Fully Depreciated IWith NBV i Total !Total NBV No. of Units i (RM’OOO) iI5 I, 8 13 , 230 5 27 123, i 1-1 ­i -11 7 2-2 ­5 914 ! 6,113 8 10 18 29,203 1-1 ­101 ­1 14 15 1,471i -22 129 ! 11 15 26 7,232i -1 1 3,486! 1 23 336 6-6 ­Electronic Weighbridge System Excavator Foam Cutting Machine Forklift Generator Set Hydraulic Breaker Kelly Barl Extension for Kelly Bar Lorry Mesh Bending Machine Mobile Crane Panel Machine Passenger Hoist Plastering Machine Roller Shovel Skylift Spot Welding Machine Tower Crane Tower Light Trailer Welding Set Wire Cutting and Straightening Machine  I  -6 –17 -3 –8 —1 2 3 —-9 – 1 14 1 1 21 5 1 2 1 8 1 1 2 -2 -1 1 19 1 22 1  1 20 1 1 38 5 4 2 1 13 1 1 2 1 4 3 1 1 19 1 31 1  36, 2,620 136 14 710 96 69 119 4 3,649 1,446 285 46 -41 -6 508 199 74 255 8  Total  58,650 1
4. INFORMATION ON OUR GROUP (Cont’d) As at 31 December 2014, the total cost and NBV of our Group’s machinery and equipment are approximately RM119.73 million and RM62.25 million respectively. As at the LPD, the total cost and NBV of our Group’s material machinery and equipment are approximately RM114.88 million and RM58.65 million respectively. The above NBV are disclosed based on the major machinery and equipment. In line with our management’s plan to expand our bore piling fleet and our prefabricated bUilding system manufacturing facility (as set out in Section 2.7 of this Prospectus), it is our intention to purchase additional construction equipment and machinery and equipment for manufacturing prefabricated building system as part of our business growth. 4.14.5 Production Facilities and Operation Capacities Measures of output, capacity and utilisation are not relevant for our principal business activities in piling and foundation, and construction of bridges and buildings. We operate a factory in Nilai, Negeri Sembilan through MM2 Building System to carry out our secondary business activity, which is manufacturing prefabricated building system. For FYE 2014, our output, capacity and utilisation rate for the manufacture of prefabricated building system are as follows:­
Prefabricated Building 450,000 29,238 6%System (3( Notes:­(1) Computed based on three (3) shifts per day for 25 working days per month.
(2) Running on one (1) shift per day for 25 workings days per month.
(3) Comprises wall, slab and staircase panels.

4.14.6 Material Capital Expenditure and Divestitures Save as disclosed below, we did not incur any other material capital expenditures and divestitures in the past four (4) FYE 2011 to FYE 2014 and up to the LPD:­
Capital Expenditure Acquisition of machinery and equipment in relation to our business Acquisition of property Divestitures Disposal of machinery and equipment in relation to our business  9,068 108  33,173 123 565  11,330 3,788  17,875 1,687 340  3,234 287 40
The capital expenditures listed above were financed through our internally-generated funds and/or bank borrowings. 103 4. INFORMATION ON OUR GROUP (Cont’d) The detailed breakdown of the capital expenditures and divestitures tabulated in the above table for the past four (4) FYE 2011 to FYE 2014 and up to the LPD are as follows:­(a) FYE 2011 Our acquisition of machinery and equipment for total purchase costs of approximately RM9.07 million for FYE 2011 comprises the following:­Description of the Machinery and Equipment  Units  RM’OOO  Bore piling hydraulic rig  2  4,989  Crawler crane  3  1,835  Bore pile vibro hammer  1  1,020  Various types of machinery and equipment  – 1,224  Total  9,068  I
We did not acquire any property during FYE 2011. Our disposal of machinery and equipment for total sales proceeds of approximately RMO.11 million for FYE 2011 comprises the following:­
(b) FYE 2012 Our acquisition of machinery and equipment for total purchase costs of approximately RM3317 million for FYE 2012 comprises the following-Description of the Machinery and Equipment  Units  RM’OOO  Bore piling hydraulic rig Panel machine Excavators Crawler crane Bore pile vibro hammer Various types of machinery and equipment Total  4 1 4 2 1 – 26,516 1,993 1,400 1,240 1,020 1,004 33,173
The additional acquisition costs of approximately RM24.1 0 compared to the previous FYE 2011 arose mainly from the additional units of bore piling hydraulic rig which we had purchased based on our requirements to cater for additional related work. During the FYE 2012, we made progress payments of approximately RMO.11 million for our service apartment at Damai 88, Ampang as disclosed in item 1, Section 4.14.3 of this Prospectus, as well as additional miscellaneous capitalised charges of RMO.01 million for our industrial land at Teluk Pang lima Garang as disclosed in item 5, Section 4.14.2 of this Prospectus. 4. INFORMATION ON OUR GROUP (Cont’d) Our disposal of machinery and equipment for total sales proceeds of approximately RMO.57 million for FYE 2012 comprises the following:­Description of the Machinery and Equipment  Units  RM’OOO  Boring rig Bore pile mechanical rig Crawler crane Bore pile vibro hammer Total  1 1 1 2 I I  220 160 140 45 565
(e) FYE 2013 Our acquisition of machinery and equipment for total purchase costs of approximately RM11.33 million for FYE 2013 comprises the following:­Description of the Machinery and Equipment  Units  RM’OOO  Bore piling hydraulic rig Crawler crane Bore pile vibro hammer Concrete pump Various types of machinery and equipment Total  1 4 2 8 – 2,150 2,730 2,040 1,761 2,649 11,330
Our acquisition of machinery and equipment for FYE 2013 decreased by approximately RM21.84 million compared to FYE 2012 mainly because we only purchased one (1) unit of bore piling hydraulic rig in FYE 2013 as compared to four (4) units in the previous FYE 2012. Our acquisition of property for total purchase costs of approximately RM3.79 million for FYE 2013 comprises the following:­Description of the Property  RM’OOO  Purchase consideration for a piece of land at Lot 299, Jalan Segenting, 42500 Teluk Pang lima Garang, Selangor Darul Ehsan las disclosed in item 2, Section 4.14.8 of/his Prospectus)  3,312  Progress payments for the two (2) units of service apartments at Damai 88, Ampang las disctosed in items 1 and 2, Section 4.14.3 of/his Prospectus)  471  Miscellaneous costs Pang lima Garang Total  relating  to  the  acquisitlon  of the  above  land  al Teluk  5 3,788
There were no disposal of machinery and equipment during the FYE 2013. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 4. INFORMATION ON OUR GROUP (Cont’d) (d) FYE 2014 Our acquisition of machinery and equipment for total purchase costs of approximately RM17.88 million for FYE 2014 comprises the following:­Description of the Machinery and Equipment Units RM’O~J 1 7,620Rotary drillin9 machine 9 5,79225 tonne truck crane 2,315MFE formwork 2 Various types of machinery and equipment -2.148 Total 17,875 During the FYE 2014, we made total progress payments of approximately RM1.58 million for the two (2) units of the service apartments at Damai 88, Ampang as disclosed in items 1 and 2, Section 4.14.3 of this Prospectus which were acquired in FYE 2012 and FYE 2013. We also carried out survey and other works including town planning services for our land at Lot 299, Teluk Panglima Garang, as disclosed in item 4, Section 14.4.2 of this Prospectus, amounting to RMO.11 million. Our disposal of machinery and equipment for total sales proceeds of approximately RMO.34 million for FYE 2014 comprises the following:­Description of the Machinerv and Equipment  Units  RM’OOO  I  Hydraulic crawler drill Compact electrical substation Road roller Total  ~  2 1 1  165 135 40 340
(e) As at the LPD Our acquisition of machinery and equipment for total purchase costs of approximately RM3.23 million from 1 January 2015 up to the LPD (“Financial Period”) comprises the following:­Description of the Machinery and Equipment  I  Units  RM’OOO  Bore pile vibro hammer Various types of machinery and equipment Total  l  2,850 384 3,234
We made total progress payments of approximately RMO.29 million up to the LPD for one (1) unit of the service apartments at Azure Residences, Petaling Jaya as disclosed in item 3 of Section 4.14.3 of this Prospectus, which was acquired in January 2015. We disposed off one (1) unit of roller for total sales proceeds of approximately RM40,000 during the Financial Period. 4.14.7 Material Plans to Construct, Expand or Improve Facilities As at the LPD, save as disclosed in Sections 2.7 and 4.18 of this Prospectus, we have no immediate plans to construct, expand or improve any of our existing facilities. 4. INFORMATION ON OUR GROUP (Cont’d) 4.14.8 Acquisitions of Properties During the Two (2) Years Preceding the Date of This Prospectus Save as disclosed below, there are no other properties as set out in Sections 4.14.2 and 4.14.3 of this Prospectus, which were acquired during the last two (2) years preceding the date of this Prospectus.

88, No.79, Jalan Ampang, 55100 Kuala storey No.9 held GRN76768, Lot (formerly known as 83, Seksyen 0088), Bandar and District of Kuala Lumpur, Stale Unit No A-16-2, Floor 16, Block A, Azure Paradigm PJ, Jalan Jaya, 47301 Petaling HSD 280412. No. P.T. 5167, Seksyen 40, Daerah Petaling, 23 JUly 2013 29 January 2015 Total 1,547,915 779,950 2,327,865
(i) Sale and purchase agreement dated 23 July 2013 between Solid Promenade Sdn Bhd as a proprietor, D.J. Design & Suppliers Sdn Bhd as the vendor and lkhmas Jaya as the purchaser in relation to the acquisition by Ikhmas Jaya of the property subject to the conditions and restrictions in interest to the issue document of title (as disclosed in 13.5(a) of this Prospectus). Ikhmas Jaya has paid a deposit of RM154,791.52 upon execution of the sale and purchase agreement. As at 31 December 2014, Ikhmas Jaya has paid deposit and progress billings amounting to a total of RM1 ,083,541 as disclosed in item no. (2) In Section 4.14.3 of this Prospectus. No payment has been made since 1 January 2015 up to the LPD and the balance of RM464,374 will be paid in tranches on 23 July 2016 in accordance with the terms of the agreement.
(ii) Sale and purchase agreement dated 29 January 2015 between Jelas Puri Sdn Bhd as the vendor and Ikhmas Jaya as the purchaser in relation to the acquisition by lkhmas Jaya of the property subject to the conditions and restrictions in interest to the issue document of title for a total consideration of RM821 ,000 (as disclosed in 13.5(i) of this Prospectus). Ikhmas Jaya was given a 5% discount by the vendor upon the execution of the sale and purchase agreement resulting in the net total purchase consideration payable by Ikhmas Jaya IS RM779,950. From 1 January 2015 up to the LPD, Ikhmas Jaya has paid RM287,350 in accordance with the terms of the agreement.

4.14.9 Regulatory Requirement and Environmental Issue There is no regulatory requirement and environmental issue which may materially affect our operations and utilisation of assets. I Company No: 1072872-0 ] 4. INFORMATION ON OUR GROUP (Cant’d) 4.15 APPROVALS, MAJOR LICENCES AND PERMITS Details of the approvals obtained by us for our Listing from the SC, ECU and MITI together with the conditions imposed by these authorities and the status of compliance are set out in Section 7.1 of this Prospectus. Other approvals, major licences and permits obtained by our Group for the operation of business, other than those pertaining to general business registration requirements are as follows:­(al Ikhmas Jaya
1.  SPKK  Grade  G7  government ICIDB  A073478/196121D­ 106.11.2014  From 06.11.2014 11.  General Conditions  contracts for:­ SL019057  to 1608.2016  (a)  This certificate is issued based on the information provided  Noted  (a) Category  B  (Building  by the applicant! company.  construction);  (b)  This certificate shall not be used as  acknowledgment for  Noted  (b) Category  CE  (Civil  engineering  initiating or undertaking to execute construction ‘NOr!<. This  construction); and  certificate  shall  be  used  to  participate  in  govemment  procurement or any work with government agencies only.  (c)  Category  ME  (Mechanical  and  electrical).  (c)  This certificate will be revoked automatically ifthe certificate  Noted  of registration as a contractor has expired or is cancelledl  revokedl suspended in accordance with Regulation 15 of  the  Registration  of  Contractors  (Construction  Industry)  1995.  (d)  This  certificate  must  be  submitted  together  with  the I  Noted  certificate of registration as contractor during the tender for  government  procurement  work  or  any  work  with  government agencies.  (e)  This acknowledgement of registration certificate shall be I  Noted  renewed together with the certIficate of registration issued  by CIDB as contractor.  (f)  This certificate which is not renewed within six (6) months I  Noted  from the date of expiry of the certificate of registration as  contractor will be removed from the register of CIDB. Any  application  made  thereafter  is  deemed  to  be  a  new  application and the terms and conditions for the issuance  of SPKK for the new application shall be complied with.
108 I Company No: 1072872-0 I
1.  I2.  Responsibilities of the Companyl Holder of the Certificate  (a) The company! holder of the certificate shall not lend, lease,  transfer, permit or cause the certificate to be used by  someone who has not been named to use this certificate  for the purpose of procuring government work.  (b) Only officers of the company who are named in this  certificate are authorised to sign the company contract  documents and take or authorise the employees to take  document tendered.  (c) The company! holder of the certificate shall ensure all  terms and conditions to obtain this certificate are complied  with at all times during the period of validity of this  certificate.  (d) The companyl holder of the certificate shall inform CIDB of  any change in information within twenty-one (21) days from  the date of occur~nce of the said change.  (e) The company! holder of the certificate shall comply with all  instructions and resolutions of the govemment via treasury  instructions, treasury circular letters and cir<:ulars issued by  Jabatan Teknikal (Jabatan Ke8a Rayal Jabatan Pengairan  & Saliran) from time to time.  (f) The company! holder of the certificate shall comply with all  instructions and resolutions issued by CIOB from time to  time.  3.  Disciplinary A<:tions  (a) The company! holder of the certificate shall be subject to  such disciplinary actions set out in Regulation 15 of the  Registration of Contractors (Construction Industry)  Regulations 1995 in the event of failure to comply with item  2 above.  I J  J  I  ~  I  CIOB has the right to take disciplinary action and impose an unishment on the re istered contractor.
Complied Complied Noted Complied Complied Complied Noted Noted 109 I Company No: 1072872-0 I 4. INFORMATION ON OUR GROUP (Cont’d)
1.  (c) The company! holder of the certificate who has been blacklisted, suspended, revoked or where this certificate has been withdrawn due to disciplinary proceedings shall not participate in any tender or government procurement work. (d) The company! holder of the certificate whose certificate has been revoked or withdrawn will be removed from the register of CIOB. Such company who wishes to obtain a SPKK shall comply with the terms and conditions for the issuance of SPKK for new applications. A blacklisted key management personnel is prohibited from obtaining SPKK for a period of three (3) years. (e) The company/ holder of the certificate who has been blacklisted and suspended shall participate in tender or government procurement work only after the expiry of the blacklisting or suspension period. 4. Financial Limits (Work Cost) (a) SPKK registered contractor shall only participate in tender allowed under the registration grade it is registered under.  I I I I  Noted Noted Noted Complied
[THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] 110 I Company No: 1072873=0] 4.  INFORMATION ON OUR GROUP (Cont’d)  2.  ICertificate of Registration pursuant to IelOB Part VI of Akta Lembaga Pembangunan Industri Pembinaan Malaysia 1994 in respect of:­OB4658A11961210­SL019057  114.03.2014  From 14.03.2014 11. to 16.0B.2016  (a) This certiflcate is non-transferable. General Conditions  Noted  (a) Grade G7 Category B:­ (b) GlOB reserves the right to review the registration grade ofl the registered contractor from time to time.  Noted  (1) 802: Industrialised Building System -system using steel frames (2) 804: General building wOrXs (3) B05: Piling works (4) B06: Concrete repair works (5) BOB: Installation of waterproofing materials (6) B09: Landscaping (7) 812: Aluminium! Steel and glass works (B) B13: Tile installation and plaster works (9) B24: Building maintenance works (b) Grade G7, Category CE:­ 2.  Responsibilities and Obligations of the Contractor (a) The contractor shall comply with the provisions of the ‘Lembaga Pembangunan Industri Pembinaan Malaysia’ Act 1994, the regulations made thereunder and any term, condition or restriction imposed by CIOB from time to time. (b) The contractor shall not participate in any tender or execute any construction works after the expiration of this certificate unless it is renewed. (c) The contractor shall not undertake any construction projects which exceeds the value of construction INOrks specified under the registration grade and shall not execute any type of construction work outside of its registered category(ies).  Complied Complied Complied  (1) CE01: Road and pavement construction (2) CED2: Bridge construction (3) CED3: Marine structures (4) CE04: Dams (5) CED5: Tunnel and foundation (6) CE06: Irrigation and flood control (7) CED7: Railway tracks (8) CED8: Slope conservation system (9) CE10: Piling works (1 D) CE11: Concrete repair works (11 )CE12: Soil investigation works (12)CE13: Installation of signage  (d) The contractor shall submit information regarding any new construction works or contract(s) within one (1) month of the award. (e) The contractor shall submit any information required by CIOB from time to time. (~ The contractor shall display the certificate of registration issued by CIOB or a certified true copy of the same by CIOB at the place of business. (g) The contractor shall display its registration number on the signboard at each construction site  Complied Complied Complied Complied
111 [Company No: 1072872-()j 4. INFORMATION ON OUR GROUP (Cant’d)
2. (Cont’d) (13)CE14: Landscaping (14)CE19: Sewerage system (15) CE2D: Water supply system (16)CE21: General dvil engineering works (17)CE23: ‘Pre-stressing’ and ‘Post-tensioning’ works (18)CE24: Civil engineering structures (19)CE30: Soil stabilisation and underground drainage works (20)CE31: Civil engineering telecommunication works (21 )CE34: Installation worKs for pre–cast concrete (22) CE36: Soil wo”,s
(23) CE42: Road paint works and signage

(24)CE43: Road barriers and other roadworks (e) Grade G7. Category ME:­(1) E10: Specific control panels
(2) M01: Air-conditioning and ventilation system
(3) M15: Various mechanical equipment

(h)  The contractor shall apply for a renewal of registration within sixty (60) days before the expiry date specified in this certificate. Any application received by CIOB later than thirty (30) days before the expiry of the certificate of registration shan incur a penalty fee of RM200 for late renewal.  Complied  (i)  The contractor shall comply with all requirements and stipulations in the Contractor’s Code of Ethics.  Complied  3.  Disciplinary Actions  The contractor’s registration shall be cancelled, suspended or revoked if:­ (a)  The contractor fails to comply with the requirement of any other written law;  Noted  (b)  The contractor has been adjudicated a bankrupt;  Noted  (c)  A winding-up petition in relation to the contractor has been presented;  Noted  (d)  The contractor contravenes or fails to comply with any provision of the ‘Lembaga Pembangunan Industri Pembinaan Malaysia’ Act 1994;  Noted  (e)  The contractor has obtained the certificate by making or causing to be made any false Or fraudUlent declaration, certification or representation either in writing or otherwise;  Noted  (f)  The contractor has abandoned any construction works I undertaken without any good reason;  Noted  (9)  The contractor is found negligent by the court or by anyl board of enquiry established under any written law in connection with any construction works undertaken; or  Noted  (h)  The contractor contravenes or fails to fulfil any of the I contractor’s responsibilities and obligations as specified in ,araaraph 2.  Noted
112
[Company No: 1072872-0 I 4.  INFORMATION ON OUR GROUP (Cont’d)  3.  Certificate of Registration evidencing IMAH the registration with MAH to provide services including:­(1) WorKs for patented roofing (2) Works for plastering the road surfaces! bituminous tannac (3) Reinforced concrete frame for buildings not exceeding 4 storeys and reinforced concrete frame above the storey (4) Prefabricated wooden buildings (5) Piling works-post-tensioned or pre-stressed concrete (6) Piling wori<s-steel (7) Piling works-wood (8) Piling works-patented system (9) Works for asphalt coating (1 O)High pressure plastering works (11 )Grunting (12)Testing works which do not affect any part of the concrete (13)Works for signage installation (14)Tenninal building, satellite & 18756: Registration Class: Z005  29.05.2014  From 18.10.2011 to 29.05.2016  11. 2.  General Conditions (a) This approval is given by MAH based on the infonnation provided by the company. Therefore the infonnation provided must be complete and accurate. (b) All infonnation required by the MAH should be submitted along with the registration fonn. (c) MAH reserves the right to refuse, cancel or suspend any of the conditions set by the MAH. (d) This Certificate of Registration is also applicable to all of the company’s subsidiaries. Rejection! Suspension! Revocation of Registration Registration of the company shall be rejected, suspended or revoked if:­(a) the company/ its owners! partners! directors are involved in any illegal activities! crime and!or are convicted! found guilty by the courts of Malaysia or outside Malaysia;  Complied Complied Noted Noted Noted  cargo (15)Airtraffic control tower (16)Construction of airplane runway/ aircraft parKing stand (17)WorKS for rocks breaking and metal goods supply (18)WorKS on land research (19)Reinforced concrete or pre-cast reinforced concrete for frames, drop curbs, sewers and drainage (20)Construction of pre-stressed or post~ tensioned concrete (21 )Prefabricated concrete buildings (22)Steel framed building (23)Parquet flooring and wooden blocks, finishing  (b) the company withdraws its offer before the tender is considered or reject the offer after an offer has been made; (c) the company fails to implement the contracts signed with MAH including such contracts entered into by its subsidiaries; (d) this approval letter has been amended or tampered with for fraudulent or other reasons; (e) this registration certificate is misused by any individual or other companies; and (f) the company is found to have colluded with another company in respect of the cost of the tender/ quotation issued by MAH and!or its subsidiaries.  Noteo Noted Noted Noted Noteo
113
I Company No: 1072872-0 I 4.  INFORMATION ON OUR GROUP (Canl’d)  3.  (Cont’d)  3.  Renewal  (24) Works for sanltary system maintenance, repainting and general repair of building (25) Interior decoration, planning and decoration of buildings including ceiling panels, partitions, “built in fitments” and works for the elevated floor (26) Steel works (27) Prefabricated and patented steel works (28) Underground drainage (29) Installation of water pipe (30) Installation of oil and gas pipe (31) Works for water drilling (32) Works for provision of soil (33) Works fortransportation (34) Works for clearing and preparation of land (35) Works for planting and maintenance of trees (36) Works for replanting and maintenance of trees (37) Works for forest restoration (38) Landscaping (39)Works for planting of the aqueous seed (40) Forest road (41) Works for general agriculture (42) Installation of piping and fire tools (43) Installation of pumping device (44) Installation of the machines for the sewage treatment plant (45) Installation of water treatment plant equipment (46) Civil engineering (47) Water work structure (48) Water retaining structure  4. 5. 6.  An application for renewal of registration shall be made and submitted to MAH three (3) months before the date of expiry of the certificate of registration. Payment (a) Certificate ofregistratlon -RM200″ (b) Renewal of registration -RM1 00* .. Valid for a period fivo (2) years Participation in Tenderl Quotation (a) This certificate of registration must be presented when collecting tender documents from MAH and its subsidiaries. (b) A copy of this certificate of registration shall be attached with tender documents when participating in any tender offers. Rights of MAH (a) MAH is entitled to obtain all certificates of any company whose registration has been suspended! revoked.  Noted Complied Noted Complied Complied Noted
114 I Company No: 1072872-D I 4. INFORMATION ON OUR GROUP (Cant’d)
(49) Earthworks  (50) Sewerage system  (51) Tunnelling and Diaphragm Wall  and additional mooring on land  (52) Works on irrigation, drainage for  flood areas, hydraulic structures,  power conduits and power plant  (53) Planting connector boxes and or  manholes for telephone network  cables  (54) Earthworks  (55) Construction works including  reinforced concrete frame  structure  (56) Works for building signal path!  tarmac and painting roadl  tarmac  (57) Works for building guard rails,  barriers and mile markers  (58) Piling work ~ concrete in situ  (59) Piling work -precast reinforced  concrete  4.  IPA Type C1 (Sewerage) Permit  National Water  IPATypeNB/C/D/106062014  From 10.06.2015 11.  General Conditions  Service  E* Permit;  to 09.06.2016  Commission  (a) The permit holder shall carry out the work within the state  Complied  Permit No. SPAN!  or states, as may be specified in the permit only.  EKS/ (PT)/ 800­ 2C/1/02l260:  (b) The permit holder shall inform the National Water Service  Noted  Commission of any change in the particulars of the permit  Certificate No. 42903  holder.  (c) The permit holder shall provide information in a format and I  Noted  at such intervals as may be required by the National Water  Service Commission.  (d) Employees and service providers of the permit holder shall I  Noted  be allowed to carry out work authorised under the permit  for the permit holder, provided that the permit holder shall  at all times be liable for any ads or omissions of all  employe~ and the service provider.
115 I Company No: 1072872-0 I 4. INFORMATION ON OUR GROUP (Cont’d)
4.  (e)  The permit holder shall at all times retain the certificate of  Noted  registration as required as a registered contractor which is  issued  by  the  National Water Service  Commission,  if  necessary.  (f)  The permit holder shall at all times  own  and retain the I  Noted  qualification to  hold the permit,  as  may be required and  determined by the  National Water Service Commission  from time to time.  (g)  The permit holder shall at all times deal with the customers I  Noted  fairly and reasonably, and where applicable, in compliant  with the customers standard.  (h)  The permit holder shall at all times protect the safety of the I  Noted  public and employees and shall at all times comply with the  necessary procedures and work rules, hea~h  and safety  regulations as may be imposed by the relevant authorities.  (i)  The permit holders, employees and service providers shall I  Noted  at all times comply with the applicable safety and hea~h  regulations imposed by the relevant authorities.  0)  The  permit  holder shall  observe  and  comply with  the I  Noted  conditions of the permit and the provisions of the Water  Services Industry Act 2006 and any subsidiary legislation  made  or  other  instruments  issued  under  the  Water  Services Industry Act 2006.  (k)  The permit holder shall comply with other conditions  as I  Noted  may  be  imposed  by  the  National  Water  Service  Commission from time to time.  2.  Specific Conditions  (a)  The  permit holder  must  ensure  that they always  have I  Noted  qualified workers to carry out the operations.
116 I Company No: 1072872-0 I 4. 4. 5.  INFORMATION ON OUR GROUP (Cont’d) I IPA Type C1 (Water Supply) Pennit I National Water Service Commission IPATypeAlB/C/DI 13009.2014 E* Permit; Permit No. SPANI EKSI (PDI 800­2C/1/02l260: Certification No. 52127  12. From 12.10.2014 11. t011.10.2015  Specific Conditions (o:mt’d) (b) The permit holder shall ensure that the work to be I subcontracted, be given to the contractors who are the holders of a valid permit of the National Water Service Commission. (c) The permit holder shall have an employee who holds a I pennit under IPA type A or use the services of a plumber holding IPA Type A to cany out related work. General Conditions (a) The permit holder shall cany out the work within the state or states, as may be specified in the permit only. (b) The pennit holder shall inform the National Water Service Commission of any change in the particulars of the pennit holder. (c) The permit holder shall provide information in a fonnat and I at such intervals as may be required by the National Water Service Commission. (d) Employees and service providers of the permit holder shall I be allowed to cany out work authorised under the permit for the pennit holder, provided that the pennit holder shall at all times be liable for any acts or omissions of all employees and the service provider. (e) The pennit holder shall at aU times retain the certificate ofl registration as required as a registered contractor which is issued by the National Water Service Commission, if necessary. m The pennit holder shall at all times own and retain the I qualification to hold the pennit, as may be required and detennined by the National Water Service Commission from time to time.  Noted Noted Complied Noted Noted Noted Noted Noted
117 I Company No 1072872-D I
118 I Company No: 1072872-D I 4. INFORMATION ON OUR GROUP (Cont’d)
119 I Company No 1072872-D I 4.  INFORMATION ON OUR GROUP (Cont’d)  7.  (h)  Leaving any goods! obstructions within or behind the premises is not anowed  Noted  (i)  Nuisance or public disturbance is prohibited I  Noted  0)  For licence applications which require the use of the car I park, the owner of the premises shall rent out the parking spaces in front of the premises for a period of one year  Noted  (k)  The premises shall always be kept clean and adequate I trash bins shall be made available as required by the Licensing Authority  Noted  (I)  Repair services! workshops are only allowed in industrial I areas  Noted  (m) Pet shops are not allowed to be adjoined to c1inicsll restaurants  Noted  (n)  Plan approval from the Department of Planning and I Development, and structure permit approval from the Majlis Bandaraya Petaling Jaya Building Control Department shall be obtained for building renovations, building additions or change in status of the use of building land  Noted  (0)  Letter of approval from the Department of Social Wetfarell Department of Education for education activities  Noted  (p)  Letter of approval from the Ministry of Home Affairs under 1 the Control of Printing 1974 for printing business.  Noted  (q)  Approval from the District Office for activities of selling/l storing! distributing alcohol.  Noted  (r)  Letter of approval from FlNAS for the selling! distribution ofl CD, VCD and DVD  Noted  (s)  Certificate of professional qualifi:cation for teaching music. 1  Noted
120 I Company No: 1072872-0 I 4. 7.  INFORMATION ON OUR GROUP (Cont’d)  (t) Letter of approval from the Department of Environment for the processing! storage! distribution of hazardous chemicals. (u) Letter of approval from the National Pharmaceutical I Control Bureau for health goods! pharmacy (v) Holder of a license shall comply with all applicable laINSI implemented by Majlis Bandaraya Petaling Jaya. (w) the Caunal must be notified in writing for any additional I activities prior to such activities being undertaken (x) Holder of a license shall comply with such other restrictions I and requirements set forth by Majlis Bandaraya Petaling Jaya from time to time (y) A holder of the licence to carry out business activities at I shopping centres is required to install closed circuit cameras (z) A holder of the licence to cany out business in industrial I areas is required to submit a letter of appointment of cleaning consultants to the council (aa) Only adhesives approved by the Council may be In r installed in licensed premises 2. General Conditions (a) Applications for licence renewal may be submitted from I October to the end of the year (b) Prior approval of the Council must be obtained for any I building modifications (c) Toilets should be kept dean and be supplied with sufficient I water and soap at all times (d) There shall be good lighting and ventilation at aU times  Noted Noted Noted Noted Noted Noted Noted Noted Noted Noted Noted Noted
121 I Company No 1072872-0 I 4.  INFORMATION ON OUR GROUP (Cont’d)  7.  (e)  Waste shall be contained in durable plastic containers  Noted  (f)  Sales! business of pirated VCOI pornography on orl  Noted  around the licensed premises shall not be pennitted
(b) MM2 Building System 1. Ucence to carry on business for yearIMajlis 2014 on Lot 444 (PT 3422) & Lot 445 Perbandaran (PT 3423), Jalan Nllai 7/17, Kawasan Nilai Perindustrian Nilai 7, 71800 Nilai, Negeri SembiJan/ Premis Perniagaan (c) Rekavista
L0015067-8 (Under 101.012015 From January 20151 Nil Not applicable to December 2015 the name of Pang Kim Leen)
1.  Certificate of Registration  in respect I GlOB  084289N 1000120­ 119.02.2014  From 29,03.2014 to  11.  General Conditions  of:­ SL054940  28.03.2017  (a)  This certificate is non-transferable.  Noted  (a) Grade  G7  (Unlimited  tender!  contract value), Category B:~  (b)  CIOB reserves the right to review the registration grade  Noted  1)  804: General building works  of the registered contractor from time to time.  2)  805: Piling works  2.  Responsibilities and Obligations of the Contractor  (b) Grade G7, Cate90ry CE­ 1)  CE01:  Road  and  pavement  (a)  The contractor shall comply with the provisions of the  Complied  construction  ‘Lembaga  Pembangunan  Industri  Pembinaan  2)  CE02: Bridge construction  Malaysia’ Act 1994. the regulations made there under  3)  CE04: Dams  and any tenn, condition or restriction imposed by CIDB  4)  CE06:  lnigation  and  flood  from time to time.  control
122 [§ompany No: 1072872j)J 4. INFORMATION ON OUR GROUP (Cant’d)
1.  (Conl’d) 5) 6) 7) 8)  CE07: Railway tracks CE08: Slope conservation system CE10: Piling works CE21: General civil engineering works  (b) (c)  The contractor shall not participate in any tender or execute any construction works after the expiration of this certificate unless it is renewed: The contractor shall not undertake any construction projects which exceeds the value of construction works specified under the registration grade and shall not execute any type of construction work outside of Its registered calegory(ies);  Complied Complied  (d)  The contractor shall submit information regarding any new construction works or contract(s) within one (1) months of the award;  Complied  (e)  The contractor shall submit any information required by CIOB from time to time;  Complied  (f)  The contractor shall display the certificate of registration issued by CIOB or a certified true copy of the same by GlOB at the place of business;  Complied  (g)  The contractor shall display its registration number on the signboard at each construction site;  Complied  (h)  The contractor shall apply for a renewal of registration within sixty (60) days before the expiry date specified in this certificate. Any application received by CIOB later than thirty (30) days before the expiry of the certfficate of registration shall incur a penalty fee of RM200 for late renewal; and  Complied  (i)  The contractor shall comply with all requirements stipulations in the Contractor’s Code of Ethics.  and  Complied
123 I Company No: 1072872-0 I 4.  INFORMATION ON OUR GROUP (Cont’d)  1.  13.  Disciplinary Actions  The contractor’s registration shall be cancelled, suspended or revoked if:­ (a)  The contractor fails to comply with the requirement of any\ other written law;  Noted  (b)  The contractor has been adjudicated a bankrupt;  Noted  (c) (d)  A winding-up petition in relation to the contractor has been I presented: The contractor contravenes or fails to comply with any I provision of the ‘Lembaga Pembangunan Industri Pembinaan Malaysia’ Act 1994;  Noted Noted  (e)  The contractor has obtained the certificate by making orl causing to be made any false or fraudulent declaration, certification or representation either in writing or othelVllise;  Noted  (‘0  The contractor has abandoned any construction works II undertaken without any good reason;  Noted  (g)  The contractor is found negligent by the court or by any I board of enquiry established under any written law in connection with any construction works undertaken; or  Noted  (h)  The contractor contravenes or fails to fulfil any of the I contractor’s responsibilities and obligations as specified in paragraph 2.  Noted
NDte:~ To be renewed upon expiry 124 4. INFORMATION ON OUR GROUP (Cont’d) 4.16 DEPENDENCY ON CONTRACTSI ARRANGEMENTSI L1CENCESI PATENTS Save as disclosed in Section 4.15 of this Prospectus and relevant contractsl awards which are awarded to us in the ordinary course of business, our Board is of the opinion that our Group is not highly dependent on any single contracU arrangemenU licence. 4.17 INTERRUPTIONS IN BUSINESS FOR THE PAST TWELVE (12) MONTHS Over the past twelve (12) months, we have not encountered any material disruptions in our business with the exception of disruptions to two (2) of our projects. These projects were located at Pulau Redang and Pulau Perhentian in the East Coast of Peninsula Malaysia and were affected by the annual monsoon season. Our construction activities were occasionally interrupted by strong winds, heavy rain and flooding. Nevertheless, we had projected for this business interruption as it was due to the anticipated annual monsoon season and had taken this into consideration in our project planning to ensure minimal impact to our financial performance. 4.18 FUTURE PLANS, STRATEGIES AND PROSPECTS Our future plans are focused in the following areas as depicted in the diagram below:­
Expansion of Bore Piling Fleet
: Relocation and Expansion . of our Prefabricated Building System Mapufact!Jrin Construction of Manufacturing Facility
Additional Line of Machinery and Equipment
4.18.1 Expansion of Bore Piling Fleet Part of our future plans is to enhance our bore piling capabilities by expanding our fleet of bore piling machinery. This is expected to enable us to further address opportunities in the Piling, Foundation and Construction Industry in Malaysia. This is predicated by the following:­(a) Construction activities in Malaysia have been vibrant since 2010 with value of construction work completed growing at a CAGR of 14.0% between 2010 and 2014. In 2014, the value of construction work completed grew by 12.8% to RM102.5 billion largely attributed to the ongoing non-residential building and civil engineering construction activities Whereby the former grew by 17.1% to RM34.3 billion and the latter grew by 12% to RM32.7 billion. 4. INFORMATION ON OUR GROUP (Conf’d) (b) The value of construction projects awarded increased at a CAGR of 13.2% between 2010 and 2014. The value of construction projects awarded in 2012 increased by 28.3% to RM127.6 billion. Among the projects awarded in 2012, majority of the contribution came from seven (7) mega infrastructure projects each with contract value equal and more than RM1.0 billion which totalled to RM19.2 billion. (Source: Independent Assessment of the Piling, Foundation and Construction Industry for Infrastructure and BUildings in Malaysia prepared by Vital Factor) In light of the above, we will be expanding our fleet of bore piling machinery to enable us to capitalise on the anticipated growth in future business opportunities. The purchase of new bore piling machinery is estimated to be RM31.82 million. We intend to purchase the bore piling machinery in 2015 and 2016 depending on the number of new contracts secured by our Group. We will utilise a combination of internally generated funds, borrowings and Public Issue proceeds to fund the purchase. 4.18.2 Relocation and Expansion of Our Prefabricated Building System Manufacturing Facility Our Group intends to relocate our prefabricated building system manufacturing operations from our currently rented manufacturing facility at Lot 444 (PT 3422) & Lot 445 (PT 3423), Jalan Nilai 7/17, Kawasan Perindustrian Nilai 7,71800 Nilai, Negeri SembiIan to our own new manufacturing facility to be constructed on our own piece of land measuring a net land area of approximately 115,432 sqf which is located at Lot 299, Jalan Segenting, 42500 Teluk Panglima Garang, Selangor Darul Ehsan (“New Manufacturing Facility”). The New Manufacturing Facility is expected 10 have total built-up area of approximately 46,150 sqf, including a 20,000 sqf warehouse. The total cost of constructing the New Manufacturing Facility is estimated at RM5.0 million which will be funded by a combination of internally generated funds and borrowings. Upon all required approvals being obtained, we expect to commence the construction of the New Manufacturing Facility in early August 2016. The tentative timeline for the construction of the New Manufacturing Facility is as set out below:­Tentative timina  Event  Early November 2014 I  Original application to the relevant authority(ies) for the conversion of category of land use Expected re-submission with additional information to the relevant authority(ies) for the conversion of category of land use -Approval expected to be obtained for the conversion of category of land USe -Expected submission of the bUilding plan to the relevant authority(ies) Approval expected to be obtained for the building plan Expected commencement of construction works Expected completion of construction works Expected obtaining of Certificate of Completion and Compliance (“CCC”) I  Early July 2015 f-=-­ End December 2015  End June 2016  Early August 2016  End January 2017  End February 2017
Based on the foregoing, we had on 15 October 2014 and 23 June 2015 provided the SC the following undertakings:­(i) to obtain the cec for the New Manufacturing Facility; 126 I I4. INFORMATION ON OUR GROUP (Cont’d) (ii)  not to occupy the New Manufacturing Facility before the CCC is obtained;  (iii)  to make half-yearly announcement to Bursa Securities on the status construction of the New Manufacturing Facility every six (6) months upon oapproval from the SC in relation to the Listing; and  of btaining  the  (iv)  to update the SC when such announcement is made.
Following the completion of the New Manufacturing Facility, our Group intends to purchase an additional line of prefabricated building system machinery and equipment, which is estimated to cost RM5.0 million to be funded by the Public Issue proceeds as disclosed in Section 2.7(b) of this Prospectus including the descriptions of the machinery and equipment to be purchased utilising the said Public Issue proceeds. We anticipate to expand our prefabricated building system manufacturing and installation business. Our annual production capacity is expected to increase to a total of about 900,000 m 2 with the expected additional 450,000 m2 annual production capacity contribution from our new line of machinery and equipment as compared to our existing annual production capacity of 450,000 m2 The new manufacturing line of prefabricated building system is to cater for the manufacture of new range of products. This new range of products consists of panel and steel mesh with diameter ranging from 4.0 mm to 5.0 mm, which is larger diameter compared to our existing steel mesh with diameter of 3.0 mm. This will enable us to construct taller buildings using less material due to the thicker steel mesh that provides stronger support. For instance, with our existing machine capabilities, the construction of taller buildings will require a double panel system. On the other hand, the new product with larger diameter steel mesh will only require a single panel system for the said construction due to stronger support. In this respect, the new products will enable our Group to be in a better position to secure new projects in the future, which will in turn increase the income and profitability for our Group. Further, the reason for our expansion in the manufacturing and installation of prefabricated building system is because we expect demand to grow. The Malaysian Government has encouraged the usage of prefabricated building system in the construction industry partiCUlarly for the construction of low to medium cost houses as this bUilding system can produce a large number of houses at affordable costs. Based on the Budget 2015, the Malaysian Government continues to address housing supply through Perbadanan Perumahan Rakyat 1Malaysia (PR1MA), Syarikat Perumahan Nasional Berhad (SPNB) and National Housing Department (JPN). The following are the future supply of residential properties that are planned by the Malaysian Government in the Budget 2015:­RM644 million is allocated to JPN for the development of Program Perumahan Rakyat which involves the construction of 26,000 housing units; PR1 MA will provide 80,000 units with an allocation of RM1.3 billion whereby sales price of PR1 MA homes will be lower by 20% than market prices; SPNB to build 12,000 units of Rumah Mesra Rakyat, 5,000 units of Rumah Idaman Rakyat and 20,000 units of Rumah Aspirasi Rakyal. (Source: Independent Assessment of the Piling, Foundation and Construction Industry for Infrastructure and Buildings in Malaysia prepared by Vital Factor). The total cost of the relocation and expansion exercise described above is estimated at RM10.0 million and will be funded by a combination of internally generated funds, borrowings and Public Issue proceeds. 127 I Company No: 1072872-D I 4. INFORMATION ON OUR GROUP (Cont’d) 4.18.3 Milestones The following table indicates the timing for the implementation of our future plans:­
Relocation and Expansion of Our Prefabricated Building System Manufacturing Facility Construction of the New Manufactun’ng Facility Additional Line of MachineI}’ and Equipment
4.18.4 Sustainable Business Performance We have a sustainable business where we have demonstrated growth over the past four (4) financial years as follows:­Between FYE 2011 and FYE 2014:­(a) Revenue grew at a CAGR of approximately 26.38%;
(b) GP grew at a CAGR of approximately 2840%;
(c) PBT grew at a CAGR of approximately 36.06%; and
(d) PAT grew at a CAGR of approximately 36.71 %.

Our demonstrated business growth over the past four (4) financial years will provide us with the platform for continuing business success and growth. 4.18.5 Industry Prospects and Outlook The prospects and outlook of the Piling, Foundation and Construction Industry in Malaysia are generaily dependent on the following factors:­(a) Socio-economic conditions Socio-economic factors including, amongst others, gross development product, gross national product, population, urbanisation and employment rate will stimulate investment and development activities in both private and public sectors which would have a positive flow-on effect on the Piling, Foundation and Construction Industry in Malaysia. The economy in Malaysia is estimated to grow between 4.5% and 5.5% in 2015, led by the services and manufacturing sectors, which are expected to continue expanding albeit at a more moderate pace. (b) Performance of the construction industry The performance of the construction industry has an impact on the local economy and directly affects operators that are involved in the Piling, Foundation and Construction Industry. Malaysia’s real gross development product of the construction industry grew at a CAGR of 11.3% between 2010 and 2014, and is forecasted to grow by 10.3% in 2015. Between 2016 and 2020, the construction industry in Malaysia is forecasted to grow at a CAGR of 10.3%. 4. INFORMATION ON OUR GROUP (Cont’d) (c) Government initiatives that drive growth in the bUilding and construction industry
Various initiatives such as the 11 th Malaysia Plan, Economic Transformation Programme, Government Transformation Programme, and the Corridors and Cities Transformation Programme consisting of numerous infrastructure and development projects will stimulate investments from local and foreign parties.
(d) Infrastructure and major development projects up to 2020

In the Budget 2015, the Malaysian Government announced several construction projects amounting to approximately RM154 billion to be implemented in 2015. Besides these construction projects, there are numerous other ongoing and proposed infrastructure and major development projects that would create opportunities for operators in the Piling, Foundation and Construction Industry in Malaysia up to 2020. (Source: Independent Assessment of the Piling, Foundation and Construction Industry for Infrastructure and Buildings in Malaysia prepared by Vital Factor) Please refer to Section 5 of the Independent Assessment of the Piling, Foundation and Construction Industry for Infrastructure and BUildings in Malaysia prepared by Vital Factor. [THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

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