Business Overview

5. INFORMATION ON OUR GROUP 5. INFORMATION ON OUR GROUP 5.1 Our History and Business Our Company was incorporated in Malaysia under the Act as a public company limited by shares on 10 September 2014 under the name of Sunway Construction Group Berhad. As at the LPD, the authorised share capital of our Company is RM2,000,000,000 comprising 10,000,000,000 SCG Shares whilst the issued and paid-up share capital of our Company was RM258,580,002 comprising 1,292,900,010 SCG Shares. As at the LPD, our Company is a wholly-owned subsidiary of Sun Holdings. Our Company has been formed as a special purpose entity to facilitate the Listing. Our principal activity is investment holding whilst our subsidiaries, jointly controlled entity, unincorporated joint ventures and unincorporated consortium are principally involved in the construction of bUildings and civil works, manufacturing and sale of precast concrete products in Malaysia and Singapore, and investment holding. The history of SunCon, our wholly-owned sUbsidiary, since its incorporation is as follows:
Prior to 1997 Sungei Way Holdings Sdn Bhd was incorporated as a private limited company under the Act on 26 January 1978. It was converted to a public limited company on 13 December 1983 and was officially listed on the Main Board of the then Kuala Lumpur Stock Exchange as Sungei Way Holdings Berhad on 16 February 1984. Sungei Way Quarry Sdn Bhd was incorporated in Malaysia under the Act as a private limited company and subsequently changed its name to Sungei Way Quarry & Construction Sdn Bhd and Sungei Way Construction Sdn Bhd on 3 March 1981 and 11 June 1984 respectively. 12 June 1997 Sungei Way Construction Sdn Bhd was eventually converted into a public limited company with the name Sungei Way Construction Berhad and listed on the Main Board of the then Kuala Lumpur Stock Exchange. 13 Deoember 1999 Sungei Way Construction Berhad changed its name to Sunway Construction Berhad (“5CB”) and Sungei Way Holdings Berhad changed its name to Sunway Holdings Incorporated Berhad (“5unlnc”). 17 November 2003 The board of directors of 8CB received a notice in relation to a voluntary take­over offer from SunInc (“5unlnc Offer”) to acquire the remaining SCB shares which Sunlnc did not own at an offer price of RM2.73 per share which represented an illustrative market capitalisation value of approximately RM505.08 million based on the issued and paid-up share capital of SCB as at 31 October 2003 of 185.01 million SCB shares (“Privatisation of 5CB”). The offer prioe of RM2.73 per share, satisfied by cash of RM1.10 and one new Sunlnc share at an issue price of RM1.63 per share, represented a historical net price earnings multiple of approximately 15.15 times based on the audited net earnings per share for the FYE 31 December 2002 of 18.02 sen. The Privatisation of 3CB was undertaken by Sun Inc to increase its equity interest in SunCon with the intention of making SunCon its wholly-owned SUbsidiary thereby enhancing the earnings and future cash flow of the Sun Inc group. There were also potential synergistic benefits as well as economies of scales to be achieved within the enlarged Sunlnc group. The Privatisation of SCB was completed and SCB became a wholly-owned subsidia of Sunlnc.

5. INFORMATION ON OUR GROUP (eONT’D)

16 August 2004 Between September 2004 and October 201 0 24 November 2010 18 August 2011 23 August 2011 I 7 November 2014 SCB was delisted from the Main Board (now known as Main Market) of Bursa Securities. 8CB converted from a public company into a private company and assumed its present name, Sunway Construction Sdn Bhd. SunCon Group undertook various projects that further established its track record locally. SunCan Group also completed several major projects in India, Trinidad and Tobago, and UAE, which enhanced its reputation as a contractor overseas. Some of the key milestones, accolades and awards achieved by the SunCan Group are set out in Section 6.2 of this Prospectus. Suntnc changed its name to Sunway Holdings Berhad on 3 December 2007. Sunway made offers to acquire the entire businesses and undertakings of Sunway Holdings Berhad and Sunway City Berhad for an aggregate purchase consideration of RM4.52 billion. Pursuant to the said acquisition, a total of 1,292,505,002 Sunway Shares were issued at an issue price at RM2.80 per share as part of the purchase consideration with the remainder of the purchase consideration of RM904.75 million being satisfied in cash. Sunway also issued a total of 258,501,000 warrants as part of the purchase consideration. Sunway was incorporated on 10 November 2010 under the name Alpha Sunrise Sdn Bhd to facilitate the acquisition of the businesses of Sunway Holdings Berhad and Sunway City Berhad. Sunway City Berhad was primarily involved in property development, property investment, hospitality, ieisure and healthcare and was listed on the Main Market of Bursa Securities since 8 July 1996. Sunway changed its name from Alpha Sunrise Sdn Bhd to Sunway Sdn Bhd on 23 November 2010 and then converted from a private company to a public company on 30 November 2010 The businesses of Sunway Holdings Berhad and Sunway City Berhad were merged under the enlarged Sunway Group (“Merger”) The enlarged Sunway Group consisted of two main businesses, namely property and construction. Other business divisions included quarry and building materials, trading and manUfacturing, and hospitality, leisure and healthcare. The combined businesses of Sunway Holdings Berhad and Sunway City Berhad created economies of scale to compete effectively and harness synergies between the property and construction business respectively. Sunway had operational, procurement and administrative efficiencies, resulting from economies of scale and integration inclUding better access to larger scale business opportunities, with direct access to equity and debt capital markets. Sunway was admitted to the Official List and the listing of and quotation for its entire issued and paid-up share capital on the Main Market of Bursa Securities. Sunway Holdings Berhad and Sunway City Berhad were delisted from the Main Market of Bursa Securities. They subsequently converted from public
companies to private companies assuming their present names of Sunway Holdings Sdn Bhd and Sunway City Sdn Bhd respectively. Execution of share sale agreement in relation to the Transfer of SunCon.
5. INFORMATION ON OUR GROUP (CONT’D)
15 May 2015 Completion of the Transfer of SunCon, pursuant to which the Consideration Shares have been fully issued by our Company in accordance with the terms of the share sale agreement. 5.1.1 Rationale for the Listing of Our Company After the Privatisation of SCB, the revenue and profits of SCB and its group of companies (“SGB Group”, which was the precursor to the current SCG Group) had increased from approximately RM108 billion and approximately RM51.12 million respectively for the FYE 31 December 2003 (recorded under the SCB Group) to approximately RM1.88 billion and approximately RM124.77 million respectively for the FYE 31 December 2014 (under the SCG Group). The size of our order book has also grown from approximately RM1.0 billion in early 2004 (recorded under the SCB Group) to approximately RM3.06 billion (under the SCG Group) as at 31 December 2014. Based on SCB’s audited consolidated financial statements for FYE 31 December 2003 and our audited combined financial statements for FYE 31 December 2014, our compounded annual growth rate based on profit growth for the period following the Privatisation of SCB until 31 December 2014 was 8.4%. The increase in the revenue, profits and order book of our Group over the years has been undergirded by growth and enhancement in our Group’s operations and technical capabilities during the post-Privatisation of SCB period, in particular in the following respects: (a) Since the Privatisation of SCB, the foundation and geotechnical engineering services business of our Group has acquired expertise in bored piles construction. Our Group’s entire existing fleet of bored piles machinery was acquired following the Privatisation of SCB. The bored pile market is expanding as bored piles are used in foundation works for projects such as MRT, LRT and BRT, and in the construction of high rise buildings. The margins for bored piles jobs are generally higher than those for general construction works and accordingly our Group’s involvement in bored piled works enhances our Group’s overall margins.
(b) Our Group has expanded our precast concrete business operations in Singapore to include components required in HDB housing developments. As the expansion coincided with a growth in the number of HDB projects, our precast concrete business grew rapidly during this period.
(c) Our Group has also successfully established a track record for overseas construction projects, including the completion of three highway projects in India which had been secured by the SCB Group prior to the Privatisation of SCB. These projects have led to further highway jobs being secured by our Group in India. Our Group also secured and completed our first projects in Trinidad and Tobago, and Abu Dhabi, UAE during this period. The Rihan Heights project in Abu Dhabi was a particularly significant achievement for our Group as it is the single largest project undertaken by our Group to date and won our Group multiple awards creating recognition of our abilities overseas.

 

5. INFORMATION ON OUR GROUP (CONT’D) (d) Our Group has continued to enhance Our design and build capabilities since the Privatisation of SCB. Amongst the prominent design and build jobs completed by our Group subsequent to the Privatisation of SCB are the Kuala Lumpur Convention Center and building projects such as buildings for the Ministry of Housing and Local Government and Ministry of Women, Family and Community Development in Putrajaya and The Everly Hotel Putrajaya. Design and build jobs are generally more profitable because we can provide more value engineering input to reduce costs. We are able to compete effectively for design and build jobs due to our integrated construction capabilities which include foundation and geotechnical engineering, and mechanical, electrical and plumbing services, which gives us the capability to execute our designed projects.
(e) In addition, we have also embarked on developing and utilising VDC in our projects so that it can be a competitive advantage when tendering for certain new jobs. VDC has the potential to help clients save time and costs by identifying design flaws prior to construction.

The growth in our revenue, profits and order book has also been underpinned by the strong track record that we have established in undertaking various construction jobs during the post-Privatisation of SCB period. Our clients comprise repeat customers such as KLCC Corporation Berhad group and Putrajaya Holdings Berhad group. In Johor, through synergies with Sunway Group’s property division, we have estabiished a strong presence and secured mUltiple projects from affiliate companies of Khazanah Nasional Berhad (“Khazanah”). In December 2011, Sunway’s property division entered into a joint venture arrangement with a wholly-owned subsidiary of Khazanah to acquire and develop approximately 700 acres of land in Medini Iskandar. Following this joint venture, Sunway has been able to forge a close relationship with Khazanah. Coupled with a good track record of delivery for its previous projects for Khazanah affiliated companies, in particular, the construction works for Legoland Malaysia Theme Park and Pinewood Iskandar Malaysia Studios, Sunway was awarded various construction project works in Medini Iskandar, such as construction works for the Legoland Water Theme Park, Afiniti Medini mixed development project in Iskandar Malaysia and the Coastal Highway Southern Link in Johor. Moving forward, it remains in Sunway management’s interest to provide assistance and support to our Group via introductions and recommendations to open more business opportunities for our Group. Post-Privatisation of SCB period, our Group had also implemented continuous constructive measures to improve the efficiency of our operations and optimise our productivity, mainly through greater employment of technology tools, employee training and development programmes. Our Group has, during the post-Privatisation of SCB period, enhanced our abilities in our key businesses of building and civil/infrastructure construction services; provision of foundation and geotechnical engineering services; provision of mechanical, electrical and plumbing services; and manufacturing and sale of precast concrete products, both locally and overseas. We have also gained multiple industry recognitions for our achievements. We believe that the construction industry in Malaysia is possibly on the brink of another upswing with the potential award of MRT2, LRT 3 and several highway jobs in the next one or two years. Given the scale of expansion of our Group and opportunities available in the construction industry in Malaysia, we believe that it is timely to re-introduce our Company to the Malaysian equity market via our Listing so as to allow us to seize the opportunities of long-term growth and further grow our construction business. Our Listing also presents a good opportunity to improve our Group’s financial standing and places us in a better position to, if necessary, raise funds via the capital markets in order to execute our projects.

5. INFORMATION ON OUR GROUP (CONT’D) By retaining an at least 51 % stake in our Company after the Listing, Sunway continues to retain its interest in the business direction and financial performance of our Group and is in a position to continue harnessing the synergies between both companies. As detailed in Section 6.4.6 of this Prospectus, given that Sunway and our Group have a long and trusted business relationship, we are expected to continue to be invited to tender for construction of Sunway’s new property projects. As long as our Group remains competitive, Sunway is in a position to provide bedrock orders to our Group, even in the eventuality of a downcycle in the construction sector. In turn, our Group offers Sunway a competitive advantage in property development by providing input on design optimisation and better assurance on quality and timeliness, if selected. According to the IMR Report, the prospects of our Group are supported by the key demand drivers as set out below: Malaysia (i) government expenditure to drive infrastructure development generates demand for construction services;
(ii) greater demand for residential, commercial and industrial properties result in demand for construction services;

(iii) growth prospects of end-user markets/industries drive demand for commercial and industrial properties and supporting infrastructure; (iv) economic growth corridors drive demand for comprehensive infrastructure development;
(v) increase in investments drive overall economic growth, and subsequently, demand for construction services; and
(vi) increasing disposable income and affluence of the population signifies growth opportunities for residential properties.

 

Singapore (i) growth in construction activities drives the demand for precast concrete components;
(ii) rising income levels creating demand for property and reai estate; and

(iii) plans, policies and stimulus that drive the adoption of precast concrete in the construction sector. We view these key demand drivers as indicators of substantial long term growth opportunities and potential for our Group. These key demand drivers are in line with the future plans and strategies of our Group as set out below: (i) continue to enhance our leading position and increase our market share in Malaysia’s construction industry;
(ii) increase our use of technology and automation efforts to further improve our core competitiveness;

I
5. INFORMATION ON OUR GROUP (CONT’O) (iii) maintain our precast concrete presence in Singapore and expand our precast concrete business in Malaysia; (iv) expand our income from foundation and geotechnical services, and mechanical, electrical and plumbing services, to enhance our Group’s revenue streams;
(v) selectively pursue growth opportunities overseas and enter new markets; and
(vi) enhance profitability through effective, ongoing cost reduction initiatives.

Our Listing will further enhance our profile, credibility and visibility in the construction sector in Malaysia as well as internationally, and provide access to local and international investors who favour investment exposure that capitalises on the growth in the construction sector. Our position as the largest listed pure play construction company in Malaysia by revenue upon Listing, according to the IMR Report, will also enable us to compete more effectively for projects in Malaysia and overseas, as well as to facilitate our future capital-raising activities for our continued growth and expansion. 5.2 Share Capital and Changes in Share Capital As at the LPD, our authorised and issued and paid-up share capital are as follows:
Authorised 10,000,000,000 0.20 2,000,000,000 Issued and paid-up 1,292,900,010 0.20 258,580,002 L-….- ~ —-‘-J__ _ The details of the changes in our issued and paid-up share capital since incorporation are as follows:
10 September 2014 10 0.20 Subscribers 2 shares CO20 Transfer of 5 May 2~0151_,2_9_2_,9_0_0_,0_0_0.L _._-‘-__p_u_rs_u_a_nt_t_o_th_e-‘-2_5_8,_58_0_,_00_2…JSunCon As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in our Company.
5. INFORMATION ON OUR GROUP (CONT’D) 5.3 Transfer of SunCon In conjunction with, and as an integral part of our Listing, our Company and Sun Holdings have implemented the Transfer of SunCon which was completed on 15 May 2015, prior to the issuance of this Prospectus. SunHoldings has disposed of its entire equity interests in SunCon to our Company for an aggregate sale and purchase consideration of RM258,580,000 which have been satisfied entirely via the issuance of 1,292,900,000 new SCG Shares, via a conditional share sale agreement entered into between SunHoldings and SCG dated 7 November 2014. The sale and purchase consideration for the Transfer of SunCon of RM258,580,000 was arrived at on a “willing-buyer, willing-seller” basis after taking into consideration, inter-alia, the tollowing: (i) the audited net assets of the SunCon Group as at 31 December 2013 of RM992.4 million adjusted for the following subsequent events: (a) reduction in net assets by approXimately RM378.3 million(1) due to the internal reorganisation ot the SunCon Group, which involves the carve-out of the property development and property investment companies namely, Sunway Permai Sdn Bhd, Sunway Transit System Sdn Bhd, Sunway Dimension Stones Sdn Bhd and Hoi Hup Sunway Development Pte Ltd from the SunCon Group to be held directly by SunHoldings, and the share sUbscription in Sunway Developments Pte Ltd by SunHoldings as announced by Sunway on 19 September 2014;
(b) settlement ot inter-company advances totaling SGD105.8 million (RM287.8 million*) by Sunway Developments Pte Ltd, Sunwa¥ Land Pte Ltd and Hoi Hup Sunway Development Pte Ltd to the SunCon Group! I; and
(c) estimated dividends to be paid by SunCon to SunHoldings of RM360.0 million prior to completion of the Transfer of SunCon(3);

The estimated adjusted net assets of the SunCon Group as at 31 December 2013 after adjusting for the above subsequent events was RM254.1 million. Notes: (1) Comprises the fDIIDwing:
(i)  Carve-out Df Sunway Permai Sdn Bhd from the SunCDn Group to be  10.9  held direclly by SunHDldings  (ii)  Carve-Dut Df Sunway Transit System Sdn Bhd from the SunCDn Group  tD be held directly by SunHDldings  (iii)  Carve-Dut Df Sunway DimensiDn Stones Sdn Bhd from the SunCon  10.8  Group to be held direclly by SunHDldings  (iv)  Carve-out of HDi Hup Sunway DevelDpment Pie Ltd from the SunCan  477  Group to be held direclly by SunHDldings  (v)  Share subscriptiDn in Sunway DevelDpments Pte Ltd by SunHDldings  299.5
(vi) ‘-“CD”‘n”‘s”‘D”‘lid”‘a””‘te…d”a”‘d”‘·u”‘sl”‘m”‘e”‘nt”‘s +-__-,9,,-.4′–1 _____ 378.3 ~
Note: Negligible.

 

5. INFORMATION ON OUR GROUP (CONT’D) (2) The settlement of inter-company advances amounting to approximately SGD105.8 million (equivalent to approximately RM287.8 million’) would not result in any change to the net assets ofthe SunCan Group.
(3) The estimaled dividends of RM360.0 million was based on the cash position of the SunCon Group as at 31 December 2013 of RM172.7 million and estimaled cash of approximately SGD105.8 million (equivalent to approximately RM287.8 million’) to be received from the settlement ofinter-company advances described in paragraph (b) above.

The actual dividends declared by SunCon to SunHoldings from 1 January 2014 up 10 the date of the camp/e/ion of the Transfer of SunCon was RM498.0million. /n spite of the higher dividends paid and the completion ofthe events highlighted in paragraphs (a) to (c) above, the consolidated net assets of SunCan on the date of completion of the Transfer of SunCon were still more than the purchase consideration of RM258, 580, 000 due to the profits made and retained by the SunCon Group since 1 January 2014. Note: Based on exchange rate ofSG01.00: RM2.7201 as at 29 May 2015 (Source: Bloomberg LP) (ii) the future prospects of the SunCon Group; and (iii) potential growth of the construction industry in Malaysia and Singapore. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK
5. INFORMATION ON OUR GROUP (CONT’D) Group Structure Our Group structure upon Listing is set out below: Tan Sri Jeffrey Cheah Minority and family(1) 7.6%(2) I Subsidiaries 1. Sunway Engineering 1.1 Sunway Smartek{3j 1.2 IJM Sunwayt’) 2. Sunway Geotechnics (M)
2.1 Sunway Geotechnics (S)
3. Sunway Industrial Products

3.1 Sunway Concrete Products (S) 4. Sunway Precast Industries
5. Sunway Innopave
6. Sunway Builders

7. Sunway Machinery 8. Sunway M & E(3) 9 Sunway Machineries Services 9.1 Sunway SK 10. Sunway Construction India
11. Sunway Construction Caribbean

12. Sunway Conslruction (S) 13. Sunway Creative Stones 14 Sunspan 15. Sunway GO Piling
16. Sun·Block (Batang Kali)
17. Sunway IBS

Notes: shareholders 36.8%(2) SunwayII 100% I SunHoldingsI I 55.6%(2) I I SCG 100% I SunCon I I
Unincorporated joint ventures 1. Silver Coast Sunway Innopave Joint Venture 2. SunCity SunCon Joint Venture 3. SunCon Central Glass Joint Venture 4. SunGeo Awangsa Joint Venture 5. Fableplus Sdn Bhd-Sunway Engineering Joint Venture 6. Sunway Geotechnics (M) Sdn Bhd -Bauer (Malaysia) Sdn Bhd Joint Venture I Unincorporated consortium 1. ISZL Consortium (1)  Tan Sri Jeffrey Cheah, his interest in related company vehicles, spouse and children.  (2)  Based on our Register of substantial sharel70fders’ sharet70ldings and assuming ti,e Over~allotment  Option is  not exercised.  (3)  Commenced members’ voluntary winding-up on 10 December 2014.  (4)  Jointly controlled entity.
5. INFORMATION ON OUR GROUP (CONT’D) Further details of our subsidiaries, jointly controlled entity, unincorporated joint ventures and unincorporated consortium are as follows:
Sunway Innopave Sunway M & E· Sunway Machinery Sunway Engineering Sunway Builders Sunway Geotechnics (M) Sunspan Sunway Industrial Products Sunway Machineries Services 13 June 1996/ Malaysia 9 December 1992/ Malaysia 4 June 1996/ Malaysia 27 April 1995/ Malaysia 27 December 1993/ Malaysia 17 December 1996/ Malaysia 13 June 1996/ Malaysia 12 August 1997/ Malaysia 3 February 1994/ Malaysia 5,000,000/ 500,000 5,000,000/ 500,000 5,000,000/ 500,000 5,000,000/ 2,500,001 1,000,000/ 1,000,000 5,000,000/ 2,909,602(1 1 10,000,000/ 1,000,000 500,000/ 222,447.59(21 5,000,000/ 1,500,000 100 Construction of civil and building works and provision of project management 100 Dormant (ceased operation) 100 Renting of machinery and site equipment and undertaking 5ub­contract work 100 Provision of mechanical and engineering works 100 Construction of building and civil works 100 Providing geotechnical services and related products and hire of heavy machineries 100 Dormant (ceased operation) 100 Investment holding 100 Investment holding 5. INFORMATION ON OUR GROUP (eONT’D)
Sunway Construction India Sunway Creative Stones Sunway GD Piling Sunway Construction Caribbean Sunway Precast Industries Sunway IBS Sun-Block (Batang Kali) Sunway Construction (S) 31 December 20011 India 28 April 19971 Malaysia 31 May 20051 Malaysia 19 October 20041 Trinidad and Tobago
4 January
19921 Malaysia 25 July 20031 Malaysia 15 January 19981 Malaysia 24 December 19941 Singapore RS.500,0001 RS.100,000 5,000,0001 1,000,000(3) 5,000,0001 1,000,000 Not applicablel TTD9,999 5,000,0001 3,063,631[4) 1,000,0001 10 100,0001 100 Not applicablel SGD2 100 70 100 100 100 70 100 100 Dormant (ceased operation) Dormant (ceased operation) Dormant (ceased operation) Dormant (ceased operation) Manufacturing precast concrete building components and undertaking of precast concrete building contracts Dormant (has not commenced operation) Dormant (ceased operation) Dormant (ceased operation)
5. INFORMATION ON OUR GROUP (eONT’D)  SunCity  6 October  Not applicable  50  Property development  Sun Con Joint  2003  Venture  Sun Con  25 September  Not applicable  70  Completion of curtain walling  Central Glass  2008  works  Joint Venture  SunGeo  11 February  Not applicable  50.8  Piling and substructure works  Awangsa Joint  2011  Venture  Silver Coast  23 March  Not applicable  60  Construction works  Sunway  2008  Innopave Joint  Venture  ISZL  18 December  Not applicable  25  Construction  Consortium  2006  Fableplus Sdn  9 November  No! applicable  30  Provision of mechanical  and  Bhd -Sunway  2010  engineering works  Engineering  Joint Venture
5. INFORMATION ON OUR GROUP (CONT’D)
Sunway  26 July  Not applicable  50  Bored piling works, installation of  Geotechnics  2013  plunge in column and associated  (M) Sdn Bhd­ ancillary works  Bauer  (Malaysia) Sdn  Bhd Joint  Venture
Notes: (1) The authorised share capit8! of Sunway Geotechnics (M) is RM5,OOO,OOO divided into 4,500,000 ordinary shares of RM1.00 each and 50,000,000 non-cumulative redeemable preference shares of RMO.01 each of which RM2,909,602 comprising 2,500,001 ordinary shares of RM1.00 each and 40,960,100 non-cumulative redeemable preference shares of RMO.01 each are issued and paid-up.
(2) The authorised share capital of Sunway Industrial Products is RMSOO,OOO divided into 250.000 ordinary shares of RM1.00 each and 25,000,000 non-cumulative redeemable preference shares of RMO,01 each of which RM222,447.59 compn·sing two ordinary shares of RM1.00 each and 22,244,559 non-cumulative redeemable preference shares of RMO.01 each are issued and paid-up.
(3) The authorised share capital of Sunway Creative Stones is RM5,000, 000 divided into 4,900,000 ordinary shares of RM1.00 each and 10,000,000 non~cumulative redeemable preference shares of RMO.01 each of which RM1, 000, 000 comprising 1,000,000 ordinary shares of RM1.00 each are issued and paid-up.
(4) The authorised share capital of Sunway Precast Industries is RM5,000,000 divided into 4,400,000 ordinary shares of RM1.00 each and 60,000,000 non-cumulative redeemable preference shares of RMO.01 each of which RM3,063,631 comprising 2,500,001 ordinary shares of RM1.00 each and 56,363,000 non-cumulative redeemable preference shares of RMO.01 each are issued and paid-up.
(5) The authorised share capital of Sunway SK is RM500, 000 divided into 350,000 ordinary shares of RM1.00 each and 15,000,000 non-cumulative redeemable preference shares of RMO.01 each of which RM111,800 comprising 100,000 ordinary shares of RM1.00 each and 1,180,000 non-cumulative redeemable preference shares of RMO. 01 each are issued and paid~up.

Commenced members’ voluntary winding-up on 10 December 2014. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 5. INFORMATION ON OUR GROUP (eONrD) 5.5 Subsidiaries 5.5.1 SunCon SunCon was incorporated in Malaysia under the Act as a private limited company under the name of Sungei Way Quarry Sdn Bhd on 26 April 1976. it had subsequently changed its name to Sungei Way Quarry & Construction Sdn Bhd and Sungei Way Construction Sdn Bhd on 3 March 1981 and 11 June 1984 respectively. It was eventually converted to a public limited company and was listed on the then Kuala Lumpur Stock Exchange as Sungei Way Construction Berhad on 12 June 1997. The company then changed its name to Sunway Construction Berhad on 13 December 1999. On 16 August 2004, SunCon was deiisted from the then Kuala Lumpur Stock Exchange after SunHoldings undertook a voluntary general offer for all the shares it did not own and subsequently upon completion of the voluntary general offer, SunCon became a wholly-owned subsidiary of SunHoldings and was converted from a public limited company into a private limited company on 3 December 2004. As at the LPD, SunCon’s authorised and issued and paid-up share capital are as follows:
1,000,000,000 1.00 1,000,000,000I “‘.o”~. 193,954,000 193,954,0001.00Issue~ and paid-up There have been no changes in SunCon’s issued and paid-up share capital for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in SunCon. As at the LPD, SunCon has 21 subsidiaries, 1 jointly controlled entity, 6 unincorporated joint ventures and 1 unincorporated consortium. Further details on SunCon’s subsidiaries and jointly controlled entity are disclosed below. 5.5.2 Sunway Innopave Sunway Innopave was incorporated in Malaysia under the Act on 13 June 1996 as a private limited company. Sunway Innopave is principally involved in construction of civil and building works and provision of project management. Sunway Innopave commenced operations in 1997. 5. INFORMATION ON OUR GROUP (CONT’D) As at the LPD, Sunway Innopave’s authorised and issued and paid-up share capitai are as follows:
Authorised 5,000,000 1.00 5,000,000 Issued and paid-up 500,000 1.00 500,000 There have been no changes in Sunway Innopave’s issued and paid-up share capital for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Innopave. As at the LPD, Sunway Innopave does not have any subsidiary and associated companies. 5.5.3 Sunway M & E Sunway M & E was incorporated in Malaysia under the Act on 9 December 1992 as a private limited company. Sunway M & E is currently a dormant company which has ceased operation and commenced members’ voluntary winding-up on 10 December 2014. As at the LPD, Sunway M & E’s authorised and issued and paid-up share capital are as follows: Authorised 5,000,000 1.00 5,000,000 Issued and paid-up 1 OO 500,000
500,000JL-_.
There have been no changes in the issued and paid-up share capital of Sunway M & E for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway M & E. As at the LPD, Sunway M & E does not have any subsidiary and associated companies. 5. INFORMATION ON OUR GROUP (CONT’D) 5.5.4 Sunway Machinery Sunway Machinery was incorporated in Malaysia under the Act on 4 June 1996 as a private limited company. Sunway Machinery is principally involved in renting of machinery and site equipment and undertaking sub-contract work. Sunway Machinery commenced operations in 1997. As at the LPD, Sunway Machinery’s authorised and issued and paid-up share capital are as follows:
There have been no changes in the issued and paid-up share capital of Sunway Machinery for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Machinery. As at the LPD, Sunway Machinery does not have any subsidiary and associated companies. 5.5.5 Sunway Engineering Sunway Engineering was incorporated in Malaysia under the Act on 27 April 1995 as a private limited company. Sunway Engineering is principally involved in provision of mechanical and engineering works. Sunway Engineering commenced operations in 1996. As at the LPD, Sunway Engineering’s authorised and issued and paid-up share capital are as follows: Authorised
5,000,000 1.00 5,000,000 2,500,001 1.00 2,500,001I Issued and paid-up
5. INFORMATION ON OUR GROUP (eONT’D) The details of the changes in Sunway Engineering’s issued and paid-up share capital for the past three years up to the LPD are as follows:
2,500,00120 August 2013 1,484,001 1.00 Cash As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Engineering. As at the LPD, Sunway Engineering has a subsidiary, namely Sunway Smartek and a jointly controlled entity, namely IJM Sunway, but does not have any associated companies. 5.5.6 Sunway Smartek Sunway Smartek was incorporated in Malaysia under the Act on 3 October 2006 as a private limited company Sunway Smartek is currently a dormant company which has ceased operation and commenced members’ voluntary winding-up on 10 December 2014. As at the LPD, Sunway Smartek’s authorised and issued and paid-up share capital are as follows:
Authorised 100,000 1.00 100,000 Issued and paid-up 2 1.00 21 L –” -‘–L-_ There have been no changes in the issued and paid-up share capital of Sunway Smartek for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Smartek. As at the LPD, Sunway Smartek does not have any subsidiary and associated companies. 5. INFORMATION ON OUR GROUP (CONT’O) 5.5.7 Sunway Builders Sunway Builders was incorporated in Malaysia under the Act on 27 December 1993 as a private limited company. Sunway Builders is principally involved in construction of building and civil works. Sunway Builders commenced operations in 1994. As at the LPD, Sunway Builders’s authorised and issued and paid-up share capital are as follows:
Authorised Issued and paid-up  1,000,000 1,000,000  1.00 1.00  1,000,000 1,000,000
5.5.8 There have been no changes in the issued and paid-up share capital of Sunway Builders for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Builders. As at the LPD, Sunway Builders does not have any subsidiary and associated companies. Sunway Geotechnics (M) Sunway Geotechnics (M) was incorporated in Malaysia under the Act on 17 December 1996 as a private limited company. Sunway Geotechnics (M) is principally involved in providing geotechnical services and related products and hire of heavy machineries. Sunway Geotechnics (M) commenced operations in 2004. As at the LPD, Sunway Geotechnics (M)’s authorised and issued and paid-up share capital are as follows:
Authorised  Ordinary shares  4,500,000  1.00  4,500,000  Non-Cumulative  50,000,000  0.01  500,000  Redeemable  Preference  Shares  (“NCRPS”)  Issued and paid-up  Ordinary Shares  2,500,001  1.00  2,500,001  I NCRPS  40,960,100  0.01  409,601
5. INFORMATION ON OUR GROUP (CONT’D) The details of the changes in Sunway Geotechnics (M)’s issued and paid-up share capital for the past three years up to the LPD are as follows:
As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Geotechnics (M). As at the LPD, Sunway Geotechnics (M) has a subsidiary, namely Sunway Geotechnics (S), but Sunway Geotechnics (M) does not have any associated companies. 5.5.9 Sunway Geotechnics (S) Sunway Geotechnics (S) was incorporated in Singapore under the Companies Act, (Chapter 50) of Singapore on 5 November 2009 as a private limited company. Sunway Geotechnics (S) is currently a dormant company which has ceased operation. Sunway Geotechnics (S) commenced operations in 2011. As at the LPD, Sunway Geotechnics (S)’s issued and paid-up share capital is as follows Issued and paid-up There have been no changes in the Geotechnics (S) for the past three years up to the LPD.

As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Geotechnics (S). As at the LPD, Sunway Geotechnics (S) does not have any subsidiary and associated companies.
5. INFORMATION ON OUR GROUP (CONT’D) 5.5.10 Sunspan Sunspan was incorporated in Malaysia under the Act on 13 June 1996 as a private limited company. Sunspan is currently a dormant company which has ceased operation. As at the LPD, Sunspan’s authorised and issued and paid-up share capital are as follows:
Authorised Issued and paid-up  10,000,000 1,000,000  1.00 1.00  10,000,000 1,000,000
There have been no changes in the issued and paid-up share capital of Sunspan for the past three (3) years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunspan. As at the LPD, Sunspan does not have any subsidiary and associated companies. 5.5.11 Sunway Industrial Products Sunway Industrial Products was incorporated in Malaysia under the Act on 12 August 1997 as a private limited company. Sunway Industrial Products is principally involved in investment hoiding. Sunway Industrial Products commenced operations in 2003. As at the LPD, Sunway Industrial Products’s authorised and issued and paid-up share capital are as follows: Amount RM RM Authorised Ordinary shares 250,000 1.00 250,000 NCRPS 25,000,000 0.01 250,000 Issued and paid-up L-
Ordinary shares 2 1.00 2 —!_N_C_R_PS —!__2_2_,2_4_4~_0_0_1__’___2_2_2_,44_5_5_9…J There have been no changes in the issued and paid-up share capital of Sunway Industrial Products for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Industrial Products. As at the LPD, Sunway Industrial Products has a subsidiary, namely Sunway Concrete Products (S), but does not have any associated companies. 5. INFORMATION ON OUR GROUP (CONrD) 5.5.12 Sunway Concrete Products (5) Sunway Concrete Products (S) was incorporated in Singapore under the Companies Act, (Chapter 50) of Singapore on 16 December 1994 as a private limited company. Sunway Concrete Products (S) is principally involved in manufacturing and sale of precast concrete building components. Sunway Concrete Products (S) commenced operations in 1996 As at the LPD, Sunway Concrete Products (S)’s issued and paid-up share capital is as follows:
There have been no changes in the issued and paid-up share capital of Sunway Concrete Products (S) for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Concrete Products (S). As at the LPD, Sunway Concrete Products (S) does not have any subsidiary or associated company. 5.5.13 Sunway Machineries Services Sunway Machineries Services was incorporated in Malaysia under the Act on 3 February 1994 as a private limited company. Sunway Machineries Services is principally involved in investment holding. Sunway Machineries Services commenced operations in 1994. As at the LPD, Sunway Machineries Services’s authorised and issued and paid-up share capital are as follows:
There have been no changes in the issued and paid-up share capital of Sunway Machineries Services for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options. convertible securities or uncalled capital in Sunway Machineries Services. As at the LPD, Sunway Machineries Services has a subsidiary, namely Sunway SK, but does not have any associated companies. 5. INFORMATION ON OUR GROUP (CONT’D) 5.5.14 Sunway SK Sunway SK was incorporated in Malaysia under the Act on 11 January 1997 as a private limited company. Sunway SK is principally involved in construction of building and civil works. Sunway SK commenced operations in 1997. As at the LPD, Sunway SK’s authorised and issued and paid-up share capital are as follows:
Authorised  Ordinary shares  350,000  1.00  350,000  NCRPS  15,000,000  0.01  150,000  CPaid-uP  Ordinary shares  100,000  1.00  100,000  NCRPS  1,180,000  0.01  11,800
There have been no changes in the issued and paid-up share capital of Sunway SK for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway SK. As at the LPD, Sunway SK does not have any subsidiary and associated companies. 5.5.15 Sunway Construction India Sunway Construction India was incorporated in India under the Indian Companies Act, 1956 on 31 December 2001 as a private limited company. Sunway Construction India is currently a dormant company which has ceased operation. Sunway Construction India commenced operations in 2002. As at the LPD, Sunway Construction India’s authorised and issued and paid-up share capital are as follows:
j:fciFvalO~ Rs: . Authorised 50,000 10
I Issued and paid-up ~ 10 l There have been no changes in the issued and paid-up share capital of Sunway Construction India for the past three years up to the LPD.
5. INFORMATION ON OUR GROUP (CONT’D) As at the LPO, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Construction India. As at the LPO, Sunway Construction India does not have any subsidiary and associated companies. 5.5.16 Sunway Creative Stones Sunway Creative Stones was incorporated in Malaysia under the Act on 28 April 1997 as a private limited company Sunway Creative Stones is currently a dormant company which has ceased operation. As at the LPO, Sunway Creative Stones’s authorised and issued and paid-up share capital are as follows:
Authorised  Ordinary shares  4,900,000  1.00  4,900,000  NCRPS  10,000,000  0.01  100,000  Issued and paid-up  Ordinary shares  1,000,000  I  1.00  1,000,000
There have been no changes in the issued and paid-up share capital of Sunway Creative Stones for the past three years up to the LPO. As at the LPO, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Creative Stones. As at the LPO, Sunway Creative Stones does not have any subsidiary and associated companies. 5.5.17 Sunway GO Piling Sunway GO Piling was incorporated in Malaysia under the Act on 31 May 2005 as a private limited company. Sunway GO Piling is currently a dormant company which has ceased operation. As at the LPO, Sunway GO Piling’s authorised and issued and paid-up share capital are as follows: No. of shares

Authorised 5,000,000 1.00 Issued and paid-up 1,000,000 1.00 5,000,000 1,000,000 There have been no changes in the issued and paid-up share capital of Sunway GO Piling for the past three years up to the LPO. 5. INFORMATION ON OUR GROUP (eONT’D) As at the LPO, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway GO Piling. As at the LPO, Sunway GO Piling does not have any subsidiary and associated companies. 5.5.18 Sunway Precast Industries Sunway Precast Industries was incorporated in Malaysia under the Act on 4 January 1992 as a private limited company. Sunway Precast Industries is principally involved in manufacturing precast concrete building components and undertaking of precast concrete building contracts. Sunway Precast Industries commenced operations in 2000. As at the LPO, Sunway Precast Industries’s authorised and issued and paid-up share capital are as follows:
Authorised  Ordinary shares  4,400,000  1.00  4,400,000  NCRPS  60,000,000  0.01  600,000  Issued and paid-up  Ordinary shares  2,500,001  1.00  2,500,001  NCRPS  56,363,000  0.01  563,630
There have been no changes in the issued and paid-up share capital of Sunway Precast Industries for the past three years up to the LPO. As at the LPO, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Precast Industries. As at the LPO, Sunway Precast Industries does not have any subsidiary and associated companies. 5.5.19 Sunway Construction Caribbean Sunway Construction Caribbean was incorporated in the Republic of Trinidad and Tobago under the Companies Act, 1995 of Republic of Trinidad and Tobago and on 19 October 2004 as a private limited company. Sunway Construction Caribbean is currently a dormant company which has ceased operation. 5. INFORMATION ON OUR GROUP (CONT’D) As at the LPD, Sunway Construction Caribbean’s authorised and issued and paid-up share capital are as follows:
There have been no changes in the issued and paid-up share capital of Sunway Construction Caribbean for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Construction Caribbean. As at the LPD, Sunway Construction Caribbean does not have any subsidiary and associated companies. 5.5.20 Sun-Block (Batang Kalil Sun-Block (Batang Kali) was incorporated in Malaysia under the Act on 15 January 1998 as a private limited company. Sun-Block (Batang Kali) is currently a dormant company which has ceased operation. As at the LPD, Sun-Block (Batang Kalil’s authorised and issued and paid-up share capital are as follows:
Authorised 100,000 1.00 100,000 [Issued and paid~ 1_0_0–,-1_.0_0–,-1_0—.J0 There have been no changes in the issued and paid-up share capital of Sun-Block (Batang Kali) for the past three years up to the LPD As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sun-Block (Batang Kali). As at the LPD, Sun-Block (Batang Kali) does not have any subsidiary and associated companies. 5. INFORMATION ON OUR GROUP (CONT’D) 5.5.21 Sunway ISS Sunway IBS was incorporated in Malaysia under the Act on 25 July 2003 as a private limited company. Sunway IBS is currently a dormant company which has ceased operation. As at the LPD, Sunway IBS’s authorised and issued and paid-up share capital are as follows:

1,000,000 There have been no changes in the issued and paid-up share capital of Sunway IBS for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway IBS. As at the LPD, Sunway IBS does not have any subsidiary and associated companies. 5.5.22 Sunway Construction (S) Sunway Construction (S) was incorporated in Singapore under the Companies Act, (Chapter 50) of Singapore on 24 December 1994 as a private limited company. Sunway Construction (S) is currently a dormant company which has ceased operation. As at the LPD, Sunway Construction (S)’s issued and paid-up share capital is as follows: Share capital
Amount SGD Issued and paid-up 2 -2 ____________-l–__~ ___.JI There have been no changes in the issued and paid-up share capital of Sunway Construction (S) for the past three years up to the LPD. As at the LPD, there are no outstanding warrants, options, convertible securities or uncalled capital in Sunway Construction (S). As at the LPD, Sunway Construction (S) does not have any subsidiary and associated companies. 5. INFORMATION ON OUR GROUP (CONT’D) 5.6 Jointly Controlled Entity of Sunway Engineering IJMSunway IJM Sunway was incorporated in Malaysia under the Act on 13 May 2015 as a private limited company. IJM Sunway is principally involved in investment holding. As at the LPD, IJM Sunway’s authorised and issued and paid-up share capital are as follows:
400,000Authorised 400,000 1.00 Issued and paid-up 2 1.00 There have been no changes in the issued and paid-up share capital of IJM Sunway since its incorporation up to the LPD. As at the LPD, there are no outstanding warrants, options, convertibie securities or uncalled capital in IJM Sunway. As at the LPD, IJM Sunway does not have any subsidiary and associated companies. L –‘Tc.::.H”‘E:..cR-=E=-S=–T_O”-F_T–‘H”‘IS–‘P–‘A_G=-=E=-=-=H=–A-‘-S_B_E_E_N_I–‘NT_E_N_T_,IO-‘-‘-‘N=-=AccLL=-y–‘–LE–‘F–‘T_B_L–‘A_N_K _ 6. BUSINESS OF OUR GROUP OVERVIEW AND HISTORY OF OUR BUSINESS We are one of the largest construction companies in Malaysia, as well as the largest listed pure play construction company in Malaysia by revenue upon Listing, according to the IMR Report. We are an integrated construction company and through our subsidiaries, we are principally involved in the provision of building and civil/infrastructure construction services; provision of foundation and geotechnical engineering services; provision of mechanical, electrical and plumbing services; and manufacturing and sale of precast concrete products. Over the last three FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014, we have derived our revenues primarily from Malaysia and Singapore. For the FYE 31 December 2014, the revenue contribution from Malaysia and Singapore was 86.4% and 13.6%, respectively. Our building construction services comprises residential, commercial, institutional and purpose­bUiit or specialty projects, while our civil/infrastructure construction services cover roads, highways and rail transportation infrastructure projects. Among our landmark building construction projects undertaken include key developments within Sunway Resort City, Kuala Lumpur Convention Centre, Legoland Malaysia Theme Park and Water Park, Pinewood Iskandar Malaysia Studios, the Afiniti Medini mixed development project in Iskandar Malaysia, major Government building projects in Putrajaya, Phase 1, Plot 1, Zone C of the AI-Reem Island project and Phase 1 A, Plot H of the Rihan Heights project, Abu Dhabi, UAE, as well as various HOB projects in Singapore. Our past and present major civil/infrastructure construction projects include the SILK Highway, Package 3 of the Maju Expressway, Section 1B of the South Klang Valley Expressway, Klang Valley MRT Package V4 (viaduct gUideway and associated works from Section 17 Petaling Jaya to Semantan Portal), LRT Package B (Kelana Jaya Line Extension), BRT-Sunway Line, Coastal Highway Southern Link, as well as seven highway projects in India. As at 31 March 2015, our Group has an outstanding order book of approximately RM2.8 billion. Our Group’s history can be traced back to when SunCon officially commenced operations in 1981 as Sungei Way Quarry & Construction Sdn Bhd. The details of our history, segmented by our core principal activities and key supporting functions, are as follows: 6.1.1 Building and Civil/Infrastructure Construction Services SunCon commenced operations in the early 1980s undertaking civil/infrastructure projects including road resurfacing, highway rehabilitation, and drainage and sewerage works. In 1989, SunCon undertook the construction of the Langkawi Jelly awarded by the Ministry of Works in conjunction with the Commonwealth Heads of Government Meeting. Thereafter, having acquired experience in various civil/infrastructure projects, SunCon began taking on larger and more prominent projects. SunCon successfully completed a dual-lane bridge which forms part of the Kuantan -Gambang Highway, a bridge at Pulau Lumut, Klang and the upgrading and widening of a 122 km portion of the Kuantan ­Segarnat Highway. 6. BUSINESS OF OUR GROUP (CONT’D) SunCon completed its first commercial bUilding project in the late 1980s, being the Highway Centre, which became the headquarters for Sunway Group at that time. In 1988, SunCon was appointed as the main contractor for the development of Bandar Sunway, a township in Petaling Jaya, Selangor, which involved the conversion of an exhausted mining area into an integrated township comprising residential, commercial, industrial and recreational developments. SunCon’s initial projects in Bandar Sunway cemprised the construction of single-storey medium cost houses in 1989 and the first high rise commercial building in the township, Menara Sunway in 1991. In 1994, SunCon undertook the construction for Sunway Lagoon Resort Hotel, and in 1997, completed the construction of the Sunway Pyramid Shopping Mall. In 1999, SunCon completed and delivered its first medical centre building, the Sunway Medical Centre in Bandar Sunway. Over the course of the next decade, SunCon centinued to build key developments in the township including Pyramid Tower Hotel, Sunway Pyramid Shopping Mall Phase 2, Sunway Medical Center Phase 2, Monash University Malaysia Campus and Sunway Pinnacle. SunCon also continued to strengthen its design and build capabilities, and was awarded several major Government bUilding construction projects in Putrajaya, namely buildings for Ministry of Finance, National Registration Department, Ministry of Entrepreneur and Cooperative Development, Ministry of Housing and Local Government and Ministry of Women, Family and Community Development between 2000 and 2007, as well as the construction of the Kuala Lumpur Convention Centre in 2002. Concurrently, SunCon had expanded its civil/infrastructure project portfolio in the 1990s with projects such as the main access road to West Port, Pulau Lumut, awarded in 1990 at a contract sum of RM36.1 million, and the Jalan Damansara highway works awarded in 1992, which had a turnkey contract value of RM26.8 million. In 1997, SunCon undertook the design and construction of KLlA’s long term car park and rental depot at a contract value RM41.0 million. During that year, we also undertook the design and execution of short term car parks at KLiA for a contract sum of RM171.4 million. In 2001, SunCon entered into a RM1.0 billion turnkey design and build contract for the Kajang Dispersal Ring Road, now known as the SILK Highway. This was SunCon’s largest turnkey civil/infrastructure project at that time. Since 2011, SunCon has also been actively involved in construction activities in the southern region of Malaysia following the announcement of the Iskandar Malaysia masterplan which aims to strengthen the economy of the state of Johor. In March 2011, SunCon commenced the construction of Package 4 of Legoland Malaysia Theme Park with an awarded contract sum of RM258.0 million. In September 2011, SunCon further secured a project for the construction of an integrated media studio facility known as Pinewood Iskandar Malaysia Studios in a contract worth RM308.9 million. Subsequently in 2012, SunCon was awarded the contract to design and censtruct Package 11 of the Legoland Water Theme Park for a contract sum of RM45.0 million. In 2013, SunCon further undertook a contract for the development of Afiniti Medini mixed development project at a contract sum of RM282.9 million. 6. BUSINESS OF OUR GROUP (CONT’D) SunCon was awarded two landmark infrastructure jobs by Syarikat Prasarana Negara Berhad, where in 2011, SunCon secured the construction of the LRT Package B (Kelana Jaya Line Extension), involving facilities work along a 8.1 km route from Persiaran Kewajipan in Subang Jaya to Putra Heights in a contract valued at RM569.0 million, and following that, in 2013, SunCon was awarded with the design and construction of guideway, halts, depot, and Park ‘n’ Ride facilities for the BRT-Sunway Line for a contract sum of RM452.5 million. In 2014, SunCon was awarded with a contract for the design, construction, testing and completion of the Coastal Highway Southern Link in Johor for a contract value of RM169.9 million. The largest job currently being undertaken by SunCon is the Klang Valley MRT Package V4, involving the construction of a viaduct guideway and other associated works from Section 17, Petaling Jaya to Semantan Portal for a contract sum of RM1.17 billion. 6.1.2 Manufacturing and Sale of Precast Concrete Products On 4 January 1992, Sunway Precast Industries was incorporated as Aktiviti Setia (M) Sdn Bhd to produce and deliver precast products such as architectural facade systems, decorative balustrades and panels, flooring systems, and infrastructural components. Aktiviti Setia (M) Sdn Bhd subsequently adopted its present name on 21 July 1993. Sunway Precast Industries became our wholly-owned subsidiary on 20 February 2006. Sunway Precast Industries was involved in the supply and installation of precast concrete products for 2,200 units of teachers’ quarters in Kuala Lumpur, Selangor and Pahang in 1999. Sunway Concrete Products (S) was incorporated on 16 December 1994 to tap into the commercial and residential development sector in Singapore. Since its inception, Sunway Concrete Products (S) has been supplying precast concrete products to various HDB projects in Singapore. In 2008, Sunway Concrete Products (S)’s growth accelerated as it commenced the manufacture and supply of precast concrete products to the Sunway Group’s Joint venture property developments in Singapore which included DBSS public housing projects such as City View @ Boon Keng, The Peak @ Toa Payoh and Lake Vista @ Yuan Ching. Following on from the success of these projects, Sunway Concrete Products (S) continued to build upon its base of customers comprising mainly of contractors for HDB projects in Singapore. 6.1.3 Mechanical, Electrical and Plumbing Services On 27 April 1995, Sunway Engineering was incorporated to deliver mechanical, electrical and plumbing services. In collaboration with SunCon, Sunway Engineering has delivered mechanical, electrical and plumbing services for projects including the Kuala Lumpur Convention Centre and Traders Hotel Kuala Lumpur, Monash University Malaysia Campus, Zuellig Pharma warehouse, Menara Bintang Goldhill, the Ministry of Housing and Local Government building, the Ministry of Women, Family and Community Development building, Spirit Aerosystems Manufacturing Facility, Putrajaya Gas District Cooling Plant, Bio-XCell Central Utilities Facility and Pasar Seni MRT Station. 6. BUSINESS OF OUR GROUP (CONT’O) 6.1.4 Foundation and Geotechnical Engineering Services On 17 December 1996, Sunway Pipe Pro Sdn Bhd was incorporated to carry out foundation and geotechnical engineering services. Sunway Pipe Pro Sdn Bhd adopted the name Sunway Piling Sdn Bhd on 18 August 2003 and sUbsequently changed to its present name Sunway Geotechnics (M) on 11 January 2008 to reflect its position as a specialist foundation and geotechnical engineering contractor. Since its inception, Sunway Geotechnics (M) has successfully completed a myriad of projects and has continuously grown its credentials, by supporting SunCon’s projects as well as external clients. The establishment of Sunway Precast Industries, Sunway Concrete Products (S), Sunway Engineering and Sunway Geotechnics (M) has allowed our Group to strengthen our construction capabilities, and more importantly, position ourselves as a reputable integrated service provider, encompassing all aspects of construction services from project design to completion. Our Group is also further strengthened by our machinery and logistics support unit via our subsidiary, Sunway Machinery. 6.1.5 Machinery and Logistics Support On 4 June 1996, SWC Machinery Sdn Bhd was incorporated to provide machinery and logistics services to support our building and civil/infrastructure construction services operations. SWC Machinery Sdn Bhd assumed its present name Sunway Machinery on 5 June 2006 During its early years, Sunway Machinery operated from a 4,800 m’ workshop in Bandar Sunway. As at the LPD, Sunway Machinery operates from a 62,769.9 m’ fully-equipped workshop with yard facilities situated in Batang Kali and Subang Jaya, Selangor, comprising 43,559.6 m’ and 19,21004 m’ respectively. Our track record and integrated construction abilities have enabled us to bid for projects outside Malaysia and create an international presence over the last decade. 6.1.6 International Expansion Our Group’s international foray began in 1999 when we completed the provision of construction management services for a 960 MW combined-cycle power plant project in Hai-Fu, Taiwan. This was followed by our venture into India in 2001 and over the period of 2001 and 2007, we have been awarded seven contracts for highway construction by the NHAI, collectively amounting to approximately Rso4.8 billion (equivalent to approximately RM276.0 million(1)) in contract value. In 2005, we expanded our geographical presence to the Caribbean region where we undertook the construction of the Ministry of Legal Affairs Tower in Trinidad and Tobago. 6. BUSINESS OF OUR GROUP (CONT’D) In 2006, our Group participated in a consortium of four Malaysian contractors to undertake the design, execution and completion of Phase 1, Plot 1, Zone C of the AI­Reem Island project in Abu Dhabi, UAE with the project consisting of five residential towers together with an associated podium and seven villas for a total contract value of AED1.3 billion (equivalent to approximately RM1.3 billion(2)). In 2008, we undertook our single largest project to-date where, together with our Abu Dhabi joint venture partner, we secured an AED1.9 billion (equivalent to approximately RM1.9 billion(2)) project for the construction of Phase 1 A, Plot H of the Rihan Heights project, an upmarket residential development in Abu Dhabi, UAE. Notes: (1) Based on exchange rate of Rs.l.00 : RMO.0575 as at 29 May 2015 (Source: Bloomberg L.P.)
(2) Based on exchange rate of AED1.00: RMO.9948 as at 29 May 2015. (Source: Bloomberg L.P.)

6.2 KEY MILESTONES, AWARDS AND RECOGNITIONS Since the inception of operations, we have achieved multiple awards and recognition. We are the only construction company to have won the Builder of the Year award at the MCIEA three times, in 2003, 2005 and 2013. We have also won the International Achievement Award at the MCIEA in 2010 and 2012. Our projects have also consistently received high ratings from quality agencies such as the QLASSIC and SIRIM. Our major projects are disclosed in Sections 6.3.1 and 6.32 of this Prospectus. 6.2.1 Key Milestones Our key milestones since inception are set out below:
6. BUSINESS OF OUR GROUP (CONT’D)
1995 • Incorporated Sunway Engineering Sdn Bhd to deliver mechanical, eiectrical and plumbing services 1996 • Sungei Way Construction Sdn Bhd converted its status from a private company to a public company and assumed the name of Sungei Way Construction Berhad • Incorporated Sunway Machinery (incorporated as SWC Machinery Sdn Bhd) for machinery and logistics support
• Incorporated Sunway Geotechnics (M) (incorporated as Sunway Pipe Pro Sdn Bhd) to deliver foundation and geotechnical engineering services

1997 • Public listing on the Main Board of the then Kuala Lumpur Stock Exchange • SunCon certified ISO 9002:1994 compliant 1999 • Sungei Way Construction Berhad changed its name to SunCon 2001 • SunCon certified OHSAS 18001:1999 compliant 2002 • SunCon upgraded certification to ISO 9001 :2000 for the scope of design and construction services 2004 • SunCon taken private by Sunway Holdings Incorporated Berhad, now known as Sunway Holdings Sdn Bhd 2009 • Implemented VDC • SunCon upgraded certifications to ISO 9001:2008 and OHSAS 18001:2007
• SunCon certified ISO 14001 :2004 compliant

y I 2010 ‘Quality Management” _C_o_m_m_i_tm_en_t_in_it_ia_t_iv_e_’_’_’J_o__u_m_e_y_T_o_W_a_rd_s_T_o_ta_I–l~ ____L_a_u_n_c_h_e_d_in_te_r_n_a_I_Q_U_a_li_t 6.2.2 Key Awards and Recognitions Set out below are the key awards and recognitions achieved by our Group:

Competition 1992  1994  •  Won Prime Minister’s Competition 1994  Golden  Hands  Award  at  Annual  National  Skills  •  Won Prime Minister’s Competition 1997  Golden  Hands  Award  at  Annual  National  Skills
6. BUSINESS OF OUR GROUP (CONT’Dj
1998 • Won the International Federation of Asian and Western Pacific Contractors’ Association Gold Medai Award 2000 • Received MSOSH Gold Award for the Year 2000 for the Construction Sector 2001 • Received Overall Team Champion and Winner of the Minister of Works Challenge Trophy in Malaysian Construction Skill Competition 2001 organised by CIDB 2003 • Won Builder of the Year at MCIEA 2003 2005 • Won Builder of the Year at MCIEA 2005 • Won National Occupational Safety and Health Excellence Award 2005 2006 • Won Major Scale Building Project Award for Kuala Lumpur Convention Centre and Chief Executive Officer of the Year Award 2008 • Won MCIEA Award 2008 in the Information and Communication Technology category 2009 • Won the Grade G7 Contractor Award at MCIEA 2009 • Won National Award of Management Accounting 2009
• Presented MSOSH Gold Class II Award 2009 for project Parcel 17, Ministry

of Housing and Local Government and Ministry of Women, Family and Community Development, Putrajaya by The Malaysian Society for Occupational Safety and Health 2010 • Sunway Geotechnics (M) won Best OSH in Piling and Geotechnics Award by Malaysian Occupational Safety and Health Professional’s Association • Awarded Export Excellence Award (Services) 2010 by Ministry of International Trade and Industry • Won Special Mention Award in International Achievement Category at MCIEA 2010 • Won Malaysia Business Award 2010 for Most Promising Contractor in the Middle East • Sunway Concrete Products (S) ranked as a Singapore 1000 Company 2010 by DP Information Group 2011 • Awarded Export Excellence Award (Services) 2010 by the MITI • Sunway Concrete Products (S) ranked as a Singapore 1000 Company ­Emerging 2011 by DP Information Group
• Achieved 4 Star Ratings for Safety and Health Assessment System in Construction for Parcel 7 and 8 Phase 2 Package A, Putrajaya, and The Everly Hotel Putrajaya

6. BUSINESS OF OUR GROUP (CONT’D)
2012 • AChieved 85% Score in QLASSIC for Impiana KLCC Hotel extension project • Won International Achievement Award for the construction of Phase 1 A, Plot H of the Rihan Heights project, Abu Dhabi, UAE, at MCIEA 2012 • Sunway Concrete Products (S) ranked as a Singapore 1000 Company 2012 by DP Information Group 2013 • Won Builder of the Year at MCIEA 2013 • Awarded Prominent Player Award in recognition of Tan Sri Jeffrey Cheah at MCIEA 2013 • Won Chief Executive Officer of the Year Award in recognition of Kwan Foh Kwai at MCIEA 2013 • Won SIRIM Quality Award (Organisation Category) 2014 • Sunway Engineering won The Electrical and Electronics Association of Malaysia Best Contractor Award 2014 for Industrial Category • Achieved 5 Star Ratings for Safety and Health Assessment System in Construction for project Klang Valley MRT Package V4, viaduct guideway and associated works from Section 17 Petaling Jaya to Semantan Portal
• Awarded Industry Excellence Award (Services) by Ministry of International Trade and Industry

2015 • Won IEM Award for Contribution to Engineering Industry in Malaysia 2015 at IEM’s 56th Annual Dinner and Awards Night • Sunway Engineering achieved five -star SCORE rating for the year 2015 under CIDB’s SCORE Programme 6,3 PRINCIPAL ACTIVITIES We are an integrated construction services company, with the capabilities to provide integrated services and products across different phases of construction, from project design to completion. We are principally engaged in the following: (I) provision of construction services, comprising:
(a) building and civil/infrastructure construction services;
(b) foundation and geotechnical engineering services;
(c) mechanical, electrical and plumbing services;

 

(ii) manufacturing and sale of precast concrete products in Malaysia and Singapore; and

(iii) investment holding. 6. BUSINESS OF OUR GROUP (CONT’Dj Our integrated business allows us to optimise resources across our different business units and provide customers with integrated solutions from initial planning and design, feasibility studies and surveys, project management, construction, construction supervision, and machinery and logistics. Our provisions of foundation and geotechnical engineering services; mechanical, electrical and plumbing services; and manufacturing and sale of precast concrete products business complete our service offering as an end-to-end total construction solutions provider. We are also supported by a large fleet of construction machinery and equipment under our machinery and logistics unit. From FYE 31 December 2012, as a result of an internal restructuring, our machinery and logistics unit began focusing primarily on meeting the internal machinery needs of our construction services business. Rental of machinery and equipment to third party customers only take place occasionally in instances of excess and/or idle capacity. For the FYE 31 December 2014, we have Invested in 22 boring rigs, 23 hydraulic excavators, 16 tower cranes, five launching girders and 13 crawler cranes. We have also invested in approximately 30,000 m’ of system formworks that enable faster construction times as well as allowing us to undertake multiple large-scale projects concurrently. As at 31 March 2015, our Group has an outstanding order book of approximately RM2.8 billion comprising a mix of building and civil/infrastructure construction services projects; foundation and geotechnical engineering services; mechanical, electrical and plumbing services; and manufacture and sale of precast concrete products. Our construction services business is further strengthened by the use of design technology where our design capabilities are enhanced through the use of VDC, a computer-aided design and modelling technology covering all aspects of design, build and project management. Please refer to Sections 6.14 and 6.15 of this Prospectus for further information on VDC. 6.3.1 Provision of Construction Services Our construction services business, primarily focusing on bUilding and civil/infrastructure construction services covers all types of residential, commercial, institutional, purpose­built or specialty buildings, and infrastructure, including but not limited to, the following:
• Highways and • Condominiums/ • Office towers
• Convention bridges service apartments centres
• Airports and • Houses and villas • Resorts and hotels

• Theme parks runways • LRT • Shopping malls • Film studios • BRT • Government • CUFbuildings • MRT • Universities • Hospitals ~–­6. BUSINESS OF OUR GROUP (CONT’D) (i) Building and Civil/Infrastructure Construction Services We offer integrated services from project design to construction completion for residential, commercial and institutional building projects of varying sizes, scales and complexities. We are also a major provider of civil/infrastructure construction services, where we have participated in many roads, highways and rail transportation infrastructure projects over the last 30 years. Our clients in Malaysia include private sector companies, public listed companies, government­linked corporations and agencies under the Federal and State Governments in Malaysia, concessionaires and infrastructure project companies We also offer our services to foreign customers, and have undertaken several large building and civil/infrastructure construction services projects in Singapore, India and the UAE. As at the LPD, our major completed building and civil/infrastructure construction services projects in Malaysia include:
Menara Sunway, Phase  Bandar Sunway Sdn  November 1991 – 34,239  1, Bandar Sunway,  Bhd  July 1993  Selangor  KTM Package 2, Kuala  Panzana Enterprise  May 1992­ 63,331  Lumpur-Port Klang,  Sdn Bhd  May 1994  Kuala Lumpur-Rawang,  Kuala Lumpur-Seremban  KTM Package 1, Kuala  Bumi Teraju  May 1992­ 67,531  Lumpur-Port Klang,  Development Sdn  June 1994  Kuala Lumpur-Rawang,  Bhd  Kuala Lumpur-Seremban  Menara Sunway, Phase  Menara Sungei Way  November 1993 ­ 21,700  2, Bandar Sunway,  Sdn Bhd  August 1994  Selangor  Sunway Lagoon Resort  Sunway Resort Hotel  March 1994­ 161,537  Hotel, Bandar Sunway,  Sdn Bhd  January 1996  Selangor  Sunway Pyramid  Bandar Sunway Bhd  March 1995­ 209,001  Shopping Mall, Bandar  November 1996  Sunway, Selangor  I KLiA short tenn car park,Sepang, Selangor  Malaysia Airports Berhad  September 1996­September 1997  171,368
6. BUSINESS OF OUR GROUP (CONT’D)
Office block, Plaza Pantai, Taman Bukit Pantai, Kuala Lumpur Office block, Maybank, Bangsar, Kuala Lumpur Teachers’ quarters in Kuala Lumpur, Selangor and Pahang Toll plaza lor SILK Highway, Klang Valley Ministry of Finance building, Putrajaya National Registration Department and Ministry of Entrepreneur and Cooperative Development buildings, Putrajaya SILK Highway -turnkey contract for design, construction and maintenance, Klang Valley Pyramid Tower Hotel, Bandar Sunway, Selangor Kuala Lumpur Convention Centre, Kuala Lumpur Traders Holel, Kuala Lumpur Kiara Hills, Taman Sri Hartamas, Kuala Lumpur Sunway Pyramid I Shopping Mall Phase 2, Bandar Sunway, Selangor Atlas Corporation Sdn Bhd Pertama Enterprise Sdn Bhd Encorp Construct Sdn Bhd Sistem Lingkaran Lebuhraya Kajang Sdn Bhd Putrajaya Holdings Sdn Bhd Putrajaya Holdings Sdn Bhd Sistem Lingkaran Lebuhraya Kajang Sdn Bhd Sunway City Berhad Kuala Lumpur Convention Centre Sdn Bhd Kuala Lumpur Convention Centre Sdn Bhd Sunway D’Mont Kiara Sdn Bhd Sunway Pyramid Sdn Bhd March 1997­ 238,520  December 1998  July 1998 ­ 133,230  December 1999  June 1999­ 188,045  August 2000  August 1999 ­ 74,200  December 2000  February 2000­ 138,900  December 2001  April 2001 – 319,300  September 2003  August 2001 – 1,045,000  April 2004  November 2001 – 110,000  April 2004  September 2002 ­ 549,300  March 2005  March 2004­ 193,419  December 2005  April 2004 ­ 147,378  October 2005  February 2005 ­ 298,726  April 2007
6. BUSINESS OF OUR GROUP (CONT’D) 6. BUSINESS OF OUR GROUP (CONT’D) 6. BUSINESS OF OUR GROUP (CONT’D)
Maju Expressway  Leighton Contractors  May 2005­ 165,000  Package 3, Klang Valley  (M) Sdn Bhd  July 2007  Universiti Teknologi  U-Wood Resouces  May 2005­ 181,000  MARA Phase 1 major  Sdn Bhd  February 2009  infrastructural works,  Jeram, Selangor  Monash University  Sunway City Berhad  September 2005 ­ 119,228  Malaysia Campus,  January 2007  Bandar Sunway,  Selangor  Sunway Carnival  Sunway Carnival Sdn  December 2005 ­ 90,288  Shopping Mall,  Bhd  June 2007  Seberang Jaya, Penang  Zuellig Pharma  Zuellig Pharma Sdn  December 2005 ­ 54,880  Distribution Center, Bukit  Bhd  September 2007  Jelutong, Selangor  Solaris Dutamas  Aston Star Sdn Bhd  August 2006 ­ 154,870  (basement B1 to B7),  January 2008  Kuala Lumpur  Sunway Medical Centre  Sunway Medical  March 2007­ 85,000  extension Phase 2,  Centre Bhd  January 2009  Bandar Sunway,  Selangor  Spirit Aerosystems  Malaysia Airports  September 2007 ­ 119,783  facility, Subang Jaya,  Holdings Berhad  November 2008  Selangor  Ministry of Housing and  Putrajaya Holdings  September 2007 ­ 520,000  Local Government and  Sdn Bhd  January 2010  Ministry of Women,  Family and Community  Development bUildings,  Putrajaya  Remaining infrastructure  Putrajaya Holdings  January 2008 ­ 109,630  works, Precinct 11,  Sdn Bhd  January 2009  Putrajaya  South Klang Valley  MEB Construction  February 2008 ­ 263,576  Expressway Section 1B,  Sdn Bhd  November 2009  Klang Valley

The Everly Hotel  Putrajaya Holdings  October 2009 ­ 147,360  Putrajaya, Putrajaya  Sdn Bhd  October 2012  Impiana Hotel extension,  Heritage Lane Sdn  April 2010 ­ 88,000  Seksyen 57, Kuala  Bhd  November 2011  Lumpur  PML Dairies factory,  PML Dairies Sdn Bhd  July 2010­ 129,000  Pulau Indah, Port Klang,  July 2011  Selangor  Gas District Cooling  Gas District Cooling  August 2010­ 42,000  Plant, Putrajaya  (Putrajaya) Sdn Bhd  November 2011  Sunway Velocity Phase  Sunway City Berhad  February 2011 – 209,600  1A, Seksyen 90, Kuala  December 2013  Lumpur  Bio-XCell Biotechnology  Malaysian Bio-XCell  February 2011 – 74,100  Park, Nusajaya, Johor  Sdn Bhd  May 2012  Universiti Teknologi  TRiple Industries Sdn  February 2011 – 191,370  MARA hostel, Jeram,  Bhd and Haluan  January 2013  Selangor  Prisma Sdn Bhd  Legoland Malaysia  lOR Assets Sdn Bhd  March 2011 – 257,969  Theme Park Package 4,  June 2012  Pulai, Johor  Pinewood Iskandar  Iskandar Malaysia  October 2011 – 308,900  Malaysia Studios, PUlai,  Studios Sdn Bhd  May 2013  Johor  Sunway Pinnacle,  Sunway Pinnacle Sdn  March 2012­ 175,100  Bandar Sunway,  Bhd  December 2013  Belangor  Legoland Water Theme  lOR Assets Sdn Bhd  December 2012 ­ 44,989  Park, Pulai, Johor  September 2013  LRT Package A piling  Syarikat Prasarana  December 2013 ­ 27,828  works (Kelana Jaya Line  Negara Berhad  March 2014  Extension)  Sunway University new  Sunway Destiny Sdn  September 2012 ­ 203,917  academic block, Bandar  Bhd  September 2014  Sunway, Selangor  L

Sunway Putra Mall, Jalan  Sunway REIT  May 2013­ 258,400  Putra, Kuala Lumpur  Management Sdn  March 2015  Bhd
As at the LPD, our major completed building and civil/infrastructure construction services projects overseas include:
Phase 1, Plot 1, Zone C  Tamouh  October  1,330,000  1,323,084  of AI-Reem Island, Abu  Investments  2006­ Dhabi, UAE  LLC  April2009  Phase 1 A, Plot H of  Mubadala  November  1,875,000  1,865,250  Rihan Heights project,  Capitaland  2008­ Abu Dhabi, UAE  Real Estate  November  LLC  2010

Belgaum Bypass, Kamataka, India  NHAI  June 2001 -December 2003  976,400  56,143  Roadworks Package 5-C, India  NHAI  September 2001 -March 2005  2,997,111  172,334  Dharwad -Belgaum Package 3, Kamataka, India  NHAI  April 2002­October 2004  2,048,425  117,784  Grand trunk road, India  NHAI  April 2002 ­April 2005  3,964,779  227,975  East -West Corridor roadworks, Rajasthan, India  NHAI  July 2005­January 2008  2,866,500  164,824  East-West Corridor roadworks, Uttar Pradesh, India  NHAI  July 2005­January 2008  4,148,800  238,556  I Cow'”‘”‘ roo”oc.”,Vallarpadam, Cochin, India  NHAI  August 2007­February 2010  3,294,606  189,440
6. BUSINESS OF OUR GROUP (CONT’D)
Ministry of Legal Affairs  The Urban  May 2005­ 368,903  213,041  Tower, Trinidad and  Development  August 2007  Tobago  Corporation of  Trinidad and  Tobago
Notes:  (1)  Based on exchange fate of AED1.00: RMO.9948 as at 29 May 2015. (Source: Bloomberg  L.P.)  (2)  Based on exchange rate of RS.1.00: RMO.0575 as at 29 May 2015. (Source: Bloomberg  L.P.)  (3)  Based on exchange rate of TTOt.aO: RMO.5775 as at 29 May 2015. (Source: Bloomberg  L.P.)
As at the LPD, our current major ongoing buiiding and civil/infrastructure construction services projects in Malaysia inciude:
LRT Package B (Kelana  Syarikat Prasarana  October 2011 – 569,000  Jaya Line Extension)  Negara Berhad  June 2015  Klang Valley MRT  MMC Gamuda  June 2012­ 1,172,750  Package V4, Section 17  KVMRT (PDP) Sdn  January 2016  Petaling Jaya to  Bhd  Semantan Portal  BRT -Sunway Line,  Syarikat Prasarana  March 2013­ 452,523  Selangor  Negara Berhad  June 2015  Sunway Velocity  Sunway Velocity Mall  March 2013­ 349,711  Shopping Mall, Kuala  Sdn Bhd  December 2015  Lumpur  KLCC North East Car  Cititower Sdn Bhd  July 2013­ 304,000  Park, Kuala Lumpur  December 2016  KLCC Package II, Kuala  Cititower Sdn Bhd  July 2013­ 222,000  Lumpur  February 2015′  Sunway Pyramid Phase  Sunway Pyramid  April 2013 ­ 192,630  3, Bandar Sunway,  Hotel Sdn Bhd  September 2015  Selangor  Afiniti Medini mixed  Pulau Indah Ventures  September 2013­ 282,908  development project,  Sdn Bhd  October 2015  Iskandar Malaysia, Johor  “—-­ 1
6. BUSINESS OF OUR GROUP (CONT’D)
Citrine mixed  Sunway Iskandar Sdn  January 2014 ­ 212,800  development, Sunway  Bhd  March 2017  Iskandar, Johor  Sunway Medical Centre  Sunway Medical  May 2014­ 166,629  Phase 3A and 3B  Centre Sdn Bhd  March 2017  Sunway Geo Retail and  Sunway South Quay  June 2014­ 152,500  Flexl Suites, Sunway  Sdn Bhd  June 2016  South Quay, Bandar  Sunway, Selangor  Coastal Highway  SJIC Blna Sdn Bhd  January 2015 ­ 169,862  Southern Link, Johor  January 2017
Note: Pending supplementary agreement from the client due to extension of project scope to include a neighbouring lot as requested by the client. (ii) Foundation and Geotechnical Engineering Services We offer foundation and geotechnical engineering services to our Group’s internal construction projects and as stand-alone services to external clients. Our Group’s principal foundation and geotechnical engineering services cover all types of building such as residential, commercial, institutional, purpose-built or specialty buildings, and civillinfrastructure construction projects, which comprise the following core services: • piling solutions including bored piles; and
• earth retaining systems.

(a) Bored Piles Bored piling is piling work to carry heavy loads from structures, where it involves boring and the simultaneous removal of soil from the ground to form a circular hole through the use of an excavating tool consisting of either a mechanical rotary rig mounted on a crawler crane or a hydraulic drilling rig. Different tools are utilised depending on the various soil conditions. Large diameter bored piles are developed principally to cope with higher structural loads. Bored piling activities also generate less noise and vibration compared with the traditional driven piling method where the pile is driven into the ground by means of a pile driver. 6. BUSINESS OF OUR GROUP (CONT’D) (b) Earth Retaining Systems Retaining walls are structures that restrain soil to unnatural slopes, and are used to bound soils between two different elevations often in areas of terrain possessing undesirable slopes or in areas where the landscape needs to be shaped severely and engineered for more specific purposes like basement construction and hillside slope protection. A retaining wall is a structure designed and constructed to resist the lateral pressure of soil when there is a desired change in ground elevation that exceeds the angle of repose of the soil. Our Group’s earth retaining systems include, but are not limited to, contiguous bored pile walls, diaphragm walls and steel sheet piled walls. As at the LPD, our major completed foundation and geotechnical engineering services projects in Malaysia include:
Sunway Vivaldi, Mont  Sunway D’Mont Kiara  September 2007 ­ 42,814  Kiara, Kuala Lumpur  Sdn Bhd  September 2008  MK28, Mont Kiara, Kuala  Lucky Bright Star Sdn  July 2008­ 28,592  Lumpur  Bhd  May2009  Menara Kamtar, Jalan  Damansara Assets  December 2009 ­ 23,438  Tun Abdul Razak, Johor  Sdn Bhd  May 2010  Sunway Pinnacle,  Sunway City Berhad  May 2010­ 88,000  Bandar Sunway,  November 2011  Selangor  LaCosta, Bandar  Sunway South Quay  January 2011 – 25,759  Sunway, Selangor  Sdn Bhd  September 2011  Sunway Nexis, Kota  Sunway Damansara  January 2011 – 30,448  Oamansara, Selangor  Sdn Bhd  January 2012  Sunway Pyramid Phase  Sunway Parking  February 2011 – 48,300  3, Bandar Sunway,  Management Sdn  July 2012  Se/angor  Bhd  KL Trillion, Jalan Tun  Perumahan SLG  April 2011 – 22,568  Razak, Kuala Lumpur  Central Sdn Bhd  September 2011  Z·Residence, Kuala  Darul Dinasti Sdn Bhd  August 2011 – 22,800  Lumpur  April 2012  Sunway University new  Sunway Destiny Sdn  September 2011 – 34,000  academic block, Bandar  Bhd  September 2012  Sunway, Selangor
6. BUSINESS OF OUR GROUP (eONT’D)
Tropicana Avenue,  Tropicana Golf &  January 2012 ­ 42,380  Persiaran Tropicana,  Country Resort  January 2013  Selangor  Berhad  Sunway Velocity  Sunway Velocity Mall  February 2012 ­ 179,000  Shopping Mall, Kuala  Sdn Bhd  January 2014  Lumpur  Sunway Velocity main  Sunway Integrated  July 2012­ 25,666  transmission intake  Properties Sdn Bhd  July 2013  building, Seksyen 90,  Kuala Lumpur  Tropicana Gardens,  Tropicana Indah Sdn  August 2012­ 56,150  Persiaran Suria, Kota  Bhd  December 2013  Damansara, Selangor
As at the LPD, our major ongoing foundation and geotechnical engineering services projects in Malaysia include:
Sunway Velocity Phase 3, Seksyen 90A, Kuala Lumpur  Sunway Integrated Properties Sdn Bhd  December 2011 -July 2014′  290,500  Mengkuang Dam expansion, Seberang Prai, Penang  Gerbang Kesuma Sdn Bhd  August 2012­July 2016  47,250  Sunway South Quay Commercial Precinct 4, Bandar Sunway, Selangor  Sunway South Quay Sdn Bhd  November 2012 ­June 2014′  81,806  Sunway Velocity tunneling, Section 90, Kuala Lumpur  Sun way City Sdn Bhd  January 2013­July 2015  77,604  Sunway South Quay Commercial Precinct 3, Bandar Sunway, Selangor  Sunway South Quay Sdn Bhd  August 2013­April 2015’  ~ —­ Note:
Pending extension of time arising from changes in project design initiated by the client and difficult soil conditions. 6. BUSINESS OF OUR GROUP (CONT’D) (iii) Mechanical, Electrical and Plumbing Services We provide mechanical, electrical and plumbing services to both our Group’s internal construction projects and as standalone services to external clients. Our main services include: • mechanical: ACMV, lift and escalator systems, fire systems, gas piping systems, and building monitoring and control system;
• electrical: high tension and low voltage electrical systems including transformers, main distribution boards and lighting systems; extra low voltage electrical systems including audio visual systems, smart home systems, closed-circuit televisions and security systems;
• plumbing: water plumbing, sanitary plumbing and irrigation systems; and
• specialised engineering: purpose-built CUF such as biomass and chilled water plants

As at the LPD, our major completed mechanical, electrical and plumbing services projects in Malaysia inclUde:
Kuala Lumpur Convention Centre, Kuala Lumpur  SunCon  September 2002 ­March 2005  183,382  Traders Hotel, Kuala Lumpur  SunCon  March 2004­December 2005  77,367  Sunway Pyramid Shopping Mall Phase 2, Bandar Sunway, Selangor  SunCon  February 2005­September 2007  56,857  Monash University Malaysia Campus, Bandar Sunway, Selangor  SunCon  September 2005 ­January 2007  41,729  Sunway Carnival Shopping Mall, Seberang Jaya, Penang  SunCon  December 2005 ­August 2007  21,498  I !:~., M”‘,,,,,,,”,,”Phase 2, Bandar  SunCon  March 2007­January 2009  26,964
Sunway, Selangor 6. BUSINESS OF OUR GROUP (CONT’D)
Pullman Hotel Block C Luxabuilt Sdn Bhd May 2008-11,660 (Package 4A), Precinct 5, January 2009 Putrajaya Zan Flagship Cyberjaya Fairway Terrace December 2009 -9,600 office blocks, Cyberjaya Construction Sdn Bhd September 2010 PKT Logistics, One Shin Evershendai June 2010-8,280 Logistics Hub, Section Engineering Sdn Bhd November 2010 32, Shah Alam, Selangor Penang International Malaysia Airports January 2011 -8,467 Airport development and Holdings Berhad October 2011 upgrading works, Penang Chilled Water TNB Engineering August 2011 -33,000 Reticulation Network And Corporation Sdn Bhd August 2012 Energy Transfer Station, KLlA, Sepang, Selangor Sunway Putra Mall, Jalan SunCon May 2013­55,100Pulra, Kuala Lumpur March 2015 As at the LPD, our major completed mechanical, electrical and plumbing services projects overseas include:
Phase 1 A, Plot H of  Silver Coast­ January  343,000  341,216  Rihan Heights project,  Sunway  2009­ Abu Dhabi, UAE  Innopave Joint  October  Venture  2010
Note: Based on exchange rate of AED1.00: RMO.9948 as at 29 May 2015. (Source: Bloomberg LP.) 6. BUSINESS OF OUR GROUP (CONT’D) As at the LPO, our major ongoing mechanical, engineering and plumbing services projects in Malaysia include:
Pasar Seni MRT Station,  MMC-Gamuda  October 2014 – 23,423  Kuala Lumpur  KVMRT (UGW) Joint  December 2016  Venture  Gas District Cooling Plant  Gas District Cooling  March 2015­ 7,238  II, Putrajaya  (Putrajaya) Sdn Bhd  September 2015
6.3.2 Manufacturing and Sale of Precast Concrete Products We are an established manufacturer of precast concrete products, including IBS components, for residential, commercial and infrastructure development projects. We develop, design, manufacture and supply precast concrete products through our subsidiaries, Sunway Precast Industries and Sunway Concrete Products (S), with manufacturing plants located respectively in Senai, Johor, Malaysia and Tampines, Singapore. Our subsidiary in Malaysia, Sunway Precast Industries, manufactures and supplies precast concrete products such as architectural facade panels, flooring systems, and infrastructural components, including household shelters, architectural facades, prefabricated toilets, lift wells and covers, roof fascia, precast walls and columns, and precast beams. We have been involved in major supply and installation of 2,200 units of teachers’ quarters in Kuala Lumpur, Selangor and Pahang. Our SUbsidiary in Singapore, Sunway Concrete Products (S), manufactures and supplies precast concrete products for the building sector in Singapore, primarily for the HOB public housing projects as well as for private sector development projects. We have also been involved as a supplier of precast IBS components for the OBSS HOB public housing projects and private development projects that are jointly developed by the Sunway Group. We supply our precast concrete products primarily via main contractors who have been awarded main construction contracts from property developers. We act as sub­contractors to these main contractors, who undertake amongst others, the onsite assembly of precast concrete products. Main contractors may also undertake other construction activities such as earthworks, piling and mechanical, engineering and plumbing works. 6. BUSINESS OF OUR GROUP (CONT’D) 6.3.2.1 Our Precast Concrete Products As at the LPD, our Group has manufactured and supplied precast concrete products primarily consisting of household shelters, architectural facades, prefabricated toilets, lift wells and covers, roof fascia, precast walls and columns, and precast beams. Our major precast concrete products are shown as follows: • Household shelters • Residential I mUlti-storey car • Prefabricated toilet park staircase
6. BUSINESS OF OUR GROUP (CONT’D) As at the LPD, we have completed the manufacture and supply of precast concrete products to the following major projects in Singapore:
DBSS @ Boon Keng  Straits Construction (Pte) Ltd.  Co.  June 2008­March 2010  22,838  62,122  Punggol East C20  Straits Construction Co. (Pte) Ltd.  June 2009­August 2010  35,180  95,693  DBSS @ Toa Payoh  Straits Construction Co. (Pte) Ltd.  August 2009 ­June 2011  54,500  148,245  Woodlands N5C21  Teambuild Engineering & Construction Pte Ltd  August 2010 ­October 2011  21,810  59,325  Punggol West C19  China Jinye Engineering Corporation Limited (Singapore Branch)  September 2011 -June 2013  18,600  50,594  Bukit Merah RC37B  Fonda Global Engineering Pte Ltd  December 2011 -March 2013  18,000  48,962  Yishun N3C23  Straits Construction Singapore Pte Ltd  April 2012 ­June 2013  34,871  94,853  Punggol West C23  Fonda Global Engineering PIe Ltd  May 2012­September 2013  18,000  48,962  DBSS @ Yuan Ching  Straits Construction Singapore Pte Ltd  May 2012­October 2013  19,522  53,102  Bukit Panjang N5C15  Master Contract Services Pte Ltd  September 2012­January 2014  21,026  57,193  Note:  Based on exchange rate of SGD1.00: RM2.7201 as at 29 May 2015. (Source: Bloomberg L.P.)
6. BUSINESS OF OUR GROUP (CONT’D) As at the LPD, we are involved in the manufacture and supply of precast concrete products for the following ongoing projects in Singapore:
Clementi N3C18B  Teambuild Engineering &  December 2012  19,500  53,042  Construction Pte Ltd  Kallang Whampoa  Singapore Piling & Civil  December 2012  20,057  54,557  C23B  Engineering Pte Ltd  Punggol West C31  Progressive Builders Pte  March 2013  28,621  77,852  Ltd  Sembawang N1 C7 and  Right Construction Pte Ltd  November 2013  22,386  60,892  8  Bukit Merah RC53  Straits Construction  December 2013  21,188  57,633  Singapore Pte Ltd  Bukit Merah C50  Straits Construction  January 2014  30,607  83,254  Singapore PIe Ltd
Punggol West C36 Hi-Tek Construction Pte February 2014 18,573 50,520 ILtd Note: Based on exchange rate of SGD1.00: RM2.7201 as at 29 May 2015. (Soufee: Bloomberg L.P.) 6.4 COMPETITIVE STRENGTHS AND ADVANTAGES We believe that our historical successes and future prospects are underpinned by our competitive strengths as follows: 6.4.1 We are one of the largest construction companies in Malaysia According to the IMR, upon our Group’s listing, we are one of the largest construction companies in Malaysia, as well as the largest pure play listed construction company in the country, based on our revenue of approximately RM19 billion in the FYE 31 December 2014. According to the IMR, a pure play construction player is a construction group andlor company that derives 90% or more of its revenue from construction and construction-related activities. 6. BUSINESS OF OUR GROUP (CONT’D) Our Group’s listing will further enhance our visibility in the construction sector in Malaysia as well as internationally, and provide access to iocal and international investors who favour investment exposure that capitalises on the growth in the construction sector. A pure play construction company would enjoy a greater correlation with any potentiai upswings in the construction industry and vice versa. As stated in the IMR Report, the construction industry in Malaysia is expected to enjoy a period of continued growth in the near future following the commencement of works such as the MRT Line 2 and several significant highway jobs. In addition, as a pure play construction company, investors are assured that profits earned by the company will be mainly either returned to shareholders via dividends or reinvested in the construction business. There will be no uncertainties on how resources or capital might be allocated which may happen if we had other businesses like property or building materials. We believe investors value such focus in capital allocation which allows our management greater focus on our business. Such focus also allows our management to gain greater depth in their business and industry knowledge and to chart a firmer business direction for our Group. 6.4.2 We have an integrated business model providing end-to-end design and construction solutions We provide a full range of integrated services and products across different phases of a project from project design to completion, and we support our design and build model with complementary services and products including foundation and geotechnical engineering services; mechanical, electrical and plumbing services; and manufacturing and supply of precast concrete products. Our integrated business model allows us to control the quality, cost and schedule of our projects, thereby helping us to improve overall build quality, reduce wastages and ensure timeiy project completion to maintain and enhance our profitability. In addition, our business has an operating scale that represents one of the largest in the construction industry in Malaysia, enabling us to maximise our economies of scale We have also implemented a series of best practices aimed at rationalising and consolidating management functions across our organisation, known as our Centres of Excellence, which will allow us to better realise synergies across our different business units to help improve operating efficiencies and maximise cost savings. As an integrated construction company, we are well-positioned to bid for and undertake an expansive and varied portfolio of large and compiex projects, including overseas opportunities in other emerging markets, allowing us to effectively diversify our operational risks and ensuring sustainable development of our Group. 6.4.3 We have diversified construction capabilities across various sub -segments of the construction sector We are registered with the CIOB as a Grade ‘7’ construction company, the highest classification accorded by CIOB, which allows us to tender for contracts of unlimited value. Further, our Certificates of Procurement of Government Work issued by CIOB entitles us to bid for Government and Government-related projects. Similarly in Singapore, we are registered with the BCA as a ‘L6′ contractor capable of undertaking precast concrete works of unlimited vaiues. 6. BUSINESS OF OUR GROUP (eONrD) We own a diversified portfolio in the construction sector, allowing us to effectively diversify our operational risks. Our capabilities across the various sub -segments of the construction sector include infrastructure such as highways, bridges and rail transportation; residential such as houses, villas, and condominiums; commercial and institutional buildings such as office towers, shopping malls and government buildings; and purpose -built or specialty buildings such as convention centres, theme parks and CUFs. The expertise and experience gained from the wide range of projects undertaken over the years allows our Group the flexibility to bid for contracts that yield higher profitabiiity, which reduces the risk of relying on the performance of anyone particular construction sub-segment. Coupled with our integrated business model and our diversified capabilities across various SUb-segments of the construction sector, it makes us an end­to-end total construction solutions provider, while giving us the flexibility and robustness to react to changing market conditions. 6.4.4 We have an established and proven track record, including successful international experience Over the last 30 years, we have completed a diverse range of projects including major infrastructure projects, landmark and iconic building projects, townships and mixed development projects, as well as specialist engineering projects. This experience has provided us with in-depth industry knowledge and strong technical capabilities. We have developed a diversified customer base and have achieved significant strides in the local construction industry, as well as expanded our business internationally. Please refer to Section 6.3 of this Prospectus for a list of our major projects, which showcases our proven construction track record. We have laid the groundwork in positioning ourselves as a trusted and reliable construction services company through the successful delivery of building and civil/infrastructure projects for government and private clients domestically and internationally. Our established track record and project references in Malaysia and our international credentials will support our Group’s future growth and ensure our continued sustainability. Please refer to Section 6.1.6 of this Prospectus for a write-up on the history of our international expansion. 6.4.5 We have strong brand recognition
We are a recognised player in the construction industry in Malaysia due to our proven operating history and established brand recognition over the years. Our brand name, “Sunway”, has a heritage of over 30 years and is synonymous with Malaysia’s construction industry. Our success in the construction sector has been recognised and rewarded with several awards and accolades, including: • Builder of the Year at the MCIEA in 2003,2005 and 2013;
• Prominent Player Award at the MCIEA in 2013;
• CEO of the Year at the MCIEA in 2006 and 2013;

6. BUSINESS OF OUR GROUP (CONT’D) • International Achievement Award at the MCIEA in 2010 and 2012;
• Information Communication Technology Award at the MCIEA in 2008;
• Industry Excellence Award (Services) by Ministry of International Trade and Industry in 2014; and
• Five -star SCORE rating for the year 2015 under CI DB’s SCORE Programme.

We have and will be able to continuously leverage on the “Sunway” brand when bidding for contracts locally and internationally. Through our proven success and brand heritage, we are well recognised as a reputable and trusted construction company. 6.4.6 We have strong synergies with our holding company, Sunway As a major property company in Malaysia, Sunway generated revenues of approximately RM1.8 billion in the FYE 31 December 2014 from its property development and property investment divisions. Over the years, our Group has constructed many of Sunway’s key developments in Bandar Sunway inclUding Sunway Pyramid Shopping Mall, Sunway Resort Hotel, Sunway Medical Center, Sunway University, and Sunway Pinnacle. In recent years, we have been involved in the construction of Sunway Velocity Phase 1A comprising service apartments and offices and Phase 2 comprising Sunway Velocity Shopping Mall. In Sunway Iskandar, we are currently undertaking the construction for Phase 1 of the Citrine mixed development project. By retaining at least 51.0% stake in our Group, Sunway continues to maintain its interest in the business direction and financial performance of our Group. Sunway is in a position to provide bedrock orders to our Group, even in the eventuality of a downcycle in the construction sector. For each of Its property projects, Sunway will usually invite contractors to tender for the construction works including our Company. Should our Company remain competitive, Sunway is in a position to award a reasonable amount of jobs to our Company annually even if there are no other jobs in the market. In addition, for selected strategic projects, Sunway may appoint our Company from the outset based on mutually agreed pricing and terms. Strategic projects include the construction of shopping malls, hospitals, education campuses, theme parks, office towers and hotels and resorts that are part of Sunway’s township developments. It would be in Sunway’s interest to keep such technical knowledge within the broader Sunway Group (comprising Sunway and our Group) to maintain competitive business advantage. Furthermore, these developments may include design inputs from Sunway’s other business divisions as they are the ultimate users of these properties, hence our Group’s involvement from the outset ensures that these projects progress as smoothly and seamlessly as possible, which may be more difficult to achieve if the projects involve external construction companies. In the past, our Group has built Sunway Pyramid Shopping Mall, Sunway Medical Center, Sunway University campus, Monash University Malaysia campus and Sunway Resort Hotel. Currently, our Group is also constructing Sunway Velocity Shopping Mall and Sunway Pyramid Phase 3 for Sunway. In Johor, it has also been strategic for Sunway to award its residential development, Citrine at Sunway Iskandar, to our Group to ensure timely completion. All transactions with Sunway will be in accordance with procedures established by our Group for recurrent related party transactions as set out in Section 10 of this Prospectus. 6. BUSINESS OF OUR GROUP (CONT’D) For the FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014, OUr Group generated revenues of RM372.1 million, RM622.8 million and RM567.5 million respectively from the Sunway Group that comprised 25.7%, 33.9% and 30.2% of our Group’s revenue for the respective financial periods. For the same financial years, our Group generated gross profit of RM47.8 million, RM66.8 million and RM137.9 million respectively from the Sunway Group that comprised 16.9%, 19.8%, and 34.9% of our Group’s gross profit for the respective financial periods. In turn, our Group offers Sunway a competitive advantage in property development by providing input on design optimisation and better assurance on quality and timeliness, if selected. 6.4.7 Our senior management and key management personnel have extensive experience in the construction industry Our senior management and key management personnel have extensive management skills, operating experience and industry expertise. All of our key management personnel have substantial industry experience, and thus have intricate knowledge of the operations of our construction business. Please refer to Sections 8.2.2 and 8.4.2 of this Prospectus for the profiles of our Directors and key management personnel respectively. Our senior management team has also spent a significant part of their careers at our Group, and thus has been instrumental in the growth and success of our business. Additionally, they each possess different functional expertise, and these complementary skills have been critical to the management efficiency of our Group. Our management team is equipped with the critical industry knowledge required to take advantage of market opportunities. formulate sound business strategies, assess and manage risks, and implement measures relating to management, operations and production, all of which are expected to increase our overall profit and maximise shareholder value. We also have senior management personnel who have or are currently sitting on the board of directors of several industry associations. The combination of our management and technical teams’ collective experience and knowledge of the construction industry, together with our highly qualified employees, have been, and will continue to be, a solid foundation to our success. Our Group will continue its rapid growth under the leadership of our key management team. 6. BUSINESS OF OUR GROUP (CONT’D) 6.4.8 We are well positioned to capture attractive opportunities in the construction industry in Malaysia and Singapore According to the IMR, the growth in the construction sector in Malaysia is underlined by its GOP value, where construction GOP has grown from approximately RM19.3 billion in 2009 to RM29.6 billion in 2013 at a CAGR of 11.3%, with its contribution to total national GOP having increased from 3.1 % to 3.8% in the same period. In terms of value of projects awarded, the construction industry is expected to grow from an estimated RM130.7 billion in 2013 to RM191.1 billion in 2017 at a CAGR of 10.0%, mainly spurred by government driven infrastructure projects under the Economic Transformation Programme such as the Klang Valley MRT Project, High Speed Rail Project and LRT extension projects. The growth in the infrastructure construction industry will be further driven by initiatives in Budget 2015 that was announced on 10 October 2014, where a total of approximately RM75.0 billion worth of infrastructure projects have been earmarked to commence in 2015, as follows: • Construction of the 59 km Sungai Besi -Ulu Klang Expressway at a total construction cost of RM5.3 billion;
• Construction of the 276 km West Coast Expressway from Taiping to Banting at a total construction cost of RM5.0 billion;
• Construction of the 47 km Oamansara -Shah Alam Highway at a total construction cost of RM4.2 billion;
• Construction of the 36 km Eastern Klang Valley Expressway at a total construction cost of RM1.6 billion;
• Construction of the 56 km Second MRT Line from Selayang to Putrajaya at an estimated cost of RM23.0 billion;
• Construction of LRT 3 Project, which will link Bandar Utama to Shah Alam and Klang, at an estimated cost of RM9.0 billion; and
• Construction of the 1,663 km Pan -Borneo Highway comprising 936 km in Sarawak and 727 km in Sabah at a total construction cost of RM27.0 billion.

Revisions to Budget 2015 saw the Malaysian government allocating additional funds to assist citizens that were affected by the recent floods that hit Malaysia in late 2014. These measures include: • The Government has provided an initial allocation of RM500.0 million for rehabilitation works and welfare programmes for flood victims. This is in addition to the existing allocation to the National Security Council, bringing the total to RM787.0 million; and
• Provision of RM893.0 million under Budget 2015 for flood mitigation projects.

6. BUSINESS OF OUR GROUP (eONT’O) In addition, the Malaysian government launched five economic corridors during the 9MP in an effort to promote balanced economic development throughout the country. These corridors, namely the East Coast Economic Region, Northern Corridor Economic Region, Iskandar Malaysia, the Sarawak Corridor of Renewable Energy and the Sabah Development Corridor, have attracted committed investments, including investments in infrastructure development, of approximately RM53.4 billion as of 2013, of which an estimated 50.0% have been realised. In May 2015, the Government tabled the 11 MP (2016 -2020) which outlined the nation’s development expenditure until 2020. Under the 11 MP, the construction sector is estimated to expand by 10.3% per annum during the l1MP period. This is attributed to continued civil engineering works and a growing residential subsector to fUlfil the demand for housing, particularly from the middle-income group. Demand for affordable housing by the low-income group will also remain favourable, which will be supported by several Government initiatives, such as Program Perumahan Rakyat 1Malaysia (“PR1MA”), Rumah Idaman Rakyat and Rumah Mesra Rakyat. Other subsectors such as civil engineering and non-residential will remain robust in line with the development of major projects such as the Tun Razak Exchange, KL118 Tower, RAPID and the Pan-Borneo Highway. The construction industry in Singapore, measured in terms of value of contracts awarded, grew from SGD22.5 billion in 2009 to SGD35.8 billion in 2013 at a CAGR of 12.3%. The Urban Redevelopment Authority of Singapore has introduced the Concept Plan 2011 and the Master Plan 2014 with aims to promote the social well-being and increase the standard of living in Singapore. Some of the identified projects under these plans include the Garden in a City project and the upgrading and construction of bus stops. In addition, the Healthcare 2020 Masterplan will continue to make healthcare more accessible to the citizens. More hospitals are in the midst of construction and are expected to commence operations within the next five years, including Ng Teng Fong General Hospital, Jurong Community Hospital and Sengkang General and Community Hospitals. The Singapore government also has plans to continue to invest heavily on land transportation to upgrade and enhance the transportation infrastructure. The Land Transport Authority intends to increase the country’s MRT network to 360 km by 2030, consisting of projects such as the Jurong Region line and Cross Island line as well as the Thomson line. Apart from that, there are also initiatives driven by the Singapore government to further develop the tourism industry in Singapore. The Singapore government through the Singapore Tourism Board aims to place emphasis in growing the tourism industry in Singapore. As such, it is expected that there will be greater focus on the development of new tourist destinations over the forecast period starting with the new Changi Terminal 4 airport. As a major player in the construction sector, we are well positioned to capture opportunities in the sector, and our growth is expected to grow in tandem with the growth in the construction industry. Our integrated model and diversified portfolio make us competitively placed to derive benefits from this growth which will drive the long term sustainability of our Group. 6. BUSINESS OF OUR GROUP (CONT’Dj 6.5 FUTURE PLANS AND BUSINESS STRATEGIES We aim to strengthen our position as a competitive and progressive total construction solutions provider. The following strategies will help us to leverage on our strengths to capture future growth opportunities in Malaysia and Singapore, enhance our core competitiveness and maintain our industry position in Malaysia and Singapore. 6.5.1 Continue to enhance our leading position and increase our market share in Malaysia’s construction industry According to the IMR Report, we are one of the largest construction companies in Malaysia, with a market share of 2.2% in 2013 based on the total value of projects awarded to our Group in the FYE 31 December 2013 versus the total value of projects awarded in the construclion sector during the same period. In 2013, the total value of conslruction projects awarded in Malaysia was registered at RM130.7 billion. During this same period, our Company was awarded projects amounting to RM2.9 billion, of which RM1.8 billion was secured from external customers and the remaining RM1.1 billion was secured from Sunway Group, and thereby garnered a market share of 2.2% in Malaysia. In the FYE 31 December 2014, we were awarded with RM758.3 million worth of projects in Malaysia. We plan to strengthen our leading position in Malaysia’s construction industry by ensuring steady growth of our operations in the construction of large scale and complex building and civil/infrastructure projects, and we aim to increase our overall share of the domestic market. According to the IMR, and as outlined in Section 6.4.8 of this Prospectus, the outlook of the construction sector in Malaysia remain strong, on the back of large government driven infrastructure projects including projects under the Economic Transformation Programme, initiatives announced in BUdget 2015 and the revised Budget 2015, as well as developments within the economic growth corridors. We intend to capture the opportunities created by these national development projects, expand our domestic market reach and select projects that generate higher profitability. The overall growth prospects in Malaysia will enable us to maintain strong growth and strengthen our leading position in the domestic building and infrastructure construction industry. We will continue our focus on the construction industry in Malaysia where our growth prospects appear promising in both the private and pUblic sectors on the back of the anticipated industry growth and announced construction projects. Specifically, we intend to focus on large scale and complex projects, which we believe will allow us to better deploy our design technology and provide integrated solutions across different phases of a project from project design to completion. We have achieved significant strides in the construction industry in Malaysia, where we have successfully completed several major landmark projects of varying complexities, and we are confident that we can leverage on this experience and successful track record to capitalise on the opportunities in the construction industry in Malaysia. 6. BUSINESS OF OUR GROUP (CONT’D) To increase our market share and presence, we will also be facilitated by fully utilising our construction techniques, taking advantage of economies of scale, using our capital effectively and procuring advanced equipment and facilities while improving our construction technology and consolidating our Group’s resources. Leveraging our advantages as an integrated construction company, we will continue to reinforce our leading position in the industry. 6.5.2 Maintain our presence in Singapore and expand our manufacture and sale of precast concrete business in Malaysia In Singapore, precast IBS components are widely used in the construction industry. As a result, our precast concrete business has primarily focused in Singapore, where we have been involved in supplying precast components for HOB and private sector projects. With future anticipated grow1h in the construction industry in Singapore, we are well positioned to maintain our overall business and market presence in Singapore. According to the IMR, the construction industry in Singapore is expected to remain robust, driven primarily by residential development. According to the IMR, residential development formed the largest proportion of construction activities in Singapore at 45.0% in 2013. This is due to the growing demand for residential development which has not been adequately met due to limited land space available in the country. Public residential development, more commonly known as HOB condominiums, is generally more popular amongst residents in Singapore as compared to private residential development, housing approximately 80.0% of the population in Singapore. This is reflected in the strong grow1h in the residential development sector in Singapore, which increased from SG06.7 billion in 2009 to SG016.1 billion in 2013 at a CAGR of 24.5%, based on value of contracts awarded. To steer the precast industry towards raising productivity, Singapore’s Building and Construction Authority (“BCA”) developed a masterplan for the development of multi­storey and higher density Integrated Construction and Prefabrication Hubs (“ICPHs”) with priority given to ICPH investors to secure land with 3D-year lease term. Besides housing production and storage of precast concrete components, these ICPHs could be used for other suitable construction-related activities, such as prefabrication of components, storage and maintenance of formwork, storage and maintenance of construction plant, equipment and machinery, foreign workers dormitory, etc. Unique to Singapore, the ICPH is a highly-automated, multi-storey factory for producing precast concrete building elements such as staircases, plus volumetric modules such as bathrooms. This is part of BCA’s initiative to introduce highly productive technology and mechanism into the construction industry. We have not decided whether we will invest to set up an ICPH in Singapore. If we do invest in the ICPH, it will solidify our position in the Singapore precast market with our increased efficiency and automation. However, even if we do not invest in the ICPH and is unable to renew our lease and secure a premise in Singapore, we will be able to supply to our customers in Singapore from our plants in Senai and/or our soon to be established plant in Sunway Iskandar. 6. BUSINESS OF OUR GROUP (CONT’D) We also intend to grow our precast concrete business in Malaysia. With our track record and experience in precast ISS in Singapore, we intend to expand our presence in Malaysia by leveraging on the growth in the precast concrete market. We intend to expand our precast concrete operations to Sunway Iskandar in 2015, where we will be establishing a precast concrete production plant with nine production lines and total annual capacity of 93,150 m’-The construction of this plant will be carried out in two phases, where the first phase consisting of four production lines is targeted to commence commercial operations by February 2016 and have an annual production capacity of 41,400 m’. The second phase of construction will equip this plant with the remaining five production lines with an annual production capacity of 51,750 m’ and is targeted for commercial operations by August 2016. We intend to manufacture facades, parapets, air­conditioner ledges, walls, refuse chutes, service ducts, roof fascias, non-prestressed planks, beams, columns, and household shelters in this plant. According to the IMR, the industry size for concrete products in Malaysia, based on estimated production volume, increased from 30.7 million MT in 2005 to 33.8 million MT in 2013 and SUbsequently 35.4 million MT in 2014, and is expected to grow to 39.1 million MT in 2017, with precast concrete products accounting for an average of approximately 23.7% annually of total concrete products. The IMR further expects the percentage contribution of precast concrete products to total concrete products to grow further as end-users become more aware of the advantages it holds over concrete. Moving forward, we intend to leverage on our experience built from our successful ISS business in Singapore for further penetration into the domestic ISS market. In addition, we also plan to promote the use of ISS components to projects planned by the property division of our holding company, Sunway. The expansion of our precast business in Malaysia and Singapore will continue to enhance our Group earnings. Capitalising on 20 years of precast concrete experience, specifically in IBS components, we are strategically poised to gain further inroads into the precast market and strengthen our position as a major precast concrete industry player. 6.5.3 Expand our external income from foundation and geotechnical engineering services, and mechanical, electrical and plumbing services, to enhance our Group’s revenue streams Our foundation and geotechnical engineering services accounted for approximately 14.8% of our Group’s totai revenue in the FYE 31 December 2014. Our mechanical, electrical and plumbing services accounted for approximately 16.2% of our Group’s total revenue in the FYE 31 December 2014 While we have historically bundled our foundation and geotechnical engineering services; and mechanical, electrical and plumbing services, with our building and civil/infrastructure construction services to ensure that our clients benefit from engaging an integrated construction solutions provider, we also provide these as standalone services to external customers. As a result, these businesses generate revenues and profits independently, and have developed their own market presence in the construction industry. Evidence of our market presence include our respective Grade ‘7’ licenses from CIDB for Sunway Geotechnics (M) and Sunway Engineering, the awards received by Sunway Geotechnics (M) and Sunway Engineering from various parties as listed in Secljon 6.2.2, as well as ISO certification obtained by Sunway Engineering. In addition, Sunway Geotechnics (M), by itself, has an outstanding order book of RM254.2 million as at 31 December 2014, which proves its ability to secure contracts on its own. 6. BUSINESS OF OUR GROUP (CONT’D) We intend to expand within the foundation and geotechnical engineering seNices, and mechanical, electrical and plumbing seNices market segments by offering more standalone seNices to external customers. We expect opportunities to continue to emerge throughout Malaysia as a result of the continued growth in the construction sector, and we shall strive to increase our Group’s revenue from these seNices by active bidding for opportunities in these segments. In the foundation and geotechnical engineering seNices business segment, we intend to focus our efforts on large building and civil/infrastructure construction services projects, where we will be able to leverage on our in-house technical expertise as well as capitalise on our large fleet of 22 boring rigs and other foundation and geotechnical engineering seNices machinery and equipment. As for the mechanical, electrical and plumbing seNices business segment, we plan to focus on purpose-built or specialty projects for external income, such as purpose-built CUFs. We will leverage on the experience and credentials gained from our successfully completed projects including the PutraJaya Gas District Cooling Plant and Bio-XCell Central Utility Facility, where we utilised our specialist engineering skills in the design and construction of chilled water systems, industrial wastewater treatment and industrial steam generation systems. We will leverage on our capabilities and internal resources to expand our presence in these markets, and build upon our track record and industry reputation to secure new and more technically complex projects. By increasing our tendering activities in the foundation and geotechnical engineering seNices, and mechanical, electrical and plumbing seNices market segments, we will be in a position to further enhance our Group’s overall revenue and profitability. 6.5.4 Increase our use of technology and automation efforts to further improve our core competitiveness The core design technology that we use, namely the VOC, which is a combination of third-party software tools, will facilitate our ability to produce innovative designs and construction solutions, thereby meeting the demand of the construction sector and ensuring the continued development of our Group. The benefits of VOC includes 3D model visualisation of the building or structure, which becomes 40 when project scheduling is integrated, and becomes 50 with the integration of cost elements into the model. Please refer to Section 6.15 of this Prospectus for details on VOC. We have successfully incorporated the 3D facet of VOC in our operations and have delivered several design and build projects such as Sunway Pinnacle, Sunway Pyramid Phase 3 and Sunway Velocity Phase 2 using 3D VOC. We are presently studying the application and deployment of 40 and 50 in our construction operations for implementation in 2015 The successful deployment of 40 and 50 VOC will thrust our Group into more advanced levels of operational efficiencies 6. BUSINESS OF OUR GROUP (CONT’Dj Additionally, we also intend to intensify automation in our precast concrete business, specifically to study the adoption of automation of plant processes to increase productivity and optimise cost. In June 2010, the Government of Singapore announced an allocation of SGD250.0 million via the SCA Construction Productivity and Capability Fund to incentivise the mechanisation, upgrading of workforce skill level and capacity building of construction firms. We have previously leveraged SGD159,000 on this fund to increase plant automation and mechanisation. Moving forward, we expect to continue to improve the productivity and efficiencies in our precast concrete business by using internally generated funds. 6.5.5 Selectively pursue growth opportunities overseas and enter new markets Our operations are primarily focused in Malaysia, contributing approximately 84.7%, 84.4% and 86.4% of our Group’s revenue in the FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014 respectively. Our secondary market is Singapore which accounted for approximately 13.9%, 14.6% and 13.6% of our revenue in the FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014 respectively. We will continually analyse demographic and other economic data to determine the regions and products in which we could most profitably expand our operations. We intend to progressively develop our market presence regionally in Southeast Asia, in both building and civil/infrastructure construction services. Our membership in the ASEAN Constructors Federation allows us open dialogues with our construction industry counterparts in the ASEAN countries to keep abreast of opportunities that are available in these markets. The construction industry in Southeast Asia is expected to witness growth in the coming years on the back of significant public investments in large-scale transportation infrastructure construction projects, private sector investment and overall economic development. We will also continue to selectively expand our presence in the Middle East, in particular UAE Our past international track record of successfully delivering projects in UAE and India will serve as strong testimonies of our capabilities as an integrated construction industry player and allow us to compete effectively for projects overseas. In particular, we will continue to work closely with our overseas project partners, with whom we have successfully delivered projects in the past, to explore and pursue opportunities in these markets. 6.5.6 Enhance profitability through effective, ongoing cost reduction initiatives We plan to further increase our profitability through the following ongoing cost reduction initiatives: • Improving cost structure from continued focus on technology upgrade and maintenance programs: We intend to continue to focus on improving and upgrading our operating facilities and technologies and streamlining our operational processes to achieve savings in design cost, construction cost, repair and maintenance costs, and other relevant operating costs. 6. BUSINESS OF OUR GROUP (CONT’D) • Minimising exposure to raw material price volatility through various measures: To minimise our exposure to raw material price volatility, we plan to proactively seek ways to secure stable supply of raw materials as well as manage rising costs. We may enter into favourable supply contracts for key raw materials with certain suppliers that offer acceptable prices as well as leverage on bulk purchases.
• Improving capital structure to reduce financing cost: Upon our Listing, we will have direct access to the capital market, which will facilitate our efforts to continually improve our capital structure to fund our operations and capital investments in order to achieve additional cost efficiency and financial flexibility.
• Improving overall efficiency and productivity through TOM: Our Group-wide TOM initiative, focusing on quality, safety, health and the environment will help us drive and improve efficiencies and productivity over the long·term, with the overall aim of enhancing our margins.

6.6 PRINCIPAL MARKETS Our Group’s revenue by business segment and geographical is disclosed in Sections 11.2.2(I)(a) and 11.2.2(i)(c) of this Prospectus respectively. 6.7 MAJOR CUSTOMERS Our major customers (being those contributing more than 10% of our total revenue) for the FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014 were Putrajaya Holdings Sdn Bhd, IDR Assets Sdn Bhd, Iskandar Malaysia Studios Sdn Bhd, Syarikat Prasarana Negara Berhad and MMC Gamuda KVMRT (PDP) Sdn Bhd. Our Group was engaged by these customers for the delivery of building and civil/infrastructure construction services projects In Malaysia, where specifically over the FYE 31 December 2012, FYE 31 December 2013, FYE 31 December 2014, we were involved in the follOWing projects: • Putrajaya Holdings Sdn Bhd -building construction services for The Everly Hotel Putrajaya, and civil/infrastructure construction services for Putrajaya Precinct 7 and Precinct 8;
• IDR Assets Sdn Bhd -building and civil/infrastructure construction services for Legoland Malaysia Theme Park Package 4 and Legoland Water Theme Park in Pulai, Johor;
• Iskandar Malaysia Studios Sdn Bhd -building and civil/infrastructure construction services as well as mechanical and electrical works for Pinewood Iskandar Malaysia Studios in Pu/ai, Johor;
• Syarikat Prasarana Negara Berhad -civil/infrastructure construction services for LRT Package B (Kelana Jaya Line Extension) and Package A piling works (Kelana Jaya Line Extension), and BRT -Sunway Line; and

6. BUSINESS OF OUR GROUP (CONT’D) • MMC Gamuda KVMRT (PDP) Sdn Bhd -civil/infrastructure construction services for Klang Valley MRT Package V4, viaduct gUideway and associated works from Section 17 Petaling Jaya to Semantan Portal. The fluctuation in the percentages of revenue contribution amongst our customers varies from year to year as a result of the nature of our business being conducted on a project basis. We may not secure similar projects in terms of size and scope with the same customer every year. We are not dependent on these customers as we have a wide customer base with whom we have established close business relationships. Besides the major customers mentioned above and the Sunway Group, our Group’s construction services business had 18 other local customers comprising government-linked companies and private clients. In total, the major customers mentioned above, 18 other local customers and Sunway Group contributed to 100% of the revenue of our construction services business in Malaysia in the FYE 31 December 2014. Further, our Group’s precast concrete business had 26 customers, all of whom are foreign private clients that contributed to 13.5% of the revenue of our precast concrete business in Singapore for the FYE 31 December 2014. These 18 other local customers of our construction services business and 26 customers of our precast concrete business are all external clients (i.e. not part of Sunway Group) and also exclude clients that have been named in the table below as our major customers. Collectively for our construction services and precast concrete businesses, we have had an average length of relationship of between four and five years with these customers. The following are the revenue contributions from our major customers:
Putrajaya Holdings > 10 years Sdn Bhd IDR Assets Sdn Bhd 5 years Iskandar Malaysia 4 years Studios Sdn Bhd Syarikat Prasarana 4 years Negara Berhad MMC Gamuda 3 years KVMRT (PDP) Sdn Bhd 147,422 183,452 109,984 81,658 25,9j 10.1 12.6 7.6 56 1.8 22,882 60,525 186,249 281,453 154,377 1.2 6,582 0.3 3.3 10.1 34,892 19 153 420,741 22.4 210,269 11.28.4 L~
6. BUSINESS OF OUR GROUP (CONT’D) 6.8 MAJOR SUPPLIERS We do not have major suppliers (being those contributing more than 10% of our total purchases) for the FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014 respectively. Our Group’s purchases from our suppliers vary from year to year depending on the specific requirements of our projects. Our usual practice is to accept quotes and tenders from several suppliers and engage the services of those who are able to meet the project time schedule and can consistently provide favourable terms with regard to the quality of materials and services provided, reliability of service, and purchase terms and conditions. 6.9 TYPES, SOURCES AND AVAILABILITY OF RAW MATERIALS Our purchases comprise expenditure on raw materials, including building materials used for our business. The principal building materials we use are steel bars and ready-mixed concrete that comprised 42.2% and 26.0% respectively of our total purchases of raw materials for the FYE 31 December 2014. The principal raw materials we use are generally widely available and sourced from local suppliers. The prices of our raw materials such as steel, cement and concrete are subject to price fluctuations as a result of demand and supply conditions. We generally purchase raw materials on a project or per purchase order basis. Our suppliers may grant us credit terms of up to three months. Additionally, we engage our subcontractors for various labour-intensive works and specialist trade works as well as hire of plant and machinery. Although our Group is supported by a large fleet of machinery and equipment, it remains insufficient to meet our Group’s total requirements, and as such, a substantial part of our Group’s machinery and equipment needs are rented/leased from external third parties when required. The amount that we incur for third party machinery and equipment rental/lease fluctuates depending on the number of projects we have in progress. This is part of our management’s deliberate strategy to ensure maximum utilisation of our own machinery and equipment to ensure that our Group is not burdened with carrying idle machinery and equipment in the event of a reduction in projects. However, for strategic reasons, our Group owns specialist machinery such as launch girders to ensure timely completion of projects. Please refer to Section 11.2.1 (ii) of this Prospectus for further details on our costs. We have developed stringent policies and procedures that guide our selection of subcontractors and suppliers. All selected subcontractors and suppliers are evaluated in terms of financial performance, production capacities, ability to deliver products that meet our quality requirement, and ability to deliver in a timely manner. We will appoint experienced subcontractors and suppliers that are reliable and financially secure to ensure the quality of services that we deliver to our customers. We maintain long term relationships with most of our suppliers. Company Number: 1108506-W ] 6. BUSINESS OF OUR GROUP (CONT’D) The following are the major types of raw materials purchased by our Group:
Note: ‘Others’ include steel mesh, cement, walcrete, sUNey equipment, pipe and fittings, hardware, form work/form tiel scaffolding, precast concrete components and moulds. 115 6. BUSINESS OF OUR GROUP (CONT’O) 6.10 PROCESS FLOW OF SERVICE DELIVERY (i) Building and Civil/Infrastructure Construction Services The main activities that take place when we offer our building and civillinfrastructure construction services for commercial and infrastructure development projects are: (a) Tenders We participate in tenders either via direct or indirect invitations, where indirect invitations refer to tender postings in the media. In selected cases, we are required to complete a pre-qualification exercise before participating in the tender exercise. Our tender department is responsible for preparing the proposal and costing for the tender, and will collaborate with other departments in our Group in completing the submission. The completed proposal and tender documents will be approved by our Managing Director before submission to the client. We may be invited by the client to present our proposal, or provide clarification on technical details or commercial terms. If we are successful and our proposal is accepted by the client, in most cases the client will present us with a letter of award prior to signing of a contract. (b) Pre-construction
A project manager is assigned to each project, and will be responsible for assembling a project team to oversee the management and implementation of all aspects of the project, such as construction works, quality control, safety, health and environment, time management and project costing. In the pre-construction phase, detailed planning activities will be carried out to ensure successful delivery of the project, and our planning activities are project design, preparation of project plan, project budget, quality plan, construction methodology and resource requirement. The project team is responsible for submitting and procuring the relevant approvals and permits from local authorities. Our project team will mobilise a team on-site and be based on-site throughout the construction period.
(c) Procurement

Our procurement team is responsible for sourcing quotations from our pre­approved suppliers, and upon identification of the supplier(s) that meets our cost and quality requirements, will issue purchasing documents with details of required materials. Our supply chain and contracts management team is also responsible for sourcing and appointing subcontractors that meet our cost and quality requirements from our list of pre-approved subcontractors to provide services such as the supply of labour, supply and installation of materials, machinery and equipment, and specialised trade services. This team is also responsible for carrying our periodical audits and assessments on our current and potential suppliers and subcontractors for inclusion in our approved supplier and subcontractor list. 6. BUSINESS OF OUR GROUP (CONT’D) (d) Construction Works We will commence construction work once we have obtained the required approvals from local authorities. Our project team will act as site administrators throughout the construction works phase. During the construction works phase, we carry out activities including foundation and geotechnical engineering, construction and installation works, site meetings and daily safety, health and environmental briefings, requisition of construction materials, handling of construction materials, coordination with subcontractors, inspection, testing and commissioning, and maintenance and servicing of equipment and machinery. (e) Post Construction Our team will carry out final inspection, testing and commissioning at the end of construction works and prior to demobilising resources from the construction site. The project manager is responsible for assembling final project documentation such as project costing, blueprints, and operations and maintenance manuals where a complete set of project documents will be presented to the client during the handover stage. In the event that defects are detected during the defects liability period, we will immediately assign a team to investigate and rectify the issue. . ……_——-­~-::~irectinVjtatlon [ Oirect invltali9n ~BJticip;rle? Direct nlilgOtiellon Successful? Withdraw _~

 

6. BUSINESS OF OUR GROUP (CONT’D) (ii) Manufacturing of Precast Concrete Products Precast concrete is produced by casting concrete in a steel mould, which is then cured in an offsite controlled environment, transported to the construction site and lifted into place (a) Mould Preparation and Reinforcement We check the base mould for level and flatness before assembling the mould for panel casting. Our quality control/production team will ensure that the dimensions of the mould are within the specified tolerances. The mould is inspected and cleaned to be free from debris prior to the application of form oil or mould release agent over the mould surface. Our team will ensure that all joints and edges of the mould, bolts, stoppers, tie rods, side props and rubber seals are intact and properly secure. The mould is then reinforced using rebars, wire mesh or prestressing strands, and where necessary, we use wires to secure these reinforcements. A final inspection is carried out before casting, where we check and verify that all details comply with drawings. (b) Concrete Slump Test
A concrete slump test is carried out to assess the workability of the concrete mix before pouring the concrete into the mould.
(c) Casting
Concrete is cast in the mould and compacted within the mould using an internal poker or external vibration to eliminate potential flaws such as air pockets. Test cubes of precast concretes are performed on fresh, hardened or old concrete to assess its strength, and must be performed before demoulding.
(d) Demoulding
The resultant stiffened concrete is lifted from the mould after it achieves the targeted strength and its surface has hardened sufficiently. The concrete will then undergo curing. Curing extends the hydration of cement which continues to strengthen the concrete.
(e) Quality Control Inspection
The finished product is inspected for dimension, protruding bars and connection detail. Product identification is done by way of barcoding, which contains pertinent information such as our company name, panel marking, casting date and project name.
(f) Storage

The final end-products are stored at the adjacent storage while awaiting delivery to our customer’s premises or the construction site. 6. BUSINESS OF OUR GROUP (CONT’D) (9) Pre-delivery and Final Quality Control Inspection
We carry out pre-delivery and final quality control inspection on the products prior to delivery to ensure the finished products are free from defects and meet our clients’ specifications. At this phase, all finished precast concrete components undergo a final inspection for dimension, protruding bars and connection detail based on approved shop drawings.
(h) Delivery

Finished products are delivered to our customer’s premises or to construction sites based on delivery instructions provided by our clients. We leverage on our barcoding system to generate delivery orders for our customers. Mould preparation and relnfotcement

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6. BUSINESS OF OUR GROUP (CONT’D) 6.11 PRODUCTION CAPACITY AND UTILISATION RATES We operate precast concrete manufacturing plants for the manufacturing of various precast concrete components including household shelters, architectural facades, prefabricated toilets, lift wells and covers, roof fascia, precast walis and columns, and precast beams. As at the LPD, the details of our precast concrete plants are as follows:
Our production capacities, actual production volumes and utilisation rates for the FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014 respectively are as depicted below:
Senai, Johor, Malaysia(1}  FYE 31 December 2012  62,000(2)  2,411  3.9  FYE 31 December 2013  62,000(2)  16,983  27.4  FYE 31 December 2014  65,600(3)  25,993  39.6  Tampines, Singapore  FYE 31 December 2012  145,000(4)  105,515  72.8  FYE 31 December 2013  145,000(4)  92,878  64.1
124,000(5)I FYE 31 December 2014 90,673 73.1 Maximum average annual capacity assumptions: (1) Plant commenced commercial operations in October 2012.
(2) Based on six production lines casting an estimated 34.5 m3 fer line per day over 300 working days.
(3) Based on SIX productIOn Imes caslmg an estimated 345 m’ per tme per day over 300 workmg days and three production Jines casting an estimated 16.1 m 3 p~r fine per day over 75 warning days.
(4) Based on 14 production lines casting an estimated 34.5 m’ per line per day over 300 working days.
(5) Based on 12 production lines casting an estimated 34.5 m per line per day over 300 working days

36. BUSINESS OF OUR GROUP (CONT’D) We have expanded Dur precast cDncrete manufacturing capacity in Senai, JDhor, through the instaliatiDn Df an additiDnal three prDductiDn lines that cDmmenced cDmmercial DperatiDns in OctDber 2014. This is expected tD raise the maximum average annual capacity fDr this plant tD approximately 76,000 m 3 in the FYE 31 December 2015. These additiDnal three lines in Dur precast CDncrete plant in Sen ai, JDhDr, have replaced the Tampines plant in the prDductiDn Df selected prDducts. Our plants in Senai and Tampines are intended tD manufacture different precast cDncrete compDnents. HDwever, depending Dn demand, Dur plants in Senai and Tampines may manufacture similar prDducts. We are expanding Dur precast CDncrete DperatiDns tD Sunway Iskandar in 2015, where we will be establishing a precast cDncrete productiDn plant with nine prDductiDn lines and total annual capacity Df 93, 150 m3. The cDnstructiDn Df this plant will be carried DUt in twD phases, where the first phase cDnsisting Df fDur prDductiDn lines is targeted tD commence cDmmercial DperatiDns by 3February 2016 and have an annual productiDn capacity Df 41,400 m . The secDnd phase Df cDnstructiDn will equip this plant with the remaining five prDductiDn lines with an annual prDductiDn capacity Df 51,750 m3 and is targeted fDr cDmmercial operatiDns by August 2016. We intend tD manufacture facades, parapets, air-cDnditiDner ledges, walls, refuse chutes, service ducts, rDof fascias, nDn-prestressed planks, beams, cDlumns, and hDUSehDld shelters in this plant. 6.12 QUALITY ASSURANCE MANAGEMENT Our GrDup places strong emphasis Dn quality management tD ensure that the quality Df Dur prDjects cDmply with relevant regulatiDns and tD maintain Dur reputatiDn and market standing. In 2009, we develDped and implemented an internal integrated management system, the QESH Management System tD Dptimise reSDurces and standardise prDcesses thrDughDut our Drganisation fDr bDth dDmestic and Dverseas prDjects. Our Quality, Environmental, Safety and Health Management System meets the requirements Df internatiDnal standards, and thus Dur GrDup’s prDducts and services are well defined at every stage of cDnstructiDn in terms Df quality, environmental, safety and health requirements. We adDpted the Kaizen philDsDphy Df innDvatiDn and efficiency in 2007 which allDwed us tD adDpt advanced technDIDgies in our DperatiDns, such as in the system fDrmwDrk technDIDgy that enhances prDductivity and efficiency. In January 2010, Dur GrDup piloted an internal TQM initiative, which fDcuses Dn priDritising quality, safety, health and the envirDnment in Dur business. In 2014, we fDrmalised and implemented TQM initiatives in Dur DperatiDns. TD ensure the quality Df Dur cDnstructiDn prDjects, Dur Group ensures that Dur subcDntractDrs, technical cDnsultants and Dther building prDfessiDnals have the relevant experience and prDven track recDrds. FDr Dur cDnstructiDn prDjects, at each stage Df the cDnstructiDn up tD project hand­Dver, we cDnduct regular inspectiDns tD ensure that each stage is cDnstructed accDrding tD the specificatiDns and the prescribed prDcedures and methDds. 6. BUSINESS OF OUR GROUP (CONT’D) As a testament to our quality commitment, we, via our subsidiaries SunCon, Sunway Builders, Sunway Geotechnics (M), Sunway Innopave, Sunway Engineering and Sunway Concrete Products (S), have been awarded the following IS09001 :2008 certifications:
1997 13 July 2012­25 June 2015 2009 1 September 2012 ­2 September 2015 Sunway Builders 2009 1 September 2012 ­2 September 2015 Sunway Geotechnics (M) 2015 16 February 2015 ­15 February 2018 Sunway Innopave 2009 1 September 2012­2 September 2015 Sunway Engineering 2011 21 December 2014­20 December 2017 IS09001 :2008 IS09001 :2008 IS09001 :2008 IS09001 :2008 IS09001 :2008 IS09001 :2008 Sunway Concrete Products (5)  2000  12 November  IS09001 :2008  2013­ 11 November  2016  Sunway Precast Industries  2014  30 October  IS09001 :2008  014­ ~29 October 2017
Provision of design management and construction services for building and civil engineering works Provision of design management and construction services for building and civil engineering works Provision of design management and construction services for building and civil engineering works Provision of design management and construction services for geotechnical engineering works Provision of design management and construction services for building and civil engineering works Provision of design management and construction services for mechanical, electrical and information technology engineering works Design, production and supply of precast components Production and supply of precast components SIRIM QAS International Sdn Bhd Bureau Veritas Certification (Malaysia) Sdn Bhd Bureau Veritas Certification (Malaysia) Sdn Bhd SIRIM QAS International Sdn Bhd Bureau Veritas Certification (Malaysia) Sdn Bhd Bureau Veritas Certification (Malaysia) Sdn Bhd TUV SUD PBS Pte Ltd Guardian Independent Certification Pte Ltd -.J 6. BUSINESS OF OUR GROUP (CONT’D) Additionally, our precast concrete business has also secured the following industry accreditations:

Sunway Concrete Products (S) 2010  22 September 2014 ­21 September 2015  2011  11 December 2013 ­30 March 2017
Sunway Precast Industries 2014 20 September 2014­30 June 2016 Precaster Accreditation Scheme RMCC SS EN 206-1 :2009, SS544: Part 1 and 2:2009, and SAC CT 06:2011 RMCC SS EN 206-1 :2009, SS544: Part 1 and 2:2009, and SAC CT 06:2014 Category PC 1  Singapore Concrete Institute  Ready-mixed concrete products  TUV SUD PBS Pte Ltd  Ready-mixed concrete products  Guardian Independent Certification Pte Ltd
Our team is strengthened by BeA Green Mark Managers and LEED accredited professionals. 6.13 OCCUPATIONAL SAFETY, HEALTH AND ENVIRONMENT Our Group is committed to complying with all relevant occupational safety, health and environmental requirements. In our continuous effort towards system improvement, we commenced with the implementation of a structured safety, health and environmental management system in. We have to-date, been certified by SIRIM OAS International Sdn Bhd and 10 Net for OHSAS 18001 and IS014001, where the details of our certification are as follows: Year first Cllrr~l’It”alidity ‘achieved period Certification Scope
SunCon 2001 2009 11 September 2013 ­10 September 2016 29 August 2012 ­13 August 2015 OHSAS 18001:2007 ISO 14001 :2004 Provision of construction services for building and civil engineering works (excluding works undertaken by subsidiaries of Sunway Construction Sdn Bhd) Provision of design management and construction services for building and engineering works SIRIM QAS International Sdn Bhd and IQ Net SIRIM QAS International Sdn Bhd and IQ Net in Singapore.  Year first :).achiev~if;t·  Current validityp:eriod  Sunway Concrete Products (S)  2010  15 July 2013 ­ bizSAFE  Level  Not applicable  7 July 2016  Star
6. BUSINESS OF OUR GROUP (CONT’D)
Sunway Geotechnics (M) 2015 16 February IS014001 :2004 Provision of design management SIRIM QAS 2015 -and construction services for International 15 February geotechnical engineering works Sdn Bhd 2018 2015 16 February IS018001 :2007 Provision of design management SIRIM QAS 2015 -and construction services for International 15 February geotechnical engineering works Sdn Bhd 2018 Sunway Engineering 2011 21 December IS014001 :2004 Provision of design management Bureau 2014-and construction services for Veritas 20 December mechanical, electrical and Certification 2017 information technology engineering (Malaysia) works Sdn Bhd Sunway Concrete Products (S) 2009 8 October OHSAS Design, production and supply of TUV SUD 2012 -18001 :2007 precast components PBS Pte Ltd 7 October 2015 2012 7 February ISO Design, production and supply of TUV SUD 2015 -14001 :2004 precast components PBS Pte Ltd 6 February 2018 Additionally, our precast concrete business has also secured the bizSAFE Level Star certification 6. BUSINESS OF OUR GROUP (CONT’Oj The nature of our operations creates inevitable risks and hazards, not only to those who work with these risks, but also to the public. We also generate air pollution, noise, hazardous materials, polluted water and solid wastes, which are common byproducts of our processes. To ensure that the safety and health aspects of all parties and the sustainability of the environment is safeguarded, we are subject to relevant iaws and regulations in Malaysia on occupational safety, health and environmental protection, including, but not limited to, Factory and Machinery Act 1967, Environmental Quality Act 1974 and Occupational Safety and Health Act 1994. Our Group is committed to complying with these relevant laws and regulations in Malaysia on occupational safety, health and environmental protection. As such, we have established an Environmental, Safety and Health Centre of Excellence based at our head office with officers located in both our head office and on all project sites, who are responsible for: • advising, establishing, evaluating, monitoring, enforcing policies and procedures to ensure the Group’s operations are in compliance with all local legislation with regards to environmental, safety and health;
• reviewing, standardising and implementing environmental, safety and health management systems within the Group;
• supervising and examining safety and health control measures for all construction activities carried out by our Group and subcontractors engaged by our Group;
• monitoring compliance with statutory environmental protection laws relating to air, water, noise and solid waste pollution;
• regulating labour, hygiene and safety conditions; and
• monitoring the Group’s environmental, safety and health performance.

We impose safety measures at all stages of our operations in order to minimise the possibility of work-related accidents and injuries. As a responsible contractor, we also strive to ensure that the safety of the public is protected through prudent considerations and decisions during the implementation of safety measures. We also conduct extensive environmental monitoring to ensure that the sustainability of Ihe environment is well preserved despite the nature of our activities at the project site. To top it up, we conduct regular internal safety and environmental inspections to ensure that all environmental, safety and health practices and implementations at project sites are aligned with our Group’s policy, procedures, objectives and targets. We also monitor the safety and environmental protection practices of our subcontractors’ operations as we value them as our business partners. We believe that safe practices are essential in ensuring employee safety, and thus we conduct regular safety training sessions and provide safety education for all our employees. We have established safety standards in connection with matters such as purchasing, installation and operation of new equipment and machineries, construction of new facilities and the renovation of existing facilities. We invest in training our employees that are involved with formulating and implementing measures to comply with occupational health, safety and environmental protection issues, and assist such personnel in attaining certificates to ensure they are qualified and have the appropriate expertise 10 handle such matters. 6. BUSINESS OF OUR GROUP (CONT’D) In 2009, we developed and implemented our integrated QESH management system known as QESH Policy. Our QESH Policy aims to: • strive towards zero life loss at all work sites;
• achieve monthly inspection score of 75% and above;
• achieve three milestones of 3.9 million, 7.0 million and 10.0 million man-hours without lost­time incidents company-wide; and
• to prevent environmental pollution, managing construction waste and conserving resources through systematic environmental aspects and impacts evaluation, implementing operational controls and trainings.

For the FYE 31 December 2014, we had the following results under the QESH Policy: • two lives lost;
• OSH monthly inspection score of approximately 78%;
• approximately 4.9 million man-hours without lost-time incidents;
• zero compound and fines from the relevant authorities;
• environmental monthly inspection score of approximately 71 %; and
• implemented segregation of construction waste at designated areas continually at all prOject sites and successfully conducted annual “Reuse, Reduce and Recycle” campaign at project sites and head office.

The QESH Policy allows our Group to optimise resources and standardise processes throughout our Group for implementation in both local and overseas projects, and defines our products and services at every stage of construction in terms of environmental, safety and health requirements, in order to better satisfy the requirements and expectations of our customers. As a result of the implementation of a structured and integrated quality environmental, safety and health management system, and our initiative towards continuous improvement, our Group was able to achieve the following milestones: • Achieved 5 Star Ratings for Safety and Health Assessment System in Construction championed by CIDS for project Klang Valley MRT Package V4, viaduct guideway and associated works from Section 17 Petaling Jaya to Semantan Portal, in 2014;
• Achieved 4 Star Ratings for Safety and Health Assessment System in Construction for various projects including Parcel 7 and 8 Phase 2 Package A, Putrajaya, and The Everly Hotel Putrajaya in 2011;

6. BUSINESS OF OUR GROUP (CONT’D) • MSOSH Gold Class II Award 2009 for project Parcel 17, Ministry of Housing and Local Government and Ministry of Women, Family and Community Development, Putrajaya; and
• National Occupational Safety and Health Excellence Award 2005.

6.14 R&D In 2009, we commenced R&D studies to adopt the VDC technology, a computer-aided design and modelling tool that covers all aspects of design, build and project management. The VDC, comprising third -party BIM and IPD software tools, enables the integration of design, schedUling, estimation and fabrication processes. We have relied on the VDC technology to deliver Sunway Pinnacle and Sunway Pyramid Phase 3 in Bandar Sunway, Sunway Velocity Shopping Mall in Kuala Lumpur, and The Everly Hotel Putrajaya. We also leverage on VDC for the fabrication of precast reinforced concrete structures. Our Group invested approximately RM4.5 million, RM5.0 million and RM6.2 million on R&D which formed 0.3% of our revenue for each of the FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014 respectively. This was primarily invested in the development and adoption of VDC in our construction operations. Notwithstanding this, our Group has invested a total of RM28.2 million from FYE 31 December 2010 to FYE 31 December 2014 on salaries, staff-related expenses, information technology software and hardware cost and consultancy costs to establish our VDC team and operations. Our VDC team is presently in the midst of the R&D of 4D and 5D integration into our construction operations to enhance project delivery management, through ensuring faster delivery, cost­effective procurement and reducing project risks. The use of VDC will contribute to shorter construction period for projects, and thus contribute to cost savings on labour. While this time saving is presently still marginal, greater savings can be anticipated when VDC is sufficiently developed over a longer period of time. As the adoption of VDC is still presently in its infancy and awareness of its benefits have yet to be fully appreciated by the market, we thereby do not impose a premium for the deployment of VDC in our existing projects. However, we believe that the use of VDC will provide our Group with an advantage when tendering for new contracts as the awareness and adoption of VDC develops progressively. We believe this is possible as presently certain clients are mandating the adoption of BIM as a pre-requisite, and BIM is an essential component ofVDC. Please refer to Section 6.15 for a detailed description of VDC. We are also intensifying R&D in our precast business where we can study the adoption of automation of plant processes to increase productivity and optimise cost. In June 2010, the Government of Singapore announced an allocation of SGD250 million via the BCA Construction Productivity and Capability Fund to incentivise the mechanisation, upgrading of workforce skill level and capacity building of construction firms. We have previously leveraged SGD159,000 on this fund to increase plant automation. and mechanisation. Moving forward, we expect to continue to improve the productivity and efficiencies in our precast concrete business by using internally generated funds. 6. BUSINESS OF OUR GROUP (CONT’D) We recognise the importance of R&D to ensure we remain competitive and sustain our continuous growth. Our key ongoing and future R&D projects are as follows:
Ongoing R&D projects  Sunway Velocity Shopping  To ensure faster delivery, cost­ 2013  December 2015  Mall  -Integration  of 40  effective  procurement  and  and  50  VDC  into  our  reduce project risks  construction operations  Sunway  Medical  Centre  Mechanical,  eiectrical  and  2013  December 2015  (Cancer Centre)  plumbing automated computer  aided manufacturing from 3D  model  for  ACMV  duct  fabrication  to  increase  work  productivity  and  reduce  wastage  Future R&D projects  Automation of precast plant  To  lower labour and  material  2016  2017  processes  cost to improve work efficiency
6.15 TECHNOLOGIES USED The main technology used in our business is the VDC technology. We commenced our research and development activities on VDC in 2009. Our Group formally adopted and implemented the VDC technology extensively in our projects beginning in 2012. The VDC is an advanced digital project management tool that promotes the exchange of information and upfront collaboration involving multiple facets of the construction phase. It is an integrated approach of managing design, construction and facility management using software information models throughout the project lifecycle, enabling the sharing of knowledge and resources in a digital representation where design, schedule and cost can be integrated at all phases and simulated digitally prior to the physical construction of a project. The VDC, which is a combination of third-party 81M and IPD software tools, provides a total solution for project management where: • the 81M allows parametric and geometric digital data, integrated design, scheduling, estimation, and fabrication process to be stored in an integrated platform; and
• the IPD facilitates inter-party collaboration to enable the information to flow freely and transparently across multiple parties involved In the project, such as architects, engineers and contractors, at any stage to give a reliable basis for decision making throughout the project life cycle.

6. BUSINESS OF OUR GROUP (CONT’D) The VOC enables the integration of design, scheduling, estimation and fabrication processes. The 3D BIM model enables effective coordination among architects, structural engineers, and mechanical, engineering and plumbing engineers, eliminating clashes at an early design stage. The 40 model allows project planning and scheduling, calculating progress in physical development and timeline, while the 50 model enables automated quantities take-off, accurate cost estimation and real time cost control. The key benefit of BIM is 3D model visualisation with accurate parametric data resulting in effective design, where 3D models of the building or structure to be constructed provides three­dimensional perspectives of the building or structure. When project scheduling is integrated to the 3D model, it becomes 40 VOC. The integration of cost elements makes it 50 VOC. VOC can ensure faster delivery, cost-effective procurement, increase yield potential and reduce project risks. VOC also helps us reuse data for future operation and maintenance. Through the IPD, an integrated supply chain throughout the project development can be achieved, driving work productivity and efficiency. Project stakeholders actively participate in early decision making before costs of changes escalate during physical construction. A description of the 3D, 40, 50 and fabrication application in the VOC are as described below:
3D The 3D application in VOC is a comprehensive parametric model that allows all parties to share coordinated and transparent information digitally. It encompasses models from architectural, structural, mechanical, electrical, plumbing and interior design trades. From 3D models, comprehensive visualisation enables a detailed spatial study to be conducted, where the detailed design and technology tools facilitate design coordination for all trades, and detects and prevents clashes, thus resulting in a faster construction process with minimal wastage. Coordinated 3D models are further developed into detailed as-built information for stakeholders upon project completion. Mechanical, engineering and plumbing specifications in as-built models further improve facility management, ultimately reducing operational costs in a project lifecycle. 40 The 40 application in VOC refers to time integrated 3D models, where the technology allows for construction scheduling, and creates construction simulations that help planners to identify potential workflow conflicts. The VOC leverages on 40 with builders providing upfront constructability input and ensuring timely completion of buildings. 50 The 50 application in VDC integrates cost into the modeling to improve productivity and competitiveness by expediting feasibility studies, design development, tendering and project execution. Using a comprehensive cost library, model-based quantity take-off provides accurate estimation and fast feedback. This allows stakeholders to perform cost scenario analysis for effective decision making. With accurate model-based quantities, cost effective procurement can be achieved by consolidating Group procurement to leverage on economies-of-scale and justwin-time resources deliveries. Synchronisation between 40 scheduling and 50 cost information optimises project resource planning and work progress monitoring which ultimately reduces project cost. At the project execution phase, the 50 system is a versatile project management dashboard, prOViding transparency for real time cost control. 6. BUSINESS OF OUR GROUP (CONT’D)
Fabrication Our VDC adoption extends to the fabrication of precast concrete structures by our precast concrete business. Design and fabrication processes utilise the 81M to enable fast generation of shop drawings and materia! schedules, which are then used by our production team. Our main objective is to improve productivity through real-time information exchange and upfront collaboration among project stakeholders. Our VDC team is proficient in project planning, technical design, construction, project management, quantity surveying and IT development. As at the LPD, we have delivered the following major projects using the VDC technology:
The Everly Hotel • 3D for trade coordination and Putrajaya October 2009 ­Putrajaya as-built model preparation Holdings Sdn Bhd October 2012
Sunway Pinnacle • 3D for trade coordination and Sunway Pinnacle May 2010­construction drawing Sdn Bhd December 2013 preparation
• 40 for construction simulation Avant Parco • 3D far trade coordination and Sunway Land Pte
July 2011 3­Singapore as-built model preparation Ltd MaY201~• 40 for construction simulation ‘————————–­We will be leveraging on the VDC technology to deliver the following projects over 2015:
Sunway Pyramid Phase 3 Hotel and retail podium  • •  3D for trade coordination 40 for construction simulation  Sunway Forum Hotel Sdn Bhd  March 2013  Sunway Velocity Shopping Mall  • • •  3D for trade coordination 40 for construction simulation 50 for estimation and quantity take-off  Sunway Velocity Mall Sdn Bhd  March 2013  Parcel F Putrajaya Office buildings and podium parking  • • •  3D for trade coordination 40 for construction simulation 50 for estimation and quantity take-off  Putrajaya Holdings Sdn Bhd  February 2014  J
6. BUSINESS OF OUR GROUP (CONT’D) 6.16 BUSINESS DEVELOPMENT, MARKETING AND SALES We source for new projects through public and private tenders through our Commercial Department, as well as through referrals and recommendations from our clients and consultants from existing and past projects. Our business development efforts are primarily focused on fostering close business relationships with existing and prospective customers include private sector companies, public-listed companies, government-linked corporations and agencies under the Federal and State Governments in Malaysia, concessionaires and infrastructure project companies. Additionally, we also maintain business relationship with consultants and professionals such as engineers and architects who would be in a position to refer projects to us. Our business development efforts are strengthened by our track record and reputation in the construction industry, evidenced by the various building and civil/infrastructure construction services projects that we have delivered and awards garnered by our Group in recognition of our achievements. 6.17 CYCLICALITY AND SEASONALITY The construction industry is cyclical in nature and dependent on a nation’s general economic conditions. The construction industry typically moves in tandem with the economy, where strong economic growth coupled with fiscal stimulus by the Government spurs the growth of the construction industry. The construction industry in Malaysia is not seasonal in nature. 6.18 INTERRUPTION TO BUSINESS We did not experience any interruptions to our business which had significant impact on the operations of our Group over the past 12 months prior to the LPD. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK !Company Number: 11 08506-W II 6. BUSINESS OF OUR GROUP (CONT’D) 6.19 APPROVALS, MAJOR LICENCES AND PERMITS OBTAINED Details of the approvals, major licences and permits obtained by us for the business and operations of our Group are as follows:
SunCon I Ministry of 115.9.2012 -/ Certificate of registration of contractor in the K220842541011 Not applicable I Not applicable Construction Industry Development Board Malaysia Construction Industry Development Board Malaysia 14.9.2015 4.2.2013 ­3.2.2016 field of supply/service under the following 050498/357­heads/sub-heads: 02139310 080101,090101,100101,110201,110302, 130101, 130201, 130202, 140101 and 221401 Certificate of registration as a contractor 080801A/1960INot applicable INot applicable under Grade G7, categories B, CE, and ME: 319­WPOO0698(a) B -B02, B04, B01, B10, B24, B05, B13
(b) CE -CE03, CE11, CE06, CE08, CE34, CE30, CE43, CE42, CE31, CE 36, CEOS, CE23, CE02, CE01, CE17, CE24, CE04, CE10, CE19, CE20, CE21
(c) ME -M15, E1 0, M01, M19, M18, M03

14.2.2013 _I Certificate of registration for the procurement IA068357/1960 I Not applicable I Not applicable 3.2.2016 of Government Projects as a contractor under 319­Grade G7, categories B, CE, and ME WPOO0698 132 iCompany Number: 11 08506-W II 6. BUSINESS OF OUR GROUP (CONT’D)
Construction Industry Development Board Malaysia National Water Services Commission 4.2.2013 ­32.2016 6.9.2014 ­5.92017 Certificate of registration as an International Contractor under the following categories and specialization: (a) B -B02, B04, B01. B10, B24, B05, B13
(b) CE -CE03, CEll, CE06, CE08, CE34, CE30, CE43, CE42, CE31, CE05, CE23, CE02, CE01, CE17, CE24, CE04, CE10, CE19,CE20,CE21,CE36
(c) ME -M15, El0, MOl, M19. M03

Permit IPA Type C1 0Nater Supply) to carry out works in Peninsula Malaysia, Wilayah Persekutuan Putrajaya and Labuan A0568/196031 Not applicable Not applicable 9-WP000698 51890/SPAN/ Not applicable Not applicable EKS/(PT)/800 -2C/1/07/388 National  31.12.2012  Permit IPA Type Cl (Sewerage) to carry out  38190/SPAN/  Not applicable  Not applicable  Water  works  in  Peninsula  Malaysia,  Wilayah  EKS/(PT)/800  Services  30.122015  I Persekutuan Putrajaya and labuan  -2C/l/07/388  Commission  Sunway  Ministry  of  From  Manufacturing licence to manufacture precast  A019207/A03  Not applicable  Not applicable  Precast  Trade  and  17.09.2013  products  at  PTD  103226,  H.S.(D)  61810,  2693  Industries  Industry  onwards  Mukim Senai, KUlaijaya, Johor Darul Takzim  Malaysia
Sunway  Construction  4.6.2014  ­ Certificate  of  registration  as  a  contractor  145072A10120 I Not applicable  Not applicable  Geotechnics  Industry  3.6.2016  under  Grade  G7,  under  the  following  031208­ (M)  Development  categories and specialization:  SL090948  Board  (a)  B -B05  Malaysia  (b)  CE-CE10, CE21
133 iCompany Number; 11 08506-W I 6. BUSINESS OF OUR GROUP (CONT’D)
Sunway  I Ministry  of  I ::’0112012  Certificate of registration of contractor in the  K22087089541I Not applicable  I Not applicable  Engineering  Finance  field  of  supply/service  under the  following  076815/357­ 19.11.2015  heads/sub-heads;  02142914  050101, 050102, 060501, 120601, 120602,  140301, 140302, 140503, 210101, 210102,  210103, 210108, 210201, 220301, 220401,  220402, 220501, 220502, 220503, 220505,  220507, 220601  Construction  16.6.2014 ­ Certificate  of  registration  as  a  contractor  145280A/1970 INot applicable  INot applicable  Industry  25.32017  under Grade G7, categories B, CE, and ME;  416-SL028884  Development  (a)  B -B16, B04, B10, B24, B27  Board  (b)  CE -CE16, CE39, CE17, CE31, CE38,  Maiaysia  CE21, CE20, CE19, CE27  (c)  ME -E07, M11, M15, M07, M04, M02,  M01, E10, E03, M09, M10, M19, M12,  E11,  E09,  E01,  M06,  E06,  E05,  E04,  E02, M14, E08, E14, M05, M20, M18,  M17  Construction  11662014 _I Certificate of registration for the procurement I A071519/1970 I Not applicable  I Not applicable  Industry  2532017  of Government Projects as a contractor under  416-SL028884  Development  Grade G7, categories B, CE and ME  Board  Malaysia
134
iCompany Number: 11 08506-W II 6. BUSINESS OF OUR GROUP (CONT’D) Construction  1662014 -I Certificate of registration as  an  International IA0602/197041/ Not applicable  Not applicable  Industry  25.32017  Contractor under the following categories and  6-SL028884  Development  specialization:  Board  (a)  B -B16, B04, B10, B24, B27  Malaysia  (b)  CE -CE16, CE39, CE17, CE31, CE38,  CE21,CE20,CE19,CE27  (c)  ME -E07, M11, M15, M07, M04, M02,  M01, E10, E03, M09, M10, M19, M12,  E11,  E09,  E01,  M06,  E06, E05,  E04,  E02, M14, E08, E14, M05, M20, M18,  M17  National  28.12015 -I Permit IPA Type 0 (Water Supply) to carry  53039/SPANI  Not applicable  Not applicable  Water  27.12016  out works in Selangor Oarul Ehsan  EKS/(PT)/800  Services  Commission  20/1/10/1526
53040/SPANI Not applicable Not applicable Water 27.12016 National 28.12015­Permit IPA Type 0 (Sewerage) to carry out works in Selangor Darul Ehsan EKS/(PT)/800 Services Commission 20/1/10/1526 National 128.12015­Permit IPA Type C2 (Water Supply) to carry 53037/SPANI Not applicable Not applicable Water 27.1.2016 out works in Peninsula Malaysia, Wilayah EKS/(PT)/800 Persekutuan Putrajaya and Labuan Services Commission 2C/1/10/1526 National 53038/SPANI Not applicable Not applicable 28.1.2015 -I Permit IPA Type C2 (Sewerage) to carry out Water 27.1.20161 works In Peninsula Malaysia, Wilayah EKS/(PT)/800 Services Persekutuan Putrajaya and Labuan Commission 2C/1/10/1526 _1­135 ICompany Number: 11 08506-W I 6. BUSINESS OF OUR GROUP (CONT’D)
Sunway Concrete Products (S) National Water Services Commission Energy Commission Building and Construction Authorily BUilding and Construction Authority i Building and Construction Authority Building and Construction Authority 23.12.2014 -22.12.2015 10.2.2014 ­9.22016 23,8.2012 ­1.9.2015 1572012 ­15,7,2015 15.72012 ­15.7.2015 5.12,2013­4.12.2018 Permit IPA Type C1 (Water Supply) to carry I 53416/SPAN/ out works in Peninsula Malaysia, Persekutuan Putrajaya and Labuan  Wilayah  EKS/(PT)/800 2C/1/10/1526  ‘I 11.  Certificate of registration as an electrical contractor to carry out works at Level 9, Menara Sunway, Jalan Lagoon Timur, Bandar Sunway, 46150 Petaling Jaya, SeJangor under Class A General Building -C3 11, CW01  3702/(TKL)K E/341887W/2 014  1  2.  Civil Engineering -C3  2,CW02  3.  Concrete Repairs -L1  3,CR05  4.  Pre~cast  Concrete work ­ L6  4,CR10  Ready-Mix Concrete -L6  5,SY01B  Certificate Class 2  of  Licence  for  General  Builder  Not applicable  Certificate of Licence for (Pre-cast Concrete Work)  Specialist  Buiider  Not applicable  Periodical Inspection of Building  Not applicable
136 I Not applicable INot applicable INot applicable  I Not applicable INot applicable INot applicable  INot applicable I Not applicable I Not applicable  INot applicable INot applicable I Not applicable
ICompany Number: 11 08506·W II 6. BUSINESS OF OUR GROUP (CONT’Dj
Energy 19.4.2015 -I Electricallnstaliation Licence E/84405 Market 18.4.2016 Authority Ministry Manpower  of  2.6.2015 2.6.2017  – Certificate of registration to act as Workplace safety and health officer  028-073­00705  Ministry Manpower  of  31.8.2014 ­31.8.2016  Certificate of registration to operate the crane  084-007­00268
National  28.3.2008 ­ Licence  for  us  of  scheduled  premises  to  A-2008/-009  Environmental  30.4.2017  operate a concrete batching plant  Agency
_1­This licence is to be displayed in a conspicuous position on the switchboard or in the switch room. Not applicable Not applicable The emission of air impurities shall comply with the standards stipulated in the Environmental Protection and Management (Air Impurities) Regulations. The occupier shall maintain the control equipment installed in or on the premises in good order. The occupier shall operate any control equipment installed in or on the premises in good manner during the production process. I Not applicable Not applicable Not applicable 137 Company Number: 1108506-W I 6. BUSINESS OF OUR GROUP (CONT’D)
IL LI ~. . ~ . L The occupier shall use fuel with sUlphur content not exceeding 0.005% by weight. The occupier shall not, without the written permission  of  the  Director  of  Environmental  Protection:
(a) alter the method of operation of any trade, industry, process, fuel burning equipment or control equipment or industrial plant in or on the premise; (b) install, alter or replace any fuel burning equipment or control equipment or industrial plant in or on the premises; and (c) Erect or alter the height or dimension of any chimney through which air impurities may be emitted from the premises. 138
ICompany Number: 1108506-W I 6. BUSINESS OF OUR GROUP (CONT’D)
In addition, 5unway Concrete Products (5) Pte Ltd shail: (a) install and operate an efficient dust extraction and collection systems for the removal of dust from the silos during the cement pumping operation such that it would not have emission into the atmosphere. (b) maintain and operate the dust extraction and collection systems in an efficient manner at all times. (c) wrap the concrete discharge area with canvas sheets; and (d) install water sprinkler nozzles at the concrete discharge area. 139
ICompany Number: 1108506-W I 6. BUSINESS OF OUR GROUP (CONT’D)
Singapore Civil Defence Force  11.11.2014­31.10.2015  Licence to store petroleum and inflammable materials and respective quantity Petroleum (Diesel) -15,000 litres Flammable Materials (Gases) -105 kg  I  FS24182012  The licence is granted subject to the Fire Safety Act 1993 and the regulations relating to the purpose of the storage of petroleum and inflammable materials.  I  Not applicable  TUV SUD 18.10.2012­PSB Pte Ltd 710.2015  Certificate for the compliance for the IBS OHSAS establishment and appliance of an 18001 :2007 Occupational Health & Safety Management System for Design, Production and Supply of Precast Components  Not applicable  I Not applicable  TUV SUD I 12.11.2013 PSB Pte Ltd 11.11.2016  Certificate for the compliance for the IISO establishment and appliance of an Quality 9001 :2008 Management System for Design, Production and Supply of Precast Components  Not applicable  I Not applicable  TUV SUD 17.2.2015 PSB Pte Ltd 6.2.2018  – Certificate for the compliance for the IIS014001 :20 establishment and appliance of an 04 Environmental Management System for Design, Production and Supply of Precast Components  Not applicable  I Not applicable  TUV SUD 111.12.2013 PSB Pte Ltd -30.3.2017  1 Certificate of Conformity Concrete Certification)  (Ready-Mixed I RMC0004  Not applicable  Not applicable  Sunway lnnopave  Department of Municipal Affairs of Abu Dhabi, UAE  118.11.2013 -17.11.2015  Certificate of Classification Category sixth  of Contractors  -I 20757/5078  Not applicable  Not applicable
140 Company Number: 1108506-W I 6. BUSINESS OF OUR GROUP (CONT’D) 6.20 BRAND NAMES, PATENTS, TRADEMARKS, TECHNICAL ASSISTANCE AGREEMENTS, FRANCHISES AND OTHER INTELLECTUAL PROPERTY RIGHTS Save as disclosed below, as at the LPD, we do not have any other brand names, patents, trademarks, technical assistance agreements, franchises and other intellectual property rights for our business operations: (a) Our Company has on 7 November 2014 entered into a trade mark licence agreement (as varied and supplemented by a supplemental letter agreement dated 29 December 2014) with Sunway where Sunway has agreed to grant us a non-exclusive licence for our Company and our subsidiaries (including subsidiaries to be incorporated or acquired in the future) to use the trademarks as set out in the table below in connection with our business in respect of the goods/services registered/applied for, whichever is relevant, in all countries and territories worldwide, in perpetuity unless otherwise terminated pursuant to the terms contained therein. The annual licence fee of RM2,000 is subject to annual review by Sunway, and exclusive of goods and services tax and such goods and services tax shall be paid by our Company in addition to the licence fee of RM2,000 at the same time as the payment of the licence fee. Sunway is entitled to terminate the trade mark licence agreement upon 30 days’ written notice to our Company in the event of Sunway ceasing to hold less than 51% of our issued and paid-up share capital. In addition, any party shall be entitled to issue a notice to the other party terminating the trade mark licence agreement upon the occurrence of the following events and the party has (i) failed to remedy that material breach within 30 days following its receipt of written notice of such breach or (ii) if the material breach is not amenable to remedy within 30 days, failed to remedy such breach within 45 days following its receipt of written notice of such breach, provided that such party is using diligent good faith efforts to remedy such breach during such period: (a) such party has committed a material breach of the trade mark licence agreement;
(b) if a receiver, receiver and manager, trustee, judicial manager or similar official is appointed over any of the assets or undertaking of such party;
(c) if such party enters into or resolves to enter into any arrangement, composition or compromise with, or assignment for the benefit of, its creditors or any class of them; or
(d) if an application or order is made for the winding up or dissolution of such party or a resolution is passed or any steps are taken to pass a resolution for the winding up or dissolution of such party otherwise than for the purpose of an amalgamation or reconstruction.

Sunway does not have any right to refuse to renew the licence if there is no sUbsisting breach on the part of our Company of the terms of the trade mark licence agreement. 6. BUSINESS OF OUR GROUP (CONT’D)
1.  $  Services relating to financial and monetary affairs, lease and hire-purchase, financing services, insurance services, general insurance  36&37  Malaysia  Sunway  SUNWAY  underwriting services, capital services, property investment and  investment investment  holding services (financial services), real estate  agency, rental and lease of real estate, sale of  $JUIIIWAY  commercial house properties, administration and management of properties, all included in Class  36.  SUNWAY  Quarrying  services,  asphalting,  mining  extraction,  construction  of  building,  building  construction supervision, undertaking piling and  structural  works,  electric  appliance  installation  and repair, installation, repair and maintenance  of computer hardware & computers, installation  and repair of machinery and site equipment used  in  construction  of  bUildings,  property  development, repairs  and  installation services,  property maintenance, construction, renovation,  refurbishment,  maintenance  and  repair  of  buildings,  houses,  condominiums,  apartments,  flats,  residential,  industrial  and  commercial  properties, development of properties, land and  buildings,  landscaping  (construction),  building  project  management  on  site  building  project  management,  on  site  project  management  relating  to  the  construction  of  buildings,  civil  engineering  construction,  consultancy  and  advisory  services  relating  to  all  aforesaid  services, all included in Class 37.  2.  SUNCON  Real estate services comprising management  36&37  Malaysia  Sunway  and rental of properties, included in class 36.  Property  and  housing development services;  construction  of building, building  construction  supervision, undertaking piling  and  structural  works; electric appliance installation and repair;  lmeChanical engineering works, installation and  repair services;  rental  of machinery and  site  equipment used in construction of buildings, all  included in class 37.  _’——-‘­
6.  BUSINESS OF OUR GROUP (CONT’D)  SUNWAY installation and repair; installation, repair and maintenance of computer hardware & computers; installation and repair of mechanical engineering equipment; rental of machinery and site equipment used in construction of buildings; property development, repairs and installation services; commercial retail property development services; property maintenance; construction, renovation, refurbishment, maintenance and repair of buildings, houses, condominiums, apartments, flats, residential, industrial and commercial properties; development of properties, land and buildings; landscaping construction; building project management; on site building project management; on site project management relating to the construction of buildings; civil engineering construction; consultancy and advisory selVices relating to all the aforesaid selVices in Class 37.  4.  SUNCON Real estate services comprising management and rental of properties, included in Class 36.  36 & 37  Singapore  Sunway  Property and housing development selVices; construction of building, building construction supervision, undertaking piling and structural works; electric appliance installation and repair; mechanical engineering works, installation and repair services; rental of machinery and site equipment used in construction of buildings, all included in Class 37.

6. BUSINESS OF OUR GROUP (CONT’D)
5.  S SUNWAY SUNWAY  Services relating to financial and monetary affairs, lease and hire-purchase, financing services, insurance services, general insurance underwriting services, capital investment services, property investment and investment holding services (financial services), real estate agency, rental and lease of real estate, sale of commercial house properties, administration and management of properties, all included in Class 36. Quarrying services, asphalting, mining extraction, construction of building, building construction supervision, undertaking piling and structural works, electric appliance installation and repair, installation, repair and maintenance of computer hardware & computers, installation and repair of machinery and site equipment used in construction of buildings, property development, repairs and installation services, property maintenance, construction, renovation, refurbishment, maintenance and repair of buildings, houses, oondominjums, apartments, flats, residential, industrial and commercial properties, development of properties, land and buildings, landscaping (construction), building project management on site building project management, on site project management relating to the construction of buildings, civil engineering construction, consultancy and advisory services relating to all aforesaid services, all included in Class 37.  36&37  Singapore  Sunway
6.21 DEPENDENCY ON PATENTS, LICENCES, INDUSTRIAL, COMMERCIAL OR FINANCIAL CONTRACTS OR ARRANGEMENTS Save for the licences as disclosed in Sections 619 and 6.20 of this Prospectus, we are not dependent on any other patents, licences, industrial, commercial or financial contracts or arrangements that could materially affect our business or profitability. iCompany Number: 1108506-W I 6. BUSINESS OF OUR GROUP (CONT’D) 6.22 INFORMATION ON LAND AND BUILDINGS 6.22.1 Summary of Property Owned by Our Group A summary of the material property owned by our Group is as follows:
Sunway  (a) Title  no.  18,  Jalan  Freehold  Open  yard  Calegory  of  land  7.1.2015  3 years  Built up area:  15,547,455  Nil  Precast  H.S.  (D)  Idaman  111,  with  use:  Manufacturing!  262,231  Industries  61810,  Lot  Taman  production  Industrial  Land  area:  no.  PTD  Perindustrian  line,  workers’  475,409  103226, Mukim  Senai, 81400 Senai, Johor  canteen power  and  I  Express conditions:  Senai,  Bahru, Johor  substation  for  Daerah  precast  For  Lot  no.  PTD  Kulaijaya,  manufacturing  103226:  Johor  Darul  activity  and  Tanah ini hendaklah  Takzim (Lot  storage  of  digunakan  sebagai  no.  PTD  precast  kawasan  Industri  103226)  concrete  Sederhana  untuk  products  tujuan  perusahaan  Concrete  Casting  Yard  dan  kegunaan  lain  berkaitan  dengannya,  mengikut pelan yang  diluluskan oleh Pihak  Berkuasa Tempatan.
145 iCompany Number: 1108506-W II 6. BUSINESS OF OUR GROUP (CONT’D)
(b) Geran For Lot no. 39632 232953, Lot and Lot no. 39633: no. 39632, Tanah Ini hendaklah Muklm digunakan sebagaiSenai, kawasan lndustri Daerah untuk tujuanKUlaijaya, Perusahaan RinganJohor Darul sesebuah 1 % Takzim (Lot tingkal dan lain-lain no. 39632) kegunaan yang berkaltan dengannya, dlblna 232958, Lot (c) Geran mengikut pelan yang dlluluskan oleh Pihak no. 39633, Muklm Berkuasa Tempalan yang berkenaan. Senai, Daerah For Lot no. PTOKulaijaya, 103226, Lot no.Johor Darul 39632 and Lot no.Takzim (Lot 39633:no. 39633) (I) Segala kekotoran dan pencemaran akibat aktivlti inl hendaklah disalurkan ke tempat-tempat yang telah ditentukan oleh Pihak Berkuasa Berkenaan. 146 Company Number: 1108506-W I 6. BUSINESS OF OUR GROUP (CONT’Oj
(ii) Segala dasar dan  syarat yang  ditetapkan dan  dikuatkuasakan dari  semasa ke semasa  oleh Pihak Berkuasa  Berkenaan  hendaklah dipatuhi.  Tamouh  Sector: RT1  Unit 501,  Freehold  Description:  For office use only  9.22011  4 years  16,759  AED18,434,900′  Nil  Investments  Plot No.: C1  Level 5,  A whole office  (entire fioor)  (equivalent to  LLC’  Building No.: 12 (A2) Unit No.: 501  Tamauh Tower, Marina Square, AI Reem Island,  unit located on level 5 of the office tower. The unit is  approximately RM18,339,038″)  Floor No.: 5  Abu Dhabi  currently  unoccupied  Use:  It is a  commercial  property with  intention to  rent or sell by  Sunway  Engineering
147 I Company Number: 11 08506-W II 6. BUSINESS OF OUR GROUP (CONT’Dj
No.: 12 (A2) Unit No.: 701 I Floor No.: 7 ,. Tower, Marina Square, AI Reem Island, Abu Dhabi 148 [I Company Number: 1108506-W II 6. BUSINESS OF OUR GROUP (CONT’D)
Tamouh  Sector: RT1  Unit  901,  Freehold  Description:  For office use only  9.2.2011  4 years  16,759  AED18,434,900A  Nil  Investments  Plot  No.:  Level  9,  A whole office  (entire floor)  (equivalent to  LLC’  C1  Tamouh  unit  located  approximately  Building  Tower,  on  level  9  of  RM18,339,038#)  No.  12  Marina  the  office  (A2)  Square,  AI  tower.  The  Unit  No.:  Reem Island,  unit  is  901  Abu Dhabi  currently  Floor No.: 9  unoccupied  Use:  It  is  a  commercial  property  with  intention  to  rent or sell by  Sunway  Engineering
Notes: Sunway Engineering is currently the beneficial owner of the office units. The office units were obtained through a settlement arrangement between ISZL Consortium and AI Tamouh Investments LLC vide a settlement agreement dated 23 Apri/2014 entered between IJM Construction Sdn Bhd. $unway Builders, Zelan Holdings (M) Sdn Bhd, LFE Engineering Sdn Bhd, collectively as the holders of the entire interest Df ISZL Consortium and AI Tamouh Investments LLC and the respective sale and purr;hase agreements all dated 29 January 2015 entered into between Sunway Engineering (as nominee of ISZL Consortium) and AI Tamouh Investment LLC. Such sale and purchase transactions were completed on 29 January 2015 in accordance with the terms of the safe and purchase agreements referred to in Section 15.4(iv) of this Prospectus. A For information purposes, the purchase consideration amount stated therein is extracted from the relevant sale and purchase agreements referred to in Section 15.4(iv) of this Prospectus. # Based on exchange rate ofAED1.00: RMO.9948 as at 29 May 2015 (Source: Bloomberg L.P.). 149 !Company Number: 1108506-W ! 6. BUSINESS OF OUR GROUP (CONT’D) 6.22.2 Summary of Properties Leased or Tenanted by Our Group A summary of the material properties leased or tenanted by our Group for our operations are as follows:
Trustees Berhad as trustee for Sunway Real Estate Investment Trust  SunCon  6 owners(1)  individual  SunCon  6 owners(2)  individual  SunCon  3 joint owners(3)
1.2A, 7.3, 8.3 and 9.3A, Menara Sunway, Jalan Lagoon Timur, Bandar Sunway, 47500 Subang Jaya, Selangor A-01-03, A-01-06, A-01-07, A-02­03, A-02-3A, A-02-05, A-02-07, A­02-08, A-02-09, A-03-03 and A­03-07, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur A-01-3A, A-01-05, A-03-3A, A-03­05, A-03-06 and A-03-08, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur A-02-06, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur 2 years I 31.12.2015  3 years 30.9.2015  I  1.1 0.2012  ­ 1  year  with  an  option  to
renew for another year I 1.10.2014 -30.9.2015 11 year I 1.10.2014 ­30.9.2015 1 office unit each at the l’ floor, y’h floor, 8th floor and 91h floor of a 20-storey office block for office use 3 office units at the 15t floor, 6 office units at the 2nd floor and 2 office units at the 3″ floor of a 4­storey office block for office USe 2 office units at the 1sl floor and 4 office units at the 3″ floor of a 4-storey office block for office use 1 office unit at the 2nd floor of a 4-storey office block for office use Aggregate built up  area  for  4  office  units:  25,735  Land  area:
Not applicable Aggregate built up area for 11 office units: 18,989 Land area: Not applicable Aggregate built up area for 6 office units: 10,358 Land area: Not applicable Built up area: 1,726 Land area: Not applicable 1,569,342.00 (aggregate rental for 4 office units) 543,600.00 (aggregate rental for 11 office units) 356,880 (aggregate rental for 6 office units) 57,600 150
I Company Number: 1108506-W II 6. BUSINESS OF OUR GROUP (CONT’D) Built up area: I 843,968.40 Not applicable Land area: 468,871.1 Built up area: I 505,198.80 Not applicable Land area: 280,666 163,680.00 Not applicable Built up area: Land area: 77,537 Built up area: 272,400.00 Not applicable Land area: 128,981.2 Built up area: SGD532,101.00 Not applicable (RM1,447,367.93(4)) Land area: 163,772.9 SunCon Sunway Geotechnics (M) SunCon SunCan Sunway Concrete Products (S) I Sunway Paving Solutions Sdn Bhd
Sunway Paving Solutions Sdn Bhd Sunway Lagoon Sdn Bhd Sunway integrated Properties Sdn Bhd The Housing and Development Board I Lot 10071, Mukim of Batang Kali, 12 years / 1.1.2015 portion of a parcel of-I A 44300 Daerah Hulu Selangor, 31.12.2016 Selangor Lot 10071, Mukim of Batang Kali, 44300 Daerah Hulu Selangor, Selangor Lot PT. 11, Jalan Subang 1, Off Persiaran Subang, 47600 Subang Jaya, Selangor Lot PT. 897, Jalan Subang 1, Off Persiaran Subang, 47600 Subang Jaya, Selangor Lot MK29-1896V, 4, Tampines Industrial Street 62, Singapore 528817 2 years / 1.1.2015 ­31.122016 I 3 years / 1.72014 ­30.6.2017 2 years with an option to renew for another 2 years I 16.2014 -31.5.2016 Private Leasehold Estate: Commencement date: 15.2007 Tenure: 10 years less 1 day /1.5.2007 -30.4.2017 Reversionary Estate: Commencement date: 1.5.1997 Tenure: 20 years -Expires on 30.4.2017 industrial land for purpose of storage of system formwork A portion of a parcel of industrial land for purpose of storage of plant and machinery A parcel of industrial iand for purpose of machinery storage and maintenance A parcel of industrial land for purpose of machinery storage and maintenance Yard for precast manufacturing activity and storage of precast concrete products 151 ~ Company Number: 1108506-W ! 8. BUSINESS OF OUR GROUP (CONT’D)
Sunway  The  Housin9  and  Lot  MK29-1897P,  4,  Tampines  Private  Leasehold  Yard  for  precast  Built  up  area:  SGD532,101.00  Concrete  Development Board  Industrial  Street  62,  Singapore  Estate:  manufacturing activity and  Not applicable  (RM1,447,367.93(4})  Products (S)  528817  Commencement  date:  storage  of  precast  Land  area:  1.5.2007  concrete products  163,772.9  Tenure:  10  years  less  1  day /1.5.2007 -30.4.2017  Reversionary Estate:  Commencement  date:  1.5.1997  Tenure: 20 years ­ Expires  on 30.4.2017
Notes:  (1)  Six individual owners are Tan Jwin Hxen, Lai Hoang Sung & Yap Lee Koon ljoint owners), LtC Industries Sdn Bhd, Chan Swee Lan, Dasa Sentosa Sdn Bhd and  Sarabjeet Singh respectively.  (2)  Six individual owners are Loo Man Shang, Lim Tong Seng, Mong Lap Chee, Simon Ling Siang Hock, Heng Chip Hian and Leong Ghoon Meng respectively.  (3)  Three joint owners are Teh Tsui Ling, Tommy Lee Chee Yeow and Chao Yang Yee respectively.  (4)  Based on exchange rate of SGD1.00: RM2. 7201 as at 29 May 2015. (Source: Bloomberg L.P.)
The above properties leased or tenanted by our Group have been issued with the relevant certificate of fitness for occupation or equivalent (where applicable) as at the date of this Prospectus. As at the date of this Prospectus, our Group is not in breach of any law, rules and building regulations in relation to the use of the properties above. Our Directors wish to highlight that, with respect to the land and buildings owned and leased by our Group as stated above, there are no environmental issues that may materially affect our Group’s operations and utilisation of the above properties. 152 ICompany Number: 1108506-W ! 6. BUSINESS OF OUR GROUP (CONrD) 6.22.3 Material Tangible Fixed Assets Other than Property Save as disclosed below, as at the date of this Prospectus, our Group does not have any other material tangible fixed assets:
1.  Boring machine  23  Since July 2007 to January 2014  7  42,896  2.  Launcher  5  Since October 2012 to 2014  10  18,630  3.  Tower crane  16  Since December 2011 to May 2013  10  12,416  4.  Excavator  25  Since December 2011 to November 2014  10  6,579  5  Formwork  25,000 m’  Since October 2008 to 2014  5  14,827  Total  95,348
6.22.4 Material Plans to Construct, Expand or Improve Facilities As at the date of this Prospectus, our Group does not have any other material plans to construct, expand or improve our facilities.
153 6. BUSINESS OF OUR GROUP (CONT’D) 6.23 INSURANCE Our Group maintains insurance coverage at levels that are customary in the businesses in which we operate to protect against various losses and liabilities that may arise from the risks of our construction projects. These risks include physical loss of, or damage to, our equipment and equipment belonging to third parties, physical injuries suffered by our employees as a result of accidental work hazards, and any liabilities arising from our operation. We generally maintain relevant insurance policies such as contractors’ all risk insurance, fire insurance, workers’ insurance and public liability insurance in Malaysia and in other jurisdictions in which we operate. We also review our insurance policies and coverage regularly to ensure there is adequate coverage on our assets, employees and construction projects in order to manage any losses which may arise for our project needs. For the FYE 31 December 2012, FYE 31 December 2013 and FYE 31 December 2014, we incurred an aggregate of RM6.9 million, RM 10.2 million and RM8.2 million respectively in insurance policy premiums. 6.24 PROSPECTS OF OUR GROUP Premised on our key competitive strengths and advantages highlighted in Section 6.4 of this Prospectus, our future plans and strategies highlighted in Section 6.5 and the prospects and outlook of the construction industry as set out in Section 7 of this Prospectus, our Board is of the view that we will enjoy positive growth and favourable prospects in the long-term. THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

 

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