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Chairman's Message

 

Dear Shareholders

On behalf of the Board of Directors, I am pleased to present the Annual Report and the Audited Financial Statements of Tasek Corporation Berhad for the financial year ended 31 December 2016.

This year sees the Company’s existence of 55 years since its incorporation in 1962.  The Company will be holding its 56th Annual General Meeting on 27 April, 2017 and the Directors have the pleasure of inviting you to attend the meeting which will be held in the Millennium I, Lobby Level, Grand Millennium Kuala Lumpur, 160 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia.  Please see the Notice of the 56th Annual General Meeting and its accompanying notes for further information in this Annual Report.

The 2016 financial year was more challenging than 2015, cement demand was weaker being partly affected by the slowdown in the property market and some delays in the new infrastructural projects.  Under these circumstances, the Group achieved a profit after tax of RM50.3 million compared with RM91.3 million in 2015.  Revenue was RM654.8 million lower by RM47.8 million than the previous year.  The lower profit after tax was mainly due to pricing pressures in the cement and ready-mixed concrete market resulting in lower average net pricing.  The Company paid an interim dividend of 30 sen per share in the third quarter of 2016 in respect of the 2016 financial year.  The Board has recommended for shareholders’ approval at the forthcoming annual general meeting to declare a final dividend of 40 sen per share

For the 2017 financial year, we see the Company operating in a challenging economic environment.  Key events that may improve the demand of cement and ready-mixed concrete other than the infrastructural projects and catalytic developments in greater Kuala Lumpur, is the official launch of phase 1 of Bandar Malaysia and international tender for phase 1 of the transit-oriented development in 2017.  However, market conditions, pricing competition and the external global factors are some of the uncontrollable factors that may affect the Company’s performance.  To offset these factors, the Board has tasked Management to keep operating costs lean and to focus more intently to further optimise the Company’s operational efficiencies and productivity.   

We thank Tan Sri Ir (Dr) Mohamed Al Amin, who resigned from our Board on 28 February, 2017, for his time and contribution made to the Company.  Tan Sri Ir (Dr) Mohamed Al Amin had also served as Member of the Board Audit and Risk Management Committee. We welcome the appointment of Dato’ Mohammed Hussein as an independent director and as a member of the Board Audit and Risk Management Committee on 24 March 2017, and we look forward to his contribution to the Board and the Company.

We thank shareholders, our management team and our employees, Union members, distributors, customers, suppliers, transporters, business partners and other stakeholders for their continuing support to the Company.  In the face of many challenges, we believe that we will continue to deliver with such support to make a significant positive impact for all our stakeholders and the communities.

 

KWEK LENG PECK

Chairman

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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