0198 - GDB - AnnualReport - 2018-12-31 - GDB - AR 2018 - 1558764093

ANNUAL
REPORT
2018
GDB HOLDINGS BERHAD

(COMPANY NO.: 1036466-U)
About Us
GDB Holdings Berhad (“GDB” or “Group”) is listed on the

ACE Market of Bursa Malaysia Securities Berhad under the
construction sector. The Group is principally involved in the
provision of construction services, focusing on high-rise
residential, commercial and mixed development projects as
main contractor and principal works contractor.
Established since 2013, GDB is involved in the implementation

of large-scale construction projects. Since our incorporation,
GDB has established a good track record for completing
projects ahead of the contractual completion date, while
adhering to stringent quality, safety and environmental
standards.
GDB is accredited with multiple certifications such as ISO

9001:2015 Quality Management System, ISO 14001:2015
Environmental Management System, and OHSAS 18001:2007
Occupational Health and Safety Management System. GDB
has obtained the QLASSIC, CONQUAS, and BuildQAS quality
certifications for its projects. The Group has also attained the
SHASSIC safety certification for its projects, and completed
the Green 5-S program which is in line with its commitment
to safety, health, quality, productivity and the environment.
Notably, GDB is the first construction company in Malaysia to
be certified by Hong Kong 5-S Association Ltd and SIRIM STS
in December 2018 for implementing the Construction Green
5S (“CG5S”) which consist of the 5S and Lean 5S Program.
GDB is registered with the Construction Industry Development

Board of Malaysia as a Grade G7 contractor, which qualifies
GDB to tender for projects of unlimited value in the categories
of general building, general civil engineering, and mechanical
works. GDB has also obtained the Sijil Perolehan Kerja
Kerajaan as a Grade G7 contractor which qualifies GDB to
participate in tenders for Government projects with contract
value exceeding RM10.0 million.
Table of Contents
Vision & Mission 2

Corporate Information 3
Corporate Structure 4
Financial Highlights 5
Profile of Directors 7
Key Management Profile 10
Chairman’s Statement 11
Management Discussion & Analysis 12
Sustainability Statement 17
Corporate Governance Overview Statement 20
Audit Committee Report 33
Statement on Risk Management and
Internal Control 36
Additional Compliance Information 40
Directors’ Responsibility Statement 42
Financial Statements 43
Analysis of Shareholdings 105
Notice of Annual General Meeting 107
Proxy Form
ANNUAL REPO RT 2018 1

Vision Mission
To be a REPUTABLE construction firm • To employ, cultivate, and support our knowledgeable

and motivated teams through continuous development
in Malaysia delivering sustainable and and improvement driven by the synergy of Efficiency,
Teamwork and Commitment of the management and
excellent products and services through
staff.
innovation in PEOPLE, QUALITY,
• To build dedicated and lasting relationships with our
SAFETY and TECHNOLOGY. valued customers by delivering progressive excellence,
reliable quality and cost-effective projects that exceeds
their expectations via exceptional performance by every
member of GDB – on time, every time.
• To safeguard Mother Nature and provide sustainability

as well as additional peace of mind for our customers
by upholding ecological, resource-efficient green
technologies and environmentally responsible practices
during every stage of construction.
2 GDB HOLDINGS BERHAD (1036466-U)

Corporate Information
BOARD OF DIRECTORS PRINCIPAL PLACE OF BUSINESS

Tan Sri Dato’ Ir. Hj. Zaini Bin Omar No. 1-45, 1-43 and 2-45
(Independent Non-Executive Chairman) Jalan Puteri 4/8
Bandar Puteri
Cheah Ham Cheia
47100 Puchong
(Managing Director)
Selangor Darul Ehsan
Alexander Lo Tzone Leong Telephone No : 603-8066 6960
(Executive Director) Fax No : 603-8066 6965
Website : http://www.gdbhb.com.my
Cheah Jun Kai Email : [email protected]
(Executive Director)
Datuk Chia Lui Meng
(Independent Non-Executive Director)
AUDITORS
Crowe Malaysia PLT (Converted from a conventional
Kow Poh Gek
partnership, Crowe Malaysia which was previously known
(Independent Non-Executive Director)
as Crowe Horwath)
Chartered Accountants
AUDIT COMMITTEE Level 16 Tower C
Megan Avenue II
Kow Poh Gek (Chairperson) 12 Jalan Yap Kwan Seng
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar (Member) 50450 Kuala Lumpur
Datuk Chia Lui Meng (Member) Telephone No : 603-2788 9999
Fax No : 603-2788 9998
REMUNERATION COMMITTEE
Datuk Chia Lui Meng (Chairman) SHARE REGISTRAR
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar (Member) Boardroom Share Registrars Sdn Bhd
Kow Poh Gek (Member) (Formerly known as Symphony Share Registrars Sdn Bhd)
Level 6, Symphony House
NOMINATION COMMITTEE Pusat Dagangan Dana 1
Jalan PJU 1A/46
Kow Poh Gek (Chairperson) 47301 Petaling Jaya
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar (Member) Selangor Darul Ehsan
Datuk Chia Lui Meng (Member) Telephone No : 603-7849 0777
Fax No : 603-7841 8151 / 8152 / 8100
RISK MANAGEMENT COMMITTEE
Datuk Chia Lui Meng (Chairman)
PRINCIPAL BANKERS
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar (Member) Alliance Islamic Bank Berhad
Kow Poh Gek (Member) HSBC Bank Malaysia Berhad
Cheah Ham Cheia (Member) United Overseas Bank (Malaysia) Bhd
Alexander Lo Tzone Leong (Member) CIMB Islamic Bank Berhad
COMPANY SECRETARY STOCK EXCHANGE LISTING

Tea Sor Hua (MACS 01324) Bursa Malaysia Securities Berhad
ACE Market
Stock Code : 0198
REGISTERED OFFICE
Third Floor, No. 77, 79 & 81
Jalan SS21/60
SPONSOR
Damansara Utama Alliance Investment Bank Berhad
47400 Petaling Jaya Level 3, Menara Multi-Purpose, Capital Square
Selangor Darul Ehsan 8, Jalan Munshi Abdullah
Telephone No : 603-7725 1777 50100 Kuala Lumpur
Fax No : 603-7722 3668 Telephone No : 603-2604 3333
Website : http://www.cospec.com.my Fax No : 603-2691 9028
Email : [email protected]
Corporate Structure
GDB HOLDINGS BERHAD

(Co. No.: 1036466-U)
INVESTMENT HOLDING COMPANY
100%
GRAND DYNAMIC BUILDERS SDN BHD
(Co. No. 718036-T)
PROVISION OF CONSTRUCTION SERVICES

Financial Highlights
For The Financial Year Ended 31 December
In RM’ 000 2018 2017 2016 2015 2014

(Except otherwise indicated)
Revenue 274,559 296,812 276,906 169,539 86,628
Profit before tax 36,949 30,502 21,424 9,698 3,881
Profit after tax 27,890 22,518 16,092 7,177 3,277
Total assets 212,751 152,206 110,433 80,239 46,727
Total equity attributable to owners of 104,121 39,917 27,199 12,207 5,030

the Company
Earnings per share (Sen)(1) 4.68 4.50 6.42 6.04 3.01
Net assets per share (Sen)(2) 16.66 6.39 4.35 1.95 0.80
Notes:
(1) Earnings per share is calculated based on weighted average number of ordinary share at year end.
(2) Net assets per share is calculated based on issued share capital of 625,000,000 shares.

QUARTERLY PERFORMANCE
In RM’ 000 First Second Third Fourth
(Except otherwise indicated) Quarter Quarter Quarter Quarter
2018 2018 2018 2018
Revenue 81,083 68,384 55,748 69,344
Profit before tax 9,037 11,826 8,902 7,184
Net profit for the financial period 6,597 9,131 6,760 5,402
Earnings per share Sen 1.30 1.61 1.15 0.91
Dividend per share Sen - 1.00 - 1.00
Total assets 177,166 187,174 186,784 212,751
Total shareholders' funds 89,085 91,959 98,719 104,121
Net assets per share Sen 14.25 14.71 15.80 16.66
Stock Information
Market capitalisation (RM’ 000) 184,375 203,125 218,750 143,750
Share price:
High RM 0.335 0.340 0.450 0.365
Low RM 0.290 0.275 0.315 0.220
Close RM 0.295 0.325 0.350 0.230

Financial Highlights
For The Financial Year Ended 31 December (cont’d)
REVENUE NET PROFIT

(RM’ 000) (RM’ 000)
27,890
296,812
276,906
274,559
22,518
16,092
169,539
3,277
7,177
86,628
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
T O TA L A S S E T S NET ASSETS PER SHARE

(RM’ 000) (SEN) *
16.7
212,751
152,206
110,433
6.4
80,239
4.4
46,727
0.8
2.0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
* Net assets per share is calculated based on issued share capital of 625,000,000 shares.

Profile of Directors
TAN SRI DATO’ IR. HJ. ZAINI BIN OMAR CHEAH HAM CHEIA
Independent Non-Executive Chairman Managing Director
Tan Sri Dato’ Ir. Hj. Zaini bin Omar, male, a Malaysian, aged Mr. Cheah Ham Cheia, male, a Malaysian, aged 63, is our
70, is our Independent Non-Executive Chairman and was Managing Director. He is also a substantial shareholder of the
appointed to our Board on 18 September 2017. He is also a Group. He was appointed to our Board on 28 February 2013. He
member of the Audit Committee, Remuneration Committee, is responsible for the overall guidance on our business direction
Nomination Committee, and Risk Management Committee. and manages the strategic development of our Group. He is
also a member of the Risk Management Committee.
He graduated with a Bachelor of Engineering from James Cook
University of North Queensland, Australia in November 1974 He graduated with a Bachelor of Science in Engineering from
and holds a Bachelor of Laws from the University of London University of Aberdeen, United Kingdom in July 1985. He has
awarded in July 1985. In November 1986, he obtained his spent his entire career in the construction industry with over
Professional Engineer status from the Board of Engineers, Kuala 39 years of experience and held multiple positions, including
Lumpur and in September 1988, he was admitted and enrolled Group Chief Executive Officer of Putrajaya Perdana Berhad
as an Advocate and Solicitor of the High Court in Malaya. where he was responsible for planning strategic business
In April 2003, he was conferred with a Doctor of Philosophy objectives and ensuring positive growth of revenue and profit
(Engineering) by University Tun Hussein Onn, Malaysia. He was, margins of the Putrajaya Perdana group.
from February 2000 to July 2005, the President of the Board
of Engineers Malaysia and is currently the Honorary Fellow He was involved in numerous notable projects including
of the Institution of Engineers Malaysia and a fellow of the The Intermark in Kuala Lumpur, Sarawak Energy Berhad
Construction Industry Development Board of Malaysia. Headquarters in Kuching, Light Rail Transit Infrastructure Works
in Putrajaya, Government Administrative Offices in Putrajaya
He has vast experience in the electricity sector, the aviation (namely Parcel C and Parcel D) and Pavilion Kuala Lumpur,
sector, the water supply sector and the public works sector. among others.
He has served in various functions including Director General
of the Public Works Department, Chairman of the National He is the father of Mr. Cheah Jun Kai, an Executive Director of
Water Services Commission, and the Head of The Special Unit GDB. He has no conflict of interest with the Group and does
for Overseas Projects in the Economic Planning Unit, Malaysia not hold directorship in any other public listed companies.
until 2009. He has not been convicted of any offences in the past five (5)
years other than traffic offences (if any). There were no public
Presently, he is an Independent Non-Executive Chairman of sanctions or penalties imposed on him by any regulatory bodies
Digistar Corporation Berhad, a company listed on the Main during the financial year.
Market of Bursa Malaysia Securities Berhad. He also sits on the
board of several private companies.
He has no family relationship with any Director and/or any

major shareholder of GDB and has no conflict of interest with
the Group. He has not been convicted of any offences in the
past five (5) years other than traffic offences (if any). There
were no public sanctions or penalties imposed on him by any
regulatory bodies during the financial year.
(cont’d)
ALEXANDER LO TZONE LEONG CHEAH JUN KAI

Executive Director Executive Director
Mr. Alexander Lo Tzone Leong, male, a Malaysian, aged 47, Mr. Cheah Jun Kai, male, a Malaysian, aged 32, is our
is our Executive Director. He is also a substantial shareholder Executive Director and the Senior Manager for the Finance,
of the Group. He was appointed to our Board on 3 August Risk Management and Business Development divisions. He was
2016. He is responsible for assisting our Managing Director appointed to our Board on 28 February 2013.
in the overall management and operation of our Group as
well as overseeing the overall operations of our construction He graduated with a Bachelor of Arts in Accounting from
projects. He is a member of the Risk Management Committee University of Hertfordshire, United Kingdom in July 2011. He
and also a fellow member of the Chartered Institute of Building started his career as a Management Trainee at AmInvestment
(“FCIOB”). Bank Berhad before joining WorleyParsons Business Service
Sdn Bhd and working his way up to Senior Business Analyst
He graduated with a Certificate in Technology (Building) from where he was responsible for the account payable stream of
Kolej Tunku Abdul Rahman, Malaysia in May 1992. He has spent the company by developing, managing and monitoring the key
more than 26 years in the construction industry and has served performance indexes and developing key controls upon high
in various capacities, including Chief Operating Officer of Putra risk functions.
Perdana Construction Sdn Bhd where he was responsible for all
daily operations of the company. He is the son of Mr. Cheah Ham Cheia, Managing Director of
GDB. He has no conflict of interest with the Group and does
He was involved in several reputable projects, including not hold directorship in any other public listed companies.
Bangsar Shopping Centre, the Government Administrative He has not been convicted of any offences in the past five (5)
Offices in Putrajaya (“Parcel D”), Pavilion Kuala Lumpur, Felda years other than traffic offences (if any). There were no public
Tower Platinum Park, The Intermark in Kuala Lumpur, Menara sanctions or penalties imposed on him by any regulatory bodies
PJH in Putrajaya, and the Ara Green Wellness & Healthcare City during the financial year.
in Kuala Lumpur.
He has no family relationship with any Director and/major

shareholder of GDB and has no conflict of interest with the
Group. He does not hold directorship in any other public listed
companies. He has not been convicted of any offences in the
were no public sanctions or penalties imposed on him by any

(cont’d)
DATUK CHIA LUI MENG KOW POH GEK

Independent Non-Executive Director Independent Non-Executive Director
Datuk Chia Lui Meng, male, a Malaysian, aged 64, is our Mdm. Kow Poh Gek, female, a Malaysian, aged 62, is our
Independent Non-Executive Director. He was appointed to Independent Non-Executive Director. She was appointed to
our Board on 18 September 2017. He is the Chairman of the our Board on 14 December 2017. She is also the Chairperson
Remuneration Committee and the Risk Management Committee,
as well as a member of the Audit Committee and the Nomination of the Audit Committee and the Nomination Committee, as
Committee. well as a member of the Remuneration Committee and the Risk
Management Committee.
He graduated with a Bachelor of Quantity Surveying (Hons) from
Universiti Teknologi Malaysia in December 1978. He was also She graduated with a Diploma in Commerce (Cost &
awarded a Bachelor of Laws (Hons) Degree from the University Management Accounting) from Kolej Tunku Abdul Rahman,
of London in August 1994 and completed the Certificate of
Legal Practice awarded by the Legal Qualifying Board Malaysia Malaysia in May 1982. She has been a Chartered Accountant of
in December 1995. He is a Fellow of the Royal Institution of the Malaysian Institute of Accountants since June 1988 and a
Surveyors, Malaysia since August 2005, a Member of the Society Fellow of The Chartered Institute of Management Accountants
of Construction Law (Kuala Lumpur and Selangor) since July 2006 since March 1993.
and a Professional Member of the Royal Institution of Chartered
Surveyors since November 2007. He was admitted to the Malaysian She has more than 37 years of experience in accounting
Bar in May 2017.
and finance, and has served in various sectors such as
He has 41 years of experience in the property development and investment holding, banking, hotels and resorts, direct
construction industry, and has worked in both the public and private selling, manufacturing and trading/services. She was the Chief
sectors. He has held multiple positions, including Group Chief Financial Officer of EITA Resources Berhad from January 2012
Executive Officer of United Malayan Land Berhad where he was to December 2017, where she was responsible for the Group’s
responsible for the overall administration of the company.
finance and accounts, investor relations functions and risk
He was involved in the development of the 1,200 acres ECOPARK management.
township in Hung Yen Province, Hanoi, Vietnam, and is currently
National Council Member of the Real Estate and Housing Mdm. Kow is also an Independent Non-Executive Director of
Developers’ Association Malaysia (“REHDA”) and Secretary of the QL Resources Berhad.
REHDA Wilayah Persekutuan Branch.
He is a Non-Executive Director of certain subsidiaries under the She has no family relationship with any Director and/or any
United Malayan Land Berhad group. He is also practicing as an major shareholder of GDB and has no conflict of interest with
Advocate & Solicitor in Soh Hayati & Co specializing in the area of the Group. She has not been convicted of any offences in the
construction law. past five (5) years other than traffic offences (if any). There
were no public sanctions or penalties imposed on her by any
Our Board is of the view that Datuk Chia Lui Meng’s involvement regulatory bodies during the financial year.
as Non-Executive Director in Alpine Return Sdn Bhd, Bangi Heights
Development Sdn Bhd, Nusajaya Consolidated Sdn Bhd, and UM
Land Builders Sdn Bhd, which are carrying on a similar trade as our
Group, does not give rise to a conflict of interest situation.
He has no family relationship with any Director and/or any major

shareholder of GDB. He has not been convicted of any offences in
the past five (5) years other than traffic offences (if any). There were
no public sanctions or penalties imposed on him by any regulatory
bodies during the financial year.
Key Management Profile
MDM. TOH FONG ENG MR. YAP WEI TONG

Chief Financial Officer Assistant General Manager for Projects
Mdm. Toh Fong Eng, female, a Malaysian, aged 57, is our Chief Mr. Yap Wei Tong, male, a Malaysian, aged 45, is our Assistant
Financial Officer since May 2017. She is responsible for the General Manager for Projects since 2014. He assists our
overall corporate finance functions of the Group and oversees Executive Director in managing the construction division and
the accounting, taxation and treasury functions as well as the was the Head of Project for several of our Group’s projects.
statutory compliance and reporting of our Group.
He graduated from Universiti Sains Malaysia with a Bachelor
She is a Fellow Member of the ACCA since November 2004. of Civil Engineering (Hons) in July 1999. He has substantial
She is also a registered chartered accountant with the Malaysian experience in the construction sector, and has held multiple
Institute of Accountants since June 2001. positions, including Senior Project Manager at Putra Perdana
Construction Sdn Bhd before joining our Group in May 2014.
She has more than 36 years of experience in accounting and
corporate finance, and has held multiple positions, including He has no family relationship with any Director and/or any
as General Manager for Finance & Accounts before she joined major shareholder of GDB and has no conflict of interest with
our Group. the Group. He does not hold directorship in any public listed
companies. He has not been convicted of any offences in the
She has no family relationship with any Director and/or any past five (5) years other than traffic offences (if any). There
major shareholder of GDB and has no conflict of interest with were no public sanctions or penalties imposed on him by any
the Group. She does not hold directorship in any public listed regulatory bodies during the financial year.
companies. She has not been convicted of any offences in the
MDM. LIM LEE LING MR. WONG CHIN TEE

Senior Manager for Human Resource Assistant General Manager
and Administration for Tenders and Contracts
Mdm. Lim Lee Ling, female, a Malaysian, aged 49, is our Mr. Wong Chin Tee, male, a Malaysian, aged 54, is our
Senior Manager for Human Resource and Administration since Assistant General Manager for Tenders and Contracts since
May 2017. She is responsible for our Group’s overall human January 2015. He oversees and manages the Group’s project
resource and office administrative matters. She joined the costs, and leads the Tender & Contract Department.
Group in May 2013.
He graduated from Robert Gordon University, Aberdeen with
She graduated from Systematic Secretarial Centre Sdn Bhd, a Bachelor of Science majoring in Quantity Surveying in June
Kuala Lumpur with a Diploma in Secretarial & Administration 1993. He has extensive experience in the construction industry
in December 1996 and was awarded the Pitman Diploma in and served in various capacities, including Senior Contract
Secretarial and Administration from The City and Guilds of Manager of Putra Perdana Construction Sdn Bhd before he
London Institute in July 1997. Prior to her current position, she joined our Group in August 2013.
has had extensive experience in secretarial and administrative
matters, and has served in various capacities, including Office He has no family relationship with any Director and/or any
Manager in the Group. major shareholder of GDB and has no conflict of interest with
the Group. He does not hold directorship in any public listed
She has no family relationship with any Director and/or any companies. He has not been convicted of any offences in the
major shareholder of GDB and has no conflict of interest with past five (5) years other than traffic offences (if any). There
the Group. She does not hold directorship in any public listed were no public sanctions or penalties imposed on him by any
companies. She has not been convicted of any offences in the regulatory bodies during the financial year.

Chairman’s Statement
DEAR ESTEEMED SHAREHOLDERS,

On behalf of the Board of Directors of GDB
Holdings Berhad, I am honored to present
to you our annual report and our audited
financial statements for the financial year
ended 31 December 2018.
2018 ECONOMIC REVIEW

The global economy maintained gross domestic product
growth at 3.7% in 2018 (2017: 3.7%), due to the strengthening
in the United States (U.S.) economy and energy exporting
economies, which was offset by weakening financial market
sentiment, trade policy uncertainty, and concerns about
China’s outlook.
Domestically, the Malaysian economy expanded at a more

moderate pace of 4.7% in 2018 (2017: 5.9%) as both private
and public sector demand growth slowed, offsetting an The domestic construction sector is expected to grow at a
increase in net exports. Growth across most sectors was slower pace of between 4.3%-4.5% in 2019 as large-scale
constrained by uncertainties surrounding public policy infrastructure projects across the country are being reviewed.
following the result of the 14th General Election. Of note,
the construction sector registered lower growth compared Nevertheless, we opine that our strong track record for
to the prior year due to weaker activity in the residential delivering large-scale high-rise construction projects ahead
sub-sector. of their contractual completion dates while maintaining
high quality and safety standards will give us a competitive
External factors also negatively impacted the overall edge in securing new contracts.
outlook, with rising interest rates in the U.S., and trade
tensions between the U.S. and China influencing the
Malaysia Ringgit to weaken against the U.S. Dollar in 2018. APPRECIATION
I would like to express my deepest appreciation to the Board
2019 OUTLOOK of Directors, key senior management, and all employees of
GDB for their commitment in maintaining our track record
The International Monetary Fund has downgraded global for early completion of projects, while maintaining stringent
economic growth projections to 3.5% in 2019 due to higher quality and safety standards.
tariffs resulting from trade tensions between the U.S. and
China, as well as tightening financial conditions in emerging My sincere thanks also goes out to our business partners,
markets. associates, suppliers, customers, and valued shareholders
for their steadfast support. We hope that you will continue
Back home, the Ministry of Finance is forecasting a slight to stand by us as we strive to attain new achievements and
pickup in the rate of economic expansion to 4.9% in 2019, deliver greater shareholder value.
supported by growing private sector expenditure due to
higher employment and wages, as well as benign inflation.
However, public expenditure is expected to decrease in Sincerely,
2019 due to reduction in capital outlays.
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar
Chairman

Management Discussion & Analysis
DEAR VALUED SHAREHOLDERS,

I am pleased to state that our first year as a listed entity, which is also our fifth year
since incorporation in 2013, demonstrated our resilience as we delivered commendable
profits despite the challenging operating environment.
Therefore, it is my privilege to update you on the performance of GDB Holdings Berhad

(“GDB”) for the financial year ended 31 December 2018 (“FYE 2018”), and provide you
with an overview of our growth strategies.
BUSINESS OVERVIEW We have also obtained the Quality Assessment System in

Construction (“QLASSIC”), Safety and Health Assessment
GDB is a construction services provider in Malaysia, System in Construction (“SHASSIC”), Building Quality
specialising in high-rise residential, commercial and mixed Assessment System (“BuildQAS”), Construction Quality
development buildings. Assessment System (“CONQUAS”) and the 5-S certifications
for our projects.
As a main or principal works contractor, the Group is
responsible for the implementation of construction Notably, GDB is the first construction company in Malaysia
projects. This includes the engagement of subcontractors to be certified by Hong Kong 5-S Association Ltd and SIRIM
as well as daily management of all the works necessary for STS in December 2018 for implementing the 5S and Lean
completing projects on time and in accordance with our 5S Program.
customers’ specifications.
GDB embraces the use of cutting-edge technology and
GDB is registered with the Construction Industry efficient practices to provide value engineering and deliver
Development Board of Malaysia (“CIDB”) as a Grade G7 projects ahead of their contractual completion dates. These
contractor, which enables GDB to tender for projects technologies and practices include:
with unlimited value in the categories of general building,
general civil engineering, and mechanical works. • Building Information Modelling, which provides
“virtual reality” insight throughout the building
The Group is also equipped with the Sijil Perolehan Kerja construction stages. This allows for early clash
Kerajaan as a Grade G7 contractor, which allows us to detection and analysis, which enhances the efficiency
participate in tenders for Government jobs with contract in implementing large-scale projects and reduces
value above RM10.0 million. completion time.
In line with our commitment to comply with stringent quality, • Industrialised Building System, which is a construction
safety, and environmental standards, we have obtained process that speeds up project completion by utilising
multiple certifications such as ISO 9001:2015 Quality off-site pre-fabricated components and on-site
Management System, ISO 14001:2015 Environmental installation.
Management System, and OHSAS 18001:2007 Occupational
Health and Safety Management System. • The 5-S Standards which develops and enhances
the practices of Structurise, Systematise, Sanitise,
Standardise and Self-discipline with the goal of
improving the safety, quality and environmental aspects
of our projects.

(cont’d)
Exemplary Standards
• The SHASSIC certification evaluates the safety and

health performance of contractors in construction
works/projects. GDB attained SHASSIC certificates
from the CIDB by scoring 5 stars (96%) for Etiqa Office
Tower and 5 stars (98%) for Westside III.
• The BuildQAS certification evaluates the quality of

workmanship of construction works. We achieved high
BuildQAS scores of 80.6% for Etiqa Office Tower and
81.8% for Westside III.
• The QLASSIC certification is another measure that

evaluates the quality of workmanship of construction
works. We obtained the QLASSIC certificate from the
CIDB with a score of 78% for Etiqa Office Tower.
• GDB also adhered to the Green 5-S standard, a

performance improvement system to achieve better
quality, health and safety, environment conservation,
productivity, and professional image. To this end, we
OPERATIONS OVERVIEW were awarded with the certificates of achievement by
SIRIM for implementing the Green 5-S Program for
Successful Delivery Etiqa Office Tower and Westside III.
Building on our core expertise, GDB maintained its stellar Steady Progress
reputation in the construction sector as we successfully
delivered the Etiqa Office Tower and Westside III projects As at 31 December 2018, our current order book stood
ahead of schedule, while maintaining admirable standards at a healthy level of RM579.4 million, which provides
throughout the process. positive earnings visibility until third quarter of the
financial year ending 31 December 2020. The sizable
We received the Certificate of Practical Completion order book comprises ongoing projects of AIRA Residence
(“CPC”) dated 13 July 2018 for the 38-storey Etiqa Office condominium in Damansara Heights, and the 26-storey
Tower located along Jalan Bangsar, ahead of its contractual Menara Hap Seng 3 commercial building within the Kuala
completion date on 31 July 2018. Lumpur city centre.
Later on 20 October 2018, GDB received the CPC for the Construction progress for the AIRA Residence and Menara
49-storey Westside III condominium, 61 days ahead of Hap Seng 3 projects have been smooth, and we have
its contractual completion date on 20 December 2018. passed the initial stage of structural construction. We are
Westside III is currently the tallest structure in Desa ParkCity, now able to accelerate the pace of work to propel revenue
and is our second project delivered to Perdana ParkCity. recognition in the financial year ending 31 December 2019.
We had, in October 2016, handed over the 45-storey One
Central Park condominium to the client 107 days ahead of
schedule. FINANCIAL OVERVIEW
Additionally, GDB received the following accolades for the The completion of two projects together with initial stages
Etiqa Office Tower and Westside III projects, in recognition of construction for ongoing projects resulted in GDB’s
of our commitment in adhering to the stringent quality, revenue being reduced by 7.5% to RM274.6 million in FYE
safety, and environmental standards. 2018 from RM296.8 million previously.

(cont’d)
GDB had no borrowings outstanding as at 31 December

2018, and ended the year under review with a significant
net cash position. Our strong balance sheet will provide
us with the flexibility to effectively navigate the prevailing
challenging environment in the construction industry.
The Group’s total liabilities decreased by 3.3% to RM108.6

million as at 31 December 2018 from RM112.3 million as at
31 December 2017 on lower trade payables due to timing
of certification and payments.
Total equity rose 160.8% to stand at RM104.1 million as

at 31 December 2018 compared to RM39.9 million as at
31 December 2017 driven by higher retained earnings, and
increased share capital from our IPO exercise.
CAPITAL EXPENDITURE
In FYE 2018, GDB incurred RM3.5 million for the purchase of
plant and equipment comprising one new passenger hoist,
one new cargo lorry, modular system, other construction
site equipment, as well as computer software and
hardware. The Group’s capital expenditure requirements
are dependent on the scale and number of projects that are
being undertaken in any given period.
DIVIDEND
Despite the lower revenue, profit before tax (“PBT”) rose
21.1% in FYE 2018 to RM36.9 million from RM30.5 million GDB paid two interim single-tier dividends to shareholders
in the prior year. The higher profitability was driven by lower in respect of FYE 2018 amounting to a total of 2.0 sen per
amounts incurred for preliminaries related to the early share.
delivery of the Etiqa Office Tower and Westside III projects.
Preliminaries include site management cost, utilities, rental The total dividend payout amounted to RM12.5 million,
expense of machinery and equipment and other related representing 44.8% of FYE 2018 net profit. Our dividend
project maintenance and overhead expenses. payout ratio exceeded our dividend policy to distribute up
to 30.0% of our annual net profit as we achieved strong net
In line with the growth in PBT, GDB reported a commendable profit growth in FYE 2018. This enabled us to reward our
23.9% increase in net profit to RM27.9 million in FYE 2018 shareholders for their participation in the Group’s success.
from RM22.5 million previously. The Group’s effective tax
rate dipped to 24.5% in FYE 2018 from 26.2% in the prior We believe that dividends are a key component in creating
year. However, the effective tax rate remained slightly shareholder value, and we intend to continue our dividend
above the statutory tax rate of 24.0% mainly due to certain policy going forward.
non-tax deductible expenses.
GDB’s total assets grow by 39.8% to RM212.8 million as at GROWTH STRATEGIES

31 December 2018 from RM152.2 million as at 31 December
Despite the expected slowdown in the construction sector,
2017, mainly attributed to higher cash and cash equivalents
GDB will strive to secure new projects to sustain our growth.
including proceeds from the Initial Public Offering (“IPO”)
We are hopeful of achieving positive results as we leverage
exercise which was completed on 27 March 2018.
on our track record of delivering projects ahead of their
contractual completion dates for reputable customers that
prioritize high quality workmanship.

(cont’d)
Securing New Contracts in the High-Rise Construction Exploring Opportunities to Penetrate the Civil and
Segment Infrastructure Construction Segment
We are actively pursuing new contracts to build high-rise While we still intend to establish a project team dedicated
residential, commercial, and mixed development projects, to civil engineering projects, this plan has been delayed
specifically in the high-end segment where we have due to prevailing market uncertainties with the scaling
extensive experience and the requisite technical expertise. down or deferment of infrastructure projects in Malaysia, as
well as the private sector adopting a cautious approach in
GDB’s tender book as at end-March 2019 stood at launching new projects.
RM1.3 billion, consisting of building works for high-rise
residential, mixed retail and office building, a hotel and a We are closely monitoring the situation, and we maintain
factory. All these jobs tendered for are within Klang Valley. our target of diversifying our business to include civil and
infrastructure construction services at the appropriate time.
We will continue to identify ways to further enhance the
competitiveness of our bids as we strive to replenish our Industry reports indicate that the Government is poised
order book. This includes raising the bar in employing to make significant infrastructure investments over the
cutting-edge technologies and construction methods to medium-to-long term to support the country’s economic
achieve quicker project delivery times and better overall growth. We believe that this will provide us with the
quality in our construction works. opportunities to enter the civil engineering space.
Targeting Construction Works in Other Building Segments Extending Suite of Services within Construction Sector
The Group remains committed to venturing into other On 17 April 2019, GDB and its wholly-owned subsidiary
building segments such as hospitals, schools, universities, Grand Dynamic Builders Sdn Bhd entered into a binding
hotels, convention centers and shopping malls. We believe term sheet with Goh Eng Ngai, Wong Choo Keong and
that our success in the high-rise construction segment can Tan Loo Loo (collectively referred to as “Sellers”) in relation
be transferred to other building segments. to the proposed acquisition of 70% equity interest in Eco
Geotechnics Sdn Bhd (“EGSB”).
Going forward, we will continue to tender for contracts in
other building segments by offering a value proposition
centered on timely completion, quality and safety.

(cont’d)
EGSB is principally involved in providing services as a

construction contractor specialising in geotechnical and
foundation engineering works. The proposed acquisition
will enable GDB to venture into the piling business, to
expand its customer base and to create opportunities
with an added scope of jobs the Group can tender for.
Simultaneously, it will also enhance the Group’s prospects
when tendering for jobs which involve sub-structure works
as well as to create opportunities in securing superstructure
works where contract owners call for separate sub-structure
and superstructure tenders for a project.
The proposed acquisition is subject to further negotiations

between GDB and sellers and due diligence review, with
a view to enter into a definitive share sale agreement
within 60 days from the signing of the Term Sheet or such
extended period as mutually agreed. Rising Building Material Costs
Any increase in building materials cost such as steel and

RISKS cement could negatively impact our margins. To mitigate
this risk, we ensure that there are proper mechanisms to
While GDB is aware of the various risks facing the manage cost overrun, and that adequate project and
construction industry, we are confident that we have the resource management processes are in place to prevent
financial strength and experience needed to effectively undesirable consequences.
mitigate our risks. The following are the key risks faced by
the Group:
APPRECIATION
Oversupply of Property
I would like to take this opportunity to acknowledge
The oversupply of residential property particularly in the the continuous efforts of GDB’s management team and
Klang Valley may lead property developers to undertake employees in powering through a challenging year to attain
fewer launches, or defer project timelines. This may in turn strong profit growth in our first year as a listed company.
impact our ability to secure new contracts to replenish
our order book, and may adversely impact our financial I would also like to extend my heartfelt gratitude to our
performance. business partners, associates, suppliers, customers, and
valued shareholders for maintaining their confidence in us.
To mitigate this risk, the Group will continue to identify ways
to enhance the competitiveness of our bids to participate in Going forward, we remain dedicated to reaching new
project rollouts from property developers. heights as we chart our course towards becoming a leading
player in Malaysia’s construction industry.
Competition
More intense competition could put downward pressure Sincerely,

on our margins as construction players lower their prices
to secure projects. We are confident that GDB’s track Cheah Ham Cheia
record for delivering projects ahead of their contractual Managing Director
completion date while adhering to stringent quality and
safety standards will help us stand out in an environment
where property developers and project owners have their
pick of main contractors.

Sustainability Statement
Sustainability is taken seriously by the top management of GDB, and emphasised in every level of the Group. To this
end, sustainability is embedded in our mission statement to safeguard Mother Nature and to build dedicated and lasting
relationships with our valued stakeholders.
GDB has established a robust corporate governance structure that is overseen by our Board of Directors to ensure that we
sufficiently and competently discharge our responsibilities to our customers, regulatory authorities, suppliers, subcontractors,
employees, shareholders, and society at large.
In line with our commitment to be a responsible corporate citizen, we have identified four key areas where we can have a
positive impact on society. These key areas encompass the health, safety and well-being of our employees, our environmental
impact, the communities where we operate, and the marketplace.
I. HEALTH, SAFETY AND WELL-BEING OF EMPLOYEES
We understand that our employees are the most crucial component to our success, and we take issues regarding the health,
safety and well-being of our employees very seriously.
To this end, we place great emphasis on co-operation between our project teams and subcontractors to minimise potential
safety hazards and maintain a safe working environment at all our construction sites. The Group’s adherence to the OHSAS
18001:2007 Occupational Health and Safety Management System international standard demonstrates our focus on the
occupational health and safety of our employees as well as other personnel at all construction sites.
Additionally, GDB strives to provide employees with adequate training and career advancement opportunities to help them
reach their full potential professionally. The Group also aims to enhance teamwork and forge closer bonds between employees
by organising events such as Annual Dinner and gatherings to celebrate the achievement of key project milestones.
We place great importance on preserving the dignity of our employees, and we avoid engaging in any form of discrimination.
Decisions regarding promotion and compensation are made based on employees’ merit and their contribution to the success
of the Group.
We also aim to promote gender equality and diversity in the workplace, and we actively provide opportunities for women to
take on leadership roles in the Group. As at 31 December 2018, we have one female Independent Non-Executive Director
on the Board of Directors and two women in our Key Senior Management team.
II. ENVIRONMENT
GDB endeavours to minimise its environmental footprint and reduce wastage by reusing, reducing and recycling construction
materials. The Group has also established proper protocols for the responsible disposal of waste from our construction sites.
In line with our target of being an environmentally-friendly construction services provider, we have installed waste water
treatment systems at our construction sites to mitigate the risk of pollution. The treated waste water is subsequently available
for general use at our construction sites.
The Group also performs regular maintenance on its fleet of machinery and equipment which ensures efficient performance
and reduces carbon emissions. Environmental impact is also an important consideration for us when acquiring new machinery
and equipment.

(cont’d)
We prioritise initiatives to increase the usage of eco-friendly materials, and validate the sustainability of our building materials
sources. Additionally, we are committed in our compliance with the ISO 14001:2015 Environmental Management System
international standard to further enhance our environmental performance.
We also use energy saving lightbulbs at our office and construction sites in line with the United Nations (“UN”)’s Sustainable
Development Goal of using affordable and clean energy. Additionally, the majority of our workers commute to our construction
sites by bicycle which supports the UN’s Sustainable Development Goal of promoting sustainable cities and communities.
Our employees also make a conscious effort to reduce plastic usage by bringing their own eco-friendly containers for
food and beverages, which is in line with the UN’s Sustainable Development Goal of keeping the oceans clean and safe by
avoiding the use of plastic bags.
The Group is cognizant of the public’s concerns surrounding noise, vibration and dust pollution. We therefore make it a top
priority to put in place necessary mitigation measures such as setting up noise barriers at identified areas of our construction
sites.
III. COMMUNITY
We aim to play a significant role in the flourishing of the communities where we operate. In the year under review, we
sponsored a trip to Zoo Negara for 50 less fortunate primary school students from SJK(C) Kundang, Rawang.
We also organised a charity drive for Pertubuhan Kebajikan Anak-anak Yatim dan OKU Mesra in Petaling Jaya, where we
collected and distributed RM5,700 in cash and more than one month worth of food supplies for the less privileged members
of society.
Furthermore, we had the opportunity to contribute to the society through our core business as we undertook construction
works to renovate an existing hangar building to a dementia care centre in Segambut, Kuala Lumpur.
We adhere to stringent health, safety and quality standards in our projects to deliver buildings that provide future owners and/
or tenants with a better quality of life. Furthermore, we are steadfast in adhering to the ISO 9001:2015 Quality Management
System international standard to enhance the quality of workmanship in our projects.
GDB employs 176 people directly, providing them with employment and opportunities to advance their careers. We also
cultivate strong relationships with our subcontractors and suppliers, providing them with the support to expand their
operations and provide more employment opportunities in the construction sector.
IV. MARKETPLACE
We prioritise the upholding of sound corporate governance principles in our dealings with all stakeholders.
The Group has put in place rigorous procedures to ensure our suppliers and subcontractors consistently meet high quality,
safety, and environmental standards when working on our projects. We also take measures to ensure that we engage
suppliers and subcontractors that conduct their business in an ethical manner, especially in the areas of labour rights,
business integrity, and legal compliance.
We always endeavor to reach commercially fair terms for all parties in our negotiations with suppliers and subcontractors. We
believe in paying our suppliers and subcontractors reasonably, and we have put in place systems to ensure that our business
associates are paid within the agreed dates.

(cont’d)
GDB continuously seeks to enhance its competitiveness and strengthen its value proposition. To this end, we have embraced
cutting-edge technologies and construction methods to maintain our track record for delivering projects in a timely manner,
and in accordance with the exacting requirements of our customers.
For instance, we are early adopters of Industrialised Building System which speeds up project completion by utilising off-site
pre-fabricated components and on-site installation.
While we aim to constantly hone our competitive edge, we understand the importance of upholding fair competition in the
marketplace. Therefore, we do not engage in unethical conduct.
GDB is dedicated to protecting shareholders’ rights and creating shareholder value. To this end, we will strive to deliver
material information in a timely manner, while maintaining transparency when reporting on our financial performance. We
also intend to continue our dividend policy of paying up to 30.0% of our annual net profit as dividends to shareholders, in
appreciation for their participation in our success.

Corporate Governance Overview Statement
The Board of Directors (“Board”) of GDB Holdings Berhad (“Company”) recognises the importance of good corporate
governance and is committed towards ensuring that the Company and its subsidiary (“Group”) adopt and implement optimal
governance framework by applying the principles and recommendations of the Malaysian Code of Corporate Governance
(“MCCG”). These principles and recommendations are observed and practised throughout the Group so that the businesses
and affairs of the Group are conducted with integrity, transparency, accountability and professionalism with the objective of
safeguarding the best interest of all stakeholders and ultimately enhancing shareholders’ value.
The Board is pleased to present the following statement on how the Group has adopted and applied the principles and
complied with the best practices outlined in the MCCG and pursuant to Rule 15.25 of the ACE Market Listing Requirements
(“Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Securities”).
This Corporate Governance Overview Statement is augmented with a Corporate Governance Report (“CG Report”) based
on a prescribed format to provide a detailed articulation on the application of the Group’s corporate governance practices
as set out in the MCCG throughout the financial year ended 31 December 2018 (“FYE 2018”). The CG Report is available on
the Company’s website, www.gdbhb.com.my, as well as via an announcement on the website of Bursa Securities.
PRINCIPLE A - BOARD LEADERSHIP AND EFFECTIVENESS
PART I – BOARD RESPONSIBILITIES
1.1 Board and Board Committees
The Board recognises its pivotal role in the stewardship of its direction and operations, and ultimately the enhancement
of long-term shareholders’ value. To fulfil this role, the Board is responsible for the overall performance and business
affairs of the Group, amongst others, reviewing and adopting corporate strategies, enhancing corporate values,
overseeing the conduct of the Group’s businesses to evaluate whether they are properly managed, reviewing the
adequacy and effectiveness of the Group’s internal control systems and management information systems ensuring
compliance with applicable laws, regulations, rules, directives and guidelines.
The Group is led and managed by effective and experienced Board comprising members with a wide range of
experience and qualifications.
In order to ensure the effective discharge of its fiduciary duties and execution of specific responsibilities, the Board has
established Board Committees as follows to assist the Board in the running of the Group:-
a. Audit Committee;
b. Nomination Committee;
c. Remuneration Committee; and
d. Risk Management Committee
Each Committee operates in accordance with clearly defined terms of reference. These Committees are authorised
by the Board to deal with and to deliberate on matters delegated to them within their respective terms of reference
and report to the Board on their proceedings and deliberation together with its recommendations to the Board for
approval.

(cont’d)
1.2 Chairman

The Chairman of the Board, Tan Sri Dato’ Ir. Hj. Zaini Bin Omar is an Independent Non-Executive Chairman and is
primarily responsible for matters pertaining to the Board and ensures the orderly conduct and performance of the
Board. The Chairman is committed to good corporate governance practices and has been leading the Board towards
a high performing culture.
The key responsibilities of the Chairman, amongst others, are as follows:
a. To provide leadership to the Board.
b. To oversee the effective discharge of the Board’s supervisory role.
c. To facilitate the effective contribution of all Directors.
d. To conduct and chair Board Meetings and General Meetings of the Company.
e. To manage Board communications and Board effectiveness and effective supervision over Management.
f. To ensure that quality information to facilitate decision-making is delivered to the Board on timely manner.
g. To ensure Board Meetings and General Meetings are in compliance with good conduct and best practices.
h. To promote constructive and respectful relations between Board members and between the Board and the
Management.
i. To jointly represent the Company together with the Managing Director to external groups such as shareholders,
creditors, consumer groups, local communities and federal, state, and local governments.
1.3 Chairman and Managing Director (“MD”)
There is a clear division of roles and responsibilities between the Chairman and MD to further enhance the existing
balance of power and authority, such that no one individual has unfettered powers of decision making.
The Chairman of the Board is primarily responsible for the leadership, effectiveness, conduct and governance of the
Board while the MD has overall responsibilities over the business operations and day-to-day management of the
business and implementation of the Board’s policies and decisions.
1.4 Qualified and Competent Company Secretary
The Board is supported by a competent and qualified Company Secretary under Section 235(2) of the Companies Act
2016. The Company Secretary is a member of the Malaysian Association of Companies Secretaries and possesses over
25 years of experience in corporate secretarial practices.
During the FYE 2018, the Company Secretary had discharged her duties and responsibilities accordingly, and had and
will continue to constantly keep herself abreast on matters concerning company law, corporate governance, and with
changes in the regulatory environment through continuous training and industry updates.
The Board is satisfied with the performance and support rendered by the Company Secretary in discharging her
functions and duties.

(cont’d)
1.5 Access to Information and Advice
The Board recognises that the decision-making process is highly dependent on the quality of information furnished.
In furtherance of this, every Director has access to all the information within the Company or the Group through the
following means:-
a. Members of Key Senior Management to attend Board and/or Board Committees meetings by invitation, to
report on areas which are within their responsibility for the Board’s decision making and effective discharge of
the Board’s responsibilities.
b. The notices of meetings and board papers are prepared and circulated to the Directors and/or Board Committees
Members at least five (5) working days prior to the scheduled Board Meetings.
c. Regular updates and advices on new regulations, guidelines or directives issued by Bursa Securities, Securities
Commission of Malaysia and any other relevant regulatory authorities.
d. The Directors, collectively or individually, may seek independent professional advice and information in the
furtherance of their duties at the Company’s expense, if so required.
1.6 Board Charter

The Company has formalised and adopted a Board Charter which sets out the functions, authority, roles and
responsibilities of the Board as well as the various internal processes and principles governing the Board. The Board
Charter also serves as a source of reference and primary induction literature, providing insights to new Board members.
The Board Charter would be periodically reviewed and updated in accordance with the needs of the Company and
any new regulations that may have an impact on the discharge of the Board’s responsibilities. The Board Charter is
available at the Company’s website, www.gdbhb.com.my.
1.7 Code of Ethics and Conduct
The Board has adopted a Code of Ethics and Conduct which is incorporated in the Board Charter of the Company
which serves as an authoritative document that governs the conduct of Directors and employees of the Group and is
available at the Company’s website, www.gdbhb.com.my.
1.8 Whistle Blowing Policy
The Board has also adopted a Whistle Blowing Policy to provide avenue for all employees of the Group and members
of the public to report or disclose about any violations or wrongdoings that may be observed in the Group without fear
of retaliation should they act in good faith when reporting such concerns.
The Whistle Blowing Policy is available at the Company’s website, www.gdbhb.com.my.

(cont’d)
PART II – COMPOSITION OF THE BOARD
2.1 Composition and Board Balance
The Board consists of six (6) members comprising three (3) Executive Directors and three (3) Independent Non-
Executive Directors. This is in compliance with Rule 15.02 of the Listing Requirements of Bursa Securities and Practice
4.1 of the MCCG, as follows:-
Chairman
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar, Independent Non-Executive Chairman
Members
Mr. Cheah Ham Cheia, Managing Director
Mr. Alexander Lo Tzone Leong, Executive Director
Mr. Cheah Jun Kai, Executive Director
Datuk Chia Lui Meng, Independent Non-Executive Director
Mdm. Kow Poh Gek, Independent Non-Executive Director
The Board members have diverse backgrounds and experiences in various fields. Collectively, they bring a broad range
of skills, experience and knowledge to manage the Group’s business.
The presence of Independent Non-Executive Directors play a pivotal role in incorporating accountability as they
provide unbiased and independent views, advice and judgement, ensuring a balanced and impartial Board decision
making process as well as safeguarding the interests of other parties, such as minority shareholders.
The profiles of these Directors are provided on pages 7 to 9 in this Annual Report.
2.2 Tenure of Independent Directors
The Board is fully aware that the tenure of an Independent Non-Executive Director shall not exceed a cumulative term
of nine (9) years as recommended by the MCCG. However, if the Board intends to retain a Director who has served as
an Independent Director of the Company for a cumulative term of more than nine (9) years, the Board must justify its
decision and seek the shareholders’ approval at a general meeting.
During the financial year under review, none of our Directors has served the Board as an Independent Non-Executive
Director of the Company for a cumulative term of more than nine (9) years.
2.3 New Appointment to the Board
The Board through the Nomination Committee is responsible for reviewing recommendations of any new appointments
to the Board. In reviewing these recommendations, the Nomination Committee considers the required mix of skills
and experiences which the Directors would bring to the Board and his or her time commitment. Any new nomination
is to be reviewed by Nomination Committee and subsequently recommended to the full Board for assessment and
endorsement.
In fostering the commitment of the Board to devote sufficient time to carry out their responsibilities, each Director is
required to notify the Chairman of the Nomination Committee and the Board prior to accepting directorships in the
listed issuer outside the Group. All Directors shall not hold more than five (5) directorships in other listed issuer as
required under Rule 15.06 of the Listing Requirements of Bursa Securities.

(cont’d)
2.4 Gender Diversity
The Company has adopted a Gender Diversity Policy on 23 November 2018 which provides a framework for the
Company to improve its gender diversity at Board level. The Nomination Committee regularly assesses the optimum
size, required mix of skills, experience, independence and diversity required collectively for the Board to effectively
fulfil its role.
2.5 Nomination Committee (“NC”)
The NC comprised of three (3) members, all of whom are Independent Non-Executive Directors and they are responsible
to make independent recommendations for new appointments to the Board. The composition of the NC is as follows:-
Name Designation
Mdm. Kow Poh Gek Chairperson, Independent Non-Executive Director

Tan Sri Dato’ Ir. Hj. Zaini Bin Omar Member, Independent Non-Executive Chairman
Datuk Chia Lui Meng Member, Independent Non-Executive Director
The Terms of Reference of the NC is available at the Company’s website, www.gdbhb.com.my.
The NC is responsible for identifying and recommending suitable candidates for Board membership and also assessing
the performance of the individual Directors. The Board would have the final decision on the appointment. This process
is to ensure the Board membership are determined by the relevant skills, talents and experience in order to support
the strategic direction and needs of the Group.
During the FYE 2018, the following are the summary of activities undertaken by the NC:-
a. Reviewed and recommended to the Board for adoption of evaluation forms comprises annual performance
evaluation of the Board and Board Committees as a whole, annual assessment of the Audit Committee, annual
evaluation of independence of Directors and annual evaluation of the Managing Director and Executive Directors.
b. Considered and set out the expectations on time commitment for the members of the Board and protocol for
accepting new directorships.
c. Considered and recommended to the Board for consideration, the re-election of Mr. Cheah Ham Cheia who
retired pursuant to Clause 85 of the Company’s Constitution at the last Annual General Meeting (“AGM”) held
on 7 June 2018.
d. Considered and recommended to the Board for consideration, the re-election of Tan Sri Dato’ Ir. Hj. Zaini Bin
Omar, Datuk Chia Lui Meng and Mdm. Kow Poh Gek who retired pursuant to Clause 91 of the Company’s
Constitution at the last AGM held on 7 June 2018.

(cont’d)
2.6 Annual Evaluation of the Board and Board Committees as a whole
The NC has a formal assessment criterion to assess the effectiveness of the Board and Board Committees as a whole
and the contribution of each individual Director. The Board, through the annual review by the NC on the size and
composition of the Board, will determine if the Board has the right size and sufficient diversity with independence
elements that fit the Company’s objectives and strategic goals.
In evaluating performance of Non-Executive Directors, the assessment comprises amongst others, the attendance at
Board or Committee meetings, adequate preparation for Board and/or Committee meetings, regular contribution
to Board or Committee meetings, personal input to the role and other contributions to the Board or Committee as
a whole. Whilst, in evaluating performance of Executive Directors, assessment was carried out against diverse key
performance indicators, amongst others, financial, strategic, operations management and business plans, product
development, conformance and compliance, shareholders’/investors’ relations, employees training and development,
succession planning and personal input to the role.
2.7 Attendance of Board and Board Committee Meetings
The Board meets at least once in every quarter on a scheduled basis and additional meetings to be convened as and
when deemed necessary by the Board. All the Directors fulfilled the requirements of the Listing Requirements of Bursa
Securities of having attended at least 50% of the Board meetings held by the Company during the FYE 2018.
The attendance record of the Directors at Board and Board Committee meetings for the FYE 2018 is set out as follows:-
Meeting Attendance Board AC NC RC RMC
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar 3/5 3/5 2/2 1/1 0/1
Mr. Cheah Ham Cheia 5/5 - - - 1/1
Mr. Alexander Lo Tzone Leong 5/5 - - - 1/1
Mr. Cheah Jun Kai 4/5 - - - -
Datuk Chia Lui Meng 5/5 5/5 2/2 1/1 1/1
Mdm. Kow Poh Gek 5/5 5/5 2/2 1/1 1/1

2.8 Directors’ Training
The NC has taken on the responsibility in evaluating and determining the specific and continuous training needs
of the Directors on a regular basis. The Directors have attended courses/conferences and/or in house training from
time to time to enhance their skills and knowledge and to keep abreast with the relevant changes in laws, Listing
Requirements, regulations and business environment in order to discharge their duties more effectively.
The Directors are mindful that they should continually attend seminars and courses to keep themselves abreast
with the latest economic and corporate developments as well as new regulations and statutory requirements. The
Directors are also encouraged to evaluate their own training needs on a continuous basis and to determine the relevant
programmes, seminars, briefings or dialogues available that would best enable them to enhance their knowledge and
contributions to the Board.

(cont’d)
The training programmes, seminars and/or conferences attended by the Directors during the FYE 2018 are as follows:-
Name of Directors Training attended

Datuk Chia Lui Meng • Mandatory Accreditation Programme for Directors of Public Listed
Companies
• The New Constitution under the Companies Act 2016
Mdm. Kow Poh Gek • Mandatory Accreditation Programme for Directors of Public Listed
Companies
• Sustainability Engagement Series for Directors / Chief Executive
Officer
Mr. Cheah Ham Cheia • Mandatory Accreditation Programme for Directors of Public Listed
Companies
Mr. Alexander Lo Tzone Leong • Mandatory Accreditation Programme for Directors of Public Listed
Companies
• Employee Retention Planning (ERP) Strategies Workshop
• “Construction Green 5-S Blue Belt” Management Course
Mr. Cheah Jun Kai • Mandatory Accreditation Programme for Directors of Public Listed
Companies
• 2019 Budget Seminar – How will 2019 Budget Impact our Economy &
Construction Industry
Although Tan Sri Dato’ Ir. Hj. Zaini Bin Omar has not been able to attend a structured training programme during the
financial year under review due to work and personal commitments, he continued to gain updates through briefings
by the Company Secretary, Internal and External Auditors during quarterly meetings, communications with other
Directors as well as the daily work exposures.
The Directors will continue to participate in future professional development programme from time to time as necessary
to enable them to carry out their roles and duties effectively.

(cont’d)
PART III – REMUNERATION
3.1 Remuneration Policy
The Board has in place a formal Remuneration Policy for Directors and Key Senior Management. The Remuneration
Policy establishes a formal and transparent procedure for developing a structure for the remuneration of Directors
and Key Senior Management of the Company with the objective of supporting and driving business strategy and the
long-term interests of the Company.
The aim of the Remuneration Policy is to:
a. determine the level of remuneration of Directors and Key Senior Management;
b. attract, retain and reward high performing, experienced and qualified Directors and Key Senior Management by
providing remuneration commensurate with their responsibilities and contributions, and be competitive with the
industry; and
c. encourage value creation for the Company by aligning the interests of Directors with the long-term interests of
shareholders.
The Board, through the Remuneration Committee will conduct a periodic review of the criteria to be used in
recommending the remuneration package of Directors and Key Senior Management to ensure that it is in line with
current market practices and needs.
The Remuneration Policy is available at the Company’s website, www.gdbhb.com.my.

3.2 Remuneration Committee (“RC”)
The RC consists of all Independent Non-Executive Directors. The members of the RC are as follows:-
Name Designation
Datuk Chia Lui Meng Chairman, Independent Non-Executive Director

Mdm. Kow Poh Gek Member, Independent Non-Executive Director
The RC is responsible for recommending the remuneration packages of Executives Directors to the Board for approval.
Individual Directors shall abstain from decisions in respect of their individual remuneration. The RC recommends the
Directors’ fees and/or benefits payable to Non-Executive Directors, which are deliberated and decided at the Board
before it is presented at the Annual General Meeting for shareholders’ approval.
The Terms of Reference of the RC is available at the Company’s website, www.gdbhb.com.my.

(cont’d)
3.3 Remuneration of Directors
The details of the remuneration of the Directors of the Company and the Group during the FYE 2018 are as follows:-
The Company
Benefits Meeting Other

Name of Directors Fees Salaries EPF in Kind Allowance Bonus Benefits# Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Tan Sri Dato’ Ir. Hj. Zaini

Bin Omar 60 - - - 2 - - 62
Mr. Cheah Ham Cheia - 504 30 - - - - 534
Mr. Alexander Lo
Tzone Leong - 456 55 - - - 1 512
Datuk Chia Lui Meng 42 - - - 3 - - 45
Mr. Cheah Jun Kai - 98 12 - - - 1 111
Mdm. Kow Poh Gek 45 - - - 3 - - 48
TOTAL 147 1,058 97 - 8 - 2 1,312

The Group
Benefits Meeting Other

Name of Directors Fees Salaries EPF in Kind Allowance Bonus Benefits# Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Tan Sri Dato’ Ir. Hj. Zaini

Bin Omar 60 - - - 2 - - 62
Mr. Cheah Ham Cheia - 504 58 - 210 334 1,106
Mr. Alexander Lo
Tzone Leong - 456 117 21 - 228 356 1,178
Datuk Chia Lui Meng 42 - - - 3 - - 45
Mr. Cheah Jun Kai - 98 19 - - 41 49 207
Mdm. Kow Poh Gek 45 - - - 3 - - 48
TOTAL 147 1,058 194 21 8 479 739 2,646

Note:-
# Other benefits include project completion reward, petrol card and etc.

(cont’d)
3.4 Remuneration of Key Senior Management
The aggregate remuneration and benefits paid to the Key Senior Management of the Group for the FYE 2018 are as
follows:-
Remuneration Band Number of Key Senior Management
RM200,001 to RM250,000 1
RM250,001 to RM350,000 -
RM350,001 to RM400,000 1
RM400,001 to RM450,000 -
RM450,001 to RM500,000 1
RM600,001 to RM650,000 1
Due to confidentiality and sensitivity of the remuneration package of Key Senior Management as well as security
concerns, the Company opts not to disclose the Key Senior Management’s remuneration components on named basis
in the bands of RM50,000.
The Board is of the view that the disclosure of the Key Senior Management’s remuneration components on named
basis would not be in the best interest of the Company as it may detrimental to the Company’s human resource
management due to the competitive nature for talents within the construction industry.
The Board is of the view that the disclosure of Key Senior Management’s aggregated remuneration on an unnamed
basis in the bands of RM50,000 in this Annual Report is adequate.
PRINCIPAL B - EFFECTIVE AUDIT AND RISK MANAGEMENT
PART I – AUDIT COMMITTEE (“AC”)
4.1 Effective and Independent AC
The AC is relied upon by the Board to, amongst others, provide advice in the areas of financial reporting, external
audit, internal control environment and internal audit processes, review of related party transactions as well as conflict
of interest situation.
The AC comprises three (3) Independent Non-Executive Directors. The AC is chaired by an Independent Non-Executive
Director, Mdm. Kow Poh Gek. As such, the Chairperson of the AC is distinct from the Chairman of the Board.
All members of the AC are financially literate and the AC Chairperson is a member of the Malaysian Institute of
Accountants. The composition, roles and responsibilities and summary of its activities carried out in the FYE 2018 are
set out in the AC Report on pages 33 to 35 of this Annual Report.
The term of office and performance of the AC and its members are reviewed by the NC annually to determine whether
such AC and members have carried out their duties in accordance with the terms of reference.

(cont’d)
The Group has established a transparent and appropriate relationship with the Internal Auditors and External Auditors
which facilitate the Group to seek professional advice on matters relating to compliance and corporate governance. The
internal audit function of the Group is outsourced to third party. Similar to the External Auditors, Internal Auditors also
have direct reporting access to the Audit Committee to ensure that issues highlighted are addressed independently,
objectively and impartially without any undue influence from the management.
The Board has established the Internal and External Auditors Assessment Policy together with the Annual Performance
Evaluation Form. The said policy aims to outline the guidelines and procedures for AC to review, assess and monitor
the performance, suitability and independence of the Internal and External Auditors.

PART II – RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK
5.1 Risk Management and Internal Control Framework
The Board acknowledges the importance of a sound risk management system and internal control to ensure the risks
in the Group are identified and managed with the appropriate risk management system. The risk management process
includes identifying principal business risks in critical areas, assessing the likelihood and impact of material exposures
and determining its corresponding risk mitigation and treatment measures.
In this respect, the Board is briefed on any potential fraud, whistle blowing and internal audit findings in order to
enable them to assess the integrity of the Group’s financial information and the adequacy and effectiveness of the
Group’s system of internal control and risk management processes.
The Group’s risk management and internal control framework are elaborated in the Statement of Risk Management
and Internal Control on pages 36 to 39 in this Annual Report.
5.2 Risk Management Committee (“RMC”)
The members of the RMC are nominated and appointed by the Board to assist the Board in discharging its fiduciary
duties and responsibilities in relation to overseeing and monitoring of risk management activities to ensure that the
inherent business risk exposure of the Group is managed within an acceptable and appropriate level. The composition
of the RMC consists of the following members, majority of whom are Independent Non-Executive Directors:-
Name Designation
Datuk Chia Lui Meng Chairman, Independent Non-Executive Director

Mdm. Kow Poh Gek Member, Independent Non-Executive Director
Mr. Cheah Ham Cheia Member, Managing Director
Mr. Alexander Lo Tzone Leong Member, Executive Director
5.3 Internal Audit Function
The Group’s Internal Audit Function is outsourced to a professional service firm to assist the Board in maintaining a
system of internal control to safeguard shareholders’ investment and the Group’s assets. The internal audit findings
and investigations of business units of the Group will be reported directly to the AC.
The information on the Group’s risk management and internal control is presented in the Statement of Risk Management
and Internal Control in this Annual Report.

(cont’d)
PRINCIPLE C – INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP

WITH STAKEHOLDERS
PART I – COMMUNICATION WITH STAKEHOLDERS
6.1 Continuous Communication with Stakeholders
The Board recognises the need for transparency and accountability to the Company’s shareholders and regular
communication with its shareholders, stakeholders and investors on the performance and major developments of the
Company.
To ensure effective dissemination of information to the shareholders and stakeholders, the Group makes necessary
announcements on the Group’s affairs and development in accordance with the Listing Requirements of Bursa
Securities through the website of Bursa Securities. In addition to that, the Company also maintains a corporate website
at www.gdbhb.com.my where pertinent information on the Group can easily be accessible by the shareholders and
stakeholders such as:-
• Interim financial reports to provide updates on the Group’s operations and business development on a quarterly
basis;
• Annual audited financial statements and annual reports to provide an overview of the Group’s state of governance,
state of affairs, financial performance and cash flows for the relevant financial year;
• Corporate announcements to Bursa Securities on material developments of the Group, as and when necessary
and mandated by the Listing Requirements of Bursa Securities; and
• Company’s corporate information including Board Charter, Terms of References of various Board Committees
and Whistle Blowing Policy.
6.2 Corporate Disclosure Policy
The Board is committed to provide effective communication to its shareholders and general public regarding the
business, operations and financial performance of the Group and where necessary, information filed with regulators is
in accordance with all applicable legal and regulatory requirements.
The Corporate Disclosure Policy was formalised to promote comprehensive, accurate and timely disclosures pertaining
to the Company and the Group to regulators, shareholders and stakeholders.
PART II – CONDUCT OF GENERAL MEETING
7.1 Conduct of General Meetings
The Annual General Meeting (“AGM”) remains the principal forum for dialogue with shareholders where they may seek
clarifications on the Company’s business and reports. Shareholders are encouraged to meet and communicate with the
Board at the AGM and to vote on all resolutions. The Board will respond to any question raised during the meeting.
In line with Practice 12.1 of MCCG, the notice convening the Fifth (“5th”) AGM was given to the shareholders at least
28 days before the AGM, which gives shareholders sufficient time to prepare themselves to attend the AGM or to
appoint proxy to attend and vote on their behalf.

(cont’d)
Members of the Board and Key Senior Management of the Company as well as the External Auditors of the Company
are available to respond to shareholders’ questions during the meetings.
All resolutions set out in the Notice of AGM were put to vote by poll and the votes casted were validated by an
independent scrutineer appointed by the Company. The outcome of all resolutions proposed at the general meetings
is announced to Bursa Securities at the end of the meeting day. A summary of the key matters discussed at the AGM
(if any) will be published on the Company’s website for the shareholders’ information.
STATEMENT BY THE BOARD ON CORPORATE GOVERNANCE OVERVIEW STATEMENT
The Board has deliberated, reviewed and approved this Statement. The Board considers and is satisfied that to the best of
its knowledge, the Company has fulfilled its obligations under the MCCG, the relevant chapters of the Listing Requirements
of Bursa Securities on corporate governance and all applicable laws and regulations throughout the FYE 2018.

Audit Committee Report
The Board of Directors (“Board”) of GDB Holdings Berhad (“Company”) is pleased to present the report of the Audit
Committee (“AC”) for the financial year ended 31 December 2018 (“FYE 2018”).
1. OBJECTIVES
The primary objective of the AC is to assist the Board in discharging its statutory duties and responsibilities, amongst
others, providing additional assurance to the Board by giving an objective and independent review of financial,
operational and administrative controls and procedures, including establishing and maintaining internal controls.
2. COMPOSITION
The Company has complied with Rule 15.09 of the ACE Market Listing Requirements (“Listing Requirements”) of Bursa
Malaysia Securities Berhad (“Bursa Securities”) which requires all members of the AC to be Non-Executive Directors
with a majority of the members being Independent Directors.
The composition of the AC is as follows:
Chairperson
Mdm. Kow Poh Gek - Independent Non-Executive Director
Members
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar - Independent Non-Executive Chairman
Datuk Chia Lui Meng - Independent Non-Executive Director
All members are financially literate and the Chairperson of the AC is a member of the Malaysian Institute of Accountants.
She is also a Fellow member of The Chartered Institute of Management Accountants.
3. TERMS OF REFERENCE
The AC is guided by the Terms of Reference of the AC, a copy of which is made available on the Company’s website
at www.gdbhb.com.my.
4. SUMMARY OF ACTIVITIES OF THE AC DURING THE FYE 2018
The AC met five (5) times during the FYE 2018. The details of their attendance at meetings are as follows:
Name No. of Meetings Attended Percentage
Mdm. Kow Poh Gek 5/5 100%

Tan Sri Dato’ Ir. Hj. Zaini Bin Omar 3/5 60%
Datuk Chia Lui Meng 5/5 100%
The External Auditors, Internal Auditors, Sponsor and certain designated senior management also attended the
meetings at the invitation of the Chairperson of the AC to facilitate direct communication and to provide clarifications
on the audit issues, areas of concern, operational matters as well as the internal controls of the Company.

(cont’d)
4. SUMMARY OF ACTIVITIES OF THE AC DURING THE FYE 2018 (CONT’D)
The activities carried out by the AC during the FYE 2018 are summarised as follows:
a. Reviewed with the External Auditors, the audit plan and scope of the statutory audit of the Company’s financial
statements for the FYE 2018 before the audit commenced to ensure that the scope of the external audit is
comprehensive;
b. Reviewed the quarterly financial results and annual audited financial statements of the Company including the
announcements pertaining thereto. Discussion focused particularly on any change in accounting policies and
practices, significant adjustments arising from the audit and compliance with accounting standards and other
legal requirements before recommending to the Board for approval and release of the announcements to Bursa
Securities;
c. Considered and recommended the re-appointment of Messrs. Crowe Malaysia PLT and their audit fee to the
Board for consideration based on the competency, efficiency and transparency as demonstrated by the Auditors
during their audit;
d. Reviewed with the Internal Auditors, the internal audit plan, work done and reports for the internal audit function
and considered the findings of internal audit investigations and management responses thereon, and ensure that
appropriate actions are taken on the recommendations raised by the Internal Auditors;
e. Reviewed related party transactions entered into by the Company and/or the Group (if any), to ensure that such
transactions were undertaken at arm’s length and is properly disclose in the Annual Report; and
f. Reviewed the Corporate Governance Overview Statement, Audit Committee Report and Statement on Risk
Management and Internal Control to ensure adherence to legal and regulatory reporting requirements before
recommending to the Board for approval for inclusion in the Company’s Annual Report.
5. INTERNAL AUDIT FUNCTION
The Group outsourced its internal audit function to an independent consulting firm which assist the Board and AC in
discharging its duties and responsibilities in providing an independent assessment on the adequacy, efficiency and
effectiveness of the Group’s internal control system. The outsourced Internal Auditors reports directly to the AC on its
activities based on approved internal audit plans.
The cost incurred by the Group for financial year ended 31 December 2018 amounted to RM30,000.
The annual internal audit plan as approved by the AC covers key functional areas and business activities of the Group
emphasizing on best practices and encompasses all business risks with core focus on:
• The effectiveness and efficiency of operations;

• Reliability of reporting;
• Compliance with applicable laws and regulations; and
• Safeguarding the assets of the Group.

(cont’d)
5. INTERNAL AUDIT FUNCTION (CONT’D)
The Internal Auditors conducted internal audit reviews (on a quarterly basis) for three quarters and will subsequently
conduct a follow-up review at the fourth quarter to ensure all areas of concern, findings and recommendations are put
in place and/or enhanced where appropriate by the management.
For the FYE 2018, the AC noted that the internal audit function is independent and Internal Auditors have performed
their audit assignments with impartiality, proficiency and due professional care.
6. RELATIONSHIP WITH AUDITORS
The Group has established a transparent and appropriate relationship with both the External and Internal Auditors.
Such relationship allows the Group to seek professional advice on matters relating to compliance and corporate
governance. Both the External and Internal Auditors have direct reporting and access to the AC to ensure that issues
highlighted are addressed independently, objectively and impartially without any undue influence of the Management.
The Board, through the AC shall maintain appropriate, formal and transparent relationship with the External and
Internal Auditors. The AC meets with the External and Internal Auditors on separate sessions without the presence of
Executive Directors and Management, whenever necessary, which demonstrate their independence, objectivity and
professionalism.
Meetings with the External Auditors will be held to discuss the Group’s audit plans, audit findings, financial statements
as well as to seek their professional advice on other related matters.

Internal Control
INTRODUCTION
The Board is pleased to present its Statement on Risk Management and Internal Control (“Statement”) which outlines the
nature and scope of the risk management and internal control of the Group for the financial year ended 31 December
2018. This Statement has been prepared in accordance with Rule 15.26(b) of the ACE Market Listing Requirements (“Listing
Requirement”) of Bursa Malaysia Securities Berhad (“Bursa Securities”), Malaysian Code on Corporate Governance
(“MCCG”) and guided by the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers
(“Guidelines”).
BOARD’S RESPONSIBILITY
The Board acknowledges the importance of a sound framework of risk management and internal control as a platform for
good corporate governance in order for the Board to carry out its responsibilities in ensuring the adequacy and effectiveness
of the framework and controls are in place to ensure the Group’s assets and shareholders’ interest are safeguarded.
In view of the limitations that are inherent in any system of internal control, the system is designed to manage, rather than
eliminate the risk of failure to achieve the Group’s business objectives. Accordingly, it can only provide reasonable but not
absolute assurance against material misstatement or loss, contingencies, fraud or irregularities.
RISK MANAGEMENT FRAMEWORK
The Board regards the management of core risks as an integral and critical part of the day-to-day operations of the Group.
The experience, knowledge and expertise to identify and manage such risks throughout the financial year under review
enables the Group to make cautious, mindful and well-informed decisions through formulation and implementation of
requisite action plans and monitoring regime which are imperative in ensuring the accomplishment of the Group’s objectives.
The Board, through the Risk Management Committee (“RMC”) provides oversight of overall risk management framework
of the Group, establishes risk management policies and procedures on risk and control by identifying and assessing risks,
and making recommendations designed to monitor, evaluate, manage and mitigate such risks throughout the business
operations particularly in respect of key risks which the Group faces on a regular basis.
The Board confirms that there is an on-going process of identifying, evaluating, monitoring and managing risks to achieve
the objectives of the Group for the financial year under review. The process is in place for the year under review and up to
date of issuance of the Statement on Risk Management and Internal Control.
During the financial year under review, key risk areas affecting the Group are brought to the attention of the RMC and the
Board during scheduled meetings.
The Board has requested the Internal Auditors to conduct independent review on the Group’s Risk Management Framework,
Risk Register, Risk Impact and Likelihood Classification, Risk Management Action Plan and Risk Management Review Report
prepared by the Management to provide reasonable assurance that the risk management framework of the Group is
adequate and effective in providing feedback for further improvement.

Internal Control (cont’d)
As part of our Risk Management process, a Registry of Risk and a Risk Management Handbook had been formalised. The
Registry of Risk is maintained to identify principal business risks and key risk areas, their impact, likelihood of occurrence,
risk owner and risk control actions and is updated to address changes in risk profiles. The Risk Management Handbook
summarises risk management methodology, approach and processes, roles and responsibilities, and various risk management
concept. The level of risk tolerance is established and monitored through the use of a risk impact and likelihood matrix where
the ratings are assessed in response to changes in the business environment.
The respective risk owners are assigned and responsible for identifying risks as well as to ensure that adequate control
systems are implemented to mitigate risks faced by the Group. The process of identifying, evaluating, monitoring and
managing risks is embedded in the various work processes and procedures of the respective operational functions and for
the financial year ended 31 December 2018. The risks mitigating processes are implemented in the following aspects:
1. Legal and Regulatory

Compliance with laws and regulations that are relevant to our Group’s business such as compliance with industry
legislations as well as Listing Requirements to ensure that all announcements are made on a timely manner.
2. Financial
Liquidity risk management processes which ensure that the Group effectively and efficiently manages its financial
resources and meets its financial obligations and liquidity requirements.
3. Business
Business risk management approach which identifies key business risks and their financial impact. Identified business
risks are assessed and ranked based on their severity of consequences and likelihood of occurrence for seizing business
opportunities and mitigating actions to be taken.
4. Operational
Key operational risks identified such as risks affecting quality and timelines of project delivery are monitored by risk
owners to ensure that remedial and mitigating actions such as wastage monitoring and continuous internal quality
assessment etc. are carried out. The Management conduct risks monitoring to determine whether the underlying
conditions of a particular risk have been effectively dealt with and where required to implement further measures to
mitigate the risks impact to the Group.
5. Security
Security risks inherent to IT network and information systems are secured and safe guarded with preventive measures
such as system back-up recovery, antivirus and IT access controls are assigned appropriately to avoid leakage of private
and confidential information.
6. Environmental, safety and health

Adopting stringent monitoring controls on environmental, safety and health which are of utmost important to
the business. Monitoring control and measures include clearly documented procedures, delegation of duties and
responsibilities, schedule of tasks and the implementation of control measures.
7. Human resources
Human resource risks such as key-person dependency risks are addressed by succession planning process which is in
place to ensure continuity of business.

INTERNAL AUDIT FUNCTION

The responsibility for reviewing the adequacy and integrity of the internal control system has been delegated by the Board
to the Audit Committee. In turn, the Audit Committee assesses the adequacy and integrity of the internal control system and
its compliance with the Group’s policies and procedures through independent reviews performed by the Internal Auditors.
The Board outsourced its internal audit functions to an independent consulting firm, namely Sterling Business Alignment
Consulting Sdn. Bhd. (“SBAC”) to provide an independent evaluation of the system of internal control. The independent
consulting firm acts as Internal Auditor and reports directly to the Audit Committee on a quarterly basis during the Audit
Committee meeting. The Audit Committee is chaired by an Independent Non-Executive Director, and its members comprises
of Independent Non-Executive Directors. SBAC is free from any relationships or conflict of interest, which could impair their
objectivity and independency of the internal audit function. SBAC does not have any direct operational responsibility or
authority over any of the activities audited. The Audit Committee is of the opinion that the internal audit function is effective
and able to function independently.
The Internal Auditors uses the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) Internal
Control – Integrated Framework as a basis for evaluating the effectiveness of the internal control systems. The internal audit
reviews are conducted according to the approved internal audit plan which addresses the critical business processes, internal
control gaps, effectiveness and adequacy of the existing state of internal control and recommend possible improvements
to the internal control process. The internal audit plans are reviewed and approved by the Audit Committee, to provide
reasonable assurance that such system continues to operate satisfactorily and effectively within the Group.
SBAC is accorded complete and unrestricted access to all documents and records of the Group deemed necessary in
performing its function and SBAC independently reviewed the risk identification procedures and control processes
implemented by the Management. SBAC also reviewed the internal controls in key activities of the Group’s business based
on risk profiles of business units in the Group. All findings which arose from the review were discussed primarily with the
respective process custodians prior to a formal report being presented to the Audit Committee.
SBAC has also made recommendations to the Management pertaining to the Group’s operational and financial activities to
help the Management to develop a more efficient and robust internal control environment and the recommendations have
been adopted and implemented by the Management. Based on the findings and recommendations made by SBAC, actions
were taken to adequately address the identified internal control issues. None of the internal control weaknesses noted has
resulted in any material loss, contingency and uncertainty that would require separate disclosure in the Annual Report.
From the date of listing on the ACE Market of Bursa Securities on 27 March 2018 up to the financial year ended 31 December
2018, three (3) internal audit reviews had been carried out by SBAC:
Financial Reporting Quarter Reporting Month Name of Entity Audited Audited Areas
2 Quarter
nd
August 2018 Grand Dynamic Builders Sdn Bhd • Project Management
(April – June 2018) • Control of Progress Claim
3rd Quarter November 2018 Grand Dynamic Builders Sdn Bhd • Tender Management
(July – September 2018) • Procurement
• Pre-contract Management
• Post-contract
Management
4th Quarter February 2019 GDB Holdings Berhad and its • Finance and Accounts
(October – December 2018) subsidiary • Risk Management
The cost incurred in outsourcing the internal audit function for the financial year ended 31 December 2018 was at RM30,000.

OTHER KEY ELEMENTS OF RISK MANAGEMENT AND INTERNAL CONTROLS

The other key elements of the Group’s internal control system include: -
1. Clearly defined terms of reference, authorities and responsibilities of the various Board committees which include the
Audit Committee, Nomination Committee, Remuneration Committee and Risk Management Committee;
2. Well-defined organisational structure with clear lines of authority, limits of authority, accountability and responsibilities
of the Senior Management;
3. Clearly documented internal procedures in respect of operational processes as set out in the ISO 9001: 2015 Quality
Management System and Quality, Environment, Safety and Health (QESH) Management System;
4. Regular reporting of operational performance and financial results at timely intervals to enable proper review by the
Managing Director, Executive Directors and Senior Management;
5. Clearly defined and formalised internal policies and procedures are in place to support the Group in achieving its
corporate objectives. These policies and procedures provide a basis for ensuring compliance with applicable laws and
regulations, and also internal controls with respect to the conduct of business;
6. A fully independent Audit Committee comprising exclusively of Independent Non-Executive Directors with full and
unrestricted access to both Internal and External Auditors. The quarterly financial results and annual audited report are
reviewed by the Audit Committee prior to the approval by the Board;
7. Decision of the Board to outsource its internal audit function to SBAC for greater independence and accountability in
the internal audit function; and
8. Whistle Blowing Policy which provides an avenue for employees to report suspected malpractices, misconduct or
violations of the Group’s policies and regulations in a secured and confidential manner.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS

Pursuant to Rule 15.23 of the Listing Requirements, the External Auditors have reviewed this Statement for inclusion in
the Annual Report for the financial year ended 31 December 2018. The External Auditors have reported to the Board that,
based on their review procedures performed and evidence obtained, nothing has come to their attention that causes them
to believe that this Statement intended to be included in the Annual Report is not prepared, in all material respects, in
accordance with the disclosures required by Paragraphs 41 and 42 of the Guidelines and Practices 9.1 and 9.2 of the MCCG
to be set out, nor is the Statement factually inaccurate.
ASSURANCE TO THE BOARD

The Board is of the opinion that the Group’s risk management and internal control systems are satisfactory and has no
internal control failure nor any significant weaknesses that resulted in any loss to the Group during the financial year under
review. The Board is also cognizant that the Group’s risk management framework and system of internal control must be
continuously reviewed and evolved to meet the changing and challenging business environment. Therefore, the Group is
committed to continue to take all necessary measures to strengthen the risk management and internal control system to
further enhance its effectiveness to ensure all identified risks are managed on a timely basis and are within tolerance limits.
Nonetheless, based on the half yearly reporting by the Management on the risk management review and the quarterly
internal audit reporting by the Internal Auditors as well as the Management’s actions and explanations towards all identified
audit findings on concern areas, the Board is satisfied that the Group’s risk management framework and system of internal
control are in place and are operating adequately and effectively in all material aspects for the financial year ended 31
December 2018.
The Managing Director and Chief Financial Officer of the Group have given the Board the assurance that the Group’s risk
management and internal control system have been operating adequately and effectively in all critical aspects.

Additional Compliance Information
For compliance with the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”), the
following additional information are provided:
1. RECURRENT RELATED PARTY TRANSACTION OF A REVENUE OR TRADING NATURE
During the financial year under review, the Group did not enter into any recurrent related party transactions of a
revenue or trading nature.
2. MATERIAL CONTRACTS INVOLVING DIRECTORS’ AND MAJOR SHAREHOLDERS’

INTEREST
There were no material contracts entered into by the Company and its subsidiary that involved Directors’ and/or major
shareholders’ interests during the financial year under review.
3. AUDIT AND NON-AUDIT FEES
The amount of audit and non-audit fees paid and payable to the external auditors and its affiliated company by the
Company and Group for the financial year ended 31 December 2018 are as follows:
Type of Services Fee (RM)

Company Group
Audit
- Financial audit 21,500 66,500
Non-audit
- Review of Statement on Risk Management and Internal Control 5,000 5,000
- Tax advisory & compliance fees 4,400 24,800
Total 30,900 96,300

4. UTILISATION OF PROCEEDS RAISED FROM INITIAL PUBLIC OFFERING
GDB has raised a total gross proceeds of RM43.75 million from its Public Issue (“Public Issue Proceeds”) in conjunction with the listing of
(cont’d)
the Company on the ACE Market of Bursa Securities on 27 March 2018.
GDB had, on 21 March 2019, made an announcement on Bursa Securities to extend the timeframe for utilisation of the Public Issue Proceeds
which has been earmarked for the acquisition of land for storage of construction machinery and equipment amounting to RM8.00 million, as
well as for payment of salaries for new employees (for infrastructure project team) to be based at head office amounting to RM0.68 million
by an additional twelve (12) months.
The status of utilisation of the Public Issue Proceeds and details of the extension of time are set out below:-
Revised expected
Intended timeframe timeframe for utilisation
Purpose Proposed Actual Balance for utilisation of proceeds
Utilisation Deviation (1) Utilisation Unutilised (from the listing date) (from the listing date)
RM’000 RM’000 RM’000 RM’000
i Capital expenditure:
- Purchase of new
construction machinery
and equipment 8,670 - (437) 8,233 Within 36 months No change
- Acquisition of a new
office building 8,000 - - 8,000 Within 36 months No change
- Acquisition of land for
storage 8,000 - - 8,000 Within 12 months Within 24 months
ii Working capital:
- Payment to suppliers
and subcontractors 14,900 673 (15,573) - Within 12 months No change
- Payment of salaries for
new employees
(for infrastructure
Additional Compliance Information
project team) to be
based at our head office 680 - - 680 Within 12 months Within 24 months
iii Estimated listing expenses 3,500 (673) (2,827) - Within 3 months No change
Total 43,750 - (18,837) 24,913
ANNUAL REPO RT 2018

Note:
(1) The actual listing expenses are lower than the estimated amount hence, the excess of RM0.67 million was used for working capital
41
purposes.
Directors’ Responsibility Statement
The Board of Directors (“Board”) are required by the Companies Act 2016 (“CA”) to prepare financial statements in
accordance with applicable Malaysian Financial Reporting Standards, International Financial Reporting Standards and the
requirements of the CA in Malaysia so as to give a true and fair view of the financial position of the Group and of the
Company as at the end of the financial year and of their performance and cash flows of the Group and of the Company for
the financial year then ended.
To ensure that the financial statements of the Group and of the Company as set out in this Annual Report are properly drawn
up, the Directors have taken the following measures:
• Adopted and applied appropriate and relevant accounting policies consistently;

• Made judgements and estimates that are reasonable and prudent; and
• Prepared the financial statements on a going concern basis of accounting as the Board has a reasonable expectation
that the Group has adequate resources to continue in operational existence for the foreseeable future.
The Board is responsible for ensuring that the Group and the Company maintain proper accounting records that disclose the
financial position of the Group and the Company with reasonable accuracy which enable them to ensure that the financial
statements comply with the CA.
The Directors are also responsible for taking reasonable steps to ensure that appropriate systems are in place to safeguard
the assets of the Group and of the Company to prevent and detect fraud and other irregularities.

Financial Statements
Directors’ Report 44
Statement by Directors 49
Statutory Declaration 49
Independent Auditors’ Report 50
Statements of Financial Position 54
Statements of Profit or Loss and Other Comprehensive Income 55
Statements of Changes in Equity 56
Statements of Cash Flows 58
Notes to the Financial Statements 60

Directors’ Report
The directors hereby submit their report and the audited financial statements of the Group and of the Company for the
financial year ended 31 December 2018.
PRINCIPAL ACTIVITIES
The Company is principally engaged in the business of investment holding. The principal activity of the subsidiary is set out
in Note 6 to the financial statements.
RESULTS
The Group The Company
RM RM

Profit after taxation for the financial year 27,889,828 13,792,520

DIVIDEND
Dividends paid or declared by the Company since 31 December 2017 are as follows:-
RM

In respect of the financial year ended 31 December 2018

A first interim single-tier dividend of RM0.01 per ordinary share, paid on 28 September 2018. 6,250,000

On 22 February 2019, the Company declared a second interim single-tier dividend of RM0.01 per ordinary share amounting
to RM6,250,000 in respect of the current financial year, payable on 29 March 2019, to shareholders whose names appeared
in the record of depositors on 8 March 2019. The financial statements for the current financial year do not reflect this interim
dividend. Such dividend will be accounted for in equity as an appropriation of retained profits in the financial year ending
31 December 2019.
RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year other than those disclosed in the
financial statements.

Directors’ Report
(cont’d)
ISSUES OF SHARES AND DEBENTURES
During the financial year:-
(a) the Company increased its issued and paid-up share capital from RM20,000,000 to RM63,750,000 by way of an issuance
of 125,000,000 new ordinary shares for RM43,750,000 pursuant to the listing of the Company’s entire enlarged issued
share capital comprising 625,000,000 ordinary shares in the Company on the ACE Market of Bursa Malaysia Securities
Berhad on 27 March 2018; and
(b) there were no issues of debentures by the Company.
The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company.
OPTIONS GRANTED OVER UNISSUED SHARES
During the financial year, no options were granted by the Company to any person to take up any unissued shares in the
Company.
BAD AND DOUBTFUL DEBTS
Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to
ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for impairment
losses on receivables, and satisfied themselves that there are no known bad debts and that no allowance for impairment
losses on receivables is required.
At the date of this report, the directors are not aware of any circumstances that would require the writing off of bad debts,
or the setting up of allowance for impairment losses on receivables in the financial statements of the Group and of the
Company.
CURRENT ASSETS
Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to
ensure that any current assets, which were unlikely to be realised in the ordinary course of business, including their value as
shown in the accounting records of the Group and of the Company, have been written down to an amount which they might
be expected so to realise.
At the date of this report, the directors are not aware of any circumstances which would render the values attributed to the
current assets in the financial statements misleading.
VALUATION METHODS
At the date of this report, the directors are not aware of any circumstances which have arisen which render adherence to the
existing methods of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

Directors’ Report
(cont’d)
CONTINGENT AND OTHER LIABILITIES
At the date of this report, there does not exist:-
(a) any charge on the assets of the Group and of the Company that has arisen since the end of the financial year which
secures the liabilities of any other person; or
(b) any contingent liability of the Group and of the Company which has arisen since the end of the financial year.
No contingent or other liability of the Group and of the Company has become enforceable or is likely to become enforceable
within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may
substantially affect the ability of the Group and of the Company to meet their obligations when they fall due.
CHANGE OF CIRCUMSTANCES
At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the
financial statements of the Group and of the Company which would render any amount stated in the financial statements
misleading.
ITEMS OF AN UNUSUAL NATURE
The results of the operations of the Group and of the Company during the financial year were not, in the opinion of the
directors, substantially affected by any item, transaction or event of a material and unusual nature.
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction
or event of a material and unusual nature likely, in the opinion of the directors, to affect substantially the results of the
operations of the Group and of the Company for the financial year in which this report is made.
DIRECTORS
The names of directors of the Company who served during the financial year and up to the date of this report are as follows:-
Cheah Ham Cheia

Alexander Lo Tzone Leong
Cheah Jun Kai
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar
Datuk Chia Lui Meng
Kow Poh Gek
The names of directors of the Company’s subsidiary who served during the financial year up to the date of this report are
as follows:-
Cheah Ham Cheia

Alexander Lo Tzone Leong

Directors’ Report
(cont’d)
DIRECTORS’ INTERESTS
According to the register of directors’ shareholdings, the interests of directors holding office at the end of the financial year
in shares of the Company and its related corporations during the financial year are as follows:-
<------------------- Number Of Ordinary Shares ---------------->

At At
1.1.2018 Bought Sold 31.12.2018
The Company

Direct Interests

Alexander Lo Tzone Leong 150,000,000 392,900 (11,250,000) 139,142,900

Cheah Jun Kai - 2,020,000 - 2,020,000

Tan Sri Dato’ Ir. Hj. Zaini Bin Omar - 400,000 - 400,000

Datuk Chia Lui Meng - 300,000 - 300,000

Kow Poh Gek - 300,000 - 300,000

Indirect Interests

Cheah Ham Cheia* 350,000,000 - (26,250,000) 323,750,000

Cheah Jun Kai^ - 360,000 - 360,000

Kow Poh Gek# - 150,000 - 150,000
* Deemed interested by virtue of his substantial shareholding in CHC Holdings Sdn. Bhd..

^ Deemed interested by virtue of his spouse’s shareholdings in the Company.

# Deemed interested by virtue of her son’s shareholdings in the Company.
By virtue of their shareholdings in the Company, Cheah Ham Cheia and Alexander Lo Tzone Leong are deemed to have
interests in shares and its related corporations during the financial year to the extent of the Company’s interest, in accordance
with Section 8 of the Companies Act 2016.
DIRECTORS’ BENEFITS
Since the end of the previous financial year, no director has received or become entitled to receive any benefit (other than a
benefit included in the aggregate amount of remuneration received or due and receivable by directors shown in the financial
statements, or the fixed salary of a full-time employee of the Company or related corporations) by reason of a contract
made by the Company or a related corporation with the director or with a firm of which the directors are member, or with
a company in which the directors have a substantial financial interest except for any benefits which may be deemed to arise
from transactions entered into in the ordinary course of business with companies in which certain directors have substantial
financial interest as disclosed in Note 30 to the financial statements.
Neither during nor at the end of the financial year was the Group or the Company a party to any arrangements whose object
is to enable the directors to acquire benefits by means of the acquisition of shares in or debentures of the Company or any
other body corporate.

Directors’ Report
(cont’d)
DIRECTORS’ REMUNERATION

The details of the directors’ remuneration paid or payable to the directors of the Company during the financial year are
disclosed in Note 23 and Note 29 to the financial statements.
INDEMNITY AND INSURANCE COST
During the financial year, there is no indemnity given to or professional indemnity insurance effected for directors, officers
or auditors of the Company.
SUBSIDIARY
The details of the Company’s subsidiary are disclosed in Note 6 to the financial statements.
SIGNIFICANT EVENT DURING THE FINANCIAL YEAR
The significant event during the financial year is disclosed in Note 36 to the financial statements.
SIGNIFICANT EVENTS OCCURRING AFTER THE REPORTING PERIOD
The significant events occurring after the reporting period are disclosed in Note 37 to the financial statements.
HOLDING COMPANY
The holding company is CHC Holdings Sdn. Bhd., a company incorporated in Malaysia.
AUDITORS
The auditors, Crowe Malaysia PLT (converted from a conventional partnership, Crowe Malaysia which was previously known
as Crowe Horwath), have expressed their willingness to continue in office.
The auditors’ remuneration are disclosed in Note 23 to the financial statements.
Signed in accordance with a resolution of the directors dated 22 April 2019.
Cheah Ham Cheia Alexander Lo Tzone Leong

Statement By Directors
Pursuant To Section 251(2) Of The Companies Act 2016
We, Cheah Ham Cheia and Alexander Lo Tzone Leong, being two of the directors of GDB Holdings Berhad, state that, in
the opinion of the directors, the financial statements set out on pages 54 to 104 are drawn up in accordance with Malaysian
Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016
in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 December
2018 and of their financial performance and cash flows for the financial year ended on that date.
Signed in accordance with a resolution of the directors dated 22 April 2019.
Cheah Ham Cheia Alexander Lo Tzone Leong
Statutory Declaration
Pursuant To Section 251(1)(B) Of The Companies Act 2016
I, Toh Fong Eng, MIA Membership Number: 16576, being the officer primarily responsible for the financial management of
GDB Holdings Berhad, do solemnly and sincerely declare that the financial statements set out on pages 54 to 104 are, to the
best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the declaration to be
true, and by virtue of the Statutory Declarations Act 1960.
Subscribed and solemnly declared by the abovementioned

Toh Fong Eng,
at Kuala Lumpur
in the Federal Territory
on this 22 April 2019.
Toh Fong Eng

Before me
Commisioner for Oaths

Lai Din
No. W668

Independent Auditors’ Report
To The Members Of GDB HOLDINGS BERHAD
(Incorporated in Malaysia)
Company No: 1036466 - U
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of GDB Holdings Berhad, which comprise the statements of financial position as at
31 December 2018 of the Group and of the Company, and the statements of profit or loss and other comprehensive income,
statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year then
ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 54
to 104.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and
of the Company as at 31 December 2018, and of their financial performance and their cash flows for the financial year then
ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the
requirements of the Companies Act 2016 in Malaysia.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit
of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and
Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in
accordance with the By-Laws and the IESBA Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the Group and of the Company for the current financial year. These matters were addressed in the
context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
Revenue recognition, contract assets and liability

Refer to Notes 9 and 20 to the financial statements
Key Audit Matter How our audit addressed the key audit matter
The recognition of revenue on contracts Our procedures included, amongst others:-

is based on the percentage of completion • Reviewing the contract value secured and projected budgeted
method. The stage of completion is measured costs;
by reference to the proportion of actual costs • Assessing the estimated total costs to complete through inquiries
incurred for work performed to date to the with the operational and finance personnel of the Group;
estimated total costs for the project. • Inspecting documentation to support cost estimates made
including contract variations and cost contingencies;
The determination of the percentage of • Performing verification on the actual progress billings issued and
completion requires the management to actual costs incurred for the financial year; and
exercise significant judgement in estimating • Performing recomputation on the profit recognised and checked
the total costs to complete the contracts. calculation of the percentage of completion.

To The Members Of GDB HOLDINGS BERHAD (cont’d)
Information Other than the Financial Statements and Auditors’ Report Thereon
The directors of the Company are responsible for the other information. The other information comprises the information
included in the annual report, but does not include the financial statements of the Group and of the Company and our
auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially inconsistent with the financial
statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Statements
The directors of the Company are responsible for the preparation of financial statements of the Group and of the Company
that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting
Standards and the requirements of the Companies Act 2016 in Malaysia. The directors are also responsible for such internal
control as the directors determine is necessary to enable the preparation of financial statements of the Group and of the
Company that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the
Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the
Company or to cease operations, or have no realistic alternative but to do so.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.

Auditors’ Responsibilities for the Audit of the Financial Statements (Cont’d)
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:-
• Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s
and of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s or the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements
of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may
cause the Group or the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company,
including the disclosures, and whether the financial statements of the Group and of the Company represent the
underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the financial statements of the Group. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.

Auditors’ Responsibilities for the Audit of the Financial Statements (Cont’d)
From the matters communicated with the directors, we determine those matters that were of most significance in the audit
of the financial statements of the Group and of the Company for the current financial year and are therefore the key audit
matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
OTHER MATTERS
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies
Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this
report.
Crowe Malaysia PLT Ngiam Mia Teck

LLP0018817-LCA & AF 1018 03000/07/2020 J
Chartered Accountants Chartered Accountant
Kuala Lumpur
22 April 2019

Statements Of Financial Position
At 31 December 2018

2018 2017 2018 2017
Note RM RM RM RM
ASSETS
NON-CURRENT ASSETS
Investment in a subsidiary 6 - - 17,984,357 17,984,357
Plant and equipment 7 11,224,127 12,974,676 - -

11,224,127 12,974,676 17,984,357 17,984,357

CURRENT ASSETS
Amount owing by contract customers 8 - 21,924,085 - -
Contract assets 9 62,716,993 - - -
Trade receivables 10 33,725,375 77,854,286 - -
Other receivables, deposits and prepayments 11 21,586,755 7,860,096 132,070 250,267
Amount owing by a subsidiary 12 - - 6,300,000 262,880
Current tax assets 167,452 111,348 167,452 111,348
Short-term investments 13 65,260,844 20,470,180 44,466,173 -
Fixed deposits with licensed banks 14 7,230,057 5,477,969 - -
Cash and bank balances 10,839,019 5,533,633 471,068 799,483

201,526,495 139,231,597 51,536,763 1,423,978

TOTAL ASSETS 212,750,622 152,206,273 69,521,120 19,408,335

EQUITY AND LIABILITIES
EQUITY
Share capital 15 62,564,078 20,000,000 62,564,078 20,000,000
Retained profits/(Accumulated loss) 41,556,872 19,917,044 6,857,686 (684,834)

TOTAL EQUITY 104,120,950 39,917,044 69,421,764 19,315,166

NON-CURRENT LIABILITY
Deferred tax liability 16 - 73,000 - -

CURRENT LIABILITIES
Amount owing to contract customers 8 - 5,377,283 - -
Contract liability 9 7,579,976 - - -
Trade payables 17 37,834,597 40,141,001 - -
Other payables and accruals 18 53,649,161 58,581,937 99,356 93,169
Provision 19 6,783,569 5,551,278 - -
Current tax liabilities 2,782,369 2,564,730 - -

108,629,672 112,216,229 99,356 93,169

TOTAL LIABILITIES 108,629,672 112,289,229 99,356 93,169

TOTAL EQUITY AND LIABILITIES 212,750,622 152,206,273 69,521,120 19,408,335
The annexed notes form an integral part of these financial statements.

Statements Of Profit Or Loss And Other
Comprehensive Income
For The Financial Year Ended 31 December 2018

2018 2017 2018 2017
Note RM RM RM RM

REVENUE 20 274,558,876 296,812,166 13,890,000 15,000,000

COST OF SALES 21 (233,577,142) (261,817,543) - -

GROSS PROFIT 40,981,734 34,994,623 13,890,000 15,000,000

OTHER INCOME 22 3,080,148 1,435,463 2,791,826 1,013,794

44,061,882 36,430,086 16,681,826 16,013,794

ADMINISTRATIVE EXPENSES 23 (6,234,039) (4,749,200) (2,136,970) (1,018,388)

OTHER EXPENSES 24 (879,272) (1,178,523) (718,354) (922,575)

PROFIT BEFORE TAXATION 36,948,571 30,502,363 13,826,502 14,072,831

INCOME TAX EXPENSE 25 (9,058,743) (7,984,161) (33,982) (19,663)

PROFIT AFTER TAXATION/TOTAL
COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR 27,889,828 22,518,202 13,792,520 14,053,168

PROFIT AFTER TAXATION/TOTAL
COMPREHENSIVE INCOME
ATTRIBUTABLE TO:-
Owners of the Company 27,889,828 22,518,202 13,792,520 14,053,168

Earnings per share (Sen) attributable to
owners of the Company:
- Basic 26 4.68 4.50
- Diluted 26 4.68 4.50


Statements Of Changes In Equity
Share Retained
Capital Profits Total
The Group Note RM RM RM

Balance at 1.1.2017 15,000,000 12,198,842 27,198,842

Profit after taxation/Total comprehensive income
for the financial year - 22,518,202 22,518,202

Contribution by and distribution to owners of the Company:
- bonus issue 15 5,000,000 (5,000,000) -

- dividends 27 - (9,800,000) (9,800,000)

Total transactions with owners 5,000,000 (14,800,000) (9,800,000)

Balance at 31.12.2017/1.1.2018 20,000,000 19,917,044 39,917,044


- issuance of shares 15 43,750,000 - 43,750,000

- share issuance expenses 15 (1,185,922) - (1,185,922)
- dividend 27 - (6,250,000) (6,250,000)

Total transactions with owners 42,564,078 (6,250,000) 36,314,078

Balance at 31.12.2018 62,564,078 41,556,872 104,120,950


Statements Of Changes In Equity
For The Financial Year Ended 31 December 2018 (cont’d)
Retained Profits/
Share (Accumulated
Capital Loss) Total
The Company Note RM RM RM

Balance at 1.1.2017 15,000,000 61,998 15,061,998



- bonus issue 15 5,000,000 (5,000,000) -
- dividends 27 - (9,800,000) (9,800,000)

Total transactions with owners 5,000,000 (14,800,000) (9,800,000)

Balance at 31.12.2017/1.1.2018 20,000,000 (684,834) 19,315,166



- issuance of shares 15 43,750,000 - 43,750,000
- share issuance expenses 15 (1,185,922) - (1,185,922)
- dividend 27 - (6,250,000) (6,250,000)

Total transactions with owners 42,564,078 (6,250,000) 36,314,078

Balance at 31.12.2018 62,564,078 6,857,686 69,421,764


Statements Of Cash Flows

2018 2017 2018 2017
RM RM RM RM

CASH FLOWS FROM/(FOR) OPERATING ACTIVITIES
Profit before taxation 36,948,571 30,502,363 13,826,502 14,072,831

Adjustments for:-
Depreciation of plant and equipment 5,177,407 4,225,536 - -
Interest expense - 151,368 - -
Listing expenses 718,354 922,575 718,354 922,575
Plant and equipment written off 28,762 30,165 - -
Provision for defect works 3,980,412 3,411,278 - -
Loss/(Gain) on disposal of plant and equipment 1,785 (118) - -
Dividend income - - (13,890,000) (15,000,000)
Interest income (2,645,231) (973,442) (1,219,826) (21,794)
Reversal of provision for defect works (2,748,121) (23,985) - -

Operating profit/(loss) before working capital changes 41,461,939 38,245,740 (564,970) (26,388)
Increase in contract assets (40,792,908) - - -
Increase in contract liabilities 2,202,693 - - -
Increase in amount owing by contract customers - (6,858,477) - -
Increase in amount owing to contract customers - 1,216,791 - -
Decrease/(Increase) in amount owing by a subsidiary - - 262,880 (3,262,880)
Decrease/(Increase) in trade and other receivables 30,171,608 (34,024,848) (112,447) (19,623)
(Decrease)/Increase in trade and other payables (7,228,640) 28,732,298 16,727 72,029

CASH FROM/(FOR) OPERATIONS 25,814,692 27,311,504 (397,810) (3,236,862)
Income tax paid (8,970,208) (8,338,241) (90,086) (129,771)
Interest paid - (151,368) - -

NET CASH FROM/(FOR) OPERATING ACTIVITIES 16,844,484 18,821,895 (487,896) (3,366,633)

CASH FLOWS (FOR)/FROM INVESTING ACTIVITIES
Dividends received - - 7,590,000 15,000,000
Increase in pledged fixed deposits with licensed banks (1,752,088) (3,537,817) - -
Interest received 2,645,231 973,442 1,219,826 21,794
Proceeds from disposal of plant and equipment 4,047 116,400 - -
Purchase of plant and equipment (3,461,452) (5,409,908) - -

NET CASH (FOR)/FROM INVESTING ACTIVITIES (2,564,262) (7,857,883) 8,809,826 15,021,794


Statements Of Cash Flows
For The Financial Year Ended 31 December 2018 (cont’d)

2018 2017 2018 2017
Note RM RM RM RM

CASH FLOWS FROM/(FOR) FINANCING
ACTIVITIES
Dividends paid 27 (6,250,000) (9,800,000) (6,250,000) (9,800,000)
Payment of listing expenses (1,684,172) (1,142,679) (1,684,172) (1,142,679)
Proceeds from issuance of shares 43,750,000 - 43,750,000 -
Repayment of hire purchase obligations 28(a) - (4,048,150) - -

NET CASH FROM/(FOR) FINANCING
ACTIVITIES 35,815,828 (14,990,829) 35,815,828 (10,942,679)

NET INCREASE/ (DECREASE) IN CASH AND
CASH EQUIVALENTS 50,096,050 (4,026,817) 44,137,758 712,482

CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE FINANCIAL YEAR 26,003,813 30,030,630 799,483 87,001

CASH AND CASH EQUIVALENTS AT END
OF THE FINANCIAL YEAR 28(b) 76,099,863 26,003,813 44,937,241 799,483

Notes To The Financial Statements
1. GENERAL INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia. The registered office and
principal place of business are as follows:-
Registered office : Third Floor, No. 77, 79 & 81,

Jalan SS 21/60,
Damansara Utama,
47400 Petaling Jaya,
Selangor Darul Ehsan.

Principal place of business : No. 1-45, 1-43 and 2-45,
Jalan Puteri 4/8,
Bandar Puteri,
47100 Puchong,
Selangor Darul Ehsan.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
directors dated 22 April 2019.
2. HOLDING COMPANY
The holding company is CHC Holdings Sdn. Bhd., a company incorporated in Malaysia.
3. PRINCIPAL ACTIVITIES
The Company is principally engaged in the business of investment holding. The principal activity of the subsidiary is set
out in Note 6 to the financial statements.
4. BASIS OF PREPARATION
The financial statements of the Group are prepared under the historical cost convention and modified to include
other bases of valuation as disclosed in other sections under significant accounting policies, and in compliance with
Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting and the requirements of the
Companies Act 2016 in Malaysia.
4.1 During the current financial year, the Group has adopted the following new accounting standards and/or
interpretations (including the consequential amendments, if any):-
MFRSs and/or IC Interpretations (Including The Consequential Amendments)

MFRS 9 Financial Instruments (IFRS 9 as issued by IASB in July 2014)
MFRS 15 Revenue from Contracts with Customers
IC Interpretation 22 Foreign Currency Transactions and Advance Consideration
Amendments to MFRS 2: Classification and Measurement of Share-based Payment Transactions
Amendments to MFRS 4: Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts

4. BASIS OF PREPARATION (CONT’D)
4.1 During the current financial year, the Group has adopted the following new accounting standards and/or
interpretations (including the consequential amendments, if any) (Cont’d):-
MFRSs and/or IC Interpretations (Including The Consequential Amendments) (Cont’d)

Amendments to MFRS 15: Effective Date of MFRS 15
Amendments to MFRS 15: Clarifications to MFRS 15 ‘Revenue from Contracts with Customers’
Amendments to MFRS 140 – Transfers of Investment Property
Annual Improvements to MFRS Standards 2014 – 2016 Cycles
• Amendments to MFRS 1: Deletion of Short-term Exemptions for First-time Adopters
• Amendments to MFRS 128: Measuring an Associate or Joint Venture at Fair Value
The adoption of the above accounting standards and/or interpretations (including the consequential amendments,
if any) did not have any material impact on the Group’s financial statements other than the new classification of
financial assets under MFRS 9 which is disclosed in Note 35 to the financial statements. This is because the
measurement of financial assets under MFRS 9 and the timing and amount of revenue recognised under MFRS
15 are consistent to the Group’s current practice.
4.2 The Group has not applied in advance the following accounting standards and/or interpretations (including the
consequential amendments, if any) that have been issued by the Malaysian Accounting Standards Board (MASB)
but are not yet effective for the current financial year:-
MFRSs and/or IC Interpretations (Including The Consequential Amendments) Effective Date

MFRS 16 Leases 1 January 2019
IC Interpretation 23 Uncertainty Over Income Tax Treatments 1 January 2019
Amendments to MFRS 9: Prepayment Features with Negative Compensation 1 January 2019
Amendments to MFRS 119: Plan Amendment, Curtailment or Settlement 1 January 2019
Amendments to MFRS 128: Long-term Interests in Associates and Joint Ventures 1 January 2019
Annual Improvements to MFRS Standards 2015 – 2017 Cycles 1 January 2019
Amendments to MFRS 3: Definition of a Business 1 January 2020
Amendments to MFRS 101 and MFRS 108: Definition of Material 1 January 2020
Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020
MFRS 17 Insurance Contracts 1 January 2021
Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture Deferred
The adoption of the above accounting standards and/or interpretations (including the consequential
amendments, if any) is expected to have no material impact on the financial statements of the Group upon their
initial application.

5. SIGNIFICANT ACCOUNTING POLICIES
5.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Key Sources of Estimation Uncertainty
Management believes that there are no key assumptions made concerning the future, and other key sources of
estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year other than as disclosed below:-
(a) Depreciation of Plant and Equipment
The estimates for the residual values, useful lives and related depreciation charges for the plant and
equipment are based on commercial factors which could change significantly as a result of technical
innovations and competitors’ actions in response to the market conditions. The Group anticipates that the
residual values of its plant and equipment will be insignificant. As a result, residual values are not being
taken into consideration for the computation of the depreciable amount. Changes in the expected level
of usage and technological development could impact the economic useful lives and the residual values
of these assets, therefore future depreciation charges could be revised. The carrying amount of plant and
equipment as at the reporting date is disclosed in Note 7 to the financial statements.
(b) Impairment of Plant and Equipment
The Group determines whether its plant and equipment is impaired by evaluating the extent to which the
recoverable amount of the asset is less than its carrying amount. This evaluation is subject to changes such
as market performance, economic and political situation of the country. A variety of methods is used to
determine the recoverable amount, such as valuation reports and discounted cash flows. For discounted
cash flows, significant judgement is required in the estimation of the present value of future cash flows
generated by the assets, which involve uncertainties and are significantly affected by assumptions used
and judgements made regarding estimates of future cash flows and discount rates. The carrying amount of
plant and equipment as at the reporting date is disclosed in Note 7 to the financial statements.
(c) Impairment of Trade Receivables and Contract Assets
The Group uses the general approach to estimate a lifetime expected credit loss allowance for all trade
receivables and contract assets. The contract assets are grouped with trade receivables for impairment
assessment because they have substantially the same risk characteristics as the trade receivables for the
same types of contracts. The Group develops the expected loss rates based on the customer’s financial
information, past trend of payment and adjusts for qualitative and quantitative reasonable and supportable
forward-looking information. If the expectation is different from the estimation, such difference will impact
the carrying values of trade receivables and contract assets. The carrying amounts of trade receivables and
contract assets as at the reporting date are disclosed in Notes 9 and 10 to the financial statements.
(d) Impairment of Non-Trade Receivables
The loss allowances for non-trade financial assets are based on assumptions about risk of default and
expected loss rates. The Group uses judgement in making these assumptions and selecting appropriate
inputs to the impairment calculation, based on the past payment trends and forward-looking estimates
at the end of each reporting period. The carrying amounts of other receivables and amount owing by a
subsidiary as at the reporting date are disclosed in Notes 11 and 12 to the financial statements.

5. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
5.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)
Key Sources of Estimation Uncertainty (Cont’d)
(e) Revenue Recognition for Construction Contracts
The Group recognises construction revenue by reference to the construction progress using the input
method, determined based on the proportion of construction costs incurred for work performed todate
over the estimated total construction costs. The total estimated costs are based on approved budgets,
which require assessment and judgement to be made on changes in, for example, work scope, changes in
costs and costs to completion. In making the judgement, management relies on past experience and the
work of specialists. The carrying amounts of contract assets and contract liability as at the reporting date
are disclosed in Note 9 to the financial statements.
(f) Income Taxes
There are certain transactions and computations for which the ultimate tax determination may be different
from the initial estimate. The Group recognises tax liabilities based on its understanding of the prevailing
tax laws and estimates of whether such taxes will be due in the ordinary course of business. Where the final
outcome of these matters is different from the amounts that were initially recognised, such difference will
impact the income tax expense and deferred tax balances in the period in which such determination is made.
The carrying amounts of the Group’s current tax assets/(liabilities) as at the reporting date is RM167,452
and (RM2,782,369) (2017 - RM111,348 and (RM2,564,730)). The carrying amount of the Company’s current
tax assets as at the reporting date is RM167,452 (2017 - RM111,348).
(g) Provision
The Group recognises a provision for liabilities associated with completed contract based on past experience
of the level of repair of defects. The Group’s provision of defect works is affected by claims due to actual
repair of defects, which may result in the actual costs differing from the Group’s estimates. The carrying
amount of provision as at the reporting date is disclosed in Note 19 to the financial statements.
Critical Judgements Made in Applying Accounting Policies
Management believes that there are no instances of application of critical judgement in applying the Group’s
accounting policies which will have a significant effect on the amounts recognised in the financial statements
other than as disclosed below:-
Contingent Liabilities
The recognition and measurement for contingent liabilities is based on management’s view of the expected
outcome on contingencies after consulting legal counsel for litigation cases and experts, for matters in the
ordinary course of business.

5.2 BASIS OF CONSOLIDATION
The consolidated financial statements include the financial statements of the Company and its subsidiaries made
up to the end of the reporting period.
Subsidiaries are entities (including structured entities, if any) controlled by the Group. The Group controls an
entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. Potential voting rights are considered when
assessing control only when such rights are substantive. The Group also considers it has de facto power over an
investee when, despite not having the majority of voting rights, it has the current ability to direct the activities of
the investee that significantly affect the investee’s return.
Subsidiaries are consolidated from the date on which control is transferred to the Group up to the effective date
on which control ceases, as appropriate.
Intragroup transactions, balances, income and expenses are eliminated on consolidation. Intragroup losses may
indicate an impairment that requires recognition in the consolidated financial statements. Where necessary,
adjustments are made to the financial statements of subsidiaries to ensure consistency of accounting policies
with those of the Group.
(a) Business Combinations
Acquisitions of businesses are accounted for using the acquisition method. Under the acquisition method,
the consideration transferred for acquisition of a subsidiary is the fair value of the assets transferred, liabilities
incurred and the equity interests issued by the Group at the acquisition date. The consideration transferred
includes the fair value of any asset or liability resulting from a contingent consideration arrangement.
Acquisition-related costs, other than the costs to issue debt or equity securities, are recognised in profit or
loss when incurred.
In a business combination achieved in stages, previously held equity interests in the acquiree are remeasured
to fair value at the acquisition date and any corresponding gain or loss is recognised in profit or loss.
Non-controlling interests in the acquiree may be initially measured either at fair value or at the non-
controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets at the
date of acquisition. The choice of measurement basis is made on a transaction-by-transaction basis.
(b) Non-Controlling Interests
Non-controlling interests are presented within equity in the consolidated statements of financial position,
separately from the equity attributable to owners of the Company. Profit or loss and each component of
other comprehensive income are attributed to the owners of the Company and to the non-controlling
interests. Total comprehensive income is attributed to non-controlling interests even if this results in the
non-controlling interests having a deficit balance.

5.2 BASIS OF CONSOLIDATION (CONT’D)
(c) Changes in Ownership Interests in Subsidiaries Without Change of Control
All changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions. Any difference between the amount by which the non-controlling
interest is adjusted and the fair value of consideration paid or received is recognised directly in equity of
the Group.
(d) Loss of Control
Upon the loss of control of a subsidiary, the Group recognises any gain or loss on disposal in profit or loss
which is calculated as the difference between:-
(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest
in the former subsidiary; and
(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the former subsidiary
and any non-controlling interests.
Amounts previously recognised in other comprehensive income in relation to the former subsidiary are
accounted for in the same manner as would be required if the relevant assets or liabilities were disposed of
(i.e. reclassified to profit or loss or transferred directly to retained profits). The fair value of any investments
retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial
recognition for subsequent accounting under MFRS 9 (2017 - MFRS 139) or, when applicable, the cost on
initial recognition of an investment in an associate or a joint venture.
5.3 FUNCTIONAL AND PRESENTATION CURRENCY
The individual financial statements of each entity in the Group are presented in the currency of the primary
economic environment in which the entity operates, which is the functional currency.
The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional
and presentation currency.
5.4 FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised in the statements of financial position when the Group has
become a party to the contractual provisions of the instruments.
Financial instruments are classified as financial assets, financial liabilities or equity instruments in accordance with
the substance of the contractual arrangement and their definitions in MFRS 132. Interest, dividends, gains and
losses relating to a financial instrument classified as a liability are reported as an expense or income. Distributions
to holders of financial instruments classified as equity are charged directly to equity.
Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle
either on a net basis or to realise the asset and settle the liability simultaneously.


5.4 FINANCIAL INSTRUMENTS (CONT’D)
A financial instrument is recognised initially at its fair value. Transaction costs that are directly attributable to the
acquisition or issue of the financial instrument (other than a financial instrument at fair value through profit or loss)
are added to/deducted from the fair value on initial recognition, as appropriate. Transaction costs on the financial
instrument at fair value through profit or loss are recognised immediately in profit or loss.
Financial instruments recognised in the statements of financial position are disclosed in the individual policy
statement associated with each item.
(a) Financial Assets
All recognised financial assets are measured subsequently in their entirety at either amortised cost or
fair value (through profit or loss, or other comprehensive income), depending on the classification of the
financial assets.
Debt Instruments
(i) Amortised Cost
The financial asset is held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest. Interest income is recognised by applying the effective
interest rate to the gross carrying amount of the financial asset. When the asset has subsequently
become credit-impaired, the interest income is recognised by applying the effective interest rate to
the amortised cost of the financial asset.
The effective interest method is a method of calculating the amortised cost of a financial asset and
of allocating interest income over the relevant period. The effective interest rate is the rate that
discounts estimated future cash receipts (including all fees and points paid or received that form
an integral part of the effective interest rate, transaction costs and other premiums or discounts),
excluding expected credit losses, through the expected life of the financial asset or a shorter period
(where appropriate).
(ii) Fair Value through Other Comprehensive Income
The financial asset is held for both collecting contractual cash flows and selling the financial asset,
where the asset’s cash flows represent solely payments of principal and interest. Movements in the
carrying amount are taken through other comprehensive income and accumulated in the fair value
reserve, except for the recognition of impairment, interest income and foreign exchange difference
which are recognised directly in profit or loss. Interest income is calculated using the effective interest
rate method.
(iii) Fair Value through Profit or Loss
All other financial assets that do not meet the criteria for amortised cost or fair value through other
comprehensive income are measured at fair value through profit or loss.
The Group reclassifies debt instruments when and only when its business model for managing those assets
change.

(a) Financial Assets (Cont’d)
Equity Instruments
All equity investments are subsequently measured at fair value with gains and losses recognised in profit
or loss except where the Group has elected to present the subsequent changes in fair value in other
comprehensive income and accumulated in the fair value reserve at initial recognition.
The designation at fair value through other comprehensive income is not permitted if the equity investment
is either held for trading or is designated to eliminate or significantly reduce a measurement or recognition
inconsistency that would otherwise arise.
Dividend income from this category of financial assets is recognised in profit or loss when the Group’s right
to receive payment is established unless the dividends clearly represent a recovery of part of the cost of the
equity investments.
(b) Financial Liabilities
(i) Financial Liabilities at Fair Value through Profit or Loss
Fair value through profit or loss category comprises financial liabilities that are either held for trading
or are designated to eliminate or significantly reduce a measurement or recognition inconsistency
that would otherwise arise. The changes in fair value of these financial liabilities are recognised in
profit or loss.
(ii) Other Financial Liabilities
Other financial liabilities are subsequently measured at amortised cost using the effective interest
method.
The effective interest method is a method of calculating the amortised cost of a financial liability and
of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction costs and other premiums or discounts),
through the expected life of the financial liability or a shorter period (where appropriate).
(c) Equity Instruments
Equity instruments classified as equity are measured initially at cost and are not remeasured subsequently.
Ordinary shares are classified as equity and recorded at the proceeds received, net of directly attributable
transaction costs.
Dividends on ordinary shares are recognised as liabilities when approved for appropriation.


(d) Derecognition
A financial asset or part of it is derecognised when, and only when, the contractual rights to the cash flows
from the financial asset expire or when it transfers the financial asset and substantially all the risks and rewards
of ownership of the asset to another entity. On derecognition of a financial asset measured at amortised
cost, the difference between the carrying amount of the asset and the sum of the consideration received
and receivable is recognised in profit or loss. In addition, on derecognition of a debt instrument classified
as fair value through other comprehensive income, the cumulative gain or loss previously accumulated
in the fair value reserve is reclassified from equity to profit or loss. In contrast, there is no subsequent
reclassification of the fair value reserve to profit or loss following the derecognition of an equity investment.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the
contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference
between the carrying amount of the financial liability extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit
or loss.
(e) Financial Guarantee Contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse
the holder for a loss it incurs because a specific debtor fails to make payment when due in accordance with
the original or modified terms of a debt instrument.
Financial guarantee contracts are recognised initially as liabilities at fair value, net of transaction costs.
Subsequent to initial recognition, financial guarantee contracts are recognised as income in profit or loss
over the period of the guarantee or, when there is no specific contractual period, recognised in profit or
loss upon discharge of the guarantee. If the debtor fails to make payment relating to a financial guarantee
contract when it is due and the Group, as the issuer, is required to reimburse the holder for the associated
loss, the liability is measured at the higher of the amount of the credit loss determined in accordance with
the expected credit loss model and the amount initially recognised less cumulative amortisation.
Accounting Policies Applied Until 31 December 2017
The Group has applied MFRS 9 retrospectively with cumulative financial impacts recognised in the opening
consolidated statements of financial position on 1 January 2018 (date of initial application of MFRS 9) and hence,
the comparative information of its financial instruments is not restated. As a result, the comparative information
of the Group’s financial assets continues to be accounted for in accordance with their previous accounting policies
as summarised below:-
• Financial assets were designated at fair value through profit or loss when the financial asset was either
held for trading or was designated to eliminate or significantly reduce a measurement or recognition
inconsistency that would otherwise arise. Derivatives were also classified as held for trading unless they
were designated as hedges. Financial assets at fair value through profit or loss were stated at fair value at
each reporting date with any gain or loss arising on remeasurement recognised in profit or loss.
• Unquoted trade receivables and other receivables with fixed or determinable payments were classified
as loans and receivables financial assets, measured at amortised cost using the effective interest method,
less any impairment loss. Interest income was recognised by applying the effective interest rate, except for
short-term receivables when the recognition of interest would be immaterial.

5.5 INVESTMENTS IN SUBSIDIARIES

Investments in subsidiaries are stated at cost in the statements of financial position of the Company, and are
reviewed for impairment at the end of the reporting period if events or changes in circumstances indicate that
the carrying values may not be recoverable. The cost of investments includes transaction costs.
On the disposal of the investments in subsidiary, the difference between net disposal proceeds and the carrying
amount of the investments is recognised in profit or loss.
5.6 PLANT AND EQUIPMENT
All items of plant and equipment are initially measured at cost. Cost includes expenditure that are directly
attributable to the acquisition of the asset and other costs directly attributable to bringing the asset to working
condition for its intended use.
Subsequent to initial recognition, all plant and equipment are stated at cost less accumulated depreciation and
any impairment losses.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when the cost is incurred and it is probable that the future economic benefits associated with the asset
will flow to the Group and the cost of the asset can be measured reliably. The carrying amount of parts that are
replaced is derecognised. The costs of the day-to-day servicing of plant and equipment are recognised in profit
or loss as incurred.
Depreciation on plant and equipment is charged to profit or loss (unless it is included in the carrying amount of
another asset) on a straight-line method to write off the depreciable amount of the assets over their estimated
useful lives. Depreciation of an asset does not cease when the asset becomes idle or is retired from active use
unless the asset is fully depreciated. The principal annual rates used for this purpose are:-
Computer software and hardware 20% - 33%

Motor vehicles 20%
Office equipment 20% - 33%
Plant and machinery 20%
Renovation 20%
Site equipment 20% - 33%
The depreciation method, useful lives and residual values are reviewed, and adjusted if appropriate, at the end
of each reporting period to ensure that the amounts, method and periods of depreciation are consistent with
previous estimates and the expected pattern of consumption of the future economic benefits embodied in the
items of the plant and equipment. Any changes are accounted for as a change in estimate.
When significant parts of an item of plant and equipment have different useful lives, they are accounted for as
separate items (major components) of plant and equipment.
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected
from its use. Any gain or loss arising from derecognition of the asset, being the difference between the net
disposal proceeds and the carrying amount, is recognised in profit or loss.

5.7 LEASED ASSETS

(a) Finance Leases
A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards
incidental to ownership. Upon initial recognition, the leased asset is measured at an amount equal to
the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial
recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.
The corresponding liability is included in the statements of financial position as hire purchase payables.
Minimum lease payments made under finance leases are apportioned between the finance costs and the
reduction of the outstanding liability. The finance costs, which represent the difference between the total
leasing commitments and the fair value of the assets acquired, are recognised in the profit or loss and
allocated over the lease term so as to produce a constant periodic rate of interest on the remaining balance
of the liability for each accounting period.
(b) Operating Lease
All leases that do not transfer substantially to the Group all the risks and rewards incidental to ownership
are classified as operating leases and, the leased assets are not recognised on the statements of financial
position of the Group and of the Company.
Payments made under operating leases are recognised as an expense in the profit or loss on a straight-
line method over the term of the lease. Lease incentives received are recognised as a reduction of rental
expense over the lease term on a straight-line method. Contingent rentals are charged to profit or loss in
the reporting period in which they are incurred.
5.8 CONTRACT ASSET AND CONTRACT LIABILITY
A contract asset is recognised when the Group’s right to consideration is conditional on something other than the
passage of time. A contract asset is subject to impairment in accordance to MFRS 9 - Financial Instruments.
A contract liability is stated at cost and represents the obligation of the Group to transfer goods or services to a
customer for which consideration has been received (or the amount is due) from the customers.
5.9 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, and short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value with original maturity periods of three months or less. For the purpose of the statements of
cash flows, cash and cash equivalents are presented net of bank overdrafts.

5.10 IMPAIRMENT
(a) Impairment of Financial Assets
The Group recognises a loss allowance for expected credit losses on investments in debt instruments that
are measured at amortised cost or at fair value through other comprehensive income, trade receivables and
contract assets.
The expected credit loss is estimated as the difference between all contractual cash flows that are due
to the Group in accordance with the contract and all the cash flows that the Group expects to receive,
discounted at the original effective interest rate.
The amount of expected credit losses is updated at each reporting date to reflect changes in credit
risk since initial recognition of the respective financial instrument. The Group always recognises lifetime
expected credit losses for trade receivables and contract assets using the general approach. The expected
credit losses on these financial assets are estimated based on the customer’s financial information, past
trend of payment and are adjusted for forward-looking information (including time value of money where
appropriate).
For all other financial instruments, the Group recognises lifetime expected credit losses when there has
been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial
instrument has not increased significantly since initial recognition, the Group measures the loss allowance
for that financial instrument at an amount equal to 12-month expected credit losses.
The Group recognises an impairment gain or loss in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account, except for investments
in debt instruments that are measured at fair value through other comprehensive income, for which the
loss allowance is recognised in other comprehensive income and accumulated in the fair value reserve, and
does not reduce the carrying amount of the financial asset in the statements of financial position.
Accounting Policy Applied Until 31 December 2017
The Group has applied MFRS 9 retrospectively but has elected not to restate comparative information of its
financial instruments. As a result, the comparative information on the impairment of Group’s financial assets
has been accounted for in accordance with its previous accounting policy as summarised below:-
The Group assessed at the end of each reporting period whether there was objective evidence that a
financial asset (or group of financial assets) was impaired. Impairment losses were incurred only if there was
objective evidence of impairment as a result of one or more events that occurred after the initial recognition
of the asset and that event(s) had an impact on the estimated future cash flows of the financial asset (or
group of financial assets) that could be reliably estimated. In the case of equity investments classified as
available-for-sale, a significant or prolonged decline in the fair value of the security below its cost was
considered an indicator that the assets are impaired.

5.10 IMPAIRMENT (CONT’D)
(b) Impairment of Non-financial Assets
The carrying values of assets, other than those to which MFRS 136 - Impairment of Assets does not apply,
are reviewed at the end of each reporting period for impairment when there is an indication that the assets
might be impaired. Impairment is measured by comparing the carrying values of the assets with their
recoverable amounts. When the carrying amount of an asset exceeds its recoverable amount, the asset
is written down to its recoverable amount and an impairment loss shall be recognised. The recoverable
amount of an asset is the higher of the asset’s fair value less costs to sell and its value in use, which is
measured by reference to discounted future cash flows using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. Where it is not possible
to estimate the recoverable amount of an individual asset, the Group determines the recoverable amount
of the cash-generating unit to which the asset belongs.
An impairment loss is recognised in profit or loss.
When there is a change in the estimates used to determine the recoverable amount, a subsequent increase
in the recoverable amount of an asset is treated as a reversal of the previous impairment loss and is
recognised to the extent of the carrying amount of the asset that would have been determined (net of
amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in profit
or loss immediately.
5.11 PROVISIONS
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past
events, when it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation, and when a reliable estimate of the amount can be made. Provisions are reviewed at the end
of each reporting period and adjusted to reflect the current best estimate. Where the effect of the time value
of money is material, the provision is the present value of the estimated expenditure required to settle the
obligation. The discount rate shall be a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability. The unwinding of the discount is recognised as interest expense in
profit or loss.
5.12 EMPLOYEE BENEFITS
(a) Short-term Benefits
Wages, salaries, paid annual leave, bonuses and non-monetary benefits are measured on an undiscounted
basis and are recognised in profit or loss and included in the construction costs, where appropriate, in the
period in which the associated services are rendered by employees of the Group.
(b) Defined Contribution Plans
The Group’s contributions to defined contribution plans are recognised in profit or loss and included in the
construction costs, where appropriate, in the period to which they relate. Once the contributions have been
paid, the Group has no further liability in respect of the defined contribution plans.

5.13 INCOME TAXES
(a) Current Tax
Current tax assets and liabilities are expected amount of income tax recoverable or payable to the taxation
authorities.
Current taxes are measured using tax rates and tax laws that have been enacted or substantively enacted at
the end of the reporting period and are recognised in profit or loss except to the extent that the tax relates
to items recognised outside profit or loss (either in other comprehensive income or directly in equity).
(b) Deferred Tax
Deferred tax are recognised using the liability method for all temporary differences other than those that
arise from the initial recognition of an asset or liability in a transaction which is not a business combination
and at the time of the transaction, affects neither accounting profit nor taxable profit.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
when the asset is realised or the liability is settled, based on the tax rates that have been enacted or
substantively enacted at the end of the reporting period.
Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused
tax credits to the extent that it is probable that future taxable profits will be available against which the
deductible temporary differences, unused tax losses and unused tax credits can be utilised. The carrying
amounts of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that the related tax benefits will be realised.
Current and deferred tax items are recognised in correlation to the underlying transactions either in profit or loss,
other comprehensive income or directly in equity.
Current tax assets and liabilities or deferred tax assets and liabilities are offset when there is a legally enforceable
right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same
taxable entity (or on different tax entities but they intend to settle current tax assets and liabilities on a net basis)
and the same taxation authority.
(c) Goods and Services Tax (“GST”)
Revenues, expenses and assets are recognised net of GST except for the GST in a purchase of assets or
services which are not recoverable from the taxation authorities, the GST are included as part of the costs
of the assets acquired or as part of the expense item whichever is applicable.
In addition, receivables and payables are also stated with the amount of GST included (where applicable).
The net amount of the GST recoverable from or payable to the taxation authorities at the end of the
reporting period is included in other receivables or other payables.

5.14 CONTINGENT LIABILITIES
A contingent liability is a possible obligation that arises from past events and whose existence will only be
confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Group.
It can also be a present obligation arising from past events that is not recognised because it is not probable that
an outflow of economic resources will be required or the amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the financial statements, unless the
probability of outflow of economic benefits is remote. When a change in the probability of an outflow occurs so
that the outflow is probable, it will then be recognised as a provision.
5.15 OPERATING SEGMENTS
An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s
other components. An operating segment’s operating results are reviewed regularly by the chief operating
decision maker to make decisions about resources to be allocated to the segment and assess its performance,
and for which discrete financial information is available.
5.16 EARNINGS PER ORDINARY SHARE
Basic earnings per ordinary share is calculated by dividing the consolidated profit or loss attributable to ordinary
shareholders of the Group by the weighted average number of ordinary shares outstanding during the reporting
period, adjusted for own shares held.
Diluted earnings per ordinary share is determined by adjusting the consolidated profit or loss attributable to
ordinary shareholders of the Group and the weighted average number of ordinary shares outstanding, adjusted
for the effects of all dilutive potential ordinary shares.
5.17 BORROWING COSTS
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying
asset are recognised in profit or loss using the effective interest method.
5.18 FAIR VALUE MEASUREMENTS
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable
or estimated using a valuation technique. The measurement assumes that the transaction takes place either in
the principal market or in the absence of a principal market, in the most advantageous market. For non-financial
asset, the fair value measurement takes into account a market participant’s ability to generate economic benefits
by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.


5.18 FAIR VALUE MEASUREMENTS (CONT’D)
For financial reporting purposes, the fair value measurements are analysed into level 1 to level 3 as follows:-
Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liability that the entity can
access at the measurement date;
Level 2: Inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or
liability, either directly or indirectly; and
Level 3: Inputs are unobservable inputs for the asset or liability.
The transfer of fair value between levels is determined as of the date of the event or change in circumstances that
caused the transfer.
5.19 REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue from contracts with customers is recognised by reference to each distinct performance obligation in the
contract with customer. Revenue from contracts with customers is measured at its transaction price, being the
amount of consideration which the Group expects to be entitled in exchange for transferring promised goods or
services to a customer, net of sales and service tax, returns, rebates and discounts.
The Group recognises revenue when (or as) it transfers control over a product or service to customer. An asset is
transferred when (or as) the customer obtains control of that asset.
Depending on the substance of the contract, revenue is recognised when the performance obligation is satisfied,
which may be at a point in time or over time. The Group transfers control of a good or service at a point in time
unless one of the following overtime criteria is met:-
• The customer simultaneously receives and consumes the benefits provided as the Group performs.
• The Group’s performance creates or enhances an asset that the customer controls as the asset is created or
enhanced.
• The Group’s performance does not create an asset with an alternative use and the Group has an enforceable
right to payment for performance completed todate.
Construction Services
Revenue from construction services is recognised over time in the period in which the services are rendered
using the input method, determined based on the proportion of construction costs incurred for work performed
todate over the estimated total construction costs. Transaction price is computed based on the price specified
in the contract and adjusted for any variable consideration such as incentives and penalties. Past experience is
used to estimate and provide for the variable consideration, using expected value method and revenue is only
recognised to the extent that it is highly probable that a significant reversal will not occur.
A receivable is recognised when the construction services are rendered as this is the point in time that the
consideration is unconditional because only the passage of time is required before the payment is due. If the
construction services rendered exceed the payment received, a contract asset is recognised. If the payments
exceed the construction services rendered, a contract liability is recognised.

5.20 REVENUE FROM OTHER SOURCES AND OTHER OPERATING INCOME
(a) Dividend Income
Dividend income from investment is recognised when the right to receive dividend payment is established.
(b) Interest Income
Interest income is recognised on an accrual basis using the effective interest method.
6. INVESTMENT IN A SUBSIDIARY
The Company
2018 2017
RM RM
Unquoted shares, at cost:-

At 1 January 17,984,357 14,984,357
Addition during the financial year - 3,000,000

At 31 December 17,984,357 17,984,357

The details of the subsidiary are as follows:-

Percentage of
Principal Place of Issued Share Capital
Business/Country of Held by Parent
Name of Subsidiary Incorporation 2018 2017 Principal Activity
% %
Grand Dynamic Builders Malaysia 100 100 Provision of construction services

Sdn. Bhd. (“GDBSB”)

In the previous financial year, the Company subscribed for an additional 3,000,000 ordinary shares for a total purchase
consideration of RM3,000,000 in GDBSB.

7. PLANT AND EQUIPMENT

At Depreciation At
1.1.2018 Additions Disposal Write-off Charges 31.12.2018
The Group RM RM RM RM RM RM

2018

Carrying Amount

Computer software and
hardware 373,061 135,120 - (5) (173,372) 334,804
Motor vehicles 671,936 203,037 - - (290,878) 584,095
Office equipment 214,300 12,179 - (5,196) (86,914) 134,369
Plant and machinery 8,445,762 556,500 - - (3,138,383) 5,863,879
Renovation 49,392 - - - (22,648) 26,744
Site equipment 3,220,225 2,554,616 (5,832) (23,561) (1,465,212) 4,280,236

12,974,676 3,461,452 (5,832) (28,762) (5,177,407) 11,224,127

At Depreciation At
1.1.2017 Additions Disposal Write-off Charges 31.12.2017
The Group RM RM RM RM RM RM

2017

Carrying Amount

Computer software and
hardware 382,035 165,240 - - (174,214) 373,061
Motor vehicles 687,418 419,414 (116,282) - (318,614) 671,936
Office equipment 195,173 111,026 - (3,179) (88,720) 214,300
Plant and machinery 7,362,642 3,595,000 - - (2,511,880) 8,445,762
Renovation 35,000 38,246 - - (23,854) 49,392
Site equipment 3,274,483 1,080,982 - (26,986) (1,108,254) 3,220,225

11,936,751 5,409,908 (116,282) (30,165) (4,225,536) 12,974,676


7. PLANT AND EQUIPMENT (CONT’D)

At Accumulated Carrying
Cost Depreciation Amount
RM RM RM
The Group

2018

Computer software and hardware 1,002,744 (667,940) 334,804
Motor vehicles 1,551,359 (967,264) 584,095
Office equipment 517,405 (383,036) 134,369
Plant and machinery 15,538,830 (9,674,951) 5,863,879
Renovation 138,246 (111,502) 26,744
Site equipment 8,186,039 (3,905,803) 4,280,236

26,934,623 (15,710,496) 11,224,127

2017

Computer software and hardware 958,091 (585,030) 373,061
Motor vehicles 1,348,322 (676,386) 671,936
Office equipment 519,594 (305,294) 214,300
Plant and machinery 14,982,330 (6,536,568) 8,445,762
Renovation 138,246 (88,854) 49,392
Site equipment 5,759,919 (2,539,694) 3,220,225

23,706,502 (10,731,826) 12,974,676

8. AMOUNT OWING BY/(TO) CONTRACT CUSTOMERS

The Group
2018 2017
RM RM

Contract costs incurred to-date - 751,682,259
Attributable profits to-date - 77,302,314

- 828,984,573
Progress billings to-date - (812,437,771)

- 16,546,802

Amount owing by contract customers - 21,924,085
Amount owing to contract customers - (5,377,283)

- 16,546,802

These amounts owing by/(to) contract customers are presented as contract assets/(liability) during the financial year.

9. CONTRACT ASSETS/(LIABILITY)
The Group
2018 2017
RM RM

Contract assets relating to construction contracts 62,716,993 -

Contract liability relating to a construction contract (7,579,976) -

55,137,017 -

(a) The contract assets primarily relate to the Group’s right to consideration for construction work completed on
construction contracts but not yet billed as at the reporting date. This balance will be billed progressively in the
future upon the fulfillment of contractual milestones.
Included in contract assets are retention sums receivable amounting to RM39,018,885. The retention sums are to
be settled in accordance with the terms of the respective contracts.
(b) The contract liability primarily relates to timing differences between construction work certified by a customer
and construction costs incurred plus attributable profit.
(c) The changes to contract assets and contract liability balances during the financial year are summarised below:-
The Group
2018
RM

At 1 January:
- As previously reported 16,546,802
- Retention sum (Note 10(b)) 37,649,284
- As restated 54,196,086
Revenue recognised in profit or loss during the financial year:

- that was included in the contract liabilities at 1 January 5,377,283
- from additional contract assets and contract liabilities during the financial year 269,181,593
Billing to customers during the financial year (273,617,945)
At 31 December 55,137,017
As represented by:-
Contract assets 62,716,993
Contract liability (7,579,976)
55,137,017

10. TRADE RECEIVABLES
The Group
2018 2017
Note RM RM

Trade receivables (a) 33,725,375 40,205,002
Retention sums (b) - 37,649,284

33,725,375 77,854,286

(a) The Group’s normal trade credit term is 30 (2017 - 30) days. Other credit terms are assessed and approved on a
case-by-case basis.
(b) The retention sums are presented as part of contract assets during the financial year. In the previous financial year,
the retention sums were to be settled in accordance with the terms of the respective contracts.
11. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

2018 2017 2018 2017
RM RM RM RM

Other receivables:-

Third parties 547,730 264,129 - -
Advances to subcontractors/suppliers 18,978,672 5,584,093 - -
GST receivables 424,410 19,623 86,169 19,623

19,950,812 5,867,845 86,169 19,623

Deposits 1,395,792 1,761,607 - -
Prepayments 240,151 230,644 45,901 230,644

21,586,755 7,860,096 132,070 250,267

The advance payments to subcontractors/suppliers are unsecured and interest-free. The amount owing will be offset
against future works performance/purchases from the subcontractor/suppliers.
12. AMOUNT OWING BY A SUBSIDIARY
The amount owing is non-trade in nature, unsecured, interest-free and receivable on demand. The amount owing is to
be settled in cash.

13. SHORT-TERM INVESTMENTS

2018 2017 2018 2017
RM RM RM RM

Unit trusts in Malaysia, at fair value 65,260,844 20,470,180 44,466,173 -

Market value of short-term investments 65,260,844 20,470,180 44,466,173 -

14. FIXED DEPOSITS WITH LICENSED BANKS
(a) The fixed deposits with licensed banks of the Group at the end of the reporting period bore effective interest
rates ranging from 2.55% to 3.25% (2017 - 2.55% to 3.00%) per annum. The fixed deposits have a maturity period
of 365 (2017 - 365) days.
(b) The fixed deposits with licensed banks of the Group at the end of the reporting period had been pledged to
licensed banks as security for banking facilities granted to the Group.
15. SHARE CAPITAL
The Group/The Company

2018 2017 2018 2017
Number of Shares RM RM

Issued and Fully Paid-up

Ordinary shares

At 1 January 500,000,000 15,000,000 20,000,000 15,000,000
Issuance of new shares 125,000,000 - 43,750,000 -
Bonus issue - 5,000,000 - 5,000,000

625,000,000 20,000,000 63,750,000 20,000,000

Share split of every 1 existing ordinary
share into 25 ordinary shares - 480,000,000 - -
Share issuance expenses - - (1,185,922) -

At 31 December 625,000,000 500,000,000 62,564,078 20,000,000


15. SHARE CAPITAL (CONT’D)
(a) During the financial year:-
The Company increased its issued and paid-up share capital from RM20,000,000 to RM63,750,000 by the
allotment of 125,000,000 new ordinary shares pursuant to the listing of the Company on the ACE Market of
Bursa Malaysia Securities Berhad for a total cash consideration of RM43,750,000. The new ordinary shares issued
rank pari passu in all respects with the existing shares.
(b) In the previous financial year:-
(i) The Company increased its issued share capital from RM15,000,000 to RM20,000,000 by the allotment of
5,000,000 new ordinary shares. The new ordinary shares were issued by way of capitalisation of retained
profits. The new ordinary shares issued rank pari passu in all respects with the existing shares.
(ii) The Company undertook a share split involving subdivision of every 1 existing ordinary share in the Company
into 25 ordinary shares.
(c) The holders of ordinary shares are entitled to receive dividends as and when declared by the Company, and are
entitled to one vote per ordinary share at meetings of the Company. The ordinary shares have no par value.
16. DEFERRED TAX LIABILITY
The Group
2018 2017
RM RM

At 1 January 73,000 73,000
Recognised in profit or loss (Note 25) (73,000) -

At 31 December - 73,000

The deferred tax liability recognised at the end of the reporting period and after appropriate offsetting are as follows:-
The Group
2018 2017
RM RM

Deferred tax asset:-
Provision for defect works (728,880) (618,200)

Deferred tax liability:-
Accelerated capital allowances over depreciation 728,880 691,200

- 73,000


17. TRADE PAYABLES

The Group
2018 2017
Note RM RM

Trade payables (a) 17,310,559 21,657,608
Retention sums (b) 20,524,038 18,483,393

37,834,597 40,141,001

(a) The normal trade credit terms granted to the Group range from 30 to 60 (2017 - 30 to 60) days.
(b) The retention sums are to be settled in accordance with the terms of the respective contracts.
18. OTHER PAYABLES AND ACCRUALS

2018 2017 2018 2017
Note RM RM RM RM
Other payables (a) 14,149,796 7,854,676 27,508 25,747

Accruals (b) 39,499,365 49,537,451 71,848 67,422
GST payable - 1,189,810 - -

53,649,161 58,581,937 99,356 93,169

(a) Included in other payables of the Group are advances from customers amounting to RM14,042,288 (2017 -
RM7,729,559).
(b) Included in accruals of the Group are accrued costs of construction for projects amounting to RM27,969,198
(2017 - RM40,626,428).
19. PROVISION

The Group
2018 2017
RM RM

At 1 January 5,551,278 2,163,985
Provision made during the financial year 3,980,412 3,411,278
Provision reversed during the financial year (2,748,121) (23,985)

At 31 December 6,783,569 5,551,278

Provision is made in respect of the rectification costs for defect works which are expected to be incurred on the
completed projects during the defect liability periods based on respective terms of contracts.

20. REVENUE

2018 2017 2018 2017
RM RM RM RM

Construction contracts 274,558,876 296,812,166 - -
Dividend income - - 13,890,000 15,000,000

The transaction price allocated to the remaining performance obligations that are unsatisfied or partially unsatisfied as
at the end of the reporting period are summarised below:-
The Group
2019 2020 Total
RM RM RM

Construction contracts 442,442,790 136,902,834 579,345,624

Comparative information is not presented by virtue of the exemption given in MFRS 15.C5(d).
21. COST OF SALES
The Group
2018 2017
RM RM

Depreciation of plant and equipment 5,018,431 3,972,767
Hire purchase interests - 151,368
Rental expense on:
- equipment 2,073,866 1,541,619
- office - 5,243
- others 80,749 90,785
Project cost, incentives and related expenses 206,208,829 237,837,095
Provision for defect works 3,980,412 3,411,278
Plant and equipment written off 28,605 26,986
Reversal of provision for defect works (2,748,121) (23,985)
Staff costs:
- salaries and other emoluments 17,167,676 13,428,208
- defined contribution plan 1,766,695 1,376,179

233,577,142 261,817,543


22. OTHER INCOME

2018 2017 2018 2017
RM RM RM RM

Included in other income are the following items:-

Gain on disposal of plant and equipment - 118 - -
Interest income:
- fixed deposits/repo 701,722 493,229 60,574 21,794
- short-term investments 1,943,509 480,213 1,159,252 -
Management services income - - 1,572,000 992,000
Scrap sales 227,644 237,833 - -

23. ADMINISTRATIVE EXPENSES

2018 2017 2018 2017
RM RM RM RM

Included in administrative expenses are the
following items:-

Auditors’ remuneration:
- audit fees
- current financial year 66,500 60,800 21,500 17,800
- other services
- current financial year 5,000 - 5,000 -
- underprovision in the previous financial year 4,500 - 4,500 -
Directors’ fees 154,948 31,204 154,948 31,204
Directors’ non-fee remuneration:
- salaries and other emoluments 1,659,702 1,478,227 1,059,570 677,105
- defined contribution plan 141,546 125,916 96,696 61,920
Staff costs (including other key management
personnel as disclosed in Note 29):
- salaries and other emoluments 2,609,715 1,797,600 307,247 174,782
Rental expense of:
- equipment 7,820 6,380 - -
- office 139,400 118,000 - -


24. OTHER EXPENSES

2018 2017 2018 2017
RM RM RM RM

Depreciation of plant and equipment 158,976 252,769 - -
Listing expenses 718,354 922,575 718,354 922,575
Loss on disposal of plant and equipment 1,785 - - -
Plant and equipment written off 157 3,179 - -

879,272 1,178,523 718,354 922,575

25. INCOME TAX EXPENSE

2018 2017 2018 2017
RM RM RM RM

Current tax:
- for the financial year 9,051,361 7,718,730 31,722 16,730
- underprovision in previous financial years 80,382 265,431 2,260 2,933

9,131,743 7,984,161 33,982 19,663

Deferred tax (Note 16):
- overprovision in the previous financial year (73,000) - - -

9,058,743 7,984,161 33,982 19,663

A reconciliation of income tax expense applicable to the profit before taxation at the statutory tax rate to income tax
expense at the effective tax rate of the Group and of the Company is as follows:-

2018 2017 2018 2017
RM RM RM RM

Profit before taxation 36,948,571 30,502,363 13,826,502 14,072,831

Tax at the statutory tax rate of 24% (2017 - 24%) 8,867,657 7,320,567 3,318,360 3,377,479
Tax effects of:-

Non-taxable income (466,442) (115,251) (3,611,820) (3,600,000)
Non-deductible expenses 546,866 600,644 325,182 241,521
Deferred tax asset not recognised during the
financial year 185,280 299,040 - -
Effects of changes in corporate income tax rates (82,000) (386,270) - (2,270)
Underprovision of current tax in previous
financial years 80,382 265,431 2,260 2,933
Overprovision of deferred taxation in the
previous financial year (73,000) - - -

Income tax expense for the financial year 9,058,743 7,984,161 33,982 19,663

25. INCOME TAX EXPENSE (CONT’D)

Domestic income tax is calculated at the Malaysian statutory rate of 24% (2017 - 24%) of the estimated assessable
profit for the financial year.
For years of assessment 2017 and 2018, the Malaysian statutory tax rate will be reduced by 1% to 4%, based on the
prescribed incremental percentage of chargeable income from business, compared to that of the immediate preceding
year of assessment. The Group has accounted for the reduction in the tax rate in the current financial year, based on
the percentage of increase in chargeable income of the Company and its subsidiary.
The temporary differences attributable to the deferred tax asset which is not recognised in the financial statements of
the Group is in respect of provision for defect works amounting to RM3,747,000 (2017 - RM2,975,000).
26. EARNINGS PER SHARE

The Group
2018 2017

Profit attributable to owners of the Company (RM) 27,889,828 22,518,202

Weighted average number of ordinary shares in issue:-

Ordinary share at 1 January 500,000,000 15,000,000
Issuance of shares 95,890,411 -
Bonus issue - 5,000,000
Share split - 480,000,000

Weighted average number of ordinary shares at 31 December 595,890,411 500,000,000

Earnings per share (Sen) attributable to the owners of the Company:
- Basic 4.68 4.50
- Diluted 4.68 4.50

The Company has not issued any dilutive potential ordinary shares and hence, the diluted earnings per share is equal
to the basic earnings per share.
27. DIVIDENDS
The Group/The Company
2018 2017
RM RM
In respect of the financial year ended 31 December 2018/31 December 2017:

- a first interim single-tier dividend of RM0.01 (2017 - approximately RM0.07)
per ordinary share 6,250,000 1,000,000
- a second interim single-tier dividend RM Nil (2017 - RM0.15) per ordinary share - 3,000,000
- a third interim single-tier dividend RM Nil (2017 - RM0.29) per ordinary share - 5,800,000

6,250,000 9,800,000


28. CASH FLOW INFORMATION
(a) The reconciliation of liability arising from financing activities are as follows:-
Hire Purchase
RM
The Group

2017

At 1 January 4,048,150

Changes in Financing Cash Flows
Repayment of hire purchase obligations (4,048,150)
Repayment of hire purchase interests (151,368)

Non-cash Change
Finance charges recognised in profit or loss 151,368

At 31 December -

(b) For the purpose of the statements of cash flows, cash and cash equivalents comprise the following:-

2018 2017 2018 2017
RM RM RM RM

Cash and bank balances 10,839,019 5,533,633 471,068 799,483
Fixed deposits with licensed banks 7,230,057 5,477,969 - -
Short-term investments 65,260,844 20,470,180 44,466,173 -

83,329,920 31,481,782 44,937,241 799,483
Less: Fixed deposits pledged to licensed
banks (Note 14) (7,230,057) (5,477,969) - -

76,099,863 26,003,813 44,937,241 799,483


29. KEY MANAGEMENT PERSONNEL COMPENSATION
The key management personnel of the Group and of the Company include executive directors, non-executive directors
and certain members of senior management of the Group and of the Company.
The key management personnel compensation during the financial year are as follows:-

2018 2017 2018 2017
RM RM RM RM
Directors:-
Short term employee benefits:
- fees 154,948 31,204 154,948 31,204
- salaries and other emoluments 1,659,702 1,478,227 1,059,570 677,105

1,956,196 1,635,347 1,311,214 770,229

Other key management personnel:-
Short term employee benefits:
- salaries and other emoluments 1,081,132 920,232 307,247 174,782

1,204,543 1,021,070 343,895 195,626

The total project incentives and defined contribution plan paid to the executive directors and other key management
personnel amounted to RM668,712 (2017 - RM1,578,003) and RM466,271 (2017 - RM912,047) respectively.
The estimated monetary value of benefits-in-kind provided by the Group to the directors and other key management
personnel were RM21,250 and RM15,000 (2017 - RM26,250 and RM14,133) respectively.
30. RELATED PARTY DISCLOSURES
30.1 Identities of Related Parties
Parties are considered to be related to the Company if the Company has the ability, directly or indirectly, to
control or jointly control the party or exercise significant influence over the party in making financial and operating
decisions, or vice versa, or where the Company and the party are subject to common control.
In addition to the information detailed elsewhere in the financial statements, the Group and the Company has
related party relationships with its directors, holding company, key management personnel and entities within
the same group of companies.

30. RELATED PARTY DISCLOSURES (CONT’D)
30.2 Related Party Transactions and Balances
Other than those disclosed elsewhere in the financial statements, the Group and the Company also carried out
the following transactions with the related parties during the financial year:-

2018 2017 2018 2017
RM RM RM RM

Disposal of motor vehicles to directors - 111,453 - -
Management fees received from a subsidiary - - (1,572,000) (992,000)
Dividends receivable/ received from a subsidiary - - (13,890,000) (15,000,000)

The significant outstanding balances of the related parties together with their terms and conditions are disclosed
in the respective notes to the financial statements.
31. OPERATING SEGMENTS

Operating segments are prepared in a manner consistent with the internal reporting provided to the Managing Director
as its chief operating decision maker in order to allocate resources to segments and to assess their performance
on a quarterly basis. For management purposes, the Group is organised into business units based on their services
provided.
The Group is organised into 2 main reportable segments as follows:-
(i) Construction segment - involved in provision of construction services.
(ii) Investment holding segment - involved in group-level corporate services.
Transactions between reportable segments are carried out on agreed terms between both parties. The effects of such
inter-segment transactions are eliminated on consolidation.

31. OPERATING SEGMENTS (CONT’D)
31.1 BUSINESS SEGMENTS
Investment
Construction Holding
Segment Segment The Group
RM RM RM
2018

Revenue

External revenue/Consolidated revenue 274,558,876 - 274,558,876
Inter-segment revenue - 13,890,000 13,890,000

274,558,876 13,890,000 288,448,876

Consolidation adjustments (13,890,000)

Consolidated revenue 274,558,876

Represented by:-

Revenue recognised at a point of time
- Dividend income - 13,890,000 13,890,000

Revenue recognised over time
- Construction contracts 274,558,876 - 274,558,876

274,558,876 13,890,000 288,448,876


274,558,876

Results

Segment profit/(loss) 43,568,362 (2,855,324) 40,713,038
Interest income 1,425,405 1,219,826 2,645,231
Depreciation of plant and equipment (5,177,407) - (5,177,407)
Provision for defect works (3,980,412) - (3,980,412)
Reversal of provision for defect works 2,748,121 - 2,748,121

Consolidated profit/(loss) before taxation 38,584,069 (1,635,498) 36,948,571
Income tax expense (9,024,761) (33,982) (9,058,743)

Consolidated profit/(loss) after taxation 29,559,308 (1,669,480) 27,889,828


31.1 BUSINESS SEGMENTS (CONT’D)
Investment
RM RM RM
2018

Assets

Segment assets/Consolidated total assets 167,513,859 45,236,763 212,750,622

Additions to non-current assets other than
financial instrument:
- Plant and equipment 3,461,452 - 3,461,452

Liabilities

Segment liabilities/Consolidated total liabilities 108,530,316 99,356 108,629,672

2017

Revenue

External revenue/Consolidated revenue 296,812,166 - 296,812,166
Inter-segment revenue - 15,000,000 15,000,000

296,812,166 15,000,000 311,812,166


Consolidated revenue 296,812,166

Represented by:-

Revenue recognised at a point of time
- Dividend income - 15,000,000 15,000,000

Revenue recognised over time
- Construction contracts 296,812,166 - 296,812,166

296,812,166 15,000,000 311,812,166


296,812,166


31.1 BUSINESS SEGMENTS (CONT’D)
Investment
RM RM RM
2017
Results

Segment profit/(loss) 39,234,081 (1,940,963) 37,293,118
Interest income 951,648 21,794 973,442
Interest expense (151,368) - (151,368)
Depreciation of plant and equipment (4,225,536) - (4,225,536)
Provision for defect works (3,411,278) - (3,411,278)
Reversal of provision for defect works 23,985 - 23,985

Consolidated profit/(loss) before taxation 32,421,532 (1,919,169) 30,502,363
Income tax expense (7,964,498) (19,663) (7,984,161)

Consolidated profit/(loss) after taxation 24,457,034 (1,938,832) 22,518,202

Assets

Segment assets/Consolidated total assets 151,045,175 1,161,098 152,206,273

Additions to non-current assets other than
financial instrument:
- Plant and equipment 5,409,908 - 5,409,908

Liabilities

Segment liabilities/Consolidated total liabilities 112,196,060 93,169 112,289,229

31.2 GEOGRAPHICAL INFORMATION
The Group operates predominantly in Malaysia. Accordingly, the information by geographical segment is not
presented.

31.3 MAJOR CUSTOMERS

The following are major customers with revenue equal to or more than 10% of the Group’s total revenue.
2018
RM Segment

Customer B 81,304,049 Construction
Customer C 65,997,475 Construction
Customer D 60,085,235 Construction
Customer E 63,126,824 Construction

2017
RM Segment
Customer A 74,817,984 Construction

Customer B 96,094,354 Construction
Customer C 104,773,544 Construction

32. CAPITAL COMMITMENTS
The Group
2018 2017
RM RM

Purchase of plant and equipment 3,310 103,535

33. OPERATING LEASE COMMITMENT
The future minimum lease payments under the non-cancellable operating leases are as follows:-
The Group
2018 2017
RM RM

Not more than 1 year 48,500 70,000
Later than 1 year and not later than 5 years - 20,000

48,500 90,000


34. CONTINGENT LIABILITY
No provisions are recognised on the following matters as it is not probable that a future sacrifice of economic benefits
will be required or the amount is not capable of reliable measurement:-
The Group
2018 2017
RM RM
Secured

Performance bond and tender bond guarantees extended by a subsidiary to
third parties 45,314,552 54,316,747

35. FINANCIAL INSTRUMENTS
The Group’s activities are exposed to a variety of market risk (including foreign currency risk, interest rate risk and
equity price risk), credit risk and liquidity risk. The Group’s overall financial risk management policy focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial
performance.
35.1 FINANCIAL RISK MANAGEMENT POLICIES
The Group’s policies in respect of the major areas of treasury activity are as follows:-
(a) Market Risk
(i) Foreign Currency Risk
The Group does not have any transactions or balances denominated in foreign currencies and hence,
is not exposed to foreign currency risk.
(ii) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.
The Group’s fixed deposits with licensed banks is carried at amortised cost. Therefore, they are not
subject to interest rate risk as defined in MFRS 7 since neither the carrying amounts nor the future
cash flows will fluctuate because of a change in market interest rates.
Interest Rate Risk Sensitivity Analysis
The Group does not have any interest-bearing borrowings and hence, no sensitivity analysis is
presented.

35. FINANCIAL INSTRUMENTS (CONT’D)
35.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
(a) Market Risk (Cont’d)
(iii) Equity Price Risk
The Group’s principal exposure to equity price risk arises mainly from changes in investment prices.
The Group manages its exposure to equity price risk by maintaining a portfolio of equities with
different risk profiles.
Equity Price Risk Sensitivity Analysis
The following table details the sensitivity analysis to a reasonably possible change in the prices of the
investments at the end of the reporting period, with all other variable held constant:-

2018 2017 2018 2017
RM RM RM RM
Effects on profit after taxation/other

comprehensive income

Increase of 10% 6,526,084 2,047,018 4,446,617 -
Decrease of 10% (6,526,084) (2,047,018) (4,446,617) -

(b) Credit Risk
The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises mainly from receivables.
The Group manages its exposure to credit risk by the application of credit approvals, credit limits and
monitoring procedures on an ongoing basis. For other financial assets, the Group minimises credit risk by
dealing exclusively with high credit rating counterparties.
(i) Credit Risk Concentration Profile
The Group’s major concentration of credit risk relates to the amounts owing by 4 (2017 - 4) customers
which constituted approximately 92% (2017 - 93%) trade receivables at the end of the reporting
period.
(ii) Exposure to Credit Risk
At the end of the reporting period, the maximum exposure to credit risk is represented by the carrying
amount of each class of financial assets recognised in the statements of financial position of the Group
and of the Company after deducting any allowance for impairment losses (where applicable).

(b) Credit Risk (Cont’d)
(iii) Assessment of Impairment Losses
At each reporting date, the Group assesses whether any of financial assets at amortised cost and
contract assets are credit impaired.
The gross carrying amounts of those financial assets are written off when there is no reasonable
expectation of recovery (i.e. the debtor does not have assets or sources of income to generate
sufficient cash flows to repay the debt) despite they are still subject to enforcement activities.
Trade Receivables and Contract Assets
For construction contracts, the Group assessed the expected credit loss of each customer individually
based on their financial information and past trends of payments as there are only a few customers.
All of these customers have low risk of default as they have a strong capacity to meet their debts.

To measure the expected credit losses, trade receivables and contract assets have been grouped
based on shared credit risk characteristics and the days past due. The contract assets relate to
unbilled work in progress and have substantially the same risk characteristics as the trade receivables
for the same types of contracts. Therefore, the Group concluded that the expected loss rates for
trade receivables are a reasonable approximation of the loss rates for the contract assets.
The information about the exposure to credit risk and the loss allowances calculated under MFRS 9
for both trade receivables and contract assets are summarised below:-
Lifetime
Gross Loss Carrying
Amount Allowance Amount
RM RM RM
The Group

2018

Current (not past due) 33,720,665 - 33,720,665
1 to 30 days past due 4,710 - 4,710

Trade receivables 33,725,375 - 33,725,375
Contract assets 62,716,993 - 62,716,993

96,442,368 - 96,442,368


(iii) Assessment of Impairment Losses (Cont’d)
In the last financial year, the loss allowance on trade receivables was calculated under MFRS 139. The
ageing analysis of trade receivables is as follows:-
Gross Individual Carrying

Amount Impairment Amount
RM RM RM
The Group

2017
Not past due 77,754,189 - 77,754,189

Past due:
- less than 3 months 86,750 - 86,750
- 3 to 6 months 13,347 - 13,347

77,854,286 - 77,854,286

The Group believes that no impairment allowance is necessary in respect of trade receivables that
are past due but not impaired because they are companies with good collection track record and no
recent history of default.
Other Receivables

Other receivables are also subject to the impairment requirements of MFRS 9, the identified
impairment loss was immaterial and hence, it is not provided for.
Fixed Deposits with Licensed Banks, Cash and Bank Balances
The Group considers these banks and financial institutions have low credit risks. Therefore, the Group
is of the view that the loss allowance is immaterial and hence, it is not provided for.

(iii) Assessment of Impairment Losses (Cont’d)
Amount Owing by a Subsidiary
The Company applies the general approach to measuring expected credit losses for all inter-company
balances. Generally, the Company considers loans and advances to subsidiaries have low credit risks.
The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial
position deteriorates significantly. As the Company is able to determine the timing of payments of
the subsidiaries’ loans and advances when they are payable, the Company considers the loans and
advances to be in default when the subsidiaries are not able to pay when demanded. The Company
considers a subsidiary’s loan or advance to be credit impaired when the subsidiary is unlikely to repay
its loan or advance in full or the subsidiary is continuously loss making or the subsidiary is having a
deficit in its total equity.
The Company determines the probability of default for these loans and advances individually using
internal information available.
(c) Liquidity Risk
Liquidity risk arises mainly from general funding and business activities. The Group practises prudent risk
management by maintaining sufficient cash balances and adequate working capital to meet its obligation
as and when they fall due.
Maturity Analysis
The following table sets out the maturity profile of the financial liabilities at the end of the reporting period
based on contractual undiscounted cash flows (including interest payments computed using contractual
rates or, if floating, based on the rates at the end of the reporting period):-
Contractual
Carrying Undiscounted Within
Amount Cash Flows 1 Year
RM RM RM
The Group
2018

Non-derivative Financial Liabilities
Trade payables 17,310,559 17,310,559 17,310,559
Other payables and accruals 39,606,873 39,606,873 39,606,873

56,917,432 56,917,432 56,917,432


(c) Liquidity Risk (Cont’d)
Maturity Analysis (Cont’d)
The following table sets out the maturity profile of the financial liabilities at the end of the reporting period
based on contractual undiscounted cash flows (including interest payments computed using contractual
rates or, if floating, based on the rates at the end of the reporting period) (Cont’d):-
Contractual
Carrying Undiscounted Within
Amount Cash Flows 1 Year
RM RM RM
The Group
2017

Non-derivative Financial Liabilities
Trade payables 21,657,608 21,657,608 21,657,608
Other payables and accruals 49,662,568 49,662,568 49,662,568

71,320,176 71,320,176 71,320,176

The Company

2018

Non-derivative Financial Liability
Other payables and accruals 99,356 99,356 99,356

2017

Non-derivative Financial Liability
Other payables and accruals 93,169 93,169 93,169


35.2 CAPITAL RISK MANAGEMENT
The Group manages its capital to ensure that entities within the Group will be able to maintain an optimal capital
structure so as to support their businesses and maximise shareholders’ value. To achieve this objective, the Group
may make adjustments to the capital structure in view of changes in economic conditions, such as adjusting the
amount of dividend payment, returning of capital to shareholders or issuing new shares.
The Group manages its capital based on debt-to-equity ratio. The debt-to-equity ratio is calculated as net debt
divided by total equity. The debt-to-equity of the Group at the end of the reporting period is not presented as
there is no external borrowing.
35.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS
2018
RM RM
Financial Assets

Mandatorily at Fair Value Through Profit or Loss

Short-term investments 65,260,844 44,466,173

Amortised Cost

Trade receivables 33,725,375 -
Other receivables 547,730 -
Amount owing by a subsidiary - 6,300,000
Fixed deposits with licensed banks 7,230,057 -
Cash and bank balances 10,839,019 471,068

52,342,181 6,771,068

Financial Liability

Amortised Cost

Trade payables 17,310,559 -
Other payables and accruals 39,606,873 99,356

56,917,432 99,356


35.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS (CONT’D)
2017
RM RM
Financial Assets

Loans and Receivables Financial Assets
Trade receivables 40,205,002 -
Other receivables 264,129 -
Amount owing by a subsidiary - 262,880
Fixed deposits with licensed banks 5,477,969 -
Cash and bank balances 5,533,633 799,483

51,480,733 1,062,363

Fair Value through Profit or Loss
Short-term investments 20,470,180 -

Financial Liability

Other Financial Liabilities
Trade payables 21,657,608 -
Other payables and accruals 49,662,568 93,169

71,320,176 93,169

35.4 GAINS OR LOSSES ARISING FROM FINANCIAL INSTRUMENTS
2018
RM RM
Financial Assets

Fair Value Through Profit or Loss
Net gains recognised in profit or loss by:
- mandatorily required by accounting standard 1,943,509 1,159,252
Amortised Cost
Net gains recognised in profit or loss 701,722 60,574

35.4 GAINS OR LOSSES ARISING FROM FINANCIAL INSTRUMENTS (CONT’D)
2017
RM RM
Financial Assets

Loans and Receivables Financial Assets
Net gains recognised in profit or loss 493,229 21,794
Fair Value through Profit or Loss

Net gains recognised in profit or loss 480,213 -

35.5 FAIR VALUE INFORMATION
The fair value of the financial asset of the Group and of the Company which is maturing within the next 12
months approximated its carrying amount due to the relatively short-term maturity of the financial instrument
or repayable on demand terms. The following table sets out the fair value profile of financial instrument that is
carried at fair value at the end of the reporting period:-
Fair Value Of Financial Instruments

Carried At Fair Value Total Carrying
Level 1 Level 2 Level 3 Fair Value Amount
RM RM RM RM RM
The Group

2018

Financial Asset
Short-term investments 65,260,844 - - 65,260,844 65,260,844

2017

Financial Asset

The Company

2018

Financial Asset

The fair value at short-term investments is determined at their observable input, either directly or indirectly.

36. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR
On 27 March 2018, the Company increased issued and paid-up share capital from RM20,000,000 to RM63,750,000 by
the allotment of 125,000,000 new ordinary shares at an issue price of RM0.35 per ordinary share pursuant to the listing
of the Company on the ACE Market of Bursa Malaysia Securities Berhad.
37. SIGNIFICANT EVENTS OCCURRING AFTER THE REPORTING PERIOD
a) On 27 March 2019, the subsidiary of the Group, GDBSB had accepted the Letter of Acceptance from a
customer as the Principal Works Contractor for main builder’s works - architectural, civil and structural works
and mechanical and electrical works for the proposed mixed development of Phase 1 consisting of 2 service
apartments (residential) - 18-storey (Block 3A & 3B - 648 units) on a 8-storey podium with 7-storey car park
(1-storey car park for park and ride) and 1-storey related facility on top of podium on Jalan Lapangan Terbang
Subang, Petaling Jaya for a total contract value of RM135 million. The contract shall commence on 16 April 2019
for duration of 30 months and is scheduled to be completed by 15 October 2021.
b) On 17 April 2019, the Company and GDBSB (collectively referred to as “Purchasers” or the “Group”) had entered
into a binding term sheet with three individuals (“Sellers”) in relation to the proposed acquisition of 70% equity
interest in Eco Geotechnics Sdn. Bhd. (“EGSB”) on a pro rata basis from the Sellers for a cash consideration to
be determined upon conducting the legal and financial due diligence review on EGSB and based on the net
assets of EGSB within 60 days from the signing of the term sheet or such extended period as mutually agreed
between the Purchasers and the Sellers (“Parties”)(“Proposed Acquisition”). The Proposed Acquisition is subject
to consideration sum to be mutually agreeable or accepted by the Parties.
38. COMPARATIVE FIGURES
The following figures have been reclassified to conform with the presentation of the current financial year:-
The Company
As Previously
Reported As Restated
RM RM
Statements of Cash Flows (Extract):-

Net cash from/(for) operating activities 14,896,247 (3,366,633)
Net cash (for)/from investing activities (3,241,086) 15,021,794


Analysis of Shareholdings
as at 29 March 2019

Class of equity securities : Ordinary Shares (“Shares”)
Total number of issued Shares : 625,000,000 Shares
Voting rights by show of hand : One vote for every member
Voting rights by poll : One vote for every Share held
DISTRIBUTION SCHEDULE OF SHAREHOLDERS
Size of Holdings No. of Holders % No. of Shares %
Less than 100 Shares 4 0.23 194 0.00

100 - 1,000 Shares 115 6.66 64,406 0.01
1,001 - 10,000 Shares 697 40.33 4,470,800 0.72
10,001 - 100,000 Shares 676 39.12 26,043,400 4.16
100,001 - less than 5% of issued Shares 234 13.54 131,528,300 21.05
5% and above of issued Shares 2 0.12 462,892,900 74.06
Total 1,728 100.00 625,000,000 100.00

DIRECTORS’ SHAREHOLDINGS
(As per the Register of Directors’ Shareholdings)
Direct Interest Indirect Interest

Name of Directors No. of Shares % No. of Shares %
Cheah Ham Cheia - - 323,750,000 (1) 51.80

Alexander Lo Tzone Leong 139,142,900 22.26 - -
Cheah Jun Kai 2,020,200 0.32 360,000 (2) 0.06
Tan Sri Dato’ Ir. Hj. Zaini Bin Omar 400,000 0.06 - -
Datuk Chia Lui Meng 300,000 0.05 - -
Kow Poh Gek 300,000 0.05 150,000 (3) 0.02

Notes:
(1) Deemed interested by virtue of his shareholdings in CHC Holdings Sdn. Bhd.
(2) Deemed interested by virtue of his spouse’s shareholdings in the Company.
(3) Deemed interested by virtue of her son’s shareholdings in the Company.
SUBSTANTIAL SHAREHOLDERS’ SHAREHOLDINGS

(As per the Register of Substantial Shareholders)
Direct Interest Indirect Interest

Name of Substantial Shareholders No. of Shares % No. of Shares %
CHC Holdings Sdn. Bhd. 323,750,000 51.80 - -

Alexander Lo Tzone Leong 139,142,900 22.26 - -


Analysis of Shareholdings
as at 29 March 2019 (cont’d)
30 LARGEST SECURITIES ACCOUNT HOLDERS

(without aggregating the securities from different securities accounts belonging to the same registered holder)
No Name No. of Shares held %
1 CHC Holdings Sdn. Bhd. 323,750,000 51.80

2 Alexander Lo Tzone Leong 139,142,900 22.26
3 Citigroup Nominees (Tempatan) Sdn. Bhd.
- Great Eastern Life Assurance (Malaysia) Berhad (LBF) 15,744,800 2.52
4 RHB Nominees (Tempatan) Sdn. Bhd.
- OSK Capital Sdn. Bhd. for Yayasan Islam Terengganu 15,400,000 2.46
5 Khoo Yok Kee 5,437,800 0.87
6 AI Capital Sdn. Bhd. 5,000,000 0.80
- Great Eastern Life Assurance (Malaysia) Berhad (DG) 2,451,600 0.39
8 Cheong Yee Fai 2,200,000 0.35
9 Cheah Jun Kai 2,020,200 0.32
10 Ang Loo Leong 1,950,000 0.31
- Great Eastern Takaful Berhad (Mekar) 1,829,000 0.29
12 DB (Malaysia) Nominee (Tempatan) Sendirian Berhad
- Deutsche Trustees Malaysia Berhad for Hong Leong Dana Makmur 1,320,000 0.21
13 Maybank Nominees (Tempatan) Sdn. Bhd.
- Pledged Securities Account for Yoong Kah Yin 1,310,000 0.21
14 Anchor-Link Sdn. Bhd. 1,250,000 0.20
15 Joseph Ling Yeo Kong 1,250,000 0.20
16 Sai Mee Hing 1,213,500 0.19
17 Looi Bian Cheong 1,162,100 0.19
18 Sow Tiap 1,100,000 0.18
19 CIMB Group Nominees (Tempatan) Sdn. Bhd.
- CIMB Islamic Trustee Berhad for PMB Shariah TNB Employees Fund 1,027,300 0.16
20 Kenanga Nominees (Tempatan) Sdn. Bhd.
- Ng Chin Hor 1,020,100 0.16
21 Koon Poh Weng 1,000,000 0.16
22 Loke Kien Tuck 1,000,000 0.16
23 Sin Kheng Lee 1,000,000 0.16
24 Sit Kam Hock 1,000,000 0.16
25 Tee Chai Seng 1,000,000 0.16
26 Teoh Kim Hock 1,000,000 0.16
27 Wong Hon Kong 1,000,000 0.16
28 Citigroup Nominees (Asing) Sdn. Bhd.
- CB Spore GW for Lionglobal Malaysia Fund 985,000 0.16
29 Maybank Nominees (Tempatan) Sdn. Bhd.
- Maybank Private Wealth Management for Tan Kuan Hoe (PW-M00397) (410070) 982,000 0.16
30 HLIB Nominees (Tempatan) Sdn. Bhd.
- Pledged Securities Account for See Sek Hock 972,100 0.16


Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the Sixth Annual General Meeting (“AGM” or “Meeting”) of GDB HOLDINGS BERHAD
(“GDB” or “the Company”) will be held at Greens I, Golf Wing, Tropicana Golf & Country Resort, Jalan Kelab Tropicana, Off
Jalan Tropicana Utama, 47410 Petaling Jaya, Selangor Darul Ehsan on Thursday, 13 June 2019 at 10.30 a.m. to transact the
following businesses:-
AGENDA
AS ORDINARY BUSINESS :
1. To receive the Audited Financial Statements for the financial year ended PLEASE REFER TO NOTE (a)
31 December 2018 together with the reports of the Directors and Auditors thereon.
2. To approve the payment of Directors’ fees and benefits of up to RM210,000 for the ORDINARY RESOLUTION 1
financial year ending 31 December 2019.
3. To re-elect the following Directors who retire by rotation in accordance with Clause
85 of the Company’s Constitution:-
i. Mr. Alexander Lo Tzone Leong ORDINARY RESOLUTION 2

ii. Mr. Cheah Jun Kai ORDINARY RESOLUTION 3
4. To re-appoint Messrs. Crowe Malaysia PLT as Auditors of the Company until the ORDINARY RESOLUTION 4
conclusion of the next AGM and to authorise the Directors to fix their remuneration.
AS SPECIAL BUSINESS :
To consider and if thought fit, to pass with or without any modifications, the following
resolution:-
5. GENERAL AUTHORITY FOR THE DIRECTORS TO ALLOT AND ISSUE SHARES ORDINARY RESOLUTION 5
PURSUANT TO SECTIONS 75 AND 76 OF THE COMPANIES ACT 2016

“THAT pursuant to Sections 75 and 76 of the Companies Act 2016, and subject
to the approvals of the relevant governmental and/or regulatory authorities, the
Directors be and are hereby empowered to allot and issue shares in the Company
from time to time at such price, upon such terms and conditions, for such purposes
and to such person or persons whomsoever as the Directors may deem fit provided
that the aggregate number of shares issued pursuant to this resolution does not
exceed ten per centum (10%) of the total number of issued shares of the Company
for the time being AND THAT the Directors be and are also empowered to obtain
approval from the Bursa Malaysia Securities Berhad for the listing of and quotation
for the additional shares so issued AND THAT such authority shall continue in force
until the conclusion of the next AGM of the Company.”

(cont’d)
6. PROPOSED AMENDMENTS TO THE CONSTITUTION OF THE COMPANY SPECIAL RESOLUTION
“THAT approval be and is hereby given to alter or amend the whole of the existing
Constitution of the Company by the replacement thereof with a new Constitution
of the Company as set out in “Appendix A” with immediate effect AND THAT
the Directors and/or the Secretary of the Company be authorised to assent to
any conditions, modifications and/or amendments as may be required by any
relevant authorities, and to do all acts and things and take all such steps as may be
considered necessary to give full effect to the foregoing.”
7. To transact any other business of which due notice shall have been given in
accordance with the Companies Act 2016.

By order of the Board
TEA SOR HUA (MACS 01324)

Company Secretary
Petaling Jaya, Selangor Darul Ehsan

30 April 2019
Notes:
a) The Agenda No. 1 is meant for discussion only as the provision of Section 340(1)(a) of the Companies Act 2016 does
not require a formal approval from shareholders for the Audited Financial Statements. Hence, Agenda No. 1 is not put
forward for voting.
b) A shareholder who is entitled to attend and vote at the Meeting shall be entitled to appoint up to two (2) proxies
to attend and vote at the Meeting in his stead. Where a shareholder appoints two (2) proxies, he shall specify the
proportion of his shareholdings to be represented by each proxy.
c) For the purpose of determining a member who shall be entitled to attend the Meeting, the Company will be
requesting Bursa Malaysia Depository Sdn. Bhd. in accordance with Clause 62(b) of the Company’s Constitution to
issue a General Meeting Record of Depositors as at 4 June 2019. Only members whose names appear in the General
Meeting Record of Depositors as at 4 June 2019 shall be regarded as members and entitled to attend, speak and
vote at the Sixth AGM.
d) A proxy may but need not be a member of the Company. A proxy appointed to attend and vote at the Meeting shall
have the same rights as the member to speak at the Meeting.
e) The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised
in writing or, if the appointor is a corporation, either under the seal or by at least two (2) authorised officers, one of
whom shall be director (or in the case of a sole director, by that director in the presence of a witness who attests the
signature) or under the hand of an officer or attorney duly authorised.

(cont’d)
f) Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central
Depositories) Act 1991, it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary
shares of the Company standing to the credit of the said securities account.
g) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for
multiple beneficial owners in one securities account (“omnibus account”), there is no limit to the number of proxies
which the exempt authorised nominee may appoint in respect of each omnibus account it holds. The appointment of
multiple proxies shall not be valid unless the proportion of its shareholdings represented by each proxy is specified.
h) To be valid, the instrument appointing a proxy must be deposited at the Share Registrar of the Company situated at
Level 6, Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan, not
less than forty-eight (48) hours before the time for holding the Meeting or adjourned meeting at which the person
named in the instrument proposes to vote.
i) All the resolutions set out in this Notice of Meeting will be put to vote by poll.
EXPLANATORY NOTES TO SPECIAL BUSINESS
1. Item 5 of the Agenda – General Authority for the Directors to allot and issue Shares pursuant to Sections 75 and
76 of the Companies Act 2016
The Ordinary Resolution 5 proposed under item 5 of the Agenda is a new general mandate for issuance and allotment
of shares by the Company pursuant to Sections 75 and 76 of Companies Act 2016. This Ordinary Resolution, if passed,
is to empower the Directors to issue shares in the Company up to an amount not exceeding in total ten per centum
(10%) of the total number of issued share of the Company for such purposes as the Directors consider would be in the
interest of the Company. This would avoid any delay and cost involved in convening a general meeting to approve
the issuance and allotment of such shares. This authority will, unless revoked or varied by the Company at a general
meeting, expire at the conclusion of the next AGM or the expiration of the period within which the next AGM is
required by law to be held, whichever is the earlier.
This general mandate will provide flexibility to the Company for allotment of shares for any possible fund raising
activities, including but not limited to further placing of shares, for the purpose of funding future investment project(s),
working capital and/or acquisition(s).
As at the date of this Notice, no new shares in the Company were issued pursuant to the mandate granted to the
Directors at the last AGM held on 7 June 2018 which will lapse at the conclusion of the Sixth AGM.
2. Item 6 of the Agenda - Proposed Amendments to the Constitution of the Company
The Special Resolution proposed under item 6 in relation to the proposed amendments to the existing Constitution of
the Company are made mainly for the following purposes:-
(a) To ensure compliance with the ACE Market Listing Requirements of Bursa Securities; and
(b) To provide clarity and consistency with the amendments that arise from the Companies Act 2016 and other
relevant regulatory provisions.

The shareholders’ approval is sought for the Company to alter or amend the whole of the existing Constitution by
the replacement with the proposed New Constitution as per “Appendix A” in accordance with Section 36(1) of the
Companies Act 2016. The “Appendix A” on the proposed New Constitution of the Company, which is circulated
together with the Notice of Sixth AGM dated 30 April 2019, shall take effect once the special resolution has been
passed by a majority of not less than seventy-five per centum (75%) of such members who are entitled to vote and do
vote in person or by proxy at the Sixth AGM.

This page is intentionally left blank.
Proxy Form
GDB HOLDINGS BERHAD

(COMPANY NO.: 1036466-U)
I/We________________________________________________ NRIC/ Company No.* ______________________________________

(full name in capital letters)
of ____________________________________________________________________________________________________________
(full address)
being (a) member(s) of GDB HOLDINGS BERHAD (1036466-U) (“the Company”) hereby appoint __________________________
________________________________________________________ NRIC No. ____________________________________________

of ____________________________________________________________________________________________________________
(full address)
or failing him/her* ________________________________________ NRIC No. ____________________________________________

of ____________________________________________________________________________________________________________
(full address)
or failing him/her*, the Chairman of the Meeting as my/our* proxy to vote for me/us* on my/our* behalf at the Sixth Annual
General Meeting (“AGM” or “Meeting”) of the Company to be held at Greens I, Golf Wing, Tropicana Golf & Country Resort,
Jalan Kelab Tropicana, Off Jalan Tropicana Utama, 47410 Petaling Jaya, Selangor Darul Ehsan on Thursday, 13 June 2019 at
10.30 a.m. and at any adjournment thereof.
Please indicate with an “X” in the appropriate spaces how you wish your votes to be cast. If no specific direction as to vote is
given, the Proxy will vote or abstain from voting at his/her discretion.
No. Ordinary Resolutions For Against

1. To approve the payment of Directors’ fees and benefits of up to RM210,000 for the
financial year ending 31 December 2019.
2. To re-elect Mr. Alexander Lo Tzone Leong as Director who retires by rotation in
accordance with Clause 85 of the Company’s Constitution.
3. To re-elect Mr. Cheah Jun Kai as Director who retires by rotation in accordance with
Clause 85 of the Company’s Constitution.
4. To re-appoint Messrs. Crowe Malaysia PLT as Auditors of the Company until the
conclusion of the next AGM and to authorise the Directors to fix their remuneration.
5. To approve the general authority for the Directors to allot and issue shares pursuant
to Sections 75 and 76 of the Companies Act 2016.
No. Special Resolution For Against

1. To approve the Proposed Amendments to the Constitution of the Company.
* delete whichever not applicable CDS Account No. No. of Shares Held
Dated this ______________ day of _________________ 2019
Percentage of shareholdings
to be represented by the proxies:
No. of shares %
Proxy 1
Proxy 2
_________________________________________________
Signature of Member(s) / Common Seal TOTAL 100
Fold this flap for sealing
Notes:
a) The Agenda No. 1 is meant for discussion only as the provision of Section 340(1)(a) of the Companies Act 2016 does not require a formal
approval from shareholders for the Audited Financial Statements. Hence, Agenda No. 1 is not put forward for voting.
b) A shareholder who is entitled to attend and vote at the Meeting shall be entitled to appoint up to two (2) proxies to attend and vote
at the Meeting in his stead. Where a shareholder appoints two (2) proxies, he shall specify the proportion of his shareholdings to be
represented by each proxy.
c) For the purpose of determining a member who shall be entitled to attend the Meeting, the Company will be requesting Bursa Malaysia
Depository Sdn. Bhd. in accordance with Clause 62(b) of the Company’s Constitution to issue a General Meeting Record of Depositors as
at 4 June 2019. Only members whose names appear in the General Meeting Record of Depositors as at 4 June 2019 shall be regarded
as members and entitled to attend, speak and vote at the Sixth AGM.
d) A proxy may but need not be a member of the Company. A proxy appointed to attend and vote at the Meeting shall have the same
rights as the member to speak at the Meeting.
e) The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing or, if
the appointor is a corporation, either under the seal or by at least two (2) authorised officers, one of whom shall be director (or in the
case of a sole director, by that director in the presence of a witness who attests the signature) or under the hand of an officer or attorney
duly authorised.
f) Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991,
it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the
credit of the said securities account.
g) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial
owners in one securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee
may appoint in respect of each omnibus account it holds. The appointment of multiple proxies shall not be valid unless the proportion
of its shareholdings represented by each proxy is specified.
h) To be valid, the instrument appointing a proxy must be deposited at the Share Registrar of the Company situated at Level 6, Symphony
House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan, not less than forty-eight (48) hours before
the time for holding the Meeting or adjourned meeting at which the person named in the instrument proposes to vote.
i) All the resolutions set out in this Notice of Meeting will be put to vote by poll.
Then fold here
AFFIX
STAMP
The Share Registrar:

GDB HOLDINGS BERHAD (Company No.: 1036466-U)
c/o Boardroom Share Registrars Sdn Bhd (Company No.: 378993-D)
Level 6, Symphony House
Pusat Dagangan Dana 1
Jalan PJU 1A/46
47301 Petaling Jaya
Selangor Darul Ehsan
1st fold here

GDB HOLDINGS BERHAD (COMPANY NO.: 1036466-U)
No. 1-45, 1-43 and 2-45, Jalan Puteri 4/8, Bandar Puteri
47100 Puchong, Selangor Darul Ehsan, Malaysia
Tel : +603 8066 6960 Email : [email protected]
www.gdbhb.com.my

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ANNUAL

GDB HOLDINGS BERHAD

GDB Holdings Berhad (“GDB” or “Group”) is listed on the

Established since 2013, GDB is involved in the implementation

GDB is accredited with multiple certifications such as ISO

GDB is registered with the Construction Industry Development

Vision & Mission 2

ANNUAL REPO RT 2018 1

To be a REPUTABLE construction firm • To employ, cultivate, and support our knowledgeable

• To safeguard Mother Nature and provide sustainability

2 GDB HOLDINGS BERHAD (1036466-U)

BOARD OF DIRECTORS PRINCIPAL PLACE OF BUSINESS

COMPANY SECRETARY STOCK EXCHANGE LISTING

GDB HOLDINGS BERHAD

PROVISION OF CONSTRUCTION SERVICES

4 GDB HOLDINGS BERHAD (1036466-U)

In RM’ 000 2018 2017 2016 2015 2014

Revenue 274,559 296,812 276,906 169,539 86,628

Profit before tax 36,949 30,502 21,424 9,698 3,881

Profit after tax 27,890 22,518 16,092 7,177 3,277

Total assets 212,751 152,206 110,433 80,239 46,727

Total equity attributable to owners of 104,121 39,917 27,199 12,207 5,030

Earnings per share (Sen)(1) 4.68 4.50 6.42 6.04 3.01

Revenue 81,083 68,384 55,748 69,344

Profit before tax 9,037 11,826 8,902 7,184

Earnings per share Sen 1.30 1.61 1.15 0.91

Dividend per share Sen - 1.00 - 1.00

Total assets 177,166 187,174 186,784 212,751

Total shareholders' funds 89,085 91,959 98,719 104,121

Net assets per share Sen 14.25 14.71 15.80 16.66

Market capitalisation (RM’ 000) 184,375 203,125 218,750 143,750

High RM 0.335 0.340 0.450 0.365

Low RM 0.290 0.275 0.315 0.220

Close RM 0.295 0.325 0.350 0.230

ANNUAL REPO RT 2018 5

REVENUE NET PROFIT

T O TA L A S S E T S NET ASSETS PER SHARE

6 GDB HOLDINGS BERHAD (1036466-U)

He has no family relationship with any Director and/or any

ALEXANDER LO TZONE LEONG CHEAH JUN KAI

He has no family relationship with any Director and/major

8 GDB HOLDINGS BERHAD (1036466-U)

DATUK CHIA LUI MENG KOW POH GEK

He has no family relationship with any Director and/or any major

MDM. TOH FONG ENG MR. YAP WEI TONG

MDM. LIM LEE LING MR. WONG CHIN TEE

10 GDB HOLDINGS BERHAD (1036466-U)

DEAR ESTEEMED SHAREHOLDERS,

2018 ECONOMIC REVIEW

Domestically, the Malaysian economy expanded at a more

ANNUAL REPO RT 2018 11

DEAR VALUED SHAREHOLDERS,

Therefore, it is my privilege to update you on the performance of GDB Holdings Berhad

BUSINESS OVERVIEW We have also obtained the Quality Assessment System in

12 GDB HOLDINGS BERHAD (1036466-U)

• The SHASSIC certification evaluates the safety and

• The BuildQAS certification evaluates the quality of

• The QLASSIC certification is another measure that