Investor Relations

1.

The board comprise of 6 directors with only 2 independent directors (INEDs). It is proposed that the board should have more INEDs which have expertise outside the Boustead group to bring new/fresh ideas and expertise to the Group.

The Company complies with Paragraph 15.02 of the Main Market Listing Requirements which stipulates that at least 2 Directors or one third of the Board of Directors of Company must be Independent Director. The Company recognizes the benefits of bringing in more Independent Directors, which could provide new perspective to the Company. The Company will continue to source for suitable candidates for appointment as Independent Director and will work on achieving the recommendation by the Malaysian Code on Corporate Governance of having at least half of the board comprises of independent directors.

1.

The total borrowings of BPB Group amounted to RM1.014 billion as at 31 December 2021.

(1) Has there been any repayment of borrowings from the proceeds of the recent sale and lease exercises?

(2) As most of the borrowings are on floating rates, what are the measure taken by management to mitigate the expected increase in finance cost due to interest rate hikes in the next 1-2 years?

The proceeds of the recent sale and lease exercise were used to pare down our borrowings.

Management is constantly monitoring borrowings position and ensure rate is competitive and will reduce/pay off the loan where possible.

1.

What is the key assumption used in the calculation of the CGU? Who is the independent valuer used in the calculation?

The key assumptions are yield and CPO price. The appointed valuer is independent and professionally qualified. The auditors have assessed the competency, capabilities and the objectivity of the valuer accordingly.

1.

The impairment of RM176 million due to poor performance of the recently acquired Sabah estates was one of the main reasons for the loss in FY 2019.

What is the reason for such impairment and has the Group overvalued the said assets?

The RM176 million impairment was largely in respect of our Boustead Pertama and Tawai estates in Sabah.

This impairment is in line with the requirements of the accounting standard - MFRS 136 Impairment of Assets.

During the Financial year, the Group has identified indications of impairment in some of our underperforming cash generating units.

Based on the assessment, the recoverable amounts of these underperforming units were lower than the carrying amounts as at 31 December 2019.

Therefore, an impairment of RM176m was recognized to bring the carrying values to the recoverable amounts.

Our auditors, Ernst & Young, have agreed with the assessment to provide for impairment losses of RM176 million for the financial year ended 2019.