growing a legacy of strength

GROWING A LEGACY OF STRENGTH

GOLDEN PHAROS BERHAD(198601003051) (152205-W)

ANNUAL REPORT 2020 LAPORAN TAHUNAN

2020 was an exceptional year when the world experienced a crisis like

no other. We have achieved commendable performance and undergone

challenging periods in the past, yet never before have we faced a situation

that undermined global financial stability, ground economies worldwide

to a standstill and humanity suffered through the tragic loss of life,

retrenchments and loss of income.

As a Terengganu state-owned Government-Linked Company, Golden Pharos

Berhad (GPB or the Group) we had to act swiftly and take quick action to help

our employees and the communities where we operate through enforcing

strict health and safety protocols and income security. Governance and

accountability were at the forefront throughout the year, and we had to

urgently address risk issues in business continuity and operational and

financial performance.

In response to the crisis, we shifted work priorities to focus on the most

critical aspects, streamlined procedures to speed up decision making, and

continued active engagement with all our employees and multi-stakeholder

groups. While the Group’s financial performance was negatively impacted,

we remained resilient and steadfast in mitigating the risks by establishing

several initiatives to ensure the Group’s business and operational

sustainability.

With continuous collaboration and support of our people and valued

stakeholders, we can move forward with cautious optimism to overcome

business disruptions. Armed with determination, grit and genuine concern

to revitalise and stabilise GPB, we aspire to generate shareholder value

continuously in Growing a Legacy of Strength.

Tuesday, 29 June 2021

10.30 a.m.

GROWING A LEGACY OFSTRENGTH

Annual General MeetingGOLDEN PHAROS BERHAD

Gamelan 3, Primula Beach Hotel, Jalan Persinggahan,

20400 Kuala Terengganu, Terengganu Darul Iman.

34th

VISIONTo become a premier natural resources organisation

MISSION• To improve our results

• To meet our customer expectations

• To maximise return to our shareholders

• To promote green and eco-friendly environment

• To provide workforce with rewarding employment

• To use our position as an integrated timber producer

CORE VALUES

GEMILANG

OPTI

MIS

LESTARI

DEDIKASI

EFEKTIF

NEKAD

Woodchips processing at the Pesaka factory supervised thoroughly to ensure good product quality and condition before being delivered to customers.

Woodchips are one of the main contributors of the Group’s annual revenue.

GP Glass supplied its high quality laminated glass for building constructions throughout Malaysia.

What’s Inside

The logs are assembled and checked at the logyard before they are processed at the factory.

OVERVIEW

1 Vision, Mission and Core Values

4 At a Glance

5 Key Highlights

6 Who We Are

8 Milestones & Achievements

10 Corporate Information

11 Group Structure

OUR STRATEGIC PERFORMANCE

12 Chairman’s Message

16 Management Discussion and Analysis

30 Financial Highlights

31 Financial Highlights - Segmental Information

32 Financial Highlights - Sales by Region

33 Investor Relations

35 Financial Calendar

OUR ACHIEVEMENTS

48 Corporate Highlights

53 Media Highlights

55 Environmental Statement

SUSTAINABILITY

58 Sustainability Report

Chemerong watefalls is a tourist attraction, located at Pasir Raja, Dungun. It is a favourite destination for hikers to Gunung Berembun.

LEADERSHIP

35 Board of Directors

36 Chairman’s Profile

37 Board of Directors’ Profile

40 Chief Executive Officer’s Profile

41 Group Senior Management

42 Group Senior Management’s Profile

ANNUAL REPORT 2020 GOLDEN PHAROS BERHAD2

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GOVERNANCE

150 Policies

154 Corporate Governance Overview Statement

177 Statement on Risk Management and Internal Control

180 Audit Committee Report

PROPERTIES

186 List of Properties

FINANCIAL REVIEW 188 Financial Statements

ADDITIONAL INFORMATION

296 Analysis of Shareholdings

297 List of Top 30 Shareholders

299 Notice of Annual General Meeting

302 Statement Accompanying Notice of Annual General Meeting

• Proxy Form

Exterior glass facade at Southern Airline Corporation, Vietnam supplied by Golden Pharos Glass Sdn Bhd.

ANNUAL REPORT 2020GOLDEN PHAROS BERHAD 3

GOLDEN PHAROS BERHADWAS INCORPORATED IN

LISTED ON THE MAIN MARKET OF

CERTIFIED FORGOLDEN PHAROS GLASS SDN BHD

HARVESTING & SAWMILLING MANUFACTURING OTHERS

GOLDEN PHAROS BERHAD WAS FINALIST IN

AMOUNT OWING TO TERENGGANU INC VIA THE ISSUANCE OF 12 MILLION REDEEMABLE PREFERENCE SHARES

2019 ASIA SUSTAINABILITY AWARD

SINCE 1993

1986

ISO 14001:2004

65.1% 34.7% 0.2%

SECURITIES BERHAD

SETTLEMENT OF

RM12 MILLION

BURSA MALAYSIA

SEGMENT REVENUE FOR OPERATING UNIT

At a Glance

GPB AWARDED COMPANY OF THEYEAR (LOGGING & SAWMILL)

BY CSR MALAYSIA.


Key Highlights

REVENUE

(FY2019: RM57.47 million)RM47.20million

(FY2019: (6.79 sen))

LOSS PER SHARE

(4.93sen)

RM68.40millionSHAREHOLDERS’ EQUITY

(FY2019: RM62.90 million)

(RM6.37million)LOSS BEFORE TAX

(FY2019: (RM8.98 million))


Morning view at Lansir Waterfall in the Group’s concession area.

Who We Are


Golden Pharos Berhad (GPB) has been listed on the Main Board of

Bursa Securities Malaysia Berhad (Bursa Securities) since 1993. GPB is also a Terengganu state Government

Link Corporation (GLC) by virtue of 70.97% shareholding via the State’s investment arms, Terengganu

Incorporated Sdn Bhd and Lembaga Tabung Amanah Warisan Negeri Terengganu which hold 62.65% and

8.32% respectively.

Its principal activities cover forest concession management, harvesting and distribution, sawmilling

and value-added processing of wood-based products, as well as manufacturing and sales of architectural

panel glass.

GPB was incorporated.

GPB was listed on the Main Board of the Kuala Lumpur Stock Exchange.

GPB became a fully integrated timber corporation.

1993

1986

1997onwards

Converted into a public company.Production of tempered glass started.

1992

GPB acquired Permint Timber Corporation Sdn Bhd.

1996


l GPB took over the manufacturing of timber doors from Golden Pharos Wood Industries Sdn Bhd.

l Golden Pharos Glass Sdn Bhd (GP Glass) certified with ISO 14001:2004 International Standards.

l GP Glass awarded ISO 9001-2006 certification.

l Pesama Timber Corporation Sdn Bhd (Pesama) obtained FSC® endorsed certification for Cherul Forest Concession.

l GPB was ranked 1st place in the consumer product industry sector and 2nd place overall under the Corporate Governance Survey Report for the small capital public listed companies, conducted by the Minority Shareholder Watchdog Group (MSWG) in collaboration with the Nottingham University Business School.

l GPB entered into a Memorandum of Understanding with Malaysian Timber Industry Board (MITB) and Pengusaha Kayu Kayan & Perabot Bumiputera Malaysia (PEKA).

l GPB entered into a Memorandum of Understanding with Dongwha Malaysia Sdn Bhd.

l Permint Plywood Sdn Bhd (PPSB) entered into a Joint Venture Agreement with Cymao Plywood Sdn Bhd (CPSB) to revive PPSB’s facility by establishing a JV company, GP Dynamic Venture Sdn Bhd (GPDV).

lGPB was ranked 1st place in the consumer product industry sector and 1st place overall under the Corporate Governance Survey Report for the small capital public listed companies, conducted by the MSWG in collaboration with the Nottingham University Business School.

l March - GPB became a fully integrated timber corporation with the acquisition of Permint Timber Corporation Sdn Bhd.

1980

2006

2014

2015

20072012

1992 1996

Milestones and Achievements

lMay - Tempered glass plant was set up at Telok Panglima Garang Industrial Site, producing 20,000 square metres of tempered glass per month.

lNovember - The second phase of glass production was implemented to supply architectural glass and shower screens for domestic buildings and the construction industry.


l PPSB entered into a Shareholders’ Agreement with CPSB.

l PPSB subscribed to RM0.96 million (60%) of GPDV’s paid up capital. GPDV’s intended activities were to manufacture and sell veneer, plywood and decorative plywood.

l In June 2016, PPSB commenced the production of woodchips to maximise the value of the Group’s wood waste.

l PPSB re-started operations after closing down its business in 2005.

l PPSB was certified with PEFC for veneer production.

l PPSB signed an agreement with BioBenua Teknologi to process agar wood oil.

l Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn Bhd initiated commercial Forest Plantation for long-term timber supply.

l PPSB was awarded the PEFC 'Chain of Custody of Forest Based Products' certification at Majlis SIRIM Industri 2018 'Best Partner For Innovation'.

l GP Glass was awarded Company of The Year (Small Medium Enterprise) at Terengganu Inc Group Excellence Award 2017.

l Pesama and Pesaka Trengganu Berhad were awarded the Performance Award for Sawmill Category (Air Pollution Control) by the Department of Environment Terengganu.

l First dividend payment of 1.27 sen per share was declared and paid after 11 years.

l GP Glass was awarded Brand Leadership Award at the BrandLaureate BestBrands Awards 2018/2019.

l The then Minister of Human Resource, YB M Kulasegaran appointed Chief Executive Officer, Dato’ Nadza Abdul as Director of SOCSO.

l CEO Dato’ Nadza Abdul received the Malaysia Business Awards (MEBA)-Masterclass Bumiputera CEO of The Year Award.

l GPB paid RM3.17 million as partial repayment of advances to Terengganu Incorporated Sdn Bhd (Terengganu Inc) after 10 years of debt.

2017

2019

20182016

Milestones and Achievements (Continued)

l April 2020 - GPB was finalist in 2019 Asia Sustainability Reporting Award in Singapore.

l August 2020 - GPB settled RM12 million of Terengganu Inc debt via issuance of redeemable preference shares.

l October 2020 - GPB awarded Company of the Year (Logging & Sawmill) by CSR Malaysia.

2020


DATO’ AHMAD NADZARUDIN BIN ABDUL RAZAK Ernst & Young PLTLevel 23A, Menara Milenium

Jalan Damanlela, Pusat Bandar Damansara50490 Kuala LumpurTel : +603 2087 7000Fax : +603 2095 533

Maybank Islamic BerhadBank Islam Malaysia Berhad

Main MarketBursa Malaysia Securities Berhad

SURAYA BINTI MOHD HAIRON (LS 0007314)(SSM PC No. 202008000100)

66-2, Taman Seri IntanJalan Sultan Omar

20300 Kuala Terengganu Terengganu Darul Iman

Tel : +609 630 1330Fax : +609 631 0617

YBM DATO’ HAJI TENGKU HASSAN BIN TENGKU OMAR Non-Independent Non-Executive Chairman

DATO’ BENTARA DALAMDATO’ HAJI A. RAHMAN BIN YAHYA

Non-Independent Non-Executive Director HAJI BURHANUDDIN HILMI BIN MOHAMED @ HARUN

Non-Independent Non-Executive Director

MUHAMMAD RAMIZU BIN MUSTAFFA Non-Independent Non-Executive Director

ASSOCIATE PROFESSOR DR MOHD ZAKI BIN HAMZAH

Independent Non-Executive Director

MOHD BADARUDDIN BIN ISMAILIndependent Non-Executive Director

HAJI SAIFFUDDIN BIN OTHMAN

Independent Non-Executive Director

Corporate Information

BOARD OF DIRECTORS

CHIEF EXECUTIVE OFFICER AUDITORS

PRINCIPAL BANKERS

STOCK EXCHANGE LISTING

COMPANY SECRETARY

REGISTERED OFFICE


Group Structure

GOLDEN PHAROS BERHAD (198601003051) (152205-W)

Permint PlywoodSdn Bhd

Pesaka Trengganu

Berhad

Kumpulan Pengurusan Kayu Kayan

Trengganu Sdn Bhd

Pesama Timber Corporation

Sdn Bhd

GP Tropical Furniture Sdn Bhd

Kemaman Furniture Industries

Sdn Bhd

Konsortium Perumahan Rakyat

Terengganu Sdn Bhd

Pesama Renors (M) Sdn Bhd

GP DynamicVentureSdn Bhd

Permint Timber Corporation

Sdn Bhd

Golden Pharos Glass

Sdn Bhd

GP Forest PlantationSdn Bhd

Golden Pharos Overseas Sdn Bhd

Golden Pharos BiomassSdn Bhd

Golden Pharos Fiber

Sdn Bhd

19.54%

14.10% 29.49%

35%

25%

30.85%

100%

100%

100% 100% 100% 100% 100%

100% 100% 100% 100%

Wholly owned by Golden Pharos Berhad

Wholly owned by Golden Pharos Berhad via Permint Timber Corporation Sdn Bhd

Subsidiary

Minority interest


YBM DATO’ HAJI TENGKU HASSAN BIN TENGKU OMAR

Chairman

12 ANNUAL REPORT 2020 GOLDEN PHAROS BERHAD

Dear Valued Shareholders,

In 2020, the absolutely unexpected Covid-19 pandemic changed everything. Globally, regionally and locally. Its serious implications have significantly impacted businesses and economies on an unprecedented scale, bringing about rapid and unexpected variables, some of which our existing crisis plans were unprepared for.

On behalf of the Board of Directors of Golden Pharos Berhad (GPB or the Group), it is my privilege

to present you with the Annual Report and audited Group Financial Statements for the Financial

Year ended 31 December 2020 (FY2020). Details of GPB’s financial performance is featured in the

Management Discussion and Analysis on pages 16 to 29 of this report.

GPB started 2020 on course to successfully execute our Business Recovery Plan (BRP), which would

have brought the Group back to profitability. In March 2020, the COVID-19 pandemic hit us and

everybody else, severely disrupting our business recovery progress. The Group had to completely re-

do our original BRP strategies. 2020 then became a year of relentless effort to mitigate the various

negative effects of the pandemic.

Fortunately, our mitigation efforts proved successful. At the start of the pandemic, the Group had

internal estimates that suggested the pandemic and the subsequent economic fallout would result in

losses even larger than the Loss After Tax that we experienced in 2019. In the end, despite the fantastic

negative impacts of the pandemic, we were able to close 2020 with a much better performance,

reducing our Loss After Tax from RM9.2 million in 2019 to only RM6.7 million in 2020.

We are currently still operating in an uncertain environment as the pandemic is still continuing to

rage, with movement restrictions imposed in Q1 and Q2 2021 due to the surge of infection rates

throughout the country. As such, managing the business in this new normal will need a Group-wide

change of mindset. Building GPB’s resiliency against the adverse effects of the global economic

fallout required immediate action on our part to protect the jobs of our employees and their families,

stakeholder businesses and livelihoods of the communities we operate in.

Chairman’s MessageAssalamualaikum Warahmatullahi Wabarakatuh dan Salam Sejahtera

13ANNUAL REPORT 2020GOLDEN PHAROS BERHAD

While the Group adopted many of the lessons learnt from the

BRP, our new five-year Strategic Plan (FY2021-FY2025) represents

a holistic and comprehensive blueprint to address existing

weaknesses and prioritise logical business strategies and plans

for a quick turnaround.

We expect the current challenges to be considerably more

formidable. Therefore, let me assure our stakeholders that the

Board and Management Team will continue to rein in efforts

to optimise timber and glass manufacturing operations by

implementing identified strategic cost rationalisation measures

as outlined in the new Strategic Plan FY2021-FY2025.

Despite the downturn in the Group’s results, we achieved several

inspirational achievements and milestones during the financial

year in review. In April 2020, GPB was nominated a finalist at

the Asia Sustainability Reporting Awards (ASRA) 2019 in two

categories: Asia’s Best Sustainability Report within the Annual

Report and Public Sector. The ASRA is one of the most prestigious

international recognition for sustainability reporting.

This is the 20,243-hectare Cherul Forest Reserve, the concession area under Pesama Timber Corporation Sdn Bhd and sustainably-managed managed by Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn Bhd, two of the timber subsidiaries in the Group.

In October 2020, GPB was awarded the Company of the Year

(Logging & Sawmill) Award by CSR Malaysia. These achievements

have further built our confidence to remain steadfast throughout

this period of uncertainty to shift our focus on rebuilding our

strength and revitalising the Group’s operations to stimulate

growth momentum.

APPRECIATIONS

Let me take this opportunity to express the Board’s gratitude to

you, our valued shareholders, for your support and trust as we

overcome the current difficult period. Your continued confidence

in GPB inspires us to face any and every challenge that lies ahead.

The Board would also like to pay tribute to our employees

who had endured this crisis with resilience. They effectively

performed their duties whether from home or onsite to keep the

company running.

Chairman’s Message (Continued)


Chairman’s Message (Continued)

Let me also express the Board’s confidence in the leadership of our Chief Executive Officer,

Dato’ Nadza Abdul and his management team, who in 2020 put in the comprehensive

mitigation plan that allowed the Group to substantially reduce our losses despite the

negative impacts of Covid-19.

A big ‘Thank You’ to all our partners, associates, authorities and suppliers for their trust,

contributions and cooperation they have extended to the Group throughout the years.

Let me also record my appreciation for my fellow Board members, who lent their total

support and guided me with their wise counsel.

Thank you and wassalam.

YBM DATO’ HAJI TENGKU HASSAN BIN TENGKU OMAR

Chairman

Logs are assembled in a log yard before being distributed to factories.


Management Discussion and Analysis

18 BUSINESS OBJECTIVE

18 BUSINESS STRATEGIES

20 FINANCIAL RESULTS

O REVENUE

O PROFIT/LOSS

O SHAREHOLDERS’ EQUITY AND ASSETS

O OTHER FINANCIAL INDICATORS

23 OVERVIEW OF OPERATING ACTIVITIES

O KNOWN TRENDS IMPACTING GROUP OPERATIONS

O MAIN FACTORS AFFECTING OPERATING ACTIVITIES

24 REVIEW OF BUSINESS SEGMENTS

O LOGGING & SAWMILLING

O MANUFACTURING

26 MANAGING RISKS

27 OUTLOOK & PROSPECTS

O OUTLOOK

O PROSPECTS

29 MOVING AHEAD The over 1,300 year old chengal tree in our concession area in the Pasir Raja Forest Reserve in Hulu Dungun, Terengganu is a state treasure. Reaching a height of 65 meters with a 16.75 metre circumferance the giant tree is listed in the Malaysia Book of Records.


The following Management Discussion and Analysis (MD&A) is intended to convey the

Management’s perspective on the operating performance and financial review of Golden

Pharos Berhad (GPB or the Group) for the year ended 31 December 2020. We recommend

that you read the MD&A in conjunction with the Financial Statements, notes thereto and

other information included elsewhere in the Annual Report.

The MD&A is presented in accordance with the Main Market Listing Requirements

(MMLR) of Bursa Malaysia Securities Berhad (Bursa Securities) and the Malaysian

Financial Reporting Standards (MFRS), and in relation to the disclosure requirements

as per the Malaysian Code on Corporate Governance. Significant details on the Group’s

business operations, performance and strategy, as well as financial review and position,

governance, risks and capital management, are covered in the MD&A. Your attention

is also drawn to sections on our human capital management and sustainability efforts.

This MD&A contains forward-looking statements that are provided to enable investors

to gauge GPB’s business prospects and make informed investment decisions. However,

they involve inherent risks and uncertainties and other factors that are in many cases

beyond our control. The forward-looking statements include, but are not limited to, for

instance, our 2020 business prospects and outlook, as well as our expectations with

regards to the macroeconomic and socio-geographic conditions, and their anticipated

impact on the Group’s business operations.

We have tried, wherever possible, to identify such statements by using words such as

‘anticipate’, ‘expect’, ‘intend’, ‘plan’, ‘believe’, and words of similar substance in connection

with any discussion of future performance. Although GPB believes that the expectations

of its Management as reflected by such forward-looking statements are reasonable based

on current information, no assurance can be given that such expectations will prove to

have been correct. Should one or more of the risks and uncertainties materialise, actual

results may vary materially from those anticipated or projected.


BUSINESS STRATEGIES

In early 2017, GPB introduced the

Business Recovery Plan (BRP) to

mitigate two consecutive years

of losses (FY2015 and FY2016).

The BRP had an immediate impact and

turned the Group around to register

modest profit gains over the next two

years (FY2017 and FY2018).

The subsequent loss incurred in

FY2019 was due to issues primarily

unrelated and outside the scope of the

BRP strategies, which were conditions

imposed on revenue restrictions under

the Malaysian Financial Reporting

Standards (MFRS) that came into effect

that financial year.

As such, the Group extended the

original three-year BRP to a new five-

year Strategic Plan (FY2021-FY2025),

which covers FY2020 and FY2021 with

the aim of addressing issues with

operations, cash flow and management

culture whilst also strengthening

existing businesses, optimising

resources, monetising assets and

capitalising on new opportunities.

BUSINESS OBJECTIVE

For Golden Pharos Berhad (GPB or the Group), 2020 was a year in which our plans and programmes to boost recovery were disrupted by the COVID-19 pandemic, which started as a health crisis and quickly evolved into a global economic crisis at a speed and magnitude we have not seen in our lifetime. The socio-economic effects are still unfolding globally, and there is uncertainty about the true impact of this pandemic despite the roll-out of vaccinations to the public.

From being on course to drive positive growth, GPB instead spent valuable time, effort and resources to mitigate the unprecedented impact of COVID-19 on our business. Among the actions taken were cost-cutting measures in operational and manpower areas which were deemed as non-essential.

The Group was compelled to delay business objectives, financial targets, sustainable initiatives and operational milestones since our core activities in timber harvesting and processing, and glass manufacturing, faced temporary shutdowns and limited operating hours for much of FY2020.

Nevertheless, we remain steadfast in achieving our business goals and corporate aspirations towards being a sustainable company that provides healthy returns to our stakeholders while generating opportunities for the community by abiding by our

Golden Values of:

Management Discussion and Analysis (Continued)

Gemilang (Glorious)

Optimis (Optimistic)

Lestari (Sustainable)

Dedikasi (Dedication)

Efektif (Effective)

Nekad (Determined)

18 ANNUAL REPORT 2020 GOLDEN PHAROS BERHAD

For Golden Pharos Berhad,

2020 was a year in which our plans

and programmes to boost recovery

were disrupted by the COVID-19

pandemic, which started as a health

crisis and quickly evolved into a

global economic crisis at a speed

and magnitude we have not seen

in our lifetime.

DATO’ AHMAD NADZARUDIN BIN ABDUL RAZAKChief Executive Officer


19ANNUAL REPORT 2020GOLDEN PHAROS BERHAD

FINANCIAL RESULTS

The COVID-19 pandemic had a significant bearing on the Group’s financial performance with the almost seven-week shutdown of operations

followed by reduced operational capacity for an additional five-plus weeks. These setbacks have impacted both our revenue, cost and

profitability figures.

Revenue for the year in review was considerably lower on account of production restrictions. We incurred another year of losses although

this was mitigated by cost-cutting measures introduced Group-wide.

Broadly, the original three-year BRP outlined the following measures:

l Enhance the Core Business of timber harvesting and processing by improving the value chain from forest management to the production of wood-based products. This would involve the remodelling of two sawmills into a single operation to lower costs, specialising in focussed products for better efficiency and performance, and ensuring a sustainable log supply while optimising the utilisation of wood residues.

l Unleash Dormant Assets such as our unutilised vacant lands in Terengganu and Selangor for development, re-development or agricultural use to boost profits.

l Pursue New Revenue Streams by looking into downstream activities in timber production and distribution to add value to our core business and operations. The plan is to implement cost-saving measures by generating electricity onsite with mini-hydroelectric plants within our concessionary areas in line with new revenue streams. In addition, there are also plans for the production of biomass from made wood waste and the installation of photovoltaic solar panels to supplement the electricity supply.

l Strengthen Human Capital by sourcing and hiring talents who are well-versed with innovative and digital business resources resourcefulness and solutions.

However, we were unable to fully implement these strategies following the outbreak of COVID-19 and the subsequent economic fallout. Regardless, we focussed our attention on sustaining operations amidst the many challenges faced during 2020.

Given the circumstances and uncertain outlook, we revised the BRP into a new five-year Strategic Plan (FY2021-FY2025), which prioritises the Group’s post pandemic recovery plans to enhance the Group’s performance for the years to come.

The new Strategic Plan is to ‘MOVE’ the Group to adopt and implement new solutions, and is best illustrated and described using the following 4 MOVE pillars:


M O V EMONETISEDormant

Asset

OPTIMISEExisting

Business

VENTUREInto

DownstreamBusiness

ELIMINATEPerformance Constraints


2020 FINANCIAL RESULTS AT A GLANCE

INCOME STATEMENT

FINANCIAL INDICATORS

FINANCIAL POSITION

REVENUE (RM’000)

CURRENT RATIO (TIMES) QUICK OR ACID TEST (TIMES) GEARING RATIOTOTAL ASSETS TURNOVER (TIMES)

NET LOSS MARGIN RETURN ON EQUITY

2020 47,2002019 57,472

SHAREHOLDERS’ EQUITY (RM’000)

TOTAL ASSETS (RM’000)

NET ASSETS PER SHARE (RM)

(14%) (10%)2019: (16%) 2019: (15%)

RETURN ON TOTAL ASSETS

(7%)2019: (8%)


LOSS BEFORE TAX (RM’000)

2020 (6,374)2019 (8,977)

LOSS AFTER TAX (RM’000)

EARNINGS PER SHARE (SEN)

2020 (6,693)2019 (9,206)

2020 (4.93)2019 (6.79)

2020 2.292019 1.29

2020 1.862019 1.10

2020 0.182019 0.202020 0.46

2019 0.51

2020 68,3922019 62,896

2020 101,5452019 113,697

2020 0.502019 0.46


REVENUE

The Group recorded a lower Revenue of RM47.2 million, a

decrease of 17.9% from the RM57.5 million posted in the previous

financial year. Revenue from both business segments were down,

with timber harvesting, sawmilling and kiln drying dropping

by 17.9% to RM30.7 million (FY2019: RM37.4 million) while the

manufacturing segment dropped by 18% to RM16.4 million

(FY2019: RM20.0 million).

The timber business was directly affected by the pandemic

constraints, resulting in 21.0% less sawn timber sold year-on-

year due to lower log extraction during the reporting period. In

addition, owing to a delay in licence issuance by the Terengganu

Forestry Department (JPNT), this division was unable to recognise

revenue amounting to RM5.2 million from two compartments in

Ladang Hutan.

Meanwhile, the glass manufacturing business was faced with

delays and a weak construction sector following the imposition

of the Movement Control Order (MCO) which led to the

postponement of glass orders. The division underachieved

revenue by RM3.0 million in FY2020.

The timber division remained GPB’s largest business earner

during the reporting period, accounting for 65.1% of Group

Revenue against 34.6% for glass manufacturing (Split in FY2019

65.02% : 34.8%).

PROFITS/LOSS

The Group achieved a lower Gross Profit (GP) posting

RM7.0 million from RM7.8 million the year before. As a result,

we sustained a Loss Before Tax (LBT) of -RM6.4 million, which

nevertheless was an improvement from the LBT of -RM9.0 million

in FY2019. Loss After Tax (LAT) was RM6.7 million against a LAT

of RM9.2 million previously. Loss Per Share for the year was

4.93 sen against 6.79 sen in FY2019.


Dividend

As a result of back-to-back losses in the past two years, the Board

of Directors decided against any dividends for FY2020. GPB issued

a single-tier dividend of 1.27 sen per share, totalling a dividend

payout of RM1.74 million in the previous financial year.

SHAREHOLDERS EQUITY & ASSETS

At the close of the financial year, Shareholders Equity amounted

to RM68.4 million as compared with RM62.9 million in FY2019.

Total Assets stood at RM101.5 million (FY2019: RM113.7 million)

with Net Assets Per Share at a higher RM0.50 against RM0.46

previously.

OTHER FINANCIAL INDICATORS

Return on Equity (ROE) and Return on Total Assets

(RTA)

Despite the loss, our better bottom line performance resulted in

ROE of -10% during the reporting period compared against -15%

in FY2019 and an RTA of -7% against -8% previously.

Tax

The Group incurred higher taxes for the year posting RM319,000

from RM229,000 the year before.

Gearing

GPB maintained a comparatively low gearing of 0.18x in FY2020,

lower than the previous period as we reduced our total borrowings

marginally to RM12.1 million from RM12.5 million.

Finance Costs

The Group incurred higher finance costs amounting to RM673,000

in FY2020 as compared with RM350,000 the year before.



Cash and Capital Management

The constraints resulting from pandemic-related

restrictions resulted in a negative cash flow of -RM6.8

million from operating activities (FY2019: -RM858,000). This

led to the decline in our cash reserves and cash equivalent

to RM12.0 million from RM19.6 million previously.

The uncertainty throughout FY2020 required us to be

prudent in the case of capital and operational expenditure

(CAPEX and OPEX). In order to preserve cash and protect

cash flow, we reduced the CAPEX to RM1.3 million (FY2019:

RM1.7 million) for essential plant upgrades, critical

machinery and motor vehicles.

OVERVIEW OF OPERATING ACTIVITIES

KNOWN TRENDS IMPACTING GROUP OPERATIONS

• Weather The monsoon season in the north-eastern region of

Peninsular Malaysia starts in November and lasts until

March. The months of December and January are

usually the peak period of the monsoon season and

are considered downtime for logging operations as

access roads are often waterlogged. This limits timber

harvesting activities, where logging activities generally

peak between April and October.

However, GPB could not capitalise on this seven-

month window period in FY2020 as the MCO required

us to halt operations throughout April and into

early May. Following which, we were only allowed to

operate at 50% capacity during the Conditional MCO

(CMCO) period which lasted until early June 2020.

• Second Rotation Currently, yields average 25% less in the second

rotation of logging at the Dungun Timber Complex

(DTC) and Cherul Forest Concession (CFC). Output

from these areas are estimated at 15 hoppus tonnes

per hectare (hpt/ha) versus 20 hpt/ha in the first cycle.

MAIN FACTORS AFFECTING OPERATING ACTIVITIES

The COVID-19 pandemic severely restricted business activity at both our

business divisions. In line with the requirements of the first MCO, which

lasted from 18 March to 3 May 2020, saw us shut down all operations at

our logging, processing and production sites in Terengganu and Selangor

for a total of 47 days.

With the onset of the CMCO on 4 May 2020, we were permitted to operate

at 50% capacity before returning to normal operations, albeit subject to

standard operating procedures (SOP) from 9 June 2020 onwards when

the Recovery MCO (RMCO) was issued.

Beyond the temporary shutdowns and limited operations, the enforced

restrictions on movement and the issuance of new SOPs, such as physical

distancing, work from home (WFH) and the prohibition of face-to-face

meetings hampered many aspects of our business activities.

Ultimately, plans were brought forward, initiatives were interrupted,

supply was disrupted and work was delayed at every level in the Group.

Apart from lower production outputs, other components of our business

such as business development, sales and marketing, research and

development, etc. were similarly affected.

• Logging & SawmillingAs a consequence of the MCOs our forest management subsidiaries,

Kumpulan Pengurusan Kayu Kayan Terengganu Sdn Bhd (KPKKT)

and GP Forest Plantation Sdn Bhd (GP Forest), faced delays in

the issuance of new licences. This issue further compounded the

enforced limitations to logging activities, resulting in lower log

extraction, which in turn, reduced sawn timber production and

pushed down sales.

• ManufacturingOver and above the restrictions on manufacturing activities during

the MCO and CMCO periods, our subsidiary, GP Glass Sdn Bhd

(GP Glass) was adversely affected by a weak construction sector.

Many public and private sector projects were delayed, resulting

in cancellations or deferments of orders. The sector was unable

to recover and will remain cautious for the rest of the year

as construction companies are facing an uncertain operating

environment.


372,348square metres (sq m2)

2019: 406,976 square metres (sq m2)

1,471cubic metres (m3)

2019: 3,539 cubic metres (m3)

9,465metric tonnes

2019: 10,439 metric tonnes

GLASS VENEER

WOODCHIPS

22,774

hoppus tonnes

2019: 23,522 hoppus tonnes

LOGS SAWN TIMBER

REVIEW OF BUSINESS SEGMENTS

Impacted by the pandemic, segmental revenue was down for

both businesses in Logging & Sawmilling, and Manufacturing.

Nevertheless, these business segments improved on their

respective bottom lines by reducing their losses through cost-

saving measures and higher operating incomes.

LOGGING & SAWMILLING

This segment registered a segmental revenue of RM51.96 million

against RM56.95 million previously. However, the business

successfully reduced its LBT to -RM111,000 from -RM2.4 million

in FY2019.


The decline in segmental revenue was reflected by lower

production figures with logs harvested dipping to 22,774 hoppus

tonne (ht), as compared with 23,522 ht the year before. A lower

harvest led to a drop in sawn timber and woodchip sales at

13,899 tonnes (FY2019: 18,286 tonnes) and 9,465 metric tonnes

(FY2019: 10,439 metric tonnes) respectively.

MANUFACTURING

Similarly, segmental revenue for Manufacturing fell to RM16.4

million (FY2019: RM20 million) while LBT for the business was

-RM4.4 million against -RM5.6 million recorded in the previous

reporting period.

The weaker market for glass saw sales slide to 372,348 square

metres (m2), from 406,976 m2 the previous year, while veneer was

affected by the lower logs supply and operation restrictions of the

MCO which resulted in a steep drop in production to 1,471 cubic

metres (m3) from 3,539 m3 in FY2019.

PRODUCTION (HARVESTING & SAWMILLING)

PRODUCTION (MANUFACTURING)

13,899tonnes

2019: 18,286 tonnes



PERFORMANCE OF BUSINESS SEGMENTS

LOGGING & SAWMILLING 2020

2019

MANUFACTURING

OTHERS (RENTAL & INVESTMENT INCOME)

REVENUE (RM’000)


SEGMENTAL ASSETS (RM’000)

SEGMENTAL ASSETS (RM’000)

SEGMENTAL LIABILITIES (RM’000)

SEGMENTAL LIABILITIES(RM’000)

REVENUE (RM’000)

REVENUE (RM’000)

86,409

96,396

105,511

41,702

Logging & Sawmilling

Legend

41,350

45,049

23,830

23,214

Manufacturing

120,310

120,456

63,339

149,688

Others (Rental & Investment Income)


PROFIT BEFORE TAX (RM’000)

2020 51,9622019 56,951

2020 (4,414)2019 (5,624)

2020 22,3542019 8,437

2020 19,3412019 8,040

2020 (111)2019 (2,386)

2020 16,3552019 20,005


Stacking of logs at Pesama’s logyard.

MANAGING RISKS

Risk management has always been an essential process at GPB. The nature of our business, particularly in the case of timber logging, is

vulnerable to external factors, such as the timeliness of licence issuance and an Allowable Annual Cut (AAC) is often subject to changes

by JPNT.

With its unprecedented and fragile frame of reference, the pandemic has served to broaden and heighten our risk landscape beyond these

perennial issues. Accordingly, our risk assessment framework currently classifies two specific factors as high risk, disruption in log supply

and business sustainability.

Our Enterprise Risk Management (ERM) framework outlines how we manage such risks across various departments, divisions and

subsidiaries. Through the ERM, we have made the following analyses and prescribed the respective mitigation measures:

• Disruption in Log Supply

This risk is considered a near certainty with the fallout expected to have a major impact on our business. We have identified seven

root causes, and among them are the reduction in the AAC and weather, logistics and operational issues. We intend to mitigate these

risks by expediting the Remodelling of Sawmill Operations (ROSO), implementing forest plantation, engaging in sawn timber trade

and export, building closer relations with JPNT, defer CAPEX and carry out cost-cutting measures.

• Business Sustainability

Adjudged to be a likely possibility, our business sustainability has been further threatened by the current COVID-19 crisis along

with issues such as a dependency on timber-related revenue, the reduction of logging quotas and mills operating below capacity.

Our strategies here include the ROSO and an extension into downstream operations, including an expansion of income streams.

For further information, please refer to the Sustainability Report on pages 58 to 148 and the Statement on Risk Management and Internal Control

on pages 177 to 179.



OUTLOOK & PROSPECTS

OUTLOOK

While 2021 has been earmarked as a year of recovery, the future

remains uncertain with the ongoing issues surrounding the

supply of vaccines to the developing world, and the emergence of

more contagious and deadlier variants of COVID-19.

At the time of reporting, India, as the global centre for vaccine

production, has become the epicentre for the spread of the virus

in Asia, and the world. This development threatens vaccine supply

at a time when many emerging economies, including Malaysia,

are facing delays in vaccine shipments.

New cases are on the rise in Malaysia despite the re-imposition

of MCOs on two separate occasions in selected States and

Territories across the nation. Unlike the first MCO in 2020,

MCO 2.0 and 3.0 permitted almost all economic sectors to

operate. At the point of reporting (May 2021), fewer than 1 million

Malaysians have been fully vaccinated and the perilous scenario

in India could mean we will not reach the required ’80% vaccinated

population’ to achieve herd immunity in 2021.

The uncertainty notwithstanding, the International Monetary

Fund (IMF) in its April 2021 World Economic Outlook report

revised its projection for global growth upwards to 6.0% for the

year. Meanwhile, Bank Negara Malaysia (BNM) has maintained its

forecast that the domestic economy will grow by 6.0% to 7.5% in

2021, after having contracted by *5.6% the year before.

(Reference: Department of Statistics Malaysia (DOSM))


View of Gunung Padang of compartment 102 in Pasir Raja Barat located in Jerangau, Bukit Besi, Dungun, Terengganu.


The construction of Thilawa Multipurpose International Terminal 3, Myanmar used glass products supplied by GP Glass Sdn Bhd.

GP Glass Sdn Bhd. supplied glass products for the award-winning purpose-built KL Convention Centre, Kuala Lumpur.

PROSPECTS 2021: MOVING AHEAD WITH CAUTIOUS OPTIMISM

Prospects for 2021 will hinge on whether our respective

sectors will be allowed to continue operating at normal

capacity if future lockdowns are declared in response to

rising COVID-19 infections. This is particularly relevant in the

remaining months before the monsoon season is slated to

start in November 2021.

LOGGING & SAWMILLING

The division will focus on securing a potentially major revenue

source in commercial forest plantation as this can ensure a

sustainable log supply for the long term. This effort will be

complemented by the development and introduction of

downstream products and augmented by the maximisation

of forest and factory residue.

In addition, the Group will actively seek participation in projects

commissioned by the Federal and State governments, while

continuing to generate cost-savings through the ROSO and

installation of solar panels on factory rooftops to supplement,

and save cost on electricity usage.

MANUFACTURING

In comparison to the timber business, our glass manufacturing

segment may take longer to recover on account of the

soft economic outlook for the construction sector which

contracted by 19.0% in 2020.

This weak sentiment is expected to continue throughout

2021, with the National Property Information Centre (NAPIC)

reporting that the property market will remain flat for at least

another 36 months.

(Source: NAPIC 2020 market report released in April 2021)

However, in the long run, progress in mega projects like the

Mass Rapid Transit 3 Circle Line (MRT3), East Coast Rail Link

(ECRL), Light Rail Transit Line 3 (LRT3) and Bandar Malaysia

will give the construction industry a much needed boost and

indirectly stimulate demand for glass products.



Kiln drying facility.

MOVING AHEAD

Although recovery in 2021 is dependent on factors beyond our

direct control, the Group has a clear and concrete plan to rebound

and build momentum for future growth in a post-pandemic

environment.

Our five-year Strategic Plan is a comprehensive blueprint

designed to address current challenges, redress prevailing

weaknesses, build on existing strengths and capitalise on new

opportunities as was highlighted earlier.

Our advantage lies in the experience of having turned around the

business in recent years. We can now tap on lessons learnt to

reverse a regressive 2020 into a progressive 2021 and strive to

achieve better operational and financial performance to further

stabilise and strengthen GPB.

DATO’ AHMAD NADZARUDIN BIN ABDUL RAZAK

Chief Executive Officer


Sawntimber for export.


2016 2017 2018 2019 2020 RM’000 RM’000 RM’000 RM’000 RM’000

Revenue 57,598 65,643 70,399 57,472 47,200

(Loss)/Profit Before Tax (6,356) 499 (2,299) (8,977) (6,374)

Shareholders’ Equity 74,450 74,945 72,515 62,896 68,392

(Loss)/Earnings per Share (sen) (4.13) 0.38 (2.14) (6.79) (4.93)

Net Tangible Assets per Share (RM) 0.55 0.54 0.51 0.43 0.49

Financial Highlights

57,598 (6,356)

(4.13)

74,450

0.55

65,643 499

0.38

74,945

0.54

70,399 (2,299)

(2.14)

72,515

0.51

57,472 (8,977)

(6.79)

62,896

0.43

47,200 (6,374)

(4.93)

68,392

0.49

2016

2016

2016

2016

2016

2017

2017

2017

2017

2017

2018

2018

2018

2018

2018

2019

2019

2019

2019

2019

2020

2020

2020

2020

2020

REVENUE (RM’000) (LOSS)/PROFIT BEFORE TAX (RM’000)

EARNINGS/(LOSS) PER SHARE (SEN)

SHAREHOLDERS’ EQUITY (RM’000)

NET TANGIBLE ASSETS PER SHARE (RM)


Revenue30,588

4,41440,326

27,236

4,20355,238

24,219

5,31174,744

20,005

8,43756,951

16,355

22,35451,962

2016

20162016

2017

20172017

2018

20182018

2019

20192019

2020

20202020

MANUFACTURING (RM’000)

OTHERS (RM’000)HARVESTING & SAWMILLING (RM’000)

Financial Highlights- Segmental Information

2016 2017 2018 2019 2020 RM’000 RM’000 RM’000 RM’000 RM’000

HARVESTING & SAWMILLING

Revenue 40,326 55,238 74,744 56,951 51,962

(Loss)/Profit Before Tax (5,764) 7,509 2,862 (2,386) (111)

Segment Assets 101,996 101,101 100,272 96,396 86,409

MANUFACTURING

Revenue 30,588 27,236 24,219 20,005 16,355

(Loss)/ProfitBefore Tax 989 77 1,028 (5,624) (4,414)

Segment assets 20,910 20,397 47,979 45,049 41,350

OTHERS

Revenue 4,414 4,203 5,311 8,437 22,354

Profit/(Loss) Before Tax (877) (2,586) 4,884 8,040 19,341

Segment Assets 113,488 112,623 109,182 120,456 120,310


Financial Highlights – Sales by Region

REGION 2020 2019

MALAYSIA 98.70% 97.14%

UNITED KINGDOM 0.79% 0.67%

OTHER REGIONS 0.51% 2.19%

100% 100%

United Kingdom

Malaysia

Other Regions

97.14%98.70%

0.79%

0.51%

0.67%

2.19%

2019

Malaysia

United Kingdom

Other Regions

2020


Pesama Timber Corporation Sdn Bhd (Pesama), another wholly

owned subsidiary of the Group, is proud to have also successfully

obtained the FSC® endorsed certification for its 20,243 ha Cherul

Forest Concession (CFC) in December 2012, which is valid until 6

December 2022.

Golden Pharos Glass Sdn Bhd (GP Glass), the Group’s wholly

owned glass manufacturing arm for the production of tempered,

double glazed, laminated and ceramic printed safety glass is

registered against the provisions of ISO 14001: 2015 International

Standard, which is valid until 29 July 2023.

Attaining these standards of excellence has augured well for the

Group in enhancing the proficient management of its businesses

in timber and logging, and glass manufacturing as well as

maintaining its competitive advantage and improving its business

sustainability.

Therefore, continually providing pertinent financial and relevant

information as part of our Investor Relations (IR) engagement

initiatives is a key component of our commitment to upholding

the highest standards of corporate governance and stakeholder

engagement.

GROWING A LEGACY OF STRENGTH

The COVID-19 global pandemic impacted the Group as it did

all companies throughout the world. While GPB has always

been nimble, focussed and resilient, the pandemic compelled

us to dig even deeper. Drawing on technology and the united

determination of our entire workforce, we have overcome the

disruptions to established workflow and processes, and we take

pride in Growing a Legacy of Strength.

GPB’s wholly owned subsidiary, Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn Bhd’s (KPKKT) tropical forest of 108,900 hectares (ha) in Dungun Timber Complex (DTC) is the largest forest concession in the East Coast of Peninsular Malaysia. The DTC concession was FSC® certified in 2008, and is the second natural forest in Malaysia to achieve this distinction. The certification is valid till 27 February 2024.

Despite the challenges, our regular engagement channels and

communication with our multiple stakeholder groups are well

established. We continue to disseminate appropriate updates

on strategic direction, business recovery plans, operational

performance, progress of current projects and financial

information, and growth and sustainability initiatives. This

ensures stakeholders are apprised on time and enables investors

and analysts to make informed investment decisions. Guided by

the Group’s goals and priorities, the Head of Finance, together

with the Company Secretary, the Heads of Corporate Services

and Downstream Business, Corporate Communications, Human

Resources and Administration are jointly responsible for the

Group’s IR-related activities.

Investor Relations

SHAREHOLDER BASE AND VALUE AS SHARIAH-

COMPLIANT COMPANY

As at 16 April 2021, the shareholder base is 3,029

institutional and retail/private shareholders. Terengganu

Incorporated Sdn Bhd and Lembaga Tabung Amanah

Warisan Negeri Terengganu are our major shareholders

with equity holdings of 62.65% and 8.32% respectively of

the total share capital.

As a Shariah-Compliant company, GPB is committed to

responsible investments that are free from usury, gambling

and ambiguity in striving for sustainable profitability.


GPB held its 33rd Annual General Meeting at Primula Hotel.

Investor Relations (Continued)

ENGAGING OUR SHAREHOLDERS AND THE INVESTMENT

COMMUNITY

The 33rd Annual General Meeting (AGM) and Extraordinary

General Meeting was held on 28 July 2020 at Dewan Gamelan

3, Primula Beach Hotel, Jalan Persinggahan, 20400 Kuala

Terengganu, Terengganu Darul Iman. Due to restrictions imposed

under the Movement Control Order (MCO) during that period,

the AGM was conducted following strict regulations and standard

operating procedures in accordance with the Ministry of Health

and authorities guildenes.

Prior to the AGM proceedings, CEO Dato’ Nadza Abdul presented

the key highlights of the Group’s performance for Financial

Year 2019. The shareholders of the Company approved all the

resolutions as set out in the Notice of AGM dated 29 June 2020

by way of poll.

After the proceedings, shareholders who attended actively

participated in the question and answer session. All proposed

resolutions were duly passed, with the outcome from the AGM

featured on our website, www.goldenpharos.com.

As required by the Main Market Listing Requirements of Bursa

Malaysia and in line with the guidelines of the Malaysian Code

on Corporate Governance 2017, timely and comprehensive

announcements on our quarterly and annual financial results

are submitted to Bursa Malaysia which are duly uploaded

on the website, www.bursamalaysia.com/market_information/

announcements/company_announcement. These announcements

are also posted on our corporate website under our dedicated

IR portal http://goldenpharos.com/index.php/announcement/bursa-

announcement

We continuously update the website with the latest information

including annual reports, quarterly results, Bursa Malaysia

announcements, outcome of AGM and corporate information.

For more specific investor-related clarification and feedback,

a dedicated email address is provided: [email protected],

whereby queries and comments from shareholders, investors,

analysts, media and general public are addressed in a timely

manner. For further information on our Stakeholder Engagement

for FY2020, please refer to the Sustainability Report under the

Stakeholder Engagament segment in this Annual Report.


33RD AGM held on 28 July 2020 at 10.30 am

Gamelan 3, Primula Beach Hotel, Jalan Persinggahan20400 Kuala Terengganu, Terengganu Darul Iman

ANNOUNCEMENT ON QUARTERLY RESULTS

8 November 20203rd Quarter Results

18 March 20214th Quarter Results

24 June 20201st Quarter Results

24 August 20202nd Quarter Results

Financial Calendar

Standing left to right:

HAJI BURHANUDDIN HILMI BIN MOHAMED @ HARUNNon-Independent Non-Executive Director

HAJI SAIFFUDDIN BIN OTHMAN Independent Non-Executive Director

ASSOCIATE PROFESSOR DR MOHD ZAKI BIN HAMZAH Independent Non-Executive Director

MUHAMMAD RAMIZU BIN MUSTAFFA Non-Independent Non-Executive Director

DATO’ BENTARA DALAM DATO’ HAJI A. RAHMAN BIN YAHYA Non-Independent Non-Executive Director

MOHD BADARUDDIN BIN ISMAIL Independent Non-Executive Director

BOARD OF DIRECTORS

ANNUAL REPORT

Issued 25 May 2021

FINANCIAL YEAR1 January 2020 to

31 December 2020

34TH ANNUAL GENERAL MEETING

to be held on 29 June 2021

Sitting: YBM DATO’ HAJI TENGKU HASSAN BIN TENGKU OMAR Non-Independent Non-Executive Chairman


Chairman’s Profile

YBM DATO’ HAJI TENGKU HASSAN BIN TENGKU OMARNon-Independent Non-Executive Chairman 70

AGE

BOARD COMMITTEENone

YBM Dato’ Haji Tengku Hassan bin Tengku Omar was appointed as the Chairman of Golden Pharos Berhad (GPB) following his appointment as a Director on 1 August 2018.

He graduated with a Bachelor of Economics from Universiti Malaya, after which he served in various positions in the Terengganu State Civil Service between 1981 to 2004, including as State Financial Officer, Director of Lands and Mines, and Chief Executive Officer of Majlis Agama Islam dan Adat Melayu Terengganu (MAIDAM). He was the former Chairman of A&W Malaysia, Singapore & Thailand from 2000 until 2004.

Dato’ Haji Tengku Hassan is currently the Ladang Assemblyman and State Exco for Trade, Industrial, Regional Development and Administrative Wellbeing. He is a Board Trustee Member of Yayasan Terengganu and also sits on the Board of Lembaga Tabung Amanah Warisan Negeri Terengganu (LTAWNT).


Board of Directors’ Profile

BOARD COMMITTEE• Chairman of SIC • Member of LTIP

YBHG DATO’ BENTARA DALAM DATO’ HAJI A. RAHMAN BIN YAHYANon-Independent Non-Executive Director

Dato’ Bentara Dalam Dato’ Haji A. Rahman bin Yahya was appointed as a Director of GPB on 22 February 2017.

He holds a Bachelor of Economics (Honours) from Universiti Kebangsaan Malaysia and Advanced Diploma from the University of Wales College Newport, United Kingdom. Dato’ Haji A. Rahman began his career with the Terengganu Economic Planning Unit in 1983 and later moved on to hold various significant positions in Terengganu government agencies. He has served, among others, as the President of Kemaman Municipal Council, Deputy Director of Terengganu Economic Planning Unit and Comptroller of the Royal Household, Office of His Royal Highness the Sultan of Terengganu.

He has also held many positions in organisations such as Tesdec Sdn Bhd as the Executive Director from 1998 to 2004 and Terengganu State Economic Development Corporation as the General Manager from January 2016 to September 2016. He was appointed as the State Financial Officer in 2017 and was promoted to become the State Secretary of Terengganu on 22 April 2018 before retiring on 21 August 2019.

In recognition of his outstanding public service, Dato’ Haji A. Rahman was conferred the title of Dato’ Bentara Dalam on 22 July 2019.

Haji Burhanuddin Hilmi bin Mohamed @ Harun was appointed as Non-Independent & Non-Executive Director of GPB on 3 January 2021.

He holds a Master in Business Administration (MBA) majoring in International Business from the University of Leeds in the United Kingdom and completed his Bachelor of Accounting (Hons.) at the International Islamic University of Malaysia. He is a Chartered Accountant (CA) as well as a Certified Financial Planner (CFP) with the Malaysian Institute of Accountants (MIA) and Financial Planning Association of Malaysia.

Haji Burhanuddin Hilmi started his career as the Audit Senior, Audit and Business Advisory Services at Price Waterhouse (now known as Pricewaterhouse Coopers [PwC]) from 1993 to 1996. He became the Manager of the Assurance Division of KPMG in 1998 before establishing BH Consulting Sdn Bhd in 2002.

In 2006, he was appointed as the Group Chief Financial Officer of Composites Technology Research Malaysia Sdn. Bhd., before joining Weststar Aviation Services Sdn. Bhd from 2013 to to 2015 as the Chief Financial Officer. Thereafter, he was appointed as the Group Chief Financial Officer of Zetro Aerospace Corporation group of companies and was formerly a Director of Chartridge Conference Company Ltd (UK).

Currently, Haji Burhanuddin Hilmi is the President & Executive Director of Terengganu Incorporated Sdn. Bhd. and is also a Director of the Malaysian Palm Oil Board. He also sits on the Board of TDM Berhad and EPIC Berhad.

BOARD COMMITTEE• Member of NRC • Member of SIC

HAJI BURHANUDDIN HILMI BIN MOHAMED @ HARUNNon-Independent Non-Executive Director63

AGE

51AGE


Board of Directors’ Profile (Continued)

44AGE

58AGE

MUHAMMAD RAMIZU BIN MUSTAFFANon-Independent Non-Executive Director

ASSOCIATE PROFESSOR DR MOHD ZAKI BIN HAMZAHIndependent Non-Executive Director

Muhammad Ramizu bin Mustaffa was appointed to the Board of GPB on 1 August 2018 and was redesignated as Non-Independent Director following his appointment as Chief Financial Officer of Terengganu Incorporated Sdn Bhd on 8 January 2019.

He graduated from the University of Salford, Manchester, United Kingdom with a Bachelor of Science (Honours) in Finance and Accounting. He is a fellow of the Institute of Chartered Accountants in England and Wales (ICAEW) and a member of the Malaysian Institute of Accountants (MIA).

Muhammad Ramizu commenced his career as an auditor with Arthur Andersen (which later merged with Ernst & Young (EY), Malaysia) in 2000. He later joined ECM Libra Berhad before leaving for the United Kingdom in 2004 to join EY UK as an Executive, National Audit. His last position in the UK was as Manager, Corporate Finance in BDO UK before returning to Malaysia to join KLCC Group in 2010. In KLCC Group, he played key roles in various corporate exercises including in the establishment of KLCCP Stapled REIT.

Leaving KLCC Holdings as the Head of Corporate Finance in 2014, he later joined Sapura Resources Berhad as the Chief Financial Officer of the Aviation Business, and subsequently as the Group Head of Finance, Putrajaya Leisures & Services Group Sdn Bhd. He was later appointed as the Group Chief Financial Officer of Terengganu Incorporated Sdn Bhd, the holding company of Golden Pharos Berhad before leaving the group on 31 January 2020. He currently assumes advisory roles within the State of Terengganu and its GLCs.

BOARD COMMITTEE• Chairman of LTIP• Member of AC• Member of SIC

BOARD COMMITTEE• Chairman of NRC• Member of AC• Member of LTIP

Dr Mohd Zaki bin Hamzah was appointed to the Board of GPB on 1 August 2018. He holds a Bachelor’s Degree (in Biology) from Doane College, USA. He then completed his Master of Forestry in Forest Resource Management from Duke University, USA and obtained his PhD in Forest Rehabilitation from Yokohama National University, Japan.

He began his career as a Lecturer with Universiti Putra Malaysia (UPM) at Bintulu Campus in 1988, and thereafter continued to serve UPM, Serdang with the Department of Forest Production, and later (until present) with the Department of Forestry Science and Biodiversity under the Faculty of Forestry and Environment. He was appointed as Associate Professor in 2006 and has published referenced articles from more than 15 research studies and has been invited internationally as a guest lecturer on Forest Management and Silviculture.

Dr Mohd Zaki is being seconded to Terengganu State Government Secretary’s Office (Terengganu Strategic and Integrity Institute -TSIS) as the Deputy CEO of TSIS and the Director of the Centre of Excellence Pelan Induk Terengganu Sejahtera (CoE PITAS), for two (2) years beginning June 15, 2020.

Dr Mohd Zaki also served as a director of Kumpulan Pengurusan Kayu Kayan Trengganu Sdn Bhd, a subsidiary of GPB. He is a member of the Society of American Foresters and in May, 2020 he was appointed as a member of Malaysia Timber Industry Board (MTIB).


Board of Directors’ Profile (Continued)

Notes:

(i) None of the Directors have any family relationship with any Director and/or major shareholder of GPB.

(ii) None of the Directors have declared any conflict of interest with GPB group.

(iii) None of the Directors have any convictions for any offences within the past 5 years nor have been imposed with any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 December 2020.

SIC – Strategy and Investment CommitteeAC – Audit Committee NRC – Nomination and Remuneration Committee LTIP – Long-Term Incentive Plan Committee

57AGE

52AGE

MOHD BADARUDDIN BIN ISMAILIndependent Non-Executive Director

HAJI SAIFFUDDIN BIN OTHMANIndependent Non-Executive Director

BOARD COMMITTEE• Chairman of AC• Member of NRC

BOARD COMMITTEE• Member of AC• Member of NRC

Mohd Badaruddin bin Ismail was appointed to the Board of GPB on 1 August 2018. He attained his Diploma in Accountancy from Institut Teknologi MARA in 1985. He is a member of the Malaysian Association of Accounting Administration.

He had served as Assistant Accounts Manager at Kumpulan Pengurusan Kayu Kayan Trengganu Sdn Bhd, a subsidiary of GPB from 1987 to 1993. He had held various positions in several organisations such as TR Granite Industries Sdn Bhd as the General Manager of Corporate Finance in 1994, Sutra Beach Resort Sdn Bhd as the Corporate & Business Development Manager from 2000 to 2004 and Telepal Group of Companies as the Group Chief Executive Officer from 2008 to 2013.

He was the Principal of Adib Azhar & Co, a public accounting firm and currently, he is the Chief Executive Officer of Terengganu Telecommunications Sdn Bhd. Since 1 April 2019, he also sits on the Board of Permint Plywood Sdn Bhd, a wholly-owned subsidiary of GPB.

Saiffuddin bin Othman was appointed to the Board of GPB on 1 August 2018. He graduated with a Bachelor of Law (Hons) from International Islamic University of Malaysia in 1993 and was admitted as an advocate and solicitor of the High Court Malaya in 1994 and Syarie Counsel for Terengganu Syariah Court in 1995.

He started his career at Messrs Adnan & Wee from 1994 to 1999 before joining Messrs Wan Abd Muttalib & Co in 2000 as a partner. Saiffuddin brings over more than 25 years of experience in the legal practice in civil, criminal, syariah consultancy, general litigation, estate planning and conveyancing.


Chief Executive Officer’s Profile

Dato’ Nadza joined Golden Pharos Berhad as the CEO on 13 September 2017. He is also a director of all the companies within the GPB Group, including subsidiaries in logging, sawmilling, veneer-making, forest plantation and biomass pellet.

A professional senior executive, Dato’ Nadza is highly experienced in the management of government linked companies (GLCs) both at the national and state level.

Dato’ Nadza is also involved in several prominent Government agencies. He is a board member of the Malaysian Employers Federation since 2018. In 2019, he was appointed to the Board of the Social Security Organisation (SOCSO) by the then Minister of Human Resources. While in 2020, he was appointed to the Board of Trustees of the Malaysian Timber Council by the Minister of Plantation Industries and Commodity.

DATO’ AHMAD NADZARUDIN BIN ABDUL RAZAKChief Executive Officer

An award-winning senior leader, he has clinched several note-worthy awards including the 2019 Masterclass Bumiputera CEO of the Year (by Malaysia Excellence Business Award), the 2010 Malaysian Business Leadership Award for logistics sector (by the Kuala Lumpur Malay Chamber of Commerce) and the 2009 Express Service Provider of the Year (by Frost & Sullivan).

From 2012 until 2017, he was the Group Managing Director at Panglima Group of Companies, a private investment group with business interests in natural resources extraction in Indonesia, minihydro power generation in Laos and facilities management in Kuala Lumpur.

In 2011, he was the Head of Services Division at DRB-Hicom Berhad, overseeing the business performance of 4 large subsidiaries operating in the services sector. He supervised the CEOs of Alam Flora Sdn Bhd, Puspakom Sdn Bhd, Hicom Power Sdn Bhd and KL Airport Services Sdn Bhd.

From 2003 to 2010, he was with Pos Malaysia Berhad, holding several senior management posts such as COO of Poslaju, GM of Corporate Planning & Strategic Business, GM of Procurement & Contracts, GM of the CEO’s Office.

From 1996 to 2003, he was with the UEM Berhad/Renong Berhad group of companies, where he was the Deputy GM of Corporate Affairs & Business Development, and Manager in the Office of the President. He handled corporate matters, financial performance, strategic planning and legal affairs for Renong’s 10 subsidiaries in the property sector.

From 1993 to 1995, he was Assistant Manager in Corporate Finance with Asian International Merchant Bankers Berhad. His corporate finance work included listing of companies, issuance of bonds, and acquisition of companies.

Dato’ Nadza started his career in 1991 as a staff accountant with Gulf States Asphalt Co. Inc, a manufacturing company in Houston, Texas, USA immediately after his graduation.

53AGE


1. DATO’ NADZA ABDUL Chief Executive Officer

2. ZULKIFLI BIN OMAR Head of Corporate Services Golden Pharos Berhad

3. SYUKRI BIN ALI Head of Finance Golden Pharos Berhad

4. WAN ZUHAIRIAH BINTI WAN ALI @ WAN DAMSEK

Head of Human Resources and Administration

Golden Pharos Berhad

5. SURAYA BINTI MOHD HAIRON Head of Company Secretarial Golden Pharos Berhad

6. FAUZAN BIN ABDUL Head of Corporate Communication Golden Pharos Berhad

Heads of Departments

Heads of Subsidiaries

GROUP SENIOR MANAGEMENT

7. AZMAN BIN JUSOH Head of Internal Audit Golden Pharos Berhad

8. SUHAIRI BIN SULONG Head of Subsidiary Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn Bhd

9. MOHD SHAMSOL BIN MOHD SHAFIE Head of Subsidiary Pesama Timber Corporation Sdn Bhd

10. HILMI BIN AWANG Head of Subsidiary Pesaka Trengganu Berhad

11. AHMAD BAZLI BIN RAZALI Officer-in-Charge Permint Plywood Sdn Bhd

12. ARNINA BINTI RAHMAD Head of Subsidiary GP Forest Plantation Sdn Bhd

STANLEY LAU CHAN MINGHead of Subsidiary Golden Pharos Glass Sdn Bhd

Not in the picture:

1275

3 1011 9124 86


WORKING EXPERIENCE:

• More than 23 years of professional experience in the areas of audit, accounting, finance and business advisory. Before joining GPB in 2004, he worked for Arthur Andersen & Co as Assistant Manager for the Eastern Region and Head of Finance and Administration at PTB Land Sdn Bhd.

• His current position is Senior Manager of Corporate Services and Downstream Business.

QUALIFICATIONS:

• Member of the Malaysian Institute of Accountants (MIA)

• Fellow of the Association of Chartered Certified Accountants (ACCA)

• ACCA, Emile Woolf College of Accountancy & University of Northumbria at Newcastle, United Kingdom

• Diploma in Accountancy, Universiti Teknologi MARA

Group Senior Management’s Profile

WORKING EXPERIENCE:

• Commenced his career in 1999 with Permint Plywood Sdn Bhd, where he held various positions within the GPB Group.

• Presently, he is the Group Finance Senior Manager of GPB, heading the finance department since 2015.

QUALIFICATIONS:


• Master of Business Administration, Universiti Kebangsaan Malaysia

• Bachelor of Accountancy (Hons), Universiti Teknologi MARA

• Diploma in Accountancy, Universiti Sultan Zainal Abidin

52AGE

46AGE

ZULKIFLI BIN OMAR Head of Corporate Services, Golden Pharos Berhad

SYUKRI BIN ALI Head of Finance, Golden Pharos Berhad


WORKING EXPERIENCE:

• Started her career with GPB in 2012 as Assistant Manager and Joint Company Secretary for dormant companies under GPB Group. Prior to joining GPB, she worked as Assistant Tax Manager in S.T. Toh & Co. and was also a company secretary to several private limited companies. She has over 16 years of professional experience in taxation and accounting.

• Her current position is Manager and Company Secretary of GPB and its Group of Companies after being promoted in 2017.

QUALIFICATIONS:

• Professional Stage of the Institute of Chartered Secretaries & Administrator, United Kingdom

• Bachelor of Business Administration (Hons) Finance, Open University Malaysia

• Licensed by the Companies Commission of Malaysia

WORKING EXPERIENCE:

• Began her career with GPB in October 2006 as Senior Executive of Human Resources and Administration.

• Held the position of Assistant Manager, Human Resources and Administration in January 2009, before promotion to her current position as Human Resources and Administration Manager in January 2012.

• She has 17 years of experience in the field of human resource management.

QUALIFICATIONS:

• Panelist on the Industrial Court representing employers

• Pengapit Majikan Kawasan Timur, Jemaah Rayuan Keselamatan Sosial (JKRS)

• Member of the Malaysian Institute of Human Resource Management

• Bachelor of Human Resource Management (Hons) Degree, Universiti Utara Malaysia

• Diploma in Personnel Management, Universiti Sultan Zainal Abidin

Group Senior Management’s Profile (Continued)

46AGE SURAYA BINTI MOHD HAIRON

Head of Company Secretarial, Golden Pharos Berhad

46AGEWAN ZUHAIRIAH BINTI WAN ALI @ WAN DAMSEK

Head of Human Resources and Administration, Golden Pharos Berhad


WORKING EXPERIENCE:

• Started his career with GPB in June 2018 as the Head of Corporate Communications Department. Before joining GPB, he worked as a Senior Economic Journalist at Malaysian National News Agency (BERNAMA) from 2012-2014.

• He joined the Terengganu State Secretariat as the Press Secretary to Menteri Besar Terengganu from June 2014 until December 2015 before being appointed as the Special Media Officer at Terengganu Inc Sdn Bhd from January 2016 until May 2018.

• He is a member of the Terengganu Media Club since 2015.

QUALIFICATIONS:

• Master of Psychology, International Islamic University Malaysia

• Bachelor of English with Communication (Hons), Universiti Sultan Zainal Abidin

• Diploma in Manufacturing Technology, Universiti Sultan Zainal Abidin

• Foundation in Mechanical Engineering, Universiti Tenaga Nasional

36AGEFAUZAN BIN ABDUL

Head of Corporate Communications, Golden Pharos Berhad

WORKING EXPERIENCE:

• He joined GPB Group as Senior Manager, Internal Audit in February 2021.

• Previously, he was with Kumpulan Utusan as Internal Auditor for more than 20 years.

QUALIFICATIONS:

• Member of Malaysian Institute of Accountants (MIA)

• Bachelor of Accounting (Hons), University of Malaya

49AGE AZMAN BIN JUSOH

Head of Internal Audit, Golden Pharos Berhad



WORKING EXPERIENCE:

• Joined GPB Group as Finance Manager in Pesama Timber Corporation Sdn Bhd in September 2001 and has since held various key positions within the Group. Before joining GPB Group, he was attached to a Public Accounting Firm, Arthur Andersen & Co., specialising in audit, taxation and advisory works.

• He was appointed to the position of General Manager of Corporate & Finance in 2012 and was reassigned as General Manager of Pesama Timber Corporation Sdn Bhd in 2015. He was subsequently appointed as General Manager of KPKKT and was promoted to Senior General Manager in 2017.

QUALIFICATIONS:


• Bachelor of Accountancy (Hons), Universiti Utara Malaysia

49AGESUHAIRI BIN SULONG

Head of SubsidiaryKumpulan Pengurusan Kayu-Kayan Trengganu Sdn Bhd

WORKING EXPERIENCE:

• He has more than 23 years of working experience in the areas of marketing and sales in various private companies.

• He joined GPB in 2001 as Marketing and Sales Executive and held various posts within the Group. He was promoted to Assistant General Manager of Pesaka Trengganu Berhad in 2006.

• Currently, he is the General Manager of Pesama Timber Corporation Sdn Bhd.

QUALIFICATIONS:

• Master of Business Administration, Universiti Teknologi MARA

• Bachelor of Business Administration (Hons) Marketing, Universiti Teknologi MARA

• Diploma in Planting Industry and Management, Universiti Teknologi MARA

49AGE MOHD SHAMSOL BIN MOHD SHAFIE

Head of Subsidiary, Pesama Timber Corporation Sdn Bhd



WORKING EXPERIENCE:

• Started his career with Pesama Timber Corporation Sdn Bhd in July 1992 and has since held several significant positions within the GPB Group.

• He went on to be the Assistant General Manager of Pesama in 2010 before being appointed as Acting General Manager of Pesaka.

• He was promoted to General Manager of Pesaka in June 2019.

• He has more than 25 years of experience in Marketing and Operations as well as Sales.

• He is also a Committee Member of Persatuan Kayu-kayan & Perabot Bumiputera (PEKA).

QUALIFICATIONS:

• Diploma in Forestry, Universiti Putra Malaysia

• Committee member of Capacity Building for Compliance Project with Timber Certification under Malaysian Timber Certification (MTCS) (cooperation with MTIB)

• Committee member of Malaysian Timber Structure (MTIB)

• Committee member of Malaysian Dressed Timber (MTIB)

• Alternate Member of the MTIB Board

53AGEHILMI BIN AWANG

Head of Subsidiary, Pesaka Trengganu Berhad

WORKING EXPERIENCE:

• He joined Golden Pharos Glass Sdn Bhd in June 1993 as a marketing executive. Prior to joining Golden Pharos Glass, he was the Marketing Officer at Malaysian Sheet Glass Berhad for four years.

• He has held various positions in Golden Pharos Glass, as Assistant Operations Manager before being appointed as Sourcing and Marketing Manager from January 2001 till December 2010.

• He was promoted to Deputy General Manager of Golden Pharos Glass in January 2011 until March 2018, before being appointed as General Manager in June 2019.

QUALIFICATIONS:

• Vice President of Safety Glass Processors Association of Malaysia (SGPAM)

• Committee Member of SIRIM (working Group for Malaysia Standard on Safety Glass)

• Charter Institute of Marketing (Part 2), Stamford College

• Charter Institute of Marketing (Part 1), Stamford College

• LCCI, Rima College

54AGE STANLEY LAU CHAN MING

Head of Subsidiary, Golden Pharos Glass Sdn Bhd



Notes:

(i) None of the Senior Management has any family relationship with any director and/or any major shareholder nor has any conflict of interest with GPB.

(ii) None of the Senior Management has any convictions for any offences within the past 5 years.

WORKING EXPERIENCE:

• Began his career with the Ministry of Health as Assistant Secretary (Management Services) in 2010 before joining GP Dynamic Venture Sdn Bhd as Assistant Manager of Human Resources & Administration in 2016.

• In January 2018, he was the Head of Production at Permint Plywood Sdn Bhd and was subsequently promoted to Group Downstream Business Manager at GPB in August 2019 until October 2019.

• He served Permint Plywood Sdn Bhd as Officer-in-Charge since November 2019 and was promoted to Senior Manager on 1st October 2020.

QUALIFICATIONS:

• Member of Malaysian Institute of Management (MIM)

• Master of Business Administration, Universiti Teknologi MARA

• Bachelor of Science (Human Development) Degree, Universiti Putra Malaysia

• Pre-University Programme KPM-MSN, Sekolah Sukan Bukit Jalil, Kuala Lumpur

35AGEAHMAD BAZLI BIN RAZALI

Head of Subsidiary, Permint Plywood Sdn Bhd

WORKING EXPERIENCE:

• Started her career with GPB group as Forest Stewardship Council (FSC) and Compliance Executive in Kumpulan Pengurusan Kayu Kayan Trengganu Sdn. Bhd. in 2012.

• She went to Forestry Department of Peninsular Malaysia as Assistant Lecturer in 2013 and Assistant Director (Industry and Harvesting) at Pahang State Forestry Department from 2015-2018.

• She re-joined GPB Group as Assistant Manager in Kumpulan Pengurusan Kayu Kayan Trengganu Sdn. Bhd. in July 2018 and was transferred to GP Forest Plantation Sdn. Bhd. in November 2019 with the same post.

QUALIFICATIONS:

• Member Institute of Foresters Malaysia (IRIM)

• Bachelor of Science Forestry, Universiti Putra Malaysia

• Diploma in Forestry, Universiti Putra Malaysia

ARNINA BINTI RAHMAD Head of Subsidiary, GP Forest Plantation Sdn Bhd35

AGE



FSC AUDIT VISIT AT DUNGUN TIMBER COMPLEX

Forest Stewardship Council (FSC®) audit held a visit a logging concession in Bukit Besi together with Kumpulan Pengurusan Kayu Kayan Trengganu Bhd.

Corporate Highlights

9JANUARY

2020

SOLAT HAJAT DAN JASAMU DIKENANG

The solat hajat programme was organised by Kumpulan Pengurusan Kayu Kayan Trengganu Bhd in conjunction with the new year of 2020 and appreciation to outstanding employees who retired in 2019 at Bukit Besi, Dungun.

GROUP EXERCISE RESTRUCTURE INTER-COMPANY OLD DEBT

Pesaka Trengganu Bhd (Pesaka) and Permint Plywood Sdn Bhd signed a purchase agreement of a building as a part of the Group Exercise Restructure Inter-Company Old Debt at GPB’s office in Kuala Terengganu. The debt of subsidiaries can be practically minimised and maximised the company’s income. This event witnessed PPSB selling its property to Pesaka.

12JANUARY

2020

16FEBRUARY

2020


RM 12 MILLION DEBT SETTLEMENT TO TERENGGANU INC

Amid the Movement Control Order by the Government, GPB still managed to successfully settle the full payment of RM12 million to Terengganu Inc through redeemable preference shares. The agreement signing ceremony was held at Dewan Besar, Wisma Terengganu Inc, Kuala Terengganu.

10JUNE 2020

Corporate Highlights (Continued)

SOLAT HAJAT AND YASIN RECITAL AT FACTORY PESAKA TERENGGANU BHD

Pesaka Trengganu Bhd organised a solat hajat and Yasin recital at its factory to receive the blessing from the Almighty at Bukit Besi. The event was also attended by its directors and Chief Executive Officer, Dato’ Nadza Abdul.

22FEBRUARY

2020

33RD GPB ANNUAL GENERAL MEETING & EXTRAORDINARY GENERAL MEETING

An annual event of Golden Pharos Bhd, the company organised its 33rd Annual General Meeting and Extraordinary General Meeting at Primula Hotel, Kuala Terengganu. During the meeting, the company’s 5-year-strategic plan was tabled to overcome the issues regarding the performance of the company.

28JULY 2020



GROUP’S VISIT TO PERAK

In collaboration with the Perak State Forestry Department, GPB visited a concession area in Perak to learn the method of logging in blocks. While the process may be slower it contributes to better preservation of the forest. The visit was led by Chief Executive Officer, Dato’ Nadza Abdul.

10SEPTEMBER

2020

MEMORANDUM OF AGREEMENT (MOA) BETWEEN THE MALAYSIAN TIMBER INDUSTRY BOARD (MTIB) AND BAMBOO JUNGLE ADVENTURES

GBP signed a Memorandum of Agreement (MoA) between the Malaysian Timber Industry Board (MTIB) and Bamboo Jungle Adventures to build an iconic bamboo-based surau in Kuala Nerus. The event was witnessed by Menteri Besar Terengganu, Dato’ Seri Dr Ahmad Samsuri Mokhtar and Minister of Plantation Industries and Commodities, Dato’ Dr Mohd Khairuddin Aman Razali.

1SEPTEMBER

2020



BRIEFING CODE OF BUSINESS ETHICS

A briefing session on the Code of Business Ethics was organised by the Integrity and Governance Unit of GPB at Kumpulan Pengurusan Kayu Kayan Trengganu Sdn Bhd, Bukit Besi. The talk was conducted Encik Amirul Syafiq Che Ajizi.

GOLDEN PHAROS BERHAD GROUP BUSINESS RECOVERY PLAN 2021

This annually organised programme was organised to discuss GPB’s performance. The Group Business Recovery Plan 2021 was held at Pasir Raja Rest House, Bukit Besi in Terengganu. The event was attended by all Heads of Subsidiaries and management.

STATE GOVERNMENT’S VISIT TO GOLDEN PHAROS GLASS SDN BHD

Terengganu State Government visited GP Glass at Teluk Panglima Garang, Klang, Selangor to view the laminated glass process. The products provided at GP Glass were classified as the best as recognised by Brand Laureate in 2019. The visit was led by YB Haji Muhd Nurkhuzaini Abdul Rahman, the Ex-Officio of State Government who is also the Chairman of GP Glass.

22SEPTEMBER

2020

3OCTOBER

2020

25SEPTEMBER

2020


Media Highlights


Media Highlights (Continued)


Environmental Statement

ENVIRONMENTAL MANAGEMENT

Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn. Bhd. (KPKKT), the Group’s timber management subsidiary, adopts the Selective Management System (SMS) to manage the timber concessionary areas in its role as logs’ supplier for the consumption of the Group. KPKKT is also responsible for the sustainable development and management of its concession in accordance with the Sustainable Forest Management (SFM) standards to ensure that it addresses the loss of forest cover and forest degradation, forest-based economic, social and environmental benefits, and ecologically protecting forests while mobilising financial resources for the implementation of sustainable forest management planning,

harvesting, monitoring and the marketing of products.

ENVIRONMENTAL POLICY

TIMBER ENVIRONMENT POLICY

The Golden Pharos Group will collaborate with all relevant parties and organisations to ensure compliance towards the promotion of good forest management as stipulated under the Forest Stewardship Council FSC®) and the Malaysian Criteria and Indicators (MC&I) for Forest Management Certification (Natural Forest).

TIMBER SOURCING POLICY

The sourcing of timber is mainly acquired from the Group’s own certified forests. In circumstances where we had to obtain product from an alternative source, the Group uncompromisingly insists that supplies have, where applicable, the FSC forest management certification. Timber supply is a very critical factor to the Group’s expansion programmes and secure sources of supply and the ability to process logs into top-quality finished products inexpensively is critical to preserving the biological diversity of our forests, and at the same time, making it beneficial to the lives of local people and workers, while ensuring it also sustains economic viability. The Group has also undertaken the Species Segregation Initiative that promotes lesser known species for commercialisation, which is an initiative encouraged by the Malaysian Government.

ISO 9001: 2015 Quality Management System

• Requirements for a QMS, including documented information, planning and determining process interactions

• Responsibilities of management

• Management of resources, including human resources and the organisation’s work environment

• Product realisation, including the steps from design to delivery

• Measurement, analysis, and improvement of the QMS through activities like internal audits and corrective and preventive action


In this context, KPKKT as a Forest Management Unit (FMU), subscribes fully to the MCI of which the above SMS was based on. KPKKT also co-operates with the State Forestry Department to ensure that best management practices in logging are observed and maintained to meet the requirements of the Malaysian Timber Certification Scheme (MTCS).

KPKKT was awarded the FSC® certification and has been accredited since 21 April 2008 by the Scientific Certification Systems (SCS), a world leader and pioneer in third-party auditing and certification of forest management operations and are the custodians of the SCS-FSC Interim Standard for Forest Management Certification in Malaysia (Version 5.0 2014) for well-managed forests.

This certification verifies KPKKT’s 108,900 hectare tropical forest at the Dungun Timber Complex (DTC) which is managed according to the rigorous international standards of the FSC® under a selective cutting approach that maintains continuous forest cover and species diversity. This FSC® certification is valid until 27 February 2024.

KPKKT’s DTC concession area is the largest and the only forest in Peninsular Malaysia to have the FSC® certification, and only the second natural forest in Malaysia to achieve this distinction.

Enviromental Statement (Continued)

KPKKT is committed to adopt the National and International Convention on Biological Diversity in order to sustain the richness of flora and fauna in the concessionary areas.

In addition, another subsidiary, Pesama Timber Corporation Sdn Bhd (Pesama), has successfully obtained the FSC® certification from SCS Global Services for its 20,243 hectares at the Cherul Forest Concession (CFC) on 10 December 2012. The certification is valid until 6 December 2022.

With the FSC® certification, the Group will be able to gain access to markets and customers that demand environmentally friendly certified products for both domestic and export consumption.

Golden Pharos Glass Sdn Bhd (GP Glass), a subsidiary of GPB, has been assessed and registered against the provisions of ISO 9001:2015 Quality Management System which is based on the plan-do-check-act methodology which provides a process-oriented approach to documenting and reviewing the structure, responsibilities, and procedures required to achieve effective quality management of its current product range of tempered, double glazed, laminated and ceramic printed safety glass. This certification is valid until 29 July 2023.

CHAIN-OF-CUSTODY CERTIFICATION

In July 2008, both Pesaka Trengganu Berhad (Pesaka) and Pesama, successfully obtained the Chain-of-Custody (CoC) certification

for its sawmills from a third-party certifier accredited by FSC®. With this certification, both subsidiaries are fully certified to be using

wood from well-managed forests, independently certified in accordance with the criteria and principles set by the FSC®.

This would also mean that Pesama and Pesaka are well placed to market their sawn timber and other wood based products in

markets that insist on wood products to be sourced from sustainable and well managed forests.

Forest Sawmill Processor Retailer

Chain of Custody (COC) certification

Factory



HIGH CONSERVATION VALUE (HCV) &HIGH CONSERVATION VALUE FOREST (HCVF)

KPKKT has identified HCV forest with a total of 4,588 hectares reserved as HCVF. Some of the more unique features in these HCVFs are:

• KPKKT’s HCVFs have various invaluable and unique tree species. A Chengal tree located within KPKKT’s concession area is now listed in the Malaysia Book of Records as the largest Chengal tree in the world. The tree is estimated to be more than 1,300 years old, with a height of 65 metres and circumference of 16.75 metres (Rainforest Journal.com, 2013).

• Chemerong Waterfalls which is situated in KPKKT’s HCVF is the highest waterfall in Malaysia. It thunders magnificently down a 305 metre slope and has the potential to become a major tourist destination and eco-recreational destination.

• The Keruing Sarawak (Dipterocarpus sarawakensis), which is also a rare and endangered species by Malaysia Planet Red List (2010), has been found in KPKKT’s Forest Reserve and has been designated as a protected area. The species is also classified as endemic to Sarawak and Terengganu (Peninsular Malaysia Plant Red List, 2010).

• KPKKT has also delineated some areas exceeding 1,000 metres above sea level as a Totally Protected Area which is prohibited from being harvested. These are designated as important natural habitats and reserved as a wildlife sanctuaries.

KPKKT has identified HCV 1.3: Endemism and HCV 4.1: Watershed Protection of the HCVF Toolkit for Malaysia by the World Wide Fund for Nature (WWF) as applicable to its concession area.

SOCIAL IMPACT ASSESSMENT (SIA)

Social Impact Assessment (SIA) is the process of identifying and managing the current and eventual social impacts of projects. As such, SIA is used to predict and mitigate negative impacts and identify opportunities to enhance benefits for local communities and broader society. Concerned with the well-being of the local communities, KPKKT and Pesama have been carrying out social impact assessment exercises since 2009 to identify the problems faced by the communities and determine appropriate mitigation strategies to address them. The issues raised include river water quality, damage to crops by wildlife and road safety, especially to school children. Specific mitigation measures were proposed and taken by KPKKT by way of regular consultation with relevant authorities and local communities. As part of its continuous improvement process, KPPKT examines the effects on social and economic environments annually.

HCV1

Definition of HCV areasThe HCV areas are defined as follows:

HCV2

HCV3

HCV4

HCV5

HCV5

areas containing globally, regionally or nationally significant concentrations of biodiversity values (e.g. endemism, endangered species)

areas containing globally, regionally or nationally significant large landscape natural habitats, contained within, or containing, the management unit, where viable populations of most if not all naturally occurring species exist in natural patterns of distribution and abundance.

areas that are in or contain rare, threatened or endangered ecosystems.

areas that provide basic services of nature in critical situations (e.g. watershed protection, erosion control).

areas fundamental to meeting basic needs of local communities (e.g. subsistence, health).

areas critical to local communities’ traditional cultural identity (areas of cultural, ecological, economic or religious significance identified inco-operation with such local communities).


Jeram Lesung, another area of outstanding natural beauty that is part of our HCVF.


ANNUAL REPORT 2020GOLDEN PHAROS BERHAD 57ANNUAL REPORT 2020GOLDEN PHAROS BERHAD

growing a legacy of strength

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