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Board of Directors

 

 

Chairman's Message

 

Dear Shareholders

On behalf of the Board of Directors, I am pleased to present the Annual Report and the Audited Financial Statements of Tasek Corporation Berhad for the financial year ended 31st December, 2018. 

The Group recorded an after tax loss of RM21.8 million on revenue of RM554.8 million compared with the previous year's profit after tax of RM1.0 million with revenue of RM549.1 million. The loss for the year was primarily due to the prolonged pricing competition as a result of weakened demand for cement in the construction sector which experienced a subdued property market and slowdown in infrastructure activities amidst the ongoing industry overcapacity. This had affected the cement segment's margins resulting in a loss of RM38.1 million on revenue of RM413.5 million for the year compared with loss of RM14.4 million and revenue of RM399.0 million the previous year. Its ready-mixed concrete segment recorded a profit of RM3.6 million for the year albeit lower than the profit of RM7.4 million the previous year mainly due to lower sales volume and lower average selling price arising from the pricing competition in the domestic cement market. However, the Company's share of profit of RM3.0 million from its associate company for the year was better than the previous year's share of profit of RM2.7 million.

The Board expects the Group to face a challenging business environment for the coming year and anticipates the price competition to continue with the weak demand cement outlook. The Group will continue to remain steadfast to focus on sustainable cost rationalisation and improve operational efficiency.

On 2 January 2019, we welcome Mr. Tan Eng Kwee, the Chief Executive Officer of Hong Leong Asia Ltd, as a member of the Board of Directors as a Non-independent Non-excecutive Director. Our Executive Director/ Group Chief Executive Officer, Mr. Ting Sii Tien resigned on 6 January 2019 to pursue other interests after serving on the Board since 2005. We wish him all the best in his future endeavours.

The Company will be holding its 58th Annual General Meeting on 30 April, 2019 and the Board has the pleasure of inviting shareholders to attend the Meeting which will be held in the Millennium I, Lobby Level, Grand Millennium Kuala Lumpur, 160 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia. Please refer to the Notice of the 58th Annual General Meeting and its accompanying notes in this Annual Report for further information.

On behalf of the Board, I thank the shareholders, our management team and our employees, Union members, distributors, customers, suppliers, transporters, business partners and other stakeholders for their continuing support to the Group.

 

KWEK LENG PECK

Chairman

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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