On behalf of the Board of Directors of Metronic Global Berhad (“MGB” or “the Company”), it is my pleasure to present the Annual Report and Audited Financial Statements for the financial year ended 31 December 2016.
OPERATING ENVIRONMENT OVERVIEW
Despite a slower Malaysia GDP growth of 4.2% in 2016 compared to growth rate of 5.0% during 2015, the Group recorded higher revenue and profit margins as detailed in our Review of Financial Results And Financial Condition under the section of Management Discussion And Analysis. Through proper planning and execution of our projects under the Engineering Division during the year, the Group had achieved satisfactory results consistently over the preceding 4 quarters, proving once again our commitment to deliver positive results. However, due to other non-core operational factors resulted from historical ventures and investments which the Group has now swiftly dealt with, have caused us higher impairments and losses suffered in the 4th quarter of the year. The cleanup exercise is now complete and we are cautiously optimistic on steadily regaining our market leadership in the engineering and technology market in the financial years ending 2017 and ahead.
As for our property development sector, we are nearing the completion of our first phase of 16 units of the entire 42 units of 3-storey shoplots. The performance of this sector should be reflected in the financial year ending 2017 as the Group had adopted the MFRS standards which recognizes revenue upon completion. The slowdown in the property market had also adversely affected the progress and performance of this sector.
The corporate developments that took place during the financial year and up to the date of this report are as follow:
The current ongoing MRT Line 1 project known as “Project Mass Rapid Transit Sungai Buloh – Kajang Line” with a contract sum of RM42.9 million has achieved its targeted milestones in 2016 and is expected to be completed in 2017. As at the date of this report, the Group has been able to meet all the scheduled timelines provided based on its vast experience, technical resources, financial strength and expertise in handling the project.
The Group has also been preparing to tender for the MRT Line 2 project stretching from Sungai Buloh – Serdang – Putrajaya which is scheduled to open in the 2nd quarter of 2017, leveraging on our competitive edge and core strengths to secure another maiden infrastructure project.
On solar power development, the Group has received conditional letter of approval through its subsidiary, Bonanza Partners Sdn Bhd (“BPSB”) from Unit Perancang Ekonomi Negeri Kelantan to allocate the land area measuring 231 acres located at Bandar Baru Tok Bali, Kelantan for the solar photovoltaic plant project construction in the capacity of 50MW which is extendable to 250MW. With that, the Group entered into a Memorandum of Understanding (“MOU”) with a local partner to identify a suitable technical partner and turnkey contractor and to conduct feasibility studies on the viability of the project.
APPRECIATION AND ACKNOWLEDGEMENT
I would like to extend my sincere appreciation to all my fellow Directors for their valuable contribution.
On behalf of the Board, I would also like to thank our shareholders, customers, suppliers, business associates, bankers and other stakeholders for their continued support. The appreciation also goes to our employees for their continued dedication and commitment. We look forward to better performance in 2017 and ahead.
On behalf of the Board
Patrick Chin Hau Yui