Cypark's establishment is based on sustainable innovation, progress and development in providing a quality of life environment through first-class professional engineering and environmentally friendly products, maintenance and services. Constant innovation, professionalism and delivery BUSINESS INTRODUCTION I PERFORMANCE REVIEW I MANAGEMENT PROFILE I CORPORATE GOVERNANCE I FINANCIAL INFORMATION I ADDITIONAL INFORMATION.
Solid Recovered Fuel (SRF) 10. Biomass Solid Fuel
Landfill Restoration 12. Leachate Treatment Plant
Project Highlights
Awards & Accolades
National Energy Awards
Asian Power Awards
ASEAN Energy Awards
Finance Asia Magazine
PFI Asia Awards
Investors Relations and
Key Performance Highlights
Media Presence 2020
CYPARK EXPECTS TO
OF JObS
CYPARK RESOURCES
MAJOR INFRASTRUCTURE PROJECTS AWAITINg DIRECTION
PUbLICINVEST: MORE PLAYERS TO bENEFIT FROM OPEN bIDDINg PROCESS
FIVE COMPANIES AWARDED MAJOR SOLAR PROJECTS
PUbLICINVEST UPgRADES
OUTPERFORM’
CYPARK SETS ITS SIgHTS ON HIgH
TAN SRI RAZALI ISMAIL
Chairman’s Statement
We are Advancing Future-Ready
Solutions
The 2020 COVID-19 pandemic delivered the biggest shock to our local and global economy since our independence. On the bright side, the COVID-19 pandemic has provided a unique opportunity to rethink the kind of future we want, so we can plan how to change the way we live and work.
Dear Stakeholders,
We have reviewed and further revised our action plans for 2021 and beyond to ensure that, while we are still in the midst of these extraordinary times, we remain as committed as ever to our short-term strategy and long term. I expect renewable energy to remain a major contributor to our revenues and profits in 2021 and beyond.
Acknowledgements
Thus, we have full confidence that the Malaysian government will further develop and implement its green policy for the country's economy at the same time as the above global trend. Therefore, we must act on them strategically and we must act with creativity, innovation and determination.
Management Discussion and Analysis
Company Overview and Strategy
Our Performance
Regarding Malaysia's first WTE plant developed by Cypark in Ladang Tanah Merah, Negeri Sembilan, we are proud to announce that the testing and commissioning phase of the plant will begin with the lifting of the travel restriction for foreign specialists of established by the Malaysian government. The SMART WTE plant in Ladang Tanah Merah, Negeri Sembilan will be commissioned in mid-2021.
Assets and Liabilities
The group's adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for FY20 showed an increase of 0.9% or RM1.4mil to RM149.3mil compared to RM147.9mil in the financial year-end 2019.
Equity
Dividend
Our Outlook and Prospects
Although 2020 was a challenging year for the green and renewable energy industry, we believe that 2021 will be a year of recovery as the government has committed to ensuring that construction and energy businesses operate as usual, so this will to provide better opportunities in expanding green and renewable energy in Malaysia. In cooperation with the ongoing efforts of the Government within the Ministry of Housing and Local Government to embed a greener way of waste management, we believe that more WTE plants will be built in the future.
Known Trends and Events
Additionally, there will be five more WTE tenders to be announced in the near future, targeted to take place in Melaka, Johor, Pahang and Kedah. Having the country's first WTE plant to be operational in mid-2021, Cypark will stand out from other WTE competitors.
The group also believes that the government under the Ministry of Housing and Local Government has done an outstanding job in ensuring that Malaysia excels in its waste management system. With the announcement of the Bukit Payung WTE tender in July 2020, the government has shown its continuous efforts in renewing its waste management system in developing more WTE Plants in Malaysia.
Sustainability Statement
The launch, drafting and overview of the Sustainable Policy are under the competence and direction of the Board of Directors, which consists of eminent persons with high experience in multidisciplinary fields. Any initiative, including plans and strategies related to sustainability, by the Board of Directors will be executed and supported by Senior Management.
Stakeholder Engagement
The Senior Management is also responsible for updating the Board on the effectiveness of sustainability-related programs and initiatives undertaken throughout the year to ensure that there is a successful integration of our financial objectives, business strategy and business model with the environmental and social sustainability considerations. is. This cohesive arrangement was evidenced by the successful launch of the Cypark's RM500 million perpetual Sukuk Musharakah.
MARKETPLACE
WORKPLACE
ENVIRONMENT
COMMUNITY
Sustainability governance
Board of Directors
Builds a strong long-term relationship with government to cultivate a favorable business environment for the RE industry. Maintains existing excellent media engagement efforts to further enhance Cypark's branding.
Responsible Land Use
Assist Income generation
Innovation and Research &
Development (R&D)
Embracing Renewable Energy (RE)
Responsible Land Use
Assist Income generation
Innovation and Research & Development (R&D)
R&D
Employee Recruitment
Male
Female
Potential Development
Health and Safety
The Group's development of RE parks produces zero greenhouse gas (GHG) emissions compared to conventional fossil fuel-based power facilities. Currently, the Group's RE parks have helped to successfully avoid tons of carbon dioxide (CO2) while generating MWh from renewable energy.
42,316.51 tonnes
The Group remains steadfast in its commitment to sustainable development and seeks to operate in a way that minimizes environmental damage. The Group has successfully transformed non-productive, abandoned and degraded areas by rehabilitating and converting up to 94,000 hectares of land into environmentally friendly renewable energy projects that can generate income at the same time.
344,498.74 MWh
We are excited to say that we are one of the few listed companies on Bursa Malaysia that actively contribute to reducing carbon and GHG emissions. We pledge to reduce carbon footprint by embracing and strengthening renewable energy generation and energy efficiency.
Circular Economy Model
Cypark menghargai karyawan kami dan memandang masyarakat sebagai bagian terpenting dalam perjalanan keberlanjutan kami. Donasi ke Pinggir Taman Tun Dr. Yayasan Yatim Piatu Ismail (PTTDI) Rumah Ihsan (kiri) dan Pusat Jagaan Nur Hasanah (kanan) bersamaan dengan perayaan Raya Aidilfitri 2020.
TAN SRI RAZALI bIN ISMAIL
DATO’ DAUD bIN AHMAD
DATUK AbDUL MALEK bIN AbDUL AZIZ
DATO’ DR. FREEZAILAH bIN CHE YEOM
ENCIK MEgAT
AbDUL MUNIR bIN
MEgAT AbDULLAH RAFAIE
ENCIK HEADIR bIN MAHFIDZ
Key Senior Management’s Profile
DOREEN TAN
YUSOF
MOHD HILMY bIN
WAN SALLEH
Corporate Governance Overview Statement
PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS I. BOARD RESPONSIBILITIES
BOARD COMPOSITION
Stakeholders can form an opinion on the overall effectiveness of the Board and individual Directors. Based on the aforementioned evaluations conducted during the FYE 2020, the NC and the Board were satisfied with the performance of each Director, the Board as a whole and the Board committees.
REMUNERATION
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. AUDIT COMMITTEE
RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK
The outsourced internal auditors report directly to the AC and provide reasonable assurance to the Board of Directors regarding the adequacy of the scope, functions and resources of the internal audit function. The internal audit review of the Group's operations includes an independent assessment of the Company's compliance with its internal controls and recommendations for further improvement are made.
PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS
COMMUNICATION WITH STAKEHOLDERS
CONDUCT OF GENERAL MEETINGS
The Group's audited consolidated financial statements for the financial year ended 31 October 2020 have been prepared in accordance with the applicable accepted accounting standards in Malaysia and the Companies Act 2016 (“CA 2016”) to give a true and fair view of the affairs of the company and its group. The Board of Directors has also ensured that the Company maintains an account that discloses the Company's financial position with reasonable accuracy, and which enables the Board of Directors to ensure that the accounts are in accordance with CA 2016.
Statement of Directors’ Responsibilities
The Declaration by the Directors in accordance with Section 251(2) of the CA 2016 is set out in the section entitled "Declaration by Directors" of the Directors' Report which is included in the Group's consolidated audited financial statements for the financial year ended 31 October 2020. The Board has ensured that the quarterly reports and annual audited financial statements of the Group are released to Bursa Malaysia Securities Berhad on time to keep our investing public informed of the Group's latest performance and developments.
The Audit Committee Report
Composition of the Audit Committee
Number of Audit Committee Meetings and Details of Attendance
Summary of Work of the Audit Committee
Summary of Work of the Internal Audit Function
Introduction
Board Responsibility
Risk Management Framework and Key Features of Internal Control System
Statement on Risk Management and Internal Control
Audit Committee reviews the quarterly financial results and annual Audited Financial Statements before the approval of the Board;. Large assets are insured to ensure that assets of the Group are adequately covered against accidents that could lead to material losses for the Group;.
Internal Audit Function
The management ensures that the safety regulations in the group are considered, implemented and observed accordingly. Periodic audits by external parties to ensure compliance with the terms and conditions of the ISO certification; and N.
Review of the Statement by External Auditors
Board and Audit Committee meetings are scheduled regularly, i.e. at least four (4) times a year, and relevant meeting documents are distributed in a timely manner to enable members to access all relevant information for reviews and questions they may have. to stand up; . Employee training and development programs are regularly offered to equip our employees with the necessary knowledge and skills to perform their job functions productively and effectively;.
Board Assessment
Statement on Risk Management and Internal Control
Additional Compliance Information
Audit and Non-Audit Fees
Material Contracts Involving Directors’ and Major Shareholders’ Interests
Material Properties
Recurrent Related Party Transactions (“RRPTs”)
Employees’ Share Option Scheme (“ESOS”)
Utilisation of Proceeds
FINANCIAL STATEMENTS
Directors’ Report
DIRECTORS’ REPORT
PRINCIPAL ACTIVITIES
RESULTS
DIVIDENDS
ISSUE OF SHARES AND DEBENTURES
EMPLOYEES’ SHARE OPTION SCHEME
TREASURY SHARES
RESERVES AND PROVISIONS
SUBSIDIARIES
DIRECTORS
DIRECTORS OF SUBSIDIARIES
DIRECTORS’ INTERESTS IN SHARES AND ESOS
DIRECTORS’ BENEFITS
INDEMNITY AND INSURANCE COST
OTHER INFORMATION
No contingent or other liability has become due, or is likely to become due, within the twelve month period following the end of the financial year which, in the opinion of the directors, will affect or is likely to affect the Group's ability or for the Company to fulfill their obligations in a timely manner. In the opinion of the directors: i) the results of the Group's and the Company's operations during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature; and. ii) there has not occurred in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature that could substantially affect the results of the operations of the Group and the Company for the financial year in which this report was made.
SIGNIFICANT EVENTS
At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or in the financial statements, which would render any amount stated in the financial statements misleading.
SUBSEQUENT EVENT
AUDITORS
APPROVAL OF THE DIRECTORS’ REPORT
Report on the Audit of the Financial Statements
Independent Auditors’ Report
Updated our understanding of the Group's process for assessing the recoverability of contract assets and trade receivables. The other information includes the information in the annual report, but does not include the group's and the company's accounts and our audit report on this.
Report on Other Legal and Regulatory Requirements
We communicate with the directors about, among other things, the planned scope and timing of the audit and about significant audit findings, including any significant shortcomings in internal control that we identify during our audit. From the matters communicated with the directors, we determine those matters that were most significant in the audit of the annual accounts of the Group and the Company for the current financial year and therefore constitute the key audit matters.
Other Matters
We also provide directors with a statement that we have complied with relevant ethical requirements relating to independence and to communicate with them all relationships and other matters that may reasonably be thought to be relevant to our independence, and when it is possible, actions taken to eliminate threats or protective measures applied. We describe these matters in our auditors' report unless law or regulation precludes public disclosure of the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of such thing would be reasonably expected. outweigh the public interest benefits of such communication.
Statements of Financial Position
Statements of Comprehensive Income
Consolidated Statement of Changes in Equity
Statement of Changes in Equity
Statements of Cash Flows
CORPORATE INFORMATION
The addresses of the Company's principal place of business and registered office are listed on page 004. There have been no significant changes in the nature of these activities during the financial year.
SIGNIFICANT ACCOUNTING POLICIES
- Basis of preparation
- Application of new or amended standards
Cypark Resources Berhad (the "Company") is a public limited company incorporated and domiciled in Malaysia and is listed on the main market of Bursa Malaysia Securities Berhad. The Company and its subsidiaries are principally engaged in environmental engineering, landscaping and infrastructure, maintenance, renewable energy, investment holdings and the provision of management services.
Notes to the Financial Statements
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
- Standards issued but not yet effective
Amendments to IFRS 4 Extension of the temporary exemption from the application of IFRS 9 August 17, 2020 Amendments to IFRS 9, Reform of the reference value of interest rates - Phase 2 January 1, 2021 Amendments to IFRS 101 Classification of liabilities as short-term or long-term January 1, 2023 Amendments to IFRS 10 and sales or investment of funds between the investor and will be published.
SIGNIFICANT ACCOUNTING POLICIES (continued)
- Basis of consolidation
- Basis of consolidation (cont’d)
- Business combination
- Investments in subsidiaries
- Investment in an associate
- Plant and equipment (a) Measurement basis
- Intangible assets
- Impairment of tangible and intangible assets (a) Goodwill
- Financial instruments
- Financial instruments (cont’d) Financial assets
- Financial instruments (cont’d) Equity instruments designated at FVTOCI
- Financial instruments (cont’d) Derecognition of financial assets
- Financial instruments (cont’d) Financial liabilities at amortised cost
- Financial instruments (cont’d) Equity instrument (cont’d)
- Revenue and other income recognition
- Revenue and other income recognitions (cont’d)
- Leases
- Borrowing costs
- Employee benefits
- Income tax
- Cash and cash equivalents
- Provisions
- Segment reporting
At the time of disposal, the difference between the net disposal proceeds and the carrying amount of the disposed investment is recognized in profit or loss. At the time of disposal, the difference between the net proceeds of disposal and the carrying amount of the investment disposed of is recognized in profit or loss.
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that, if applicable, reflects the risks specific to the liability. The segment managers report directly to the Group's management, which is the key operational decision maker, and regularly review segment results to allocate resources to the segments and assess segment performance.
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONT’D)
- Judgements made in applying accounting policies
- Key sources of estimation uncertainty
- Key sources of estimation uncertainty (cont’d)
Estimating recoverable amount requires management to estimate the expected future cash flows from the Company's investments in subsidiaries and also to select an appropriate discount rate to calculate the present value of those cash flows. Estimating the recoverable amount requires management to estimate the expected future cash flows from the plant and equipment or the related cash-generating unit.
PLANT AND EQUIPMENT
PLANT AND EQUIPMENT (CONT’D)
The carrying amount of the Group's motor vehicles under finance lease at the reporting date was RM1 (2019: RM1,459,000). The Group's motor vehicles under finance lease were pledged as a guarantee for related lease obligations (note 5 and 29(c)).
RIGHT-OF-USE ASSETS/ (LEASE LIABILITIES)
INTANGIBLE ASSETS
INTANGIBLE ASSETS (CONT’D)
Goodwill results from the reverse takeover of the Company and also from the business combination of certain subsidiaries in the renewable energy segment. The realizable value of this goodwill is determined on the basis of a calculation of the business value, using cash flow projections from financial budgets approved by the directors for a period of five years. ii) Goodwill allocated to subsidiaries in the sale of the renewable energy segment.
INVESTMENTS IN SUBSIDIARIES
INVESTMENTS IN SUBSIDIARIES (CONT’D)
The statutory financial year end of a newly acquired subsidiary was December 31 and did not coincide with the Group. The Group has control over the financial and operating policies of these entities and receives substantially all benefits related to their activities and net assets, with control acquired on April 30, 2013.
INVESTMENT IN AN ASSOCIATE
The financial statements of the subsidiary do not need to be audited as it was only incorporated on 24 January 2020. In the previous year, the Company increased its equity interest in Cypark Renewable Energy Sdn.
DEFERRED TAX ASSETS/(LIABILITIES)
DEFERRED TAX ASSETS/(LIABILITIES) (CONT’D)
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES (CONT’D)
CONTRACT ASSETS
OTHER CURRENT ASSETS
CASH AND BANK BALANCES
SHARE CAPITAL
SHARE CAPITAL (CONT’D)
REVERSE ACQUISITION RESERVE
EMPLOYEE SHARE OPTION RESERVE
EMPLOYEE SHARE OPTION RESERVE (CONT’D)
The fair values of stock options granted under ESOS were determined using a binomial option pricing model, taking into account the terms under which the instruments were granted. The expected life of stock options is based on historical data and is not necessarily indicative of exercise patterns that may occur.
TREASURY SHARES
It takes into account historical dividends, the covariance of the Company's stock price volatility, and any competitor group entities to predict the distribution of relative stock performance. Expected volatility reflects the assumption that historical share price volatility is indicative of future trends, which may also not necessarily be the actual outcome.
PERPETUAL SUKUK
PERPETUAL SUKUK (CONT’D)
LOANS AND BORROWINGS
LOANS AND BORROWINGS (CONT’D)
The term loans, where applicable, are secured by the following:. a) a bond on the fixed and floating costs on current and future assets of the funded projects;. The IMTNs are secured by the following:. a) the debenture which includes a first rank fixed and floating charge over the present and future assets of CREF;.
TRADE AND OTHER PAYABLES
REVENUE
COST OF OPERATIONS
FINANCE COSTS
PROFIT BEFORE TAX
PROFIT BEFORE TAX (CONT’D)
DIRECTORS’ REMUNERATIONS
TAX EXPENSE
EARNINGS PER SHARE
SIGNIFICANT RELATED PARTY TRANSACTIONS
COMMITMENTS AND CONTINGENT LIABILITIES
COMMITMENTS AND CONTINGENT LIABILITIES (CONT’D)
FINANCIAL INSTRUMENTS
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)
The group's and the company's exposure to liquidity risk stems primarily from mismatches in the maturities of financial assets and liabilities. The group's and company's exposure to interest rate risk stems primarily from their loans and loans at variable interest rates.
CAPITAL MANAGEMENT
At the reporting date, if interest rates were to increase or decrease by 50 basis points with all other variables held constant, the Group's and the Company's profit after tax would decrease or increase by RM1,174,000 and RM RM949,000 and RM76,000 ) respectively , arising from the outstanding floating rate term loans and borrowings as at the end of the reporting period. The sensitivity analysis is not representative of the inherent interest rate risk, as the year-end exposure does not reflect the exposure during the year.
ACQUISITION OF SUBSIDIARIES
SEGMENT ANALYSIS
SEGMENT ANALYSIS (CONT’D)
DIVIDENDS
SIGNIFICANT EVENT DURING THE REPORTING PERIOD
SUBSEQUENT EVENTS
ADOPTION OF NEW STANDARDS
ADOPTION OF NEW STANDARDS (CONT’D)
AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS
We, Tan Sri Razali Bin Ismail and Dato' Daud Bin Ahmad, being two of the directors of Cypark Resources Berhad, hereby declare that, in the opinion of the directors, the accompanying financial statements on pages 083 to 160 have been prepared. to give a true and fair view of the financial position of the Group and of the Company as at 31 October 2020 and the financial performance and cash flows of the Group and of the Company for the financial year subsequently ended, in accordance with Malaysian Financial Reporting Standards , International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.
Statutory Declaration
Statement by Directors
Analysis of Shareholdings
ANALYSIS OF SHAREHOLDINGS
SUBSTANTIAL SHAREHOLDERS’ INTERESTS
DIRECTORS’ INTERESTS
DIRECTORS’ INTERESTS (continued)
THIRTY LARGEST SECURITIES ACCOUNT HOLDERS
THIRTY LARGEST SECURITIES ACCOUNT HOLDERS (continued)
Notice of Annual General Meeting
AGENDA
- ORDINARY RESOLUTION NO. 1
- ORDINARY RESOLUTION NO. 2
- ORDINARY RESOLUTION NO. 3
- ORDINARY RESOLUTION NO. 4
- ORDINARY RESOLUTION NO. 5
- ORDINARY RESOLUTION NO. 5
The Board of Directors of the Company through its Nomination Committee, following the independence of Dato' Dr. to have assessed. The proposed Resolution 16, if adopted, will give the Directors the authority to allot and issue new CRB Shares under the DRS until its closing. of the next General Meeting.
CYPARK RESOURCES BERHAD
The instrument appointing a power of attorney and the power of attorney or other authority (if any) under which it is signed or a duly certified true copy of that power or authority shall be deposited at the registered office of the company at Level 7, Menara Milenium, Jalan Damanlela , Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan or submitted by fax at and/or email to [email protected] not less than forty-eight (48) hours before the time of holding the meeting or any postponement thereof. The filing of the proxy form will not preclude a member/shareholder from attending and voting by distance at the general meeting if a member/shareholder subsequently so desires, provided that a written notice of termination of proxy is given to the Company and deposited. at CRB's registered office at Level 7, Menara Milenium, Jalan Damanlela, Damansara Heights, 50490 Kuala Lumpur not less than twenty-four (24) hours before the time fixed for holding the meeting or any adjournment thereof.
ANNUAL REPORT 2020
ENERGISING A
SUSTAINABLE FUTURE
