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197301001881 (15379-V)

www.ecofirst.com.my

A-19, Menara Allianz Sentral 203 Jalan tun Sambanthan Kl Sentral 50470 Kuala lumpur, Malaysia

t: (+603) 2725 1888 | F: (+603) 2725 1777197301001881 (15379-V)

CONTENTS 1 Our Vision & Mission / Corporate Information

2 Notice of Forty-Seventh Annual General Meeting

7 5-Year Group Financial Highlights

8 Chairman’s Statement

11 Board of Directors

12 Directors’ Profile

19 Management Team

22 Group Chief Executive Officer’s Management Discussion and Analysis

26 Sustainability Statement

39 Corporate Governance Overview Statement

49 Statement of Directors’ Responsibility in Preparing the Annual Financial Statements

50 Additional Compliance Information

51 Audit Committee Report

53 Statement on Risk Management and Internal Control

56 Financial Statements

144 Particulars of Group Properties

146 Analysis of Shareholdings

Form of Proxy

CORPORATE INFORMATION

OUR vIsIONWe aspire to be the leading, successful pioneers and builders of innovative businesses in the region.

OUR MIssIONLeveraging on the experience and expertise amassed over the years and constantly acquiring new knowledge, we strive to achieve successes in our business undertakings. We are committed to delivering exceptional value to our customers, business partners, shareholders and other stakeholders.

DATO’ syED ARIFF FADzIllAh BIN syED AwAllUDDINBoard of Directors Chairman/ Independent Non-Executive Director

DATO’ (DR) TEOh sENG FOOPresident/ Executive Director

DATO’ TIONG KwING hEEGroup Chief Executive Officer/ Executive Director

DATO’ AMOs sIEw BOON yEONGIndependent Non-Executive Director

DATO’ BOEy ChIN GANIndependent Non-Executive Director

DATUK NG hOCK hENGIndependent Non-Executive Director

DATO’ TEOh sENG KIANAlternate Director to Dato’ (Dr) Teoh Seng Foo

COMPANy sECRETARIEs

Mr Yeoh Chong Keat SSM PC NO. 201908004096 (MIA 2736)Ms Tan Fong Shian SSM PC NO. 201908004045 (MAICSA 7023187)

AUDITORs

Russell Bedford LC & Company Suite 37, Level 21, Mercu 3, No. 3, Jalan Bangsar KL Eco City, 59200 Kuala Lumpur, Malaysia

shARE REGIsTRAR

Boardroom Share Registrars Sdn. Bhd. Registration No: 199601006647 (378993-D)

11th Floor, Menara Symphony No.5, Jalan Prof. Khoo Kay Kim, Seksyen 13 46200 Petaling Jaya, Selangor, Malaysia Tel : +603-7890 4700 Fax : +603-7890 4670www.boardroomlimited.com

REGIsTERED OFFICE

Suite 11.1A, Level 11, Menara Weld, 76, Jalan Raja Chulan, 50200 Kuala LumpurTel : +603-2031 1988Fax : +603-2031 9788 / 6733

sTOCK ExChANGE lIsTING

Bursa Malaysia Securities BerhadMain Market

wEBsITE

www.ecofirst.com.my

ECOFIRST CONSOlIDATED BHD 2 ANNuAl REPORT 2020

NOTICE OF FORTy-sEvENThANNUAl GENERAl MEETING

NOTICE IS HEREBY GIVEN that the Forty-Seventh Annual General Meeting of the Company will be held at Ballroom 1, Level 5, Summit Hotel Subang USJ, Persiaran Kewajipan USJ 1, 47600 UEP Subang Jaya, Selangor Darul Ehsan on Tuesday, 27 October 2020 at 3.00 p.m. to transact the following business:-

AGENDA

ORDINARY BuSINESS:

1. To receive the Audited Financial Statements for the financial year ended 31 May 2020 together with the Directors’ and Auditors’ Reports thereon.

(See Explanatory Notes)

2. To approve the payment of Directors’ fees amounting to RM256,000.00 for the financial year ended 31 May 2020.

(Resolution 1)

3. To approve the payment of Directors’ benefits and allowances of up to RM60,000.00 from 28 October 2020 until the conclusion of the next annual general meeting of the Company.

(Resolution 2)

4. To re-elect the following Directors who retire by rotation pursuant to the Clause 110 of the Company’s Constitution:-

4.1 Dato’ Tiong Kwing Hee4.2 Dato’ Boey Chin Gan

(Resolution 3)(Resolution 4)

5. To re-appoint Messrs Russell Bedford LC & Company as the Company’s Auditors for the ensuing year and to authorise the Directors to fix their remuneration.

(Resolution 5)

SPECIAl BuSINESS:

To consider and if thought fit, to pass, with or without modifications, the following resolutions:- 6. ORDINARY RESOluTION

Retention of Dato’ Syed Ariff Fadzillah Bin Syed Awalluddin as Independent Non-Executive Director

“THAT Dato’ Syed Ariff Fadzillah Bin Syed Awalluddin be and is hereby retained and continue to act as an Independent Non-Executive Director of the Company until the conclusion of the next Annual General Meeting, subject to the provisions of the relevant regulatory authorities.”

(Resolution 6)

7. ORDINARY RESOluTIONRetention of Dato’ Amos Siew Boon Yeong as Independent Non-Executive Director

“THAT Dato’ Amos Siew Boon Yeong be and is hereby retained and continue to act as an Independent Non-Executive Director of the Company until the conclusion of the next Annual General Meeting, subject to the provisions of the relevant regulatory authorities.”

(Resolution 7)

8. ORDINARY RESOluTIONRetention of Dato’ Boey Chin Gan as Independent Non-Executive Director

“THAT, subject to the passing of Resolution 4, Dato’ Boey Chin Gan be and is hereby retained and continue to act as an Independent Non-Executive Director of the Company until the conclusion of the next Annual General Meeting, subject to the provisions of the relevant regulatory authorities.”

(Resolution 8)


9. ORDINARY RESOluTION Authority for Directors to Issue Shares

“THAT pursuant to Sections 75 and 76 of the Companies Act 2016 and subject to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and the approvals of the relevant governmental and/or regulatory authorities (if any), the Directors be and are hereby empowered to allot and issue new shares in the Company, at any time to such persons and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion, deem fit, provided that the aggregate number of shares issued pursuant to this resolution does not exceed 10% of the total number of issued shares of the Company at the time of issue; AND THAT the Directors be also empowered to obtain the approval of Bursa Securities for the listing of and quotation for the additional shares so issued; AND THAT such authority shall commence immediately upon the passing of this resolution and continue to be in force until the conclusion of the next Annual General Meeting of the Company.”

(Resolution 9)

10. ORDINARY RESOluTIONProposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature (“Proposed RRPT Mandate”)

“THAT authority be and is hereby given in line with Paragraph 10.09 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad for the Company and/or its subsidiaries to enter into any of the transactions falling within the types of the Recurrent Related Party Transactions, particulars of which are set out in Part A of the Circular/Statement to Shareholders dated 28 September 2020, with the Mandated Related Party as described in the said Circular/Statement, provided that such recurrent transactions are of revenue or trading nature, which are necessary for the day-to-day operations of the Company and/or its subsidiaries within the ordinary course of business of the Company and/or its subsidiaries, made on an arm’s length basis and on normal commercial terms which are generally available to the public and are not detrimental to the minority shareholders of the Company;

AND THAT such authority shall commence immediately upon the passing of this resolution until:-

i. the conclusion of the next Annual General Meeting (“AGM”) of the Company at which time the authority shall lapse, unless by Ordinary Resolution passed at a general meeting whereby the authority is renewed; or

ii. the expiration of the period within which the next AGM of the Company after that date is required to be held pursuant to Section 340(2) of the Companies Act 2016 (“the Act”) (but must not extend to such extension as may be allowed pursuant to Section 340(4) of the Act); or

iii. revoked or varied by a resolution passed by the shareholders of the Company at a general meeting,

whichever is earlier.

AND FURTHER THAT the Directors of the Company be and are hereby authorised to do all acts, deeds and things as may be deemed fit, necessary, expedient and/or appropriate in order to implement the Proposed RRPT Mandate with full power to assent to all or any conditions, variations, modifications and/or amendments in any manner as may be required by any relevant authorities or otherwise and to deal with all matters relating thereto and to take all such steps and to execute, sign and deliver for and on behalf of the Company all such documents, agreements, arrangements and/or undertakings, with any party or parties and to carry out any other matters as may be required to implement, finalise and complete, and give full effect to the Proposed RRPT Mandate in the best interest of the Company.”

(Resolution 10)

NOTICE OF FORTy-sEvENTh ANNUAl GENERAl MEETING

(CONT’D)


11. ORDINARY RESOluTIONProposed Renewal of Share Buy-Back Authority

“THAT subject to the provisions of the Companies Act 2016 (“the Act”), the Company’s Constitution, the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and the approvals of all relevant governmental and/or regulatory authorities, the Company be and is hereby authorised to purchase such number of ordinary shares of the Company as may be determined by the Directors of the Company from time to time through Bursa Securities, upon such terms and conditions as the Directors may deem fit in the best interest of the Company provided that:-

i. the aggregate number of shares to be purchased does not exceed 10% of the total number of issued shares of the Company (“Purchased Shares”) at the point of purchase(s);

ii. the maximum funds to be allocated by the Company for the purpose of purchasing the Purchased Shares shall not exceed the retained profits of the Company at the time of the purchase(s);

iii. the authority conferred by this resolution will commence immediately upon passing of this resolution and will continue to be in force until;

a. the conclusion of the next Annual General Meeting (“AGM”) of the Company at which time the authority shall lapse, unless by Ordinary Resolution passed at a general meeting, whereby the authority is renewed; or

b. the expiration of the period within which the next AGM of the Company after that date is required to be held pursuant to Section 340(2) of the Act (but must not extend to such extension as may be allowed pursuant to Section 340(4) of the Act); or

c. revoked or varied by a resolution passed by the shareholders of the Company at a general meeting,

whichever is earlier.

iv. upon the completion of the Proposed Renewal of Share Buy-Back Authority, the Directors be and are hereby empowered to deal with the shares so purchased in the following manner:-

a. to cancel such shares; b. to retain such shares as treasury shares (of which may be dealt with in accordance

with Section 127(7) of the Act); c. to retain part of such shares as treasury shares and cancel the remainder; and/or d. in any other manner as may be prescribed by the Act, the Main Market Listing

Requirements of Bursa Securities and any other relevant authorities for the time being in force.

AND THAT authority be and is hereby unconditionally and generally given to the Directors of the Company, to take all such steps as are necessary or expedient to implement, finalise and give full effect to the purchase of the Company’s own shares, with full power to assent to any conditions, modifications, variations and/or amendments as may be imposed by the relevant authorities and with full power to do all such acts and things thereafter in accordance with the Act, the provisions of the Company’s Constitution and the guidelines issued by Bursa Securities and any other relevant authorities.”

(Resolution 11)

NOTICE OF FORTy-sEvENTh ANNUAl GENERAl MEETING(CONT’D)


BY ORDER OF THE BOARD

YEOH CHONG KEAT SSM PC NO. 201908004096 (MIA 2736)TAN FONG SHIAN SSM PC NO. 201908004045 (MAICSA 7023187) Secretaries

Kuala Lumpur 28 September 2020

Notes relating to Proxy:-

(i) A member of the Company entitled to attend and vote at this meeting is entitled to appoint two (2) or more proxies to attend and vote in his stead. A proxy may but need not be a member of the Company. Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportion of his shareholdings to be represented by each proxy.

(ii) Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint two (2) or more proxies in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account.

(iii) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one (1) securities account (“Omnibus Account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each Omnibus Account it holds.

(iv) Only a depositor whose name appears in the Company’s Record of Depositors as at 20 October 2020 shall be regarded as a member and entitled to attend, speak and vote at this meeting or appoint proxy(ies) to attend and vote on his/her behalf.

(v) The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing or if the appointer is a corporation, either under seal or under the hand of an officer or attorney duly authorised.

(vi) The original instrument appointing a proxy and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy of that power or authority shall be deposited at the Registered Office of the Company at Suite 11.1A, Level 11, Menara Weld, 76 Jalan Raja Chulan, 50200 Kuala Lumpur not less than forty-eight (48) hours before the time for holding the meeting or adjourned meeting.

(vii) The Personal Data Protection Act 2010, which regulates the processing of personal data in commercial transactions, applies to the Company. By providing to us or our agents your personal data which may include your name, contact details and mailing address, you hereby consent, agree and authorise the processing and/or disclosure of any personal data of or relating to you for the purposes of issuing the notice of this meeting and convening the meeting, including but not limited to preparation and compilation of documents and other matters, whether or not supplied by you. You further confirm to have obtained the consent, agreement and/or authorisation of all persons whose personal data you have disclosed and/or processed, in connection with the foregoing.

NOTICE OF FORTy-sEvENTh ANNUAl GENERAl MEETING

(CONT’D)


Explanatory Notes:

1. Audited Financial Statements for the financial year ended 31 May 2020 (“AFS”) The AFS is meant for discussion only as under the provisions of Section 340(1)(a) of the Companies Act 2016 (“the

Act”) and Clause 72 of the Company’s Constitution, the AFS do not require the formal approval of shareholders. Hence the matter will not be put forward for voting.

2. Ordinary Resolutions 6, 7 & 8 – Retention as Independent Non-Executive Directors Dato’ Syed Ariff Fadzillah Bin Syed Awalluddin (“Dato’ Syed Ariff”), Dato’ Amos Siew Boon Yeong (“Dato’ Amos”)

and Dato’ Boey Chin Gan (“Dato’ Boey”), who have served the Board as Independent Non-Executive Directors for a tenure of exceeding nine (9) years, will be retained as Independent Non-Executive Directors if the Ordinary Resolutions 6, 7 & 8 are passed. The Board, after having assessed the independence of Dato’ Syed Ariff, Dato’ Amos and Dato’ Boey, considers them to be independent and recommends that Dato’ Syed Ariff, Dato’ Amos and Dato’ Boey be retained as Independent Non-Executive Directors of the Company. The details of their assessment and justifications are contained in the Corporate Governance Report 2020.

3. Ordinary Resolution 9 - Authority for Directors to Issue Shares The proposed Ordinary Resolution 9, if passed, will renew the authority given to the Directors of the Company to allot

and issue new shares in the Company pursuant to Sections 75 and 76 of the Act (“General Mandate”), provided that the number of shares issued pursuant to this General Mandate, when aggregated with the number of shares issued during the preceding twelve (12) months, does not exceed 10% of the total number of issued shares of the Company at the time of issue. This General Mandate, unless revoked or varied at a general meeting, will expire at the conclusion of the next annual general meeting (“AGM”) of the Company.

The purpose to seek the General Mandate is to enable the Company to raise funds expeditiously for the purpose of funding future investment, working capital and/or acquisition(s) without having to convene a general meeting to seek shareholders’ approval when such opportunities or needs arise.

The Company did not issue any new shares pursuant to the general mandate obtained at the Forty-Sixth AGM of the Company held on 24 October 2019.

4. Ordinary Resolution 10 – Proposed RRPT Mandate Shareholders are advised to refer to the Proposed RRPT Mandate set out in Part A of the Circular/Statement dated

28 September 2020, which is enclosed together with the Annual Report 2020.

5. Ordinary Resolution 11 – Proposed Renewal of Share Buy-Back Authority Shareholders are advised to refer to the Proposed Renewal of Share Buy-Back Authority set out in Part B of the

Circular/Statement dated 28 September 2020, which is enclosed together with the Annual Report 2020.

********************************************************************************************* STATEMENT ACCOMPANYING NOTICE OF FORTY-SEVENTH ANNuAl GENERAl MEETING

No individual is standing for election as Director at the forthcoming Forty-Seventh Annual General Meeting of the Company.

NOTICE OF FORTy-sEvENTh ANNUAl GENERAl MEETING(CONT’D)


5-yEAR GROUP FINANCIAl hIGhlIGhTs

2016

121.2

2016

16.2

2016

2.22

2016

230.3

2017

127.2

2017

16.1

2017

2.03

2017

265.4

2018

181.4

2018

46.3

2018

5.76

2018

311.7

2019

221.3

2019

22.6

2019

2.82

2019

331.3

2020

150.

0

2020

17.1

2020

2.15

2020

347.

2

FINANCIAl YEAR ENDED 31 MAY 2017 2018 2016 (Restated)* (Restated)* 2019 2020

Revenue (RM’ million) 121.2 127.2 181.4 221.3 150.0

Profit Before Tax & Non-controlling Interests (RM’ million) 20.2 20.4 52.0 31.6 24.3

Profit After Tax (RM’ million) 16.1 16.7 46.2 23.0 17.1

Profit Attributable to Owners of the Company (RM’ million) 16.2 16.1 46.3 22.6 17.1

Total Assets Employed (RM’ million) 530.2 758.8 716.6 706.7 706.9

Net Borrowings (RM’ million) 98.0 227.7 196.9 122.6 137.7

Shareholders’ Fund (RM’ million) 230.3 265.4 311.7 331.3 347.2

Total Equity (RM’ million) 244.0 279.7 325.9 346.0 361.9

Return on Equity (%) 7.0 6.5 14.8 7.0 4.9

Gearing Ratio 0.29 0.45 0.38 0.26 0.28

Basic Earnings Per Share (sen) 2.22 2.03 5.76 2.82 2.15

Net Assets Per Share (RM) 0.30 0.33 0.39 0.41 0.43

* - The comparative for financial year ended 31 May 2017 and 2018 have been restated following the first time adoption of Malaysian Financial Reporting Standards.

Revenue (RM'mil)

Profit Attributable To Owners Of The Company (RM’mil)

Basic Earnings Per Share (sen)

Shareholders’ Fund (RM’mil)


Dear Esteemed shareholders,

As the Chairman of EcoFirst Consolidated Bhd (EcoFirst / the Group), I hereby represent the Board of Directors to showcase to you the annual report and audited financial statements of the Group for the financial year ended 31 May 2020 (FY2020).

As always, the broad overview presented in this Chairman’s Statement is complemented by the detailed report of the Group’s individual business units, financial performance, risk factors and growth outlook contained within the Management Discussion and Analysis section.

ChAIRMAN’s sTATEMENT


ECONOMIC OvERvIEw

2019 witnessed a deceleration of economic growth globally, where Gross Domestic Product (GDP) growth slowed to a pedestrian pace of 2.5% in 2019 compared to 3.0% a year ago, according to The World Bank. The declining expansion rate was triggered by trade tensions between China and US as well as the disruption on trade supply chains, which led to volatile market sentiments.

The Coronavirus Disease (COVID-19) pandemic worsened the situation, where its highly-infectious nature caused major disruptions in the global economy in the first half of 2020. This resulted in shrinking GDP across major developed countries, where USA, China and Germany reported GDP contractions of 5.0%, 6.8% and 2.2% respectively in the first quarter of 2020.

Malaysia mirrored the global trend in 2019, where GDP growth moderated to 4.3% in 2019 from 4.7% in 2018. Bank Negara Malaysia (BNM) attributed this mainly to weaker external demand and domestic investment in the country, aggravated by disruptions in supply chains, especially in the commodity sector.

The far-reaching effects of COVID-19 prompted the Malaysian Government to restrict non-essential business activities by enforcing a Movement Control Order from 18 March 2020 to 3 May 2020. This was followed by the Conditional MCO (CMCO) from 4 May 2020 to 9 June 2020 where non-essential activities were allowed to resume upon adherence to strict Standard Operating Procedures (SOPs), and Recovery MCO (RMCO) from 10 June 2020 to 31 August 2020.

Predictably, the systematic halt across most businesses wielded a devastating effect on Malaysia, with the country’s GDP contracting by 17.1% in the second quarter of the year, a steep fall from the 0.7% GDP growth reported in the first quarter of 2020. In particular, the construction sector noted the largest decline at 44.5% as the MCO brought construction projects to a standstill.

The property sector remained challenging in the year under review, where the prevailing market uncertainty was compounded by concerns on affordability, rising unemployment and strict financing guidelines.

Similarly, the retail sector also underwent tough circumstances, especially as the Government had regulated operating hours and imposed strict SOPs on retail outlets, which changed consumer behaviour in the various stages of the MCO. Retail Group Malaysia (RGM) announced a 11.4% contraction in retail sales for the first quarter of 2020, due to consumers’ altered behaviour and a drastic drop in foreign tourists.

BUsINEss REvIEw

While the external circumstances undoubtedly tested our mettle, I am pleased to report that EcoFirst remained committed to its pledge to stakeholders during this time.

For our buyers, we ensured the successful completion of the first phase of our flagship mixed development, namely Liberty @ Ampang Ukay.

Not only that, EcoFirst managed to stay profitable in the year under review, posting a net profit of RM17.1 million in FY2020, on a revenue base of RM150.0 million.

In undertaking these measures, we at EcoFirst demonstrated our ability to stay on course to strengthen our business sustainability, amidst an ever-evolving environment.

ECONOMIC OUTlOOK

The International Monetary Fund (IMF) has predicted for global GDP to contract by 4.9% by the end of 2020, as the rampage of COVID-19 continues to impede economic indicators. The estimates consider the persistent social distancing practices, potential negative impact on productivity, damage to supply chains, and lockdown measures particularly for countries battling to control infection rates.

Closer to home, BNM has projected for Malaysia to record GDP growth between -2% and 0.5% in 2020. This remains highly dependent on the severity, mutation and duration of the disease, as well as contingency measures to combat its spread. Yet, the effectiveness of the MCO in reducing the number of active COVID-19 cases during the RMCO is anticipated to be the precursor to the business activities gradually resuming.

The construction sector is poised to recover, after on-site operations were permitted to recommence during the CMCO on strict condition of adherence to stipulated SOPs. Also, the property sector is expected to be buoyed by the Government’s measures, including reducing overnight policy rates to ease financing, and undertaking the Home Ownership Campaign and Youth Home Ownership Schemes to enable target audiences to purchase their homes.

Moving on to the retail sector, RGM expects the industry begin its recovery post-MCO, with a moderate decline in sales of 3.5% in the third quarter of 2020, followed by 1.5% in the fourth quarter of 2020. Paired with the ongoing stimulus packages by the Government, such as comprehensive stimulus packages worth RM290 billion

ChAIRMAN’s sTATEMENT(CONT’D)


including the “Prihatin Rakyat Economic Stimulus” and the “Penjana Rakyat Economic Recovery Plan,” private consumption is anticipated to aid the recovery in the retail sector.

APPRECIATION

I would like to take this opportunity to acknowledge the continuous efforts and dedication of Ecofirst management team and entire workforce in enabling the Company to weather this challenging period.

I would also like to extend my utmost gratitude to our business partners, associates, suppliers, regulators, authorities as well as customers for believing in the vision and direction of the company.

With your continued support, EcoFirst will maintain its trajectory going forward.

Sincerely,DATO’ syED ARIFF FADzIllAh BIN syED AwAllUDDINChairman

ChAIRMAN’s sTATEMENT(CONT’D)


seated from the left to right :-

standing from the left to right :-

DATO’ TIONG KWING HEE

DATO’ SYED ARIFF FADZILLAH BIN SYED AWALLUDDIN

DATO’ (DR) TEOH SENG FOO

DATO’ TEOH SENG KIAN

DATO’ BOEY CHIN GAN

DATUK NG HOCK HENG

DATO’ AMOS SIEW BOON YEONG

BOARD OF DIRECTORs


Board Committee:

• Chairman of the Nominating Committee• Member of Governance & Risk Management

Committee• Member of the Remuneration Committee • Member of the Audit Committee

Education & Qualification:

• Bachelor of Arts degree in History from University Malaya, Malaysia

• Diploma of Development Administration from London School of Economics

• Master of Arts in International Relations from New York University

DATO’ syED ARIFF FADzIllAh BIN syED AwAllUDDINChairman / Independent Non-Executive Director

Aged Gender Nationality77 Male Malaysian

Date of Appointment & Work Experience:

Dato’ Syed Ariff Fadzillah Bin Syed Awalluddin was appointed to the Board on 27 January 2006. He was re-designated to Chairman/Independent Non-Executive Director on 1 December 2009.

He started his career as an Assistant District Officer in Kulim, Kedah in 1967 and was an Assistant Secretary in the Public Service Commission, Kuala Lumpur between 1970 and 1972 before being transferred to the Ministry of Foreign Affairs.

Prior to retiring in November 2001, he served as the Ambassador of Malaysia to the Kingdom of Thailand from 1996 to 2001, Ambassador to the Republic of Korea with joint accreditation to Mongolia (1992 to 1995) and Ambassador of Malaysia to Fiji with concurrent accreditations to Tuvalu, Tonga, Western Samoa, Kiribati and Nauru (1998 and 1991). His other foreign assignments include postings to Indonesia, Libya and Canada.

He was also the Deputy Permanent Representative of the Permanent Mission of Malaysia to the United Nations between 1982 and 1986. From 1991 to 1992, he served as the Undersecretary of the Ministry of Foreign Affairs in charge of Southeast Asia and South Pacific.

Attendance at Board Meetings:

He has attended all the five (5) Board meetings held during the financial year ended 31 May 2020.

Other Public Company Directorship & Offices:

He also serves as Independent Non-Executive Director of Bermaz Auto Berhad which is listed on the Main Market of Bursa Malaysia Securities Berhad.

He has no family relationship with any other Director and/ or major shareholder of the Company and has not entered into any transaction, whether directly or indirectly, which has a conflict of interest with the Company. He has no convictions for offences within the past five (5) years nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.

DIRECTORs’ PROFIlE


Board Committee:

• Chairman of the Governance & Risk Management Committee


• Honorary Doctorate in Business Administration by University of Abertay Dundee, United Kingdom

• Chartered Accountant of the Malaysian Institute of Accountants

• Associate member of Chartered Management Accountant

• Chartered Global Management Accountant • Fellow Member of the Chartered Institute of

Management Accountants, United Kingdom• Patron of the University of Abertay Foundation based

in United Kingdom

DATO’ (DR) TEOh sENG FOOPresident / Executive Director



Dato’ (Dr) Teoh Seng Foo was appointed to the Board on 5 May 1997. He was re-designated from the position of an Executive Deputy Chairman to President/Non-Independent Executive Director on 1 December 2009.

An accountant by profession, Dato’ (Dr) Teoh has wide corporate experience, having held senior management positions in multinational corporations such as Intel Technology, Woodward & Dickerson Inc., Coopers & Lybrand (now Pricewaterhouse Coopers) and Esquel Group.




Dato’ (Dr) Teoh Seng Foo is brother to Mr. Teoh Seng Aun and Dato’ Teoh Seng Kian (who is also his alternate director), who are major shareholders of the Company. Apart from the above, he has no other family relationship with any other Director and/or major shareholder of the Company

He has not entered into any transaction, whether directly or indirectly, which has a conflict of interest with the Company, other than those disclosed in the notes accompanying the financial statements, and has no convictions for offences within the past five (5) years nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.

DIRECTORs’ PROFIlE(CONT’D)


Board Committee:

• Chairman of the Employees’ Share Option Scheme Committee


• Bachelor of Arts (Hons) majoring in Business Administration from Hanover College, United States of America

• Masters of Business Economics from Miami University, United States of America


Dato’ Tiong Kwing Hee, first joined the Board as an Alternate Director on 18 September 2008 and subsequently appointed as Executive Director/Chief Executive Officer on 2 January 2009. He is currently the Group Chief Executive Officer / Executive Director of the Company.

He started his career with Sim Lim Holdings Berhad in 1983 as Executive Officer in charge of corporate finance and was promoted to Manager in 1984 and General Manager in 1985. He left Sim Lim Holdings Berhad in 1987 following his venture into the timber industry and became a shareholder cum director of marketing in Wansuria Sdn Bhd. He was a substantial shareholder in London Pacific Ltd, a company listed on the New Zealand Stock Exchange between 1988 and 1994.

In 1994, he left the timber industry when he sold off his stake in Wansuria Sdn Bhd. In 1995, he joined D-Systems Pte Ltd, a Singapore based company with exclusive distribution rights of drywall system from United States of America for Asia Pacific region, as the Chief Executive Officer. In 1997, he was head hunted on a two (2) years contract as an Executive Director of a listed company to prepare that company for a corporate restructuring.

During the course of his career, he has been directly involved in various industrial sectors including corporate

finance, financial services, manufacturing, plantations, property, construction, education, leisure, entertainment and mineral resources. He has extensive hands-on experience, knowledge and exposure in international business, corporate planning, restructuring and corporate turnaround.




Dato’ Tiong is also currently the Managing Director and major shareholder of Mercury Industries Berhad and a Non-Independent Non-Executive Director of Meridian Berhad, both listed on the Main Market of Bursa Malaysia Securities Berhad.

He has no family relationship with any other Director and/or major shareholder of the Company. He has not entered into any transaction, whether directly or indirectly, which has a conflict of interest with the Company, other than those disclosed in the notes accompanying the financial statements, and has no convictions for offences within the past five (5) years nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.

DATO’ TIONG KwING hEEGroup Chief Executive Officer / Executive Director




Board Committee:

• Chairman of the Audit Committee• Member of the Remuneration Committee


• Chartered Accountant with the Malaysian Institute of Accountants

• Member of the Malaysian Institute of Certified Public Accountants

• Associate member of the Chartered Tax Institute of Malaysia


Dato’ Amos Siew Boon Yeong was appointed to the Board on 27 October 2005.

He started his auditing career and professional training with the accounting firm, Coopers & Lybrand (now PricewaterhouseCoopers) in 1978 before establishing his own practice in 1988. He is currently the managing partner of the public accounting firm, Messrs. Siew Boon Yeong & Associates. He has vast experiences in auditing, tax planning, corporate finance and financial planning and has been involved in numerous assignments on mergers and acquisitions, debt restructuring and liquidation.




He is also an Independent Non-Executive Director of SEG International Bhd which is listed on the main market of Bursa Malaysia Securities Berhad.

He has no family relationship with any other Director and/or major shareholder of the Company. He has not entered into any transaction, whether directly or indirectly, which has a conflict of interest with the Company and has no convictions for offences within the past five (5) years nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.

DATO’ AMOs sIEw BOON yEONGIndependent Non-Executive Director




Board Committee:

• Member of the Governance & Risk Management Committee

• Member of the Audit Committee • Member of the Nominating Committee


• Bachelor of Arts (Honours) from Universiti Kebangsaan Malaysia


Dato’ Boey Chin Gan was appointed to the Board on 1 April 2009.

Dato’ Boey is very active in the social economic development of the country. He has served as the Press Secretary to the Minister of Housing and Local Government of Malaysia for eleven (11) years from 1993 to 2004. In 2004, Dato’ Boey served as a Kedah State Assemblyman (for 2004-2008 terms). Dato’ Boey has vast experiences and extensive knowledge in administrative and strategic planning by virtue of his long service in government sectors.


He has attended all five (5) Board meetings held during the financial year ended 31 May 2020.



DATO’ BOEy ChIN GANIndependent Non-Executive Director




Board Committee:

• Chairman of the Remuneration Committee• Member of the Nominating Committee


• Bachelor of Economics with double majors in Banking & Accountancy from Monash University Australia

• Bachelor of Law from Monash University • Masters of Law (Distinction) from Monash University


Datuk Ng Hock Heng was appointed to the Board on 4 March 2015.

He started his career in KPMG (Australia) as a Tax Consultant before advancing his career in Deloitte Touche Totmatsu (Australia & Hong Kong) as a Senior Tax Consultant in year 1993. In 1995, he joined Zaid Ibrahim & Co. and became a partner in 1999.

Previously, he also was an Advocate and Solicitor of the High Court of Malaya and a Registered Foreign Lawyer of the Law Society of New South Wales.


He has attended all five (5) Board meetings held during the financial year ended 31 May 2020.


He is currently the Executive Director of Zico Holdings Inc.


DATUK NG hOCK hENGIndependent Non-Executive Director





• Bachelor of Engineering (Mechanical) from Australia


Dato’ Teoh Seng Kian was appointed as Alternate Director to Dato’ (Dr) Teoh Seng Foo, the President, on 1 December 2009.

He started his career with an Australian company specializing in manufacturing of building materials. Upon returning to Malaysia, he served as a director in a company involved in quarrying and infrastructure construction.


He has attended one (1) Board meeting held during the financial year ended 31 May 2020

Other Public Company Directorship & Offices

He is a major shareholder of the Company and is deemed to have an interest in all the shares held by the Company in the subsidiaries by virtue of his substantial interest in shares of the Company. He is brother to Dato’ (Dr) Teoh Seng Foo, the President of the Company and Mr. Teoh Seng Aun, who is a major shareholder of the Company. Apart from the above, he has no other family relationship with any other Director and/or major shareholder of the Company.

He has not entered into any transaction, whether directly or indirectly, which has a conflict of interest with the Company, other than those disclosed in the notes accompanying the financial statements, and has no convictions for offences within the past five (5) years nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.

DATO’ TEOh sENG KIANAlternate Director to Dato’(Dr.) Teoh Seng Foo




JANICE LOH CHUEN YANN

Head, Properties and Development

SALLY TANG General Manager, South City Plaza


• Quality Management System and Assessment from University of Portsmouth, United Kingdom

Date of Appointment & work Experience:

Ms Janice Loh was appointed as Head of Properties and Development on 13 August 2018. She previously served as General Manager, Properties and Marketing since 9 February 2018 and was General Manager, Marketing and Retail Leasing since 1 June 2016.

Her career in the property industry began with MBF Property Services, City Square and Empire Tower in Jalan Tun Razak as well as Rivercity in Jalan Ipoh under Low Yat Group. Since then, she has served as Director of Leasing and Marketing for Hatten Group retail properties in Malacca including Dataran Pahlawan and Hatten Square.

With thirty-eight (38) years of working experience, she has also served at Henry Butcher Retail, in charge of leasing, marketing, promotion, management and retail operation for Seremban Prima. Prior to joining EcoFirst, she was Vice President of Retail Leasing for See Hoy Chan Group, the Starling Mall.

Ms Janice oversees the overall project development, sales marketing and sales administration, corporate and customer service as well as property management for the Group.

Her role is to drive, formulate, implement and establish policies that promote the company’s culture and vision through its operations. She is also responsible for driving efficiency by maintaining control of diverse business operations of sales and marketing, strategic leasing related transactions and property related matters.


She has no family relationship with any other Director and/or major shareholder of the Company.

She has not entered into any transaction, whether directly or indirectly, which has a conflict of interest with the Company, other than those disclosed in the notes accompanying the financial statements, and has no convictions for offences within the past five (5) years nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.


• Diploma in Computer Science and Information Technology from Institute of Technology, Perak


Ms Sally Tang was appointed as General Manager, South City Plaza on 1 January 2015 and previously served as the Complex Manager for South City Plaza since 1 July 2013. Prior to joining EcoFirst, Ms. Tang served with the Low Yat Group, Luxor Properties and Henry Butcher Lim & Long Sdn. Bhd.

With eighteen (18) years of extensive working experience in marketing, business development, property management, sales and leasing of residential and commercial properties, advertising and promotions, and customer relations, Ms Tang is the main driver of South City Plaza’s sales revenue generation.

Ms Tang is responsible for the group operations of EcoFirst’s retail complex of South City Plaza, encompassing a net lettable area of approximately 800,000 sq.ft., located in Seri Kembangan, Selangor. Her responsibilities include overseeing the daily operations, marketing, advertising and promotions, tenancy and maintenance for the whole South City Plaza.


She has no family relationship with any other Director and/or major shareholder of the Company. She has not entered into any transaction, whether directly or indirectly, which has a conflict of interest with the Company, other than those disclosed in the notes accompanying the financial statements, and has no convictions for offences within the past five (5) years nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.

Aged Gender Nationality58 Female Malaysian


MANAGEMENT TEAM


Tan Hun Lim Financial Controller


• Chartered Accountant with the Association of Chartered Certified Accountants, United Kingdom

• Member of the Malaysian Institute of Accountants• Associate member of the Chartered Tax Institute of

Malaysia


Mr Tan Hun Lim was appointed as Financial Controller on 2 January 2018. With twenty-five (25) years of working experience in several listed entities, he specialises in corporate planning, taxation, accounting and finance.

His professional career started in banking and auditing firms and thereafter served several property development companies namely Europlus Berhad, Talam Corporation Berhad and Country Heights Holdings Berhad.

Mr. Tan oversees the accounting and finance operations of EcoFirst. He has been entrusted to undertake the full spectrum of accounting and finance functions of the Group covering financial reporting, taxation, financial planning and management, corporate finance and treasury.




• Bachelor of Development Science degree from the National University of Malaysia

• Certificate in Personnel Management from Malaysian Institute of Personnel Management


Ms Chew Yet Gor was appointed as the EcoFirst’s Human Resource and Administration Manager on 1 November 2010 and began her career in human resources after obtaining her Development Science degree from the National University of Malaysia.

Prior to joining the Group, she served at a manufacturing company as its Human Resource and Administration Manager. She has twenty-nine (29) years of working experience in the human resource and administration field.

Ms Chew is responsible for all human resources management and administration matters for EcoFirst, including staff recruitment, payroll administration, compensation and benefits, training and development, performance management, human resource policies and procedures and employee relations.



ChEw yET GOR Human Resource and

Administration Manager



MANAGEMENT TEAM(CONT’D)


Lim Bee Teng Legal Manager


• Bachelor of Law (LLB, Hons) degree from the University of London

• Certification in Legal Practice from Profession Qualifying Board, Malaysia


Ms Lim Bee Teng was appointed as the Group’s Legal Manager on 12 May 2014. Prior to joining the Group, she served as the corporate in-house legal counsel in AEON Retail and possesses a wide spectrum of experience in transactional conveyancing, disputes resolutions practices, commercial and legal negotiations, corporate and commercial exercises.

Ms Lim handles the Group’s legal matters including corporate and conveyancing matters. She is involved in the advisory and preparation of sales and purchase agreements, lease and tenancy agreements, service agreements, securities documents, non-disclosure agreements, formation of joint management body and land acquisition matters.

She also assumes the role of providing legal training within the EcoFirst Group of Companies.




MANAGEMENT TEAM(CONT’D)


Dear Valued Shareholders,

The turbulent external environment in the global and regional arenas had a substantial degree of influence on our strategies executed during the year, as we navigated the twin effects of home buyers’ affordability and the changing retail consumers’ behaviour resulting from COVID-19.

Nonetheless, I am pleased to announce that we remained on track in upholding our commitment to key stakeholders, reiterating our record of delivering value. I am therefore pleased to present to you the operational highlights and financial performance for the 12-month period from 1 June 2019 to 31 May 2020 (FY2020), as well as risk factors and growth outlook for the subsequent timeframe.

GROUP ChIEF ExECUTIvE OFFICER’s MANAGEMENT DIsCUssION AND ANAlysIs


BuSINESS OVERVIEW

Established in 1973, EcoFirst Consolidated Bhd (EcoFirst / the Group) is a public listed company in the Main Board (now Main Market) of Bursa Malaysia Securities Berhad since 1984, with core businesses in property development, property investment holding and property management. In the past decade since 2011, we are proud that the Group has maintained continuous profitability after numerous loss-making years, having realigned the Group to focus on building value and achieving long-term sustainable growth. Our tagline of “Creating Value Now and Tomorrow” indicates this commitment to shareholders towards executing value-accretive strategies.

The Group’s property portfolio features a wide range from residential and retail units to shopping malls.

Being steadfast in delivery, EcoFirst’s completed projects include residential and commercial developments including Taipan@Ipoh Cybercentre in Perak, 1Segamat Mall in Johor, South City Plaza shopping centre and The Academia in Seri Kembangan, Selangor, as well as Kondominium Kelab Golf in Perak.

EcoFirst owns and is currently developing our flagship Ampang Ukay mixed development, an 87-acre landbank situated in the premium enclave of Ukay Heights within Klang Valley. With an estimated Gross Development Value (GDV) of more than RM5.0 billion, the seven-phased project is designed to sustain the Group’s growth phase for the next 10 to 15 years, and is poised to be a signature landmark in the up-and-coming urban hotspot.

The Group also manages the leasing and administrative functions for South City Plaza mall in Seri Kembangan, Selangor, under the property investment arm.

MAINTAINING PROFITABIlITY

I am pleased to report that the challenging circumstances amidst the economic slowdown throughout the year did not deter us from focusing on project execution in FY2020. In fact, the completion of construction of Liberty @ Ampang Ukay aptly demonstrated this principle, and enabled us to stake our claim as being committed to delivery.

However, the Government’s enforcement of the Movement Control Order (MCO) from 18 March 2020 onwards had a two-pronged effect on our operations.

For one thing, the progress of handover of completed units to property owners was delayed due to social distancing requirements and movement restrictions within a narrow

radius. Furthermore, the operating hours for non-essential retailers in South City Plaza were adversely affected, in compliance with strict regulations.

Against this backdrop, EcoFirst achieved commendable revenue of RM150 million in FY2020, compared to RM221.3 million attained in the financial year ended 31 May 2019 (FY2019).

The property development segment contributed the majority of the Group’s topline, making up RM135.4 million or 90.3% of total FY2020 group revenue. This was lower than the RM204.9 million reported in FY2019, as profit recognition of Liberty @ Ampang Ukay project was in line with the tail-end stage towards project completion.

The balance RM14.6 million or 9.7% of FY2020 revenue was derived from the property investment and property management segment. The reduced revenue compared to RM16.4 million in FY2019 reflects the direct impact of COVID-19-related social safety measures imposed from 18 March 2020 onwards.

Still, the Group maintained healthy profitability in the year under review with net profit attributable to shareholders of RM17.1 million in FY2020, versus RM22.6 million in FY2019. Correspondingly, earnings per share stood at 2.15 sen in FY2020, versus 2.82 sen per share previously.

It is also noteworthy that EcoFirst retained a strong financial position as at 31 May 2020, which is a fundamental tenet in establishing a stable foundation to weather economic and sectoral headwinds.

Notably, shareholders’ equity continued to expand to RM347.2 million as at 31 May 2020 from RM331.3 million a year ago, mainly due to larger share capital and reserves from retained earnings. Total equity increased to RM361.9 million in end-May 2020, versus RM346 million a year ago. Consequently, the Group’s gross debt-to-equity ratio displayed steady improvement, standing at 0.45 in end-May 2020 compared to 0.50 in end-May 2019.

As at 31 May 2020, the Group’s total assets was largely maintained at RM706.9 million from RM706.7 million in the previous year.

The Group’s non-current assets expanded to RM525.7 million, on the back of larger investment property base and land held for development. Although current assets reduced to RM181.2 million in end-May 2020, inventories decreased by 8.0% to RM78.6 million from RM85.5 million, as the Group successfully sold completed units in Liberty @ Ampang Ukay. Altogether, the net asset value (NAV) per share increased to 43 sen from 41 sen in the previous year.

GROUP ChIEF ExECUTIvE OFFICER’sMANAGEMENT DIsCUssION AND ANAlysIs

(CONT’D)


EcoFirst intends to implement its current stance of financial prudence, in ensuring both ongoing operations as well as funding future plans.

SEGMENTAl REPORTING

• PropertyDevelopment

As the majority contributor to EcoFirst’s topline in line with our business direction, the property development segment raked in RM135.4 million or 90.3% of FY2020 group revenue, in tandem with construction progress during the year. More importantly, we are delighted to have secured buyers’ vote of confidence for our flagship project, with phase 1 of Liberty @ Ampang Ukay fully sold by the end of FY2020. Liberty made up RM132.2 million sales in FY2020, a commendable feat under the tougher economic circumstances.

In light of the softer property market demand for the first half of FY2020 brought on by the buyers’ financing eligibility issues, followed by movement restrictions in the second half of FY2020 due to MCO, the Group undertook a thorough evaluation of the proposed timing of the subsequent launches of Ampang Ukay. In this respect, the management endeavoured to ensure that the subsequent phases of Ampang Ukay were as well received as the first, and thus leverages on the success of the completed phase 1.

Hence, the management focused its efforts on putting the final touches on Liberty @ Ampang Ukay, including adorning common areas with quality finished works and securing food and beverage (F&B) and service providers as tenants for the retail podium to enhance the vibrancy of the development for residents and general public.

At the same time, we are preparing the plans for subsequent launches for onward submission to the authorities for approval. The management intends to launch 7 ensuing phases of development, and obtain a masterplan for Ampang Ukay which will demonstrate the clear concept of the modern township we envision for the Ampang community.

This flagship development is intended to drive EcoFirst’s prospects over the next 10 to 15 years, and hence we believe that we are entering a crucial phase of laying a strong foundation. This patient and prudent approach belies our long-term perspective that befits our management credo.

We adopted a similar strategy for our completed projects, where outstanding inventory of completed development properties reduced further to RM22.9 million, from RM25.3 million in FY2019. These comprised sales of completed units in The Kondominium Kelab Golf in Ipoh, Perak

(completed in July 2017), which made up RM3.1 million of FY2020 sales. We are continuing to monetize the balance 59 units valued at RM40.4 million from the inventory. EcoFirst has not wavered from our primary objective of transforming into a reputable boutique property developer with sizable and substantial projects in choice locations. Thus, one of our pivotal strategies going forward is to explore opportunities for future developments, either through outright acquisition of lands and/or projects, or by entering into joint ventures and other forms of alliances to expand our property development portfolio.

Our strong financial position, coupled with our track record for delivery, positions EcoFirst fittingly to undertake the necessary measures in embarking on the next stage of growth.

Property Investment

Our property investment segment consists of the South City Plaza shopping mall in Seri Kembangan, Selangor, which is a five-storey mall known for the largest digital device accessory centres in Malaysia, and the leader for Chinese antiques, tea and porcelain products.

The Government-enforced MCO and social distancing measures had an adverse impact on consumers’ shopping behaviour, and affected the occupancy levels and average rental rates in the year under review. The mall was 82% occupied as at end-May 2020, compared to 81% in FY2019. As part of efforts to ease the cashflows of retailers from the weaker sentiment, the Group implemented a temporary rental assistance programme from 18 March 2020 to 3 May 2020 to enable retailers tide over the challenging circumstances.

This led to the segment’s revenue reducing to RM11.9 million in FY2020, compared to RM13.3 million a year ago. Hence, the property investment division made up 8% of FY2020 group revenue.

The Group remains optimistic of the long-term outlook for this mall, as the construction of Klang Valley Mass Rapid Transit 2 (KVMRT2) project has resumed and is potentially a feeder to improve patron footfall to South City Plaza. With six stations along the Sungai Buloh-Serdang-Putrajaya line, it would serve as a crucial connection between key hotspots in Klang Valley, including Kuala Lumpur, Cyberjaya, Putrajaya, Seri Kembangan and other parts of Klang Valley.

The Group is currently awaiting the outcome of the proposal for a pedestrian bridge that would link the KVMRT2 station to South City Plaza. We are hopeful that this would bear fruit and complement our current marketing activities to attract new tenants.

GROUP ChIEF ExECUTIvE OFFICER’sMANAGEMENT DIsCUssION AND ANAlysIs(CONT’D)


Property Management

The balance RM2.6 million or 1.8% of FY2020 revenue is contributed by the property management segment under Budaya Fokus Sdn Bhd. This subsidiary is in charge in the management of South City Plaza.

CHAllENGES, RISKS AND FuTuRE PROSPECTS

The prospects of the global economy looks set to remain underwhelming going into 2021, amidst the weak demand and supply factors in major developed and emerging economies, compounded by the uncertainty wrought by the COVID-19 pandemic and the on-going US-China trade war.

While Malaysia is not shielded by the fate of the global environment, Bank Negara Malaysia (BNM) noted that the country is poised to note gradual recovery in the second half of 2020 and rebound further in 2021. This formed the basis of BNM forecasting GDP expansion rate of between 5.5% and 8% for 2021, in light of gradual normalisation in economic activities and labour market conditions.

From a sectoral perspective, the property market is hoped to react positively to the slew of Government campaigns to assist homebuyers in purchasing homes. Simultaneously, the Government’s economic stimulus programmes, which are designed to enhance household income and encourage private consumption, are hoped to bring positive effects on the retail spending trend.

Cognizant of the Government’s positive measures, the Group will remain vigilant of opportunities to extend our footprint further in the property development and property investment sectors in Malaysia.

Ampang Ukay remains the Group’s crown jewel, which will certainly elevate EcoFirst as a reputable boutique developer upon its eventual completion in 10 to 15 years’ time. We are undertaking the appropriate measures to align the designs and plans of our subsequent launches with buyers’ discerning requirements, and hope to proceed with the submission and approvals in a timely manner. We are heartened by the fact that the highway connectivity is currently ongoing, lending credence to the value proposition of Ampang Ukay’s strong accessibility to the town centre and the Greater Klang Valley.

That said, we are exploring opportunistic measures to broaden the scope of our expertise beyond this flagship development. To this end, we are constantly on the lookout for lands and/or development projects to unlock its value and augment our present undertakings.

We are also choosing to take a long-term view of our property investment segment, where South City Plaza shopping is strategically located to cater to an ever-growing catchment population in the southern region of Klang Valley. The upcoming accessibility via the KVMRT2, combined with the planned pedestrian bridge directly to the mall, are plus points that we hope to leverage on in the future.

We at EcoFirst are leveraging on past decade of transformation, and guided by our prudent and practical approach of ensuring excellence in all matters. With your support, we are confident of weathering this challenging time, together.

Dato’ Tiong Kwing HeeGroup Chief Executive Officer

GROUP ChIEF ExECUTIvE OFFICER’sMANAGEMENT DIsCUssION AND ANAlysIs

(CONT’D)


The Statement

This statement provides an overview of EcoFirst Consolidated Bhd’s (EcoFirst / the Group) approaches to sustainability in aspects of our business. We recognise the importance of socio-economic and environmental impact to our business activities that create long-term value for our stakeholders. This statement aims to highlight our efforts to embed Economic, Environmental and Social (EES) Sustainability initiatives into our business operations throughout the year in review.

Our guiding theme ‘Creative Value Now and Tomorrow’ highlights our commitment to progressively build a sustainable business in the long-term. For the financial year under review, our theme was on ‘Growth’ indicating our position of strength of continuous growth since our restructuring in 2011.

Reporting Standards

The statement is prepared in accordance to the Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Securities) with reference to the Sustainability Reporting Guide 2nd edition issued by Bursa Securities as well as the International Global Reporting Initiative (GRI) G4 Guidelines which are a blueprint to achieve a better and more sustainable future for all through business operations and practices.

As we continue on this sustainability journey, we will deliberate on the appropriate direction that the Group should focus on that best reflects and drives us towards making the right contribution.

Report Scope and Boundary

This Sustainability Statement covers the reporting period from 1 June 2019 to 31 May 2020 (FY2020). Our focus covers the economic, environmental and social aspects and highlights initiatives and areas that we have identified.

This statement predominantly covers the business activities undertaken by the Group at headquarter level (in Kuala Lumpur), Property Development pertaining to Ampang Ukay (in Ampang), and Property Management pertaining to South City Plaza shopping mall (in Seri Kembangan).

The information and data disclosed in this statement have been derived from internal reporting processes, systems and records.

On a progressive basis, the Group will continue to strengthen and expand its reporting and articulation on sustainability, and the ways of implementing and measuring them as part of its business approach.

About EcorFirst

Established in 1973, EcoFirst Consolidated Bhd is a public listed company with core businesses in property development, property investment holding and property management.

Steadfast in delivering its projects, EcoFirst revived and completed its 1Segamat Mall, the first and only commercial complex in Segamat. Its South City Plaza in Sri Kembangan is now home to Malaysia largest digital devices accessories outlet and china products centre whilst transforming into an edu-mall completed with student-housing apartment, The Academia. It has also developed Kondominium Kelab Golf previously known as Upper East @ Tiger Lane, a luxury condominium project in Ipoh, Perak and has acquired a substantial land bank in the Klang Valley.

The Group is currently developing its flagship development in Ampang Ukay, offering retail convenience, quality amenities, pedestrian and bicycle-friendly environments, vibrant nightlife, and a strong neighbourhood character. The township borders Ampang, a prime district within Kuala Lumpur and its bustling neighbourhood, Ulu Klang. Conveniently located only 7 minutes away from Kuala Lumpur City Centre and 12 minutes to major areas such as Hartamas, Damansara and major highways, Ampang Ukay offers multiple access points and endless connectivity to its residents. This massive undertaking is intended to make available a series of successive developments bringing superior quality residential and commercial offerings that will transform Ampang Ukay towards a new-age dimension; at the best value in this prestigious part of town.

sUsTAINABIlITysTATEMENT


Governance Structure

For the financial year under review, we adopted a governance oversight structure for sustainability matters as below. In setting the tone from the top, we discussed sustainability matters at the Board. Actions arising from the discussions are then taken up by the Group CEO and Senior Management who will drive the Group’s sustainability initiatives with the relevant operations teams.

SuSTAINABIlITY GOVERNANCE STRuCTuRE

Board of Directors The Board oversees the sustainability and policies that drive sustainability practices in the Group.

The President, Group CEO and Senior Management

The President, Group CEO and Senior Management members drive the sustainability objectives with the business and function divisions who shall drive sustainability efforts and initiatives.

Operations Teams The business and function divisions shall drive and implement sustainability strategies.

Good governance is a crucial foundation for the Group so that we can grow in sync with expectations for a sustainable business. We have established policies to ensure we maintain the highest standards of integrity, accountability and governance in our business operations, mainly the Code of Business Conduct & Ethics as well as the Whistleblowing Policy.

The Group Chief Executive Officer (GCEO) is prepared to further improve the Group’s year-on-year sustainability performance of the group and develops the sustainability agenda encompassing all aspects including addressing issues identified in previous years to better enhance the Group strategy and then propose improvement programs and initiatives to the Board.

Our Stakeholders Engagement

It is essential that we engage and understand our stakeholders on an ongoing basis as part of our sustainability journey. Our stakeholders are identified based on the impact our business has on them and their involvement in our business.

Stakeholder Engagement Channel Frequency Topics Discussed

Employees • Meetings• GCEO messages• Newsletter• Social activities• Townhall• Employee Engagement Survey• Staff orientation / onboarding• Training and development

programmes• Recognition awards

Monthly, Quarterly,Annually & As and when required

• Career development and training

• Rewards and remuneration• Healthy and safe work

environment• Company mission and

vision

Investors / Shareholders

• Annual General Meeting• Financial Report• Announcements via

Bursa Securities• Company’s website• Briefings/updates for analysts/

fund managers/ potential investors

• Media engagements

Annually, Quarterly &As and when required

• Financial performance• Business strategy• Corporate Governance

sUsTAINABIlITy sTATEMENT(CONT’D)


Stakeholder Engagement Channel Frequency Topics Discussed

Customers (Property)

• Sales events• Quarterly newsletters• Customer feedback channels • Formal and informal meetings• Customer service unit• Facebook channels• Company’s website

Fortnightly, Bi-monthly& As and when required

• Product affordability• Product quality• Pre-delivery inspection prior

handing over of product to customer

• Customer satisfaction survey

Customers(Tenants)

• Formal and informal Meetings• Customer satisfaction survey

and feedback

Throughout the year • Services• Rental/ Cost reduction/

savings• Promotion activities

Government andRegulators

• Formal Meetings• Emails and letters• On-site inspection• Dialogue sessions

As and when required • Regulatory compliance • Environmental management

& compliance • Security and Safety

management

Supply Chain Contractors/Vendors/Suppliers and Business Partner

• Meetings• Tendering and procurement

platforms

Throughout the year • Supply chain management • Cost reduction/savings• Procurement practices

Media and analyst/ fund manager

• Media release / interviews • Financial results briefings• Public events

As and when required • Financial performance• Business strategies• Market presence

localCommunities

• Volunteering opportunities• Charitable / community events

Quarterly and as and when required

• Corporate responsibility• Community building

Material Sustainability Matters

The materiality assessment enables the Group to map out its sustainability-related material matters that can contribute to improve the effectiveness of the business strategies in the short, medium and long term. The materiality process is to identifying important areas for our stakeholders and it helps to define the boundary and scope for our sustainability reporting. This analysis offers valuable insight to the Group’s sustainability strategies and goals.

In conducting our materiality assessment, the Group looked at our business internally as well as studied industry peers to select potential material factors that our stakeholders would consider to be our greatest impacts on the environment, economy and society.

We have identified the following material issues for assessing the sustainability and action plans for the Group:

Governance & Compliance

Economic Environment Social

• Ethics and principal • Anti-Bribery &

Corruption• Whistleblowing

• Financial performance• Township economic

multiplier • Quality of Service

• Energy consumption• Workplace Health and

Safety

• Employee wellbeing• Community building



GOVERNANCE & COMPlIANCE

EcoFirst, guided by the Malaysian Code on Corporate Governance 2017 (“MCCG 2017”) and recognises the importance of enhancing shareholders’ value through building a sustainable business and growth by implementing and maintaining high standards of corporate governance in managing the business affairs of the Company. (Refer to the Corporate Governance Overview Statement on page 39)

Ethics and Principal

EcoFirst has policies in place to ensure that all directors, officers, managers and employees conduct business ethically and with integrity. The Human Resources Department which ensure employees and other stakeholders adhere to the relevant law and regulation.

Our code of business conduct and ethics and the Anti-Bribery and Corruption Policy (ABC Policy) govern the Group’s business conduct. The Code and Policy are communicated to every employee during the induction programme and staff briefing session which promote the corporate culture engenders business ethics conduct of the Group.

Anti-Bribery and Corruption

EcoFirst is committed to conducting business dealings with integrity. This means avoiding practices of bribery and corruption of all forms in the Company’s daily operations. The Group has adopted a zero-tolerance approach against all forms of bribery and corruption. In 2020, our ABC Policy and Procedures were officially introduced in Group. As at 31 May 2020, a total of 73 staff attended ABC Policy briefing. The Anti-Bribery and Corruption Policy is published in Company’s website at www.ecofirst.com.my.

Whistleblowing

EcoFirst has a Whistleblowing policy, which is accessible via company’s website that provide avenues and reporting channels for our stakeholders to alert us of any suspected wrongdoings while preserving their anonymity and confidentiality to prevent reprisal. Internally, an employee who believes that an injustice has been committed against him, including discrimination or harassment against race, religion, gender, age, sexual orientation, disabilities, or nationality, can raise a grievance following procedures outline in the Code. In 2020, no cases were reported. We continue to welcome anonymous disclosures of suspected illegal and unethical business practices, via our Whistleblowing Report Form publicly available on our official website.

ECONOMIC

Financial Performance

Our main aim is to ensure that we continuously create economic value from our business, namely in property development, property investment and management through prudent planning and execution according to sound fiscal strategies.

Given that the Group was in a loss-making position in the years prior to FY2011, it is all the more incumbent upon the Group to ensure that it remains on a path to growth and profitability. This has one of the uppermost motivations of the Group and it has been on a solid path to profitability since then.

Demonstrating resilience in earnings despite a weak property market environment was important for business sustainability to ensure we adopted the right strategies to keep on track to achieve the Group’s goals. The Group is mindful of maintaining a manageable stream of business while not overextending itself. This is demonstrated through its low gearing and strong cash position maintained since FY2011. Our net asset value (NAV) has been increasing since we restructured from 2011 at 18 sen to as at end FY2020, at 43 sen, an increase of 138%.



For the financial year under review, given that the property and retail market conditions remained somewhat uncertain and an unexpected coronavirus disease (COVID-19) pandemic sweeping across the globe. Malaysia’s Government has decided to impose a nationwide Movement Control Order (“MCO”) starting 18 March 2020 where most workplaces were closed and only selected essential services were allowed to remain in its daily operation. We undertook heightened monitoring of our cashflow position which we deliberated upon at our Governance & Risk Management Committee.

We took a cautious stance with regard to our property development arm and focused on selling inventories of our Ipoh and Ampang Ukay projects.

For the property investment arm, as some tenants within our South City Plaza shopping mall raised issues of expense management given the softer market sentiment and the implementation of MCO, we scrutinised our tenant movement diligently and implemented initiatives to market proactively to new potential tenants and proactively engage our tenants to understand their needs and concerns, as well as to obtain feedback. Where applicable we will discuss the potential improvements that would serve our tenants better in the near future. Among the considerations is rental assistance provided to tenants by way of rental rebate during the MCO period and review monthly rental rate which was deliberated on a case-by-case basis and subjected to Management’s discretion and approval.

Our efforts were done in line to ensure that rental yield and recurring income from our investment property met the targets. To ensure that the South City Plaza shopping mall to continually be attractive to tenants and shoppers, we undertake efforts to improve and enhance the yields by carrying out upgrades and refurbishments to the space. This is aimed at improving service quality that we provide to our tenants and shoppers.

As at 31 May 2020, Our South City Plaza’s tenant mix comprises of hypermarket, wholesaler, franchiser, specialty and others. The data below show is for a better understand our shoppers’ movements and monitoring on the activities of lease and tenant change.

% Occupancy Rate FY2019

% Occupancy Rate FY2020

Tenant Mix

Total Occupancy

Remaining Vacancy

Anchor Tenant (e.g. Giant Hypermarket, Sports Planet)

14.8% 14.8%

Wholesaler Tenants Handphone Accessories Wholesaler

2.8% 6.0%

Franchise Tenants EZGO, Old Town Cafe, Subway, Mr.DIY, Tealive

2.6% 2.6%

Specialty TenantsChina Porcelain

6.9% 6.2%

81.0%

19.0%

Others Tenants: Office storage, Lifestyle, Apparel, Accessories, Services & Facilities

53.9% 52.4%

82.0%

18.0%



We are fully committed to high standards of corporate governance which we belief to be the cornerstone of sustainability for the Group’s long-term performance, safeguard stakeholders’ interests and maximise long-term shareholder value. Where relevant, we adopt the principles set out in the Malaysian Code of Corporate Governance 2017.

Township economic multiplier

In striving to be sustainable to the Group, we are also cognisant of our role as a cog in the wheel of economic activities in the areas in which we operate. This is important to the Group as the mark of a successful property development or a shopping mall is only as good as the number of people who know and are confident of making a home and living from it.

With regard to our property development arm, Ampang Ukay is the Group’s flagship project that spans an 87-acre freehold land situated in the premium location of Ukay Heights in the Klang Valley. Ampang Ukay township is centrally connected to Kuala Lumpur city centre and other major areas such as Hartamas and Damansara. It is accessible via four major highways: Duta-Ulu Kelang Expressway (DUKE), Ampang-Kuala Lumpur Elevated Highway (AKLEH) and Middle Ring Road 2 (MRR2), as well as the soon-to-be completed Sungai Besi-Ulu Kelang Elevated Expressway (SUKE). The connection to Ampang Ukay makes it an attractive location as it supports mobility to the economic epicentre of Kuala Lumpur as well as spur more businesses to spring up along the connected areas.

This development, which is being executed in 7 to 8 phases, contributes a sustainable revenue pipeline for the Group until 2032. The first phase one of Ampang Ukay is called Liberty and was launched in March 2017. Liberty consists of three towers with 1,632 small office home office (SOHO) units and 32 shoplots and 6 retail units with a GDV of RM606.8 million. Working towards providing home and work concepts that are interlinked will allow for more economic activities to thrive within Ampang Ukay and the surrounding areas.

As the first phase of Ampang Ukay offers well-priced starter homes for first time homebuyers, working professionals and growing families, the Group is doing its part in the national agenda towards helping the younger generation owns their own homes. The Group has successfully accomplished vacant possession of Liberty @ Ampang Ukay on 10 January 2020 and recorded 100% take-up rate of the project. The fully taken up project is a testament to the Group’s ability to provide the right homes in line with market demand. The Group is currently in the midst of handing over keys to the project homebuyers. EcoFirst is currently in the final stage of negotiation to acquire prospective land in a strategic location for the purpose of immediate development.

With regard to our property investment and management arm which manages the five-storey South City Plaza in Seri Kembangan, Selangor, the shopping mall houses a number of shops and food outlets with Giant Hypermarket as the main tenant. The five-story mall includes two blocks of student residential apartments and comes with 800,000 square feet of lettable space and over 2,000 parking bays. We have also completed a new wing to South City Plaza known as the “SCP Walk” which now caters to an additional 31 shop lots with an occupancy rate of 82%.

South City Plaza is best known for being a marketplace for Chinese products particularly China porcelain, antiques and tea trading. It is dubbed as the country’s largest digital devices accessories centre while also offering an exciting range of fashion, food and other lifestyle outlets.

Situated in the bustling Seri Kembangan town, the mall is strategically located with easy access from the Sungai Besi Expressway, the Silk Highway, Kuala Lumpur-Seremban Highway and the Bukit Jalil Expressway and upcoming Seri Kembangan MRT line connectivity. This makes it an attractive location to spur and support economic activities.

The Group has also strictly implemented the recommended social distancing standard operating measures in South City Plaza to safeguard the well-being of mallgoers and workers. However, the Group does anticipate the mall’s footfall will remain muted in light of mall goers’ concerns regarding the COVID-19 pandemic. Despite these challenges, the Group believes the mall is expected will continue to contribute rental income for the coming financial years. In the long-term, the Board expects the mall’s vibrancy and footfall to improve.



85

84

83

82

81

2016 2017 2018 2019 2020

Occupancy Rate (%)

2016 2017 2018 2019 2020

Occupancy Rate (%) 84% 84% 82% 81% 82%

To further ensure South City Plaza continues to attract shoppers, visitors and tenants, we will be undertaking a refurbishment exercise that will encompass upgrades to the mall facilities. Further to this, we have submitted a proposal to the authorities to install a connection bridge from the upcoming Seri Kembangan Mass Rapid Transit 2 (MRT2) station to the South City Plaza mall. The MRT2, also known as the Sungai Buloh-Serdang-Putrajaya line, will see six stations in the vicinity and is aimed to connect Seri Kembangan to Kuala Lumpur, Cyberjaya, Putrajaya and other places.

Quality of Service

Sustainability is at the core of the Group’s offerings, and underscoring this is the quality of service that we offer. In regard to our Sout

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