CONTOURING GROWTH Empowering performance Integrated Annual Report 2023
FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Matrix Concepts Holdings Berhad has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance practices. Cover Rationale Contouring Growth · Empowering Performance The cover design depicts “land contours” being the primary natural capital of Matrix. Matrix continues to ‘contour’ its business and operational growth to drive empowered performance that delivers inspired results for its stakeholders. Integrating ESG perspectives into its business model, Matrix continues to develop a clear direction amidst the changing business and physical environment, effectively adapting to emerging challenges while leveraging opportunities. Thus, Matrix remains steadfast and future focused to drive robust performance across the short, medium, and long-term perspectives.
INSIDE THIS REPORT 2 ABOUT THIS REPORT 10 Vision and Mission 11 Corporate Information 12 Corporate Structure 14 Key Corporate Milestones 16 Group Corporate Profile OVERVIEW 73 Values and Value Creation from the Matrix Perspective 75 Governance of the Business Model and Value Creation 76 Our Business Model 79 Matters Material to Value Creation 88 Linking Issues / Risks with Financial Performance 90 Business Value Chain and Key Processes 92 Forward Focus – Our Strategic Priorities 97 Multi-Capitals Value Creation Perspective 100 Value Creation Model VALUE CREATION STRATEGIC REVIEW 130 Directors’ Report 137 Statement by Directors 137 Statutory Declaration 138 Independent Auditors’ Report 143 Statements of Financial Position 145 Statements of Profit or Loss and Other Comprehensive Income 146 Statements of Changes in Equity 149 Statements of Cash Flows 151 Notes to the Financial Statements FINANCIAL STATEMENTS 244 Additional Information 245 List of Properties 247 Recurrent Related Party Transactions 249 Analysis of Shareholdings 251 Top Thirty (30) Largest Shareholders ADDITIONAL INFORMATION 253 Notice of Annual General Meeting 259 Statement Accompanying Notice of Annual General Meeting Proxy Form AGM NOTICE AND INFORMATION 103 Corporate Governance Overview Statement 116 Audit Committee Report 121 Statement on Risk Management and Internal Control 128 Statement of Responsibility by Directors OUR GOVERNANCE 19 Five-Year Group Financial Highlights 20 Group Quarterly Performance 21 Dividend Highlights 22 Share Price Performance 23 Statement of Value Added Distribution and Simplified Financial Statement 24 Accolades PERFORMANCE 28 Chairman’s Statement 38 Management Discussion & Analysis KEY MESSAGES 57 Board of Directors’ Profiles 66 Management Team OUR LEADERSHIP
ABOUT THIS REPORT INTRODUCTION Matrix Concept Holdings Berhad (“Matrix” or “the Group” or “the Company”) is pleased to bring you its Integrated Annual Report for the financial year ended 31 March 2023 (“IAR2023”). IAR2023 continues to provide an integrated value creation narrative – bringing together both financial and non-financial matters that are material to the business model and presenting this information in a unified reporting approach. IAR2023 emphasises linkages between environmental, social and governance (“ESG”) aspects of operations to financial and business performance, and vice versa. The report has been prepared in accordance to the principles based framework of Integrated Reporting1 comprising the following: 6 Capitals 7 Guiding Principles 8 Content Elements Financial Strategic focus and future orientation Organisational overview and external environment Manufactured Connectivity of information Governance Intellectual Conciseness Business model Human Reliability and completeness Risks and opportunities Social Consistency and comparability Strategy and resource allocation Stakeholder relationships Outlook Basis of preparation and presentation Natural Materiality Performance 1 Since August 2022, the Value Reporting Foundation (“VRF”) has merged with the International Financial Reporting Standards (“IFRS”) Board with the Integrated Reporting Framework now becoming a pivotal part of the effort to link sustainability disclosures with financial statements as prescribed by the emerging IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Disclosure). 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 2 ABOUT THIS REPORT
ABOUT THIS REPORT DISTINCTION BETWEEN INTEGRATED REPORTING AND CONVENTIONAL CORPORATE AND SUSTAINABILITY REPORTING The following matrix provides a visual explanation of how integrated reporting differs from present reporting requirements and its value in bridging the present disclosure and information gaps. Reporting on all sustainability matters that reflect significant positive or negative impacts on people, the environment, and the economy Reporting on those sustainability matters that create or erode enterprise value Already represented as monetary amounts recognised in the financial statements For those interested in understanding the enterprise’s positive and negative contributions to sustainable development For those interested in understanding the drivers of enterprise value For those interested in financial performance Integrated Reporting as explained in the Introduction subsection, aims to link financial and non-financial information in providing a clearer and connected corporate narrative of what are the organisation’s most material topics in terms of creating value. Value from an integrated reporting perspective is defined from a multi-capitals perspective of financial, manufactured, social, human, intellectual and natural capitals. Financial values + Non-financial values (Stakeholder and Environmental values, intellectual capitals and more). Conventional Value Creation Perspective Integrated Reporting Value Creation Perspective Typically, Financial Capitals only: Revenues, Earnings, Cashflow, Assets, etc. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 3
Revenues, Earnings, Assets, Dividends Revenues, Earnings, Assets, Dividends VALUE CREATION VALUE CREATION ABOUT THIS REPORT OUR REPORTING SUITE INTEGRATED ANNUAL REPORT 2023 (“IAR2023”) or “this Report” Provides a comprehensive yet concise narrative of Matrix’s strategies, highlights and achievements in the creation of financial and non-financial values for financial year ended 31 March 2023 (“FY2023”). This includes providing readers with an understanding of how the Group creates value (beyond financial performance), its consumption of capitals and its plans and priorities to sustain value creation over short, medium and long-term perspectives. IAR2023 also provides detailed information on business, operational and financial performance, including the Group’s audited financial statements for FY2023. SUSTAINABILITY REPORT 2023 (“SR2023”) SR2023 is published as a standalone sustainability report that provides a comprehensive review of Matrix’s environmental, social and governance (“ESG”) performance. Disclosures are aligned to best practice global reporting frameworks as well as the requirements of the local regulator, Bursa Malaysia. Key aspects of reporting covered include governance of ESG matters, the management approach to material topics and the results achieved as well as lessons learnt and plans to drive further improvements in ESG performance going forward. The IAR2023 does not replace existing financial and sustainability based reporting. Rather, it serves to complement these existing reports towards completing the corporate reporting suite. Abbreviation used for Matrix Group in this Report are as follows: • Mawar Medical Centre (“Mawar”) • d’Tempat Country Club (“d’Tempat Club”) • Matrix Global Schools (“MGS”) • d’Sora Boutique Business Hotel (“d’Sora Hotel”) INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 4 ABOUT THIS REPORT
ABOUT THIS REPORT CORPORATE GOVERNANCE REPORT 2023 (“CG2023”) CG2023 demonstrates how Matrix has complied with the prescribed practices of the Malaysia Code of Corporate Governance 2021 (“MCCG 2021”). This includes the Group’s upholding of transparency, accountability and corporate governance and ethics, the existence of internal frameworks and controls for the management and mitigation of risks, audit processes and checks and balance systems implemented for separation of powers, processes and shareholder involvement in the election and re-election of directors as well as how the Group ensures that the rights of minority shareholders are preserved. REPORT SCOPE AND BOUNDARY Matrix’s IAR2023 covers the period of 1 April 2022 to 31 March 2023. Disclosures, where possible, are presented over 3-5 year time frames to represent industry / performance trends. The last report published was in 27 July 2022 for the period of 1 April 2021 to 31 March 2022. Boundary is set to all operating entities under Matrix based on the method of equitation control, that is all entities in which Matrix has a majority equity shareholding and hence, is directly responsible for business strategies and operations of said entity. The full list of companies included in this Report are provided in the Group Corporate Structure section. Exclusions include operations in Indonesia where Matrix is minority joint-venture partner. Due to data limitations, operations from Australia have been largely omitted but will be included in future integrated reporting as data collection improves. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 5
ABOUT THIS REPORT REFERENCED / ACCORDANCED FRAMEWORKS Beyond the principles based framework of Integrated Reporting, IAR2023 has been developed in accordance or in reference to the following domestic / international reporting frameworks (applied partially or in full): RELATED INFORMATION This Report is supplemented with additional online disclosures for our stakeholders. These include consolidated and separate financial statements, policies and structures of governance, organisational policies and other pertinent information. The Group’s latest corporate announcements and our corporate policies are available for viewing on our website: https://www.mchb. com.my/investor-relations/. Sustainability related information is given via: https://www.mchb.com.my/ sustainability/. The Group’s corporate governance policies including Board Charter and Terms of Reference, Code-of-Conduct and Whistleblowing Policy can be viewed at: https://www.mchb.com.my/investorrelations/corporate-governance/. CAUTIONARY / DISCLAIMER STATEMENT IAR2023 provides forward looking information such as Group business prospects, strategic priorities, performance aspirations based on set KPIs and targets, risks and opportunities and future business and operational plans. Such conclusions, decisions or assumptions have been determined based on the best knowledge and ability of Management, given the strategic information available at the time of the development of IAR2023. Such information has been considered taking into account the external operating environment as well as present PESTLE (Political Economic, Social, Technological, Legal and Environmental) factors. Companies Act 2016 (“Act”) Bursa Malaysia Sustainability Reporting Guide – Third Edition IFRS S1 General Requirements for Disclosure of Sustainabilityrelated Financial Information and IFRS S2 Climaterelated Disclosures Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad Malaysian Financial Reporting Standards (“MFRS”) Global Reporting Initiative (“GRI”) 2021 Malaysian Code on Corporate Governance 2021 (“MCCG 2021”) Sustainability Accounting Standards Board (“SASB”) Taskforce on Climate-Related Financial Disclosures (“TCFD”) INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 6 ABOUT THIS REPORT
ABOUT THIS REPORT However, given the dynamic nature of both the local and global operating environment and that many trends and developments are beyond the control or influence of any single company, country or even economic bloc, forward-looking information provided in IAR2023 may be rendered less accurate or irrelevant due to the aforementioned changes. Hence, forward-looking statements are not conclusive and do not serve as guarantees of future operational or financial results or any other kind of outcome. Actual plans and results may differ from those expressed in this Report. Readers are advised to exercise their own due diligence when making any investment decisions pertaining to Matrix or Matrix’s IAR2023. Matrix is not liable or responsible for any outcome or impact arising from decisions made by readers after having based their conclusions on information presented in IAR2023. DIRECTORS’ STATEMENT OF RESPONSIBILITY The Board of Directors of Matrix acknowledges its responsibility in ensuring the integrity of this Report and has applied its collective mind to present a balanced and comprehensive Integrated Report based on good governance practices and guided by IIRC’s <IR> Framework. The Board also provides assurance that the financial statements audited by Crowe Malaysia PLT were prepared according to the relevant standards and frameworks, including the MFRS, IFRS and the Companies Act 2016. DISTRIBUTION & AVAILABILITY A digital version of this Report and past reports are available for download at: https://www.mchb.com.my/investor-relations/downloads/ as well as the website of Bursa Malaysia Securities Berhad. ONLINE VERSION AND FEEDBACK Feedback on this Report may be channelled to: Ms. Carmen Loo Tel: +606-764 2688 Email: carmen@mchb.com.my INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 7
ABOUT THIS REPORT VALUES AND VALUE CREATION FROM THE MATRIX PERSPECTIVE How Matrix defines values within a dynamic operating environment. ABOUT THIS REPORT VALUE CREATION MODEL A visual representation of the matrix business model, including capitals consumed, key business processes and the values created over FY2023. CHAIRMAN’S STATEMENT AND MANAGEMENT DISCUSSION AND ANALYSIS Messages from the leadership of Matrix including a detailed business and operational performance review of revenue, earnings and financials. BUSINESS MODEL Explanation of Matrix’s business activities, its business strategies and how the Group differentiates itself from competitors. MATTERS MATERIAL TO VALUE CREATION A review of FY2023’s PESTLE trends and developments that have influenced the business model and value creation from a multi-capital context. LINKING ISSUES / RISKS WITH FINANCIAL PERFORMANCE Matrix’s continued efforts to establish linkages between ESG matters with business and financial performance in line with the spirit of integrated thinking. ABOUT MATRIX Basic information on the Group, its subsidiaries and nature of operations, Vision and Mission, corporate structure and location of operations. BUSINESS VALUE CHAIN AND KEY PROCESSES Demonstrates how the business model works, taking readers through the key stages within the property development process from landbanking up to post completion. MULTI-CAPITALS VALUE CREATION PERSPECTIVE Matrix’s consumption of the six capitals of Integrated Reporting and values created across the six capital perspectives. FORWARD FOCUS – OUR STRATEGIC PRIORITIES Information related to future orientation and intended plans and focus areas going forward to sustain value creation. HOW TO READ THIS REPORT While readers are at liberty in their approach to reading IAR2023, the following flow or sequence is recommended in enabling readers achieve optimum comprehension and clarity of presented information. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 8
OVERVIEW 10 Vision and Mission 11 Corporate Information 12 Corporate Structure 14 Key Corporate Milestones 16 Group Corporate Profile ROBUSTNESS AND MASTERY
VISION AND MISSION The creation of a benchmark – nurturing environment and enriching lives by being a caring and community developer. Providing premier and quality education for our future generation and diversify into sustainable property investment. Strive to consistently exceed our customers’ expectations through delivering par excellence products and professional services for unparalleled customer experience. Continuously develop our highly valued human capital based on meritocracy to ensure continuous growth for both the business and stakeholders. Creation and enhancing shareholders’ value and fulfillment of our corporate social responsibilities. OUR VISION OUR MISSION INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 10 OVERVIEW
CORPORATE INFORMATION Board Of Directors Dato’ Haji Mohamad Haslah Bin Mohamad Amin Chairman (Non-Independent Non-Executive Director) Dato’ Seri Lee Tian Hock Group Executive Deputy Chairman (Non-Independent Executive Director) Ho Kong Soon Group Managing Director (Non-Independent Executive Director) Dato’ Logendran A/L K Narayanasamy (Non-Independent Non-Executive Director) Mazhairul Bin Jamaludin (Senior Independent Non-Executive Director) Dato’ Hon Choon Kim (Independent Non-Executive Director) Dato’ Hajah Kalsom Binti Khalid (Independent Non-Executive Director) Chua See Hua (Independent Non-Executive Director) Loo See Mun (Independent Non-Executive Director) AUDIT COMMITTEE Mazhairul Bin Jamaludin (Chairman) Dato’ Hon Choon Kim Dato’ Hajah Kalsom Binti Khalid Chua See Hua Loo See Mun REMUNERATION COMMITTEE Dato’ Hon Choon Kim (Chairman) Dato’ Hajah Kalsom Binti Khalid Mazhairul Bin Jamaludin NOMINATION COMMITTEE Dato’ Hajah Kalsom Binti Khalid (Chairperson) Dato’ Hon Choon Kim Chua See Hua Loo See Mun RISK MANAGEMENT COMMITTEE Chua See Hua (Chairperson) Ho Kong Soon Dato’ Logendran A/L K Narayanasamy Dato’ Hajah Kalsom Binti Khalid Mazhairul Bin Jamaludin Loo See Mun SUSTAINABILITY COMMITTEE Dato’ Haji Mohamad Haslah Bin Mohamad Amin (Chairman) Dato’ Seri Lee Tian Hock Ho Kong Soon Dato’ Logendran A/L K Narayanasamy Mazhairul Bin Jamaludin COMPANY SECRETARY Carmen Loo Kah Boon (MAICSA 0784630) (SSM Practicing Certificate No. 201908001700) REGISTERED OFFICE Wisma Matrix No. 57, Jalan Tun Dr. Ismail, 70200 Seremban, Negeri Sembilan. Tel : +606-7642 688 Fax : +606-7646 288 Website : www.mchb.com.my Email : matrixcorp@mchb.com.my STOCK EXCHANGE LISTING Bursa Malaysia Securities Berhad Main Market Property Sector STOCK NAME AND CODE MATRIX (5236) AUDITORS Crowe Malaysia PLT 201906000005 (LLP0018817-LCA) & AF1018 52, Jalan Kota Laksamana 2/15, Taman Kota Laksamana, Seksyen 2, 75200 Melaka. Tel : +606-2825 995 Fax : +606-2836 449 REGISTRAR Bina Management (M) Sdn Bhd Lot 10, The Highway Centre, Jalan 51/205, 46050 Petaling Jaya, Selangor. Tel : +603-7784 3922 Fax : +603-7784 1988 Email : binawin@binamg168.com BANKERS AmBank Islamic Berhad AmBank Berhad Public Bank Berhad Maybank Islamic Berhad Hong Leong Bank Berhad INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 11
CORPORATE STRUCTURE PROPERTY DEVELOPMENT / INVESTMENT PROPERTY MANAGEMENT HOSPITALITY CONSTRUCTION BSS DEVELOPMENT SDN BHD MATRIX CONCEPTS (DAMANSARA) SDN BHD MATRIX EXCELCON SDN BHD MATRIX PROPERTIES SDN BHD MASUDA CORPORATION SDN BHD MATRIX EXCELTRADING SDN BHD MCHB NATRO’ GREEN SDN BHD MATRIX CONCEPTS SDN BHD Direct subsidiaries MATRIX EXCELBUILDER SDN BHD MATRIX COUNTRY CLUB SDN BHD MATRIX HOTELS MANAGEMENT SDN BHD MATRIX REALTY MANAGEMENT SDN BHD MATRIX PROJECT MANAGEMENT SDN BHD 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Indirect subsidiaries INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 12 OVERVIEW
CORPORATE STRUCTURE HEALTHCARE MATRIX CONCEPTS (NS) SDN BHD MCHB DEVELOPMENT (KV) SDN BHD PT MATRIX PERKASA INDONESIA MATRIX CONCEPTS (SOUTHERN) SDN BHD MATRIX DEVELOPMENT (AUSTRALIA) PTY LTD MATRIX SINO DEVELOPMENT SDN BHD MCHB DEVELOPMENT (NS) SDN BHD MATRIX CONCEPTS (CENTRAL) SDN BHD MEGAH SEDAYA SDN BHD MATRIX IBS SDN BHD MCHB DEVELOPMENT (SOUTHERN) SDN BHD PT FIN CENTERINDO SATU N9 MATRIX DEVELOPMENT SDN BHD MATRIX CONCEPTS (CHERAS) SDN BHD MATRIX PROPERTY MANAGEMENT (AUSTRALIA) PTY LTD MATRIX GREENVALE (AUSTRALIA) PTY LTD MATRIX 333 ST KILDA (AUSTRALIA) PTY LTD MATRIX HEALTHCARE SDN BHD MATRIX MEDICARE SDN BHD 100% 70% 100% 100% 100% 100% 30% 85% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% MGE DEVELOPMENT SDN BHD 100% EDUCATION MATRIX EDUCARE SDN BHD 51% INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 13
KEY CORPORATE MILESTONES Incorporation of Matrix Concepts Holdings Berhad. Maiden issuance of Sukuk Wakalah under the Sukuk Wakalah Programme, comprising RM50.0 million in nominal value of Islamic Commercial Papers and RM100.0 million in nominal value of Islamic Medium Term Notes. Completion of listing of 147,778,258 new ordinary shares in the Company on the basis of one (1) bonus share for every four (4) existing shares in the Company and 12,872,798 additional Warrants arising from the adjustments made in relation to the Bonus Issue. Matrix Concepts Holdings Berhad listed on the Main Market of Bursa Malaysia Securities Berhad on 28 May 2013. Maiden project at Taman Bahau in Negeri Sembilan comprising 595 units of mixed residential and commercial development. Completion of listing of Bonus Issue of 152,167,146 new ordinary shares of RM1.00 each in the Company, on the basis of one (1) bonus share for every two (2) existing shares in the Company. Joint venture with Menteri Besar Incorporated of Negeri Sembilan to develop Taman Andalas on 39 acres of land. Completion of listing of 77,325,585 new ordinary shares of RM1.00 each in the Company on the basis of one (1) bonus share for every six (6) existing shares and 77,325,585 warrants in the Company on the basis of one (1) warrant for every six (6) existing shares on Main Market of Bursa Malaysia Securities Berhad. The first Joint-Venture flagship development at Bandar Seri Impian, Kluang, Johor followed by Bandar Sri Sendayan as the second flagship project. Launched its first oversea project, M.Carnegie Boutique Apartment in Melbourne, Australia. 1996 2017 1997 2014 1999 2015 2005 2016 2013 INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 14 OVERVIEW
KEY CORPORATE MILESTONES Education Joint Collaboration Agreement entered into between Matrix Global Education Sdn Bhd (now known as MGE Development Sdn Bhd) and Hengshui Yizhong Education Group Sdn Bhd for advancement of education for students from China. Completion of listing of a total of 70.0 million placement shares which were placed out in four (4) tranches in relation to the Private Placement. Joint Venture cum Shareholders Agreement entered into between MGE Development Sdn Bhd and Bonanza Educare Sdn Bhd with a mutual objective to provide efficient operations and management of Matrix Global Schools based on an agreed business plan. Joint Venture Agreement entered into between Matrix Concepts (Southern) Sdn Bhd and Koperasi Kemajuan Tanah Negeri Johor Berhad (“KKTNJB”) with a mutual objective and purpose of carrying out mixed development projects on part of the land owned by KKTNJB. Management Agreement entered into between Matrix Medicare Sdn Bhd (“MMSB”) and Pusat Hemodialisis Mawar (“PHM”) wherein MMSB was appointed as the exclusive service provider in respect of the management of Mawar Medical Centre (Mawar). Memorandum of Understanding entered into between the Company and PT Bangun Kosambi Sukses and PT Nikko Sekuritas Indonesia for the joint development of an Islamic Financial District in Pantai Indah Kapuk 2, Jakarta. Joint Venture Agreement entered into between the Company and PT Bangun Kosambi Sukses and PT Nikko Sekuritas Indonesia to jointly venture into the construction and development of an Islamic Financial District in Indonesia. Subsequent issuance of Islamic Medium Term Notes of RM100.0 million in nominal value under the Sukuk Wakalah Programme. 2017 2019 2022 2019 2018 Signing of Memorandum of Understanding between NS Corporation and MCHB Development (NS) Sdn Bhd on 28 April 2022 to record both parties’ intentions to collaborate and carry out development on certain part of the lands in MVV 2.0. Signing of Sale and Purchase Agreement and Joint Venture Agreement between NS Corporation and MCHB Development (NS) Sdn Bhd on 24 August 2022 on the purchase of MVV Land, Negeri Sembilan. Completion of Bonus Issue of 417,115,361 new ordinary shares on the basis of 1 bonus share for every 2 existing ordinary shares held in the Company. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 15
GROUP CORPORATE PROFILE • In Malaysia, we are within the top 10 property developers (The Edge Top 10 Property Developers Award 2022). • We have won multiple awards for our property development by being a sustainable developer. • From land acquisition, planning to construction and delivery, we provide the best quality homes and experience to the purchasers. • We provide a conducive living environment and vibrant communities to our home buyers. • Our construction arm, Matrix Excelcon Sdn Bhd serves as a key enabler to our developments, and brings vast experience in undertaking infrastructure, residential and commercial projects. • Backed by the dedicated management team, all of our developments are delivered in timely manner with utmost efficiency and competitive pricing which will exceed our customers’ expectations of quality and services. OUR BUSINESS FOOTPRINT AND PRESENCE ABOUT MATRIX Matrix’s principal business operations is Property Development and its related services. Together with other businesses comprising Construction, Education, Hospitality and Healthcare, which cumulatively are regarded as Matrix’s five pillars of strength. This enables Matrix to derive operational synergies across its business model and value chain to enhance the value proposition of its townships and stand-alone property developments. Reflecting its tagline of “Nurturing Environments, Enriching Lives”, Matrix aspires to deliver sustainable, community living environments that meets property buyers’ aspirations while providing them with value and the opportunity to enjoy and aspire to better lifestyle experiences. In essence, beyond providing quality build and design, Matrix looks to deliver a complete lifestyle eco-system of work, play, dine, shop, learn and more. Matrix has expanded its footprint into Indonesia and Australia. PROPERTY DEVELOPMENT CONSTRUCTION INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 16 OVERVIEW
GROUP CORPORATE PROFILE • Matrix Global Schools comprise of Matrix Private School, Matrix International School and Matrix International Preschool located in one campus, focus with one vision and one mission. • We are a leading international and private education provider in Negeri Sembilan in creating new frontiers where we live up to our tagline “Nulli Secunda” which is “second to none” in terms of our quality of education. • Our philosophy is to challenge our students to be intellectually curious, responsive and persistent; to be committed to and expressive of their ideas. • d’Tempat Country Club, designed to be a top-notch club in Negeri Sembilan, caters to the ever increasing needs of residents and guest for leisure, sporting and excellent dining facilities. The Club also offers a perfect venue for all corporate functions, meetings, weddings and conferences. • d’Sora Boutique Business Hotel, a 3-Star contemporary business hotel, offers a complete range of facilities that meet business needs and travellers’ comforts. • Through its 30-year management agreement with Pusat Hemodialisis Mawar (“PHM”), Matrix has now penetrated into the healthcare sector. Matrix Medicare Sdn Bhd, the Group’s subsidiary company, manages PHM’s non-clinical operations of Mawar Medical Center such as finance, administration and human resources. • The partnership with PHM is a first step in realising the Group’s longheld ambitions towards establishing a fullfledged medical centre, while tapping on the potential synergistic benefits of integrating its property development and healthcare businesses. MALAYSIA INDONESIA AUSTRALIA EDUCATION HOSPITALITY HEALTHCARE INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 17
PERFORMANCE 19 Five-Year Group Financial Highlights 20 Group Quarterly Performance 21 Dividend Highlights 22 Share Price Performance 23 Statement of Value Added Distribution and Simplified Financial Statement 24 Accolades STRATEGY AND PRUDENCE
FIVE-YEAR GROUP FINANCIAL HIGHLIGHTS IN RM’000 12 MONTHS AUDITED 2023 12 MONTHS AUDITED 2022 12 MONTHS AUDITED 2021 12 MONTHS AUDITED 2020 12 MONTHS AUDITED 2019 Revenue 1,113,058 892,396 1,127,599 1,283,406 1,045,531 Cost of sales (624,272) (401,967) (562,354) (715,314) (523,314) Operating expenses (250,244) (241,159) (242,879) (238,256) (237,037) Operating profit 238,542 249,270 322,366 329,836 285,180 Other income 26,550 27,169 39,520 10,045 15,883 Finance cost (6,246) (11,452) (26,244) (2,145) (3,296) Share of net results of joint venture 1,816 3,409 5,166 (126) – Profit before taxation 260,662 268,396 340,808 337,610 297,767 Taxation (57,857) (67,530) (87,726) (103,157) (79,538) Profit after taxation 202,805 200,866 253,082 234,453 218,229 Profit attributable to owners of the company 207,220 205,198 262,223 237,386 218,389 Shareholders’ equity 2,003,625 1,910,379 1,807,735 1,605,130 1,327,115 Earnings per share (sen)* 19.7 19.5 21.0 19.4 18.7 Return on equity 10.3% 10.7% 14.5% 14.8% 16.5% 19 20 21 22 23 1,327,115 1,605,130 1,807,735 1,910,379 2,003,625 SHAREHOLDERS’ EQUITY (RM’000) REVENUE (RM’000) PROFIT BEFORE TAXATION (RM’000) PROFIT AFTER TAXATION (RM’000) 19 20 21 22 23 1,045,531 1,283,406 1,127,599 1,113,058 892,396 19 20 21 22 23 297,767 337,610 340,808 268,396 260,662 19 20 21 22 23 218,229 234,453 253,082 200,866 202,805 * For comparative purpose, the earnings per share had been adjusted to reflect the bonus issue of 1 for every 2 existing ordinary shares which was completed on 21 September 2022. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 19
GROUP QUARTERLY PERFORMANCE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2023 In RM’000 First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended 31.03.2023 Revenue 229,256 222,350 363,810 297,642 1,113,058 Cost of sales (119,985) (108,798) (213,063) (182,426) (624,272) Selling & marketing expenses (19,368) (20,837) (38,267) (7,240) (85,712) Administrative expenses (27,937) (28,156) (40,648) (64,749) (161,490) Other income 2,665 2,829 3,051 18,005 26,550 Operating profit (include other income) 64,631 67,388 74,883 61,232 268,134 Finance cost (1,325) (1,248) (1,904) (1,769) (6,246) Impairment losses on financial assets - - - (3,042) (3,042) Share of net results of associate 506 393 493 424 1,816 Profit before taxation 63,812 66,533 73,472 56,845 260,662 Taxation (17,618) (16,808) (19,826) (3,605) (57,857) Profit after taxation 46,194 49,725 53,646 53,240 202,805 Profit after taxation attributable to owners of the company 47,038 50,567 54,374 55,241 207,220 Earnings per share (sen)* 4.47 4.80 5.17 5.26 19.70 Dividend per share (sen) 3.00# 2.00 2.00 2.25 9.25 400,000 5 350,000 300,000 250,000 200,000 150,000 50,000 100,000 0 0 2 1 3 4 Q4 Q3 Q2 Q1 229,256 64,631 4.47 3.00 4.80 2.00 5.17 2.00 5.26 2.25 67,388 74,883 61,232 66,533 73,472 56,845 49,725 53,646 53,240 50,567 54,374 55,241 63,812 46,194 47,038 222,350 363,810 297,642 Earnings per share (sen) Dividend per share Revenue Operating profit Profit before taxation Profit after taxation Profit after taxation attributable to owners of the company * Bonus issue adjustment accounted for. # The first interim dividend of 3 sen per ordinary shares is calculated based on the share capital prior to the bonus issue. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 20 PERFORMANCE
DIVIDEND HIGHLIGHTS Financial Year Financial Period Date of Payment Type of Dividend Net Dividend (sen) Dividend Paid (RM’million) Total Dividend Payout (RM’million) Dividend Payout Ratio (%) 2023 4Q23 06-Jul-23 Interim Dividend 2.25 28.2 103.2 50.9% 3Q23 06-Apr-23 Interim Dividend 2.00 25.0 2Q23 12-Jan-23 Interim Dividend 2.00 25.0 1Q23 06-Oct-22 Interim Dividend 3.00 25.0 2022 4Q22 07-Jul-22 Interim Dividend 3.75 31.3 104.3 52.0% 3Q22 07-Apr-22 Interim Dividend 3.75 31.3 2Q22 06-Jan-22 Interim Dividend 3.00 25.0 1Q22 07-Oct-21 Interim Dividend 2.00 16.7 2021 4Q21 08-Jul-21 Interim Dividend 4.00 33.4 100.1 39.6% 3Q21 08-Apr-21 Interim Dividend 3.00 25.0 2Q21 08-Jan-21 Interim Dividend 3.00 25.0 1Q21 08-Oct-20 Interim Dividend 2.00 16.7 2020 4Q20 07-Aug-20 Interim Dividend 2.50 20.9 95.3 40.6% 3Q20 15-Apr-20 Interim Dividend 3.00 25.0 2Q20 08-Jan-20 Interim Dividend 3.00 24.7 1Q20 09-Oct-19 Interim Dividend 3.00 24.7 2019 4Q19 10-Jul-19 Special Dividend 0.25 1.9 97.1 44.5% Interim Dividend 3.00 23.6 3Q19 10-Apr-19 Interim Dividend 3.00 22.6 2Q19 09-Jan-19 Interim Dividend 3.25 24.5 1Q19 10-Oct-18 Interim Dividend 3.25 24.5 DIVIDEND PAYMENT PER ORDINARY SHARE FOR THE LAST 4 QUARTERS SUMMARY OF DIVIDEND PAYOUT FOR FY2019 TO FY2023 OCT 2022 APR 2023 JAN 2023 JUL 2023 3.00 SEN 2.00 SEN 2.00 SEN 2.25 SEN Total dividend payout (RM’million) Dividend payout ratio (%) Total dividend payout (RM’million) Dividend Payout Ratio (%) FY2019 FY2020 FY2021 FY2022 FY2023 120 70 0 0 20 20 10 40 30 60 40 80 50 100 60 INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 21
SHARE PRICE PERFORMANCE SUMMARY OF BENCHMARK INDEX MOVEMENT Matrix Share 1 April 2021 - 30 June 2022 (RM) Matrix Share 1 April 2022 - 30 June 2023 (RM) Variance (%) KLSE Composite Index 1 April 2022 - 30 June 2023 KLSE Property Index 1 April 2022 - 30 June 2023 Opening 1.29 1.55 20.2% 1,602.41 717.44 Closing 1.57 1.41 -10.2% 1,376.68 689.76 Movement 0.28 -0.14 -225.73 -27.68 Average 1.44 1.49 3.5% 1,465.46 664.36 Lowest 1.27 1.33 4.7% 1,373.36 599.78 Highest 1.67 1.67 0.0% 1,607.29 734.44 Range 1.27 - 1.67 1.33 - 1.67 1,373.36 - 1,607.29 599.78 - 734.44 Median 1.43 1.49 1,458.67 665.37 Matrix Share 1 April 2021 - 30 June 2022 (units) Matrix Share 1 April 2022 - 30 June 2023 (units) Variance (%) KLSE Composite Index 1 April 2022 - 30 June 2023 (units) KLSE Property Index 1 April 2022 - 30 June 2023 (units) Average volume 855,132 886,213 3.6% 171,571,019 130,302,982 Volume median 621,150 582,450 -6.2% 152,863,500 119,548,200 Notes Opening Value on 1 April Closing Value on 30 June Movement Difference of value between opening and closing Average Average value for the whole period (Total/no. of days) Range The gap between lowest and highest value Median Middle value for the preriod MATRIX SHARE PRICE INDEX 1 APRIL 2022 - 30 JUNE 2023 1 April 2021 - 30 June 2022 KLSE Composite Index 1 April 2022 - 30 June 2023 1 April 2022 - 30 June 2023 KLSE Property Index 1 April 2022 - 30 June 2023 1.3 1.1 0.8 1.2 0.9 1 INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 22 PERFORMANCE
STATEMENT OF VALUE ADDED DISTRIBUTION AND SIMPLIFIED FINANCIAL STATEMENT Beyond direct financial values such as revenues and earnings, Matrix continues to focus on the creation of indirect financial values as per the following: VALUE DISTRIBUTION STATEMENT (RM’000) Further explanation on the Group’s financial performance for FY2023 is provided for in the Management Discussion & Analysis. SIMPLIFIED STATEMENT OF ASSETS (RM’000) SIMPLIFIED STATEMENT OF LIABILITIES AND SHAREHOLDERS’ EQUITY (RM’000) Monies Distributed for Community Development Trade and Other Receivables Retained Earnings Economic Value Retained Deposits, Cash and Bank Balances Inventories Other Reserves Repayment to Providers of Capital Deferred Tax Assets Long-term and Deferred Payables Government (Income Tax) Investment Properties Trade and Other Payables Payments to Suppliers and Partners Right-of-use Assets Share Capital Payments to Employees Property, Plant and Equipment Total Borrowings 500,000 1,500,000 1,200,000 1,200,000 1,000,000 400,000 800,000 300,000 900,000 400,000 200,000 600,000 200,000 100,000 300,000 0 0 0 -200,000 FY2023 FY2023 FY2023 FY2022 FY2022 FY2022 FY2021 FY2021 FY2021 92,566 219,181 285,925 92,564 210,693 243,604 93,008 239,982 329,012 87,726 456,003 184,285 8,492 845,486 8,590 944,365 432,130 934 171,194 4,699 226,198 67,530 412,301 242,879 3,620 961,315 241,148 2,863 961,315 511,040 2,743 961,315 57,753 132 62 30 382,199 197,832 37,805 22,580 36,976 21,175 22,148 24,510 8,263 620,602 714,362 778,768 1,045,220 153,132 237,507 1,303,127 1,266,152 202,138 250,232 1,171,150 (2,910) INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 23
ACCOLADES FOR FINANCIAL YEAR ENDED 31 MARCH 2023 THE JOURNEY OF AN AWARD-WINNING DEVELOPER INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 24
THE STARPROPERTY MALAYSIA AWARDS - ALL-STARS AWARD (TOP 10 LISTED COMPANY) Matrix Concepts Holdings Berhad THE STARPROPERTY MALAYSIA AWARDS THE LUXURY AWARD – BEST LUXURY PROPERTY DEVELOPMENT (LANDED) Resort Villa (Excellence) MALAYSIA PROPERTY AWARD™ PROPERTY CEO 2022 Ho Kong Soon PROPERTYGURU ASIA AWARDS MALAYSIA WITH IPROPERTY TOWNSHIP DEVELOPMENT OF THE YEAR Bandar Sri Sendayan BEST DEVELOPER (SOUTHERN MALAYSIA) Matrix Concepts Holdings Berhad BEST MEGA TOWNSHIP DEVELOPMENT Bandar Sri Sendayan THE EDGE BILLION RINGGIT CLUB HIGHEST RETURN ON EQUITY OVER 3 YEARS Matrix Concepts Holdings Berhad THE EDGE TOP 10 PROPERTY DEVELOPERS AWARDS 2022 Matrix Concepts Holdings Berhad THE EDGE PROPERTY EXCELLENCE AWARDS OUTSTANDING PROPERTY CEO AWARD 2022 Ho Kong Soon MALAYSIA DEVELOPER AWARDS NUMBER 1 IN TOP 10 FOR MARKET CAPITALISATION OF RM1 BILLION AND ABOVE Matrix Concepts Holdings Berhad THE STARPROPERTY MALAYSIA AWARDS EXCELLENCE THE NEIGHBOURHOOD AWARD (BEST COMPREHENSIVE TOWNSHIP - ABOVE 2,000 ACRES) Bandar Sri Sendayan THE STARPROPERTY MALAYSIA AWARDS HONOURS THE FAMILY-FRIENDLY AWARD - BEST FAMILY - CENTRIC DEVELOPMENT (LANDED) - BEYOND GREATER KL Bayu Sutera INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 25
1 2 3 4 RECOGNITION FOR ESG PROPERTYGURU ASIA AWARDS MALAYSIA WITH IPROPERTY SPECIAL RECOGNITION AWARD - Special Recognition in CSR KSI STRATEGIC INSTITUTE FOR ASIA PACIFIC - Malaysia Outstanding ESG Impact Corporate Excellence Award 1 2 3 4 PROPERTYGURU ASIA AWARDS MALAYSIA WITH IPROPERTY SPECIAL RECOGNITION AWARD - Special Recognition in ESG ACES AWARD - Sustainability Rising Star Award
KEY MESSAGES 28 Chairman’s Statement 38 Management Discussion & Analysis FORESIGHT AND ENTHUSIASM
CHAIRMAN’S STATEMENT TO OUR ESTEEMED SHAREHOLDERS, On behalf of the Board of Directors of Matrix Concepts Holdings Berhad (“Matrix” or “The Group”), I am pleased to present the annual report and audited financial statements for the financial year ended 31 March 2023 (“FY2023”). ECONOMIC RECOVERY GAINING MOMENTUM FY2023 presented itself as a year of transition. At the global front was the prevailing safety concerns of COVID-19, China’s move to end its stringent pandemic lockdown, the ongoing Russia-Ukraine conflict and increased material pricing, all of which merged to provide a global backdrop of economic uncertainty. Within Malaysia, following a tumultuous two years of living under the blanket of COVID-19, the nation is emerging, transitioning to an endemic phase and this has essentially changed the way we now conduct business. The nation’s political stability has strengthened following the general elections in 2022 and this has triggered expectancy of improved governance and policies, leading to economic growth. The opening up of economic sectors had brought a positive impact on the property and construction industry, among others. On the onset of FY2023, the number of property transactions rose by 17.2% year-on-year to register 188,002 transactions. This was valued at RM42.0 billion, representing a 16.3% increase year-on-year. By the year end of 2022, the total number of transactions recorded was 389,107, representing a 29.5% growth year-onyear. This amounted to a total value of RM179.10 billion, a 23.6% rise year-on-year. The continued recovery seen in the property industry is however not free from challenges. The ongoing increase in costs of raw materials used in construction such as steel and cement continue to impede industry growth. This is further compounded by the disruption to domestic and international supply chains, impacting adversely the supply and demand of various material, thus driving up prices significantly. DATO’ HAJI MOHAMAD HASLAH BIN MOHAMAD AMIN Non-Independent Non-Executive Chairman INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 28 KEY MESSAGES
CHAIRMAN’S STATEMENT The higher foreign labour costs, brought on by a freeze in intake due to pandemic containment measures, was still felt despite the lifting of restrictions in July 2022. In efforts to stem the depreciation of the ringgit and to curb inflation, Bank Negara Malaysia had revised the overnight policy rate (“OPR”) four times, each by 0.25 basis points within the Group’s financial year FY2023. As at 31 March 2023, the OPR stood at 2.75%, compared to 1.75% OPR within the Group’s financial year 2022. Consequently, banks and financial institutions revised their Base Lending Rate (“BLR”) upwards, leading to higher loan interest rates and borrowing costs. The property market is visibly recovering, given the implementation of various government stimulus such as the Malaysia Home Ownership Initiative (i-MILIKI) in providing stamp duty exemption for firsttime home-buyers as well as the 100% stamp duty exemption for the memorandum of transfer for houses priced at RM500,000 and below. The residential overhang situation showed significant improvement in 2022, registering a decrease in overhang value of 19.2% over 2021. This is reflective of Malaysia’s strengthening economy which recorded an encouraging performance with 8.7% gross domestic product (“GDP”) for 2022, far exceeding the 3.1% economic growth achieved in 2021. ACCELERATING OUR GROWTH Despite the challenges faced in FY2023, Matrix continued to harness its established and capable resources to navigate the Our positive performance in FY2023 speaks volumes of our resilience in managing the challenges faced in the property sector. Irama Biz - the lifestyle and retail hub of Irama Sendayan INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 29
CHAIRMAN’S STATEMENT economic hurdles in pursuit of excellence. This is reflected in the Group’s total revenue of RM1.1 billion in FY2023, representing a 24.7% increase over revenue in FY2022 of RM892.4 million. Our positive performance in FY2023 speaks volumes of our resilience in managing the challenges faced in the property sector and underpins the market confidence in us as reflected in our healthy valuations, being at par with book value. In the financial period under review, Matrix continued to refine and implement business strategies towards strengthening its financial and operational performance. Such strategies include focusing on cost and operational efficiencies, strategic timing of product launches, continued digitalisation of business processes and a strategic focus on our selected property segments. Prudent management of costs and cashflow was essential in preventing cost overruns and ensuring timely completion of projects. A strong working relationship with our supply chain proved instrumental in managing costs and progress of our projects. Higher construction material prices were mitigated by the Group’s in-house construction arm, offering cost savings and efficiency. Digital marketing campaigns was utilised heavily in the pandemic years and we continued this momentum, reaching out to potential buyers across targeted demographics to optimise our brand presence and product offerings. This shift in our marketing strategies towards digital platforms is also part of a larger drive to further enhance efficiency and to optimise operational expenditure. Matrix stands firm on our business doctrine to meet the needs of the potential buyer and local community. We continue to offer home ownership packages featuring right-priced, luxuriously-spacious homes and affordable financing, all encapsulated within a well-developed, vibrant township. PROPERTY DEVELOPMENT This doctrine has contributed to the Group’s revenue gaining momentum despite continued challenges posed by labour supply shortage. Meanwhile, revenue contribution from commercial and industrial property segments reduced by 53.3% to RM57.4 million in FY2023 as the Group focuses on strong demand for landed residential properties. FY2023 saw 15 new launches at Sendayan Developments worth RM1.2 billion in gross development value (“GDV”). The take-up rate for the Group’s properties across all projects stood at 84.0% for FY2023, demonstrating strong demand for our affordable-premium homes. This response is largely attributable to the increasing interest from property upgraders and first-time homebuyers from the Klang Valley. In addition, the growing inclination for Klang Valley residents to relocate outside of the city centre is made easier by remote and flexible working arrangements. Bayu Sutera entrance statement INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 30 KEY MESSAGES
Nurturing young talents at Matrix Global Schools CHAIRMAN’S STATEMENT The Group has in place a clear growth roadmap for the future to ensure its long-term role as a premier property developer and responsible community builder for the nation. This roadmap includes acquiring adequate landbank to ensure the sustainability and growth for the next 20 years. To further reinforce this long-term growth strategy, the Group has entered into a Sale & Purchase Agreement to acquire 1,382 acres in Negeri Sembilan with the completion expected in year 2024. As at 31 March 2023, the Group’s total landbank stands at 2,203.7 acres. INTERNATIONAL PROJECTS The Group has broadened its horizons internationally and projected its established name further. The launch of the Group’s third and latest Australian project, M333 St. Kilda in Melbourne, is a further testimony of its acceptance as a reputable property developer and construction company. The Group’s earlier projects, M. Carnegie and M. Greenvale, launched in 2016 and 2019 respectively, has proven itself the successful trail blazer in the Group establishing its development footprint in Melbourne. In Indonesia, Menara Syariah, a RM1 billion joint venture participation, has reached its 90% construction mark as of to date. Our presence in this grown market is attracted by its huge population, growing middle income group, rising purchasing power and commercially attractive property sector. The twin-tower, 29-storey Menara Syariah building is the company’s first Indonesian joint-venture (“JV”) project with local partners. Launched in 2019, it represents the first phase of our participation in developing the Islamic Financial District in PIK 2, which aims to attract leading international and domestic corporations to create a vibrant international commercial hub. EDUCATION On the education front, Matrix Global Schools (“MGS”) is experiencing a positive upturn, with total student enrollment of 659 students in FY2023 over 611 in FY2022, representing an increase of 7.9%. This is in part supported by the nation’s transition to the endemicity phase and growing assurance of public health and safety but more so, of the growing recognition of its high standards as an accredited teaching institution in Malaysia. MGS steadfastly maintains its established credentials of being the Top 5 teaching institutions in the country in the category of Private International Schools and Private Schools. This is reinforced by its academic prowess with outstanding IGCSE results of 99% passes, of which 47% of its students achieved A*-A and a further 87% achieving A*-C. The school believes in providing a holistic education beyond just academics and has incorporated various other aspects including a sporting curriculum and the performing arts. MGS has also re-established its English support centre to cater to the growing demand from the China and Korean market for a reputable teaching institution. HEALTHCARE Since the Group’s acquisition of the management of operations of Mawar Medical Centre (“Mawar”) in FY2020, it is now recognised as a healthcare centre of choice by the local community and its surrounding area. This is evident in the increased patient load with 56,089 patients in FY2023, representing an increase of 54.2% (FY2022: 36,378) yearon-year. Such is its demand that its current bed capacity of 48 beds has been increased to 57 beds in FY2023. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 31
We will be expanding into other therapeutic fields to strengthen its capacity as a holistic medical center to meet the needs of the local community. In serving a humanitarian cause, Mawar has provided much needed dialysis and welfare subsidies to 116 deserving patients in FY2023. TALENTED WORKFORCE At the core of our operations lie our most valuable asset, our workforce, numbering 912 staff across the Group and Mawar. To meet their development needs and assist them reach their fullest potential, we have invested into various training programmes, totalling RM0.31 million in FY2023. Such capacity building programmes serve an intrinsic benefit – it strengthens succession planning and hence, minimises disruption to business operations in the event of staff movement. A surgical procedure in progress at Mawar Matrix remains one of the top dividend yielding companies listed on Bursa Malaysia Securities Berhad. COMMITMENT TO SHAREHOLDER REWARD The Group’s healthy financial position and sound cashflow management is attributable to its strong focus on operational sustainability and financial prudence, all designed to bring about value creation for our stakeholders. This financial approach has been instrumental in keeping the Group’s 9-year tradition of issuing dividends on a quarterly basis, the first company in Malaysia to adopt such a policy. This is accompanied by quarterly analyst briefings to reinforce the Group’s governance and transparency of disclosure. The Group’s total dividend payout for FY2023 was RM103.2 million, compared to RM104.3 million in FY2022. This represents a 50.9% payout of profit after tax, making Matrix one of the top dividend yielding companies listed on Bursa Malaysia Securities Berhad. This further aligns with our commitment to deliver sustainable returns to shareholders with consistent dividends. ACCOLADES I am pleased to share that the Group’s commitment to firmly drive an ESG mindset throughout its operations has resulted in consistent award recognition from various esteemed bodies. The ACES Awards Council and MORS Group has awarded Matrix the Sustainability Rising Star Award in recognition of the mindful corporate action and encompassing sustainable perspectives. CHAIRMAN’S STATEMENT INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 32 KEY MESSAGES
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