ABOUT US
Hong Leong Asia Ltd. ("HLA" or the "Group") is a diversified Asian multinational with core businesses in Building Materials and Powertrain Solutions1. Headquartered in Singapore with an operating network spanning Singapore, Malaysia and China, HLA was incorporated in Singapore on 30 August 1963, and listed on the mainboard of the Singapore Exchange (SGX: H22) since 1998.
The Group's industry-leading businesses comprise China Yuchai International Limited ("CYI" or "Yuchai") with its principal operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") under the Powertrain Solutions portfolio, as well as Island Concrete (Private) Limited ("Island Concrete"), R3 Precast of HL Building Materials Pte. Ltd. ("HLBM") and Tasek Corporation Berhad ("Tasek") under the Building Materials portfolio. Collectively, the Group works closely with customers to develop and deliver innovative and sustainable solutions for cities of the future.
OUR PARENT COMPANY
Headquartered in Singapore, the Hong Leong Group2 is a globally-diversified company with gross assets of over S$40 billion in property investment and development, hotel ownership and management, financial services and industrial enterprises across Asia Pacific including China, the Middle East, Europe and North America.
1 Formerly known as diesel engines
2 Information as at 26 March 2024
CONTENTS
01 | Corporate Profile | 24 | CEO's Operational Review | 215 | Analysis of Shareholdings |
02 | Our Vision and Core Values | 28 | Our Portfolio | 217 | 5-Year Financial Summary |
03 | Financial Highlights | 32 | Investor Communications | 218 | Notice of Annual General Meeting |
04 | 60 Transformational Years | 36 | Sustainability Board Statement | 227 | Additional Information on Directors |
Seeking Re-election at the 63rd Annual | |||||
06 | What We Do | 40 | Our Sustainability Highlights | ||
General Meeting | |||||
08 | How We Create Value | 50 | Corporate Directory | ||
Proxy Form | |||||
12 | Chairman's Message | 52 | Corporate Governance Report | ||
Operating Network | |||||
16 | Board of Directors | 90 | Financial Report | ||
21 | Management Team |
CORPORATE PROFILE
POWERTRAIN SOLUTIONS
CYI, a subsidiary of HLA, is a Bermuda investment holding company established in 1993 and is listed on the New York Stock Exchange (NYSE:CYD). Its principal operating subsidiary, GYMCL, is one of the leading Powertrain Solutions manufacturers in China.
for each application. It also produces electrical powertrain solutions for new energy vehicles.
Based in Yulin City, Guangxi Zhuang Autonomous Region, GYMCL manufactures, assembles and sells a variety of light, medium and heavy-duty engines for trucks, buses, passenger vehicles, industrial and agriculture equipment, marine and power generation applications, as well as high-value core spare partsGYMCL has an extensive sales and distribution network in China and a presence in 18 other countries, with more than 3,000 service stations in domestic markets and globally. It's Research and Development Institute also holds a portfolio of over 3,000 patents and partnerships focused on energy efficiency, new energy components, high-power electrical systems as well as hybrid and alternate fuels engine technologies.
BUILDING MATERIALS
HLA's Building Materials portfolio is one of the longest-established integrated building materials businesses in Southeast Asia, with subsidiaries across the value chain from raw materials to cement, ready-mix concrete and precast.
and sale of cement, cement-related products and ready-mixed concrete in Peninsular Malaysia.
In Singapore, the Building Materials group of key companies ("BMG") comprising wholly-owned Island Concrete and HLBM, supplies all grades of ready-mixed concrete as well as precast concrete elements for the real estate and built environment sectors in Singapore.
To deliver sustainable growth and create long-term shareholder value, the Group actively seeks partnerships and investments synergistic to its Building Materials businesses. HLA currently holds effective equity stakes in:
• Singapore Cement Manufacturing Company (Private) Limited (50% stake)
• HL-Sunway JV Pte Ltd (51% stake)
In Malaysia, Tasek, a subsidiary of HLA, is one of the largest integrated cement manufacturers, adding to the Group's Building Materials portfolio. Tasek's key business activities encompass the manufacturing
• Cement Industries (Sabah) Sdn Bhd (29.48% stake)
• BRC Asia Limited (20.15% stake)
To learn more, visitwww.hlasia.com.sg
OUR VISION
Established Asian multinational known for our Market Leadership and Financial Strength, working closely with our customers to Develop and Deliver Sustainable and Innovative Urban Solutions for cities of the future.
OUR
CORE VALUES
KEEP THE CUSTOMER FIRST
Stay ahead of our customers' need by constantly having our fingers on the market's pulse and ensuring our products and services exceed their expectations today and in the future
MIND THE DETAILS THAT MATTER
Sometimes, small things can make a big difference, so while we're growing quickly, let's make sure we continue to maintain our attention on things - big and small - that matter
DO THE RIGHT THINGS
Maintain the highest level of business ethics and take personal ownership to conduct ourselves in an honest and responsible manner in order to do what's right
THINK FAST, WORK FASTER
Let's make sure we take the time to think and plan, but also make sure we take decisive action to put our plans into action and drive our businesses forward
CREATE AN IMPACT BEYOND OUR
BUSINESS
Let's ensure our products and our actions as an organisation help nurture an inclusive society and contribute towards environmental sustainability
FINANCIAL | |||
HIGHLIGHTS | |||
REVENUE* | PROFIT BEFORE TAX* | ||
(S$ million) | (S$ million) | ||
2023 | 4,081 | 2023 | 166 |
2022 | 3,881 | 2022 | 124 |
2021 | 4,933 | 2021 | 132 |
2020 | 4,496 | 2020 | 195 |
2019 | 4,094 | 2019 | 200 |
ATTRIBUTABLE PROFIT | EARNINGS PER SHARE | ||
(S$ million) | (cents) | ||
2023 | 65 | 2023 | 8.7 |
2022 | 55 | 2022 | 7.3 |
2021 | 60 | 2021 | 8.0 |
2020 | 47 | 2020 | 6.3 |
2019 | 34 | 2019 | 4.6 |
DIVIDEND PER SHARE | REVENUE BY COUNTRY | ||
(cents) | (S$ million) |
HONG LEONG'S BEGINNINGS
60
The start of a Singapore pioneer's remarkable journey
1928
Hong Leong Group Founder, Mr Kwek Hong Png left his native China at age sixteen to build a better life. He worked hard in his brother-in-law's hardware business for 10 years and took English classes with the dream to start his own business.
1941
Uniting family to seed ambition
With a decade of savings, our Founder started his own business in a red, two-storey shophouse along Beach Road trading building materials and paint among other things. He invited his three brothers to join him from China and named the business after one of his brothers, "Hong Leong", which connotes how majestic mountains and oceans all have modest beginnings in the form of rocks and streams.
1942 - 1945
Opportunity knocks during businesses crumbled, tumultuous times
During the Japanese occupation, as other
Hong Leong used its large warehouse and resources to buy and house building materials for sale, allowing more capital to be generated to expand the business further. Hong Leong was hence, able to diversify and grow much faster than others.
Cementing long-lasting partnerships, riding on economic growth
In the 50s, Hong Leong partnered with Onoda Cement and Mitsui & Co., who were pioneers in Asia for building materials, and leveraged the partnerships to offer superior products, further growing the business through Singapore Cement Manufacturing Company ("SCMC"). This also led to new opportunities amidst a developing Singapore - acquiring land and expanding into consumer financing. During this period, Hong Leong also entered the Malaysia market, first establishing Tasek Cement Berhad, followed by setting up a Hong Leong Malaysia branch to expand its real estate and banking activities.
Era of urbanisation during Singapore's first decade
Island Concrete (Private) Limited was established, being the first ready-mix concrete supplier in Singapore. It's first commercial project was Tanglin Shopping Centre, followed by well-known infrastructure projects such as Singapore's Mass Rapid Transit System and Changi Airport Terminal 1 in the years to come.
After acquiring part of Hume Far East Group and renaming it Hong Leong Industries Manufacturing Limited ("HLIM"), in anticipation of the Housing Development Board's policy to incorporate more precast elements in Singapore's buildings, HLIM began to focus on precast production and was also successful in helping the construction industry with labour saving measures during a time of rising labour costs.
1950s - 1960s
1970s - 1980s
Hume Plastics (Malaysia) Limited (today known as Hong Leong
Asia) was incorporated in Singapore on 30 August 1963
TRANSFORMATIONAL YEARS
Hong Leong Group undergoes Transition
In a major restructuring exercise of the Group, Hong Leong Asia ("HLA") consolidated all the Building Materials businesses of Hong Leong Group and is listed on the Singapore Stock Exchange.
HLA became a substantial stakeholder of Tasek Corporation Berhad ("Tasek") (formally known as Tasek Cement Limited), a pioneer and major player of cement in Malaysia.
First Foray into China Mr Kwek Leng Peck led the group to acquire majority stake in Guangxi Yuchai Machinery Co., Ltd. ("GYMCL"), a Chinese diesel engine manufacturer listing it under China Yuchai International ("CYI") on the New York Stock Exchange.
Singapore modernises into an iconic island-city state beyond economic success
Island Concrete secured a contract to supply 1.2 million cubic metre of ready-mix concrete for the iconic Marina Bay Sands Integrated Resort.
HLA expanded Tasek's cement production capacity in Ipoh and soon after, established a ready-mix concrete business in Central Malaysia.
SCMC expanded its cement terminal operations with an added 24,000 tonne capacity to enable the storage of Portland Flyash Cement from its Japanese partners to provide the Singapore market with lower-carbon cement.
Embedding sustainability and innovation to transform
The Building Materials business under Singapore launched two state-of-the-art facilities under its precast and ready-mix concrete arms to enable greener, automated operations while Malaysia created a new subsidiary to co-process waste materials to be recycled and used in its products and operations.
MOBILITY SECTOR REMAINS CORE TO HLA AS CHINA EXPERIENCES EXPONENTIAL GROWTH
GYMCL set up its first research and development centre in Nanning, Guangxi, to develop and test new prototypes to manage national emission standards and deliver energy efficient solutions.
GYMCL and Rolls-Royce announced a Joint Venture to produce MTU engines at GYMCL's primary facility for the Chinese off-road market segment.
GYMCL set up its second research and development centre in Wuxi High Tech Zone to develop and test new prototypes to manage emission standards and deliver energy efficient products and fuel cell solutions.
POWERTRAIN SOLUTIONS
RAW MATERIALS (Steel and Metal Alloys)RAW MATERIALS (Metals, Plastic, Electrical Parts)
CASTING / FORGING
COMPONENT MANUFACTURINGMACHININGENGINE ASSEMBLY & TESTINGTRANSPORTATIONPRODUCTS
Truck
Bus / Passenger Coach
Industrial / Others
DISTRIBUTION
BUILDING MATERIALS
Cement Production
QUARRIESRAW MILLS / PREHEAT / KILNGRINDINGTRANSPORTATION
(Rail / Road)
PRODUCTS
Ready-mix concrete
Trading Aggregate/Cement
STORAGE AND/ OR PACKING
Cement
Precast concrete
DISTRIBUTION
HOW WE CREATE VALUE
WHAT SETS US APART
At HLA, we see an unparalleled opportunity to grow our businesses and create positive impact beyond our businesses.
Competitive advantages as a diversified Asian multinational with core expertise in Building Materials and Powertrain Solutions
Industry leader in pioneering and innovating sustainable urban solutions for cities and communities
Key strategic growth thrusts to achieve HLA's aspiration of becoming a provider of sustainable and innovative urban solutions for cities of the future.
OUR ASSETS
Diverse team of reliable, resilient and responsible employees providing urban solutions for various customer industries
Powertrain Solutions>3,000 patents>3,000 service stations in Chinese domestic markets and globallyR&D laboratoriesBuilding Materials22 batching plants in 15 locations across Singapore and Malaysia>300 concrete mixer trucks in
Singapore and MalaysiaCement plant in MalaysiaLimestone and granite quarries
People
Diversified workforce spanning Singapore, Malaysia and China
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Disclaimer
Hong Leong Asia Ltd. published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 March 2024 01:04:11 UTC.