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Dear Shareholders,

On behalf of the Board of Directors, I am pleased to present the Annual Report and the Audited Financial Statements of the Group and the Company for the financial year ended 31st December 2020.


The year 2020 was an unprecedented challenging year when the World Health Organisation (WHO) declared the COVID -19 coronavirus outbreak a pandemic on March 11 2020. Within a week, our Malaysian Government took immediate measures to contain the spread of the virus through nationwide lockdowns and the closing of international borders with the implementation of the Movement Control Order ( MCO ) on March 18 2020. The pandemicwith the stringent SOP measures to curb the spread has caused major disruptions to business operations locally and worldwide, ultimately resulting in an immediate slow down of both the local and global economy.

Despite the challenging economic situation, the Group’s solar energy business, both the installed 11MWac capacity solar plants in Penang and Kedah, owned and operated by the Group were minimally affected and continued to achieve solar renewable energy revenue of RM 8.3 million in 2020.

The Group’s strategic direction to expand its renewable energy businesses and gradual exit from the logistics business, has resulted in the Group unlocking the value of its investment in its last remaining warehouse project in China througha conditional Sale and Purchase Agreement on 19 December 2019. The Group had announced that Integrated Logistics (H.K.) Limited, an indirect 70%-owned subsidiary of Integrated Logistics Berhad, had entered into a conditional sale and purchase agreement with SWJ CN Logiport Pte. Ltd. for the disposal of its entire 65% equity interest in Integrated Etern Logistics (Suzhou) Co. Limited (“Wujiang Disposal”) and of which the closing of the conditional Agreement was completed on 1 April 2020.

The cash position of the Group has improved resulting from the completion of the Wujiang Disposal. The improved liquidity and lower gearing will act as an enabler for the Group to implement its strategic expansion plans in solar renewable energy projects.

The repair and reconstruction works of Hengyang’s Deqiao project had been completed. On 3 September 2020, the Chinese Authorities issued the Official Operating Licence for Deqiao to commence commercial operations. Hengyang’s main businesses are not adversely affected by the COVID-19 pandemic. With the additional revenue contribution from the Deqiao project, Hengyang’s group revenue and profitability are projected to increase in future years which in turn will increase our investment value in Hengyang.


The year 2020 showed the consequences of a pandemic of which the damage inflicted is unprecedented. In view of the pandemic, the Group has reduced its non-essential expenditure to conserve cash to expand in the renewal energy projects.

With the continuing encouragement from the Malaysian Government through initiatives and pro active measures to increase the overall energy contribution from renewable energy sources from 2% currently to 20% by year 2025, the Group sees great potential and vast opportunities in this growing renewable energy industry.

With the Group’s proven track record in implementing and operating solar project coupled with the improved cashflow, we are well positioned to scale up our solar businesses to generate higher sustainable earnings and cashflow in future years for the Group.

On behalf of the Board of Directors, I wish to thank and express our gratitude to the management team and staff for their dedication and commitment as we continue to strive to grow the business together. Last but certainly not least, I would like to express our appreciation to our valued customers, business partners, bankers, government departments and agencies, shareholders & stakeholders for their continuing support to the Group. With this continuous support from all parties, we will dedicate full efforts to improve profitability and enhance the shareholders’ value.


Datuk R. Karunakaran