1.0 COMPANIES PROFILE
Lebtech Construction Sdn Bhd (“LCSB”) was incorporated in November 1988 and began its business upon incorporation with housing development as its main activity and afterwards expanded to become a construction company under a wholly owned subsidiary of a company listed on the Kuala Lumpur Stock Exchange (KLSE). LCSB is also a Class “A” contractor and has attained the highest G7 classification with the Construction Development Board (CIDB). LCSB has expanded rapidly since 1998 under its diversification strategy, and it recently secured projects amounting to more than RM1.50 billion which are sufficient to generate a reasonable level of profits over the next few years. Along with the diverse expansion, LCSB has progressed significantly and is currently involved in various prestigious projects in Malaysia.
Total revenues of RM75.0 million and total assets of RM155.0 million was generated by LCSB and its approximately 150 employees while its total equity is RM100.0 million, or 65% of total assets. With more than 20 years of experience in the business, LCSB is financially strong and can afford to offer the very best of professional expertise to its clients and business associates. LCSB’s vision is to establish itself as a highly credible and respected organization in the construction industry. Meanwhile, its mission is to attain success as a socially responsible Malaysian corporation that excels in all its business ventures.
Lebar Daun Development Sdn Bhd (KLD) as the second company is related to LCSB via its directors. The company was incorporated in December 1998 and commenced its operations in October 1999 with the property development as the main activity, where it has expanded significantly via its current involvement in prestigious projects across Malaysia. Its current land bank consists of more than 1000 acres of land with a total gross development value (GDV) of approximately RM5.0 billion. KLD was supported by its more than 10 years of experience in property development and its excellent financial strength and professional expertise, it can afford to offer the very best in property development and construction to house buyers, joint venture partners, suppliers, and business associates.
KLD and its approximately 50 employees generate total revenues of RM80.0 million and total assets of RM213.0 million. The total equity is RM16.0 million, or 20% of total assets. Its mission is to succeed as a model organization in property development renowned for its quality and beauty in every property developed and delivered to its customers. To accomplish the mission, the company has undertaken and successfully completed several projects across Malaysia worth more than RM700.0 million.
2.0 RELATIONSHIP OF THE TWO SELECTED COMPANIES
These two companies are related to their directors who is the managing directors are brothers. The group is led by an executive chairman who is the eldest brother. However, both companies operate as separate entities based on their main activities.
KLD’s main business are the sales of properties such as residential houses, shop lots, and office buildings. It planned to develop the lands it owns into residential townships and business centres and will continue looking for new lands to develop. Means, it owns the lands to be developed, it sells the properties developed on the lands, and the main income of the company is collected from the purchase of the properties.
A client–supplier relationship exists between these two companies, where LCSB is awarded the contract to construct most of the development on the lands which is the main income generator of the company plus the contract awarded by the government’s contracts obtained via the tender application.