STATEMENT

Admiral Tan Sri Dato’ Setia Mohd Anwar Bin Hj. Mohd Nor (R)
Non-Independent Non-Executive Chairman

In spite of the economic downturn and slowpace of recovery, the Group remained resolute in its commitment to seizing opportunities during times of crisis. We are now in the next phase of our strategic evolution, which has involved the internalization and restructuring of our business and top management.

Very few economic sectors were spared the effects of the Covid-19 pandemic and our property development and hospitality divisions being the mainstay of our Group were similarly affected. Construction and sales activities have also been halted since the first MCO in March 2020 and this has adversely affected our financial performance for the year 2020.

Internationalisation and The Group’s Restructuring

Our revised strategy will see the Group focusing on more • opportunities and create value for our shareholders and partners. • Focusing on the fundamentals: Products. Services. Branding. Culture. • Establishing partnerships with third parties which will diversify our capital sources. • Enable our business to grow and to take advantage of future opportunities in the market as they arise.

Financial Statement

In 2022, the Group reported a net loss of RM107.59 million, compared to a profit of RM3.12 million the previous year, with revenue of RM46.34 million compared to RM 104.91 million in the previous year. As of December 31, 2022, the Group had total assets of RM1.21 billion and total equity attributable to shareholders of RM731.16 million.

The Group's gearing ratio, calculated as the total debts to total equity capital at 0.23 compared to 0.24 in the previous year. In light of the uncertain global economic outlook and Malaysia’s economic recovery, it is essential to explore new ideas and approaches to enhance competitiveness. Despite the challenges, we remain confident in the Group's capability and capacity as we continuously monitor our growth.

Country Heights Holdings Berhad was established in 1984 by Tan Sri Lee Kim Yew as a property development company, offering uniquely designed country-styled homes in Malaysia. Today, the Group has expanded to become a lifestyle property developer with a diverse business portfolio in Hospitality, Wellness, Lifestyle, Tourism, and Investments, and has an impressive track record as the master developer of over 560 million square feet of space worldwide.

The Group’s Focus

The Group will maintain its focus on key divisions such as Property Development, Property Investment, Resort & Hospitality, and Healthcare in order to achieve sustained business growth. With over 30 years of real estate experience, CHHB will continue to deliver distinctively designed projects that reflect the Group's vision of "Ever Searching for Better Living.

To boost future earnings growth, the Group is looking to strategically expand its sizable land bank through acquisitions and strategic joint ventures, while also prioritising leasing and rental activities.

Aside from residential developments, the Group has built shopping malls like The Mines Shopping Mall, exhibition centres like Excel London, offices, schools, hotels, and golf courses like Pecanwood and Mines Resort and Golf Club. Despite the challenging economic environment, the Group is optimistic about its future prospects and committed to delivering long-term growth for its shareholders.

Property Development

The company's focus will be on developing and managing highend bungalow properties to cater to customer needs and create demand. Specifically, the property division of the Group plans to launch 1,000 new double-story terrace homes in strategic locations throughout Malaysia, including Selangor, Kedah, Melaka, and Negeri Sembilan, utilizing the 5S concept of Smart living, Sport, Solar, Security, and Service.

We will remain optimistic about the prospects of our Property Development Division given the advantageous location of our land banks, and will adjust our products and pricing accordingly to align with market trends.

Healthcare – Wellness Tourism

‘International Medical Hub’
The Group is undergoing a transformation of its Palace of the Golden Horses, Mines Waterfront Business Park Tower 4 & 5, and adjacent 12-acre recreational land property into a new 200-acre development. This development will be branded as an International Medical Hub, with a focus on medical tourism, particularly in areas of treatment, prevention, rejuvenation, and rehabilitation.

We anticipate that this development will become a significant wellness attraction in the ASEAN region, especially in the wake of the COVID-19 pandemic, as health awareness and consciousness continue to rise. The medical tourism industry is a lucrative market in the region, and we are well-positioned to take advantage of this trend, offering top-notch facilities and services to both domestic and international visitors.

To solidify our position as a leading property developer in the region, we recognize the importance of keeping up with the latest digital trends, including blockchain and security token offerings (STOs). We believe that tokenizing our real estate assets is visionary, as it enables the creation of digital securities that represent ownership in a specific property or portfolio of properties. This makes it easier for investors to access and trade real estate assets, similar to traditional securities, on a blockchain platform.

While it is a new and emerging area for the Group, we believe it has the potential to revolutionize the real estate market.

Despite the turbulence in the market, we remain committed to the long-term investment and development of our business, keeping our fundamentals healthy to serve our customers' needs going forward.

MIECC – Exhibition and Convention

The pandemic posed significant challenges for MIECC, with all planned events either indefinitely postponed or cancelled due to COVID-19. Despite being one of the hardesthit economic sectors, MIECC remains optimistic and resilient about the reopening of the event industry. In 2022, the convention hosted seven major events.

MIECC's primary focus is on internal upgrades and improvements while establishing relationships with strategic partners to prepare for the eventual reopening of the industry. The emphasis will be on developing our own programs and intellectual property, with a concentration on consumer entertainment and concerts.

Environmental Sustainability Practices - Going Green

The Group has taken various project plans which have been implemented towards energy savings and sustaining a “clean environment”. Negative ion energy ceiling boards, a natural ionizer and air purifier in LakeView Residency in Cyberjaya was our first project which used a negative ion energy ceiling board and also its first development in Malaysia to introduce negative ion energy ceiling boards. The energy ceiling board works as a natural ionizer and air purifier. This purification process improves air quality by helping to purge airborne particulates such as dust and germs. With the installation of the energy ceiling boards, the homeowners will enjoy fresher, cleaner and healthier environment.

Solar Energy, Recycle and Reduce

Through Malaysia’s Renewable Energy Policy, which includes a measure for promoting the popularization of solar power, the government aims to cover 73% of its electricity by renewable energies by the year 2050. Along with that, we have carried out solar energy exercise at a smaller scale at our hotel and office premises.

Our employees are encouraged to practice the 5R’s - ‘Refuse, Reuse, Reduce, Repair and Recycle’ in their daily activities both at home as well as at the working place. This practice is encouraged as it supports the segregation of garbage for recycling/disposal. i.e, minimise paper usage, electric and water. For example, we are using lake water to water the plants and run the toilets.

Under Country Height’s core values, NATURE, is about establishing a harmonious relationship with nature through the preservation and enhancement of nature’s finest gifts. For instance, we reduce the use of plastic bottled water at meetings and events by using glass bottles at almost all our meetings

Corporate Governance

The Board adheres to the recommendations outlined in the Malaysian Code on Corporate Governance and strives to uphold the principles of good corporate governance to enhance and safeguard shareholder value.

Further details on these measures can be found in our Corporate Governance Overview Statement, located on pages 50 to 60 of this Annual Report The Group recognizes that striking a balance between delivering strong business results and prioritizing people, social responsibility, and environmental stewardship is crucial to increasing shareholder value.

We remain committed to conducting our business with integrity and ethical standards, while also reinvesting in society through various initiatives focused on workplace, community, environment, and marketplace.

Acknowledgement & Appreciation

I would like to express my sincere gratitude to my fellow Board members, the management team, and particularly to the hardworking employees of CHHB. Despite the difficulties we faced, their unwavering dedication, sacrifices, and selflessness have enabled us to persevere.

On behalf of the Board, I extend our appreciation to our shareholders, associates, and partners for their unwavering support. We are eager to improve our performance in 2023 and beyond.

Thank You

Admiral Tan Sri Dato’ Setia Mohd Anwar Bin Hj. Mohd Nor (R)
Non-Independent Non-Executive Chairman

Country Heights Holdings Berhad, as a Group, continues to grow and we are constantly seeking new opportunities to diversify and strengthen our presence as well as exploring new industries. Our goal is to create a dynamic and innovative Group that can adapt to changing market conditions and offer value to our customers and stakeholders in all of our businesses. With a new line-up led by our Board members, and the new appointment of Admiral Tan Sri Dato’ Setia Mohd Anwar Bin Hj. Mohd Nor (R) as Non-Executive Chairman and Dato’ Mircle Yap Ching Chai as a Managing Director, our management team of professionals and commitment to excellence, the Group is confident in our ability to succeed and make a positive impact in the communities where we operate.

Group Business and Operations

The Group leverages its extensive experience in creating world-class establishments and services that cater to the changing needs of businesses and aims to stay ahead of the competition and continue delivering its promise of ‘Ever Searching for a Better Living’. We are expanding our Group which is active across a broad spectrum of industries: 1. Healthcare Division: International Medical Hub 2. Resorts and Hospitality Division: Membership hotel focus on health and wellness lifestyle 3. Exhibition and Convention Division 4. Property Division

GHHS Healthcare, currently offers holistic health screenings and diagnostic centre services, alongside traditional Chinese medicine as well as Wellness & Rejuvenation centre services.

• GHHS Healthcare’s Medical Screening and Specialist Clinic
• GHHS Chinese Medical Centre
• European Wellness Retreat (“EWR”)

The Hospitality Division carries three international awardwinning brands, including Palace of the Golden Horses and Mines Beach Resort.

Through this Division, the Group offers the best in hospitality, fine and casual dining, leisure, recreational activities, health and wellness centres and fitness.

This division comprises Mines International Exhibition and Convention Centre.

It is the largest column-free exhibition venue with the biggest tonnage capacity per square meter in Malaysia and provides a magnificent venue for multipurpose usage that can cater to large crowds and elaborate events, trade shows, symposiums, expositions, major gatherings, concerts, corporate functions, and dinners.

The Property Division comprises revenues from the leasing of our properties as well as property development sales. We aim to continue delivering a high standard of quality, modernity, and sustainability together with the infusion of environmentally friendly elements. Credited with some of the most successful residential projects in Malaysia, South Africa, and Australia, the Property Division targets to combine the best international practices in urban spacemaking with the most advanced smart technologies to offer a holistic well-being lifestyle.

From the period 2018 to 2022, the CHHB Group moves into digital innovation, big data management and the Internet of Things (“IoT”). The direction is made for the Group to remain competitive in broadening the engagement with our clients, partners and customers not only in Malaysia but internationally.

In 2022, the Group faced tough challenges merely due to the economic slowdown, inflation and increase in prices. The pandemic has fast-tracked the need for adaptation of Digital Innovation.

From the period 2018 to 2022, the CHHB Group moves into digital innovation, big data management and the IoT. The direction is made for the Group to remain competitive in broadening the engagement with our clients, partners and customers not only in Malaysia but internationally as well.

As mentioned in the Chairman’s Message, the Group stressed the importance of staying up to date with the latest digital trends, such as blockchain and security tokens offering (“STO”), to further solidify its position as a leading property developer in the region. CHHB’s decision to tokenize its real estate is an innovative move that will position the Group at the forefront of this emerging market.

Tokenizing real estate can increase liquidity in the market, as smaller investors can also participate in investments that were previously only available to larger institutional investors. It also provides greater transparency, as all transactions are recorded on the blockchain, which can help to eliminate fraudulent activities.

Overall, the tokenization of real estate can revolutionize the industry by providing greater accessibility, transparency, and efficiency to investors.

Health tourism in Malaysia is divided into two main categories:

1. Medical tourism: Medical treatments and procedures offered at internationally recognised hospitals and health facilities.
2. Wellness programmes: Rehabilitation programmes, physiotherapy, spas, reflexology and massages.

Malaysia is ranked as a Top Destination for Medical Tourism and one of the most preferred travel destinations in the world, ranking 18th among most visited countries in 2020. Beyond our natural attractions, cultural heritage and mouth-watering cuisines, Malaysia is also fast emerging as a strong competitor in the global health and medical tourism sector.

In fact, we’re ranked the top international medical tourism destination in a UK-based international medical travel journal, after attracting 1.3 million medical tourists in 2021. Malaysia in 2022 has one of the fastest vaccination rates in the world, with 79% of the population vaccinated which makes it easier for people to travel to Malaysia for medical treatment.

Why People Opt for Medical Tourism in Malaysia

Our world-class healthcare quality has and continues to open the floodgates for healthcare tourism.

The cost of medical procedures or treatments can be relatively competitive in Malaysia for a similar treatment in one’s own country or in neighbouring countries like Singapore and Australia. Foreigners can also enjoy world-class infrastructure facilities with comfortable accommodations.

Malaysia has gained a reputation as the Asia region’s hub for cardiology, fertility, oncology and Hepatitis C treatments. Malaysia is home to more than 33 advanced heart treatment centres in the country, with advanced procedural techniques such as multi-slice computed tomography, endoscopic vein harvesting, and heart-assist devices.

A multilingual environment that prioritises the religious requirements of its patients prompts many to seek medical treatment abroad. Malaysia is the leading global halal hub and is expected to launch halal certification for drugs and medical devices in 2022. Not to mention the world-class hospitality rendered by its people who can speak a plethora of languages. This can breach language and cultural barriers to make travellers feel at home.

Foreigners can expect shorter waiting times compared to some countries that have an overburdened healthcare system. Furthermore, Malaysia is also accelerating its efforts to digitalise the healthcare industry by conducting teleconsultations to provide continuity in foreign patient care for those who are unable to travel.

Wellness packages are seeing an upward trend globally. It covers the physical, psychological or spiritual areas, giving you a holistic experience in your trip abroad.

Malaysia offers an impressive array of wellness programmes, leveraging on the natural resources widely available in Malaysia. Wellness-based activities that are gaining popularity here are spas, massages, fitness classes, and diet and weight management programmes.

Travellers with a bigger budget can kill two birds with one stone by going abroad for their procedure and extending their stay for a holiday. From the modern metropolis to the beautiful tropical islands, patients and their families can experience the best of both worlds in Malaysia. After surgery, patients are encouraged to stay for some weeks to recover safely before flying back home.

This segment aspires to fortify the CHHB Group which already established credentials in the healthcare industry by introducing the ‘Prevention is Better than Cure’ themed real estate centred on the tenets of the total health continuum.

It reflects both CHHB Group and Malaysia’s vision to emerge as the preferred holistic health and wellness destination in the Southeast Asia region.

The Group is transforming the Palace of the Golden Horses, Mines Waterfront Business Park Tower 4 & 5, and the adjacent 12 acres of recreational land property into a new development covering 200 acres within our Mines Wellness City.

This development is focusing on medical tourism, with an emphasis on the areas of treatment, prevention, rejuvenation, and rehabilitation, whereby it will be branded as an International Medical Hub.

Since its inception in 2014, Mines Wellness City has been tasked to drive strategic investments as part of promoting Malaysia as a wellness hub backed by a tax holiday incentive programme and presenting investment opportunities across the wellness and health segment in the region.

Our facilities will provide an integrated health and wellness care range within a single environment, all geared to meet the needs of its customers and community members and integrate Health and Wellness into peoples’ living communities and lives.

Our real estate incorporates planned wellness elements and smart technology into its design, materials and building, and amenities and programming are growing fast as we know that our customers want to bring more health into the places where they can spend the majority of their time.

Our vision puts human health and well-being at the centre of our buildings, our products, and innovative solutions. The International Medical Hub will harness wellness technology designed to enhance health outcomes in the home and mitigate harmful indoor environmental concerns, creating spaces that help reduce stress, improve sleep quality, increase performance and enhance overall well-being.

The International Medical Hub offers investment opportunities across 13 categories involving Medical and Wellness operations. The CHHB Group’s very own brand, GHHS Healthcare, currently offers holistic health screenings and diagnostic centre services, alongside traditional Chinese medicine as well as Wellness & Rejuvenation centre services.