LB -FA - Bursa Malaysia

® 

LB 

ALUMINIUM 

BERHAD 

(138535-V) 

Lot 11, Jalan Perusahaan 1 

Kawasan Perusahaan Beranang 

43700 Beranang, Semenyih 

Selangor Darul Ehsan 

Tel : 03 – 8723 8822 (15 lines) 

Fax: 03 – 8723 3191 (General) 

03 – 8723 7272 (Sales) 

www.lbalum.com 

2004 

annual report 

® 

LB 

ALUMINIUM 

BERHAD 

(138535-V)

COVER RATIONALE 

CONTENTS 

pg1 Mission Statement 

pg2 Corporate Profile 

pg3 Notice of Annual General Meeting 

pg5 Statement Accompanying Notice of Annual General Meeting 

pg6 Board of Directors/Corporate Information 

pg8 Profile of the Board of Directors 

pg13 Financial Highlights 

pg14 Statement on Corporate Governance 

pg19 Additional Compliance Information 

pg20 Statement on Internal Control 

Set against a silhouette background of the Company’s 

production facilities, LB ALUMINIUM BERHAD’S 

new office building which is a picture of modern 

architecture complete with tropical ambience is 

featured on this year annual report. The building’s 

concept and its abundance use of aluminium 

extrusion reinforce the Company’s position as 

Malaysia’s leading aluminium extrusion manufacturer. 

From the reception with an atrium that reaches up to 

the sky, to the offices that surround a central 

landscape courtyard, the building is an oasis of 

natural sunlight as well as a showcase for the 

versatility and exquisite finishing of aluminium 

extrusions. 

pg22 Audit Committee Report 

pg24 Chairman’s Statement 

pg26 Managing Director’s Operations Review 

pg30 Branch Network 

pg31 Financial Statements 

pg77 List of Properties 

pg80 Substantial Shareholders 

pg81 Substantial Warrantholders 

pg82 Shareholdings’ Statistics 

Proxy Form

MISSION STATEMENT 

• To ensure TOTAL CUSTOMER SATISFACTION 

by providing products that meet customers’ stringent 

quality requirements and international product 

specification standards, besides providing timely 

delivery and the most personalised services. 

• To safeguard SHAREHOLDERS’ INTERESTS 

and ensure satisfactory returns to shareholders by 

managing all our resources in the most effective and 

efficient manner. 

• To consistently nurture our long-term goal of 

stimulating and promoting the usage of this MOST 

ENVIRONMENTAL FRIENDLY PRODUCT – 

ALUMINIUM – to a level comparable as that in 

advanced countries. 

pg.1

pg.2 

RHB Training Centre – Bangi, Selangor. 

CORPORATE PROFILE 

Volvo Showroom & Sales 

– Jalan Sg. Besi, Kuala Lumpur. 

Yayasan Tun Abdul Razak 

– Jalan Bukit Bintang, Kuala Lumpur. 

Incorporated 

in 1985, LB Aluminium Berhad is 

today the largest supplier of aluminium extrusion 

products in Malaysia and one of the largest aluminium 

extrusion manufacturers in South-East Asia. 

LB Aluminium Berhad is listed on the Main Board of Bursa Malaysia Securities 

Berhad and has been a public listed company since 1994. The Company’s 

consolidated shareholders’ funds as at 30 April 2004 stood at RM135.8 million with total 

number of shareholders exceeding 3,500. For the financial year ended 30 April 2004, the 

Company posted a group turnover of RM202.4 million. 

The Company’s production facilities are located on a 14-acre site in Beranang in the state of 

Selangor and within a thirty (30) minute drive from the Kuala Lumpur International Airport. Our 

integrated production facilities include nine (9) extrusion presses with annual production capacity of 

27,600 metric tonnes. To complement the aesthetics finishing of the extrusion products, we have the 

first and only fully automated vertical anodising plant in Malaysia with a monthly capacity of up to 1,400 

metric tonnes. In addition to the anodising plant, we have a fully integrated powder coating line as 

well as a fluorocarbon painting line, computerized die-mould manufacturing and design machining 

centers, cad-cam aluminium profiles precision drawings and designs, and a test-rig. 

We pride ourselves in constantly upgrading the quality of our products to meet the changing needs 

of our customers and society. Achievement of the highest standards of excellence like the 

MS ISO 9001:2000 standard and UKAS Accreditation certification bear testimony to our strive 

to excel in our industry. 

LB Aluminium Berhad has an extensive branch network with sales outlets cum 

warehouses in the major cities and towns in Peninsular and East Malaysia and 

Singapore. Our growing export markets include Sri Lanka, Mauritius, 

United Kingdom, Australia, Hong Kong, New Zealand, Pakistan, 

Philippines, USA, Thailand, Brunei, Canada, Spain, 

Singapore, Maldives, South Africa, Belgium and 

Germany.

NOTICE OF ANNUAL GENERAL MEETING 

NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of the 

Company will be held at Ujong Pandang Room, Staffield Country Resort, 

Batu 13, Jalan Seremban-Kuala Lumpur (Country Road), 71700 Mantin, 

Negeri Sembilan Darul Khusus on Thursday, 28 October 2004 

at 10.00 a.m. for the following purposes:- 

AGENDA 

1. To receive and adopt the audited Financial Statements for the year ended 30 April 2004 and the Reports of 

the Directors and Auditors thereon. 

2. To declare a first and final tax exempt dividend of 2.85 sen per share in respect of the financial year ended 

30 April 2004. 

3. To approve the payment of Directors’ Fees amounting to RM100,000.00 for the financial year ended 30 April 

2004. 

4. To re-elect the following Directors who retire in accordance with Articles 75 and 77 of the Company’s Articles 

of Association:- 

– Y. Bhg. Dato’ Mohd. Ghazali Bin Mohd. Khalid 

– Mr Leow Chong Fatt 

– Mr Neoh Lay Keong 

5. To re-appoint Messrs. BDO Binder as Auditors and to authorise the Directors to fix their remuneration. 

6. As SPECIAL BUSINESS, to consider, and if thought fit, to pass the following as Ordinary Resolutions:- 

(i) Authority to issue shares to eligible employees pursuant to the Employee Share Option Scheme. 

“THAT pursuant to Section 132D of the Companies Act, 1965, approval be and is hereby given for the 

Directors to issue shares in the Company in accordance with the terms and conditions of the Employee 

Share Option Scheme approved by the shareholders at the Extraordinary General Meeting held on 

8 February 2002, provided that the total number of shares already issued and to be issued shall not 

exceed ten (10) per centum of the total issued share capital of the Company for the time being and that 

such approval shall continue in force until the conclusion of the next Annual General Meeting of the 

Company.” 

(ii) Authority to issue shares not exceeding ten (10) per centum of the Issued Capital of the Company. 

“THAT pursuant to Section 132D of the Companies Act, 1965, and subject to the approvals of the relevant 

governmental/regulatory authorities (if any shall be required), the Directors be and are hereby 

empowered to issue shares (other than bonus or rights issue) in the Company from time to time and upon 

such terms and conditions and for such purposes as the Directors may deem fit provided that the 

aggregate number of shares issued pursuant to the resolution in any one financial year of the Company 

(other than by way of bonus or rights issue) does not exceed ten (10) per centum of the issued capital 

of the Company for the time being and that the Directors be and are hereby also empowered to obtain 

approval from the Bursa Malaysia Securities Berhad for the listing of and quotation for the additional 

shares so issued and that such authority shall continue in force until conclusion of the next Annual General 

Meeting of the Company.” 

pg.3 

(RESOLUTION 1) 








(RESOLUTION 9)

pg.4 

7. To transact any other ordinary business of the Company of which due notice shall have been given. 

BY ORDER OF THE BOARD 

NG BEE LIAN 

LIM HOOI MOOI 

Company Secretaries 

Seremban 

4 October 2004 

NOTICE OF DIVIDEND ENTITLEMENT 

NOTICE IS ALSO HEREBY GIVEN THAT subject to the approval of the shareholders at the Annual General Meeting on 28 October 2004, 

the first and final tax exempt dividend of 2.85 sen per share in respect of the financial year ended 30 April 2004 will be payable on 

10 November 2004 to Depositors whose names appear in the Record of Depositors on 29 October 2004. 

A Depositor shall qualify for entitlement to the dividend only in respect of:- 

(a) shares transferred into the depositor’s securities account before 4.00 p.m. on 29 October 2004 in respect of ordinary transfers; 

and 

(b) shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of the Bursa Malaysia 

Securities Berhad. 

NOTES: 

1. A member of the Company who is entitled to attend and vote at the Meeting is entitled to appoint one or more Proxies to attend and vote in his 

stead. Where a member appoints two or more Proxies, the appointment shall be invalid unless he specifies the proportion of his holdings to be 

represented by each Proxy. A Proxy need not be a member of the Company but must attend the Meeting in person to vote. The instrument 

appointing a Proxy must be in writing under the hand of the appointer or his attorney duly authorised in writing, or if the appointer is a corporation 

either under its common seal or under the hands of duly authorised officer or attorney. 

2. All forms of Proxy must be deposited at the Company’s Registered Office at No. 275 (1st Floor), Jalan Haruan 1, Oakland Industrial Park, 70200 

Seremban, Negeri Sembilan Darul Khusus not less than 48 hours before the time appointed for holding the Meeting or at any adjournment thereof. 

3. Explanatory Notes on Special Business 

(a) Item 6 (i) of the Agenda – Ordinary Resolution 

Authority to issue shares to eligible employees pursuant to the Employee Share Option Scheme 

The Ordinary Resolution proposed under item 6 (i) of the Agenda, if passed, is to empower the Directors to issue and allot shares in the Company 

pursuant to the terms and conditions of the Employee Share Option Scheme which was approved at the Extraordinary General Meeting held on 

8 February 2002. 

(b) Item 6 (ii) of the Agenda – Ordinary Resolution 

Authority to issue shares not exceeding ten (10) per centum of the Issued Capital of the Company 

The Ordinary Resolution proposed under item 6 (ii) of the Agenda, if passed, is to empower the Directors to issue up to a maximum of ten (10) 

per centum of the total issued share capital of the Company for the time being without convening a general meeting for such purposes as the 

Directors consider would be in the interest of the Company. This authority unless revoked or varied by the Company at a general meeting will 

expire at the next Annual General Meeting.

STATEMENT ACCOMPANYING 

NOTICE OF ANNUAL GENERAL MEETING 

pursuant to paragraph 8.28(2) of the Listing Requirements of the Bursa Malaysia Securities Berhad 

1. The name of the Directors who are standing for re-election are as follows:- 

Y. Bhg. Dato’ Mohd. Ghazali Bin Mohd. Khalid 

Mr Leow Chong Fatt 

Mr Neoh Lay Keong 

The details of the three (3) Directors seeking re-election are set out in their respective profiles in the Annual Report. 

2. The details of attendance of Directors at Board meetings. 

During the financial period, eight (8) Board meetings were held. 

Name of Directors Attendance 

Y. Bhg. Dato’ Mohd. Ghazali Bin Mohd. Khalid 8 

Leow Chong Howa 8 

Mark Wing Kong 8 

Leow Sok Hoon 7 

Leow Chong Fatt 8 

Yap Chee Woon 8 

Neoh Lay Keong 8 

Lim Ting @ Lim Ah Ting 8 

3. Annual General Meeting of LB Aluminium Berhad 

Place : Ujong Pandang Room, Staffield Country Resort 

Batu 13, Jalan Seremban-Kuala Lumpur 

(Country Road), 71700 Mantin 

Negeri Sembilan Darul Khusus 

Date & Time : 28 October 2004 at 10.00 a.m. 

pg.5

pg.6 

BOARD OF DIRECTORS 

CORPORATE INFORMATION 

BOARD OF DIRECTORS 

Chairman/Independent 

Non-Executive Director 

Y. Bhg. Dato' Mohd. Ghazali 

Bin Mohd. Khalid 

Managing Director 

Leow Chong Howa 

Executive Director 

Mark Wing Kong 

Non-Executive Directors 

Leow Sok Hoon 

Leow Chong Fatt 

Yap Chee Woon 

Independent Non-Executive 

Directors 

Neoh Lay Keong 

Lim Ting @ Lim Ah Ting 

AUDIT COMMITTEE 


Director – Chairman 


Independent 



Executive Director 


REMUNERATION 

COMMITTEE 




Independent 




Yap Chee Woon 

NOMINATION COMMITTEE 




Independent 





PRINCIPAL BANKERS 

AmBank Berhad 

Bumiputra Commerce Bank 

Berhad 

HSBC Bank Malaysia Berhad 

Malayan Banking Berhad 

Public Bank Berhad 

United Overseas Bank (Malaysia) 

Berhad 

United Overseas Bank Limited, 

Singapore

SOLICITORS 

Shook Lin & Bok 

20th Floor, Bangunan 

Arab-Malaysian 

55, Jalan Raja Chulan 

50200 Kuala Lumpur 

Soo Thien Ming & Nashrah 

Wisma Selangor Dredging 

10th Floor, South Block 

No. 142-A, Jalan Ampang 


W.K. Yap, Loo & Co. 

No. 10-1A, 1st Floor 

Jalan Khoo Teik Ee 

Off Jalan Imbi 


Gan, Ho & Razlan Hadri 

8-01, 8th Floor, Plaza Magnum 

No. 128, Jalan Pudu 


Cha & Wong 

E-19, (2nd Floor), Jalan 1/21 

46000 Petaling Jaya 


CORPORATE ADVISOR 

AmMerchant Bank Berhad 

22nd Floor, Bangunan 

Arab-Malaysian 

55, Jalan Raja Chulan 


SECRETARIES 

Lim Hooi Mooi 

Ng Bee Lian 

AUDITORS 

BDO Binder 

Public Accountants 

12th Floor, Menara Uni.Asia 

1008, Jalan Sultan Ismail 


REGISTERED OFFICE 

No. 275 (1st Floor) 

Jalan Haruan 1 

Oakland Industrial Park 

70200 Seremban 

Negeri Sembilan 

Tel : 06-7625463 

Fax : 06-7629693 

From left to right: 

Y. Bhg Dato' Mohd. Ghazali Bin Mohd. Khalid 



left to right: 

Leow Chong Fatt 

Y. Bhg. Dato' Mohd. 

Lim 

Ghazali 

Ting @ 

Bin 

Lim 

Mohd. 

Ah Ting 

Khalid, Leow Chong Howa, 

Mark Wing Kong, Leow 

Yap Chee 

Chong 

Woon 

Fatt, Lim Ting @ Lim Ah Ting, 

Yap Chee Woon and 

Neoh 

Neoh 

Lay 

Lay 

Keong 

Keong 

not in the picture: Leow Leow Sok Sok Hoon Hoon 

(not in picture) 

SHARE REGISTRAR 

Bina Management (M) Sdn Bhd 

Lot 10, The Highway Centre 

Jalan 51/205 



Tel : 03-77843922 

Fax : 03-77841988 

HEAD OFFICE 





STOCK EXCHANGE LISTING 

Main Board of Bursa Malaysia 

Securities Berhad

pg.8 

PROFILE OF THE BOARD OF DIRECTORS 

The Board of Directors 

comprises a Chairman (who is 

also an Independent Non- 

Executive Director), a 

Managing Director, an 

Executive Director and five (5) 

Non-Executive Directors, two 

(2) of whom are independents. 

The Board meets at least 

quarterly and additional Board 

Meetings are held as and when 

required. The Board met eight 

(8) times during the financial 

year ended 30 April 2004. 

Particulars of the Directors are 

as follows:- 

Y.Bhg. Dato’ Mohd. Ghazali Bin Mohd. Khalid 

Age: 57 

Nationality: Malaysian 

Qualification: 

Advance Diploma in Business Administration, Ateneo de Manila Graduate School, 

Philippines 

Position in Board: Chairman/Independent Non-Executive Director 

Date of appointment to the Board: 15 June 1995 

Working experience and occupation: 

– Senior Police Officer, 1970 to 1983 

– Special Executive Assistant to Group Chief Executive of General Corporation Berhad, 

1983 to 1986 

– Executive Director, TDM Berhad and Aokam Perdana Berhad, 1986 to 1992 

– Currently, Executive Chairman and Chief Executive Officer of 

Malaysian General Investment Corp Berhad 

Other Board committee: None 

Directorships in other public companies: 

Mentiga Corporation Berhad 

Super Enterprise Holdings Berhad 

Fullmark Manufacturing Berhad 

Family relationship with any Director and/ 

or major shareholder of the Company: None 

Any conflict of interest that he has with the Company: None 

List of convictions for offences within the past 

10 years other than traffic offences, if any: None 

Details of attendance at Board Meetings: 8 out of 8


Age: 46 


Qualification: Businessman 

Position in Board: Managing Director 

Date of appointment to the Board: 16 April 1985 


Managing Director of LB Aluminium Berhad since 16 April 1985 

Other Board committee: 

Nomination Committee and ESOS Committee 

Directorships in other public companies: None 


or major shareholder of the Company: 

Brother of Leow Chong Fatt and Leow Keng Soon and uncle to Leow Sok Hoon 

Any conflict of interest that he has with the Company: None 


10 years other than traffic offences, if any: None 

Details of attendance at Board Meetings: 8 out of 8 

pg.9

pg.10 

Mark Wing Kong Leow Chong Fatt 

Age: 45 



Member of Malaysian Institute of Certified Public Accountants 

Position in Board: Executive Director 

Date of appointment to the Board: 15 March 1997 


– Auditor, Kassim Chan & Co., 1980 to 1986 

– Operations Manager, Arab-Malaysian Securities Sdn Bhd, 

1986 to 1988 

– General Manager (at time of resignation), 

Arab-Malaysian Merchant Bank Berhad, 1988 to 1997 


Audit Committee and ESOS Committee 

Directorships in other public companies: 

Pheim Unit Trusts Berhad 



Any conflict of interest that he has with the Company: 

None 

List of convictions for offences within the past 10 years 

other than traffic offences, if any: None 


Age: 50 



Position in Board: Non-Executive Director 

Date of appointment to the Board: 9 June 1993 


Purchasing Manager, LB Aluminium Berhad since 1985 





Brother of Leow Chong Howa and Leow Keng Soon 

and uncle to Leow Sok Hoon 


None 




Leow Sok Hoon 

Age: 32 



Advance Diploma, Association of Business Executives (ABE) 

Diploma in Business Administration, University of Wales 

BA in Business Administration, University of Wales 


Date of appointment to the Board: 3 August 1993 

Working experience and occupation: Businesswoman 





Niece of Leow Chong Howa, Leow Chong Fatt 

and Leow Keng Soon 

Any conflict of interest that she has with the Company: 

None 


10 years other than traffic offences, if any: 

None 


Yap Chee Woon 

Age: 45 




Date of appointment to the Board: 2 May 1997 


General Manager of LB Aluminium Berhad. 

With the Group since 1985 


Remuneration Committee and ESOS Committee 





None 




pg.11

pg.12 


Age: 46 



BEC Diploma in Business Studies, St. Johns College, England 

BA (Hons) in Economics, University of Manchester, England 

Position in Board: Independent Non-Executive Director 

Date of appointment to the Board: 25 August 1997 


– Manager, RHB Bank Berhad, 1982 to 1990 

– Dealers’ Representative with TA Securities Berhad since 

1990 


Audit Committee (Chairman), Nomination Committee (Chairman) 

and Remuneration Committee (Chairman) 





None 





Age: 69 



Passed Chinese SM III (Singapore) in 1954. Passed Teacher’s 

Training Course in 1961. Passed S.P.M. in 1970. 

Position in Board: Independent Non-Executive Director 

Date of appointment to the Board: 25 July 1994 


– Headmaster, SRJK (C) Sin Hua, Negeri Sembilan, 

1980 to 1990 

– Currently, Executive Secretary for Negeri Sembilan Chinese 

School Committee Council and Negeri Sembilan Car Dealer 

and Credit Companies Association 

– Appointed as an Assistant Registrar for Marriage since 1997 


Audit Committee, Nomination Committee and Remuneration 

Committee 





None 




FINANCIAL HIGHLIGHTS 

Profit Profit Total 

Before After Paid-Up Retained Shareholders’ Total 

Revenue Taxation Taxation Dividend Capital Profit Equity Assets 

Year RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

Group 2000 126,284 15,952 14,262 1,679 55,972 28,403 86,887 122,263 

Group 2001 152,509 15,394 13,164 1,959 65,301 30,279 98,092 180,728 

Group 2002 156,345 18,603 18,689 1,972 65,738 47,000 115,393 192,346 

Group 2003 161,791 16,055 13,062 3,298 65,955 50,871 119,376 205,082 

Group 2004 202,370 15,454 13,770 *3,541 70,619 61,249 135,800 229,408 

Denote: 

* after bonus issue on 26 August 2004 

Revenue 

Profit 

After 

Taxation 

RM’000 

210 - 

180 - 

150 - 

120 - 

90 - 

60 - 

30 - 

0 - 

RM’000 

21 - 

18 - 

15 - 

12 - 

9 - 

6 - 

3 - 

0 - 

126,284 

152,509 

156,345 

161,791 

202,370 

00’ 01’ 02‘ 03‘ 04’ 

14,262 

13,164 

18,689 

13,062 

13,770 

00’ 01’ 02‘ 03‘ 04’ 

RM’000 

21 - 

18 - 

15 - 

12 - 

9 - 

6 - 

3 - 

0 - 

RM’000 

150 - 

120 - 

90 - 

60 - 

30 - 

0 - 

15,952 

86,887 

15,394 

98,092 

18,603 

115,393 

16,055 

119,376 

15,454 

00’ 01’ 02‘ 03‘ 04’ 

135,800 

00’ 01’ 02‘ 03‘ 04’ 

Profit 

Before 

Taxation 

pg.13 

Total 

Shareholders’ 

Equity

pg.14 

STATEMENT ON CORPORATE GOVERNANCE 

The Board of Directors of LB Aluminium Berhad remains 

committed to the best practices and principles of good corporate 

governance as set out in the Malaysian Code on Corporate 

Governance (the “Code”) as well as with the Listing Requirements 

of the Bursa Malaysia Securities Berhad (“Bursa Malaysia”). The 

Board recognises that good corporate governance is fundamental 

to the Board in discharging its fiduciary responsibilities and 

enhances high standards of business integrity, business 

prosperity and corporate accountability with the ultimate objective 

of realising shareholders’ value. 

The Board is pleased to provide the following statement, which 

outlines the Group’s application of corporate governance 

practices throughout the financial year. 

THE BOARD OF DIRECTORS 

Composition of the Board 

The Board currently consists of eight (8) Directors; three (3) of 

whom are Independent Non-Executive Directors. The Board 

comprises of an appropriate balance with sufficiently diverse 

experience required for the effective stewardship of the Group. 

The balance of Executive Directors and Non-Executive Directors 

(including Independent Non-Executive Directors) is such that 

decision made are fully discussed and examined taking into 

account the long term interest of shareholders, employees, 

customers and the many communities in which the Group 

conducts its business. 

The Chairman, who is also an Independent Non-Executive 

Director, and the Managing Director are individually held by two 

(2) persons and their responsibilities respectively are such that 

there is balance of power and authority. The presence of the three 

(3) Independent Non-Executive Directors also ensure 

independence in decision making at Board level. 

Where a potential conflict of interest may arise, it is mandatory 

practice for the Director concerned to declare his or her interest 

and abstain from the decision making process. 

No senior Independent Non-Executive Director has been 

appointed to whom any concerns pertaining to the Group may be 

conveyed as recommended by the Code. Instead, the Board will 

shoulder this responsibility collectively. 

Directors’ Training 

All Directors have attended and successfully completed the 

Mandatory Accreditation Programme conducted by the Research 

Institute of Investment Analysts Malaysia. During the year, the 

Directors also attended the Continuing Education Programme for 

directors of public listed companies. 

Board Meetings 

The Board meets every three (3) months in regular Board of 

Directors’ meetings during the year to approve the quarterly 

results and the audited financial statements on a pre-scheduled 

basis. Additional meetings are convened when urgent and 

important decisions need to be taken between scheduled 

meetings. During the financial year 2004, the Company held 

eight (8) meetings of the Board of Directors. 

Supply of Information to the Board 

To enable the Board to carry out its duties, regular status report 

and board papers, including quarterly and year-to-date 

performance report are provided to the Board. 

All Board members have access to the advice and services of the 

Company Secretary and may seek independent professional 

advice should the need arise in the furtherance of their duties at 

the Company’s expense. Various committees have been set up 

to assist the Board in discharging its duties, the details of which 

are set out below. 

Re-election of Directors 

In accordance with the Company’s Articles of Association (the 

“Articles”), all Directors who are appointed by the Board are 

subject to election by shareholders of the Company at the first 

Annual General Meeting after their appointment. The Articles also 

provides that one-third of the remaining Directors (including the 

Managing Director) will be required to submit themselves for reelection 

by rotation at least once every three (3) years at annual 

general meeting. 

For the forthcoming Annual General Meeting, Y. Bhg. Dato’ Mohd. 

Ghazali Bin Mohd. Khalid, Mr Leow Chong Fatt and Mr Neoh Lay 

Keong shall retire by rotation, and being eligible, offer themselves 

for re-election.

A brief description on the profile of each Director and their 

respective attendance in Board Meetings are presented in the 

annual report. 

THE BOARD COMMITTEES 

The Board delegates certain authorities to Board Committees that 

operate under clearly defined written terms of reference and 

operating procedures duly approved by the Board. The various 

Committees report the outcome of their meetings to the Board, 

which are then incorporated in the Board’s minutes. Details of the 

membership, objectives, duties and responsibilities, authorities 

and meetings are set out below: 

Nomination Committee 

The Nomination Committee comprises of the following members: 


– Chairman, Independent Non-Executive Director 


– Independent Non-Executive Director 


– Managing Director 

• The members of the Nomination Committee shall be 

appointed by the Board from amongst their number, 

consisting wholly or mainly independent non-executive 

directors and shall consist of not less than 3 members. 

• The members of the Committee shall elect the Chairman from 

amongst their member who shall be an Independent Non- 

Executive Director. 

• If a member of the Committee ceases to be a member with 

the result that the number of members is reduced below three 

(3), the Board shall within three (3) months of that event, 

appoint such number of new members as may be required to 

make up the minimum number of three (3) members. 

• The Company Secretary shall be the Secretary of the 

Committee. 

The terms of reference for the Committee are: 

• To nominate and recommend to the Board, candidates to be 

appointed as Director of the Company. 

• To consider in making its recommendations, candidates for 

directorships proposed by the Managing Director or by any 

other senior executive or any director or shareholder. 

• To recommend to the Board, directors to fill the seats on 

Board committees. 

• To assist the Board in its annual review of its required mix of 

skills and experience and other qualities, including core 

competencies which non-executive directors should bring to 

the Board and to assess the effectiveness of the Board as a 

whole, the committees of the Board and the individual director 

on an annual basis. 

Meetings are to be held as and when necessary. The quorum for 

each meeting shall be two (2). During the financial year ended 

30 April 2004, one (1) meeting was held which all members of the 

Nomination Committee attended. The Committee will decide its 

own procedures and other administrative arrangements. Minutes 

of each meeting shall be kept by the Secretary as evidence that 

the Committee has discharged its functions. 

Remuneration Committee 

The Remuneration Committee comprises of the following 

members: 

. 


– Chairman, Independent Non-Executive Director 


– Independent Non-Executive Director 

Yap Chee Woon 

– Non-Executive Director 

pg.15

pg.16 

• The members of Remuneration Committee shall be appointed 

by the Board from amongst their number, consisting wholly or 

mainly independent non-executive directors and shall consist 

of not less than 3 members. 

• The members of the Committee shall elect the Chairman 

amongst their members who shall be an Independent Non- 

Executive Director. 

• If a member of the Committee ceases to be a member with 

the result that the number of members is reduced below three 

(3), the Board shall within three (3) months of that event, 

appoint such number of new members as may be required to 

make up the minimum number of three (3) members. 

• The Company Secretary shall be the Secretary of the 

Committee. 

• Directors do not participate in decisions on their own 

remuneration packages. 

The Remuneration Committee is responsible for recommending 

the remuneration framework for Directors’ as well as the 

remuneration packages of executive Directors to the Board. 

None of the executive Directors participate in any way in 

determining their individual remuneration. 

The Board as a whole determines the remuneration of nonexecutive 

Directors with individual Directors abstaining from 

decisions in respect of their individual remuneration. 

The policy practiced on Directors’ remuneration by the 

Remuneration Committee is to provide the remuneration 

packages necessary to attract, retain and motivate Directors of 

the quality required to manage the business of the Company and 

to align the interest of the Directors with those of the 

shareholders. 

Information prepared by independent consultants and survey data 

on the remuneration practices of comparable companies are 

taken into consideration in determining the remuneration 

packages, where necessary. 

Meetings are held as and when necessary. The quorum for each 

meeting shall be two (2). The Managing Director and/or 

Executive Directors shall attend and make presentations at 

meetings, whenever business is not related to Executive 

Directors’ remuneration. The Committee will decide its own 

procedures and other administrative arrangements. 

Minutes of each meeting shall be kept by the Secretary as 

evidence that the Committee has discharged its functions. 

The Remuneration Committee held one (1) meeting, which was 

attended by all members, during the financial year to review and 

recommend to the Board on the remuneration of the Directors. 

Audit Committee 

The Audit Committee currently comprises two (2) Independent 

Non-Executive Directors and the Executive Director. The 

Committee meets not less than four (4) times a year and is 

governed by clearly defined terms of reference. In the financial 

year ended 30 April 2004, the Committee met on seven (7) 

occasions. 

The composition of the Committee, terms of reference, 

attendance record and its activities are set out in the annual 

report. 

Recommendations of the Committee are submitted to the Board 

for approval. 

ESOS Committee 

The ESOS Committee was established to administer the LB 

Aluminium Berhad’s Employee Share Option Scheme (“ESOS”) in 

accordance with the objectives and regulations as set out in the 

ESOS’s Bye-Laws. The members of the Committee are:- 


– Managing Director 


– Executive Director 

Yap Chee Woon 

– Non-Executive Director

DIRECTORS’ REMUNERATION 

The details of the remuneration of Directors for the financial year ended 30 April 2004 are as follows:- 

Aggregate remuneration of Directors categorised into appropriate components: 

Benefits 

Salaries Bonus In-Kind Fees Total 

RM’000 RM’000 RM’000 RM’000 RM’000 

Executive Directors 939 204 25 24 1192 

Non-Executive Directors 449 98 13 76 636 

The number of Directors of the Company whose total remuneration fall within the following bands for the financial year ended 30 April 

2004 are as follows:- 

No. of Directors 

Range of remuneration Executive Non-Executive 

Below RM50,000 – 4 

RM250,001 to RM300,000 – 1 

RM300,001 to RM350,000 – 1 

RM400,001 to RM450,000 1 – 

RM750,001 to RM800,000 1 – 

RELATIONSHIP WITH THE AUDITORS 

The role of the Audit Committee in relation to the external auditors 

is included in the Audit Committee’s terms of reference as 

detailed below. 

FINANCIAL REPORTING 

The Board is responsible for preparing the annual audited financial 

statements to shareholders and has taken appropriate steps to 

present a balanced and understandable assessment of the 

Group’s financial position and prospects. The Chairman’s 

statement and Managing Director’s operation review provide 

further information on the Group’s activities, business 

performance and prospects. The announcements of the quarterly 

and annual results are made to the public within the stipulated 

time frame after the Audit Committee has reviewed them and 

approved by the Board. 

STATEMENT ON DIRECTORS’ RESPONSIBILITY 

The Directors are required, pursuant to Section 169 of the 

Companies Act, 1965 (the “Act”), to draw up financial statements 

for each financial year that gives a true and fair view of the state 

of affairs of the Company and the Group as at the end of the 

accounting period and of their profit and loss and cashflow for the 

period then ended. In addition, the Directors have the general 

responsibility for taking such steps as they are reasonably open 

to them to safeguard the assets of the Group and to prevent fraud 

and other irregularities. In preparing the financial statements for 

the year ended 30 April 2004, the Directors have:- 

(i) adopted the appropriate accounting policies, which are 

consistently applied; 

(ii) made reasonable and prudent judgments and estimates; and 

(iii) ensure that the applicable approved accounting standards in 

Malaysia and the provisions of the Act are complied with. 

The Statement of Directors pursuant to the Act is set out in the 

annual report. 

pg.17

pg.18 

INTERNAL CONTROL 

The Statement on Internal Control furnished in the annual report 

provides an overview of the state of internal controls within the 

Group. 

SHAREHOLDERS AND INVESTOR RELATIONS 

The Company encourages its shareholders to attend its Annual 

General Meeting (“AGM”) usually held in October each year. The 

Annual Report and notice of the AGM are sent to all shareholders 

in accordance with the provisions of the Listing Requirements. 

The notice of AGM is also published in a national newspaper. The 

notice would include explanatory statements for proposed 

resolutions to facilitate understanding and evaluation of issues 

involving the shareholders. The AGM serves as a useful platform 

for shareholders to meet and communicate with the Board and 

encourages shareholders to participate in any discussion. The 

Company’s external auditors and company secretary are also 

present to clarify and explain any issues. Normally after the AGM, 

the Managing Director and other key senior management would 

hold a press conference. Shareholders are also informed and 

invited to attend any Extraordinary General Meetings through 

circulars and notice of meeting. 

The Company also has dialogues with institutional investors, fund 

managers and analysts to foster understanding about the Group’s 

activities. 

In addition, the Group maintains a website, www.lbalum.com, 

which provides shareholders and the public in general access to 

information about the Group. 

Statement made in accordance with a resolution of the 

Board of Directors dated 28 July 2004.

ADDITIONAL COMPLIANCE INFORMATION 

as at 30 April 2004 

The following information is provided in compliance with the 

Listing Requirements of the Bursa Malaysia Securities Berhad. 

1. DEBT AND EQUITY SECURITIES 

The Company has not issued any debt or equity securities 

during the financial year under review save for the issue of 

4,664,000 new ordinary shares of RM1.00 each that arose 

from the exercise of options pursuant to the Company’s 

Employee Share Option Scheme implemented on 1 March 

2002. No warrant was exercised during the financial year 

under review. 

2. SHARE BUYBACK 

The Company had on 30 April 2001 amended its 

Memorandum and Articles of Association in order to comply 

with the Bursa Malaysia Securities Berhad’s Listing 

Requirements as well as changes to the Securities Industry 

(Central Depository) Act and the Rule of the Malaysian Central 

Depository which includes the provision to grant the Company 

the required power or authority to purchase its own shares in 

the manner provided under the Companies Act, 1965 and the 

Listing Requirements. 

The Company has not instituted any share buyback scheme 

during the financial year ended 30 April 2004. 

3. IMPOSITION OF SANCTIONS AND/OR PENALTIES 

There was no sanction and/or penalties imposed on the 

Company and its subsidiaries, Directors or management by 

the Securities Commission, Bursa Malaysia Securities Berhad 

or Suruhanjaya Syarikat Malaysia during the financial year. 

4. NON-AUDIT FEES 

The amount of non-audit fees paid and payable to the external 

auditors, BDO Binder for the year ended 30 April 2004 

amounted to RM8,000.00. 

5. VARIATION IN RESULTS 

There was no material variation between the audited results 

for the financial year ended 30 April 2004 and the unaudited 

results previously released for the quarter ended 30 April 

2004. 

6. PROFIT GUARANTEES 

The Group and Company did not give or receive any profit 

guarantees during the financial year. 

7. MATERIAL CONTRACTS 

No material contracts (not being contracts entered into in the 

ordinary course of business) have been entered into by the 

Company and/or its subsidiaries which involved Directors’ 

and/or substantial shareholders’ interests, either still 

subsisting at the end of the financial year ended 30 April 2004 

or, if not then subsisting, entered into since the end of the 

previous financial year. 

8. REVALUATION POLICY ON LANDED PROPERTIES 

The revaluation policy on landed properties are set out in the 

notes to the financial statements. 

9. GLOBAL DEPOSITORY RECEIPTS ("GDR")/ 

AMERICAN DEPOSITORY RECEIPTS ("ADR") 

The Company had not sponsored any GDR or ADR 

programmes during the financial year ended 30 April 2004. 

pg.19

pg.20 

PREAMBLE 

STATEMENT ON INTERNAL CONTROL 

The Malaysian Code on Corporate Governance requires listed 

companies to maintain a sound system of internal control to 

safeguard shareholders’ investments and the Group’s assets. 

Pursuant to paragraph 15.27(b) of the Bursa Malaysia Securities 

Berhad’s Listing Requirements, the Board of Directors is required 

to include in its Annual Report, a statement on the state of internal 

control of the Group. 

RESPONSIBILITY 

The Board acknowledges its responsibility for maintaining a sound 

system of internal control and also for reviewing its adequacy and 

integrity. In view of the limitations inherent in any system of 

internal control, such system can only be designed to manage 

rather than eliminate risk of failure to achieve business objectives. 

Accordingly, this system can only provide reasonable but not 

absolute assurance against material misstatement or loss. 

RISK MANAGEMENT FRAMEWORK 

The Board of Directors confirms that there is continuous process 

of identifying, evaluating and managing the significant risks faced 

by the Group, which has been in place for the financial year under 

review and up to the date of approval of the annual report and 

financial statements. 

The Group has drawn up a Risk Management Policy to identify key 

risks, the likelihood of those risks occurring as well as any 

strategy to control or manage those risks affecting the business. 

Ongoing overall risk management process also includes 

budgetary controls and regular meetings among senior 

management to assess:- 

(i) Performances of branches and other operating subsidiaries; 

(ii) Impact of changes in competition and operating environment; 

and 

(iii) Risks and opportunities in the business and the ensuing action 

plans. 

MONITORING AND REVIEW OF THE EFFECTIVENESS 

OF THE SYSTEM OF INTERNAL CONTROLS 

The Board of Directors is committed to maintaining a strong 

control structure and environment for the proper conduct of the 

Group’s business operations. The key elements are:- 

Operating structure with clearly defined lines and 

delegated authorities 

The operating structure includes defined lines of responsibility, 

delegation of authorities, segregation of duties and the flow of 

information. The Board of Directors has also delegated certain 

authority for committees to advise the Board. Limits of authority 

are imposed for revenue and capital expenditure for all operating 

units that serve to facilitate the approval process and keep 

potential exposure under control. Detailed justifications are 

required for capital and major expenditures to ensure congruence 

with the Group’s strategic objectives. 

Budgetary controls 

Senior management with the involvement of all heads and branch 

managers conducts detailed reviews of the financial results 

quarterly. Variances analysed against budget are followed up and 

acted upon immediately. The reviews also include reports on 

other aspects of operations including collection, pricing, 

competitors and any business or other risks that may have an 

impact on the Group.

Employee competency 

Emphasis is placed on the quality and abilities of employees with 

continuing training and self-development being actively 

encouraged through a wide variety of schemes and programmes. 

MS ISO 9001 : 2000 certification 

The effectiveness of the system of internal control is also 

reviewed through the MS ISO 9001 : 2000 certification. The 

demanding documentation requirements of the certification 

further ensures a trail of accountability in the Company. 

The Audit Committee 

The Audit Committee assists the Board of Directors in assessing 

the effectiveness of internal controls by reviewing reports from 

the internal and external auditors, if any. 

INTERNAL AUDIT FUNCTION 

The internal audit department reports directly to the Audit 

Committee. Internal audit plans are reviewed and approved by 

the Audit Committee and the plans include independent appraisal 

on the compliance, adequacy and effectiveness of the Group’s 

internal controls and to assess and monitor the effectiveness and 

implementation of the Groups’ risk management policies. Followup 

reviews on previous audit recommendations will be carried out 

to ensure compliance and appropriate actions have been 

implemented to address weaknesses highlighted. 

INTERNAL CONTROL ISSUES 

Management maintains an ongoing commitment to strengthen the 

Group’s control environment and processes. During the year, 

there was no material losses caused by breakdown in internal 

control. 

CONCLUSION 

The Board is satisfied that during the year under review, there is 

a process to manage the Group’s system of internal controls to 

mitigate any significant risks faced by the Group so as to 

safeguard shareholders’ investments and the Group’s assets. 

This statement is made in accordance with a resolution of 

the Board of Directors dated 28 July 2004. 

pg.21

pg.22 

COMPOSITION 

TERMS OF REFERENCE 

Objective 

The primary objective of the Audit Committee is to assist the 

Board in fulfilling its fiduciary responsibilities relating to corporate 

accounting, system of internal controls, management and 

financial reporting practices of the Group. 

Members Of The Audit Committee 

The Committee shall be appointed by the Board from amongst its 

number and shall consist of not less than three (3) members, the 

majority of whom must be Independent Non-Executive Directors. 

The quorum for meeting of the Committee shall be two (2) in 

which the majority present in respect of such meeting must be 

Independent Non-Executive Directors. 

The Chairman of the Committee shall be appointed by the 

Members of the Audit Committee who shall also be an 

Independent Non-Executive Director. 

Duties & Responsibilities 

AUDIT COMMITTEE REPORT 

Neoh Lay Keong Chairman, Independent Non-Executive Director 

Mark Wing Kong* Executive Director 

Lim Ting @ Lim Ah Ting Independent Non-Executive Director 

* Member of Malaysian Institute of Certified Public Accountants 

1. To consider the appointment of the external auditors, the audit 

fee and any questions of resignation or dismissal. 

2. To discuss with the external auditors before the annual audit 

commences, the nature and scope of the audit plan. 

3. To review the quarterly and annual financial statements of the 

Company and Group focusing particularly on:- 

(a) any changes in accounting policies and practices; 

(b) significant adjustments arising from the audit; 

(c) the going concern assumption; 

(d) compliance with accounting standards and other legal 

requirements. 

4. To discuss problems and reservations arising from the final 

and any interim audits; evaluation of the system of internal 

controls and any matter the external auditors may wish to 

discuss, including assistance given by the employees of the 

Group to the auditors; and to review the auditors’ audit report, 

management letter and management’s response. 

5. To consider any related party transactions and conflict of 

interest that may arise within the Group. 

6. To review the scope, functions, procedures of internal audit 

and results of any internal audit conducted and whether or not 

appropriate actions, where necessary have been taken. 

7. Such other functions as may be agreed by the Audit 

Committee and the Board of Directors. 

Authority 

The Committee is authorised by the Board within its term of 

reference and at the cost of the Group to investigate any matter 

and shall have the resources which are required to perform its 

duties. 

The Committee also has full and unrestricted access to any 

information pertaining to the Group and has direct communication 

channels with the external auditors and person carrying out the 

internal audit function or activity. 

The Committee is authorised to obtain independent professional 

or other advice and to secure the attendance of outsiders with 

relevant experience and expertise if it considers this necessary.

Meetings & Minutes 

Meetings shall be held not less than four times a year. 

Additionally the Chairman shall convene a meeting of the 

Committee if requested to do so by its member, the management 

or the internal or external auditors to consider any matters within 

the scope and responsibilities of the Committee. 

An Agenda shall be sent to all members of the Committee and any 

persons that may be required to attend. Minutes of each meeting 

shall be kept and distributed to each member of the Committee 

and also the members of the Board of Directors. The Secretary 

to the Audit Committee shall be the Company Secretary. 

Attendance 

During the financial year ended 30 April 2004, seven (7) Audit 

Committee’s meetings were held which were attended in full by all 

members of the Committee. 

Summary of Activities 

The activities conducted were in accordance with the terms of 

reference of the Committee that included the following: 

(i) reviewed the draft quarterly and year-end results of the 

Company and the Group before recommending to the Board 

for its approval; 

(ii) reviewed the audited financial statements of the Company and 

the Group prior to submission to the Board for consideration 

and approval; 

(iii) reviewed the external auditors’ scope of work and audit plan 

for the year. The audit plan was presented by representatives 

from the external auditors; 

(iv) met with the external auditors before finalisation of the 

audited accounts for the year under reviewed; and 

(v) reviewed the internal auditors’ reports and the external 

auditors’ report and management letter, if any. 

Internal Audit Function 

The internal control function is independent and has no 

involvement in the operations of the Group. It was set up to assist 

the Audit Committee in providing assurances that the internal 

control system of the Group is adequate. 

For the year under review, audits were performed to evaluate and 

identify any weaknesses of the internal controls affecting the 

Group, the adequacy of the existing system of controls and to 

recommend measures to management to improve and rectify any 

weaknesses. 

A number of internal control weaknesses were identified, all of 

which have been or are being attended to. None of these 

weaknesses have resulted in any material loss or contingencies 

that might require disclosure. 

pg.23

pg.24 

CHAIRMAN’S STATEMENT

Dear Shareholders, 

On behalf of the Board of Directors, it gives 

me great pleasure to present the Annual 

Report and Financial Statements of the Group 

and of the Company for the year ended 

30 April 2004. 

FINANCIAL PERFORMANCE 

The financial year 2004 continued to be challenging. Turnover for 

the financial year rose substantially by 25.1% from the previous 

year to RM202.4 million on the back of an increase in volume of 

aluminium extrusion sold. Despite the increased turnover, the 

Group achieved a consolidated profit before taxation of RM15.5 

million, a drop of 3.7% compared to RM16.1 million in the 

previous year. The main reason for the drop was lower margins 

consistent with intense competition and the difficult operating 

environment. The Group’s profit after taxation, however, increased 

marginally to RM13.8 million compared to RM13.1 million 

previously due to availability of reinvestment allowances and the 

overprovision of taxation in prior year. 

As at 30 April 2004, the Group’s shareholders’ fund stood at 

RM135.8 million whilst net tangible asset per share is RM1.92. 

Group’s borrowings net of short-term deposits and cash at bank 

are RM31.0 million which gives a gearing ratio of only 0.23. 

CORPORATE DEVELOPMENTS 

The Company had on 29 July 2003 through its adviser, 

AmMerchant Bank Berhad, announced a proposed extension of 

the duration and exercise period of the LB Aluminium Berhad 

Warrants (“LBA Warrants”) by five (5) years from 8 June 2005 to 

expire on 7 June 2010. Upon receipt of approvals from the 

Securities Commission, the shareholders of the Company, the 

holders of LBA Warrants and other relevant authorities 

respectively, the Company executed a Supplemental Deed Poll on 

31 October 2003 to give effect to the aforesaid extension. 

On 29 January 2004, the Company’s adviser had on behalf of the 

Company announced a bonus issue up to 77,901,300 new 

ordinary shares of RM1.00 (“Bonus Shares”) each on the basis of 

three (3) Bonus Shares for every four (4) existing ordinary shares 

held (“Bonus Issue”). The Bonus Issue will give rise to 

adjustments to the subscription price and/or number of 

warrant/option in respect of the Company’s unexercised LBA 

Warrants and unexercised Employee Share Option Scheme 

(“ESOS”) options respectively. Approvals from Bursa Malaysia 

Securities Berhad and the Company’s shareholders were obtained 

on 28 April 2004 and 28 July 2004 respectively. The Bonus Issue 

was completed on 6 September 2004 with the listing and 

quotation of the Bonus Shares and the additional LBA Warrants. 

In conjunction with the Bonus Issue, the Company had increased 

its authorized share capital from RM150,000,000 comprising 

150,000,000 ordinary shares of RM1.00 each to 

RM300,000,000 comprising 300,000,000 ordinary shares of 

RM1.00 each by the creation of additional 150,000,000 new 

ordinary shares of RM1.00 each. 

The Company entered into a Share Sale Agreement dated 

17 March 2004 with Dalton Technologies Inc., Gary Samuel and 

Rowland Trade Limited for the acquisition by the Company of 40% 

equity interests in Pyxis Group Limited (“Pyxis”) which is 

effectively 200 standard shares of NZD1.00 each for a 

consideration of AUD3.75 million (RM11.0 million). The 

acquisition was completed on 10 May 2004. 

In its annual review, Rating Agency Malaysia Berhad had upgraded 

the standalone long term rating of the Company’s RM50.0 million 

3.5% Redeemable Unsecured Bonds 2000/2005 (“Bonds”) 

issued in June 2000 to A1. 

DIVIDENDS 

The Board of Directors is pleased to recommend a first and final 

tax exempt dividend of 2.85 sen per share (2003 – 5.0 sen per 

share) assuming completion of the Bonus Issue as explained 

above in respect of the financial year ended 30 April 2004 subject 

to the approval of the shareholders at the forthcoming annual 

general meeting. 

CURRENT YEAR’S PROSPECTS 

Bank Negara Malaysia has forecast Malaysia’s Gross Domestic 

Product (“GDP”) for 2004 to be at 6.0% to 6.5% with the 

construction industry expected to grow at 1.5%. The Group has 

and will continue to concentrate on our core business and 

coupled with the support from our customers and suppliers, we 

are confident that we will continue to be the major player in the 

aluminium extrusion business in Malaysia. The Group has also 

renewed efforts to explore opportunities in the export market and 

anticipate that it will contribute to the future growth of the Group. 

Barring unforeseen circumstances, the Board expects the 

performance of the current year to be an improvement over the 

previous year. 

APPRECIATION 

On behalf of the Board, I would like to take this opportunity to 

thank our valued customers, business partners and shareholders 

and look forward to working with you for another mutually 

beneficial and rewarding year. 

To the Management and staff, I wish to express my heartfelt 

thanks for their loyalty, commitment and hard work during this 

difficult and challenging period. 

Y. Bhg. Dato’ Mohd. Ghazali Bin Mohd. Khalid 

Chairman of the Board/Independent Non-Executive Director 

pg.25

pg.26 

MANAGING DIRECTOR’S OPERATIONS REVIEW

The Group’s turnover continued to 

grow substantially to reach 

RM202.4 million or a 25.1% 

improvement over the previous 

year on the back of a rise in 

aluminium extrusions volume sold 

despite a highly competitive 

environment in 2004. However, 

gross profit margin declined as the 

Group aggressively raises its 

volume in view of the increase 

production capacity as well as to 

maintain its position as the leading 

player in the domestic aluminium 

extrusion industry. 

View of extrusion 

factory floor. 

New UBE extrusion press. Anodising plant. 

REVIEW OF OPERATIONS 

We have taken delivery of a new UBE extrusion press which 

together with ancillary equipment were installed and commenced 

operations in March 2004. The new press increased our 

capacities by 3,600 metric tonnes to 27,600 metric tonnes per 

annum and was timely as it enabled us to clear the backlog as 

well as meeting new demand which resulted in an increase of 24% 

in volume of aluminium extrusion sold. The increase extrusion 

capacity also allows us to maximize the utilization of the vertical 

anodizing plant thus reducing unit cost of production. The building 

sector remains the Group most important customer base given 

the continued growth in building activities, particularly residential 

projects. Notwithstanding, we continue to consciously diversify 

our customer base so as to cushion the decline in any one sector. 

Albe Marketing Sdn Bhd (“Albe”), a wholly owned subsidiary, is 

involved principally in the marketing and trading of aluminium 

hardware and fittings. Albe continues to be profitable and efforts 

will continue to be made to increase its range of products whilst 

improving quality to meet with its clientele’s increasing 

sophistication and demand. 

We have taken delivery of a new UBE 

extrusion press which together with 

ancillary equipment were installed and 

commenced operations in March 2004. 

Okuma machining 

center. 

pg.27

pg.28 

LB Aluminium (Singapore) Pte Ltd (“LBS”) is our subsidiary in 

Singapore that markets and trades in aluminium extrusions and 

accessories. LBS have contributed positively to the Group’s 

profitability for the financial year under review. Another whollyowned 

subsidiary, Albe Metal Sdn Bhd (“AMSB”), is involved in the 

trading of aluminium sheets and other metal products. For the 

year under review, AMSB managed to return a small profit despite 

the high tariff rates on imported aluminium sheets. Plans are 

underway to activate our subsidiaries in Thailand for the 

marketing and trading of accessories sourced by Albe. 

We have moved into our new office building in Beranang in 2004. 

The new office building besides having sufficient space to cope 

with our expected expansion in the foreseeable future plus ample 

meeting and training rooms as well as a showroom, can also act 

as a showcase for our aluminium products due to the abundance 

use of aluminium extrusions in its completion. The old office 

building has been converted to house the die and mould 

equipment which now includes one (1) new unit machining center 

and two (2) new EDM machines. The upper floor of the old office 

was converted to the production office. 

Aluminium billets. 

Showroom featuring showcase 

of our Company’s projects. 

As mentioned in the Chairman’s Statement, the Group has 

acquired a 40% equity interest in Pyxis Group Limited (“Pyxis”), a 

New Zealand incorporated company, which is a technology 

provider for IP-based contact solutions intended for enterprises 

and contact centres. Pyxis’s operations are in Australia and New 

Zealand. The rationale for the acquisition was to enable the Group 

to obtain better returns from its surplus funds which are usually 

placed as short term deposits that yield returns of less than 4% 

per annum. It is an agreement amongst the shareholders of Pyxis 

that a listing be sought for Pyxis on MESDAQ within 18 months of 

the acquisition by the Group. In accordance with the shareholders' 

deed dated 26 April 2004, the entire equity interests of Pyxis was 

transferred to Radiant Platform Sdn. Bhd. ("RPSB") for 

RM28,000,000 which was satisfied by the issue of 27,999,998 

new RPSB ordinary shares of RM1.00 each at par. Consequently, 

the Group owns 11,200,000 ordinary shares of RM1.00 each 

representing 40% equity interest in RPSB which in turn holds 

100% equity interest of Pyxis. 

New EDM machine.

OUTLOOK 

Gross profit margins which was the bane of the relatively poor 

performance last year has since recovered to a more respectable 

level. Improving margins will be a priority for the Group through 

value-added activities, widening customer base as well as 

broadening the range of products. 

Aluminium extrusion business will continue to be our main focus 

and in this respect we will continue to reengineer the Group to 

build on our core competencies. This includes having the right 

people with the right skills in the right place, focusing the Group’s 

resources on areas of growth, implementation of cost reduction 

measures, right sizing of inventories, improving delivery 

mechanisms and quality, and increasing productivity. 

Despite external factors like high oil prices and the vagaries of the 

United States, European and Japanese economies which will 

continue to have an impact on us, we are optimistic of the 

prospect of the Malaysian economy. Moving forward, we will 

continue to seek for opportunities to expand our production 

capacity either through the acquisition of existing companies or 

Control panel of 

UBE extrusion press. 

View of aging furnance and 

cooling tables. 

organic growth. Whilst, aluminium extrusions will continue to be 

our main focus, it will not preclude us from investing in ventures 

that would give the Group superior returns at acceptable risks. 

ACKNOWLEDGEMENT 

As always, I am grateful to our customers, business associates, 

suppliers, government departments and relevant authorities for 

their support and cooperation throughout the year. My 

appreciations also go out to all the shareholders and holders of 

LB Warrants for their trust and confidence in the Group. 

To the Management and staff, my gratitude for their hard work 

and commitment for making it another reasonably good year for 

the Group. 



Central courtyard of our 

new office building. 

Vertical anodising plant. 

pg.29

pg.30 

BRANCHES IN 

MALAYSIA 

Head office 





Tel : 03-87238822 (15 lines) 

Fax : 03-87233191 (General) 

03-87237272 (Sales) 

E-mail : enquiry@lbalum.com.my 

Website : www.lbalum.com 

Kuala Lumpur 

Lot 1501, Sungei Way 

9th Mile Jalan Kelang Lama 

Mukim of Petaling 



Tel : 03-78778898 

Fax : 03-78778878 

Johor Bahru 

14 & 18, Lot PLO 206 

Jalan Angkasa Mas 5 

Kawasan Perindustrian Tebrau II 

81100 Johor Bahru 

Johor Darul Takzim 

Tel : 07-3550546 

Fax : 07-3550549 

Penang 

Lot 241 (PT 1075) 

Tingkat Perusahaan 6 

Kawasan Perusahaan Perai 

13600 Perai, Pulau Pinang 

Tel : 04-3976998 

04-3976995 

Fax : 04-3976997 

BRANCH NETWORK 

Kuantan 

No. 4, Jalan IM 3/6 

Kawasan Perindustrian 

Bandar Indera Mahkota 

25200 Kuantan 

Pahang Darul Makmur 

Tel : 09-5736666 

Fax : 09-5733322 

Kuching 

Lot 854, Section 66 

Jalan Keluli 

Pending Industrial Estate 

93450 Kuching, Sarawak 

Tel : 082-482433 

082-482378 

082-482379 

Fax : 082-482389 

Kota Kinabalu 

Lot 7, Lorong Mangga-3 

SEDCO Industrial Estate 

5 1/2 Miles 

(Off Jalan Kolombong) 

88450 Kota Kinabalu, Sabah 

Tel : 088-436421 

088-436422 

Fax : 088-436423 

SUBSIDIARIES IN 

MALAYSIA 

ALBE MARKETING 

SDN. BHD. (446723-K) 

53 & 55, Jalan PBS 14/10 

Taman Perindustrian 

Bukit Serdang 

43300 Seri Kembangan 


Tel : 03-89454919 

03-89454920 

03-89454921 

Fax : 03-89454916 

ALBE METAL SDN. BHD. 

(562008-A) 

Godown No. 23, Lot 7574 

Jalan 1/113A, 4 1/2 Miles 

Jalan Kelang Lama 


Tel : 03-79813988 

Fax : 03-79818293 

SUBSIDIARIES IN 

OVERSEAS 

DISTRIBUTORS/DEALERS IN MALAYSIA 

• Kangar 

• Alor Setar 

• Butterworth 

• Ipoh 

• Kuala Lumpur 

OVERSEAS MARKETS 

• Australia 

• Brunei 

• Canada 

• Hong Kong 

• Mauritius 

• New Zealand 

• Shah Alam 

• Seremban 

• Melaka 

• Johor Bahru 

• Kuantan 

• Pakistan 

• Philippines 

• Singapore 

• Sri Lanka 

• Thailand 

• United Kingdom 

LB ALUMINIUM (SINGAPORE) 

PTE. LTD. (200009299G) 

No. 109, Kaki Bukit Avenue 1 

#01-00 Shun Li Industrial Park 

Singapore 415989 

Tel : 02-63459131 

02-67455693 

Fax : 02-67455627 

LB ALUMINIUM (THAILAND) 

CO., LTD. (KT-06-0053-45) 

94/788 Moo 4 

Soi Petrkasaem 94 

Petrkasaem Road 

Kweang North Bangkae 

Khet Bangkae 

Bangkok 10160 Thailand 

Tel : 662-24440607-8 

662-24440596 

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