Oct 2022 :- SCOPE Annual Report 2022

ASSEMBLING

FUTURE OF

EXCELLENCE

Contents

ASSEMBLING

FUTURE OF

EXCELLENCE

As one of the key players in Electronics Manufacturing industry along with its plantation division, Scope Industries Berhad assembles each key sectors of its business to achieve a great future. Connecting with its partners, together follow on the right path enables the Company to reach greater position, setting itself ready for the next elevation towards excellent.

1. Corporate Information
2. Financial Highlights
3. History, Principal Activities and Group Structure
4. Management Discussion and Analysis

9 Sustainability Statement

12 Profile of Directors

1. Profile of Key Senior Management
2. Corporate Governance Overview Statement

25 Additional Information

28 Statement on Risk Management and Internal Control

30 Audit Committee Report

32 Directors' Report

1. Directors' Statement and Statutory Declaration
2. Independent Auditors' Report to the Members

1. Statements of Financial Position
2. Statements of Comprehensive Income
3. Consolidated Statement of Changes in Equity
4. Statement of Changes in Equity
5. Statements of Cash Flow

50 Notes to the Financial Statements

106 Notice of Annual General Meeting

1. Statement Accompanying Notice of Annual General Meeting
2. List of Properties

113 Analysis of Shareholdings

115 Analysis of Warrant Holdings

Enclosed Proxy Form

2	Scope Industries Berhad

Corporate Information

Directors

Lee Min Huat

(Executive Chairman)

Lim Chiow Hoo

(Managing Director)

Lim Ee Tatt

(Non-IndependentNon-Executive Director)

Hsu, Ching-Chen

(Non-IndependentNon-Executive Director)

Tan Poh Heng

(Senior Independent Non-Executive Director)

Company Secretaries

Chee Wai Hong (BC/C/1470)

SSM PC No. 202008001804

Tan She Chia (MAICSA 7055087)

SSM PC No. 202008001923

Audit Committee

Law Kim Fatt (Chairman)

Tan Poh Heng

Lim Ee Tatt

Remuneration Committee

Tan Poh Heng (Chairman)

Lim Ee Tatt

Law Kim Fatt

Nomination Committee

Tan Poh Heng (Chairman)

Law Kim Fatt

Registered Office

48, Jalan Chow Thye

10050 George Town

Pulau Pinang

Tel: [phone]

Business Address

Lot 6181 Jalan Perusahaan 2

Kawasan Perindustrian Parit Buntar

34200 Parit Buntar, Perak

Tel: [phone]

Fax: [phone]

Law Kim Fatt

(Independent Non-Executive Director)

Tan Choon Heong

(Executive Director)

(Resigned on 7 February 2022)

Yee Wei Meng

(Non-IndependentNon-Executive Director) (Resigned on 7 February 2022)

Yong Loong Chen

(Independent Non-Executive Director) (Retired on 23 November 2021)

Share Registrar

Boardroom Share Registrars Sdn. Bhd. 11th Floor, Menara Symphony

No. 5, Jalan Prof. Khoo Kay Kim

Seksyen 13

46200 Petaling Jaya

Selangor Darul Ehsan

Tel: [phone]

Fax : [phone]

Auditors

Grant Thornton Malaysia PLT

Chartered Accountants

Level 5, Menara BHL Bank

51, Jalan Sultan Ahmad Shah

10050 Georgetown, Penang

Tel: [phone]

Fax: [phone]

Principal Bankers

AmBank (M) Berhad

AmInvestment Bank Berhad

Affin Islamic Bank Berhad

Stock Exchange Listing

ACE Market of Bursa Malaysia Securities Berhad

Stock Name for Ordinary Shares: SCOPE (Stock Code: 0028)

Website

http://www.scope.com.my

Annual Report 2022

3

Financial Highlights

	FYE 2018	FYE 2019	FYE 2020	FYE 2021	FYE 2022
Revenue	22,291,018	15,550,162	19,638,255	87,188,214	171,839,365
Profit/(Loss) before tax	1,761,190	(5,209,069)	(26,094,479)	7,876,339	7,678,874
Equity	117,473,601	121,184,130	101,376,713	126,981,890	204,267,397
Net assets per share (sen)	20.96	19.57	15.33	16.51	17.71
Number of Shares in issue	560,484,430	619,132,873	661,458,273	769,115,306	1,153,672,959

Revenue
FYE	22,291,018
2018
FYE	15,550,162
2019
FYE	19,638,225
2020
FYE	87,188,214
2021

FYE 171,839,365 2022

Equity

FYE 117,473,601 2018

FYE 121,184,130 2019

FYE 101,376,713 2020

FYE 126,981,890 2021

FYE 204,267,397 2022

Profit/(loss) before tax

FYE	1,761,190
2018
FYE	(5,209,069)
2019
FYE	(26,094,479)
2020
FYE	7,876,339
2021
FYE	7,678,874
2022

Net assets per share (sen)

FYE	20.96
2018
FYE	19.57
2019
FYE	15.33
2020
FYE	16.51
2021
FYE	17.71
2022

4	Scope Industries Berhad

History, Principal Activities and Group Structure

Scope Industries Berhad ("Scope") was incorporated in Malaysia on 2 September 2002 under the Companies Act, 1965 as a public limited company under its present name. Scope is principally an investment holding company with three (3) wholly-owned subsidiaries, namely Scope Manufacturers (M) Sdn. Bhd. ("SMSB"), Benua Mutiara Sdn. Bhd. ("BMSB") and Scope Realty Sdn. Bhd. ("SRSB"). Besides that, Scope has a seventy percent (70%) owned subsidiary, Pioneer Glow Sdn. Bhd. ("PGSB") and a sixty percent (60%) owned subsidiary, Scope Global Distributor Pte. Ltd. ("SGDPL").

The core business of Scope Group are manufacture and assembling of electrical and electronics components and products, oil palm plantation and trading of electronic products. On 2 August 2022, the Group incorporated Scope Realty Sdn. Bhd. with the purpose of provision of dormitory accommodation and services to its employees as well as involved in property investments.

The current group structure is as follows:-

(Incorporated in Malaysia)

100% 100% 70% 60% 100%

SMSB BMSB PGSB SGDPL SRSB

The principal activities of its subsidiaries are as follow:-

Companies	Date and Place of Incorporation	Principal activities
Subsidiaries
Scope Manufacturers (M)	20 November 1991	Manufacturing and assembling of electrical and
Sdn. Bhd. (SMSB)	Malaysia	electronics components and products.
Benua Mutiara Sdn. Bhd.	28 September 1990	Cultivation of oil palm.
(BMSB)	Malaysia
Pioneer Glow Sdn. Bhd.	20 August 1997	Cultivation of oil palm.
(PGSB)	Malaysia
Scope Global Distrubutor	15 October 2020	Trading in electrical and electronic products.
Pte. Ltd. (SGDPL)	Singapore
Scope Realty Sdn. Bhd.	2 August 2022	Property investments and provision of dormitory
(SRSB)	Malaysia	accomodation and services