United Overseas Australia : UOA Development Bhd - Annual Report 2021

COVER

Komune Living & Wellness is an integrated co-living and wellness hub situated next to an urban park in the thriving township of Cheras, with an emphasis on senior care facilities and services. Designed to create a holistic living environment, it houses a co-living hotel, senior living facilities, and a wellness centre - collectively offers comprehensive health, wellness and care services for better community living.

CONTENTS

2	Management Discussion And Analysis	36
6	Sustainability Statement	39	Statement On Risk Management And Internal Control
18	Corporate Information	44	Additional Compliance Information
19	Financial Calendar	46	Directors' Responsibility Statement
20	Corporate Structure	47	Reports And Financial Statements
21	In Remembrance Of The Late Alan Charles Winduss	134	List Of Material Properties Held By The Group
22	Board Of Directors	135	Analysis Of Shareholdings
23	Profile Of Board Of Directors	138	Statement Of Directors' Interest
27	Key Management Team	139	Notice Of The Eighteenth Annual General Meeting
28	Profile Of Key Management Team	146	Statement Accompanying Notice Of Annual General
Meeting
30	Corporate Governance Statement
•	Proxy Form

Audit And Risk Management Committee Report

Komune Living & Wellness

UOA DEVELOPMENT BHD

MANAGEMENT DISCUSSION AND ANALYSIS

Year Ended 31 December (RM'000)	2021	2020	2019	2018	2017 (Restated)
Revenue Profit Before Tax Finance Cost Profit After Tax Profit Attributable to Shareholders Paid-Up Capital Shareholders' Equity Total Assets Employed Total Net Tangible Assets Total Borrowings Debt/Equity (times) Basic Earnings Per Share (RM) Net Tangible Assets Per Share (RM) Share Price - Year High (RM) Share Price - Year Low (RM) Closing Share Price @ End of Financial Year (RM) Total Yearly Share Volume Traded ('000) Market Capitalisation @ End of Financial Year (RM 'billion)	547,484 316,692 475 228,344 222,447 2,821,766 5,628,990 6,409,418 5,804,794 1,298 negligible 0.10 2.50 1.92 1.54 1.67 112,711 3.89	844,597 479,956 1,037 399,733 391,288 2,519,752 5,418,187 6,172,310 5,595,257 1,697 negligible 0.19 2.63 2.12 1.38 1.69 139,687 3.59	1,104,457 510,097 7,375 408,422 399,474 2,286,285 5,064,894 5,962,879 5,271,868 98,613 0.02 0.21 2.68 2.45 1.87 2.03 121,029 3.99	1,263,677 505,850 6,663 411,598 378,916 546,343 4,680,733 5,791,404 4,945,838 120,296 0.03 0.21 2.68 2.71 1.84 2.12 122,670 3.91	1,078,257 676,019 4,171 541,946 506,735 309,607 4,329,842 5,591,517 4,587,024 126,830 0.03 0.30 2.64 2.76 2.30 2.39 222,111 4.14

Komune Living & Wellness

OVERVIEW OF GROUP'S BUSINESS AND OPERATIONS

Financial year 2021 was another challenging year. The resurgence of the Covid-19 virus during the middle of the year had impacted the recovery of economic activities and resulted in an overall subdued property market. Construction activities during the year were slower as a result of compliance to the Covid-19 standard operating procedures (SOPs) during the period of national lockdown, which was implemented by the Government in an effort to curb the spread of the

Covid-19 virus. After the lockdown was lifted, the resumption of economic activities was gradual along with the relaxation of the Covid-19 SOPs. As a result, the Group did not launch any new project amidst all the disruptions during the year. The property sales generated during the year were from our on-going and completed projects.

In financial year 2021, the total property sale for UOA Development Bhd and its subsidiaries (the "Group") was at approximately RM341.2 million, of which more than 90% of the properties sold were in the residential segment. With the reduced activities from the hospitality division, rental income continued to form a substantial part of the Group's Other Income. The drop in income from hospitality division

was a result of the pandemic with closure of borders and restriction on travelling.

Summary of the Group's financial and share price performance for the past five years:

MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED)

REVENUE (RM'000)

1,263,677

1,078,257

2019

1,104,457

844,597

2017

2018

2020

PROFIT BEFORE TAX (RM'000)

676,019

510,097

547,484

2021

505,850

479,956

316,692

2017

2018

2019

2020

2021

Bamboo Hills

REVIEW OF FINANCIAL RESULTS AND FINANCIAL CONDITION

In financial year 2021, the total revenue from property development for the Group was at RM547.5 million and the profit after tax and minority interests (PATAMI) was at RM222.4 million for the financial year ended 31 December 2021.

The Group came in lower at RM547.5 million compared to the previous financial year. As there was no new property launch and all sales during the financial year were from existing projects, the Group recorded a lower revenue during the financial year. The strict Covid-19 SOPs placed some restriction on construction activities during the lockdown which resulted in a slower progress on revenue recognition.

The Group registered a PATAMI of RM222.4 million in financial year 2021 compared to RM391.3 million in the preceding year. The Group's lower PATAMI was mainly attributable to the lower revenue recognition, higher impairment losses of non-financial assets as well as the lower other income.

Finance Income was higher at RM31.4 million compared to RM21.2 million in the preceding year. The increase in Finance Income is mainly arising from the higher interest income generated from the cash proceeds from the disposal of UOA Corporate Tower.

Other Income was lower at RM164.1 million compared to RM190.8 million in the preceding year. The lower Other Income was mainly attributable to the lower income from both rental and the operation of the Group's hospitality division. Rental income which forms the substantial part of Other Income declined, mainly due to the disposal of UOA Corporate Tower at the end of the previous financial year. The decrease in income from hospitality division was due to the Covid-19 pandemic which resulted in economic activities and travel restrictions as well as limitation on hosting conferences and events.

As at 31 December 2021, the cash and cash equivalents remained robust at RM1.79 billion. The finance costs were subsequently reduced to RM0.5 million as the end of the financial year from RM1.0 million in the previous year, as the borrowings have been substantially settled in the financial year 2020.

The capital commitment of the Group as at 31 December 2021 was at RM13.6 million. The capital commitment is mainly for the construction of investment properties and is expected to be funded from internally generated funds.