CREATING WORLD-CLASS SPACES - … · development in Kuala Lumpur and Kota Kinabalu, ... has a 30% stake in associated company, Henan Zhongyuan Group, ... sits on the most coveted

ANNUAL REPORT

2017

C R E A T I N G

W O R L D - C L A S S

S P A C E S

C O N T E N T S

01 Corporate Profile

02 At a Glance

04 Group Structure

05 Our Footprint

06 Message to Shareholders

09 Board of Directors

16 Our Property Portfolio

24 Corporate Information

25 Corporate Governance Reports & Financial Statements

C O R P O R A T E P R O F I L EListed on the Mainboard of the Singapore Exchange, GSH Corporation Limited is a growing property developer in Southeast Asia, with four properties under development in Kuala Lumpur and Kota Kinabalu, Malaysia. It also owns and operates the Sutera Harbour Resort in Kota Kinabalu, comprising two five-star hotels, a 104-berth marina and a 27-hole championship golf course.

In 2017, the Group completed the redevelopment of its flagship commercial property, GSH Plaza, which it later divested that same year. The Group also has a 30% stake in associated company, Henan Zhongyuan Group, which owns one of the largest food logistics and warehousing hubs in China.

M I S S I O N V I S I O N

TO GROW STAKEHOLDER VALUE FROM DELIVERING PREMIUM REAL ESTATES AND SERVICES FOR THE RESIDENTIAL,COMMERCIAL AND HOSPITALITY MARKETS IN ASIA AND BEYOND.

CREATING WORLD-CLASS SPACES FOR LIVING, BUSINESS AND LEISURE.

ANNUAL REPORT 2017 1

A T A G L A N C ESITEAREA

SITEAREA

GROSS FLOOR AREA

GROSS FLOOR AREA

acres acres

sq ft sq ft

1.44 12.11

747,746 1,280,916

PROPERTY DEVELOPMENTIn FY2017, the Group’s property development business posted full-year revenue of S$35.6 million, up 45.6% year-on-year. This was boosted by the progressive sales recognized from the Group’s residential project in Kuala Lumpur – Eaton Residences. Launched in FY2016, Eaton Residences achieved strong sales which would be progressively recognized over the construction period of the project to FY2020.

During the year in review, the Group’s property development business posted record profit before tax of S$94.7 million, largely due to a disposal gain of S$74.5 million from the sale of its entire investment in Plaza Ventures Pte Ltd.

The Group also completed its S$41.0 million investment for a 30% stake in Henan Zhongyuan Group (“HZY”), which owns one of the largest food logistics and warehousing hubs in China.

R E S I D E N T I A L

F I N A N C I A L H I G H L I G H T S

This residential project at Jalan Kia Peng will be developed into high-end service apartments with full condominium facilities

EATON RESIDENCES Located next to The Magellan Sutera Resort, Coral Bay

is an uber-luxurious oceanfront residential project with premium finishes and full condominium facilities. Nestled within the gated precinct of Sutera Harbour, Coral Bay sits on the most coveted land parcels earmarked for residential developments in Kota Kinabalu.

CORAL BAY

The investment in the industrial assets is held for lease and yielded good returns. In FY2017, the Group recorded a total share of profit of S$17.3 million from HZY, consisting recognition of net negative goodwill of S$11.7 million from the investment and share of operational profit of S$5.6 million.

HOSPITALITYThe Group’s hospitality assets in Kota Kinabalu, Sabah – namely Pacific Sutera Hotel and Magellan Sutera Resort – achieved higher occupancy rates and average room rates in FY2017. The Group’s hospitality business achieved profit before tax of S$17.6 million, which was a 131% jump from the year-ago period, on the back of a 19% rise in revenue to S$74.7million.

Sabah continued to be a tourism hot spot, especially for visitors from South Korea and China. Tourism arrival from these 2 countries grew by 29% year-on-year.

GSH CORPORATION LIMITED2

FY2017

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

FY2016

MAGELLAN SUTERA

PACIFIC SUTERA

SUTERA HARBOUR MARINA,GOLF & COUNTRY CLUB

rooms rooms holes award-winningchampionship golf course

456 500 27

H O S P I T A L I T Y

The 384-acre Sutera Harbour Resort in Kota Kinabalu is GSH Corporation’s flagship in its Hospitality business segment, providing steady recurrent income from its room and food-and beverage operations.

SUTERA HARBOUR RESORT

REVENUE BY ACTIVITY PROFIT/(LOSS) BEFORE TAX

Property Development Property Development

Hospitality Hospitality

FY2017

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

FY2016

FY2017

FY2016

20,0000-20,000 40,000 60,000 80,000 100,000

(3,221)24,455

94,66435,596

74,729 17,592

62,704 7,624

FY2017

FY2016

0

0 0 5,000 10,000 15,000 20,000


G R O U P S T R U C T U R E

河南中原四季水产物流港股份有

限公司30%

群策环球 (西安）房地产有限公司

100%

河南领航农牧科技有限公司

100%

Ocean View Point

Pte Ltd100%

AltheimInternational

Ltd75.0%

MewabumiSdn Bhd

100%

MXIM HoldingsPte Ltd79.4%

MainfieldHoldings Ltd

85%

The SuteraHarbour Group

Sdn Bhd77.5%

City View VenturesSdn Bhd

100%

Sutera Yacht ServicesSdn Bhd

30%

Sutera HabourResort

Sdn Bhd100%

Ocean ViewVentures Pte Ltd

100%

Borneo VenturesPte Ltd100%

GSH Properties(Malaysia) Pte Ltd

100%

GSH Facilities Management

(Malaysia) Sdn Bhd

100%

GSH PropertiesPte Ltd100%

GSH Investments

Limited100%

GSH (Middle East)

Pte Ltd100%

GSH (Xiamen) Property

Development Pte Ltd100%

GSH (Zhengzhou) Investments

Pte Ltd100%

GSH (Xi’an) Investments Pte Ltd (f.k.a

GSH (Xiamen) Investments

Pte Ltd100%


China

Singapore

Malaysia Sabah, Malaysia

O U R F O O T P R I N T

Eastworth Source

Sdn Bhd100%

Sutera HarbourGolf & Country

Club Berhad100%

Advanced PrestigeSdn Bhd

100%

Sutera HarbourTravel Sdn Bhd

100%

The Little ShopSdn Bhd

100%

Xing Asia ImpelSdn Bhd

100%

InvestasiaSdn Bhd

100%

Linyi PropertiesSdn Bhd

100%

SINGAPORE GSH CORPORATION LIMITED 20 Cecil Street, #28-01,GSH Plaza, Singapore 049705Tel : (65) 6585 8888Fax : (65) 6881 1000

MALAYSIAADVANCED PRESTIGE SDN BHDTHE MAGELLAN SUTERA RESORT1 Sutera Harbour Boulevard Kota Kinabalu 88100 SabahMalaysiaTel : (60) 88318 888Fax : (60) 88317 777

EASTWORTH SOURCE SDN BHDTHE PACIFIC SUTERA1 Sutera Harbour Boulevard Kota Kinabalu 88100 SabahMalaysiaTel : (60) 8 8318 888Fax : (60) 8 8317 777

SUTERA HARBOUR GOLF & COUNTRY CLUB BERHAD1 Sutera Harbour Boulevard Kota Kinabalu 88100 SabahMalaysiaTel : (60) 8 8318 888Fax : (60) 8 8317 777

CHINA 河南中原四季水产物流港股份有限公司郑州市惠济区绿源路8号邮区450049Tel : (86) 371 86660288Fax : (86) 371 86667777

CITY VIEW VENTURES SDN BHDCorrespondence address: Level 45, Naza Tower, Platinum Park, No. 10, Persiaran KLCC 50088 Kuala LumpurTel : (60) 3 2633 3168Fax : (60) 3 2633 3033

INVESTASIA SDN BHD1 Sutera Harbour Boulevard Kota Kinabalu 88100 SabahMalaysiaTel : (60) 8 8318 888Fax : (60) 8 8317 777

LINYI PROPERTIES SDN BHD1 Sutera Harbour Boulevard Kota Kinabalu 88100 SabahMalaysiaTel : (60) 8 8318 888Fax : (60) 8 8317 777


M E S S A G E T OS H A R E H O L D E R S

OUR STRATEGY OF MANAGING HOSPITALITY ASSETS FOR

RECURRENT INCOME, AND A WELL-PACED PIPELINE OF

DEVELOPMENT PROPERTIES FOR SALE, HAS BEEN FRUITFUL.


Dear Shareholders,

FY2017 has proven to be another successful year for the Group. We are pleased that our strategy of managing hospitality assets for recurrent income, and a well-paced pipeline of development properties for sale, has been fruitful.

Thanks to the growth in our property business, largely due to the recognition of unit sales at Eaton Residences in Kuala Lumpur, and the continued high occupancy rates at our two hotels in Kota Kinabalu, we closed the year on a high note.

The Group achieved a net profit attributable to shareholders of S$87.5 million, with revenue jumping by 26.6% to S$110.3 million, boosted by a disposal gain of S$74.5 million from the sale of the Group’s entire investment in Plaza Ventures Pte Ltd. The Group registered earnings per ordinary share of approximately 4.5 cents, while net asset value per ordinary share rose 21% to 21.44 cents, as at 31 December 2017. Cash and cash equivalents surged more than 4 times to S$198.1 million.

Meanwhile, sales at our award-winning Eaton Residences in the heart of Kuala Lumpur city centre, has been brisk. To date, of Eaton’s 632 units, almost all non-Bumiputra units have been sold. The proceeds of these units will be progressively recognized over the construction period, which commenced in FY2017, and will continue through to FY2020.

SUTERA HARBOUR RESORT – PRIZED ASSET We are particularly pleased with the performance of our prized asset, Sutera Harbour Resort. During the year in review, both The Pacific Sutera Hotel and Magellan Sutera Resort in the bustling city of Kota Kinabalu, Sabah, enjoyed strong occupancy rates.

It continued to contribute recurrent income and exceptional value to the Group. After taking over the property in 2014, we had invested substantially to upgrade its infrastructure, landscaping and hotel rooms. This year, more resources will be allocated to further enhance the facilities of the marina, golf course and hotels, and to transform this integrated resort to become Sabah’s most important tourism attraction and a world-class destination.

LAUNCH OF OUR FIRST RESIDENTIAL PROJECT IN KOTA KINABALUWe are launching our first luxury condominium in Kota Kinabalu – Coral Bay. Designed by established Singapore architectural firm, Swan & McClaren, who were also the design consultants behind our award-winning Eaton Residences, this ocean-fronting project will have 460 units, ranging from 1,500 square feet to 9,000 square feet. Coral Bay is a widely-anticipated development, judging from the strong interest that we have received on the project. We believe that this site is probably the most coveted location in Kota Kinabalu, with its absolute sea frontage, stunning views of the ocean, the golf course and the mountains surrounding this East Malaysian city.

We expect a good response from investors in South Korea, Japan, Hong Kong and China, Malaysia and Singapore.


M E S S A G E T OS H A R E H O L D E R S

SECOND RESIDENTIAL PROJECT IN KUALA LUMPURWithin the next year, we should also be ready to launch our second luxury residential project in Kuala Lumpur. Hot on the heels of Eaton Residences, we have, on 12 February 2018, acquired a 50% stake in a prime land parcel of approximately 1.4 hectares in the heart of Kuala Lumpur’s Chinatown that could potentially be developed into a premium 1,700-unit condominium.

The site is strategically located in the shopping and foodies’ haven of Petaling Street, which is also known for its rich heritage and history. Apart from being well served by the MRT, LRT, KTM Komuter and Monorail network, it is also a short distance from the future Merdeka PNB 118 building. At 118 storeys, it will be the tallest iconic landmark in Malaysia, and the third highest in the world, when it is completed sometime in 2024.

INVESTMENT IN CHINA’S BURGEONING LOGISTICS INDUSTRY Our S$41.0 million investment for a 30% stake in associated company Henan Zhongyuan Group has also reaped good returns for the Group. In FY2017, the Group recorded a total share of profit of S$17.3 million from Henan Zhongyuan.

Henan Zhongyuan owns and operates one of the largest food logistics and warehousing hubs in China – in Zhengzhou and Tianjin – with estimated annual transaction values that are well in excess of RMB 80 billion. With its vision of becoming a world-class food logistics and warehousing provider, Henan Zhongyuan is on track to establish more of such hubs all over China, particularly in Wuhan, Fujian and Chongqing, in the next few years.

MOVING AHEAD We are expecting continued robust occupancy in our two hotels at Sutera Harbour Resort, boosted by strong tourist arrivals from China and South Korea.

Meanwhile, we continue to be on the look out for good properties in the region and in China, whilst honing our two-prong strategy of finding prime locations in key city gateways and creating premium signature designs. We believe this strategy will serve us well into the future, as we seek to create world-class spaces and continue to deliver value to our stakeholders.

APPRECIATION We would also like to take this opportunity to thank all of our shareholders, business partners, customers, directors, management and staff for their continued support. We, together with the rest of the Directors, are pleased to propose a final dividend of 1.25 Singapore cents per ordinary share.

The upcoming AGM will be held at our office on the 28th floor of GSH Plaza – we look forward to welcoming you at our new headquarters.

SAM GOI SENG HUIExecutive Chairman

GILBERT EE GUAN HUIChief Executive Officer


B O A R D O FD I R E C T O R S


GILBERT EE GUAN HUIChief Executive Officer

KENNETH GOI KOK MINGChief Operating Officer

JULIETTE LEE HWEE KHOONNon-Executive Director

HUANG LUIIndependent Director

SUN YUNon-Executive Director

MICHAEL GRENVILLE GRAYIndependent Director

FRANCIS LEE CHOON HUIVice Chairman and

Lead Independent Director



Date of first appointment as a director: 23 July 2012

Date of last re-election as a director:29 April 2016

Length of service as a director (as at 31 December 2017): 5 years 5 months

Shares in the Company:968,796,975

Present Directorships (as at 31 December 2017):Listed Companies:• GSH Corporation Limited • Envictus International Holdings Limited (Etika)• JB Foods Ltd• Tung Lok Restaurants (2000) Ltd

Group Companies of GSH Corporation Limited:• Advanced Prestige Sdn Bhd• Altheim International Limited• City View Ventures Sdn Bhd• Eastworth Source Sdn Bhd• Henan Zhongyuan Four Seasons Aquatic Logistics Harbour Co Ltd• Investasia Sdn.Bhd.• Linyi Properties Sdn Bhd• Mainfield Holdings Limited• Mewabumi Sdn Bhd• Mxim Holdings Pte Ltd• Sutera Harbour Golf & Country Club Berhad• Sutera Harbour Travel Sdn Bhd• Sutera Harbour Resort Sdn Bhd• Sutera Yacht Services Sdn Bhd • The Little Shop Sdn Bhd• The Sutera Harbour Group Sdn Bhd• Xing Asia Impel Sdn Bhd

Non-listed Companies:• Acelink Logistics Pte Ltd• China World Agents Limited• Chinatown Food Corporation Pte Ltd• Desaru Property Development Sdn Bhd• Fujian Guanhui Food Enterprise Co Ltd• Fujian Mingwei Food Enterprise Co Ltd• Fujian Ryushobo Food Co Ltd• Guan Hui Food Enterprise Company Limited• Hydrex International Pte Ltd• Junhe Investment Pte Ltd• Maker Food Manufacturing Pte Ltd• New Straits Holdings Pte Ltd• Oregold Pte Ltd• Ryushobo (S) Pte Ltd• Singapore University of Technology and Design• Super Elite Holdings Pte Ltd• T&T Gourmet Cuisine Pte Ltd

• Tan Kah Kee Foundation• Tee Yih Jia Food Manufacturing Pte Ltd• Tee Yih Jia Food Manufacturing Sdn Bhd • Twin Investment Pte Ltd• TYJ Group Pte Ltd• TYJ Holdings (HK) Ltd• TYJ International Pte Ltd• Yangzhou Junhe Property Development Co Ltd

Past Directorships over the last 3 years – 2015 to 2017:• G City Limited• JSL Foods, Inc.• Main On Foods (USA) Corp.• Plaza Ventures Pte Ltd• Sun Resources Holdings Pte Ltd• Super Group Ltd• Tianjin Junhe Industrial Corporation Ltd• Tianjin Junhe Investment Co., Ltd• Yangzhou Junhe Real Estate (Jiangsu) Co., Ltd

Major Appointments (other than Directorships):• Vice Chairman of Envictus International Holdings Limited• Vice-Chairman of JB Foods Limited• Enterprise 50 Club’s Honorary Past President and Vice Chairman of IE

Singapore’s “Network China” Steering Committee• Regional Representative for Fuzhou City and Fujian Province• Council member of the Singapore- Zhejiang Economic & Trade Council• Senior Consultant to Su-Tong Science & Technology Park• Honorary Chairman for the International Federation of Fuqing

Association• Member of the Singapore University of Technology and Design (SUTD)

Board of Trustees• Chairman of Ulu Pandan Citizens Consultative Committee.• Honorary Chairman of Dunman High School Advisory Committee

Background and Working Experience:• Executive Chairman of Tee Yih Jia Food Manufacturing Pte Ltd

since 1977• Managing Director of Sing Siah Electrical Engineering Pte Ltd - 1969• Investments across a range of listed and private entities in numerous

industries, such as food and beverage, consumer essentials, recycling, distribution and logistics.

Awards:• Special Tribute Award from The People’s Tribune magazine (People’s

Daily) in China – 2017• Asian Strategy & Leadership Institute’s Lifetime Achievement Award

in 2016• State Award of Panglima Gemilang Darjah Kinabalu (PGDK) from the

Head of State of Sabah - 2015• SG50 Outstanding Chinese Business Pioneers Award in 2015• Enterprise Asia’s Lifetime Achievement Award in 2015 • Businessman of the Year Award by Singapore’s Business Times – 2014• Public Service Star (Bar) - BBM(L) in 2014• Long Service Award from Singapore’s People’s Action Party - 2015



Date of first appointment as a director: 01 May 2007

Date of last re-election as a director: 20 April 2017


Shares in the Company :158,543,078

Committee Memberships:• Nominating Committee

Academic & Professional Qualifications:• Bachelor of Business Administration, National University

of Singapore

Present Directorships (as at 31 December 2017):Listed Company:• GSH Corporation Limited

Group Companies of GSH Corporation Limited:• Advanced Prestige Sdn Bhd• Altheim International Limited• Borneo Ventures Pte Ltd• City View Ventures Sdn Bhd• Eastworth Source Sdn Bhd• GSH (Middle East) Pte Ltd• GSH (Xi’an) Investments Pte Ltd• GSH (Xiamen) Property Development Pte Ltd• GSH (Zhengzhou) Investments Pte Ltd• GSH Investments Limited• GSH Properties (Malaysia) Pte Ltd• GSH Properties Pte Ltd• Henan Zhongyuan Four Seasons Aquatic Logistics Harbour Co Ltd• Investasia Sdn Bhd• Linyi Properties Sdn Bhd• Mainfield Holdings Limited• Mewabumi Sdn Bhd• MXIM Holdings Pte Ltd• Ocean View Point Pte Ltd• Ocean View Ventures Pte Ltd• Sutera Harbour Golf & Country Club Berhad• Sutera Harbour Resort Sdn Bhd• Sutera Harbour Travel Sdn Bhd• Sutera Yacht Services Sdn Bhd • The Little Shop Sdn Bhd• The Sutera Harbour Group Sdn Bhd• Xing Asia Impel Sdn Bhd

Non-listed Companies:• Oxley JV Pte Ltd• Solstice Investments Pte Ltd• Solstice Development Pte Ltd

Past Directorships over the last 3 years – 2015 to 2017:• Europlastik Sdn Bhd• GSH Distribution (Cambodia) Pte Ltd• JEL Trading (Bangladesh) Ltd• Plaza Ventures Pte Ltd• S11 Group Co. Limited• SATCOM iCentre Ltd• Serial Itech (Far East) Pte Ltd• Serial Itech Franchising Pte Ltd

Background and Working Experience:• Held various management positions in Barclays Capital and

Citibank, Singapore (1988 to 1998)• Regional Head of Global Financial Markets at Rabobank

International, Singapore (1998 to 2006)

GILBERT EE GUAN HUI Chief Executive Officer and Executive Director



KENNETH GOI KOK MINGChief Operating Officer and Executive Director

Date of first appointment as a director:23 July 2012


Length of service as a director (as at 31 December 2017):5 years 5 months

Academic & Professional Qualifications:• Bachelor in Computer Information System, California State

University, Pomona.

Present Directorships (as at 31 December 2017):Listed Companies:• GSH Corporation Limited• Hanwell Holdings Limited

Group Companies of GSH Corporation Limited:• Advanced Prestige Sdn Bhd• Altheim International Limited• Borneo Ventures Pte Ltd• City View Ventures Sdn Bhd• Eastworth Source Sdn Bhd• GSH (Middle East) Pte Ltd• GSH (Xi’an) Investments Pte Ltd• GSH (Xiamen) Property Development Pte Ltd• GSH (Zhengzhou) Investments Pte Ltd• GSH Investments Limited• GSH Properties (Malaysia) Pte Ltd• GSH Properties Pte Ltd• Investasia Sdn.Bhd.• Linyi Properties Sdn Bhd• Mainfield Holdings Limited• Mewabumi Sdn Bhd• MXIM Holdings Pte Ltd• Ocean View Point Pte Ltd• Ocean View Ventures Pte Ltd• Sutera Harbour Golf & Country Club Berhad• Sutera Harbour Resort Sdn Bhd• Sutera Harbour Travel Sdn Bhd• Sutera Yacht Services Sdn Bhd • The Little Shop Sdn Bhd• The Sutera Harbour Group Sdn Bhd• Xing Asia Impel Sdn Bhd

Non-listed Companies:• Acelink Logistics Pte Ltd• Junhe Investment Pte Ltd• Mandarin Food Manufacturing Pte Ltd• Super Elite Holdings• Tee Yih Jia Food Manufacturing Pte Ltd• TYJ Group Pte Ltd

Past Directorships over the last 3 years – 2015 to 2017:• Plaza Ventures Pte Ltd• Serial Itech Franchising Pte Ltd• Serial Itech (Far East) Pte Ltd

Major Appointments (other than Directorships):• Member of the Community Development District Council,

South East Region• Patron – Braddell Heights Community Club

Background and Working Experience: • Director in Tee Yih Jia Food Manufacturing Pte Ltd (1997 to present)• Director in Acelink Logistics Pte Ltd (1999 to present)• Non-Executive Director in Hanwell Holdings Limited (2014 to present)


FRANCIS LEE CHOON HUIVice Chairman and Lead Independent Director




Committee Memberships: • Remuneration Committee (Chairman)• Audit Committee • Nominating Committee

Academic & Professional Qualifications:• Barrister at Law, London (1970)• Advocate & Solicitor, Singapore (1970)

Present Directorships (as at 31 December 2017):Listed Companies:• GSH Corporation Limited • Sunright Ltd

Group Companies of GSH Corporation Limited:• Advanced Prestige Sdn Bhd• Altheim International Limited• Eastworth Source Sdn Bhd• Mainfield Holdings Limited• Sutera Harbour Golf & Country Club Berhad• Sutera Harbour Travel Sdn Bhd• Sutera Harbour Resort Sdn Bhd• The Little Shop Sdn Bhd• The Sutera Harbour Group Sdn Bhd

Non-listed Companies:• Corporate Ventures Pte Ltd • Corporate Ventures International Ltd • Philip Enterprise Fund Limited • Philip Ventures Enterprise Fund 5 Limited

Past Directorships over the last 3 years – 2015 to 2017:• Raffles Marina Ltd • Raffles Marina Holdings Ltd• PT. Toshiba Visual Media Network Indonesia • PT. Hijau Lestari Raya Fibre Board

Major Appointments (other than Directorships):• Chairman, International Year of the Reef 2008,

Singapore Blue Plan 2009

Background and Working Experience:• Practiced mainly as a Corporate Lawyer for some 22 years

(1970-1992).• Practiced as a Consultant for Mergers and Acquisitions for

some 25 years (1992-2017).

Awards:• Award for contribution to Indonesian marine tourism,

by Indonesian Ambassador to Singapore (2000).• Award for 21 Leaders for the new millennium, by US Boating

Industry Magazine (2000). • Award of Seakeeper of Singapore, by The International

Seakeepers Society, USA (2017).



MICHAEL GRENVILLE GRAYIndependent Director

JULIETTE LEE HWEE KHOONNon-Executive Director

Date of first appointment as a director: 17 October 2007

Date of last re-election as a director: 20 April 2017


Committee Memberships: • Audit and Risk Committee (Chairman)• Remuneration Committee

Academic & Professional Qualifications:• Bachelor of Science in Maritime Studies, University of Plymouth UK• Master of Arts in South East Asian Studies, National University

of Singapore• Fellow of Institute of Chartered Accountants in England & Wales• Fellow of Institute of Singapore Chartered Accountants• Fellow of Singapore Institute of Directors• Fellow of Chartered Institute of Transport & Logistics

Present Directorships (as at 31 December 2017):Listed Companies:• GSH Corporation Limited• Avi-Tech Electronics Limited• FSL Trust Management Pte Ltd

Non-listed Companies:• TGY Property Investments Pte Ltd• Tras Street Property Investment Ltd• UON Singapore Pte Ltd• Vietnam Hospitality Ltd

Past Directorships over the last 3 years – 2015 to 2017:• Ascendas Property Fund Trustee Pte Ltd• Asian Cruising Pte Ltd• Raffles Marina Holdings Ltd• The Masonic Hall Board Ltd• VinaCapital Vietnam Opportunity Fund Limited

Major Appointments (other than Directorships):• PAVE (President)

Background and Working Experience: • Merchant Navy Officer (1962 to 1973)• Coopers & Lybrand UK (1973 to 1978)• Coopers & Lybrand/ PricewaterhouseCoopers Singapore

(1978 to 2004). Partner from 1981 and Managing Partner Indochina (1994 to 2001)

Awards:• Public Service Star (Bar) – B.B.M. [L] (2010)




Committee Memberships: • Audit Committee• Remuneration Committee

Academic & Professional Qualifications:• Master in Business Administration BA (Strategic Management),

Maastricht School of Management


Group Companies of GSH Corporation Limited :• City View Ventures Sdn Bhd

Non-listed Companies:• Chinatown Food Corporation Pte Ltd• Durian Master Pte Ltd• Fujian Guanhui Food Enterprise Co Ltd• Fujian Mingwei Food Enterprise Co Ltd• Fujian Ryushobo Food Co Ltd• Guan Hui Food Enterprise Company Limited• Junhe Investment Pte Ltd• Maker Food Manufacturing Pte Ltd• Ryushobo (S) Pte Ltd• Super Elite Holdings Pte Ltd• T&T Gourmet Cuisine Pte Ltd• Taste United Pte Ltd• Tee Yih Jia Food Manufacturing Pte Ltd• Tee Yih Jia Food Manufacturing Sdn Bhd• Twin Investment Pte Ltd• TYJ International Pte Ltd• Ultra Harmony Development Sdn Bhd• Yangzhou Junhe Property Development Co Ltd

Past Directorships over the last 3 years – 2015 to 2017:• G City Limited• Honji Foods (2005) Pte Ltd• Plaza Ventures Pte Ltd • Ragri Pte Ltd• Tianjin Junhe Industrial Corporation Ltd• Tianjin Junhe Investment Co Ltd Background and Working Experience: • Executive Director, Tee Yih Jia Food Manufacturing Pte Ltd

(1992 to present)• General Manager of Rongcheng Brewery, Fuzhou, Fujian Province

(2000 to 2001)


HUANG LUIIndependent Director

SUN YUNon-Executive Director

Date of first appointment as a director:23 August 2012



Committee Memberships: • Nomination Committee (Chairman) • Audit Committee • Remuneration Committee

Academic & Professional Qualifications:• Bachelors of Law, University of Singapore• Master of law, University of Singapore


Past Directorships over the last 3 years – 2015 to 2017:• Dataquest Pte Ltd • Super Plates Pte Ltd

Major Appointments (other than Directorships):• Partner, Wee Swee Teow & Co. Advocates & Solicitors

Background and Working Experience: • Wee Swee Teow & Co. Advocates & Solicitors (1971 till present)

Date of first appointment as a director:28 August 2017

Length of service as a director (as at 31 December 2017):4 months

Shares in the Company:23,509,400

Academic & Professional Qualifications:• Bachelors of Finance, Essex Business School


Non-listed Companies:• The Analyst Capital• Eight Roads Capital• Pershing Square Management Limited• Triple Square Investment Limited

Background and Working Experience:• Investment Banking Analyst (2010-2012)• Vice President, Primavera Capital Group (2012-2014)• Head of Equity Investment, Sino Life Asset Management (2014-2016)• Strategic Partner, KBR Fund Management Limited (2016-Present)


O U R P R O P E R T YP O R T F O L I O

RESIDENTIAL

KUALA LUMPUR, MALAYSIA

Gross Floor Area:747,746 sq ft

Site Area:1.44 acres

KOTA KINABALU, MALAYSIA

Gross Floor Area:1,280,916 sq ft




E A T O N R E S I D E N C E S

C O R A L B A Y T H E P O I N T

Located along Embassy Row in the heart of KLCC and minutes to the uber-chic shopping belt of Bukit Bintang in the capital city’s triple-A precinct, Eaton Residences is a vision of true contemporary grandeur and functionality for purveyors of distinctive city living.

Presenting unblocked panoramic views of the Royal Selangor Golf Club and the famed Petronas Twin Towers, Eaton Residences cuts a distinctive silhouettet with its ultra-luxe glass face and iconic rooftop infinity pool – the first and highest cantilevered sky pool in Kuala Lumpur.

With 632 versatile and privacy-centric living spaces from levels 9 to 49, Eaton Residences redefines modern urban living. This is where the well heeled can enjoy the company of friends and loved ones with gastronomic experiences at the lush pavilion on level 8 or simply indulge in a good book at the organic-shaped Sky Terrace deck on level 34. Fitness buffs can work out at the rooftop gym overlooking the infinity pool at level 50.

The Group owns 100% of the Eaton Residences project.

Located next to The Magellan Sutera Resort, Coral Bay is an uber luxurious oceanfront residential project with premium finishes and full condominium facilities. Nestled within the gated precinct of Sutera Harbour, Coral Bay sits on the most coveted land parcels earmarked for residential developments in Kota Kinabalu.

The Group owns 67.5% of Coral Bay project.

Located at the tip of the Sutera Harbour gated precinct, The Point is an exclusive condominium offering 360-degree views of the ocean and Kota Kinabalu’s famed Jesselton Point Waterfront. Part of the luxurious collection of waterfront homes in the Sutera Harbour enclave, The Point is a rare fusion of urban chic and gorgeous ocean views.

The Group owns 75% of The Point project.

16 GSH CORPORATION LIMITED

HOSPITALITY



Site Area:384 acres

The Resort comprises two five-star hotels – the 500-room Pacific Sutera and the 456-room Magellan Sutera – as well as the Sutera Harbour Marina, Golf & Country Club with its 104-berth marina and an award-winning 27-hole championship golf course designed by Graham Marsh. It also has 15 restaurants and bars, two grand ballrooms, 28 meeting rooms and a 100-seat auditorium for meetings, incentive travel, conventions and exhibitions (MICE).

Sutera Harbour Resort is the only destination in Kota Kinabalu that offers a five-star business-class hotel and resort attached to a 27-hole Graham Marsh-designed championship golf course, a state-of-the-art marina and clubhouse.

As Borneo’s largest and most extensive convention and banquet facility, the resort is the most sought-after venue for MICE events and is a beautiful mix of luxury, recreation and lifestyle.

The Resort is just 10 minutes by boat from the popular scuba diving destination of Sabah’s Tengku Abdul Rahman Marine National Park. The five islands that make up the Marine Park boast crystal-clear waters, abundant marine life and stunning coral reefs.

Expanding into nature and adventure tourism in Sabah, the Resort also operates the North Borneo Railway – a mid-century British steam train that takes visitors on a nostalgic rediscovery of rail travel into the heart of Borneo.

S U T E R A H A R B O U R R E S O R T


HOSPITALITY

456 Rooms and Suites

All of its luxuriously-appointed rooms and suites feature balconies that offer magnificent vistas of its manicured gardens or the azure tranquility of the South China Sea.

T H E M A G E L L A N S U T E R A R E S O R T

The 456-room Magellan Sutera Resort’s unique architecture is inspired by the longhouses of Borneo – a tribute to the Rungus people of Sabah. All of its luxuriously appointed rooms and suites feature balconies that offer magnificent vistas of its manicured gardens or the azure tranquillity of the South China Sea.

Its food and beverage options include an award-winning Italian restaurant Ferdinands; Five Sails, an all-day dining restaurant serving a wide selection of Malaysian and continental cuisine; the Al Fresco restaurant, serving an extensive selection of pasta and wood-fired pizza; Muffinz, for deli favourites as well as Tarik’s Lobby Lounge for casual bites.

19ANNUAL REPORT 2017

HOSPITALITY


500 Deluxe Rooms and Suites

The Pacific Sutera Hotel has 500 deluxe rooms and suites offering panoramic views of the South China Sea or the greenery of the championship golf course.

T H E P A C I F I C S U T E R A H O T E L

With its grand entrance and high ceiling, The Lobby Lounge offers an uninterrupted ocean panorama and is a popular meeting point for leisure and business travellers. The Pacific Club affords magnificent views from the top floors, with breakfast and cocktails served at the exclusive Pacific Club Lounge.

Other dining options include the award-winning Chinese restaurant Silk Garden, all-day dining at Café Boleh, The Lobby Lounge and the Pool Bar.

The hotel’s Grand Ballroom can be sectioned off in different configurations to accommodate events for up to 1,000 people, and is the perfect venue for corporate functions and weddings.


27-hole Award-Winning Championship Gold Course

The Club’s 27-hole golf course is built on undulating terrain and divided into 43 distinct courses of varying difficulty.

S U T E R A H A R B O U R M A R I N A , G O L F & C O U N T R Y C L U B

At the heart of the extensive Sutera Harbour Resort property is the Sutera Harbour Marina, Golf & Country Club which features a 27-hole award-winning championship golf course designed by Graham Marsh, a 41-bay covered driving range, and a 104-berth marina that can accommodate 13 mega yachts and 91 smaller vessels.

The Club’s 27-hole golf course is built on undulating terrain and divided into 43 distinct courses of varying difficulty. At night, 20 holes are lit, including nine holes of the Lake Course, nine holes of the Garden Course and two finishing

holes of the Heritage Course. There is also a 41-bay two-tier covered driving range that overlooks a scenic lake. Use of the golf course is exclusively for the patrons of The Magellan Sutera and The Pacific Sutera as well as club members and their guests.

The Marina’s deep-water marina is well equipped, deep enough for most yachts of up to 180 feet and protected all year round from extreme weather conditions. Established in 1998, this Marina is a hub for yachting and sailing in Southeast Asia. Berthing services are available for short and long-term rental.

COMMERCIAL


SINGAPORE

Gross Floor Area:356,403 sq ft

G S H P L A Z A(PAST COMPLETED PROJECT – TOP IN FEBRUARY 2017)

GSH Plaza is a prestigious commercial and office tower located in Raffles Place the heart of Singapore’s Central Business District.

Strategically located on the nexus of Church, Market and Cecil Streets, and within minutes to Raffles Place MRT station, the 28-storey, Grade-A intelligent office tower, was once the home of the Singapore Exchange. The Group has completed the extensive refurbishment of the property, creating an iconic structure clad in glass, marble and steel. Each premium strata office unit is generously spaced and configured, with an exceptionally efficient work environment to meet the needs of today’s modern businesses.

Incorporating two floors of retail space, GSH Plaza is positioned to provide lifestyle conveniences for its occupants, enriching the district’s bustling food and beverage scene as well as encouraging lifestyle, recreation and relaxation activities. It is also the ideal location for work, live and play: Marina Bay Sands, Gardens by the Bay and the shopping precincts of Raffles City and Marina Square are close by, offering myriad

dining, entertainment, shopping and leisure options. For culture, one can explore the Chinatown heritage district close by while the National Gallery, Esplanade Theatres on the Bay and Mastercard Theatres at Marina Bay Sands are only a stone’s throw away.


INDUSTRIAL

One of the largest food logistics and warehousing hubs in China, Henan Zhongyuan Group - which became an associated company of GSH on 10 March 2017 - operates food logistics & warehousing hubs in Zhengzhou, Henan Province. The Hub occupies more than 200 mu of land, with a total lettable area of more than 350,000 square metres, comprising cold storage facilities, food warehousing and retail spaces for more than 1,000 tenants including food manufacturers, wholesalers and distributors.

H E N A N Z H O N G Y U A N G R O U PZHENGZHOU, CHINA

23ANNUAL REPORT 2017

C O R P O R A T EI N F O R M A T I O N

BOARD OF DIRECTORS (BOD)

Mr. Sam Goi Seng HuiExecutive Chairman

Mr. Gilbert Ee Guan HuiChief Executive Officer

Mr. Kenneth Goi Kok MingChief Operating Officer

Mr. Francis Lee Choon Hui Vice Chairman cum Lead Independent Director

Mr. Michael Grenville GrayIndependent Director

Ms. Juliette Lee Hwee Khoon Non-Executive Director

Ms. Huang LuiIndependent Director

Mr. Sun YuNon-Executive Director

AUDIT COMMITTEE

Mr. Michael Grenville Gray (Chairman)

Mr. Francis Lee Choon Hui

Ms. Huang Lui

Ms. Juliette Lee Hwee Khoon

REMUNERATION COMMITTEE

Mr. Francis Lee Choon Hui (Chairman)

Mr. Michael Grenville Gray

Ms. Huang Lui

Ms. Juliette Lee Hwee Khoon

NOMINATING COMMITTEE

Ms. Huang Lui (Chairman)

Mr. Francis Lee Choon Hui

Mr. Gilbert Ee Guan Hui

COMPANY SECRETARY

Mr. Lee Tiong Hock

SHARE REGISTRAR

Boardroom Corporate & Advisory Services Pte Ltd50 Raffles Place#32-01Singapore Land TowerSingapore 048623Tel : (65) 6536 5355 Fax : (65) 6536 1360

AUDITORS

KPMG LLP 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581Tel : (65) 6213 3388 Fax : (65) 6213 2230 Partner-In-Charge : Ms. Teo Han Jo (Appointed in financial year ended 31 December 2014)

REGISTERED OFFICE

20 Cecil Street, #28-01 GSH PlazaSingapore 049705Tel : (65) 6585 8888Fax : (65) 6881 1000www.gshcorporation.com

COMPANY REGISTRATION NUMBER

200106139K

BANKERS

CIMB Bank Berhad

Credit Suisse AG, Singapore Branch

CTBC Bank Co. Ltd, Singapore Branch

DBS Bank Ltd

Hong Leong Bank Berhad

Hong Leong Finance Limited

HSBC Bank Berhad

HSBC Bank (Singapore) Limited

Malayan Banking Berhad

Maybank Singapore

Oversea-Chinese Banking Corporation Limited

RHB Bank Berhad

RHB Bank Berhad Singapore



C O R P O R A T E G O V E R N A N C E R E P O R T A N D F I N A N C I A L S T A T E M E N T S

26 CorporateGovernance

48 Directors’Statement

52 IndependentAuditors’Report

58 StatementsofFinancialPosition

59 ConsolidatedStatementofComprehensiveIncome

60 ConsolidatedStatementofChangesinEquity

64 ConsolidatedStatementofCashFlows

66 NotestotheFinancialStatements

133 StatisticsofShareholdings

135 NoticeofAnnualGeneralMeeting

ProxyForm

26

C O R P O R A T EG O V E R N A N C E R E P O R T

GSH CORPORATION LIMITED

TheBoardandManagementofGSHCorporationLimited(“GSH”)believethatagenuinecommitmenttogoodcorporategovernanceisessentialforthelongtermsuccessoftheCompany’sbusinessandperformance.TheCompanyisfocusedonadheringtotheprinciplesandstandardsoftheSingaporeCodeofCorporateGovernance2012(the“Code”).

TheCorporateGovernanceReport(“CGReport”)setsoutthecorporategovernancepracticesofGSHforthefinancialyearended2017.WheretherearedeviationsfromtheprinciplesandguidelinesfromtheCode,anexplanationhasbeenprovidedwithintheCGReport.

(A) BOARDMATTERS

TheBoard’sConductofAffairs

Principle1:EveryCompanyshouldbeheadedbyaneffectiveBoardtoleadandcontrolthecompany.TheBoardiscollectivelyresponsiblefor the long-term success of the company. The Board works with Management to achieve this objective and ManagementremainsaccountabletotheBoard.

BoardComposition

The Board comprises eight directors, of which three are non-executive independent directors, two are non-executive non-independent directors and three are executive directors, with the Chairman being part of the Management team and non-independent.

Theeightdirectorsare:

Executive Directors SamGoiSengHui,ExecutiveChairmanGilbertEeGuanHui,ChiefExecutiveOfficerKennethGoiKokMing,ChiefOperatingOfficer

Non-Executive Independent DirectorsFrancisLeeChoonHui,ViceChairmanandLeadIndependentDirectorMichaelGrenvilleGrayHuangLui

Non-Executive Non-Independent DirectorJulietteLeeHweeKhoonSunYu(Appointedon28August2017)

TheBoardisawarethatundersection2.2oftheCode,iftheChairmanoftheBoardisnotanindependentDirector,atleasthalfoftheBoardshouldbeindependent.TheCompanyisrequiredtocomplywiththeCodenolaterthanbytheAnnualGeneralMeeting(“AGM”)followingtheendofitsfinancialyearcommencingonorafter1May2016.TheBoardofDirectorsintendstocomplywiththeCode.Uponre-electionofMrSunYu,thenominatingcommittee,havingreviewedhisindependencewillrecommendtotheBoardthathebere-designatedasanindependentDirector.ThiswillresultinhalftheBoardbeingindependent.



PrincipalDutiesoftheBoard

TheBoardisaccountabletotheshareholders,whiletheManagementisaccountabletotheBoard.

TheBoardhasestablisheda frameworkofprudentandeffectivecontrols,whichenablesrisks tobeassessedandmanaged,includingsafeguardingofshareholders’interestsandtheCompany’sassets.ItalsooverseestheCompany’saffairs;andprovidesshareholders with a balanced and understandable assessment of the Company’s performance, position and prospects, onaquarterlybasis.This responsibilityextends to interimandotherpricesensitivepublic reports,and reports to regulators (ifrequired).

TheBoardsetstheoverallbusinessdirection,providesguidanceontheCompany’sstrategicplans,withparticularattentiontogrowthandfinancialperformance,andoverseestheManagementoftheCompany.

TheBoard’sprimaryfunctionsinclude:

(i) Approvingpolicies,strategies,structureanddirectionoftheGroup;

(ii) Overseeing and monitoring managerial and organizational performance and the achievement of strategic goals andobjectives;

(iii) Ensuring that there are in place appropriate and adequate systems of internal controls, risk management, effectiveprocesses for financial reporting and compliance; approving the annual budget, major capital expenditures, fundingproposals;andinvestmentanddivestmentproposals;

(iv) Assumingresponsibilitiesforgoodcorporategovernancepractices;

(v) Approvingquarterlyannouncementsandannualannouncementsandfinancialstatements;

(vi) IdentifyingthekeystakeholdergroupsandrecognizingthattheirperceptionsaffecttheGroup’sreputation;

(vii) SettingtheCompany’svaluesandstandards(includingethicalstandards),andensuringthatobligationstoshareholdersandotherstakeholdersareunderstoodandmet;and

(viii) Consideringsustainabilityissues,e.g.environmentalandsocialfactors,aspartofitsstrategicformulation.

ReservedMatters

InternalguidelinesandauthoritylimitshavebeenlaiddownforManagementtoadministertheGroup’sday-to-dayoperations.TheseguidelinesandlimitsarereviewedbytheBoardfromtimetotime,andadjustedwhennecessary.Inaddition,theGrouphasinplaceguidelinesandcorporateauthorisationproceduresfortheapprovalofmajorcapitalandrevenueexpendituresandinvestments.TheBoard’sapprovalisrequiredbeyondauthorisedamounts,specifiedfortransactions,includingbutnotlimitedtopurchases,financingactivities,acquisitionsanddisposals.OthermattersthatrequireBoard’sapprovalincludeappointmentstotheBoard,businessplansandstrategies,theannualbudget,materialtransactions,publicannouncements,anddividendstoshareholders.

28



CommitteesoftheBoard

Todischarge itsdutieseffectivelyandefficiently,and toallow fordetailedconsiderationof issues, theBoardhasestablishedthree standingcommittees, namely the Audit and Risk Committee (“ARC”),NominatingCommittee (“NC”)and RemunerationCommittee(“RC”).Eachcommitteehasitsowndefinedscopeofdutiesandtermsofreference,settingoutthemannerinwhichitistooperateandthefunctionsforachievingitsstatedobjectives.Thecompositionsofthecommitteesareasfollows:

DirectorsAuditandRisk

CommitteeNominatingCommittee

RemunerationCommittee

GilbertEeGuanHui – Member –FrancisLeeChoonHui Member Member ChairmanMichaelGrenvilleGray Chairman – MemberJulietteLeeHweeKhoon Member – MemberHuangLui Member Chairman Member

EachofthesecommitteesoperatesunderdelegatedauthorityfromtheBoardwiththeBoardretainingoveralloversight.

MembershipofthecommitteesisdesignedtodistributetheresponsibilitiesoverthevariousBoardmembersandtoutiliseeachindividual’sdiversityandexperience.TheBoardreviewsfromtimetotime,thecommitteestructure,themembershipandtheirtermsofreference.

MeetingsoftheBoard

TheBoardmeetsatleastonceeveryquarterandoften,aswarrantedbyparticularcircumstances.AscheduleforBoardMeetingsandCommitteemeetings,afterconsultationwiththeBoard, iscirculatedayear inadvanceandkeptupdated.TheCompany’sConstitutionalsoprovidesfortelephoneconferenceandvideoconferencingmeetings,whicharerelieduponwhenrequired.

Inthecourseoftheyearunderreview,thenumberofformalmeetingsheldandattendedbyeachmemberoftheBoardisasfollows:

DIRECTORS’ATTENDANCEATBOARDANDBOARDCOMMITTEEMEETINGS

FinancialYearEnded31December2017

BoardMeetingAuditandRisk

CommitteeMeetingNominating

CommitteeMeetingRemuneration

CommitteeMeeting

NameofDirectorNumber

Held AttendanceNumber



Held Attendance

SamGoiSengHui 4 4 NA NA NA NA NA NAFrancisLeeChoonHui 4 4 4 4 2 2 1 1GilbertEeGuanHui 4 4 NA NA 2 2 NA NAJulietteLeeHweeKhoon 4 4 4 4 NA NA 1 1MichaelGrenvilleGray 4 4 4 4 NA NA 1 1HuangLui 4 4 4 4 2 2 1 1KennethGoiKokMing 4 4 NA NA NA NA NA NASunYu(i) 4 1 NA NA NA NA NA NA

(i) MrSunYuwasappointedon28August2017 NA:NotApplicable



Inadditiontoitsformalmeetings,theRCheldmanyinformalworkingsessions,forconsultationsandpreparationsofitswork.

AlltheDirectors(exceptMrSunYuwhowasappointedon28August2017)attendedtheAnnualGeneralMeetingheldon20April2017.

BoardOrientationandTraining

NewlyappointedDirectors,ifany,receiveformalletterssettingouttheirdutiesandobligationsandalsocomprehensiveinductionbriefingsandorientations,bytheExecutiveDirectorsandManagement,onthebusinessactivities,governancepracticesoftheGroupanditsstrategicdecisions.MrSunYuwasappointedasadirectoroftheCompanyduringthefinancialyear.

TheDirectorsparticipateinoccasionalseminarsandarefurnishedwithrelevantinformationandupdatesonchangesinlawsandregulationsrelevanttotheGroup’sbusinessesandoperatingenvironment,onaregularbasis.TheCompanywillfundtherelevanttraining.TheDirectorshaveattendedseminarsandcoursesconductedbytheSingaporeInstituteofDirectors(“SID”).Inaddition,theCompany’sexternalauditorshaveprovidedtrainingorbriefingsessionsonthemorerecentchangestoaccountingstandardsandalsoonanti-moneylaunderingandcounterfinancingofterrorism.

SustainabilityReporting

The Board also regards sustainable development as a core value of the Group and is committed to developing and adoptingsustainablepracticesacrossitsbusinesses.

The Group has established a strategic alliance between its Sutera Harbour Resorts and the University Malaysia Sabah, tocollaborateonnon-profitenvironmentalprojects.On14March2018,itofficiallylaunchedtheSustainingKotaKinabalu’sMarineHeritagemarineconservationproject,designatedundertheInternationalYearoftheReef2018.

The Group’s 1st Sustainability Report for 2017/2018 is currently being developed in accordance with the SGX SustainabilityReportingGuidelinesandwillbeissuedinduecourse.

BoardDebates

TheBoardandManagementengageinopenandconstructivedebate,forthefurtheranceofandtoachievestrategicobjectives.All Board members are provided with relevant and sufficient information on a timely basis and Non-Executive Directors maychallengeManagement’sassumptionsandalsoextendguidancetoManagement,inthebestinterestsoftheGroup.

ConflictsofInterest

TheCompanyrequiresDirectorstodiscloseandabstainfromparticipationinboarddiscussionsorthedecision-makingprocesses,onanyparticularagendaitem,whentheyhaveaconflictofinterest.

30



BoardCompositionandGuidance

Principle2:ThereshouldbeastrongandindependentelementontheBoard,whichisabletoexerciseobjectivejudgementoncorporateaffairs independently, in particular, from Management and 10% shareholders. No individual or small group of individualsshouldbeallowedtodominatetheBoard’sdecisionmaking.

BoardCompositionandSize

With the assistance of the NC, the Board actively reviews its size and composition with a view of determining the impact ofthenumberonitseffectivedecisionmaking,takingintoaccountthescopeandnatureoftheGroup’soperations.TheNCalsoreviewsthecompositionof theBoardandtheCommitteestoensurethatasagrouptheyprovideanappropriatebalanceanddiversityofskills,experience,genderandknowledgeoftheCompanyandcorecompetencies,annually.Thecorecompetenciesincludeaccountingorfinance,businessormanagementexperience,industryknowledge,strategicplanning,businessexperience,regulatoryrequirementsandriskmanagement.

TheNCtakesintoaccountgenderdiversityinrelationtotheBoard.Outofeightdirectorstwoarefemale.

IndependenceofDirectors

The NC has adopted, in its terms of reference, the criteria for determining the independence of a Director as set out in theCode,andwillassessandreviewtheindependenceofeachDirector,atleastonceayear.EachIndependentDirectorisrequiredtocompleteaDirector’sIndependenceConfirmationFormannually,toconfirmhis/herindependence.TheNChasascertainedthatfortheperiodunderreview,allNon-ExecutiveIndependentDirectorsareindependentandthattheDirectorshavedevotedsufficienttimeandattentiontotheGroup’saffairs.

The NC considers an “Independent Director” as one who has no relationship with the Company, its related corporations, its10%shareholdersoritsofficersthatcouldinterfere,orbereasonablyperceivedtointerfere,withtheexerciseoftheDirector’sindependenceandbusinessjudgment,withaviewtothebestinterestsoftheCompany.

In the course of the year, the NC assessed the independence of Board members in light of Guideline 2.4 of the Code, whichrequiresthattheindependenceofanyDirector,whohasservedontheBoardbeyondnineyears,fromthedateoffirstappointment,besubjecttoparticularlyrigorousreview.FrancisLeeChoonHuiandMichaelGrenvilleGray,haveservedontheBoardforperiodsexceedingnineyears.

TheNCrecognisesthatanindividual’sindependencecannotbedeterminedarbitrarilyonthebasisofasetperiodoftime.Afterparticularscrutiny,FrancisLeeChoonHuiandMichaelGrenvilleGrayhavebeendeterminedasbeingindependent.Theycontinueto express their viewpoints, debate issues and objectively scrutinize and challenge Management. They also seek clarificationandamplificationof relevantmatters,asdeemedrequired indischarging theirdutiesas IndependentDirectors.Aftercarefulconsiderationoftherelevantfactorsandtoavoidanabruptlossofamemberwithexperienceandinstitutionalmemory,theBoardhasdeterminedthatthetenureofFrancisLeeChoonHuiandMichaelGrenvilleGray,havenotaffectedtheirindependenceorabilitytobringjudgmenttobear,intheirdischargeoftheirdutiesasaBoardandCommitteemember.InthedeterminationoftheindependenceofFrancisLeeChoonHuibytheNC,herecusedhimself.

BoardGuidance

AneffectiveBoardisone,whosemembersengageinopendebateandconstructivelychallenge;helpdevelopproposalsonstrategy;reviewtheperformanceofmanagementinachievingagreedgoalsandobjectives;andmonitorthereportingofperformance.

To achieve so, the non-executive directors (NEDs) must receive timely and accurate information. Besides the regular Boardmeetings,informalmeetingsareheldforManagementtobriefdirectorsonprospectivedealsandpotentialdevelopments,intheearlystages,beforeseekingtheBoard’sapproval.



ChairmanandChiefExecutiveOfficer

Principle3:ThereshouldbeacleardivisionofresponsibilitiesbetweentheleadershipoftheBoardandtheexecutivesresponsibleformanagingthecompany’sbusiness.Nooneindividualshouldrepresentaconsiderableconcentrationofpower.

RoleofChairmanandChiefExecutiveOfficer

TheCodeoutlinesthattherolesofChairmanandChiefExecutiveOfficer(“CEO”)shouldinprinciplebeseparatepersons,toensureanappropriatebalanceofpower,increasedaccountabilityandgreatercapacityoftheBoardforindependentdecisionmaking.

ThepositionsofChairmanandCEOareheldbyseparate individuals,withSamGoiSengHuias theExecutiveChairman,andGilbertEeGuanHuiastheCEO.TheCEOoftheCompanyisnotrelatedtotheChairmanoftheBoard.TheCEOisthemostseniorexecutiveintheCompanyandhisresponsibilities,interalia,include:

• DeterminingandformulatingoperationalpoliciesandprovidingoveralldirectionoftheCompany,withinpolicieslaiddownbytheBoard;TranslatingthestrategicdirectionsstipulatedbytheBoard,intotacticalplansforoperationalisation;and

• Overseeing operational activities led by the head of functions/divisions, to ensure it aligns with overall organizationalobjectives.

TheresponsibilitiesoftheChairmanincludethoseassetoutinGuideline3.2oftheCodetogetherwiththefollowing:

• ProvidingleadershipandstrategicdirectiontoGSH,soastobuildandsustainaleading,reputableandhighperformingorganisationintheindustry;

• FormulatingGSH’svisionandmission,toshapetheexistence,identityanddirectionofGSH,withtheobjectiveofbuildingastrongerorganization;

• BuildingrelationshipswithkeyGSHstakeholders,togarnersupportforitsstrategicplansandestablishstrongpartnerships;Providingopportunitiestogrowseniorleadershipcapabilities,toensureastrongsuccessionpipeline;and

• Reviewing the strategic initiatives of the organization, to ensure it meets GSH’s strategic goals and improves theorganisationalprofitabilitymarketvalueandreturnsoncapital.

TheChairmanisassistedinthesefunctionsbytheViceChairmanoftheBoard.

LeadIndependentDirector

TheIndependentDirectorsholdinformalmeetingsonaneedtobasiswithoutthepresenceofManagementandotherdirectors,ledbytheLeadIndependentDirector,andtheLeadIndependentDirectorprovidesfeedbacktotheChairmanandCEO,asappropriate.During theyearseveralof thesemeetingshavebeenheld.The IndependentDirectorsconstituteanadhoccommitteeof theBoard,whichiscalledintosession,asandwhennecessary.

TheBoardhadon27February2015appointedFrancisLeeChoonHuiasLeadIndependentDirectortocomplywithGuideline3.3oftheCode.ShareholdersoftheCompanyareabletocontacttheLeadIndependentDirectoriftheyhaveconcernsandforwhichcontactthroughthenormalchannelsoftheExecutiveManagementhasfailedtoresolveorisinappropriate.

32



BoardMembership

Principle4:Thereshouldbeaformalandtransparentprocessfortheappointmentandre-appointmentofdirectorstotheBoard.

NominatingCommittee

TheNominatingCommittee(“NC”)comprisesHuangLui,FrancisLeeChoonHuiandGilbertEeGuanHui.HuangLuiandFrancisLeeChoonHuiareNon-ExecutiveIndependentDirectors,whilstGilbertEeGuanHuiistheCEOandanExecutiveDirector.TheChairmanoftheNCisHuangLui.

TheNC’sprincipalfunctionsareto:

(a) MakerecommendationstotheBoard,onallBoardappointments;

(b) Be responsible for the re-nomination of Directors, having regard to the Director’s contribution and performance (e.g.attendance,preparedness,participationandcandor)including,ifapplicable,asanIndependentDirector;

(c) Determine,atleastannually,whetherornotaDirectorisindependent;

(d) DecidewhetherornotaDirectorisableto,andhasbeenadequatelycarryingouthisdutiesasaDirectoroftheCompany;

(e) AssesstheeffectivenessoftheBoardasawhole,thecontributionbyeachindividualDirectortotheeffectivenessoftheBoard,andtodecidehowtheBoard’sperformancemaybeevaluated.TheNCtakesintoconsiderationthefrequencyoftheBoardmeetings, therateatwhich issuesraisedareadequatelydealtwithandthereports fromthevariousBoardCommittees;

(f) Reviewtheboardsuccessionplansfordirectors,inparticular,theChairmanandCEO;and

(g) ReviewthetrainingandprofessionaldevelopmentprogramsfortheBoard.

TrainingneedsforDirectors

TheNChasreviewedthetrainingneedsfortheDirectorsandencouragedtheDirectorstoattendrelevanttrainingcoursesthatcouldenhancetheirknowledgetoperformtheirdutiesasDirectorsoftheCompany.

MultipleBoardRepresentations

TheNCconsidersthatthemultipleBoardrepresentationsheldpresentlybytheDirectorsdonotimpedetheirperformanceincarryingouttheirdutiestotheCompany,takingintoaccounttheresultsoftheassessmentoftheeffectivenessoftheindividualDirectorandhis/heractualconductontheBoard.TheNChasascertainedthatfortheperiodunderreview,theDirectorswereabletocarryoutandhadbeenadequatelycarryingouttheirduties,asDirectorsoftheCompany.

HavingconsideredtherecommendationoftheCode,theBoard,attherecommendationoftheNC,limitsthemaximumnumberofoutsidedirectorshipsoflistedcompaniestosix.



Selection,AppointmentandRe-appointmentofDirectors

AllnewappointmentstotheBoardaresubjecttotherecommendationsoftheNCbasedonthefollowingcriteria:-

(a) Integrity;

(b) Diversity–possesscompetenciesthatmeettheCompany’spresentneeds;

(c) Abilitytocommittimeandefforttocarryoutdutiesandresponsibilitieseffectively;

(d) Independentmind;

(e) Experience;and

(f) Financiallyliterate.

ForthenominationprocessinsearchfortherightcandidatesforappointmentofnewDirectors,theNCmaygothroughprofessionalsearchfirms,personalcontactsandrecommendations.

TheBoardissatisfiedthatallDirectorshavedischargedtheirdutiesadequatelyforFY2017andexpectsthattheDirectorswillcontinuetodischargetheirdutiesadequatelyinFY2018.

PursuanttoArticle91oftheCompany’sConstitution,everyDirectorshallretirefromofficeonceeverythreeyears,ateachAGM,andforthispurpose,SamGoiSengHui,FrancisLeeChoonHuiandJulietteLeeHweeKhoon,shallretirefromofficebyrotation,attheupcomingAGM.

PursuanttoArticle97oftheCompany’sConstitution,everynewlyappointedDirectorshallholdofficeonlyuntilthenextAGMandretirefromoffice,andforthispurpose,SunYushallalsoretirefromofficeattheupcomingAGM.

TheNChavingsatisfied itself that theabove individualDirectorsarecompetenttocontinue, theNChasrecommendedtotheBoard,there-appointmentoftheindividualDirectorsconcerned,attheforthcomingAGM.

KeyinformationontheDirectors

Theprofileofthedirectorsandkeyinformation,includingthedatesoftheirfirstappointmentsandlastre-electionofeachDirector,togetherwiththeircurrentandpastprecedingthreeyears’directorshipinotherlistedcompanies,areincludedunderthe“BoardofDirectors”SectioninthisAnnualReport.KeyinformationonDirectorsisalsoavailableontheCompany’swebsite.

AlternateDirectors

NoAlternateDirectorshavebeenappointed.

34



BoardPerformance

Principle5:ThereshouldbeaformalannualassessmentoftheeffectivenessoftheBoardasawholeanditsboardcommitteesandthecontributionbyeachdirectortotheeffectivenessoftheBoard.

ReviewofBoardandBoardCommitteePerformance

The NC has conducted performance evaluations for the Board, Board Committees and all individual Directors, based on theperformancecriteriathatweredeterminedbytheNC,inrespectofFY2017.Theperformancecriteriadoesnotchangeyearly,and was reviewed and determined by the NC to be comparable to its industry peers and approved by the Board, to enhancelong-termshareholdervalue.Thisprocess,which isconductedannually, involves thecompletionofaquestionnairebyBoardmembersseekingtheirviewsonvariousaspectsofBoardperformance,suchasBoardsizeandcomposition,Boardinformationandaccountability,Boardprocesses,effectivenessofriskmanagementandinternalcontrolssystem.Asregardstheindividualdirectorevaluation,eachdirectorcarriesoutanindividualassessmentontheotherdirectors.Thisassessmentincludesdetailedquestionsintheareasofinteractiveskills,knowledgeanddirector’sduties.Asummaryofthefindingsispreparedbasedonthecompletedquestionnaireand isreviewedanddeliberatedbytheNCandtheBoard.TheChairmanof theNCconferswiththeChairmanoftheBoardonthefindingsandappropriatefollow-upactionsaretakenasnecessary.

AccesstoInformation

Principle6:In order to fulfil their responsibilities, directors should be provided with complete, adequate and timely information priortoboardmeetingsandonanon-goingbasissoastoenablethemtomakeinformeddecisionstodischargetheirdutiesandresponsibilities

Management has an obligation to supply the Board with complete, adequate information, in a timely manner. The CompanymakesavailabletoallDirectors,itsquarterlyandfull-yearmanagementaccountsandwhererequired,otherfinancialstatementsand other relevant information, as necessary, so that the Directors can make informed decisions. Board papers and relatedmaterials,background,orexplanatoryinformationrelatingtomatterstobebroughtbeforetheBoard,aresentouttotheDirectorsapproximatelyoneweekbeforethemeetings,tofacilitatediscussionsduringthemeetings.Ifanydirectorisunabletoattendanyscheduledmeetings,theyarealsowelcometodialin,orprovideanycommentstotheChairmanoftheBoardortheCEO.

TheDirectorshaveseparateandindependentaccesstotheManagement,includingtheCompanySecretaryoftheGroup,atalltimes.

CompanySecretary

BoththeCorporateSecretarialservicesandtheCompanySecretary;areoutsourcedtoBoardroomCorporate&AdvisoryServicesPte Ltd. The Board has separate and independent access to the Company Secretary. The Company Secretary is responsiblefor,amongotherthings,ensuringthatBoardproceduresareobservedandthattheCompany’sconstitution,relevantrulesandregulationsarecompliedwith.TheCompanySecretaryattendsandpreparesminutesforallBoardandBoardCommitteemeetings.

TheappointmentandremovaloftheCompanySecretaryisamatterfortheBoardasawhole.

IndependentProfessionalAdvice

TheDirectors,eitherindividuallyorasagroup, inthefurtheranceoftheirduties,cantakeindependentprofessionaladvice, ifnecessary,atCompany’sexpense.



(B) REMUNERATIONMATTERS

ProceduresforDevelopingRemunerationPolicies

Principle7:There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing theremunerationpackagesofindividualdirectors.Nodirectorshouldbeinvolvedindecidinghisownremuneration.

RemunerationCommittee

TheRCcomprisesFrancisLeeChoonHui,JulietteLeeHweeKhoon,MichaelGrenvilleGrayandHuangLui.AsidefromJulietteLeeHweeKhoon,whoisaNon-ExecutiveNon-IndependentDirector,alltheothersareNon-ExecutiveIndependentDirectors.TheChairmanoftheRCisFrancisLeeChoonHui.

TheprimaryfunctionsoftheRCaretoreviewandrecommendtheremunerationtermsofindividualDirectorsandkeymanagers.

TheprincipalfunctionsoftheRCare:

(i) TorecommendtotheBoardaframeworkofremuneration,whichcoversallaspectsofremunerationincludingExecutiveDirectorsandIndependentDirectors’fees,salaries,allowances,bonuses,optionsandbenefitsinkind,andkeymanagersoftheCompany;

(ii) TodeterminespecificremunerationtermsfortheExecutiveChairman,theCEO,andtheCOOandotherkeymanagers;

(iii) Toconsiderandapprovesalaryandbonusrecommendationsinrespectofkeymanagers;and

(iv) ToconsiderandrecommendtotheBoardallaspectsofremunerationforNon-ExecutiveDirectors,includingbutnotlimitedtoDirectors’fees;

IndependentAdvisor

ToassisttheRCin itsworkandbenchmarkingexercises,theRC,duringthefinancialyearhascommissionedtheKornFerryHayGroup,asindependentadvisor,toreviewandbenchmarktheGroup’sremunerationschemesandpractices,andtoadviceonanychangesthereto.ThereisnoexistingrelationshipbetweentheCompanyandKornFerryHayGroupthatwillaffecttheirindependenceandobjectivity.Thelastsuchreviewwasconductedinorabout2014.

ReviewofSignificantContractsofService

TheRChasreviewedtheCompany’sobligationsarising,intheeventofterminationoftheexecutivedirectors’andkeymanagementpersonnel’scontractsofservice,toensurethattheircontractsofservicecontainfairandreasonableterminationclausesthatareneitheroverlygenerousnoronerous.

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LevelandMixofRemuneration

Principle8:Thelevelandstructureofremunerationshouldbealignedwiththelong-terminterestandriskpoliciesofthecompany,andshouldbeappropriatetoattract,retainandmotivate(a)thedirectorstoprovidegoodstewardshipofthecompany,and(b)keymanagementpersonneltosuccessfullymanagethecompany.However,companiesshouldavoidpayingmorethanisnecessaryforthispurpose.

ThesalaryandotherremunerationtermsoftheExecutiveDirectorsandkeymanagersarebench-markedagainsttheremunerationofitsindustrypeersandcomparablecompanies.TheremunerationpolicyoftheGroupistoprovidecompensationpackagesatcompetitivemarketrates,whichrewardsuccessfulperformanceandattract,retainandmotivateDirectorsandemployees.

TheremunerationpackagesofeachoftheExecutiveDirectorsandkeymanagementcompriseafixedandavariablecomponents.ThevariablecomponentformsasignificantproportionoftheremunerationpackageandisdependentontheperformanceandprofitabilityoftheCompanyandindividualperformance.Thisensuresaclosealignmentoftheinterestsoftheexecutiveswiththoseoftheshareholders.Insettingremunerationpackages,theRCensurestheDirectorsandkeymanagementareadequatelybutnotexcessivelyremunerated,ascomparedtotheindustryandincomparablecompanies.

Therearenoprovisions intheExecutiveDirectorsandkeymanagementcontracts, toallowtheCompanytoreclaimincentivecomponents of remuneration in exceptional circumstances of misstatement of financial results, or misconduct resulting infinanciallosstotheCompany.

The Non-Executive Independent Directors and Non-Executive Non-Independent Directors, receive directors’ fees. Directors’fees are set in accordance with a framework comprising basic fees and additional fees, taking into account factors such asresponsibilities,effortand timespent forservingon theBoardandBoardcommittees.These feesaresubject toapprovalbyshareholdersasalumpsumateachAGM.

DisclosureonRemuneration

Principle9:Everycompanyshouldprovidecleardisclosureofitsremunerationpolicies,levelandmixofremuneration,andtheprocedureforsettingremuneration,inthecompany’sAnnualReport.Itshouldprovidedisclosureinrelationtoitsremunerationpoliciesto enable investors to understand the link between remuneration paid to directors and key management personnel, andperformance.

TheRCoverseesinrespectoftheDirectorsandSeniorExecutives,theremunerationpolicies,thelevelandmixofremuneration,andtheremunerationsettingprocedures.

RemunerationPolicies

TheCompany’sremunerationpolicyisdesignedtoattractandretainoutstandingindividuals,whoarealignedtothelong-terminterests of the Group. The role to be performed and market factors are taken into account when determining remunerationpackages.Performancerelatedpay,isobtainedbylinkingtotalcompensationtotheachievementoftheperformanceoftheGroupandoftheindividual.Toensurethatitsremunerationpackagesarecompetitive,theCompanyregularlyreviewsitsbasesalaryrangesandbenefitspackage,usingmarketdataprovidedbytheKornFerryHayGroup.



LevelandMixofRemuneration

TheExecutiveDirectorsdonotreceiveanydirectors’fees.Bonusesaredeterminedasfollows:

• Executive Chairman and CEO as a percentage of the Group’s Total Comprehensive Income, from the annual auditedaccounts.

• OtherExecutiveDirectorsandSeniorStaff,ataratedeterminedbasedontheirownpersonalperformanceandthatoftheGroup

TheNon-ExecutiveDirectorsreceivedirectors’ feesasrecommendedby theRCanddeterminedby theBoard,andsubject toshareholders’approvalattheAGM.

ProceduresforSettingRemuneration

Onanannualbasis,ManagementprovidestotheRCrecommendationsforremunerationchangesforExecutiveDirectorsandSeniorManagement,whichincludesincrementsandbonuses.Basedonmakingaconsideredassessment,theRCwillthensubmititsrecommendationstotheBoard.KornFerryHayGroupmaybeconsultedfromtimetotime,fortheirinputonbenchmarking,industrypracticeandthemarketsituation.

NoDirectorsparticipateindecisionsontheirownremuneration.

ServiceAgreements

TheCompanyhasenteredintoServiceAgreementswithSamGoiSengHui,ExecutiveChairmanandGilbertEeGuanHui,CEO,forafixedperiodofthreeyears,witheffectfrom1January2014,andthereafterrenewableforafixedperiodofoneyear;andKennethGoiKokMing,ExecutiveDirector,ChiefOperatingOfficerforafixedperiodofthreeyears,witheffectfrom1September2013,andthereafterrenewableforafixedperiodofoneyear.

TheNon-ExecutiveIndependentDirectorsandNon-ExecutiveNon-IndependentDirectorhavenoserviceagreementcontracts.Theyareappointedpursuantto,andholdofficeunderandinaccordancewith,theCompany’sConstitution.

DisclosureofIndividualDirector’sRemunerationandTopFiveKeyManagers

TheremunerationoftheDirectorshasbeenpresentedtakingintoconsiderationthehighlycompetitiveindustryconditionsandthesensitivityandconfidentialityoftheremunerationmatters.AbreakdownshowingthepercentagemixofeachindividualDirector’sremunerationpayableforfinancialyearended31December2017isasfollows:

NameofDirectorBaseSalaryand

Allowances% Bonus%Directors’

Fee% Total%

BetweenS$3,000,000toS$3,250,000SamGoiSengHui(Executive Chairman) 14.4% 85.6% 0.0% 100.0%

BetweenS$2,250,000toS$2,500,000GilbertEeGuanHui(Chief Executive Officer) 15.9% 84.1% 0.0% 100.0%

BetweenS$500,000toS$750,000KennethGoiKokMing(Chief Operating Officer) 54.0% 46.0% 0.0% 100.0%

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NameofDirectorBaseSalaryand

Allowances% Bonus%Directors’

Fee% Total%LessthanS$250,000FrancisLeeChoonHui

(Non-Executive Vice Chairman / Lead Independent Director) 17.9% 0.0% 82.1% 100.0%JulietteLeeHweeKhoon

(Non-Executive Non-Independent Director) 0.0% 0.0% 100.0% 100.0%MichaelGrenvilleGray

(Non-ExecutiveIndependentDirector) 0.0% 0.0% 100.0% 100.0%HuangLui(Non-ExecutiveIndependentDirector) 0.0% 0.0% 100.0% 100.0%SunYu(Non-ExecutiveNon-IndependentDirector)* 0.0% 0.0% 100.0% 100.0%

* MrSunYuwasappointedasanon-executivenonindependentdirectorwitheffectfrom28August2017.Feesarepro-ratedaccordingly

Guideline9.3oftheCoderequirestheCompanytonameanddisclosetheremunerationofatleastthetopfivekeymanagementpersonnel(whoarenotdirectorsortheCEO)inbandsofS$250,000.TheBoardisoftheviewthatitisnotintheinterestsoftheCompanytodisclosethenamesandinaggregatethetotalremunerationofthetopfivekeymanagers(whoarenotDirectors)oftheCompanyinthisreportduetothesensitiveandconfidentialnatureofsuchinformationanddisadvantagesthatthismightbring.Ontheremunerationofthetopfivekeymanagementpersonnel,threeareinthelessthanS$250,000bandandoneisinbetweenS$250,000toS$500,000bandandthelastoneisinthebetweenS$500,000toS$750,000band.

Thereisnoterminationandpost-employmentbenefitsgrantedtoDirectors,theExecutiveChairman,CEO,COOandthetopfivekeymanagers.

Except forSamGoiSengHuiandKennethGoiKokMing, therearenoemployeeswhoare immediate familymembersof thedirectorsandwhoseremunerationexceededS$50,000duringthefinancialyearended2017.

ShareOptionScheme/Short-termandLong-termIncentiveSchemes

TheCompanydoesnothaveanemployeeshareoptionschemeoranyshort-termandlong-termincentiveschemes.

(C) ACCOUNTABILITYANDAUDIT

Accountability

Principle10:TheBoardshouldpresentabalancedandunderstandableassessmentoftheCompany’sperformance,positionandprospects.

TheBoardaccountstotheshareholdersthroughprovidingtimelyinformationrelatingtothefinancialsandoperationsoftheGroup,aswellasanyissuesfacedbytheGroupregularlyandasandwhenrequiredthroughannouncementreleasestotheSGX-ST.

Inpresentingthefinancials,theBoardaimstoprovideshareholderswithabalanced,clearandunderstandableassessmentoftheCompanyandtheGroup’sperformance,positionandprospects.Inordertoachievethis,theManagementprovidestheBoardwithmanagementaccountsandsuchexplanationandinformationonaregularbasisandastheBoardmayrequirefromtimetotime,toenabletheBoardtomakeabalancedandinformedassessmentoftheCompany’sperformance,positionandprospects.



TheBoardalsoreviewsthelegalandregulatorycompliancereportsfromManagementtoensurecompliancewiththerelevantlegislativeandregulatoryrequirements.TheManagementprovidestheBoardwithmanagementaccountsandsuchexplanationandinformationonaregularbasisandastheBoardmayrequirefromtimetotime,enablingtheBoardtomakeabalancedandinformedassessmentoftheCompany’sperformance,positionandprospects,aswellassafeguardingtheinterestofstakeholders.

RiskManagementandInternalControls

Principle11:TheBoardisresponsibleforthegovernanceofrisk.TheBoardshouldensurethatManagementmaintainsasoundsystemofriskmanagementandinternalcontrolstosafeguardshareholders’interestsandtheCompany’sassets,andshoulddeterminethenatureandextentofthesignificantriskswhichtheBoardiswillingtotakeinachievingitsstrategicobjectives.

TheBoardisresponsibleforriskgovernanceoftheGroup,whichincludesestablishingriskmanagementpoliciesandtolerancestrategies thatset theappropriate toneanddirection,andoverseeing the implementationof riskmanagement framework toensurethatrisksareidentifiedandmanaged.Onanongoingbasis,theBoardmonitorsandassessestheadequacyoftheriskmanagementsystemsthathasbeenputinplaceaswellasthesystemofinternalcontrolstoascertainthatManagementtakestheappropriatestepstomanageandmitigateriskswiththeassistancefromtheAuditandRiskCommittee(“ARC”).TheARCreflectsitsroleinassistingtheBoardtofulfillitsresponsibilitiestosafeguardtheCompany’sassetsthroughprovidingoversightofthecompany’sfinancialreportingprocess,riskmanagementandinternalcontrolsystemaswellasauditfunction.

AttheManagementlevel,theBoardhasestablishedaManagementRiskCommitteechairedbytheGroupFinancialController(“GFC”),whohastakenontheroleofChiefRiskOfficer.ThiscommitteeoverseesandensuresthatrisksarebeingmanagedbyappropriateunitsholisticallyacrosstheGroup.

RiskToleranceandRiskPolicies

TheBoardevaluates the levelof risk toleranceand the riskappetiteof theGroupanddetermineswhetheracceptable levelsofriskarebeingtakeninthepursuitofthestrategicbusinessobjectives.Managementalsomaintainsasoundsystemofriskmanagementandinternalcontrols,tosafeguardshareholders’interestsandthecompany’sassets,andrecommendsthenatureandextentofthesignificantrisksfortheendorsementoftheBoardinthepursuitoftheGroup’sstrategicbusinessobjectives,withtheoversightfromtheARConbehalfoftheBoard.

EnterpriseRiskManagementandGroupRiskGovernanceManual

Duringthefinancialyear,ManagementhasengagedanindependentprofessionalfirmtoconductariskassessmentexerciseinensuringtheeffectivenessandadequacyoftheGroup’sriskmanagementprocesses.Thefirmalsofacilitatedtherefreshingoftheriskmanagementprogram,whichincludedanenterprisewideriskassessment.Inthisriskassessment,thefirmfacilitatedtheidentificationofthekeyrisksfortheGroupthatcouldimpedetheachievementoftheGroup’sbusinessobjectivesaswellasprovidingrecommendations toenhance the internalcontrolsof theGroup toaddress therisk.Theriskassessmentexercisehighlightedpertinentrisksinstrategic,operational(includinginformationtechnologyareas),financialandregulatorycompliance,aswellasthetreatmentmethodsforsuchrisks.TheGroupRiskGovernanceandInternalControlFrameworkManualtogetherwiththeriskassessmentprocessprovidethearchitectureformanagingrisks.Therisksarerequiredtobemanagedbytheidentifiedriskownersandcoordinatedbythein-houseriskmanagementfunction,onacontinuingbasis.ThefoundationoftheGroupriskmanagementframeworkandriskassessmentprocessarealignedwithISO:31000,aleadinginternationalstandardonriskmanagement.

Managementareresponsibleforensuringthattherisksidentifiedarerelevanttothebusinessenvironmentandthatcontrolsareeitherinplace,orrequiredtobedeveloped,inordertomitigatetheseriskstotheappropriatetargetrisklevels.TheBoardreviewsandapprovespoliciesandproceduresforthemanagementoftheserisks,whichareexecutedbytheCEOandtheGFC.TheARCprovidesindependentoversighttotheeffectivenessoftheriskmanagementprocess.

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Board’scommentonAdequacyandEffectivenessofInternalControls

Inordertoarriveatthebasisfortheopinionontheadequacyandeffectivenessofriskmanagementandinternalcontrols,theBoardwiththeassistanceoftheARChaveevaluatedthelevelofassurancerequiredinaccordancewiththenatureandcomplexityofthebusiness.TheBoardarrivesatthislevelofassurancethroughareviewoftheworkperformedbytheexternalauditors,internalauditors,otherassurancemechanismsandtheresultsoftheriskgovernanceandriskassessmentprocess.ThishasenabledtheBoardtoassesstheadequacyandeffectivenessoftheGroup’skeyinternalcontrolsandriskmanagementpracticespertainingtofinancial,operationalandcompliancecontrols.TheinternalcontrolshavealsobeenassessedinaccordancewiththeCOSOinternalcontrolframeworkwhichevaluatesthekeyelementssuchascontrolenvironment,riskassessment,controlactivities,informationandcommunicationandmonitoringactivities.Anymaterialnon-compliance,orlapsesininternalcontrolsandrecommendationsforimprovements,arereportedtotheARC.Allrequireddetective,preventive,orcorrectiveimprovementmeasuresarecloselymonitored.

IncompliancewithListingRule1207(10),theBoard,withtheconcurrenceoftheARC,isoftheopinionthattheCompanyhasarobustandeffective internalcontrolsystemandthesystemisadequatetoaddressthefinancial,operational,complianceandinformationtechnologycontrolsandtheriskmanagementsystems,basedonthereports fromthe internalauditors,externalauditorsandthevariousmanagementcontrolsputinplace.

TheBoardnotesthatthesystemofinternalcontrolsprovidesreasonable,butnotabsolute,assurancethattheGroupwillnotbeaffectedbyanyeventthatcouldbereasonablyforeseen,asitstrivestoachieveitsbusinessobjectives.Inthisregard,theBoardalsonotesthatnosystemcanprovideabsoluteassuranceagainsttheoccurrenceofmaterialerrors,poorjudgementindecision-making,humanerror,fraudorotherirregularities.

AssuranceofCEOandGFConFinancialRecordsandInternalControls

TheBoardhasreceivedassurancefromtheCEOandGFC,thatthefinancialrecordshavebeenproperlymaintainedandthefinancialstatementsgiveatrueandfairviewoftheCompany’soperationsandfinancesandregardingtheadequacyandeffectivenessoftheCompany’sriskmanagementandinternalcontrolsystems.

AuditCommittee

Principle12:TheBoardshouldestablishanAuditCommitteewithwrittentermsofreferencewhichclearlysetoutitsauthorityandduties.

TheBoardhasestablishedacombinedAuditCommitteeandRiskCommittee(“ARC”).TheARCassiststheBoardinfulfillingitsresponsibilitiestosafeguardtheCompany’sassets,toensurethatManagementmaintainsrequisiteaccountingrecords,andtodevelopandmaintaineffectivesystemsofinternalcontrol.

MembersoftheARC

TheARCcomprisesMichaelGrenvilleGray,FrancisLeeChoonHui,JulietteLeeHweeKhoonandHuangLui.AsidefromJulietteLeeHweeKhoon,whoisaNon-ExecutiveNon-IndependentDirector,alltheothersareNon-ExecutiveIndependentDirectors.TheChairmanoftheARCisMichaelGrenvilleGray.

TheBoardconsidersMichaelGrenvilleGray,whohasextensiveandpracticalaccountingandfinancialknowledgeandexperience,well qualified to chair the ARC. The other members of ARC collectively have relevant accounting, legal or related financialmanagementexpertiseorexperience.Theykeepabreastof relevantchanges toaccountingstandardsand issueswhichhavedirectimpactonthefinancialstatements.TheBoardisoftheviewthatthepresentmembersoftheARChavesufficientaccountingandfinancialmanagementexpertiseandexperiencetodischargetheirresponsibilities.TheBoardreviewsthecompositionandeffectivenessofthemembersoftheARCfromtimetotime.



AuthorityoftheARC

TheARChastheexplicitauthoritytoconductinvestigationsintoanymatterswithinitstermsofreference,includinghavingfullaccesstoandco-operationoftheManagement,hasfulldiscretiontoinviteanyDirectororexecutiveofficertoattenditsmeetings,andhasbeengivenreasonableresourcestoenableittodischargeitsfunctions.

TermsofReference

TheoverallobjectiveoftheARCistoensurethatManagementhasputinplaceandmaintainsaneffectivecontrolenvironmentintheGroup,andthatManagementbyexampleencouragesrespectfortheinternalcontrolsystemsamongallparties.ThetermsofreferenceoftheARCinclude,interalia,reviewingthefollowing:

(i) theCompany’sfinancialandoperatingresultsandaccountingpolicies;

(ii) theCompany’sinternalauditprocessesandtheexternal/internalauditors’reports;

(iii) theCompany’sfinancialstatementsandconsolidatedfinancialstatements,aswellastheexternalauditors’reportsonthosefinancialstatementsbeforesubmissiontotheBoard;

(iv) theco-operationgivenbytheManagementtotheauditors;

(v) theCompany’sauditplansandreportsoftheexternalauditors’examinationandevaluationontheinternalaccountingcontrolsystem;

(vi) transactionsfallingwithinthescopeofChapter9oftheSGX-STListingManual;

(vii) there-appointmentoftheexternalauditors;

(viii) theCompany’ssignificantfinancialreportingissuesandjudgments;and

(ix) anyformalannouncementsrelatingtotheCompany’sfinancialperformance.

FinancialReporting

QuarterlyfinancialstatementsandtheaccompanyingannouncementsarereviewedbytheARC,beforepresentationtotheBoardforapproval,toensuretheintegrityoftheinformationtobereleased.

ReviewofInterestedPartyTransactions(“IPTs”)

TheARCreviewsonaregularbasistheIPTs.ToassisttheARCinthisrole,theManagementhasappointedtheinternalauditortocarryoutagreedprocedurestoreviewtheIPTs.

ExternalAuditor

KPMGLLP(“KPMG”)wasappointedastheexternalauditoroftheCompanyon21April2014.

Wherepreparationofauditedfinancialstatementsisrequired,allsuchCompany’ssubsidiariesareauditedbyKPMGLLP.TheGroupisincompliancewithRule712andRule715oftheListingManualofSGXinrelationtoitsexternalauditors.

Theauditpartneroftheexternalauditorisrotatedeveryfiveyears,inaccordancewiththerequirementsofthelistingmanual.

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ActivitiesoftheARCinFY2017

DuringtheARCquarterlymeetingsthroughthefinancialyear,thefollowingmatterswerereviewed:

• Financial matters

InthereviewofthefinancialstatementstheARChasdiscussedwithManagementandtheexternalauditortheaccountingprinciplesthatwereappliedandtheirjudgmentofitemsthatmightaffecttheintegrityofthefinancialstatements.ThefollowingsignificantmattersimpactingthefinancialstatementswerediscussedwithManagementandtheexternalauditorandwerereviewedbytheARC.FollowingthereviewanddiscussionstheARCrecommendedtotheBoardtoapprovethefullyearfinancialstatements.

Significantmatters HowtheARCreviewedthesemattersandwhatdecisionsweremade

Revenuerecognitionforsalesofdevelopmentproperties

TheARCconsideredtheuseofthepercentagecompletionmethodinrecognisingrevenueforthesaleofdevelopmentproperties.TothisendtheARChaddiscussedwiththeexternalauditorsastowhetherthismethodwasappropriateandconcludedthatitwas.Inadditionthe ARC had discussed with management on the conditions of the sales contracts andconsideredthattheyareappropriateforthisformofrevenuerecognition.

Valuationfortheimpairmentofdevelopmentproperties

TheARCconsideredtheapproachandmethodologyappliedtothevaluationofdevelopmentproperties.Whereexternalvaluershavebeenused,ARChasbeenprovidedbymanagementwithdetailsoftheexternalvaluersandtheamountofthevaluations.Whereanindependentexternal valuer was not engaged, ARC assessed the reasonableness of the Group’sestimatedsellingpricesofthedevelopmentpropertiesbycomparingtothesalespricesofcomparableproperties.HavingdiscussedwithmanagementandtheexternalauditorstheARCissatisfiedthatnoimpairmentisrequired.

FairvalueofassetsandliabilitiesofHenanZhongyuan(“HZY”)atdateofacquisition

TheARCconsideredtheapproachandmethodologyappliedtothevaluationoftheacquisition.Where an external valuer has been used, ARC has been provided by management withdetailsoftheexternalvaluerandtheamountofthevaluationsoftheinvestmentpropertiesandlanduserightsofHZY.Inaddition,theARChadreadthereportfromtheexternalexpertanddiscussedwithmanagementonthemethodologyusedtoidentifytheintangibleassetsacquiredandthevaluationapproachadoptedbytheexternalexpert.HavingdiscussedwithmanagementandtheexternalauditorstheARCissatisfiedthatthefairvalueofassetsandliabilitiesofHZYwerevaluedappropriately.

Theabovethreeitemswerealsoanareaoffocusfortheexternalauditorandtheexternalauditorhasincludedtheseitemsaskeyauditmattersinitsauditreportforthefinancialyearended31December2017.Refertopage52to55ofthisAnnualReport.

• Review of Chairman/Directors/Managers expenses

Theentertainment,travellingandexpenseaccountsfortheChairman,DirectorsandManagers,areprovidedfortheARC’sreview,onaquarterlybasis.

• Review of Audit Findings

TheARCapprovedthescopeandauditplansundertakenbytheexternalauditor,reviewedtheresultsoftheaudits,significantfindingsandrecommendationsaswellasmanagementresponses.TheARCalsoreviewedtheadjustedandunadjustedauditmisstatementsandwasoftheviewthattherewasnoneedforanadjustmenttotheunadjustedmisstatements.

• Performance Evaluation of the External Auditor

TheManagementcompletedachecklistontheperformanceevaluationoftheexternalauditorconcerninganumberoffactorssuchasqualificationandcalibre,expertiseandresources,effectiveness,independence,leadershipandauditfees.TheevaluationwasreviewedbytheARC.



MeetingwithExternalAuditor

TheARCmeetstheexternalauditorwithoutthepresenceofManagement,todiscussthereasonablenessofthefinancialprocess,systemofinternalcontrols,fraudrisk,qualityofaccountingandanyothermatterswhichtheexternalauditorswishtoraise,atleastonceayear.

Non-auditServices

TheARChasconductedanannualreviewofthenon-auditservicesprovidedbytheexternalauditortosatisfyitselfthatthenatureandextentofsuchserviceswillnotprejudicetheindependenceandobjectivityoftheexternalauditor.Fordetailsofthefeespaidand/orpayablebytheGroupinrespectofauditandnon-auditservicesforFY2017,pleaserefertonote23oftheNotestotheFinancialStatements.

TheARCMembersTechnicalUpdates

Changestoaccountingstandardsandissueswhichhaveadirectimpactonfinancialstatements,willbehighlightedtotheARC,fromtimetotime,bytheexternalauditor.TheexternalauditorwillworkwithManagementtoensurethattheGroupcomplieswiththenewaccountingstandards,ifapplicable.

TheARCmembershavealsoattendedcoursesprovidedbytheSingaporeInstituteofDirectors(“SID”)andotherorganisationsduringthefinancialyear,includingthoseonaccountingandauditingissues.TheAuditCommitteeGuideissuedbySIDisusedasareferencefortheARCmatters.

WhistleBlowingPolicy

TheARChasinplaceawhistle-blowingpolicybywhichemployeesoftheGroupandanyotherpersonsmay,inconfidence,raiseconcernsaboutpossibleimproprietiesinmattersoffinancialreportingorothermatters.TheARCissatisfiedthatarrangementsareinplacefortheindependentinvestigationofsuchmattersandforappropriatefollowupaction.AsetofguidelineswasreviewedbytheARCandapprovedbytheBoardandissuedtoassisttheARCinmanagingallegationsoffraud,orothermisconduct,whichmaybemadeinlinewiththewhistle-blowingpolicy.TheWhistle-BlowingCommitteecomprisestheARCChairmanandtheNon-ExecutiveViceChairmancumLeadIndependentDirector.Noreportsweremadeduringtheyearinreview.

TheARCMembersbeingFormerPartnersoftheAuditingFirm

NeitherthemembersnortheChairmanoftheARCareformerpartnersordirectorsoftheGroup’sauditingfirm.NoneofthemholdanyfinancialinterestintheGroup’sauditingfirm.

InternalAudit

Principle13:TheCompanyshouldestablishaneffectiveinternalauditfunctionthatisadequatelyresourcedandindependentoftheactivitiesitaudits.

The internalaudit functionhasbeenoutsourcedtoan independentprofessional firm.Theyreport functionally to theChairmanoftheARCandadministrativelytotheCEO.TheinternalauditfunctionassiststheBoardandtheARCinprovidingindependentassessmentoftheadequacy,efficiencyandeffectivenessoftheGroup’sriskmanagementandinternalcontrolsystem.

AriskbasedinternalauditplanwhichsetsouttheareastobeauditedbytheInternalAuditorwaspreparedbasedonthereviewofriskreportsaswellasdiscussionswiththemanagementandmembersoftheARC.TheinternalauditreviewsintheinternalauditplanareprioritizedtoaddressadequacyandeffectivenessofinternalcontrolsregardingareaswhichareofsignificantorhigherrisktotheGroup’sbusinessactivities.TheinternalauditplanwasreviewedandapprovedbytheARCtoensureadequatecoveragebeforethecommencementoftheauditworkfortheyear.

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Theinternalauditsareperformed:

(i) Todeterminethatinternalcontrolsareinplaceandfunctioningasintendedtoaddressthekeybusinessandoperationalrisks;

(ii) Toassesswhetheroperationsofthebusinessprocessesunderreviewareconductedefficientlyandeffectively;and

(iii) Toidentifyopportunitiesforimprovementofinternalcontrols.

TheARCapprovesthehiring,removal,evaluationandcompensationoftheoutsourcedinternalauditfunction.TheInternalAuditorhadunfetteredaccesstoalltheCompany’sdocuments,records,propertiesandpersonnel,includingaccesstotheARC.

TheARCmeetswiththeInternalAuditor,withoutthepresenceofManagement,atleastonceayear.Theinternalauditfindings,categorisedaccordingtotheirpriority,aresubmittedtoanddiscussedwiththeARC.TheprogressontheimplementationofthecorrectiveactionsfortheoutstandingauditfindingsiscloselymonitoredbytheARC.

TheInternalAuditorcarriesouttheirfunctionaccordingtothestandardssetbynationallyorinternationallyrecognizedprofessionalbodies,includingtheStandardsfortheProfessionalPracticeofInternalAuditingsetbyTheInstituteofInternalAuditors.

TheARCreviewstheadequacyandeffectivenessofthe internalaudit functionannuallyandtogetherwiththeBoard,theyaresatisfiedthattheInternalAuditorhaveadequateresourcesandappropriatestanding,withintheGroupandtheCompany.

(D) SHAREHOLDERRIGHTSANDRESPONSIBILITIES

ShareholderRights

Principle14:Companies should treat all shareholders fairly and equitably, and should recognise, protect and facilitate the exercise ofshareholders’rights,andcontinuallyreviewandupdatesuchgovernancearrangements.

TheCompanytreatsallshareholdersfairlyandequitablyandrecognise,protectandfacilitatetheexerciseofshareholders’rights,andcontinually reviewandupdategovernancearrangements.Shareholderswere informedof changes in theCompanyor itsbusinesswhichwouldbelikelytomateriallyaffectthepriceorvalueoftheCompany’sshares,viadisclosuresthroughSGXNET.

Shareholdershadtheopportunitytoparticipateeffectivelyinandvoteatthegeneralmeetingsofshareholders.Shareholderswereinformedoftherules,includingvotingproceduresthatgoverngeneralmeetingsofshareholders.

CommunicationwithShareholders

Principle15:Companiesshouldactivelyengagetheirshareholdersandputinplaceaninvestorrelationspolicytopromoteregular,effectiveandfaircommunicationwithshareholders.

DisclosureofInformationonatimelybasis

TheCompanydoesnotpracticeselectivedisclosure.InlinewithcontinuousdisclosureobligationsoftheCompany,pursuantto SGX-ST Listing Rules, the Board’s policy is that all shareholders should be equally and timely informed, of all majordevelopmentsthatimpacttheGroup.



Informationiscommunicatedtoshareholdersonatimelybasisthrough:

(i) annualreportsthatarepreparedandissuedtoallshareholders;

(ii) asummaryofthefinancialinformationandaffairsoftheGroupforeachquarterandfullyear,thatarepublishedthroughtheSGXNET;

(iii) noticesandexplanatorymemorandaforannualgeneralmeetingsandextraordinarygeneralmeetings;and

(iv) informationthatismaterialormayinfluencethepriceoftheCompany’ssharesispostedonSGXNet.

Inaddition,shareholdersareencouragedtoattendthegeneralmeetings,toensureahighlevelofparticipationandaccountability,andtostayinformedoftheGroup’sstrategyandplans.TheAGMistheprincipalforumforanydialoguetheshareholdersmayhave,withtheDirectorsandManagementoftheCompany.

DialoguewithShareholders

TheBoardwelcomesquestionsfromshareholders,whohaveanopportunitytoraiseissueseitherinformallyorformally,beforeoratthegeneralmeetings.AllDirectors,includingthechairpersonsoftheARC,NC,RC,aswellastheexternalauditor,arepresentatthegeneralmeetings,toaddressanyshareholders’queries.

StepstoSolicitViewsofShareholders

TheCompanyvaluesfeedbackfromshareholdersonitseffortstopromotetransparencyandfosterinvestorrelationship.ShareholderscansubmittheirfeedbackandraiseanyquestiontotheCompany’sinvestorrelationcontactasprovidedintheCompany’swebsite.

DividendPolicy

TheCompanydoesnothaveaspecificpolicyontheamountofdividendstobepaidduetothenatureofthebusinessandthewaythatincomeisrealised.Nevertheless,theBoardhasadoptedapolicyofissuingdividendswhenthereareavailabilityofbothsufficientprofitsandcashflow.

CorporateWebsite

InformationabouttheGroup,includingtheAnnualReport,isfoundontheGroup’swebsiteatwww.gshcorporation.com.

ConductofShareholderMeetings

Principle16:Companiesshouldencouragegreatershareholderparticipationatgeneralmeetingsofshareholders,andallowshareholderstheopportunitytocommunicatetheirviewsonvariousmattersaffectingthecompany.

ParticipationofShareholdersatGeneralMeetings

Tofacilitateparticipationbytheshareholders,theCompany’sConstitutionallowsallshareholderstoappointnotmorethantwoproxies to attend and vote at general meetings. Under the Singapore Companies (Amendment) Act 2014, investors who holdtheCompany’ssharesthroughanomineecompanyorcustodianbankorthroughaCPFagentbankmayattendandvoteatthegeneralmeetingsofshareholders.Currently,theCompany’sConstitutiondonotallowashareholdertovoteinabsentiaastheauthenticationofashareholderidentityandotherrelatedsecurityandintegrityoftheinformationstillremainaconcern.

46



SeparateResolutionsforSeparateIssues

Resolutions are, as far as possible, structured separately and may be voted on independently. Each item of special businessincludedinthenoticeofthegeneralmeetingsisaccompanied,whereappropriate,byanexplanationfortheproposedresolution.

VotingbyPollandtheresultsofvoting

TheCompanyadoptspollvotingatthegeneralmeetings.DetailedresultsoftheoutcomeareannouncedafterthemeetingviaSGXNet.

AttendanceofDirectorsatGeneralMeetings

ItisthepolicyoftheBoardthatalldirectorsmustattendGeneralMeetingsunlessanydirectorhasagoodreasonnotto.

DuringtheyeargeneralmeetingswereattendedbyalldirectorsincludingtheChairmanoftheBoardandChairpersonsoftheARC,NCandRC.InadditiontheexternalauditorswerepresentattheAGMtoaddressshareholders’queriesabouttheconductofauditandthepreparationandcontentoftheAuditors’Report.

MinutesofGeneralMeetings&VotingbyPollandtheresultsofvoting

Allminutesofgeneralmeetingsincludesubstantialandrelevantcommentsorqueriesfromshareholdersrelatingtotheagendaofthemeeting,andresponsesfromtheBoardandManagement,areavailabletoshareholdersuponrequest.Resolutionsarepassedatthegeneralmeetingsbypollvotingandconductedinthepresenceofindependentscrutineersforgreatertransparencyinthevotingprocess.Thetotalnumbersandpercentageofvotescastfororagainsttheresolutionsareannouncedafterthemeeting via SGXNet. Electronic poll voting has not been adopted by the Company for the time being as the turnout of theshareholdersisstillconsiderablysmall.

(E) AdditionalInformation

• DealingsinSecurities

TheGrouphasadoptedacodeofconductwhichprovidesguidancetoitsofficerswithregardtodealingsintheCompany’ssecurities,incompliancewithRule1207(19)oftheListingManualoftheSGX-ST.

DirectorsandkeyemployeeswithintheGroup,arenotallowedtodealintheCompany’ssecuritieswhileinpossessionofprice-sensitive informationandduringtheperiodscommencingtwoweeksbeforetheannouncementoftheGroup’sfinancial results for the first three quarters or one month before the announcement of the Group’s full year financialresults.DirectorsandkeyemployeeswithintheGroup,arenotallowedtosharenon-publicmaterialinformationabouttheCompanywithfamilymembers,friends,associates,oranyoneelse,whomaysubsequentlybuyorsellintheCompany’ssecurities.

Inaddition,DirectorsandkeyemployeesareadvisednottodealintheCompany’ssecuritiesforshorttermconsiderationandareexpectedtoobservetheinsidertradinglawatalltimes,evenwhendealinginsecuritieswithinpermittedtradingperiods.



• InterestedPersonTransactions(“IPT”)

TheGrouphasestablishedproceduresforrecording,reportingandreviewingandapproving,interestedpersontransactions.BelowaretheIPTenteredbytheGroupforthefinancialyearended2017:

NameofInterestedPerson

AggregatevalueofallIPTsduringthefinancialyear

underreview

AggregatevalueofallIPTsconductedduringthefinancialyearunderreviewunderthe

shareholders’mandatepursuanttoRule920oftheListingManual

(excludingtransactionslessthanS$100,000)

SamGoiSengHui,ExecutiveChairman(pleaseseeNote(i)forfurtherdetails) S$1,635,125

Notapplicable–theGroupdoesnothaveashareholders’mandatepursuanttoRule920of

theListingManual

Note:

(i) Interestpaidforthesubscriptionof5.15%fixedratenotesdue2019issuedbytheCompanyunderitsS$800,000,000multicurrencymediumtermnoteprogrammeon8June2016.

• MaterialContracts

SavefortheserviceagreementsbetweentheExecutiveDirectorsandtheCompany,therewerenomaterialcontractsoftheCompanyoritssubsidiaries,involvingtheinterestoftheExecutiveChairman,theCEOoranyDirectororcontrollingshareholders,subsistingattheendofthefinancialyearended2017.


WearepleasedtosubmitthisannualreporttothemembersoftheCompanytogetherwiththeauditedfinancialstatementsforthefinancialyearended31December2017.

Inouropinion:

(a) thefinancialstatementssetoutonpages58to132aredrawnupsoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31December2017andthefinancialperformance,changesinequityandcashflowsoftheGroupfortheyearendedonthatdateinaccordancewiththeprovisionsoftheSingaporeCompaniesAct,Chapter50andSingaporeFinancialReportingStandards;and

(b) atthedateofthisstatement,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheyfalldue.

TheBoardofDirectorshas,onthedateofthisstatement,authorisedthesefinancialstatementsforissue.

Directors

Thedirectorsinofficeatthedateofthisstatementareasfollows:

SamGoiSengHuiGilbertEeGuanHuiKennethGoiKokMingFrancisLeeChoonHuiMichaelGrenvilleGrayJulietteLeeHweeKhoonHuangLuiSunYu (Appointedon28August2017)

Directors’interests

According to the register kept by the Company for the purposes of Section 164 of the Companies Act, Chapter 50 (the “Act”),particularsof interestsofdirectorswhoheldofficeat theendof the financial year (including thoseheldby theirspousesandchildren)insharesordebenturesintheCompanyandinrelatedcorporations(otherthanwholly-ownedsubsidiaries)areasfollows:

Nameofdirectorandcorporationsinwhichinterestsareheld DescriptionofInterests

Atbeginningoftheyear/

dateofappointmentAtend

oftheyear

SamGoiSengHuiGSHCorporationLimited OrdinaryShares(Direct) 958,389,875 968,796,975

SamGoiSengHuiGSHCorporationLimited $60,000,0005.15%fixed

ratenotesduein2019$31,750,000 $31,750,000

$70,000,0005.15%fixedratenotesduein2020

– $21,000,000

D I R E C T O R S ’S T A T E M E N TY E A R E N D E D 3 1 D E C E M B E R 2 0 17


Directors’interests(cont’d)

Nameofdirectorandcorporationsinwhichinterestsareheld DescriptionofInterests

Atbeginningoftheyear/

dateofappointmentAtend

oftheyear

GilbertEeGuanHuiGSHCorporationLimited OrdinaryShares(Direct) 52,629,478 52,629,478

OrdinaryShares(Deemed) 105,913,600 105,913,600


$1,750,000 $1,750,000


– $5,000,000

SunYuGSHCorporationLimited OrdinaryShares(Deemed) 23,509,400 23,509,400

KennethGoiKokMingGSHCorporationLimited $70,000,0005.15%fixed

ratenotesduein2020– $1,000,000

JulietteLeeHweeKhoonGSHCorporationLimited $70,000,0005.15%fixed

ratenotesduein2020– $250,000

MichaelGreenvilleGrayGSHCorporationLimited $70,000,0005.15%fixed

ratenotesduein2020– $250,000

Except as disclosed in this statement, no director who held office at the end of the financial year had interests in shares ordebenturesoftheCompany,orofrelatedcorporations,eitheratthebeginningofthefinancialyear,ordateofappointmentiflater,orattheendofthefinancialyear.

TherewerenochangesinanyoftheabovementionedinterestsintheCompanybetweentheendofthefinancialyearendand21January2018.

Neitherattheendof,noratanytimeduringthefinancialyear,wastheCompanyapartytoanyarrangementwhoseobjectsare,oroneofwhoseobjectsis,toenablethedirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate.



Shareoptions

Duringthefinancialyear,therewere:

(i) nooptionsgrantedbytheCompanyor itssubsidiariestoanypersontotakeupunissuedsharesintheCompanyor itssubsidiaries;and

(ii) nosharesissuedbyvirtueofanyexerciseofoptionstotakeupunissuedsharesoftheCompanyoritssubsidiaries.

Asattheendofthefinancialyear,therewerenounissuedsharesoftheCompanyoritssubsidiariesunderoptions.

AuditRiskCommittee

ThemembersoftheAuditRiskCommitteeduringtheyearandatthedateofthisstatementare:

MichaelGrenvilleGray(Chairman),non-executiveindependentdirectorFrancisLeeChoonHui,non-executiveleadindependentdirectorJulietteLeeHweeKhoon,non-executivenon-independentdirectorHuangLui,non-executiveindependentdirector

TheAuditRiskCommitteeperformedthefunctionsspecifiedinSection201BoftheAct,theSGXListingManualandtheCodeofCorporateGovernance.

The Audit Risk Committee has held four meetings since the last directors’ statement. In performing its functions, the AuditRiskCommitteemetwiththeCompany’sexternalandinternalauditorstodiscussthescopeoftheirwork,theresultsoftheirexaminationandevaluationoftheCompany’sinternalaccountingcontrolsystem.

TheAuditRiskCommitteealsoreviewedthefollowing:

• assistanceprovidedbytheCompany’sofficerstotheinternalandexternalauditors;

• quarterlyfinancialinformationandannualfinancialstatementsoftheGroupandtheCompanypriortotheirsubmissiontothedirectorsoftheCompanyforadoption;and

• interestedpersontransactions(asdefinedinChapter9oftheSGXListingManual).

TheAuditRiskCommitteehasfullaccesstomanagementandisgiventheresourcesrequiredforittodischargeitsfunctions.Ithasfullauthorityandthediscretiontoinviteanydirectororexecutiveofficertoattenditsmeetings.TheAuditRiskCommitteealsorecommendstheappointmentoftheexternalauditorsandreviewsthelevelofauditandnon-auditfees.

TheAuditRiskCommitteeissatisfiedwiththeindependenceandobjectivityoftheexternalauditorsandhasrecommendedtotheBoardofDirectorsthattheauditors,KPMGLLP,benominatedforre-appointmentasauditorsattheforthcomingAnnualGeneralMeetingoftheCompany.

InappointingourauditorsoftheCompany,wehavecompliedwithRules712and715oftheSGXListingManual.



Auditors

Theauditors,KPMGLLP,haveindicatedtheirwillingnesstoacceptre-appointment.

OnbehalfoftheBoardofDirectors

GilbertEeGuanHui KennethGoiKokMingDirector Director

26March2018



Reportontheauditofthefinancialstatements

Opinion

WehaveauditedtheaccompanyingfinancialstatementsofGSHCorporationLimited(“theCompany”)anditssubsidiaries(“theGroup”),whichcomprisethestatementoffinancialpositionoftheGroupandtheCompanyasat31December2017,thestatementofcomprehensiveincome,statementofchangesinequityandstatementofcashflowsoftheGroupfortheyearthenended,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpoliciesassetoutonpages58to132.

Inouropinion,theaccompanyingfinancialstatementsoftheGroupandtheCompanyareproperlydrawnupinaccordancewiththeprovisionsoftheSingaporeCompaniesAct,Chapter50(the“Act”)andFinancialReportingStandardsinSingapore(“FRSs”)soastogiveatrueandfairviewofthefinancialpositionoftheGroupandtheCompanyasat31December2017andofthefinancialperformance,changesinequityandcashflowsoftheGroupfortheyearendedonthatdate.

Basis for opinion

WeconductedourauditinaccordancewithSingaporeStandardsonAuditing(SSAs).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditors’ responsibilities for the audit of the financial statementssectionofourreport.WeareindependentoftheGroupinaccordancewiththeAccountingandCorporateRegulatoryAuthorityCode of Professional Conduct and Ethics for Public Accountants and Accounting Entities(ACRACode)togetherwiththeethicalrequirementthatarerelevanttoourauditofthefinancialstatementsinSingapore,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheACRACode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Key audit matters

Keyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.

Revenuerecognitionforsalesofdevelopmentproperties

(RefertoNote3.12andNote8tothefinancialstatements)

RISK:

The Group enters into contracts with customers to deliver specified building units to the customers based on the plans andspecificationsassetout in thecontracts. InaccordancewithFRS115Revenue from Contracts with Customers, theanalysisofwhetherthecontractscomprisesoneormoreperformanceobligations,determiningwhethertheperformanceobligationsaresatisfiedovertimeandthemethodusedtomeasureprogressforrevenuerecognitionwhereperformanceobligationsaresatisfiedovertimerepresentareasrequiringcriticaljudgementandestimatesbytheGroup.

Thereisabroadpossiblerangeofoutcomesresultingfromthesejudgementsthatcouldleadtodifferentrevenueandprofitbeingreportedinthefinancialstatements.

I N D E P E N D E N TA U D I T O R S ’ R E P O R TM E M B E R S O F T H E C O M P A N YG S H C O R P O R AT I O N L I M I T E D



OURRESPONSE:

Weevaluated theGroup’sprocessesoverrevenuerecognition forsalesofdevelopmentpropertiesandassessedthebasis fortheidentificationofperformanceobligations.Wealsoreadthesalesandpurchaseagreementsofdevelopmentpropertiesanddiscussedeachofthedevelopmentswithmanagementtoobtainanunderstandingofthespecifictermstoidentifyperformanceobligations.Also,weassessedwhetherthecriteriaaremetforrecognisingrevenueovertime.

Weassessedtheappropriatenessofmethodsandamountsusedtomeasuretheprogressoftheconstructionofspecifiedbuildingunitsbyreferencetoconstructioncostsincurredtodatecomparedtotheestimatedtotalconstructioncostswheretheperformanceobligationissatisfiedovertime.

Weassessedtheadequacyoftheestimatedtotalconstructioncostsbycomparingthemwiththeactualcostsincurredto-dateanddiscussedwithmanagementontheprogressoftheprojects,takingintoconsiderationanysignificantdeviationindesignplansorpotentialdelay,whichmayrequirerevisionintheestimatedtotalconstructioncosts.Worksthathavebeencontractedtothirdparties,weagreedthemtothecontracts.Forconstructioncostsincurredtodate,wehavetestedthesignificantitemsofcostcomponentstothesupportingdocumentssuchassupplier’sinvoices,toascertaintheexistenceandaccuracyofthecostsofworkdone.

OURFINDINGS:

We found thebasisandresult for the identificationofperformanceobligationsand theassessmentofwhether the identifiedperformanceobligationsaresatisfiedovertimebytheGrouptobeappropriate.

Wealsofoundthemethodusedtorecogniserevenuefromthedeliveryofspecifiedbuildingunitstobeconsistentwiththetransferofcontrolofthegoodsorservicestothecustomers.

Wefoundtheestimatedtotalconstructioncostsandcostsofworkperformedtodatetobeappropriate.

Valuationfortheimpairmentofdevelopmentproperties

(RefertoNote3.7andNote8tothefinancialstatements)

RISK:

TheGrouphasresidentialdevelopmentpropertiesheldforsaleinMalaysia.Developmentpropertiesarestatedatthelowerofcostandnetrealisablevalues.Netrealisablevaluerepresentstheestimatedfuturesellingprice,lessestimatedcostsofcompletionandsellingexpenses.

The estimation of future selling prices is dependent on the Group’s expectation of the market development in the respectivemarkets.Thereisthereforeariskthattheestimatednetrealisablevalueexceedsthefutureactualsellingprices,resultinginlosseswhenthesepropertiesaresold.


OURRESPONSE:

Whereanindependentexternalvaluerwasengaged,ourproceduresincludedassessmentofthecompetence,capabilitiesandobjectivityofthevaluers.WealsoreadthetermsofengagementofthevaluerswiththeGrouptodeterminewhethertherewereanymattersthatmighthaveaffectedtheirobjectivityorlimitedthescopeoftheirwork.

Weconsideredthevaluationmethodologiesusedagainstthoseappliedbyothervaluersforsimilarpropertytypes.Wecomparedthevaluers’underlyingassumptionsonthemarketvaluetomarketcomparablesand,whennecessary,heldfurtherdiscussionswiththevaluers.

Whereanindependentexternalvaluerwasnotengaged,weassessedthereasonablenessoftheGroup’sestimatedsellingpricesofthedevelopmentpropertiesbyindependentlyvalidatingtorecenttransactedsalespricesofcomparableproperties.Wealsoconsideredindustryreportsandforecastsonpropertymarkettrendsmadebyresearchanalysts.

Wecalculatedthereasonablenessofthebudgetedcoststocompletionbycomparingthebudgetedcoststocostsincurredtodate,takingintoconsiderationtheconstructionprogressandanysignificantdeviationindesignplans.

OURFINDINGS:

Wearesatisfiedwiththecompetence,capabilitiesandobjectivityoftheexternalvaluers.Thevaluersaremembersofgenerallyrecognisedprofessionalbodiesforvaluersandhaveconsideredtheirownindependenceincarryingouttheirwork.Thevaluationmethodologiesadoptedbythevaluerswerefoundtobeappropriateandcomparabletothemethodsusedforsimilarpropertytypes and those used in the prior years. The key assumptions used in the valuations were found to be balanced, and whereavailable,consistentwithcurrentmarketdata.

Whereanindependentexternalvaluerwasnotengaged,wefoundtheGroup’sestimatedsellingpricesandconstructioncoststobebalanced.

FairvalueofassetsandliabilitiesofHenanZhongyuanGroupatdateofacquisition

(RefertoNote2.4,Note3.1andNote7tothefinancialstatements)

RISK:

Duringtheyear,theGroupacquired30%equityinterestin河南中原四季水产物流港股份有限公司及其子公司(“HenanZhongyuanGroup”)foraconsiderationofapproximately$41million(equivalenttoRMB200million).

Thedeterminationofthefairvalueoftheidentifiableassetsandliabilities,whichmainlyconsistofinvestmentpropertiesandlanduserights,ofHenanZhongyuanGroupinvolvessignificantjudgement.



OURRESPONSE:

WeexaminedthetermsandconditionsofthesaleandpurchaseagreementfortheacquisitionoftheHenanZhongyuanGroup.

TheGrouphasengagedanindependentpropertyvaluertoassessthefairvalueofinvestmentpropertiesandlanduserights,andanexternalexperttoappraisetheidentifiableassetsacquiredandliabilitiesassumedatthedateofacquisition.Weevaluatedthecompetence,capabilitiesandobjectivityoftheindependentvaluerandexternalexpert.

Weusedourownvaluationspecialists’knowledgetoassistusinchallengingthemethodologyusedtoidentifytheintangibleassetsacquiredandthevaluationapproachadoptedbytheexternalexpert.Thevaluationspecialisthasconsideredthekeyassumptionsusedbycomparingtomarketdataandunderlyingaccountingrecordsoftheacquiredbusiness.

Wealsousedourownvaluationspecialiststoassistusinconsideringthevaluationmethodologychosenbytheindependentvaluerfortheotherassetsandliabilitiesacquired,assessedkeyassumptionsandobtainedcorroborativeevidencefortheexplanationsprovided,bycomparingkeyassumptionstomarketdata.

OURFINDINGS:

Wereadthesaleandpurchaseagreementandconfirmedourunderstandingofthetransactionwithmanagement.

Wearesatisfiedwiththecompetence,capabilitiesandobjectivityoftheindependentvaluerandexternalexpert.Theindependentvaluerandexternalexpertaremembersofgenerallyrecognisedprofessionalbodiesandhaveconsideredtheirownindependenceincarryingouttheirwork.

Thevaluationmethodologiesadoptedbytheindependentvaluerandexternalexpertwerefoundtobeappropriateandcomparabletothoseappliedbyothervaluersandexperts.Thekeyassumptionsusedinthevaluationswerefoundtobebalancedandwhererelevant,supportedbymarketdataandunderlyingaccountingrecordsoftheacquiredbusiness.

Other information

Managementisresponsiblefortheotherinformationcontainedintheannualreport.Otherinformationisdefinedasallinformationintheannualreportotherthanthefinancialstatementsandourauditors’reportthereon.

Wehaveobtainedallotherinformationpriortothedateofthisauditors’report.

Ouropiniononthefinancialstatementsdoesnotcovertheother informationandwedonotexpressanyformofassuranceconclusionthereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,considerwhether theother information ismaterially inconsistentwith the financialstatementsorourknowledgeobtained intheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.



Responsibilities of management and directors for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with theprovisionsoftheActandFRSs,andfordevisingandmaintainingasystemofinternalaccountingcontrolssufficienttoprovidea reasonableassurance thatassetsaresafeguardedagainst loss fromunauthoriseduseordisposition;and transactionsareproperlyauthorisedandthattheyarerecordedasnecessarytopermitthepreparationoftrueandfairfinancialstatementsandtomaintainaccountabilityofassets.

Inpreparingthefinancialstatements,managementisresponsibleforassessingtheGroup’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheGrouportoceaseoperations,orhasnorealisticalternativebuttodoso.

Thedirectors’responsibilitiesincludeoverseeingtheGroup’sfinancialreportingprocess.

Auditors’ responsibilities for the audit of the financial statements

Ourobjectivesare toobtainreasonableassuranceaboutwhether the financialstatementsasawholeare free frommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditors’reportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AspartofanauditinaccordancewithSSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrols.

• Obtainanunderstandingofinternalcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup’sinternalcontrols.

• Evaluate theappropriatenessofaccountingpoliciesusedand thereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheGroup’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditors’reporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditors’report.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.

• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheGrouptoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.



Wecommunicatewiththedirectorsregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolsthatweidentifyduringouraudit.

Wealsoprovidethedirectorswithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the auditof the financial statements of the current period and are therefore the key audit matters. We describe these matters in ourauditors’reportunlesslaworregulationsprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicated inourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

Reportonotherlegalandregulatoryrequirements

Inouropinion,theaccountingandotherrecordsrequiredbytheActtobekeptbytheCompanyandbythosesubsidiarycorporationsincorporatedinSingaporeofwhichwearetheauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

Theengagementpartnerontheauditresultinginthisindependentauditors’reportisTeoHanJo.

KPMGLLPPublic Accountants and Chartered Accountants

Singapore26March2018



Group CompanyNote 2017 2016 2017 2016

$’000 $’000 $’000 $’000

AssetsProperty,plantandequipment 4 403,404 397,415 29,962 21,689Investmentproperty 5 5,260 6,158 – –Subsidiaries 6 – – 313 260Associate 7 58,640 – – –Non-currentassets 467,304 403,573 30,275 21,949

Developmentproperties 8 211,762 783,370 – –Inventories 9 986 737 – –Tradeandotherreceivables 10 13,602 11,117 4,713 4,567Amountsduefromrelatedparties 11 – – 333,049 356,152Cashandcashequivalents 12 236,684 317,115 183,290 287,686Currentassets 463,034 1,112,339 521,052 648,405

Totalassets 930,338 1,515,912 551,327 670,354

EQUITYSharecapital 13 343,458 343,458 343,458 343,458Treasuryshares 13 (5,131) (5,131) (5,131) (5,131)Reserves 14 (30,553) (36,879) – –Accumulatedprofits/(losses) 112,182 44,235 33,640 (26,258)EquityattributabletoownersoftheCompany 419,956 345,683 371,967 312,069Non-controllinginterests 58,147 92,451 – –Totalequity 478,103 438,134 371,967 312,069

LIABILITIESTradeandotherpayables 15 – 2,176 – –Loansandborrowings 16 327,328 235,510 149,319 72,559Deferredtaxliabilities(net) 17 58,475 62,939 – –Non-currentliabilities 385,803 300,625 149,319 72,559

Tradeandotherpayables 15 42,428 49,120 13,778 15,173Loansandborrowings 16 20,957 650,511 809 244,268Amountsduetorelatedparties 11 301 64,448 14,447 13,948Derivativefinancialliabilities 18 884 12,337 884 12,337Currenttaxliabilities 1,862 737 123 –Currentliabilities 66,432 777,153 30,041 285,726

Totalliabilities 452,235 1,077,778 179,360 358,285

Totalequityandliabilities 930,338 1,515,912 551,327 670,354

S T A T E M E N T S O FF I N A N C I A L P O S I T I O N A S AT 3 1 D E C E M B E R 2 0 17

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.


Note 2017 2016$’000 $’000

Restated

Revenue 19 110,325 87,159Costofsales (59,287) (52,251)Grossprofit 51,038 34,908

Othernetincome 20 77,465 18Sellingandmarketingexpenses (3,117) (3,568)Administrativeexpenses (29,232) (22,562)Otherexpenses (30) (40)Resultsfromoperatingactivities 96,124 8,756

Financeincome 14,652 9,083Financeexpenses (31,460) (17,523)Netfinancecosts 21 (16,808) (8,440)

Shareofprofitofequity-accountedinvestee(netoftax) 7 17,327 –Profitbeforetax 96,643 316Taxexpense 22 (5,651) (3,913)Profit/(Loss)fortheyear 23 90,992 (3,597)

Othercomprehensiveincome,netoftax*Itemsthatareormaybereclassifiedsubsequentlytoprofitorloss:Foreigncurrencytranslationdifferencesrealisedondisposalofasubsidiary 930 –Foreigncurrencytranslationdifferencesrelatingtoforeignoperations 4,110 (3,944)Exchangedifferencesonmonetaryitemsformingpartofnetinvestmentsina

foreignoperation 1,977 (1,319)Shareofforeigncurrencytranslationdifferencesofequity-accountedinvestee 339 –Othercomprehensiveincome,netoftax* 7,356 (5,263)

Totalcomprehensiveincomefortheyear 98,348 (8,860)

Profit/(Loss)attributableto:OwnersoftheCompany 87,536 (3,638)Non-controllinginterests 3,456 41Profit/(Loss)fortheyear 90,992 (3,597)

Totalcomprehensiveincomeattributableto:OwnersoftheCompany 93,862 (7,942)Non-controllinginterests 4,486 (918)Totalcomprehensiveincomefortheyear 98,348 (8,860)

EarningspershareBasicanddilutedearningspershare(cents) 24 4.47 (0.18)

* Therewasnotaxeffectonthecomponentsincludedinothercomprehensiveincome.

C O N S O L I D A T E D S T A T E M E N TO F C O M P R E H E N S I V E I N C O M EY E A R E N D E D 3 1 D E C E M B E R 2 0 17



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Note 2017 2016$’000 $’000

CashflowsfromoperatingactivitiesProfit/(Loss)fortheyear 90,992 (3,597)Adjustmentsfor:Changeinfairvalueofinvestmentproperty 20 431 2,037Depreciationofproperty,plantandequipment 4 9,300 8,907Interestexpense 21 19,024 17,523Interestincome 21 (3,200) (5,648)Reversalofallowanceoninventories 20 (8) (28)Netlossondisposalofproperty,plantandequipment 20 106 20Allowancefor/(Reversalofallowancefor)tradereceivables 20 24 (21)Netforeignexchangegainarisingfromfixeddepositpledged 21 (144) (1,619)Netchangeinfairvalueoffinancialderivatives 21 (11,452) (453)Gainondisposalofasubsidiary 20 (74,511) –Shareofprofitofequity-accountedinvestee(netoftax) 7 (17,327) –Taxexpense 22 5,651 3,913

18,886 21,034Changesin:Developmentproperties 33,453 (36,423)Inventories (241) 346Tradeandotherreceivables (17,641) 19,111Tradeandotherpayables 3,757 299Balanceswithrelatedparties 301 9,800Cashgeneratedfromoperations 38,515 14,167Taxpaid (4,459) (1,863)Netcashfromoperatingactivities 34,056 12,304

CashflowsfrominvestingactivitiesAcquisitionofproperty,plantandequipment (12,066) (3,979)Paymentofconsiderationonacquisitionofsubsidiaries – (17,353)Depositspledged 233,377 16,766Disposalsofasubsidiary,netofcashdisposedoff 31 157,149 –Acquisitionofequity-accountedinvestee (40,974) –Interestreceived 5,711 4,977Proceedsfromsaleofproperty,plantandequipment 5 6Netcashfrominvestingactivities 343,202 417

C O N S O L I D A T E D S T A T E M E N TO F C A S H F L O W SY E A R E N D E D 3 1 D E C E M B E R 2 0 17



Note 2017 2016$’000 $’000

CashflowsfromfinancingactivitiesFinanceexpensepaid(includingamountscapitalisedindevelopmentproperties) (22,553) (30,616)Paymentoffinanceleaseobligations (386) (328)Purchaseoftreasuryshares – (5,131)Repaymentofborrowings (323,273) (115,492)Proceedsfromborrowings 141,297 105,535Dividendpaid (19,589) (988)Netcashusedinfinancingactivities (224,504) (47,020)

Netincrease/(decrease)incashandcashequivalents 152,754 (34,299)Cashandcashequivalentsat1January 45,319 79,780Effectofexchangeratefluctuationsoncashheld 48 (162)Cashandcashequivalentsat31December 12 198,121 45,319

Purchaseofproperty,plantandequipment

Duringthefinancialyear,theGroupacquiredproperty,plantandequipmentamountingto$8,533,000(2016:$4,472,000).Thecashflowsarisingfromtheacquisitionofproperty,plantandequipmentexcluded/includedthefollowingitems:

(a) acquisitionunderfinanceleasearrangementsamountingto$299,000(2016:$493,000);and

(b) anetdecreaseof$3,590,000(2016:$nil)relatedtootherpayablestosuppliersofproperty,plantandequipment.

Cash outflow for the year also include payments in respect of property, plant and equipment acquired in 2016 amounting to$7,422,000.

C O N S O L I D A T E D S T A T E M E N TO F C A S H F L O W SY E A R E N D E D 3 1 D E C E M B E R 2 0 17



N O T E S T O T H EF I N A N C I A L S T A T E M E N T SY E A R E N D E D 3 1 D E C E M B E R 2 0 17

Thesenotesformanintegralpartofthefinancialstatements.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorson26March2018.

1. Domicileandactivities

GSHCorporationLimited (the“Company”) isacompany incorporated in theRepublicofSingapore.Theaddressof theCompany’sregisteredofficeis20CecilStreet#28-01GSHPlazaSingapore049705.

TheprincipalactivityoftheCompanyisinvestmentholdingandprovisionofmanagementservicestoitssubsidiaries.Theprincipalactivitiesofitssubsidiariesaresetoutinnote6tothefinancialstatements.

The financialstatementsof theGroupasatand for theyearended31December2017comprise theCompanyand itssubsidiaries(togetherreferredtoasthe“Group”andindividuallyas“Groupentities”)andtheGroup’sinterestsinequity-accountedinvestees.

2. Basisofpreparation

2.1 Statementofcompliance

ThefinancialstatementshavebeenpreparedinaccordancewiththeSingaporeFinancialReportingStandards(“FRS”).

2.2 Basisofmeasurement

Thefinancialstatementshavebeenpreparedonthehistoricalcostbasisexceptasotherwisedisclosedinthenotesbelow.

2.3 Functionalandpresentationcurrency

These financial statements are presented in Singapore dollars (“$”), which is the Company’s functional currency. AllfinancialinformationpresentedinSingaporedollarshavebeenroundedtothenearestthousand,unlessotherwisestated.

2.4 Useofestimatesandjudgements

ThepreparationofthefinancialstatementsinconformitywithFRSsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.

Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.

Informationaboutcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountsrecognisedinthefinancialstatementsisincludedinthefollowingnote:

• Note3.12 – revenuerecognition



2. Basisofpreparation(cont’d)

2.4 Useofestimatesandjudgements(cont’d)

Informationaboutassumptionsandestimationuncertaintiesthathaveasignificantriskofresultinginamaterialadjustmentwithinthenextfinancialyearareincludedinthefollowingnotes:

• Note4 – measurementofrecoverableamountsofproperty,plantandequipment

• Note7 – determinationoffairvalueofnetidentifiableassetsandliabilitiesarisingfrompurchasepriceallocationexerciseininvestmentinanassociate

• Note8 – estimationofallowanceforforeseeablelossesfordevelopmentproperties

• Note17 – estimationofcurrentanddeferredtaxliabilities/(assets)

Measurementoffairvalues

AnumberoftheGroup’saccountingpoliciesanddisclosuresrequirethemeasurementoffairvalues,forbothfinancialandnon-financialassetsandliabilities.

TheGrouphasanestablishedcontrolframeworkwithrespecttothemeasurementoffairvalues.Thefinanceteamhasoverallresponsibilityforallsignificantfairvaluemeasurements,includingLevel3fairvalues,andreportsdirectlytotheGroupFinancialController.

For all significant financial reporting valuations using valuation models and significant unobservable inputs, it is theGroup’spolicytoengageexternalvaluationexpertstoperformthevaluations.Managementisresponsibleforselectingandengagingvaluationexpertsthatpossesstherelevantcredentialsandknowledgeonthesubjectofvaluationandvaluationmethodologies.

SignificantvaluationissuesarereportedtotheGroupFinancialControllerandtheGroup’sAuditRiskCommittee.

Whenmeasuringthefairvalueofanassetoraliability,theGroupusesobservablemarketdataasfaraspossible.Fairvaluesarecategorisedintodifferentlevelsinafairvaluehierarchybasedontheinputsusedinthevaluationtechniquesasfollows:

• Level1: quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.

• Level2: inputsotherthanquotedpricesincludedinLevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices).

• Level3: inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

Iftheinputsusedtomeasurethefairvalueofanassetoraliabilityfallintodifferentlevelsofthefairvaluehierarchy,thenthefairvaluemeasurementiscategorisedinitsentiretyinthesamelevelofthefairvaluehierarchyasthelowestlevelinputthatissignificanttotheentiremeasurement(withLevel3beingthelowest).

TheGrouprecognisestransfersbetweenlevelsofthefairvaluehierarchyasoftheendofthereportingperiodduringwhichthechangehasoccurred.



2. Basisofpreparation(cont’d)

2.4 Useofestimatesandjudgements(cont’d)

Furtherinformationabouttheassumptionsmadeinmeasuringfairvaluesisincludedinthefollowingnotes:

• Note5 – investmentproperty;and

• Note29 – financialinstruments

2.5 Changesinaccountingpolicies

Revisedstandards

TheGrouphasappliedthefollowingamendmentsforthefirsttimefortheannualperiodbeginningon1January2017:

• Disclosure Initiative (Amendments to FRS 7);

• Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to FRS 12); and

• Clarification of the scope of FRS 112 (Improvements to FRSs 2016).

OtherthantheamendmentstoFRS7,theadoptionoftheseamendmentsdidnothaveanyimpactonthecurrentorpriorperiodandisnotlikelytoaffectfutureperiods.

From1January2017,asaresultoftheamendmentstoFRS7,theGrouphasprovidedadditionaldisclosureinrelationtothechangesinliabilitiesarisingfromfinancialactivitiesfortheyearended31December2017.Comparativeinformationhasnotbeenpresented(seenote16).

3. Significantaccountingpolicies

Theaccountingpoliciessetoutbelowhavebeenappliedconsistentlytoallperiodspresentedinthesefinancialstatements,andhavebeenappliedconsistentlybyGroupentities,exceptasexplainedinnote2.5,whichaddresseschangesinaccountingpolicies.

3.1 Basisofconsolidation

(i) Businesscombinations

Business combinations are accounted for using the acquisition method in accordance with FRS 103 Business Combinationsasattheacquisitiondate,whichisthedateonwhichcontrolistransferredtotheGroup.

TheGroupmeasuresgoodwillattheacquisitiondateas:

• thefairvalueoftheconsiderationtransferred;plus

• therecognisedamountofanynon-controllinginterestsintheacquiree;plus



3. Significantaccountingpolicies(cont’d)

3.1 Basisofconsolidation(cont’d)

(i) Businesscombinations(cont’d)

• if thebusinesscombination isachieved instages, the fairvalueof thepre-existingequity interest in theacquiree,

overthenetrecognisedamount(generallyfairvalue)oftheidentifiableassetsacquiredandliabilitiesassumed.Anygoodwillthatarisesistestedannuallyforimpairment.

Whentheexcessisnegative,abargainpurchasegainisrecognisedimmediatelyinprofitorloss.

Theconsideration transferreddoesnot includeamountsrelated to thesettlementofpre-existingrelationships.Suchamountsaregenerallyrecognisedinprofitorloss.

Any contingent consideration payable is recognised at fair value at the acquisition date and included in theconsideration transferred. If the contingent consideration that meets the definition of a financial instrument isclassifiedasequity,itisnotremeasuredandsettlementisaccountedforwithinequity.Otherwise,othercontingentconsiderationisremeasuredatfairvalueateachreportingdateandsubsequentchangestothefairvalueofthecontingentconsiderationarerecognisedinprofitorloss.

When share-based payment awards (replacement awards) are exchanged for awards held by the acquiree’semployees (acquiree’sawards)andrelate topastservices, thenalloraportionof theamountof theacquirer’sreplacement awards is included in measuring the consideration transferred in the business combination. Thisdeterminationisbasedonthemarket-basedvalueofthereplacementawardscomparedwiththemarket-basedvalueoftheacquiree’sawardsandtheextenttowhichthereplacementawardsrelatetopastand/orfutureservice.

Non-controllingintereststhatarepresentownershipinterestsandentitletheirholderstoaproportionateshareoftheacquiree’snetassetsintheeventofliquidationaremeasuredeitheratfairvalueoratthenon-controllinginterests’proportionateshareoftherecognisedamountsoftheacquiree’s identifiablenetassets,atthedateofacquisition.Themeasurementbasistakeniselectedonatransaction-by-transactionbasis.Allothernon-controllinginterestsaremeasuredatacquisition-datefairvalue,unlessanothermeasurementbasisisrequiredbyFRSs.

Costsrelatedtotheacquisition,otherthanthoseassociatedwiththeissueofdebtorequitysecurities,thattheGroupincursinconnectionwithabusinesscombinationareexpensedasincurred.

ChangesintheGroup’sinterestinasubsidiarythatdonotresultinalossofcontrolareaccountedforastransactionswithownersintheircapacityasownersandthereforenoadjustmentsaremadetogoodwillandnogainorlossisrecognisedinprofitorloss.Adjustmentstonon-controllinginterestsarisingfromtransactionsthatdonotinvolvethelossofcontrolarebasedonaproportionateamountofthenetassetsofthesubsidiary.





(ii) Subsidiaries

SubsidiariesareentitiescontrolledbytheGroup.TheGroupcontrolsanentitywhenitisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthesereturnsthroughitspowerovertheentity.Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.

TheaccountingpoliciesofsubsidiarieshavebeenchangedwhennecessarytoalignthemwiththepoliciesadoptedbytheGroup.Lossesapplicabletothenon-controllinginterestsinasubsidiaryareallocatedtothenon-controllinginterestsevenifdoingsocausesthenon-controllingintereststohaveadeficitbalance.

(iii) Lossofcontrol

Uponthelossofcontrol,theGroupderecognisestheassetsandliabilitiesofthesubsidiary,anynon-controllinginterestsandtheothercomponentsofequityrelatedtothesubsidiary.Anysurplusordeficitarisingonthelossofcontrolisrecognisedinprofitorloss.IftheGroupretainsanyinterestintheprevioussubsidiary,thensuchinterestismeasuredatfairvalueatthedatethatcontrolislost.Subsequently,itisaccountedforasanequity-accountedinvesteeorasanavailable-for-salefinancialassetdependingonthelevelofinfluenceretained.

(iv) Investmentinassociates(equity-accountedinvestees)

AssociatesarethoseentitiesinwhichtheGrouphassignificantinfluence,butnotcontrolorjointcontrol,overthefinancialandoperatingpoliciesoftheseentities.SignificantinfluenceispresumedtoexistwhentheGroupholds20%ormoreofthevotingpowerofanotherentity.

Investmentsinassociatesareaccountedforusingtheequitymethod.Theyarerecognisedinitiallyatcost,whichincludes transaction costs. Subsequent to initial recognition, the consolidated financial statements include theGroup’sshareoftheprofitorlossandothercomprehensiveincome(“OCI”)oftheequity-accountedinvestees,afteradjustmentstoaligntheaccountingpolicieswiththoseoftheGroup,fromthedatethatsignificantinfluenceorjointcontrolcommencesuntilthedatethatsignificantinfluenceorjointcontrolceases.

WhentheGroup’sshareoflossesexceedsitsinterestinanequity-accountedinvestee,thecarryingamountoftheinvestment,togetherwithanylong-termintereststhatformpartthereof,isreducedtozero,andtherecognitionoffurtherlossesisdiscontinuedexcepttotheextentthattheGrouphasanobligationtofundtheinvestee’soperationsorhasmadepaymentsonbehalfoftheinvestee.

The carrying amount of goodwill is included in the carrying amount of investment, and an impairment loss onsuchaninvestmentisnotallocatedtoanyasset,includinggoodwill,thatformpartofthecarryingamountoftheassociates.





(v) Transactionseliminatedonconsolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-grouptransactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising fromtransactionswithequity-accounted investeesareeliminatedagainst the investmenttotheextentof theGroup’sinterestintheinvestee.Unrealisedlossesareeliminatedinthesamewayasunrealisedgains,butonlytotheextentthatthereisnoevidenceofimpairment.

(vi) Subsidiariesandassociatesintheseparatefinancialstatements

InvestmentsinsubsidiariesandassociatesarestatedintheCompany’sstatementoffinancialpositionatcostlessaccumulatedimpairmentlosses.

3.2 Foreigncurrency

(i) Foreigncurrencytransactions

Transactions in foreign currencies are translated to the respective functional currencies of Group entities atexchangeratesatthedatesofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthereportingdatearetranslatedtothefunctionalcurrencyattheexchangerateatthatdate.

The foreigncurrencygainor lossonmonetary items is thedifferencebetweenamortisedcost in the functionalcurrencyatthebeginningoftheyear,adjustedforeffectiveinterestandpaymentsduringtheyear,andtheamortisedcostinforeigncurrencytranslatedattheexchangerateattheendoftheyear.

Non-monetaryassetsandliabilitiesdenominatedinforeigncurrenciesthataremeasuredatfairvaluearetranslatedtothefunctionalcurrencyattheexchangerateatthedatethatthefairvaluewasdetermined.Non-monetaryitemsinaforeigncurrencythataremeasuredintermsofhistoricalcostaretranslatedusingtheexchangerateatthedateofthetransaction.Foreigncurrencydifferencesarisingontranslationarerecognisedinprofitorloss.

(ii) Foreignoperations

Theassetsandliabilitiesofforeignoperations,excludinggoodwillandfairvalueadjustmentsarisingonacquisition,aretranslatedtoSingaporedollarsatexchangeratesatthereportingdate.Theincomeandexpensesofforeignoperationsare translated toSingaporedollarsatexchangeratesat thedatesof the transactions.Goodwillandfairvalueadjustmentsarisingontheacquisitionofaforeignoperationonorafter1January2005aretreatedasassetsandliabilitiesoftheforeignoperationandaretranslatedattheexchangeratesatthereportingdate.Foracquisitionspriorto1January2005,theexchangeratesatthedateofacquisitionwereused.




3.2 Foreigncurrency(cont’d)

(ii) Foreignoperations(cont’d)

Foreigncurrencydifferencesarerecognisedinothercomprehensiveincome,andpresentedintheforeigncurrencytranslation reserve (translation reserve) in equity. However, if the foreign operation is a non-wholly-ownedsubsidiary,thentherelevantproportionateshareofthetranslationdifferenceisallocatedtothenon-controllinginterests.Whenaforeignoperationisdisposedofsuchthatcontrol,significantinfluenceorjointcontrolislost,thecumulativeamountinthetranslationreserverelatedtothatforeignoperationisreclassifiedtoprofitorlossaspartofthegainorlossondisposal.WhentheGroupdisposesofonlypartofitsinterestinasubsidiarythatincludesaforeignoperationwhileretainingcontrol,therelevantproportionofthecumulativeamountisreattributedtonon-controllinginterests.WhentheGroupdisposesofonlypartofitsinvestmentinanassociatethatincludesaforeignoperationwhileretainingsignificantinfluence,therelevantproportionofthecumulativeamountisreclassifiedtoprofitorloss.

Whenthesettlementofamonetaryitemreceivablefromorpayabletoaforeignoperationisneitherplannednorlikely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item that areconsideredtoformpartofanetinvestmentinaforeignoperationarerecognisedinothercomprehensiveincome,andarepresentedinthetranslationreserveinequity.

3.3 Property,plantandequipment

(i) Recognitionandmeasurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulatedimpairmentlosses.

Costincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheasset.Thecostofself-constructedassetsincludes:

• thecostofmaterialsanddirectlabour;

• anyothercostsdirectlyattributabletobringingtheassetstoaworkingconditionfortheirintendeduse;

• when the Group has an obligation to remove the asset or restore the site, an estimate of the costs ofdismantlingandremovingtheitemsandrestoringthesiteonwhichtheyarelocated;and

• capitalisedborrowingcosts.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of thatequipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for asseparateitems(majorcomponents)ofproperty,plantandequipment.

Thegainorlossondisposalofanitemofproperty,plantandequipment(calculatedasthedifferencebetweenthenetproceedsfromdisposalandthecarryingamountoftheitem)isrecognisedinprofitorloss.




3.3 Property,plantandequipment(cont’d)

(ii) Subsequentcosts

Thecostofreplacingacomponentofanitemofproperty,plantandequipmentisrecognisedinthecarryingamountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthecomponentwillflowtotheGroup,anditscostcanbemeasuredreliably.Thecarryingamountofthereplacedcomponentisderecognised.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedinprofitorlossasincurred.

(iii) Depreciation

Depreciationisbasedonthecostofanassetlessitsresidualvalue.Significantcomponentsofindividualassetsareassessedandifacomponenthasausefullifethatisdifferentfromtheremainderofthatasset,thatcomponentisdepreciatedseparately.

Depreciationisrecognisedasanexpenseinprofitorlossonastraight-linebasisovertheestimatedusefullivesofeachcomponentofanitemofproperty,plantandequipment,unlessitisincludedinthecarryingamountofanotherasset.LeasedassetsaredepreciatedovertheshorteroftheleasetermandtheirusefullivesunlessitisreasonablycertainthattheGroupwillobtainownershipbytheendoftheleaseterm.

Depreciationisrecognisedfromthedatethattheproperty,plantandequipmentareinstalledandarereadyforuse,orinrespectofinternallyconstructedassets,fromthedatethattheassetiscompletedandreadyforuse.Assetsunderconstructionarenotdepreciated.

Theestimatedusefullivesforthecurrentandcomparativeyearsareasfollows:

• Leaseholdland Theremainingusefullivesoflandlease

• Leaseholdproperties 99years

• Golfclubandhotelbuildings,improvements 50years andrenovation

• Golfcourserenovationandoperating 5to15years equipment

• Hotelandotheroperatingequipment, 3to15years officeequipmentandfurnitureandfittings

• Motorvehiclesandvessels 5to15years

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period andadjusted,ifappropriate.




3.3 Property,plantandequipment(cont’d)

(iv) Reclassificationfromdevelopmentproperties

Whentheuseofapropertychanges fromdevelopmentwithaviewtosell toowner-occupation, theproperty istransferredfromdevelopmentproperties(note3.7)toproperty,plantandequipment.

3.4 Investmentproperty

Investmentpropertyispropertyheldeithertoearnrentalincomeorforcapitalappreciationorforboth,butnotforsaleintheordinarycourseofbusiness,useintheproductionorsupplyofgoodsorservicesorforadministrativepurposes.Investment property is measured at cost on initial recognition and subsequently at fair value with any change thereinrecognisedinprofitorloss.

Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructedinvestmentpropertyincludesthecostofmaterialsanddirectlabour,anyothercostsdirectlyattributabletobringingtheinvestmentpropertytoaworkingconditionforitsintendeduseandcapitalisedborrowingcosts.

Anygainorlossondisposalofaninvestmentproperty(calculatedasthedifferencebetweenthenetproceedsfromdisposaland thecarryingamountof the item) is recognised inprofitor loss.Whenan investmentproperty thatwaspreviouslyclassifiedasproperty,plantandequipmentissold,anyrelatedamountincludedintherevaluationreserveistransferredtoretainedearnings.

Whentheuseofapropertychangessuchthatitisreclassifiedasproperty,plantandequipment,itsfairvalueatthedateofreclassificationbecomesitscostforsubsequentaccounting.

3.5 Financialinstruments

(i) Non-derivativefinancialassets

TheGroupinitiallyrecognisesloansandreceivablesonthedatethattheyareoriginated.Allotherfinancialassets(includingassetsdesignatedatfairvaluethroughprofitorloss)arerecognisedinitiallyonthetradedate,whichisthedatethattheGroupbecomesapartytothecontractualprovisionsoftheinstrument.

TheGroupderecognisesafinancialassetwhenthecontractualrightstothecashflowsfromtheassetexpire,orittransferstherightstoreceivethecontractualcashflowsonthefinancialassetinatransactioninwhichsubstantiallyall therisksandrewardsofownershipof the financialassetare transferred,or itneither transfersnorretainssubstantiallyalloftherisksandrewardsofownershipanddoesnotretaincontroloverthetransferredasset.AnyinterestintransferredfinancialassetsthatiscreatedorretainedbytheGroupisrecognisedasaseparateassetorliability.

Financialassetsandliabilitiesareoffsetandthenetamountpresentedinthestatementoffinancialpositionwhen,andonlywhen,theGrouphasalegalenforceablerighttooffsettheamountsandintendseithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

TheGroupclassifiesnon-derivativefinancialassetsintotheloansandreceivablescategory.




3.5 Financialinstruments(cont’d)

(i) Non-derivativefinancialassets(cont’d)

Loansandreceivables

Loansandreceivablesarefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Suchassetsarerecognisedinitiallyatfairvalueplusanydirectlyattributabletransactioncosts.Subsequenttoinitialrecognition,loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethod,lessanyimpairmentlosses.

Loansandreceivablescomprisecashandcashequivalents,tradeandotherreceivables,andamountsduefromrelatedparties.

Cashandcashequivalentscomprisecashbalancesandshort-termdeposits.Forthepurposeofthestatementofcashflows,pledgeddepositsareexcludedfromcashandcashequivalents.

(ii) Non-derivativefinancialliabilities

TheGroupinitiallyrecognisesdebtsecuritiesissuedandsubordinatedliabilitiesonthedatethattheyareoriginated.Financialliabilitiesforcontingentconsiderationpayableinabusinesscombinationarerecognisedatthedateofacquisition. All other financial liabilities (including liabilities designated at fair value through profit or loss) arerecognisedinitiallyonthetradedate,whichisthedatethattheGroupbecomesapartytothecontractualprovisionsoftheinstrument.

TheGroupderecognisesafinancialliabilitywhenitscontractualobligationsaredischarged,cancelledorexpire.

Financialassetsandliabilitiesareoffsetandthenetamountpresentedinthestatementoffinancialpositionwhen,andonlywhen,theGroupcurrentlyhasalegallyenforceablerighttooffsettheamountsandintendseithertosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

TheGroupclassifiesnon-derivativefinancial liabilities intotheotherfinancial liabilitiescategory.Suchfinancialliabilitiesareinitiallymeasuredatfairvaluelessanydirectlyattributabletransactioncosts.Subsequenttoinitialrecognition,thesefinancialliabilitiesaremeasuredatamortisedcostusingtheeffectiveinterestmethod.

Otherfinancialliabilitiescompriseloansandborrowings,tradeandotherpayables,andamountsduetorelatedparties.




3.5 Financialinstruments(cont’d)

(iii) Sharecapital

Ordinaryshares

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofordinarysharesarerecognisedasadeductionfromequity,netofanytaxeffects.

Preferencesharecapital

Preferencesharecapitalisclassifiedasequityifitisnon-redeemable,orredeemableonlyattheCompany’soption,andanydividendsarediscretionary.DiscretionarydividendsthereonarerecognisedasdistributionswithinequityuponapprovalbytheCompany’sshareholders.

Preferencesharecapitalisclassifiedasafinancialliabilityifitisredeemableonaspecificdateorattheoptionoftheshareholders,orifdividendpaymentsarenotdiscretionary.Non-discretionarydividendsthereonarerecognisedasinterestexpenseinprofitorlossasaccrued.

Repurchase,disposalandreissueofsharecapital(treasuryshares)

When share capital recognised as equity is repurchased, the amount of the consideration paid, which includesdirectlyattributablecosts,netofanytaxeffects,isrecognisedasadeductionfromequity.Repurchasedsharesareclassifiedastreasurysharesandarepresentedinthereserveforownshareaccount.Whentreasurysharesaresoldorreissuedsubsequently,theamountreceivedisrecognisedasanincreaseinequity,andtheresultingsurplusordeficitonthetransactionispresentedinnon-distributablecapitalreserve.

(iv) Derivativefinancialinstruments

TheGroupholdsderivativefinancialinstruments,mainlyforwardexchangecontracts,tohedgeitsrisksassociatedwithfluctuationsinforeigncurrencyrates.Derivativefinancialinstrumentsarenotusedfortradingpurposes.

Derivativefinancialinstrumentsarerecognisedinitiallyatfairvalue;attributabletransactioncostsarerecognisedinprofitorlossasincurred.Subsequenttoinitialrecognition,derivativesaremeasuredatfairvalueandallchangesinitsfairvaluearerecognisedimmediatelyinprofitorloss.

(v) Intra-groupfinancialguaranteesintheseparatefinancialstatements

FinancialguaranteesarefinancialinstrumentsissuedbytheCompanythatrequiretheissuertomakespecifiedpaymentstoreimbursetheholderforthelossitincursbecauseaspecifieddebtorfailstomeetpaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.

Financial guarantees are initially measured at fair value and are classified as financial liabilities. Subsequentto initialmeasurement,thefinancialguaranteesarestatedatthehigheroftheinitialfairvaluelesscumulativeamortisationandtheamountthatwouldberecognisediftheywereaccountedforascontingentliabilities.Whenfinancialguaranteesareterminatedbeforetheiroriginalexpirydate,thecarryingamountofthefinancialguaranteeistransferredtoprofitorloss.




3.6 Impairment

(i) Non-derivativefinancialassets

Afinancialassetnotcarriedatfairvaluethroughprofitorloss,includinganinterestinanassociate,isassessedattheendofeachreportingperiodtodeterminewhetherthereisobjectiveevidencethatitisimpaired.Afinancialassetisimpairedifobjectiveevidenceindicatesthatalossevent(s)hasoccurredaftertheinitialrecognitionoftheasset,andthatthelossevent(s)hasanimpactontheestimatedfuturecashflowsofthatassetthatcanbeestimatedreliably.

Objectiveevidencethatfinancialassets(includingequitysecurities)areimpairedcanincludedefaultordelinquencybyadebtor,restructuringofanamountduetotheGroupontermsthattheGroupwouldnotconsiderotherwise,indicationsthatadebtororissuerwillenterbankruptcy,adversechangesinthepaymentstatusofborrowersorissuersoreconomicconditionsthatcorrelatewithdefaultsorthedisappearanceofanactivemarketforasecurity.Inaddition,foraninvestmentinanequitysecurity,asignificantorprolongeddeclineinitsfairvaluebelowitscostisobjectiveevidenceofimpairment.

Loansandreceivables

TheGroupconsidersevidenceofimpairmentforloansandreceivablesatbothaspecificassetandcollectivelevel.All individuallysignificantloansandreceivablesareassessedforspecificimpairment.All individuallysignificantreceivablesfoundnottobespecificallyimpairedarethencollectivelyassessedforanyimpairmentthathasbeenincurredbutnotyetidentified.Loansandreceivablesthatarenotindividuallysignificantarecollectivelyassessedforimpairmentbygroupingtogetherloansandreceivableswithsimilarriskcharacteristics.

In assessing collective impairment, the Group uses historical trends of the probability of default, the timing ofrecoveriesandtheamountoflossincurred,adjustedformanagement’sjudgementastowhethercurrenteconomicandcreditconditionsaresuchthattheactuallossesarelikelytobegreaterorlessthansuggestedbyhistoricaltrends.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the differencebetweenitscarryingamountandthepresentvalueoftheestimatedfuturecashflows,discountedattheasset’soriginaleffectiveinterestrate.Lossesarerecognisedinprofitorlossandreflectedinanallowanceaccountagainstloansandreceivables.Interestontheimpairedassetcontinuestoberecognised.WhentheGroupconsidersthatthereareno realisticprospectsof recoveryof theasset, the relevantamountsarewrittenoff. If theamountofimpairmentlosssubsequentlydecreasesandthedecreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thenthepreviouslyrecognisedimpairmentlossisreversedthroughprofitorloss.




3.6 Impairment(cont’d)

(ii) Non-financialassets

ThecarryingamountoftheGroup’snon-financialassets,otherthaninvestmentproperty,developmentproperties,inventoriesanddeferredtaxassets,arereviewedateachreportingdatetodeterminewhetherthereisanyindicationof impairment. Ifanysuchindicationexists,thentheasset’srecoverableamount isestimated.Forgoodwillandintangibleassetsthathaveindefiniteusefullivesorthatarenotyetavailableforuse,therecoverableamountisestimatedeachyearatthesametime.Animpairmentlossisrecognisedifthecarryingamountofanassetoritsrelatedcash-generatingunit(“CGU”)exceedsitsestimatedrecoverableamount.

TherecoverableamountofanassetorCGUisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheassetorCGU.Forthepurposeofimpairmenttesting,assetsthatcannotbetestedindividuallyaregroupedtogetherinto thesmallestgroupofassets thatgeneratescash inflows fromcontinuinguse thatare largely independentof the cash inflows of other assets or CGUs. Subject to an operating segment ceiling test, for the purposes ofgoodwillimpairmenttesting,CGUstowhichgoodwillhasbeenallocatedareaggregatedsothatthelevelatwhichimpairment testing is performed reflects the lowest level at which goodwill is monitored for internal reportingpurposes.GoodwillacquiredinabusinesscombinationisallocatedtogroupsofCGUsthatareexpectedtobenefitfromthesynergiesofthecombination.

The Group’s corporate assets do not generate separate cash inflows and are utilised by more than one CGU.CorporateassetsareallocatedtoCGUsonareasonableandconsistentbasisandtestedforimpairmentaspartofthetestingoftheCGUtowhichthecorporateassetisallocated.

Impairmentlossesarerecognisedinprofitorloss.ImpairmentlossesrecognisedinrespectofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheCGU(groupofCGUs),andthentoreducethecarryingamountsoftheotherassetsintheCGU(groupofCGUs)onaproratabasis.

Animpairmentlossinrespectofgoodwillisnotreversed.Inrespectofotherassets,impairmentlossesrecognisedinpriorperiodsareassessedateachreportingdateforanyindicationsthatthelosshasdecreasedornolongerexists.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.

Goodwillthatformspartofthecarryingamountofaninvestmentinanassociateisnotrecognisedseparately,andthereforeisnottestedforimpairmentseparately.Instead,theentireamountoftheinvestmentinanassociateistestedforimpairmentasasingleassetwhenthereisobjectiveevidencethattheinvestmentinanassociatemaybeimpaired.

Investmentinsubsidiariesandanassociate

ThecarryingamountsoftheCompany’sinvestmentinsubsidiariesandanassociatearereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment. Animpairmentlossinrespectofasubsidiaryoranassociateismeasuredbycomparingtherecoverableamountoftheinvestmentwithitscarryingamountinaccordancewithnote3.6(ii).Animpairmentlossisrecognisedinprofitorloss.Animpairmentlossisreversediftherehasbeenafavourablechangeintheestimatesusedtodeterminetherecoverableamount.




3.7 Developmentproperties

Propertiesinthecourseofdevelopment(unsoldunits)/Propertiesfordevelopment

Development properties are measured at the lower of cost and net realisable value. Cost includes acquisition costs,developmentexpenditure,capitalisedborrowingcostsandothercostsdirectlyattributabletothedevelopmentactivities.

Borrowingcoststhataredirectlyattributabletotheacquisitionanddevelopmentofthedevelopmentpropertyarecapitalisedaspartofdevelopmentpropertyduringtheperiodofdevelopment.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lessestimatedcostsofcompletionandsellingexpenses.Thewrite-downstonetrealisablevaluearepresentedasallowanceforforeseeablelosses.

Contractcosts

CommissioncostsarecapitalisediftheyareincurredtoobtainacontractwithacustomerthattheGroupwouldnothaveincurredifthecontracthadnotbeenobtained,andthecostsareexpectedtoberecoverable.

Coststofulfilacontractarecapitalisedifthecostsrelatedirectlytothecontract,generateorenhanceresourcesusedinsatisfyingthecontractandareexpectedtoberecovered.

Subsequentmeasurement

Subsequenttoinitialmeasurement,contractcostsareamortisedtoprofitorlossusingthesamemeasureofprogressastherelatedcontractrevenue.

TheGrouprecognisesanimpairmentlossinprofitorlosstotheextentthatthecarryingamountofthecontractcostsexceeds:

• theremainingamountofconsiderationthattheGroupexpectstoreceiveforthesoldunits;less

• theestimatedcostsofcompletionthathavenotbeenrecognisedasexpenses.

Animpairmentlossisreversediftheconditionsnolongerexistorhaveimproved.

Soldunits

Theamountrepresentstheunbilledamountexpectedtobecollectedfromcustomersforworkperformedtodate.Theaggregatedcosts incurredtogetherwithattributableprofitsandnetofprogressbillingsarepresentedasdevelopmentpropertiesinthestatementoffinancialposition.

Ifprogressbillingsexceedcostsincurredplusrecognisedprofits,thebalanceispresentedintradeandotherpayables.Customeradvancesinexcessofprogressbillingsarepresentedintradeandotherpayables.




3.8 Inventories

Inventories comprise principally food and beverages and other hotel related consumable supplies. Inventories aremeasuredat the lowerofcostandnetrealisablevalue.Thecostof inventories isbasedon theweightedaveragecostmethodandincludesexpendituresincurredinacquiringtheinventories,orconversioncostsandothercostsincurredinbringingthemtotheirexistinglocationandcondition.

Netrealisablevaluerepresentstheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcostsofcompletionandestimatedcostsnecessarytomakethesale.

3.9 Leases

LeasesintermsofwhichtheGroupassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Uponinitialrecognition,theleasedasset ismeasuredatanamountequaltothelowerof itsfairvalueandthepresentvalueoftheminimumleasepayments.Subsequenttoinitialrecognition,theassetisaccountedforinaccordancewiththeaccountingpolicyapplicabletothatasset.

OtherleasesareoperatingleasesandarenotrecognisedintheGroup’sstatementoffinancialposition.

WhenentitieswithintheGrouparelessorofanoperatinglease

TheGroupleasesoutcertaininvestmentpropertiestothirdparties.

Rentalincomefromoperatingleases(netofanyincentivesgiventolessees)isrecognisedonastraight-linebasisovertheleaseterm.Leaseincentivesgrantedarerecognisedasanintegralpartofthetotalrentalincome,overthetermofthelease.

InitialdirectcostsincurredbytheGroupinnegotiatingandarranginganoperatingleaseareaddedtothecarryingamountof theleasedassetandrecognisedasanexpense inprofitor lossovertheleasetermonthesamebasisastheleaseincome.

WhenentitieswithintheGrouparelesseesofanoperatinglease

TheGroupleasescertainproperty,plantandequipmentfromthirdparties.

Leasesofproperty,plantandequipmentwhereasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)aretakentoprofitorlossonastraight-linebasisoverthetermofthelease.

Whenanoperatingleaseisterminatedbeforetheleaseperiodhasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedasanexpenseinthefinancialyearinwhichterminationtakesplace.




3.10 Employmentbenefits

(i) Definedcontributionplans

Adefinedcontributionplanisapost-employmentbenefitplanunderwhichanentitypaysfixedcontributionsintoaseparateentityandwillhavenolegalorconstructiveobligationtopayfurtheramounts.Obligationsforcontributionstodefinedcontributionpensionplansarerecognisedasanemployeebenefitexpenseinprofitorlossintheperiodsduringwhichrelatedservicesarerenderedbyemployees.

(ii) Short-termemployeebenefits

Short-termemployeebenefitobligationsaremeasuredonanundiscountedbasisandareexpensedastherelatedserviceisprovided.

Aliabilityisrecognisedfortheamountexpectedtobepaidundershort-termcashbonusorprofit-sharingplansiftheGrouphasapresentlegalorconstructiveobligationtopaythisamountasaresultofpastserviceprovidedbytheemployee,andtheobligationcanbeestimatedreliably.

3.11 Provisions

Aprovisionisrecognisedif,asaresultofapastevent,theGrouphasapresentlegalorconstructiveobligationthatcanbeestimatedreliably,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation.Provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsatapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheliability.Theunwindingofthediscountisrecognisedasfinancecost.

3.12 Revenuerecognition

Revenueismeasuredbasedontheconsiderationspecifiedinacontractwithacustomerandexcludesamountscollectedonbehalfofthirdparties.TheGrouprecognisesrevenuewhenittransferscontroloveraproductofservicetoacustomer.

ThefollowingisadescriptionofprincipalactivitiesseparatedbyreportablesegmentsfromwhichtheGroupgeneratesitsrevenue.Formoredetailedinformationaboutreportablesegments,seenote25.

Propertysegment

(i) Saleofdevelopmentproperties

Revenueisrecognisedwhencontroloverthepropertyhasbeentransferredtothecustomer.ThepropertieshavegenerallynoalternativeusefortheGroupduetocontractualrestrictions.

FordevelopmentpropertieswherebytheGrouphasanenforceablerighttopaymentforperformancecompletedtodate,revenueisrecognisedbasedonthepercentageofcompletionofconstruction.FordevelopmentpropertyinSingapore,thepercentageofcompletionismeasuredbyreferencetothequantitysurveyor/architect’scertificateof the estimated construction costs incurred to-date to the estimated total construction cost. For developmentpropertyinMalaysia,thepercentageofcompletionismeasuredbyreferencetotheconstructioncostsincurredto-datetotheestimatedtotalconstructioncosts.Profitsarerecognisedonlyinrespectoffinalisedsalescontractstotheextentthatsuchprofitsrelatetotheprogressoftheconstructionwork.




3.12 Revenuerecognition(cont’d)

(i) Saleofdevelopmentproperties(cont’d)

FordevelopmentpropertieswherebytheGrouphasnoenforceablerighttopaymentuntillegaltitlehaspassedtothecustomer,revenueisrecognisedwhenthelegaltitlehasbeentransferredtothecustomer.

Therevenueismeasuredatthetransactionpriceagreedunderthecontract.Progressbillingstothecustomerarebasedonapaymentscheduleinthecontractandaretypicallytriggereduponachievementofspecifiedconstructionmilestones.Whentheperiodbetweentherecognitionofrevenueandpaymentbythecustomerexceedsoneyear,anadjustmentismadetothetransactionpriceforthetimevalueofmoney.

Critical judgements in identifying performance obligations and measuring progress

Underthetermsofthecontract,theGroupcontractedwiththecustomertodeliveraspecifiedbuildingunittothecustomerinaccordancewiththeplansandspecificationssetoutinthecontract.Thecontractincludesthespecifiedbuildingunitandanundividedshareinthelandandthecommonproperty.Theanalysisofwhetherthecontractcomprisesoneormoreperformanceobligations,themethodusedtomeasureprogressforrevenuerecognitionandtheamountstobe includedasfulfilmentcost forcalculatingthepercentageofcompletionrepresentareasrequiringcriticaljudgementbytheGroup.

Hospitalitysegment

(ii) Renderingofservices–hotelincome

Revenuefromoperationsofahotel isrecognisedintheaccountingperiodinwhichtheaccommodationandtherelatedservicesarerendered.

TheGroupsellshotelpackagestocustomerswhichincludehotelstay,breakfast,spaservices,golfclubservices,amongstothers.Thehotelpackagesofferedcombinedistinctgoodsandservicesandarethereforeaccountedforas separate performance obligations. In this case, the transaction price will be allocated to each performanceobligationbasedonthestand-alonesellingprices.Paymentofthetransactionpriceisdueimmediatelywhenthecustomerpurchasesthehotelpackage.

(iii) Renderingofservices–golfclubrelatedincome

TheGroupprovidesannualgolfclubmembershipsandgolfclubmembershipsforatermuntil2055.Customersarerequiredtopayanup-frontcashpaymentuponsigningofthecontracts.Golfclubmembershipfeesarerecognisedon a straight-line basis over the membership term. Deferred income is recognised for the fees relating to theunexpiredtermsofthememberships.

Forthegolfclubmembershipsforatermuntil2055,thereisanelementoffinancingasthetermofthemembershipexceedsoneyear.Consequently,theGroupadjuststhetransactionpricesforthetimevalueofmoney.Thefinancingcomponentisrecognisedasinterestexpenseandispresentedseparatelyfromrevenuefromcustomers.

Monthlysubscriptionfeesarerecognisedwhentheservicesarerendered.Themonthlysubscriptionfeesarebilledandpaidonamonthlybasis.




3.12 Revenuerecognition(cont’d)

(iii) Renderingofservices–golfclubrelatedincome(cont’d)

Feeschargedfortheuseofthemarinaclubandgolfcoursefacilitiesarerecognisedintheaccountingperiodinwhichtheservicesarerendered.Paymentofthetransactionpriceisdueimmediatelywhenthecustomerpurchasestheservices.

(iv) Saleofgoods

TheGroupsellsfoodandbeverages,souvenirsandotherproductsaspartofitshospitalitybusiness.RevenuefromthesaleofgoodsisrecognisedatthepointofsalewhichcoincideswithwhentheGrouptransferstheproducttothecustomer.Paymentofthetransactionpriceisdueimmediatelywhenthecustomerpurchasesthegoods.

3.13 Financeincomeandfinancecosts

Finance income comprises interest income and changes in the fair value of financial derivatives. Interest income isrecognisedasitaccruesinprofitorloss,usingtheeffectiveinterestmethod.

Finance costs comprise interest expense on borrowings, amortisation of transaction costs capitalised previously andchangesinthefairvalueoffinancialderivatives.

Borrowingcoststhatarenotdirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarerecognisedinprofitorlossusingtheeffectiveinterestmethod.

Foreigncurrencygainsandlossesonfinancialassetsandfinancialliabilitiesarereportedonanetbasisaseitherfinanceincomeorfinanceexpensedependingonwhetherforeigncurrencymovementsareinanetgainornetlossposition.

3.14 Tax

Taxexpensecomprisescurrentanddeferredtax.Currenttaxanddeferredtaxisrecognisedinprofitorlossexcepttotheextentthatitrelatestoabusinesscombination,oritemsrecogniseddirectlyinequityorinothercomprehensiveincome.

Currenttaxistheexpectedtaxpayableorreceivableonthetaxableincomeorlossfortheyear,usingtaxratesenactedorsubstantivelyenactedatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.Theamountofcurrenttaxpayableorreceivableisthebestestimateofthetaxamountexpectedtobepaidorreceivedthatreflectsuncertaintyrelatedtoincometaxes,ifany.

Deferredtaxisrecognisedinrespectoftemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Deferredtaxisnotrecognisedfor:

• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a businesscombinationandthataffectsneitheraccountingnortaxableprofitorloss;and

• temporarydifferencesrelatedto investments insubsidiariesandassociatestotheextentthattheGroupisabletocontrolthetimingofthereversalofthetemporarydifferenceanditisprobablethattheywillnotreverseintheforeseeablefuture.




3.14 Tax(cont’d)

The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the Groupexpects,atthereportingdate,torecoverorsettlethecarryingamountofitsassetsandliabilities.Forinvestmentpropertythat ismeasuredat fairvalue, thepresumption that thecarryingamountof the investmentpropertywillberecoveredthroughsalehasnotbeenrebutted.Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedtotemporarydifferenceswhentheyreverse,basedonthelawsthathavebeenenactedorsubstantivelyenactedatthereportingdate.

Deferredtaxassetsandliabilitiesareoffsetifthereisalegallyenforceablerighttooffsetcurrenttaxliabilitiesandassets,andtheyrelatetotaxesleviedbythesametaxauthorityonthesametaxableentity,orondifferenttaxentities,buttheyintendtosettlecurrenttaxliabilitiesandassetsonanetbasisortheirtaxassetsandliabilitieswillberealisedsimultaneously.

Adeferredtaxassetisrecognisedforunusedtaxlosses,taxcreditsanddeductibletemporarydifferences,totheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheycanbeutilised.Deferredtaxassetsarereviewedateachreportingdateandarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.

Indeterminingtheamountofcurrentanddeferredtax,theGrouptakesintoaccounttheimpactofuncertaintaxpositionsandwhetheradditionaltaxesandinterestmaybedue.TheGroupbelievesthatitsaccrualsfortaxliabilitiesareadequateforallopentaxyearsbasedonitsassessmentofmanyfactors,includinginterpretationsoftaxlawandpriorexperience.Thisassessmentreliesonestimatesandassumptionsandmayinvolveaseriesofjudgementsaboutfutureevents.NewinformationmaybecomeavailablethatcausestheGrouptochangeitsjudgementregardingtheadequacyofexistingtaxliabilities;suchchangestotaxliabilitieswillimpacttaxexpenseintheperiodthatsuchadeterminationismade.

3.15 Earningspershare

TheGrouppresentsbasicanddilutedearningspershare (“EPS”)data for itsordinaryshares.BasicEPS iscalculatedbydividingtheprofitor lossattributabletoordinaryshareholdersof theCompanyby theweighted-averagenumberofordinarysharesoutstandingduringtheyear,adjustedforownsharesheld.

DilutedEPSisdeterminedbyadjustingtheprofitorlossattributabletoordinaryshareholdersandtheweightedaveragenumber of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinaryshares.

3.16 Segmentreporting

AnoperatingsegmentisacomponentoftheGroupthatengagesinbusinessactivitiesfromwhichitmayearnrevenuesandincurexpenses,includingrevenuesandexpensesthatrelatetotransactionswithanyoftheGroup’sothercomponents.Alloperatingsegments’operatingresultsarereviewedregularlybythemanagementoftheCompanytomakedecisionsaboutresourcestobeallocatedtothesegmentandassessitsperformance,andforwhichdiscretefinancialinformationisavailable.

Segmentresultsthatarereportedtothemanagementincludeitemsdirectlyattributabletoasegmentaswellasthosethatcanbeallocatedonareasonablebasis.Unallocateditemscomprisemainlycorporateassets(primarilytheCompany’sheadquarters),headofficeexpenses,andtaxassetsandliabilities.

Segmentcapitalexpenditureisthetotalcostincurredduringtheyeartoacquireproperty,plantandequipment.



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4. Property,plantandequipment(cont’d)

Leaseholdproperties

Officeequipment

andfurnitureandfittings

Motorvehicles

Assetsunderconstruction Total

$’000 $’000 $’000 $’000 $’000

CompanyCostAt1January2016 – 277 653 – 930Additions – 59 – 21,046 21,105Disposals – (4) – – (4)At31December2016 – 332 653 21,046 22,031Additions – 354 – 8,391 8,745Reclassification 29,437 – – (29,437) –Disposals – (56) – – (56)At31December2017 29,437 630 653 – 30,720

AccumulateddepreciationAt1January2016 – 72 76 – 148Depreciationcharge – 66 131 – 197Disposals – (3) – – (3)At31December2016 – 135 207 – 342Depreciationcharge 230 91 131 – 452Disposals – (36) – – (36)At31December2017 230 190 338 – 758

CarryingamountsAt1January2016 – 205 577 – 782At31December2016 – 197 446 21,046 21,689At31December2017 29,207 440 315 – 29,962



4. Property,plantandequipment(cont’d)

Impairmentlosses

TheGroupreviewsthecarryingamountsoftheassetsasateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountorvalueinuseisestimated.Determiningthevalueinuseofproperty,plantandequipmentandotherlong-livedassets,whichrequirethedeterminationoffuturecashflowsexpectedtobegeneratedfromthecontinueduseandultimatedispositionofsuchassets,requiretheGrouptomakeestimatesandassumptionsthatcanmateriallyaffectthefinancialstatements.AnyresultingimpairmentlossescouldhaveamaterialadverseimpactontheGroup’sfinancialconditionandresultsofoperations.

Assetsheldunderfinancelease

Thecarryingamountsofproperty,plantandequipmentunderfinanceleaseisasfollows:

Group2017 2016$’000 $’000

Motorvehicles 679 507Officeequipment 619 750

1,298 1,257

Leaseholdland

At31December2017,leaseholdlandoftheGroupwithcarryingamountsof$174,909,000(2016:$174,020,000)representsthelandlocatedinMalaysia.Thelandleasewillexpireon31December2091.

Security

At31December2017,propertiesoftheGroupandCompanywithcarryingamountsof$201,487,000(2016:$184,379,000)and$29,207,000(2016:$21,046,000)respectivelyarepledgedassecuritytosecurebankloans(seenote16).

Reclassificationfromdevelopmentproperties

In2016,developmentpropertieswithcarryingamountsof$21,681,000werereclassifiedtoproperty,plantandequipmentastheunitswillbeusedastheofficeoftheGroup.



5. Investmentproperty

GroupNote 2017 2016

$’000 $’000

At1January 6,158 8,089Changeinfairvalue 20 (431) (2,037)Effectofmovementsinexchangerates (467) 106At31December 5,260 6,158

Investmentpropertycomprisecommercialpropertyleasedtoexternalcustomers,heldforcapitalappreciationandrentalincome.ThepropertyissituatedinJebelAliFreeZoneArea,Dubai.

Changesinfairvaluesarerecognisedasgainsinprofitorlossandincludedin‘othernetincome’.

Fairvaluehierarchy

Thefairvalueofinvestmentpropertywasdeterminedbyanexternal,independentvaluer,havingappropriaterecognisedprofessionalqualificationsandrecentexperienceinthelocationandcategoryofpropertybeingvalued.

Thefairvaluemeasurementforinvestmentpropertyof$5,260,000(2016:$6,158,000)hasbeencategorisedasaLevel3fairvaluebasedontheinputstothevaluationtechniqueused(note2.4).

Level3fairvalue

ThereconciliationfromtheopeningbalancestotheclosingbalancesforLevel3fairvaluesisshownasabove.

Valuationtechniqueandsignificantunobservableinputs

Thefollowingtableshowsthekeyunobservableinputsusedinthevaluationmodels:

ValuationTechniques Significantunobservableinputs

Inter-relationshipbetweenunobservableinputandfairvaluemeasurement

Direct income capitalisation: Thevaluation model is a method used toconvertanestimateofasingleyear’sincome expectancy into an indicationof value. The value of the propertyis derived by dividing a property’snet operating income (“NOI”) by themarket capitalisation rate. NOI isequal to a property’s yearly grossincomelessoperatingexpenses.

• Capitalisationrate:11%(2016:11%-12%)

• Expectedgrossrentalincome:$9-$10 per sq feet (2016:$11-$12persqfeet)

• Expected operating expenses:$3-$4persqfeet(2016:$3-$4persqfeet)

The estimated fair value would increase(decrease)ifthe:• capitalisationrateislower(higher);• expectedgrossrentalincomeishigher

(lower);or• expectedoperatingexpenses is lower

(higher).



6. Subsidiaries

Company2017 2016$’000 $’000

Equityinvestment,atcost 313 260

Detailsofsubsidiariesareasfollows:

NameofSubsidiaries PrincipalactivitiesCountryof

incorporationEffectiveequity

heldbytheGroup2017 2016

% %

GSH(Xiamen)PropertyDevelopmentPteLtd1 Investmentholding Singapore 100 100

GSH(Xi’an)InvestmentsPteLtd1(f.k.aGSH(Xiamen)InvestmentsPteLtd)

Investmentholding Singapore 100 100

GSHPropertiesPteLtd1 Investmentholding Singapore 100 100

GSHProperties(Malaysia)PteLtd1 Investmentholding Singapore 100 100

GSH(Zhengzhou)InvestmentsPteLtd1 Investmentholding Singapore 100 100

BorneoVenturesPteLtd1 Investmentholding Singapore 100 100

OceanViewVenturesPteLtd1 Investmentholding Singapore 100 100

OceanViewPointPteLtd1 Investmentholding Singapore 100 100

PlazaVenturesPteLtd5 Propertydevelopment Singapore – 51.0

MXIMHoldingsPteLtd1 Investmentholding Singapore 79.4 79.4

CityViewVenturesSdnBhd2 Propertydevelopment Malaysia 100 100

MewabumiSdnBhd2 Investmentholding Malaysia 75.0 75.0

LinyiPropertiesSdnBhd2 Propertydevelopment Malaysia 75.0 75.0

XingAsiaImpelSdnBhd2 Investmentholding Malaysia 67.5 67.5

InvestasiaSdnBhd2 Propertydevelopment Malaysia 67.5 67.5

TheSuteraHarbourGroupSdnBhd2 Investmentholding Malaysia 77.5 77.5

SuteraHarbourResortSdnBhd2 Investmentholding Malaysia 77.5 77.5



6. Subsidiaries(cont’d)

NameofSubsidiaries PrincipalactivitiesCountryof



% %

TheLittleShopSdnBhd2 Retailingofclothing,souvenirsandconvenienceitems

Malaysia 77.5 77.5

SuteraHarbourTravelSdnBhd2 Upmarkettrainservices Malaysia 77.5 77.5

SuteraHarbourGolf&CountryClubBerhad2 Operationofa27-holegolfcourseandamarinatogetherwithclubhouseandotherfacilities

Malaysia 77.5 77.5

EastworthSourceSdnBhd2 Hoteloperation Malaysia 77.5 77.5

AdvancedPrestigeSdnBhd2 Hoteloperation Malaysia 77.5 77.5

SuteraYachtServicesSdnBhd2,4 Saleoffuelandotherrelatedbunkeringservices

Malaysia 23.2 23.2

GSH(MiddleEast)PteLtd3 Investmentholding BritishVirginIslands

100 100

GSHInvestmentLimited3 Investmentholding HongKong 100 100

AltheimInternationalLtd3 Investmentholding BritishVirginIsland

75.0 75.0

MainfieldHoldingsLtd3 Investmentholding BritishVirginIsland

67.5 67.5

1 AuditedbyKPMGLLP,Singapore2 AuditedbyKPMG,Malaysia3 Notrequiredtobeauditedinaccordancewiththelawsofcountryofincorporation4 ThecompanyisconsideredasubsidiaryoftheGroupbyvirtueofthemanagementcontroloverfinancialandoperatingpoliciesoftheCompany5 In2017,theGroupdisposedofitssharesofPlazaVenturesPteLtdtoathirdparty(SeeNote31)



7. Associate

Group2017 2016$’000 $’000

Interestinassociate 58,640 –

Detailsofassociateareasfollows:

Nameofassociate PrincipalactivitiesCountryof



% %

河南中原四季水产物流港股份有限公司及其子公司(“HenanZhongyuanGroup”)1

Logisticsandwarehousinghub

People’sRepublicofChina(“PRC”) 30 –

1 AuditedbyHenanZhongcaiDepuCertifiedPublicAccountantsCo.,Ltd

TheGroupperformedapurchasepriceallocationexerciseforitsacquisitionofitsassociate,HenanZhongyuanGroupon28February2017.TheGroup’sshareofnetassetsofHenanZhongyuanGroupwasbasedonthefairvaluesoftheidentifiableassetsandliabilitiesofHenanZhongyuanGroupasat28February2017.

ThefollowingtablesummarisestheconsiderationtransferredandtheproportionateshareofthefairvalueofnetassetsofHenanZhongyuanGroupasattheacquisitiondate:

Group$’000

Totalconsiderationtransferred 40,974Proportionateshareoffairvalueofnetassets (55,319)Negativegoodwill (14,345)

IncludedintheshareofresultsofassociateinthestatementofcomprehensiveincomeisnegativegoodwillarisingfromtheacquisitionofHenanZhongyuanGroupof$14,345,000.

The following summarises the financial information of Henan Zhongyuan Group, based on its (consolidated) financialstatementsprepared inaccordancewithFRS,modified for fairvalueadjustmentsonacquisitionanddifferences in theGroup’saccountingpolicies.



7. Associate(cont’d)

Group$’000

2017Revenue 28,557Profitandtotalcomprehensiveincome 9,940Group’sshareoftotalcomprehensiveincome 2,982Add:Negativegoodwill 14,345Group’sshareoftotalcomprehensiveincome,includingnegativegoodwill 17,327

Non-currentasset 185,341Currentasset 24,574Non-currentliabilities (10,538)Currentliabilities (3,911)Netassets 195,466

Group’sinterestinnetassetsofinvesteeatacquisitiondateGroup’scontributionduringtheyear 40,974Group’sshareoftotalcomprehensiveincome,includingnegativegoodwill 17,327Exchangedifference 339Carryingamountofinterestininvesteeatendoftheyear 58,640

Measurementoffairvalues

TheGrouphasengagedanindependentpropertyvaluertoassessthefairvalueofinvestmentproperties(includinglanduserights),andanexternalexperttoappraisetheidentifiableassetsacquiredandliabilitiesassumedatthedateofacquisition.

Thevaluationtechniquesusedformeasuringthefairvalueofmaterialassetsacquiredwereasfollows:

Assetsrequired ValuationTechniques Keyassumptions

Investmentproperty(includinglanduserights)

Market comparison technique and cost technique:The valuation model considers quotedmarket prices for similar items whenthey are available, and depreciatedreplacement cost when appropriate.Depreciated replacement cost reflectsadjustmentsfordeteriorationaswellasfunctionalandeconomicobsolescence.

• Landuserights–prevailingmarketratesofsimilarland in terms of nature, size and comparablelocations

• Building, plant and machinery – currentreplacement costs were derived from marketquotes received from suppliers/manufacturersandadjustedforphysical,functionalandeconomicobsolescenceoftheassets.

Customercontractsandrelatedrelationships

Multi-period excess earning method:The multi-period excess earningsmethod considers the present value ofnet cash flows related to contributoryassets.

• Discountrate:12.0%

• ContributaryAssetCharges(CACs):30.2%–57.0%

• Taxamortisationbenefits:10years



8. Developmentproperties

Developmentpropertiescomprisethefollowing:

GroupNote 2017 2016

$’000 $’000

PropertiesinthecourseofdevelopmentUnsoldunits (i) 47,914 634,495

Contractcosts– Capitalisedcommission (ii) 11,049 38– Fulfilmentcost (iii) 27,973 1,412

39,022 1,450Soldunits– Cost (iv) 12,498 100,183– Attributableprofit 6,786 32,508

19,284 132,691Less:Progressbilling (22,251) (88,708)

(2,967) 43,983

Totalpropertiesinthecourseofdevelopment 83,969 679,928

Reclassificationtoproperty,plantandequipment – (21,681)

Propertiesfordevelopmentrepresentingmainlyland,atcost 127,793 125,123

Total 211,762 783,370

Borrowingcostscapitalisedduringtheyear 2,689 14,357

Securities

CertaindevelopmentpropertiesoftheGrouparemortgagedtothebanksascollateralforcreditfacilitiesprovidedtotheGroupasdisclosedinnote16.

Propertiesinthecourseofdevelopmentandpropertyfordevelopment

(i) Unsoldunits

The amount relates primarily to cost attributable to the unsold units. Borrowing costs of the Group have beencapitalisedatratesrangingfrom5.54%to5.70%(2016:2.7%to6.0%)perannum.

(ii) Capitalisedcommission

Managementexpectstheincrementalcommissionfeespaidtopropertyagentsasaresultofsecuringsalecontractstoberecoverable.TheGrouphasthereforecapitalisedthemintheamountof$12,047,000(2016:$1,603,000)at31December2017.

Capitalisedcommissionfeesareamortisedwhentherelatedrevenueisrecognised.In2017,anamountof$1,036,000(2016:$249,000)ofthecapitalisedcommissionfeeswasamortisedtoprofitorlossincludedascostofsalesandnoimpairmentwasrecorded.



8. Developmentproperties(cont’d)

(iii) Fulfilmentcost

Landrelatedcoststhatareattributabletothesoldunitsamountingto$32,186,000(2016:$58,825,000)arecapitalisedasfulfilmentcostasat31December2017.Thesecostsareexpectedtoberecoverableandareamortisedtotheprofitorlosswhentherelatedrevenuearerecognised.In2017,$5,625,000(2016:$10,629,000)wasamortisedandnoimpairmentwasrecorded.

(iv) Soldunits

The amount represents the gross unbilled amount for work completed to date. The amount is transferred toreceivablewhentherighttobillbecomesunconditional.Thistypicallyoccurswhentheconstructionmilestonesareachieved.

Significantchangesinthebalanceduringtheyearareasfollows:

Contractassets

CostAttributable

profitCumulative

progressbilling$’000 $’000 $’000

2017Balanceat1January2017 100,183 32,508 (88,708)Revenuerecognisedduringtheyear 25,752 9,600 –Progressbillingsduringtheyear – – (82,229)Disposalofasubsidiary (113,741) (35,484) 149,225Effectofmovementsinexchangerates 304 162 (539)Balanceat31December2017 12,498 6,786 (22,251)

2016Balanceat1January2016 78,726 29,510 (65,352)Revenuerecognisedduringtheyear 21,457 2,998 –Progressbillingsduringtheyear – – (23,356)Balanceat31December2016 100,183 32,508 (88,708)

Estimationofallowanceforforeseeablelossesfordevelopmentproperties

The Group assesses at every reporting date whether any allowance for foreseeable losses is required. Theallowanceforforeseeablelossesisestimatedaftertakingintoaccountestimatedsellingpricesandestimatedtotalconstructioncosts.Theestimatedsellingpricesarebasedonrecentsellingprices for thedevelopmentprojector comparable projects and prevailing market conditions. The estimated total construction costs are based oncontractedamountsand,inrespectofamountsnotcontractedfor,management’sestimatesoftheamountstobeincurredtakingintoconsiderationhistoricaltrendsoftheamountsincurred.Asatthereportingdate,noallowanceforforeseeablelossesisrecognised.



9. Inventories

Group2017 2016$’000 $’000

Foodandbeverage 454 319Sparepartsandconsumables 461 338Merchandise 71 80

986 737

Thecostofinventoriesrecognisedasanexpenseandincludedin“costofsales”amountedto$6,633,000(2016:$6,462,000).In2017,theGrouphasreversedanallowanceof$8,000(2016:$28,000)whichisincludedincostofsales.

10. Tradeandotherreceivables

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

Tradereceivables 5,162 5,171 70 1,283Less:Allowancefordoubtfulreceivables (72) (47) – –

5,090 5,124 70 1,283Deposits 960 882 15 14Interestreceivables 345 3,003 221 2,835Rebatesreceivables 3,099 – 3,099 –Otherreceivables 2,737 1,172 1,240 281

12,231 10,181 4,645 4,413Advancestosuppliers 246 417 13 112Prepayments 1,125 519 55 42

13,602 11,117 4,713 4,567

Exposuretocreditrisk

Themaximumexposuretocreditriskfortradeandotherreceivables(excludingadvancestosuppliersandprepayments)atthereportingdatebybusinesssegmentissetoutbelow:

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

Hoteloperations 5,293 4,190 – –Rentalproperties 41 43 – –Propertydevelopment 2,498 1,784 – –Others 4,399 4,164 4,645 4,413

12,231 10,181 4,645 4,413



10. Tradeandotherreceivables(cont’d)

Impairmentlosses

Theageingoftradeandotherreceivables(excludingadvancestosuppliersandprepayments)thatwerepastdueatthereportingdateisasfollows:

2017 2016

GrossIndividual

impairment GrossIndividual

impairment$’000 $’000 $’000 $’000

GroupNotpastdue 9,328 – 9,529 (2)Pastduelessthan30days 2,143 (5) 331 (4)Pastdue31to60days 619 (3) 249 (4)Pastdueover60days 213 (64) 119 (37)

12,303 (72) 10,228 (47)

Thechangeinimpairmentlossesinrespectoftradereceivableduringtheyearisasfollows:

Group2017 2016$’000 $’000

At1January 47 69Impairmentlossreversed – (21)Impairmentloss 24 –Effectofmovementsinexchangerates 1 (1)At31December 72 47

TheGroup’shistoricalexperienceinthecollectionoftradeandotherreceivablesfallswithintherecordedallowances.Duetothisfactor,managementbelievesthatnoadditionalcreditrisksbeyondtheamountsprovidedforcollectionlossesisinherentintheGroup’stradeandotherreceivables.

Tradereceivablesthatwerenotpastduerelatetoawiderangeofcustomersforwhomtherehasnotbeenasignificantchangeinthecreditquality.



11. Amountsduefrom/(to)relatedparties

Amountsduefromrelatedparties

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

Non-tradeamountsduefromsubsidiaries – – 333,049 356,152

Non-tradeamountsduefromsubsidiariesareunsecured,interest-freeandrepayableondemand.

Amountsduetorelatedparties

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

Non-tradeamountsdueto:– subsidiaries – – 14,447 13,948– non-controllinginterests 301 64,448 – –

301 64,448 14,447 13,948

Non-tradeamountsduetosubsidiariesandnon-controllinginterestsareunsecured,interest-freeandrepayableondemand.

In2016,thenon-tradeamountsduetonon-controllinginterestsrelatestothepurchaseandconstructionofadevelopmentproperty.Thenon-tradeamountsduetonon-controllinginterestswererepaidduringtheyear(seeNote31).



12. Cashandcashequivalents

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

Cashatbankandonhand 100,472 13,232 86,790 2,982Fixeddepositswithfinancialinstitutions 136,212 303,883 96,500 284,704Cashandcashequivalentsinthestatementsof

financialposition 236,684 317,115 183,290 287,686Depositspledged (38,563) (271,796) – (256,704)Cashandcashequivalentsinthe

statementofcashflows 198,121 45,319 183,290 30,982

The Group had entered into a United States Dollars (“USD”) deposit arrangement with a bank. The foreign exchangeexposurewasfullyhedgedwithafinancialderivative.

Interestratesarerepriceableasandwhennotifiedbythebanks.TheweightedaverageeffectiveinterestratesrelatingtocashandcashequivalentsasatthereportingdatefortheGroupis0.05%to4.50%(2016:0.04%to4.03%)perannum.

DepositspledgedrepresentbankbalancesoftheGroupandtheCompanypledgedassecuritytoobtaincreditfacilities(seenote16).



13. Sharecapital

GroupandCompany2017 2016

No.ofshares $’000

No.ofshares $’000

Issuedandfullypaidordinaryshares:At1January 1,977,036,050 343,458 1,977,036,050 343,458Treasuryshares (18,102,700) (5,131) (18,102,700) (5,131)At31December 1,958,933,350 338,327 1,958,933,350 338,327

Allissuedordinarysharesarefullypaid,withnoparvalue.Theholdersofordinarysharesareentitledtoreceivedividendsasdeclaredfromtimetotime,andareentitledtoonevotepershareatmeetingsoftheCompany.AllsharesrankequallywithregardtotheCompany’sresidualassets.

Capitalmanagement

The Group’s primary objective in capital management is to maintain a strong capital base so as to maintain investor,creditorandmarketconfidence,tocontinuetodevelopandgrowthebusiness.

TheGroupmonitorscapitalusinganetdebtequityratio,whichisadjustednetdebtdividedbytotalequity.Forthispurpose,adjustednetdebt isdefinedastotal loansandborrowingslesscashandcashequivalents.Totalequity includesequityattributabletoequityholdersoftheCompanyandreserves.

Group2017 2016$’000 $’000

Totalloansandborrowings 348,285 886,021AttributabletoownersoftheCompany 308,978 664,424Attributabletonon-controllinginterests 39,307 221,597

Less:Cashandcashequivalents (236,684) (317,115)AttributabletoownersoftheCompany (223,705) (307,158)Attributabletonon-controllinginterests (12,979) (9,957)

Netdebt 111,601 568,906

Totalequity 478,103 438,134

Netdebtequityratio 0.23 1.30

Netdebtequityratio(excludingnon-controllinginterests) 0.20 1.03

Nochangesweremadetotheaboveobjectives,policiesandprocessesduringtheyearended31December2017and2016.

NeithertheCompanynoranyofitssubsidiariesaresubjecttoexternallyimposedcapitalrequirements.



13. Sharecapital(cont’d)

Dividends

Thefollowingexempt(one-tier)dividendsinrespectofthepreviousfinancialyearwaspaidbytheGroupandCompany:

Fortheyearended31December

GroupandCompany2017 2016$’000 $’000

PaidbytheCompanytoownersoftheCompany1.00centsperqualifyingordinaryshare

(2016:0.05centsperqualifyingordinaryshare) 19,589 988

Subsequenttothereportingdate,thefollowingexempt(one-tier)dividendswereproposedbythedirectors.Theseexempt(one-tier)dividendshavenotbeenprovidedfor.

GroupandCompany2017 2016$’000 $’000

1.25centsperqualifyingordinaryshare(2016:Nilcentsperqualifyingordinaryshare) 24,487 –

14. Reserves

Group2017 2016$’000 $’000

Assetrevaluationreserve 4,132 4,132Translationreserve (34,685) (41,011)

(30,553) (36,879)

Assetrevaluationreserve

Assetrevaluationreserverepresentsincreasesinthefairvalueofleaseholdbuilding,netoftax,anddecreasestotheextentthatsuchdecreaserelatestoanincreaseinthesameassetpreviouslyrecognisedinothercomprehensiveincome.In2014,theleaseholdbuildingwastransferredtoinvestmentproperty.Whenaninvestmentpropertythatwaspreviouslyclassifiedasproperty,plantandequipmentissold,anyrelatedamountincludedintherevaluationreserveistransferredtoretainedearnings.

Translationreserve

Thecurrencytranslationreserverepresentsexchangedifferencesarisingfromthetranslationofthefinancialstatementsofforeignoperations.



15. Tradeandotherpayables

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

Tradepayables 3,542 8,057 – –Accruedoperatingexpenses 23,071 17,811 10,408 3,121Rentalandotherdeposits 383 1,215 – 5Otherpayables 5,880 2,499 204 200Advancepaymentsfromcustomers 8,408 21,129 3,166 11,847Deferredincome 1,144 585 – –

42,428 51,296 13,778 15,173

Non-current – 2,176 – –Current 42,428 49,120 13,778 15,173

42,428 51,296 13,778 15,173

TheGroupandtheCompany’sexposurestoliquidityriskrelatedtotradeandotherpayablesaredisclosedinnote29.

Thedeferredincomerelatestotheupfrontgolfmembershipfeesreceivedfromcustomersforwhichrevenueisrecognisedoverthemembershipterm.

In2015,includedinadvancepaymentsfromcustomersareadvanceconsiderationreceivedforthesaleofpropertiesonbehalfofaformersubsidiaryamountingto$16,924,000.In2017,anamountof$8,684,000(2016:$5,077,000)wasoffsetagainsttheprogressbillingsissuedbytheformersubsidiary.

Significantchangesinthecontractliabilitiesbalancesduringtheyearareasfollows:

Group2017 2016$’000 $’000

Revenuerecognisedthatwasincludedinthecontractliabilitybalanceatthebeginningoftheperiod (13,950) (6,311)

Increasesduetocashreceived,excludingamountsrecognisedasrevenueduringtheyear 2,719 6,423

Exchangedifferences (931) 23(12,162) 135



16. Loansandborrowings

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

Non-currentliabilitiesSecuredbankloans 196,989 174,742 20,059 12,980Mediumtermnote 129,260 59,579 129,260 59,579Financeleaseliabilities 653 770 – –Redeemablepreferenceshares 426 419 – –

327,328 235,510 149,319 72,559CurrentliabilitiesSecuredbankloans 20,542 650,145 809 244,268Financeleaseliabilities 415 366 – –

20,957 650,511 809 244,268

Totalloansandborrowings 348,285 886,021 150,128 316,827

Maturitiesofliabilities(excludingfinanceleaseliabilitiesandredeemablepreferenceshares)

Within1year 20,542 650,145 809 244,268After1yearbutwithin5years 226,198 93,627 130,008 63,870After5years 100,051 140,694 19,311 8,689

346,791 884,466 150,128 316,827

Classificationofredeemablepreferenceshares

RedeemablepreferencesharesdonotcarrytherighttovoteandrankequallywithothershareswithregardtotheSuteraHarbourGolf&CountryClubBerhad’sresidualassets.

The redeemable preference shares are mandatorily redeemable at par on 31 December 2091 by a subsidiary, SuteraHarbourGolf&CountryClubBerhad.TheGrouphastheobligationtopayatparvaluetopreferenceshareholdersattheredemptiondate.Assuch,theGrouphasdeterminedthattheredeemablepreferencesharesareclassifiedasliabilities.

Mediumtermnote

The Company established a $800,000,000 Multicurrency Medium Term Note Programme in 2016. During the year, theCompanyissued$70,000,000(2016:$60,000,000)3yearsunsecuredfixedratenotesduein2020(2016:duein2019).Thesefixedratenotesbearinterestrateof5.15%perannumpayablesemi-annuallyinarrearsandarelistedontheSGX-ST.

Thecarryingamountofthefixedratenotesmeasuredatamortisedcostis$129,260,000(2016:$59,579,000).



16. Loansandborrowings(cont’d)

Termsanddebtrepaymentschedule

Termsandconditionsofoutstandingloansandborrowingsareasfollows:

Currency

Nominalinterestrateperannum

Yearofmaturity

Carryingamount

% $’000

GroupAt31December2017Securedbankloans1 SGD 1.38–3.10 2022–2041 76,771Securedbankloans1 MYR 5.46–5.71 2018–2024 140,760Mediumtermnote SGD 5.15 2019–2020 129,260Financeleaseliabilities MYR 2.62–4.00 2018–2023 1,068Redeemablepreferenceshares MYR NIL 426Totalloansandborrowings 348,285

At31December2016Securedbankloans1 SGD 1.66–3.39 2017–2041 616,639Securedbankloans1 MYR 5.58–5.96 2018–2024 208,249Mediumtermnote SGD 5.15 2019 59,579Financeleaseliabilities MYR 2.62–4.00 2020–2023 1,136Redeemablepreferenceshares MYR NIL 2091 419Totalloansandborrowings 886,021

CompanyAt31December2017Securedbankloans2 SGD 2.15–2.35 2041 20,868Mediumtermnote SGD 5.15 2019–2020 129,260Totalloansandborrowings 150,128

At31December2016Securedbankloans2 SGD 1.66–2.15 2017–2041 257,248Mediumtermnote SGD 5.15 2019 59,579Totalloansandborrowings 316,827

1 Theloansaresecuredby:(a) pledgedfixeddepositof$38,563,000(2016:$271,796,000)bytheGroup;(b) afirstlegalmortgageovercertaindevelopmentpropertiesoftheGroup’ssubsidiarieswithacarryingamountof$83,970,000(2016:$722,990,000);(c) corporateguaranteesexecutedbytheCompany;(d) theGroup’ssharesinSuteraHarbourResortSdnBhd,AdvancedPrestigeSdnBhd,EastworthSourceSdnBhd,SuteraHarbourTravelSdnBhdand

TheLittleShopSdnBhd;(e) debentureincorporatingafixedandfloatingchargeovergenerallyallitspresentandfutureassetsoftheSuteraHarbourResortSdnBhd;Advanced

PrestigeSdnBhd,EastworthSourceSdnBhd,SuteraHarbourTravelSdnBhd,TheLittleShopSdnBhdandSuteraHarbourGolfandCountryClubBerhad;

(f) afirstlegalmortgageovertheGroup’sproperty,plantandequipmentwithacarryingamountof$200,035,000(2016:$184,379,000);(g) assignmentofrevenuesorsalesproceedsfromtheassetsandpropertiesofSuteraHarbourResortSdnBhdanditssubsidiaries;(h) a debenture incorporating a fixed and floating charge over generally all its present and future assets in connection with the Group’s certain

subsidiaries’developmentproperty;(i) afirstlegalchargeovercertaindebtservicereserveaccount;and(j) anundertakingfromtheCompanytoprovideadditionalfunds/advancesrequiredtomeetanycashflowshortfallsincertainGroup’ssubsidiariesdebt

serviceobligations.2 Pledgedfixeddepositof$Nil(2016:$256,704,000)bytheCompanyandfirstlegalmortgagechargeovertheCompany’sproperty,plantandequipment

withacarryingamountof$29,207,000(2016:$21,046,000).



16. Loansandborrowings(cont’d)

Financeleaseliabilities

Financeleaseliabilitiesarerepayableasfollows:

Principal Interest Payments$’000 $’000 $’000

GroupAt31December2017Within1year 415 57 472After1yearbutwithin5years 653 49 702

1,068 106 1,174At31December2016Within1year 366 67 433After1yearbutwithin5years 770 73 843

1,136 140 1,276

Reconciliationofmovementsofliabilitiestocashflowsarisingfromfinancingactivities

NoteSecuredbank

loansMediumterm

noteFinancelease

liabilitiesInterestpayable Total

$’000 $’000 $’000 $’000 $’000

At1January2017 824,888 59,579 1,135 2,822 888,424Changesfromfinancing

cashflowsInterestpaid – – – (22,553) (22,553)Paymentoffinancelease

liabilities – – (386) – (386)Repaymentsofloansand

borrowings (323,273) – – – (323,273)Proceedsfromloansand

borrowings 71,829 69,468 – – 141,297Totalchangesfromfinancing

cashflows (251,444) 69,468 (386) (22,553) (204,915)Changesarisingfromdisposal

ofasubsidiary 31 (359,691) – – – (359,691)Theeffectofchangesin

foreignexchangerates 3,138 – 20 – 3,158OtherchangesInterestexpenses 21 – – – 19,024 19,024Newfinancelease – – 299 – 299Amortisationoftransaction

costspreviouslycapitalised 640 213 – – 853Capitalisedborrowingcosts 8 – – – 2,689 2,689Totalotherchanges 640 213 299 21,713 22,865At31December2017 217,531 129,260 1,068 1,982 349,841



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17. Deferredtaxassetsandliabilities(cont’d)

Deferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetoffcurrenttaxassetsagainstcurrent tax liabilities and when the deferred taxes relate to the same tax authority. The amounts, determined afterappropriateoffsetting,areincludedinthestatementoffinancialpositionasfollows:

Group2017 2016$’000 $’000

Deferredtaxliabilities 58,475 62,939

Unrecogniseddeferredtaxassets

TheGrouphascertainunutilisedtaxlossesof$6,346,000(2016:$5,091,000)asat31December2017forwhichrelatedtax benefits have not been included in the financial statements. The tax losses are available for offset against futuretaxableprofitsofthecompaniesinwhichthelossesarosebutforwhichnodeferredtaxassethasbeenrecognisedduetouncertaintyoftheirrecoverability.TheuseoftaxlossesissubjecttotheagreementbythetaxauthoritiesandcompliancewithcertainprovisionsofthetaxlegislationoftherespectivecountriesinwhichtheGroupoperates.

18. Derivativefinancialliabilities

2017 2016Contract/notionalamount

Assets/(Liabilities)

Contract/notionalamount

Assets/(Liabilities)

$’000 $’000 $’000 $’000

GroupandCompanyNon-hedginginstruments– Forwardexchangecontracts 123,850 (884) 256,704 (12,337)



19. Revenue

Inthefollowingtable,revenueisdisaggregatedbyprimarygeographicalmarket,majorproductandserviceslinesandtimingofrevenuerecognition.ThetablealsoincludesareconciliationofthedisaggregatedrevenuewithGroup’sreportablesegments(seenote25).

Hospitality Property Total2017 2016 2017 2016 2017 2016$’000 $’000 $’000 $’000 $’000 $’000

PrimarygeographicalmarketsMalaysia 74,729 62,704 18,816 – 93,545 62,704Singapore – – 16,780 24,455 16,780 24,455

74,729 62,704 35,596 24,455 110,325 87,159MajorproductsandserviceslinesHotelincome 44,302 35,998 – – 44,302 35,998Golfclubrelatedincome 6,602 7,524 – – 6,602 7,524Saleofgoods 23,073 18,550 – – 23,073 18,550Saleofdevelopmentproperties – – 35,352 24,455 35,352 24,455Others 752 632 244 – 996 632

74,729 62,704 35,596 24,455 110,325 87,159TimingofrevenuerecognitionProductstransferredatapoint

intime 23,073 18,550 – – 23,073 18,550Productsandservices

transferredovertime 51,656 44,154 35,596 24,455 87,252 68,60974,729 62,704 35,596 24,455 110,325 87,159

Transactionpriceallocatedtotheremainingperformanceobligations

Thefollowingtableincludesrevenueexpectedtoberecognisedinthefuturerelatedtoperformanceobligationsthatareunsatisfied(orpartiallyunsatisfied)atthereportingdate.

GroupNote 2017 2016

$’000 $’000

Aggregateamountofthetransactionpriceallocatedtogolfclubmembershipcontractsthatarepartiallyorfullyunsatisfiedasat31December a 1,144 585

Aggregateamountofthetransactionpriceallocatedtosaleofdevelopmentpropertiesforcontractsthatarepartiallyorfullyunsatisfiedasat31December b 138,118 3,263

139,262 3,848

(a) TheGroupexpects that2.5% (2016:2.5%)of the transactionpriceallocated to theunsatisfiedcontractswillberecognisedasrevenueforeachfinancialyearuntil2055.

(b) TheGroupexpectsthefulltransactionpriceallocatedtotheunsatisfiedcontractstoberecognisedasrevenueoverthenextonetothreeyears(2016:oneyear).



20. Othernetincome

GroupNote 2017 2016

$’000 $’000

Rentalincome 1,833 1,371Changeinfairvalueofinvestmentproperty (431) (2,037)Recoveryofexpensesfromnon-controllinginterests 143 174(Allowancefor)/Reversalofallowancefor:– tradereceivables (24) 21– inventories 8 28Gainondisposalofasubsidiary 31 74,511 –Netlossondisposal/write-offofproperty,plantandequipment (106) (20)Others 1,531 481

77,465 18

21. Netfinancecosts

2017 2016$’000 $’000

Interestincome 3,200 5,648Netchangeinfairvalueoffinancialderivatives 11,452 453Netforeignexchangegain* – 2,982Financeincome 14,652 9,083

Interestexpenseson:– bankloans (18,121) (16,751)– financeleases (50) (71)Amortisationoftransactioncostspreviouslycapitalised (853) (701)

(19,024) (17,523)Netforeignexchangeloss* (12,436) –Financecosts (31,460) (17,523)

Netfinancecostsrecognisedinprofitorloss (16,808) (8,440)

* Includedinnetforeignexchangegain(loss)istheunrealisedforeignexchangegain(loss)arisingfromrevaluationoffixeddepositpledgedof$144,000(2016:$1,619,000).



22. Taxexpense

Group2017 2016$’000 $’000

CurrenttaxexpenseCurrentyear 5,408 2,721Adjustmentforprioryears 138 (179)

5,546 2,542DeferredtaxexpenseCurrentyear 54 1,049Adjustmentforprioryears 51 322

105 1,371

Taxexpense 5,651 3,913

Reconciliationofeffectivetaxrate

Profitbeforetax 96,643 316Less:Shareofprofitofequity-accountedinvestee(netoftax) (17,327) –

79,316 316

TaxusingtheSingaporetaxrateof17%(2016:17%) 13,484 54Effectoftaxratesinforeignjurisdictions 1,188 69Non-deductibleexpenses 3,990 3,942Incomenotsubjectedtotax (13,488) (915)Utilisationofdeferredtaxassetspreviouslynotrecognised (27) (2)Deferredtaxassetnotrecognised 329 618Adjustmentinprioryears:– currenttax 138 (179)– deferredtax 51 322Others (14) 4

5,651 3,913

Judgement is required indetermining thedeductibilityofcertainexpensesand taxabilityofcertain incomeduring theestimationof theprovision for income taxes.Therearemany transactionsandcalculations forwhich theultimate taxdetermination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated taxbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpacttheprovisionforincometaxanddeferredincometaxprovisionsintheperiodinwhichsuchdeterminationismade.



23. Profit/(Loss)fortheyear

Thefollowingitemshavebeenincludedinarrivingatprofit/(loss)fortheyear:

2017 2016$’000 $’000

Auditfeespaidto:– auditorsoftheCompany 160 196– othermemberfirmsofKPMGInternational 135 98Non-auditfeespaidto:– auditorsoftheCompany – 9– otherauditors 153 136Employeebenefitsexpenses(seebelow) 29,717 18,812Operatingleaseexpense 742 869Operatingexpensesarisingfromrentalofinvestmentproperties 16 10

EmployeebenefitsexpenseStaffcosts 27,785 17,111Contributiontodefinedcontributionplansincludedinstaffcosts 1,932 1,701

29,717 18,812

24. Earningspershare

Thebasicanddilutedearningspershareat31December2017isasfollows:

Profitattributabletoordinaryshareholders

2017 2016$’000 $’000

Earningspershareisbasedon:Profit/(Loss)attributabletoordinaryshareholders 87,536 (3,638)

Weighted-averagenumberofordinaryshares

GroupNumberofshares

2017 2016’000 ’000

Issuedordinarysharesat1January 1,977,036 1,977,036Effectoftreasuryshares (18,103) (7,107)Weighted-averagenumberofordinarysharesduringtheyear 1,958,933 1,969,929

Theweightedaveragenumberofordinarysharesdetailedaboveisusedforboththebasicanddilutedearningspershareastherearenodilutivepotentialordinarysharesoutstanding.



25. Operatingsegments

TheGrouphasthreereportablesegments,asdescribedbelow,whicharetheGroup’sstrategicbusinessunits.Thestrategicbusinessunitsofferdifferentproductsandservices,andaremanagedseparatelybecausetheyare located indifferentgeographicalareasandrequiredifferentmarketingstrategies.Foreachofthestrategicbusinessunits,theGroup’sCEO(thechiefoperatingdecisionmaker)reviewsinternalmanagementreportsonatleastaquarterlybasis.

ThefollowingsummarydescribestheoperationsineachoftheGroup’sreportablesegments:

(i) Hospitality–operationofhotels,golfandmarinaclub.

(ii) Property–saleofpropertiesandrentalincomefrominvestmentpropertiesownedbytheGroup.

(iii) Others–mainlyinvestmentholdings.

Information regarding the results of each reportable segment is included below. Performance is measured based onsegmentprofitbeforetax,asincludedintheinternalmanagementreportsthatarereviewedbytheGroup’sCEO.Segmentprofitisusedtomeasureperformanceasmanagementbelievesthatsuchinformationisthemostrelevantinevaluatingtheresultsofcertainsegmentsrelativetootherentitiesthatoperatewithintheseindustries.

Hospitality Property Others* Total$’000 $’000 $’000 $’000

31December2017Segmentrevenue 74,745 36,246 4,085 115,076Eliminationofinter-segmentrevenue (16) (650) (4,085) (4,751)Externalrevenue 74,729 35,596 – 110,325

Interestincome 400 144 2,6561 3,200

Interestexpense (8,260) (4,584) (6,180) (19,024)

Othermaterialnon-cashitems:– Netchangeinfairvalueoffinancialderivatives – – 11,452 11,452– Depreciation (8,128) (743) (429) (9,300)

Reportablesegmentprofit/(loss)beforetax 17,592 94,664 (15,613) 96,643Taxexpense (5,210) (318) (123) (5,651)Reportablesegmentprofit/(loss)aftertax 12,382 94,346 (15,736) 90,992

Shareofprofitofequity-accountedinvestee – 17,327 – 17,327

Reportablesegmentassets 393,362 321,889 215,087 930,338

Reportablesegmentliabilities (212,353) (74,967) (164,915) (452,235)

Capitalexpenditure 2,387 688 5,458 8,533



25. Operatingsegments(cont’d)

Hospitality Property Others* Total$’000 $’000 $’000 $’000

31December2016Segmentrevenue 62,704 50,890 3,594 117,188Eliminationofinter-segmentrevenue – (26,435) (3,594) (30,029)Externalrevenue 62,704 24,455 – 87,159

Interestincome 460 486 4,7021 5,648

Interestexpense (9,392) (2,423) (5,708) (17,523)

Othermaterialnon-cashitems:– Unrealisedforeignexchangegainarisingfrom

revaluationoffixeddepositpledged (60) (21) 1,700 1,619– Netchangeinfairvalueoffinancialderivatives – – 453 453– Depreciation (8,239) (472) (196) (8,907)

Reportablesegmentprofit/(loss)beforetax 7,624 (3,221) (4,087) 316Taxexpense (3,625) (288) – (3,913)Reportablesegmentprofit/(loss)aftertax 3,999 (3,509) (4,087) (3,597)

Reportablesegmentassets 390,350 811,236 314,326 1,515,912

Reportablesegmentliabilities (217,406) (516,045) (344,327) (1,077,778)

Capitalexpenditure 2,246 2,166 60 4,472

* Generalcorporateactivities1 Includedininterestincomeistheinterestearnedonfixeddepositof$2,656,000(2016:$4,702,000).

Geographicalinformation

Inpresentinginformationonthebasisofgeographicalsegments,segmentrevenueisbasedonthegeographicallocationofcustomers.Segmentassetsarebasedonthegeographicallocationoftheassets.

Revenue Non-currentassets*2017 2016 2017 2016$’000 $’000 $’000 $’000

Malaysia 93,545 62,704 376,071 375,090CentralAsia – – 5,260 6,159Singapore 16,780 24,455 27,333 22,324China – – 58,640 –

110,325 87,159 467,304 403,573

* Non-currentassetsrelatetothecarryingamountsofinvestmentproperties,property,plantandequipmentandassociate.

Majorcustomers

Revenuefromtwo(2016:two)customersofthepropertysegmentrepresentapproximately$1,694,000(2016:$11,183,000)oftheGroup’stotalrevenue.



26. Commitments

Operatingleasecommitments–wheretheGroupandtheCompanyarelessees

TheGroupleasesoffice,warehouseandstaffaccommodationspaceundernon-cancellableoperatingleaseagreements.Theleasestypicallyrunforan initialperiodofonetotwoyears,withanoptiontorenewthe leasewhenall termsarerenegotiated.Noneoftheleasesincludescontingentrentals.

Thefutureaggregateminimumleasepaymentsundernon-cancellableoperatingleasescontractedforatthereportingdatebutnotrecognisedasliabilities,areasfollows:

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

Notlaterthanoneyear 276 671 5 57Betweentwoandfiveyears 186 293 6 11Laterthanfiveyears 71 129 – –

533 1,093 11 68

Operatingleasecommitments–wheretheGroupandtheCompanyarelessors

Thelesseesarerequiredtopayabsolutefixedannualincreasestotheleasepayments.Thefutureminimumleasepaymentsreceivableundernon-cancellableoperatingleasescontractedforatthereportingdatebutnotrecognisedasreceivablesareasfollows:

Group2017 2016$’000 $’000

Notlaterthanoneyear 191 1,312Betweentwoandfiveyears 32 336

223 1,648

27. Financialguaranteecontracts

Intra-groupfinancialguarantees

Intra-group financial guarantees comprise guarantees given by the Company to banks in respect of banking facilitiesgrantedtosubsidiaries.ThemaximumexposureoftheCompanyis$196,664,000(2016:$567,640,000).Atthereportingdate,theCompanydoesnotconsideritprobablethataclaimwillbemadeagainsttheCompanyundertheguarantees.Theperiodinwhichthefinancialguaranteeswillexpireareasfollows:

Company2017 2016$’000 $’000

Withinoneyear 19,733 405,878Afteroneyearbutwithinfiveyears 96,190 29,757Morethanfiveyears 80,741 132,005

196,664 567,640



28. Relatedpartytransactions

In addition to the related party information disclosed elsewhere in the financial statements, the following significanttransactions tookplacebetweentheGroupandrelatedpartiesduringthe financialyearontermsagreedbetweenthepartiesconcerned:

Group2017 2016$’000 $’000

Professionalfeespaidtoafirminwhichadirectorisamember* – 18Recoveryofexpensesfromnon-controllinginterests – (174)

* Amountswerebilledbasedonnormalmarketratesforsuchservicesandweredueandpayableundernormalpaymentterms.

In2016,adirectorandaspouseofadirectorhadenteredintosaleandpurchaseagreementswithasubsidiaryoftheGrouptopurchaseunitsofaMalaysiaresidentialpropertywithsalevaluesamountingto$1,244,000.RevenuefromthesaleswillberecognisedbytheGroupprogressivelybasedonthepercentageofcompletionoftheresidentialproject.

Inadditiontotheabove,fivedirectors(2016:two)subscribedtofixedratemediumtermnotesissuedbytheCompany,amountingto$27,500,000(2016:$33,500,000).Theinterestonthenotesthatwaspaidtothetwodirectorsamountedto$1,725,000(2016:$865,000).

Keymanagementpersonnelremuneration

Keymanagementpersonnelremunerationisasfollows:

Group2017 2016$’000 $’000

Short-termemployeebenefits 7,710 2,551Post-employmentbenefits(includingCentralProvidentFund) 105 91

7,815 2,642



29. Financialinstruments

TheGrouphasexposuretothefollowingrisksarisingfromfinancialinstruments:

• creditrisk

• liquidityrisk

• marketrisk

ThisnotepresentsinformationabouttheGroup’sexposuretoeachoftheaboverisks,theGroup’sobjectives,policiesandprocessesformeasuringandmanagingrisks.

Riskmanagementframework

TheBoardofDirectorshasoverall responsibility for theestablishmentandoversightof theGroup’s riskmanagementframework.TheGroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.TheGroup,throughitstrainingandmanagementstandardsandprocedures,aimstodevelopadisciplinedandconstructivecontrolenvironmentinwhichallemployeesunderstandtheirrolesandobligations.

TheGroupAuditRiskCommitteeoverseeshowmanagementmonitorscompliancewiththeGroup’sriskmanagementpoliciesandprocedures,andreviewstheadequacyoftheriskmanagementframeworkinrelationtotherisksfacedbytheGroup.TheGroupAuditRiskCommitteeisassistedinitsoversightrolebyInternalAudit.InternalAuditundertakesbothregularandadhocreviewsofriskmanagementcontrolsandprocedures,theresultsofwhicharereportedtotheAuditRiskCommittee.

Creditrisk

TheGrouphasacreditpolicyinplaceandtheexposuretocreditriskismonitoredonanongoingbasis.Creditevaluationsareperformedonallcustomersrequiringcreditoveracertainamount.TheGroupdoesnotrequirecollateralinrespectofthesefinancialassets.

TheGroupestablishesanallowanceforimpairmentthatrepresentsitsestimateofthespecificlosscomponentinrespectof tradeandotherreceivables.Theallowanceaccount inrespectof tradereceivablesandotherreceivables isused torecordimpairmentlossesunlesstheGroupissatisfiedthatnorecoveryoftheamountowingispossible.Atthatpoint,thefinancialassetisconsideredirrecoverableandtheamountchargedtotheallowanceaccountiswrittenoffagainstthecarryingamountoftheimpairedfinancialasset.Atthereportingdate,thereisnosignificantconcentrationofcreditrisk.Themaximumexposuretocreditriskisrepresentedbythecarryingamountofeachfinancialassetatthereportingdate.

Cashandcashequivalents

TheGroupandCompanyheldcashandcashequivalentsof$236,684,000at31December2017(2016:$317,115,000),whichrepresents itsmaximumcreditexposureontheseassets.Thecashandcashequivalentsareheldwithbanks,whichareregulated.

Guarantees

ThemaximumexposureoftheCompanyinrespectoftheintra-groupfinancialguaranteeattheendofthereportingperiodis$196,664,000(2016:$567,640,000).AtthereportingdatetheCompanydoesnotconsideritprobablethataclaimwillbemadeagainsttheCompanyunderthefinancialguarantees.



29. Financialinstruments(cont’d)

Liquidityrisk

Liquidityrisk is theriskthat theGroupwillencounterdifficulty inmeetingtheobligationsassociatedwith its financialliabilitiesthataresettledbydeliveringcashoranotherfinancialasset.

The Group monitors its liquidity risk and maintains a level of cash and cash equivalents and credit facilities deemedadequatebymanagementtofinancetheGroup’soperationsandtomitigatetheeffectsoffluctuationsincashflows.

The following are the contractual undiscounted cash outflows of financial liabilities, including interest payments andexcludingtheimpactofnettingagreements:

Cashflows

Carryingamount

Contractualcashflows

Within1year

After1yearbutwithin

5yearsAfter

5years$’000 $’000 $’000 $’000 $’000

GroupAt31December2017Non-derivativefinancialliabilitiesTradeandotherpayables* 32,876 (32,876) (32,876) – –Amountsduetorelatedparties 301 (301) (301) – –Securedbankloans 217,531 (277,426) (31,052) (73,139) (173,235)Mediumtermnote 129,260 (144,493) (6,695) (137,798) –Financeleaseliabilities 1,068 (1,174) (472) (702) –Redeemablepreferenceshares 426 (426) – – (426)

381,462 (456,696) (71,396) (211,639) (173,661)

DerivativefinancialinstrumentsForwardexchangecontracts

(net-settled) 884 (884) (884) – –884 (884) (884) – –

382,346 (457,580) (72,280) (211,639) (173,661)

At31December2016Non-derivativefinancialliabilitiesTradeandotherpayables* 29,582 (29,582) (27,406) (2,176) –Amountsduetorelatedparties 64,448 (64,448) (64,448) – –Securedbankloans 824,887 (901,081) (669,131) (66,248) (165,702)Mediumtermnote 59,579 (67,509) (3,090) (64,419) –Financeleaseliabilities 1,136 (1,276) (433) (843) –Redeemablepreferenceshares 419 (419) – – (419)

980,051 (1,064,315) (764,508) (133,686) (166,121)


(net-settled) 12,337 (12,337) (12,337) – –12,337 (12,337) (12,337) – –

992,388 (1,076,652) (776,845) (133,686) (166,121)




Liquidityrisk(cont’d)

Cashflows

Carryingamount

Contractualcashflows

Within1year

After1yearbutwithin

5yearsAfter

5years$’000 $’000 $’000 $’000 $’000

CompanyAt31December2017Non-derivativefinancialliabilitiesTradeandotherpayables* 10,612 (10,612) (10,612) – –Amountsduetorelatedparties 14,447 (14,447) (14,447) – –Securedbankloans 20,868 (27,013) (1,299) (5,251) (20,463)Mediumtermnote 129,260 (144,493) (6,695) (137,798) –Recognisedfinancialliabilities 175,187 (196,565) (33,053) (143,049) (20,463)Intra-groupfinancialguarantees – (196,664) (19,733) (96,190) (80,741)

175,187 (393,229) (52,786) (239,239) (101,204)


(net-settled) 884 (884) (884) – –884 (884) (884) – –

176,071 (394,113) (53,670) (239,239) (101,204)

At31December2016Non-derivativefinancialliabilitiesTradeandotherpayables* 3,326 (3,326) (3,326) – –Amountsduetorelatedparties 13,948 (13,948) (13,948) – –Securedbankloans 257,248 (261,155) (244,687) (3,210) (13,258)Mediumtermnote 59,579 (67,509) (3,090) (64,419) –Recognisedfinancialliabilities 334,101 (345,938) (265,051) (67,629) (13,258)Intra-groupfinancialguarantees – (567,640) (405,878) (29,757) (132,005)

334,101 (913,578) (670,929) (97,386) (145,263)


(net-settled) 12,337 (12,337) (12,337) – –12,337 (12,337) (12,337) – –

346,438 (925,915) (683,266) (97,386) (145,263)

* Excludesadvancepaymentsfromcustomersanddeferredincome

ThematurityanalysesshowthecontractualundiscountedcashflowsoftheGroupandtheCompany’sfinancialliabilitiesbased on their earliest possible contractual maturity. Except for the cash flows arising from the intra-group financialguarantees,itisnotexpectedthatthecashflowsinthematurityanalysiscouldoccursignificantlyearlier,oratsignificantlydifferentamounts.




Marketrisk

Marketriskistheriskthatchangesinmarketprices,suchasinterestrates,foreignexchangeratesandequitypriceswillaffecttheGroup’sincomeorthevalueofitsholdingsoffinancialinstruments.Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameters,whileoptimisingthereturnonrisk.

Interestraterisk

The Group’s exposure to interest rate risk relates primarily to the Group’s interest-bearing loan obligations and fixeddepositsplacedwithfinancialinstitutions.TheGroupisnotexposedtosignificantinterestratefluctuation.TheGroupdoesnotusederivativefinancialinstrumentstohedgeitsinterestraterisk.

Atthereportingdate,theinterestrateprofileoftheGroupandtheCompany’sinterest-bearingfinancialinstrumentsisasfollows:

Group Company2017 2016 2017 2016$’000 $’000 $’000 $’000

FixedrateinstrumentsFinanceleaseliabilities 1,068 1,136 – –Mediumtermnote 129,260 59,579 129,260 59,579

130,328 60,715 129,260 59,579VariablerateinstrumentsSecuredbankloans 217,531 824,887 20,868 257,248

Fairvaluesensitivityanalysisforfixedrateinstruments

TheGroupdoesnotaccountforanyfixedratefinancialassetsandliabilitiesatfairvaluethroughprofitorloss.Thereforeachangeininterestratesatthereportingdateswouldnotaffectprofitorloss.




Cashflowsensitivityanalysisforvariablerateinstruments

Achangeof50bpininterestratesatthereportingdateswouldhaveincreased/(decreased)profitbeforetaxbytheamountsshownbelow.Thereisnoeffecttotheequity.Thisanalysisassumesthatallothervariables,inparticularforeigncurrencyrates,remainconstant.Theanalysisisperformedonthesamebasisfor2016.

Profitbeforetax50bp

Increase50bp

Decrease$’000 $’000

Group2017Variablerateinstruments (1,088) 1,088

2016Variablerateinstruments (4,124) 4,124

Company2017Variablerateinstruments (104) 104

2016Variablerateinstruments (1,286) 1,286

The sensitivity analysis is illustrative only and is based on simplified scenarios. The table shows interest rate riskexposuresarisingininterest-bearingliabilities.TheseparticularexposuresformonlypartoftheGroup’soverallinterestrateexposures.




Foreigncurrencyrisk

TheGroupisexposedtoforeigncurrencyriskonsales,purchasesandborrowings,includingintercompanysales,purchasesandintercompanybalancesthataredenominatedinacurrencyotherthantherespectivefunctionalcurrenciesofGroupentities.ThecurrenciesinwhichthosetransactionsprimarilyaredenominatedareMalaysianRinggit(“MYR”),EuropeanDollars(“EURO”),andUnitedStatesDollars(“USD”).

TheGroup’sexposuretoforeigncurrencyriskbasedonnotionalamountsisasfollows:

MYR EURO USD$’000 $’000 $’000

GroupAsat31December2017Cashandcashequivalents – 83,893 989Forwardexchangecontracts (40,499) (83,351) –Netexposure (40,499) 542 989

Asat31December2016Cashandcashequivalents – – 256,913Forwardexchangecontracts – – (256,704)Netexposure – – 209

CompanyAsat31December2017Cashandcashequivalents – 83,893 962Forwardexchangecontracts (40,499) (83,351) –Netexposure (40,499) 542 962

Asat31December2016Cashandcashequivalents – – 256,883Forwardexchangecontracts – – (256,704)Netexposure – – 179

Sensitivity analysis

A5%strengtheningofthefollowingmajorcurrenciesagainstthefunctionalcurrencyofeachoftheGroup’sentitiesatthereportingdatesheldbytheGroupwouldincrease/(decrease)profit,andaccumulatedprofits,beforeanytaxeffectbytheamountsshownbelow.Similarly,a5%weakeningwouldhavetheequalbutoppositeeffect.Thisanalysisassumesthatallothervariables,inparticularinterestrates,remainconstant.

2017 2016$’000 $’000

GroupMYR (2,025) –EURO 27 –USD 49 10

(1,949) 10

CompanyMYR (2,025) –EURO 27 –USD 48 9

(1,950) 9



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Valuationtechniquesandsignificantunobservableinputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as thesignificantunobservableinputsused.

Financial instruments measured at fair value

Type Valuationtechniques

Significantunobservableinputs

Inter-relationshipbetweenunobservableinputandfairvaluemeasurement

GroupandCompanyForwardexchange

contractsMarket comparison technique:Thefairvaluesarebasedonbrokerquotes.Similarcontractsaretradedinanactivemarketandthequotesreflecttheactualtransactionsinsimilarinstruments.

Notapplicable Notapplicable

Financial instruments not measured at fair value

Type Valuationtechniques Significantunobservableinputs

GroupandCompanyOtherfinancial

liabilities*Discounted cash flow** Notapplicable

* Otherfinancialliabilitiesincludesecuredbankloans,mediumtermnote,redeemablepreferencesharesandfinanceleaseliabilities.** Itisassumedthatinputsconsideredobservableusedinthevaluationtechniquearesignificanttothefairvaluemeasurement.

Transfer between Level 1 and 2

TherewerenotransferbetweenLevel1and2in2017and2016.



30. Non-controllinginterest

Thefollowingsubsidiarieshavematerialnon-controllinginterest(“NCI”).

Name

Principalplacesofbusiness/Countryof

incorporation OperatingsegmentOwnershipinterests

heldbyNCI2017 2016

% %

EastworthSourceSdnBhd(“EastworthSource”) Malaysia Hoteloperation 22.5 22.5

SuteraHarbourGolfandCountryClubBerhad(“SuteraHarbourGolfandCountryClub”) Malaysia Golfcluboperation 22.5 22.5

AdvancedPrestigeSdnBhd(“AdvancedPrestige”) Malaysia Hoteloperation 22.5 22.5

InvestasiaSdnBhd(“Investasia”) Malaysia Propertydevelopment 32.5 32.5

LinyiPropertiesSdnBhd(‘LinyiProperties”) Malaysia Propertydevelopment 25.0 25.0

PlazaVenturesPteLtd(“PlazaVentures”)* Singapore Propertydevelopment – 49.0

* In2017,theGroupdisposedofitsshareinPlazaVenturesPteLtdtoathirdparty(seenote31).TheGroupdoesnotconsidertheprofitcontributionfromPlazaVenturestobeindividuallymaterialtotheGroup.



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31. Disposalofasubsidiary

On3March2017,theGroupenteredintoaconditionalsaleandpurchaseagreementwithathirdpartytodisposeitsequityinterest inPlazaVenturesPte.Ltd (“PlazaVenture”)ata totalcashconsiderationof$115,814,000. Included in thenetidentifiedassetsdisposedisanamountof$79,989,000duetotheGroup.

Effectofdisposal

Thecashflowsonthenetassetsofthesubsidiarydisposedareprovidedbelow:

GroupNote 2017

$’000

Developmentproperty 545,194Tradeandotherreceivables 12,621Cashandcashequivalents 38,654Tradeandotherpayables(includingamountduetotheGroup) (151,946)Loanandborrowings (359,691)Deferredtaxliabilities 17 (5,669)Netidentifiedassets 79,163Less:Non-controllinginterest (38,790)Realisationofforeigncurrencytranslationreserve 930Gainondisposal 20 74,511Totalconsideration 115,814RepaymentofamountsduetotheGroup 79,989Cashandcashequivalentsdisposedof (38,654)Netcashinflow 157,149

Thegainondisposalisrecognisedinotherincomeintheconsolidatedstatementofprofitorloss.

32. Subsequentevent

Subsequentto31December2017,thefollowingeventstookplace:

• On10January2018,theGroup’swholly-ownedsubsidiary,GSH(Xi’an)InvestmentsPteLtdhasincorporatedanewsubsidiaryinthePeople’sRepublicofChina,knownasGSH(Xi’an)PropertyDevelopmentCo.Ltd(群策环球(西安)

房地产有限公司)(“GSH(Xi’an)”)witharegisteredcapitalofS$135,250,000.GSH(Xi’an)is100%ownedbytheGroup.TheprincipalactivityofGSH(Xi’an)ispropertydevelopment.

• On12February2018,theGroupenteredintoaconditionalsubscriptionandshareholders’agreementwithTradewindsCorporationBerhadandAspirasiKukuhSdnBhd,toacquire50%oftheissuedandpaid-upsharecapitalofAspirasiKukuhSdnBhd,foraconsiderationofMYR164,500,000(approximately$55,561,000).AspirasiKukuhSdnBhdisthebeneficialownerofapieceoflandwith99yearstenure,locatedatKualaLumpur,Malaysia.



33. Comparativeinformation

TheGroupmodifiedtheclassificationofcertaindepreciationexpensesfromadministrativeexpensestocostofsalesfortheyearended31December2016,toreflectthenatureoftheseamountsmoreappropriately.Asaresult,thefollowingreclassificationsweremadetothestatementofcomprehensiveincomeoftheGroup.

Aspreviouslyreported Reclassification Asrestated

$’000 $’000 $’000

StatementofcomprehensiveincomeYearended31December2016

Costofsales (44,070) (8,181) (52,251)Administrativeexpenses (30,743) 8,181 (22,562)

34. FullconvergencewithInternationalFinancialReportingStandardsandadoptionofnewstandards

Applicableto2018financialstatements

In December 2017, the Accounting Standards Council (ASC) issued the Singapore Financial Reporting Standards(International)(SFRS(I)).Singapore-incorporatedcompaniesthathaveissued,orareintheprocessofissuing,equityordebtinstrumentsfortradinginapublicmarketinSingapore,willapplySFRS(I)witheffectfromannualperiodsbeginningonorafter1January2018.

TheGroup’sfinancialstatementsforthefinancialyearending31December2018willbepreparedinaccordancewiththeSFRS(I)andIFRSissuedbytheInternationalAccountingStandardsBoard.Asaresult,thiswillbethelastsetoffinancialstatementspreparedunderthecurrentFRS.

Inadoptingthenewframework,theGroupwillberequiredtoapplythespecifictransitionrequirementsinSFRS(I)1First-time Adoption of Singapore Financial Reporting Standards (International).

Inadditiontotheadoptionofthenewframework,thefollowingnewSFRS(I)s,amendmentstoandinterpretationsofSFRS(I)sareeffectivefromthesamedate.

• SFRS(I)9Financial Instruments;

• Transfers of Investment Property(AmendmentstoSFRS(I)40);

• Deletion of short-term exemptions for first-time adopters(AmendmentstoSFRS(I)1);

• Measuring an Associate or Joint Venture at Fair Value(AmendmentstoSFRS(I)28);

• IFRIC22Foreign Currency Transactions and Advance Consideration.

TheGroupdoesnotexpecttheapplicationoftheabovestandardsandinterpretationstohaveasignificantimpactonthefinancialstatements.

Applicabletofinancialstatementsfortheyear2019andthereafter

ThefollowingnewSFRS(I) ,amendmentstoandinterpretationsofSFRS(I)areeffectiveforannualperiodsbeginningafter1January2018:



34. FullconvergencewithInternationalFinancialReportingStandardsandadoptionofnewstandards(cont’d)

Applicableto2019financialstatements

• SFRS(I)16 Leases

• SFRS(I)INT23Uncertainty over Income Tax Treatments

• Long-term Interests in Associates and Joint Ventures(AmendmentstoSFRS(I)1-28)

Mandatoryeffectivedatedeferred

• Sale or Contribution of Assets between an Investor and its Associate or Joint Venture(AmendmentstoSFRS(I)10andSFRS(I)1-28)

TheGroupisstillintheprocessofassessingtheimpactofthenewSFRS(I),amendmentstoandinterpretationsofSFRS(I)sonthefinancialstatements.TheGroup’spreliminaryassessmentofSFRS(I)16,whichisexpectedtohaveamoresignificantimpactontheGroup,isasdescribedbelow.

SFRS(I)16

SFRS(I)16replacesexistingleaseaccountingguidance.SFRS(I)16iseffectiveforannualperiodsbeginningonorafter1January2019,withearlyadoptionpermittedifSFRS(I)15isalsoapplied.SFRS(I)16eliminatesthelessee’sclassificationofleasesaseitheroperatingleasesorfinanceleasesandintroducesasinglelesseeaccountingmodel.Applyingthenewmodel,alesseeisrequiredtorecogniseright-of-use(ROU)assetsandleaseliabilitiesforallleaseswithatermofmorethan12months,unlesstheunderlyingassetisoflowvalue.

TheGroupplans toadopt thestandardwhen itbecomeseffective in2019andexpects toapply thestandardusing themodifiedretrospectiveapproach.TheGroupalsoexpectstheROUassetsrecognisedatthedateofinitialapplicationtobeequaltotheirleaseliabilities.

TheGroupislikelytoelectthepracticalexpedientnottoreassesswhetheracontractcontainsaleaseatthedateofinitialapplication,1January2019.Accordingly,existingleasecontractsthatarestilleffectiveon1January2019continuetobeaccountedforasleasecontractsunderSFRS(I)16.TheGrouphasperformedapreliminaryassessmentoftheimpactonitsfinancialstatementsbasedonitsexistingoperatingleasearrangements(refertoNote26).

TheGroupaslessee

TheGroupexpectsitsexistingoperatingleasearrangementstoberecognisedasROUassetswithcorrespondingleaseliabilitiesunderSFRS(I)16.Asat31December2017,theoperatingleasecommitmentsonanundiscountedbasisamountto$907,000(refertoNote26).Underthenewstandard,remainingleasepaymentsoftheoperatingleaseswillberecognisedattheirpresentvaluediscountedusingappropriatediscountrates. Inaddition,thenatureofexpensesrelatedtothoseleaseswillnowchangeasSFRS(I)16replacesthestraight-lineoperatingleaseexpensewithdepreciationchargeofROUassetsandinterestexpenseonleaseliabilities.

TheGroupaslessor

SFRS(I) 16 substantially carries forward the current existing lessor accounting requirements. Accordingly, the Groupcontinuestoclassifyitsleasesasoperatingleasesorfinanceleases,andtoaccountforthesetwotypesofleasesusingtheexistingoperatingleaseandfinanceleaseaccountingmodelsrespectively.However,SFRS(I)16requiresmoreextensivedisclosurestobeprovidedbyalessor.


S T A T I S T I C S O FS H A R E H O L D I N G SA S AT 16 M A R C H 2 0 18

ShareCapital

NumberofShares : 1,977,036,050(includingTreasuryShares)ClassofShares : OrdinarySharesVotingRights : OnevoteperShareNumberofTreasuryShares : 18,102,700PercentageofTreasuryShares : 0.92%Numberofsubsidiaryholdingsheld : Nil

DistributionofShareholdings

SizeofShareholdingsNo.of

Shareholders % No.ofShares %

1–99 101 3.57 4,291 0.00100–1,000 323 11.41 123,050 0.011,001–10,000 1,059 37.42 5,865,834 0.3010,001–1,000,000 1,307 46.19 94,252,305 4.811,000,001AndAbove 40 1.41 1,858,687,870 94.88Total 2,830 100.00 1,958,933,350 100.00

TwentyLargestShareholders

No. Name No.ofShares %

1 GOISENGHUI 972,467,875 49.642 CITIBANKNOMINEESSINGAPOREPTELTD 225,359,817 11.503 OCBCSECURITIESPRIVATELIMITED 104,138,650 5.324 GOODVIEWPROPERTIESPTELTD 98,705,000 5.045 SKYVENGROWTHOPPORTUNITIESFUNDPTELTD 85,878,733 4.386 HSBC(SINGAPORE)NOMINEESPTELTD 56,478,820 2.887 EEGUANHUIGILBERT 52,629,478 2.698 CGS-CIMBSECURITIES(SINGAPORE)PTE.LTD. 37,398,590 1.919 UOBKAYHIANPRIVATELIMITED 30,742,800 1.5710 DBNOMINEES(SINGAPORE)PTELTD 30,049,580 1.5311 MAYBANKNOMINEES(SINGAPORE)PRIVATELIMITED 30,000,000 1.5312 MAHBOWTAN 24,000,000 1.2313 MAYBANKKIMENGSECURITIESPTE.LTD. 17,814,294 0.9114 FLORENCETANGEKNOIMRSFLORENCEEEGEKNOI 15,000,000 0.7715 DBSNOMINEES(PRIVATE)LIMITED 8,995,412 0.4616 DBSNSERVICESPTE.LTD. 7,337,700 0.3717 CHANDRADASNARESHKUMAR 6,000,000 0.3118 DBSVICKERSSECURITIES(SINGAPORE)PTELTD 5,446,800 0.2819 TEOKEKTJOK@TEOKEKYENG 4,294,900 0.2220 SINGAPORENOMINEESPRIVATELIMITED 3,800,000 0.19

Total 1,816,538,449 92.73


S T A T I S T I C S O FS H A R E H O L D I N G SA S AT 16 M A R C H 2 0 18

SubstantialShareholdersListofSustantialShareholders(AspertheRegisterofSubstantialShareholders)

DirectInterest % DeemedInterest %

GoiSengHui 972,467,875 49.64 – –EeGuanHuiGilbert 52,629,478 2.69 105,913,600 5.41GoodviewPropertiesPteLtd(1) 100,000,000 5.10 – –FarEastOrganizationCentrePteLtd – – 100,000,000(a) 5.10LippoCapitalLimited(2) – – 99,021,467(b) 5.05LaniusLimited(3) – – 99,021,467(c) 5.05NgCheeSiong – – 101,112,200(d) 5.16NgCheeTatPhilip – – 101,112,200(e) 5.16

Notes:(1) Thepercentageshown,tothenearest2decimalplaces,wasbasedonform3receivedfromGoodviewPropertiesPteLtdasat13August2013.(2) Thepercentageshown,tothenearest2decimalplaces,wasbasedonform3receivedfromLippoCapitalLimitedasat21January2015.(3) Thepercentageshown,tothenearest2decimalplaces,wasbasedonform3receivedfromLaniusLimitedasat21January2015.(a) Basedonform3receivedon13August2013,FarEastOrganizationCentrePteLtdhasacontrollinginterest inGoodviewPropertiesPteLtdandistherefore

deemedtobeinterestedinthe100,000,000sharesheldbyGoodviewPropertiesPteLtdinthecompany.(b) Basedonform3receivedon21January2015,LippoCapitalLimitedistheholdingcompanyofanentitywhichhasjointcontrolofLippoASMAsiaPropertyLimited,

whichisaholdingcompanyofOUELimited.OUELimitedhasadirectinterestin19,260,000shares.Inaddition,LippoCapitalLimitedistheholdingcompanyofGoldenSuperHoldingsLimitedandLippoAssets(InternationalLimited).GoldenSuperHoldingsLimitedandLippoAssets(InternationalLimited)hasadirectinterestin77,761,467and2,000,000sharesrespectively.LippoCapitalLimitedisthereforedeemedtobeinterestedin99,021,467shares.

(c) Based on form 3 received on 21 January 2015, Lanius Limited holds the entire issued share capital of Lippo Capital Limited and is therefore deemed to beinterestedin99,0210,267shares.

(d) Basedonform3receivedon1June2017,vestingoftheassetsoftheEstateonNgTengFong(the“Estate)inNgCheeSiong(“RN”)inhiscapacityasabeneficiaryoftheEstate,pendingfinaldistribution.GoodviewPropertiesPteLtdhasadirectinterestin101,112,200shares,TheEstatehasacontrollinginterestinFarEastOrganizationCentrePteLtd.,whichinturnhasacontrollinginterestinGoodviewPropertiesPteLtd.RNisabeneficiaryoftheEstateandisthereforedeemedtobeinterestedinthe101,112,200sharesinwhichGoodviewPropertiesPteLtdhasaninterest.

(e) Basedofform3receivedon1June2017,vestingoftheassetsoftheEstateonNgTengFong(the“Estate”)inNgCheeTat(“PN”)inhiscapacityasabeneficiaryoftheEstate,pendingfinaldistribution.GoodviewPropertiesPteLtdhasadirectinterestin101,112,200shares,TheEstatehasacontrollinginterestinFarEastOrganizationCentrePteLtd.,whichinturnhasacontrollinginterestinGoodviewPropertiesPteLtd.PNisabeneficiaryoftheEstateandisthereforedeemedtobeinterestedinthe101,112,200sharesinwhichGoodviewPropertiesPteLtdhasaninterest.

PublicFloat

Basedon theRegisterofSubstantialShareholdersand the informationmadeavailable to theCompanyasat16March2018,approximately30.89%oftheissuedordinarycapitalsharesoftheCompanyareheldbypublic.Rule723oftheSGXListingManualhasbeencompliedwith.


NOTICEISHEREBYGIVENthattheAnnualGeneralMeetingofGSHCorporationLimited(“theCompany”)willbeheldat20CecilStreet,#28-01GSHPlaza,Singapore049705onFriday,20April2018at3.00p.m.forthefollowingpurposes:

AsOrdinaryBusiness

1. ToreceiveandadopttheDirectors’StatementandtheAuditedFinancialStatementsoftheCompanyfortheyearended31December2017togetherwiththeAuditors’Reportthereon. (Resolution1)

2. To declare a final dividend of 1.25 Singapore cents per ordinary share (one-tier exempt) for the financial year ended31December2017.(2016:Nil) (Resolution2)

3. Tore-electthefollowingDirectorsoftheCompanyretiringpursuanttoArticle91oftheConstitutionoftheCompany:

MrGoiSengHui (Resolution3)MrFrancisLeeChoonHui[SeeExplanatoryNote(i)] (Resolution4)MsJulietteLeeHweeKhoon[SeeExplanatoryNote(ii)] (Resolution5)

4. To re-elect Mr Sun Yu, a Director of the Company retiring pursuant to Article 97 of the Constitution of the Company.[SeeExplanatoryNote(iii)] (Resolution6)

5. ToapprovethepaymentofDirectors’feesamountingtoS$353,000forthefinancialyearending31December2018,tobepaidquarterlyinarrears.(2017:S$302,800) (Resolution7)

6. ToapprovethepaymentofadditionalDirector’sfeesamountingto$13,661forthefinancialyearended31December2017.[SeeExplanatoryNote(iv)] (Resolution8)

7. To re-appoint KPMG LLP as the Auditor of the Company and to authorise the Directors of the Company to fix theirremuneration. (Resolution9)

8. TotransactanyotherordinarybusinesswhichmayproperlybetransactedatanAnnualGeneralMeeting.

AsSpecialBusiness

Toconsiderandifthoughtfit,topassthefollowingresolutionasOrdinaryResolutions,withorwithoutanymodifications:

9. Authoritytoissueshares

ThatpursuanttoSection161oftheCompaniesAct,Cap.50andRule806oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimited(“SGX-ST”),theDirectorsoftheCompanybeauthorisedandempoweredto:

(a) (i) issuesharesintheCompany(“shares”)whetherbywayofrights,bonusorotherwise;and/or

(ii) makeorgrantoffers,agreementsoroptions(collectively,“Instruments”)thatmightorwouldrequiresharesto be issued, including but not limited to the creation and issue of (as well as adjustments to) options,warrants,debenturesorotherinstrumentsconvertibleintoshares,

N O T I C E O FA N N U A L G E N E R A L M E E T I N G


atanytimeanduponsuchtermsandconditionsandforsuchpurposesandtosuchpersonsastheDirectorsoftheCompanymayintheirabsolutediscretiondeemfit;and

(b) (notwithstandingtheauthorityconferredbythisResolutionmayhaveceasedtobeinforce)issuesharesinpursuanceofanyInstrumentsmadeorgrantedbytheDirectorsoftheCompanywhilethisResolutionwasinforce,

providedthat:

(1) theaggregatenumberofshares(includingsharestobeissuedinpursuanceoftheInstruments,madeorgrantedpursuanttothisResolution)tobeissuedpursuanttothisResolutionshallnotexceedfiftypercentum(50%)ofthetotalnumberofissuedshares(excludingtreasurysharesandsubsidiaryholdings)inthecapitaloftheCompany(ascalculatedinaccordancewithsub-paragraph(2)below),ofwhichtheaggregatenumberofsharestobeissuedotherthanonaproratabasistoshareholdersoftheCompanyshallnotexceedtwentypercentum(20%)ofthetotalnumberofissuedshares(excludingtreasurysharesandsubsidiaryholdings)inthecapitaloftheCompany(ascalculatedinaccordancewithsub-paragraph(2)below);

(2) (subject tosuchcalculationasmaybeprescribedby theSGX-ST for thepurposeofdetermining theaggregatenumberofsharesthatmaybeissuedundersub-paragraph(1)above,thetotalnumberofissuedshares(excludingtreasurysharesandsubsidiaryholdings)shallbebasedonthetotalnumberofissuedshares(excludingtreasurysharesandsubsidiaryholdings)inthecapitaloftheCompanyatthetimeofthepassingofthisResolution,afteradjustingfor:

(a) newsharesarisingfromtheconversionorexerciseofanyconvertiblesecuritiesorshareoptionsorvestingofshareawardswhichareoutstandingorsubsistingatthetimeofthepassingofthisResolution;and

(b) anysubsequentbonusissue,consolidationorsubdivisionofshares;

(3) inexercisingtheauthorityconferredbythisResolution,theCompanyshallcomplywiththeprovisionsoftheListingManual of the SGX-ST for the time being in force (unless such compliance has been waived by the SingaporeExchangeSecuritiesTradingLimited)andtheConstitutionoftheCompany;and

(4) unless revokedor variedby theCompany inageneralmeeting,suchauthorityshall continue in forceuntil theconclusion of the next Annual General Meeting of the Company or the date by which the next Annual GeneralMeetingoftheCompanyisrequiredbylawtobeheld,whicheverisearlier.

[SeeExplanatoryNote(v)] (Resolution10)

ByOrderoftheBoard

LeeTiongHockCompanySecretarySingapore,5April2018



ExplanatoryNotes:

(i) MrFrancisLeeChoonHuiwill,uponre-electionasaDirectoroftheCompany,remainasChairmanoftheRemunerationCommittee and as a member of the Audit and Risk Committee and Nominating Committee and will be consideredindependent. There are no material relationships (including immediate family relationships) between Mr Francis LeeChoonHuiandtheotherdirectorsortheCompany.

(ii) MsJulietteLeeHweeKhoonwill,uponre-electionasaDirectoroftheCompany,remainasamemberoftheAuditandRiskCommitteeandRemunerationCommitteeandwillbeconsiderednon-independent.Therearenomaterialrelationships(includingimmediatefamilyrelationships)betweenMsJulietteLeeHweeKhoonandtheotherdirectorsortheCompany.

(iii) MrSunYuwill,uponre-election,remainasaDirectorandbeconsideredindependent(refertopage26ofthisAnnualReport).

(iv) TheOrdinaryResolution8initem6aboveistoseektheapprovalforthepaymentofS$13,661(whichhadbeenpro-ratedaccordingly) toMrSunYuasdirector’s fees for the financial yearended31December2017ashewasappointedasaDirectoroftheCompanyon28August2017.

(v) The Ordinary Resolution 10 in item 9 above, if passed, will empower the Directors of the Company, effective until theconclusionofthenextAnnualGeneralMeeting(“AGM”)oftheCompany,orthedatebywhichthenextAGMoftheCompanyisrequiredbylawtobeheldorsuchauthorityisvariedorrevokedbytheCompanyinageneralmeeting,whicheveristheearlier,toissueshares,makeorgrantinstrumentsconvertibleintosharesandtoissuesharespursuanttosuchInstruments,uptoanumbernotexceeding,intotal,50%ofthetotalnumberofissuedshares(excludingtreasurysharesandsubsidiaryholdings)inthecapitaloftheCompany,ofwhichupto20%maybeissuedotherthanonapro-ratabasistoshareholders.

Fordeterminingtheaggregatenumberofsharesthatmaybeissued,thetotalnumberofissuedshares(excludingtreasurysharesandsubsidiaryholdings)willbecalculatedbasedonthetotalnumberofissuedshares(excludingtreasurysharesand subsidiary holdings) in the capital of the Company at the time this Ordinary Resolution is passed after adjustingfornewsharesarisingfromtheconversionorexerciseofanyconvertiblesecuritiesorshareoptionsorvestingofshareawardswhichareoutstandingorsubsistingatthetimewhenthisOrdinaryResolutionispassedandanysubsequentbonusissue,consolidationorsubdivisionofshares.

Notes:

1. (a) Amemberwhoisnotarelevantintermediary,isentitledtoappointoneortwoproxiestoattendandvoteattheAnnualGeneralMeeting(the“Meeting”).

(b) Amemberwhoisarelevantintermediary,isentitledtoappointmorethantwoproxiestoattendandvoteattheMeeting,buteachproxymustbeappointedtoexercisetherightsattachedtoadifferentShareorSharesheldbysuchmember.

“Relevantintermediary”hasthemeaningascribedtoitinSection181oftheSingaporeCompaniesAct,Cap.50.

2. AproxyneednotbeamemberoftheCompany.

3. EachoftheresolutionstobeputtothevoteofmembersattheMeeting(andatanyadjournmentthereof)willbevotedonbywayofapoll.

4. TheinstrumentappointingaproxyorproxiesmustbedepositedattheRegisteredOfficeoftheCompanyat20CecilStreet,#28-01GSHPlaza,Singapore049705notlessthanseventy-two(72)hoursappointedforholdingtheMeeting.



Personaldataprivacy:

Bysubmittinganinstrumentappointingaproxy(ies)and/orrepresentative(s)toattend,speakandvoteattheMeetingand/oranyadjournmentthereof,amemberoftheCompany(i)consentstothecollection,useanddisclosureofthemember’spersonaldatabytheCompany(oritsagents)forthepurposeoftheprocessingandadministrationbytheCompany(oritsagents)ofproxiesandrepresentativesappointedfortheMeeting(includinganyadjournmentthereof)andthepreparationandcompilationoftheattendance lists, minutes and other documents relating to the Meeting (including any adjournment thereof), and in order forthe Company (or its agents) to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively, the“Purposes”),(ii)warrantsthatwherethememberdisclosesthepersonaldataofthemember’sproxy(ies)and/orrepresentative(s)totheCompany(or itsagents),thememberhasobtainedthepriorconsentofsuchproxy(ies)and/orrepresentative(s)forthecollection,useanddisclosureby theCompany (or itsagents)of thepersonaldataofsuchproxy(ies)and/orrepresentative(s)for thePurposes,and (iii)agrees that thememberwill indemnify theCompany inrespectofanypenalties, liabilities,claims,demands,lossesanddamagesasaresultofthemember’sbreachofwarranty.


IMPORTANT:1. Arelevantintermediarymayappointmorethantwoproxiestoattendthe

AnnualGeneralMeetingandvote(pleaseseenote4forthedefinitionof“relevantintermediary”).

2. For investors who have used their CPF monies to buy the Company’sshares, this Annual Report is forwarded to them at the request of theirCPFApprovedNomineesandissentsolelyFORINFORMATIONONLY.

3. ThisProxyFormisnotvalidforusebyCPFinvestorsandshallbeineffectiveforallintentsandpurposesifusedorpurportedtobeusedbythem.

GSHCORPORATIONLIMITED[CompanyRegistrationNo.200106139K](IncorporatedInTheRepublicofSingapore)

P R O X Y F O R M(Please see notes overleaf before completing this Form)

I/We,

ofbeingamember/membersofGSHCorporationLimited(the“Company”),herebyappoint:

Name NRIC/PassportNo. ProportionofShareholdingsNo.ofShares %

Address

and/or(deleteasappropriate)

Name NRIC/PassportNo. ProportionofShareholdingsNo.ofShares %

Address

orfailingtheperson,oreitherorbothofthepersons,referredtoabove,theChairmanoftheMeetingasmy/ourproxy/proxiestovoteforme/usonmy/ourbehalfattheAnnualGeneralMeeting(the“Meeting”)oftheCompanytobeheldat20CecilStreet,#28-01GSHPlaza,Singapore049705onFriday,20April2018at3.00p.m.andatanyadjournmentthereof.I/Wedirectmy/ourproxy/proxiestovotefororagainsttheResolutionsproposedattheMeetingasindicatedhereunder.Ifnospecificdirectionastovotingisgiven,theproxy/proxieswillvoteorabstainfromvotingathis/her/theirdiscretion,ashe/she/theywillonanyothermatterarisingattheMeetingandatanyadjournmentthereof.

No. Resolutionsrelatingto:NumberofVotes

For*

NumberofVotesAgainst*

1 Directors’StatementandAuditedFinancialStatementsfortheyearended31December20172 Approvalofone-tiertaxexemptdividend3 Re-electionofMrGoiSengHuiasaDirector4 Re-electionofMrFrancisLeeChoonHuiasaDirector5 Re-electionofMsJulietteLeeHweeKhoonasaDirector6 Re-electionofMrSunYuasaDirector7 ApprovalofDirectors’feesamountingtoS$353,000forthefinancialyearending31December2018,

tobepaidquarterlyinarrears8 Approval of additional Director’s fees amounting to S$13,661 for the financial year ended

31December20179 Re-appointmentofKPMGLLPasAuditor

10 Authoritytoissueshares*Ifyouwishtoexerciseallyourvotes“For”or“Against”,pleasetick(√)withintheboxprovided.Alternatively,pleaseindicatethenumberofvotesasappropriate.

Datedthis dayof 2018

TotalnumberofSharesin: No.ofShares(a) CDPRegister(b) RegisterofMembers

Signature of Shareholder(s)or, Common Seal of Corporate Shareholder

Notes:

1. PleaseinsertthetotalnumberofSharesheldbyyou.IfyouhaveSharesenteredagainstyournameintheDepositoryRegister(asdefinedinSection81SFoftheSecuritiesandFuturesAct,Chapter289),youshouldinsertthatnumberofShares.IfyouhaveSharesregisteredinyournameintheRegisterofMembers,youshouldinsertthatnumberofShares.IfyouhaveSharesenteredagainstyournameintheDepositoryRegisterandSharesregisteredinyournameintheRegisterofMembers,youshouldinserttheaggregatenumberofSharesenteredagainstyournameintheDepositoryRegisterandregisteredinyournameintheRegisterofMembers.Ifnonumberisinserted,theinstrumentappointingaproxyorproxiesshallbedeemedtorelatetoalltheSharesheldbyyou.

2. AmemberoftheCompanyentitledtoattendandvoteatameetingoftheCompanyisentitledtoappointoneortwoproxiestoattendandvoteinhis/herstead.AproxyneednotbeamemberoftheCompany.

3. Whereamemberappointstwoproxies,theappointmentsshallbeinvalidunlesshe/shespecifiestheproportionofhis/hershareholding(expressedasapercentageofthewhole)toberepresentedbyeachproxy.

4. Amemberwhoisarelevantintermediaryisentitledtoappointmorethantwoproxiestoattendandvoteinsteadofthemember,buteachproxymustbeappointedtoexercisetherightsattachedtoadifferentShareorSharesheldbysuchmember.Wheresuchmemberappointsmorethantwoproxies,theappointmentsshallbeinvalidunlessthememberspecifiesthenumberofSharesinrelationtowhicheachproxyhasbeenappointed.

“Relevantintermediary”means:

(a) a banking corporation licensed under the Banking Act (Cap. 19) or a wholly-owned subsidiary of such a bankingcorporation,whosebusinessincludestheprovisionofnomineeservicesandwhoholdssharesinthatcapacity;

(b) apersonholdingacapitalmarketsserviceslicencetoprovidecustodialservicesforsecuritiesundertheSecuritiesandFuturesAct(Cap.289)andwhoholdssharesinthatcapacity;or

(c) theCentralProvidentFundBoardestablishedbytheCentralProvidentFundAct(Cap.36),inrespectofsharespurchasedunderthesubsidiarylegislationmadeunderthatActprovidingforthemakingofinvestmentsfromthecontributionsandintereststandingtothecreditofmembersoftheCentralProvidentFund,iftheBoardholdsthosesharesinthecapacityofanintermediarypursuanttoorinaccordancewiththatsubsidiarylegislation.

5. CompletionandreturnofthisinstrumentappointingaproxyshallnotprecludeamemberfromattendingandvotingattheMeeting.Anyappointmentofaproxyorproxiesshallbedeemedtoberevokedifamemberattendsthemeetinginperson,andinsuchevent,theCompanyreservestherighttorefusetoadmitanypersonorpersonsappointedundertheinstrumentofproxytotheMeeting.

6. TheinstrumentappointingaproxyorproxiesmustbedepositedattheregisteredofficeoftheCompanyat20CecilStreet,#28-01GSHPlaza,Singapore049705notlessthanseventy-two(72)hoursbeforethetimeappointedfortheMeeting.

7. Theinstrumentappointingaproxyorproxiesmustbeunderthehandoftheappointororofhisattorneydulyauthorisedinwriting.Wheretheinstrumentappointingaproxyorproxiesisexecutedbyacorporation,itmustbeexecutedeitherunderitssealorunderthehandofanofficerorattorneydulyauthorised.Wheretheinstrumentappointingaproxyorproxiesisexecutedbyanattorneyonbehalfoftheappointor,theletterorpowerofattorneyoradulycertifiedcopythereofmustbelodgedwiththeinstrument.

8. AcorporationwhichisamembermayauthorisebyresolutionofitsdirectorsorothergoverningbodysuchpersonasitthinksfittoactasitsrepresentativeattheMeeting,inaccordancewithSection179oftheCompaniesAct,Chapter50ofSingapore.

PersonalDataPrivacy:

Bysubmittinganinstrumentappointingaproxy(ies)and/orrepresentative(s),thememberacceptsandagreestothepersonaldataprivacytermssetoutintheNoticeofAGMdated5April2018.

General:

TheCompanyshallbeentitledtoreject the instrumentappointingaproxyorproxies if it is incomplete, improperlycompletedorillegible,orwherethetrueintentionsoftheappointorarenotascertainablefromtheinstructionsoftheappointorspecifiedintheinstrumentappointingaproxyorproxies.Inaddition,inthecaseofsharesenteredintheDepositoryRegister,theCompanymayrejectanyinstrumentappointingaproxyorproxieslodgedifthemember,beingtheappointor,isnotshowntohavesharesenteredagainsthisnameintheDepositoryRegisterasatseventy-two(72)hoursbeforethetimeappointedforholdingtheAGM,ascertifiedbyTheCentralDepository(Pte)LimitedtotheCompany.

20 Cecil Street, #28-01 GSH PlazaSingapore 049705Tel : (65) 6585 8888Fax : (65) 6881 1000

www.gshcorporation.com


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