118 119 Annual Report 2021 TROPICANA CORPORATION BERHAD SUSTAINABILITY AT TROPICANA As a leading property developer in Malaysia, sustainability means considering the best avenues to create economic value from our business operations while consistently providing quality deliverables that meet the expectations of our stakeholders. We weathered through challenging economic periods brought on by the COVID-19 pandemic, and managed to maintain profitability through strict monitoring of our operating expenses and effectively applied cost optimisation practices without compromising on level of productivity. The Group acknowledges growing calls by governing institutions and financial facilities on organisations to enhance commitment towards climate action and address EES risks and opportunities across our value chain. To address this, we aspire to work towards applying ESG considerations on our capital investments and funding opportunities as a means to future-proof our assets and create lasting values for our shareholders. We believe that this initial step will pave the way to further align our operations along the sustainability pathway in the years to come. Operating disruptions due to lockdowns required the Group to optimise operational costs and to sustain healthy financial capital throughout the reporting year. We faced this challenge head on by strategically managing our assets and increased efforts to enhance product sales to maintain profitability. We remain steadfast in our efforts to achieve long-term growth in the Group’s business by pivoting our operations to embrace digitalisation practices that promoted a steady pace of product sales and service excellence. Further information on our business innovation journey can be found on Page 119 of the Sustainability Statement under the Homeownership and Innovation section. The result of our agility and strong performance has led to the Group successfully registering a revenue of RM876.0 million, with FY2021 property sales reaching RM1.3 billion. Materiality Matter Importance to Tropicana Management Approach Applicable UNSDGs Reference to GRI Standards Specific Topics Economic Performance To achieve long-term business growth that benefits current and future stakeholders Emphasise developments and investment that achieve sustainable returns for stakeholders and enhance the value of Tropicana’s business portfolio GRI 201: Economic Performance Procurement Practices To ensure transparency, fairness, accountability and integrity throughout the entire procurement process Provide job opportunities to uplift the nation’s economy by prioritising local suppliers GRI 204: Procurement Practices Group Economic Value ECONOMIC SUSTAINABILITY Homeownership and Innovation A key driver to developing sustainable communities is bridging the gap between homeownership demand and affordability. As Malaysia’s economy continues to grow and mature, the majority of our country’s demographic is made up of middle-income households that drives market demand for affordable properties in strategic locations. The current overhang of properties within a certain price range reflects the need for financing options that can facilitate buyers’ capabilities to secure housing loans. In line with our aspirations to redefine the art of living, we addressed this challenge by launching innovative homeownership campaigns with the objective of providing buyers with financing options without compromising the ability to own one or more of our exclusive homes. Our campaigns included discounts, rebates and cashbacks for an array of fees incurred during the home purchasing process, as well as incentives for household furnishings and appliances. We believe that delivering quality homes to our buyers at a reasonable price point serves as a foundation to enhance the livelihood of society and strengthens the bond between communities across many generations. Throughout FY2021, Tropicana launched three homeownership campaigns – Tropicana 100 Campaign, Tropicana FreeDOM Campaign and Tropicana 100 Xtended Campaign. The result of our efforts from these campaigns and general sales efforts saw the Group achieve RM1.3 billion in property sales, surpassing our RM1.1 billion sales target and achieve an impressive sales jump of 62.4% for the financial year ended 31 December 2021 (31 December 2020 property sales: RM802.4 million). Tropicana 100 Campaign 20 January to 30 June 2021 Campaign period 560 Units Sold • 100% Returns • 100% Interest-Free flexibility • 100% Legal Fees Borne • 100% Financing • 100% Furnishing • 100% Additional Referral Rewards Tropicana FreeDOM Campaign 1 April to 31 December 2021 Campaign period 109 Units Sold • Free Downpayment • Move-in Immediately • Free Maintenance up to 10 Years • 100% Financing (with Houzkey by Maybank Islamic) • 2% Referral Rewards Tropicana 100 Xtended Campaign 23 September to 31 December 2021 Campaign period 429 Units Sold • 1000% Return on Booking Fee up to RM50,000 • Low Booking Fee • Low Monthly Payments (with Houzkey by Maybank Islamic) • Free Legal Fee on SPA and Loan • Free Stamp Duty on Loan and MOT • Free Payment during Construction (with Houzkey by Maybank Islamic) • Free Furnishing Items • 100% Financing and Flexibility (with Houzkey by Maybank Islamic and MBSB) • Up to 30 Months Easy Installment Plan • Up to 2% Referral Reward • Booking Incentives: Gifts such as Cash Vouchers and Home Gadgets For further details on our financial highlights, please refer to the following pages: • Management Discussion and Analysis: Pages 56 to 91 • Performance at a Glance: Pages 92 to 93 • Financial Highlights and Insights: Pages 94 to 95 • Value Added Statement: Page 96 • Audited Financial Statements: Pages 199 to 348 Financial Performance (RM’mil) Total Value Added 383.0 Net Operating Income 342.1 Share of Profits of Associate and Joint Ventures 40.8 Reinvestment and Growth (Depreciations and amortisation, retained income) (14.7) Government (Corporate taxation) (5.9) Employees (Salaries and other staff costs) 180.0 Providers of Capital (Finance costs, holders of perpetual bond and non-controlling interests) 223.5
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