Dear all shareholders
At this auspicious time of holding this third Annual General Meeting of the shareholders, the Company has been operating its obligations with forward movement almost four years. The company has such advanced forwards by following the guidelines of the advisors to unshakably comply with the Law and Policies, procedures, rules and regulations.
In this introductory message, I would like to keep all of you well informed that the Company operates its businesses with priority given to — the benefit of shareholders, development of the region and the state, compliance with law, more accuracy in financial statements, and transparency in business undertakings.
The Union Government had promulgated the Economic Policy on July 29, 2016, in which twelve objectives along with economic visions were clearly described. In the Government's implementation of the aforementioned Policy, the Company shall carry out its utmost effort for the compliance and in giving support.
Although the company, in the past, was unable to conduct investment business substantially, the company could, however, generate considerable benefits to the shareholders by accepting construction contracts as main contractor.
Up to the end of 2015 - 2016 fiscal year, main contract businesses which have been carried out by the Company are:
(1) Infrastructure construction work of the Muse Central Business District (MCBD) implemented by the New Start Light Construction Co Ltd with
its own investment for MCBD Projects;
(2) Nandaw Immigration Check Point, Muse by the authorized permission of Shan State Government;
(3) Migada Maha Stupa Project, Muse (This project is currently suspending due to financial difficulty)
(4) Fruits Wholesale Terminal (Extension) Project, 105-mile, Muse, invested by North-East Gate (NEG)
(5) Placing of reinforce concrete for diversion culvert of Shwe Li (3) Hydro Power Project with 1,050 MW installed capacity, implemented by Department of Hydro Power Implementation, Ministry of Electricity and Energy, in 2015-2016 fiscal year. and
(6) Construction works for residential buildings in Muse.
In October 2013, the Company started preparation works for the hydro power investment. The purposes of making investment in the hydro power project are as follows:
a. The individual electric power consumption in Myanmar was about 104 kWh per head per year up to 2011;
b. Capable of producing only about 3,069 MW electricity out of natural water resources in Myanmar up to 2015;
c. According to the estimation done by JICA, the requirement of electricity for Myanmar will be, at least 9,100 MW and at most, about 14,542 MW in the year of 2030.
The investment business to be implemented from the 2016-2017 fiscal year are:
(1) -This project is, so far, the Company's major investment business. The Company has been conducting feasibility studies since October 2013. The brief tracks record regarding the implementation of this project is available here
(2) for the future investments, the Company has also been studying the feasibility of 3 other hydro power resources in Shan State. However they could not be mentioned here yet for the Company has not yet entered an MOU with Government Body.
(3) This is the project of real estate which includes hotels, resorts and multi-cultural houses, shopping malls etc. It covers 90.50 acres of farmland situated near Mogyo village in Pyin Oo Lwin, Mandalay Division. The MOU between the Company and the local cultivators has already been signed on joint-venture basis by means of 60:40 agreement for the benefits sharing. In 2016 - 2017 fiscal year, as soon as the authorized persimmon is obtained from the relevant authority, this project will come into operation as quickly as possible. It is our new project, and of my opinion, it has a great potential.
As long as the preparation for the capital market is concerned -
The Company was actually established as a public company, since October 2012, with the aim of participation in the capital market. Bearing this objective in mind, the Company has always been emphasizing in regularly holding Annual General Meeting of shareholders in accordance with the Companies' Act, maintaining transparency value in its financial statements and reporting system, and systematically carrying out its distribution of profits and dividends to shareholders.
In our attempt to be registered in the Yangon Stock Exchange form February 2014, our company was successful by passing the 17 criteria for qualification as well as interview exam. On December 9, 2015, Securities and Exchange Commission announced six companies that had been approved to list on the Yangon Stock Exchange, in which our Great Hor Kham Company was included.
Since then, the Company has been undergoing in busy preparation for making the Company to be able to trade on Yangon Stock Exchange. The followings are our Company's contractual business partners, which without them, the Company would possibly have no chance of landing on Stock Exchange.
|KBZSC||- IPO Manager|
- Underwriter for the IPO
|VDB Loi||- Due Diligence|
- Restructuring and other preparation before the IPO
- Preparing and reviewing of the Prospectus
- Submission for the Commission’s approval
- Consultations with the Commission
- Assistance up to commencement of trading
- All legal advisory during and after the IPO
- Amending MOA and AOA to reflect the change in GHKS’s structure
|BDO||- Internal Control Review|
|Deloitte||- Pricing Support Services of Hydro power Project|
|Excellence Choice Profession||- Internal Control and Reporting System Setting Up |
- External Reporting System Setting Up
- Corporate Governance (CG) System Setting Up
The shareholders are hereby respectfully informed of a piece of good news that our company is planning for the registration on the Yangon Stock Exchange in this coming December and as well as issuing Initial Public Offering (IPO).
The current assets of the company are 12,306 Million MMK and the book value per share is 225,740 MMK. The total number of shares at the end of the fiscal year as at March 31, 2016 is 54,518. The total net profit, as at March 31, 2015 is 899 Million MMK.
Total shares of 26,064 that has been paid until August 31, March 2015, the dividends for the 2015-2016 fiscal year are to be distributed in the amount of 10,000 MMk per share for the third round starting from the 1st January 2017.
As the Chairman of the Management Board, of my opinion, I myself assume that the financial statements for 2015-2016 fiscal year of the Company, which have been reviewed by the Audit Committee in conjunction with the Management Board, and audited by the Company’s auditor, reflect accurate financial position and operational results as appropriate in material aspects in accordance with generally accepted accounting principles.
Due to the effort made harmoniously by the company's Board of Directors, Management Board and the whole staff, the valuable advice supported by the Advisories Board, our successful steps have reached to a certain distance of achievement and success. Also the milestone has been erected with fragrance and beauty as we have created our future prospect and are able to have plucked the blossom of success, although its experience in running business is not adequate. For this achievement and success I would like to express the gratitude in honor of the State for the guidance, the respective Departmental head, the Technicians support, Board of Director and the Staff for the assignment of work they have done and the shareholders and business partner for the corporation in the company business.