CONTRIBUTING TO A MORE WORLD - Top Glove

FINANCIAL YEAR ENDED

31 AUGUST 2021

INTEGRATEDANNUAL REPORT2021

CONTRIBUTING TO A MORECONTRIBUTING TO A MORE

Incorporated in Malaysia [Registration No.: 199801018294 (474423-X)]Registered in Hong Kong [Registration No.: F28982]A Public Company Listed on the Main Market of Bursa Malaysia and Main Board of Singapore Exchange

SCAN FOR TG CORPORATE

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SCAN FOR TG INTEGRATED ANNUAL

REPORT 2021

SCAN FOR TG INTEGRATED ANNUAL

REPORT 2021

WORLDWORLDSustainable Sustainable

1

DIVIDEND POLICY: 50% of Profit After Tax and Minority InterestFor FY2021, the Company declared additional Special Dividend of 20% for 2QFY21, 3QFY21 and 4QFY21.

DIVIDEND PAYOUT

2016 2017 2018 2019 2020 2021Total Dividend (RM million) 181.6 181.9 217.3 192.0 961.7 5,214.2Payout Ratio (%) 50 54 51 53 55 68

Note: The dividends have been restated to reflect the effect of bonus issue.

TOTAL DIVIDEND PAYMENT OF RM7.75 BILLION SINCE LISTING IN YEAR 2001

Ordinary Dividend (sen)Special Dividend (sen)

Malaysian Institution

Malaysia Retail

Foreign Institution

Foreign Retail

SHAREHOLDER MIX (MALAYSIA VS. FOREIGN) AS AT 31 AUGUST 2021

50.69%

TOTAL EQUITY(RM BILLION)

TOTAL NUMBER OF SHAREHOLDERS AS AT 31 AUGUST 2021 CDS CDP

2016

2017

2018

2019

2020

2021

60,104

136,309

Total number of shareholders (based on CDS & CDP accounts) as at 27 October 2021: 139,375

OUR SHARE PRICE MOVEMENT

2,0001,8001,6001,4001,2001,0008006004002000

12.00

10.00

8.00

6.00

4.00

2.00

Share Price(RM)

Volume Traded(Million Shares)

MARKET CAPITALISATION (RM BILLION)(AS AT LAST TRADING DAY OF FINANCIAL YEAR END)

15.06%

34.07%

0.18%

18,736

13,329

15,260

28,523

2.4 2.4 2.8 2.511.8

65.1

+452%14.1

51.0

Sep2020

Oct2020

Nov2020

Dec2020

Jan2021

Feb2021

Mar2021

Apr2021

May2021

Jun2021

Jul2021

Aug2021

Highest Share Price (RM) 9.30 9.56 8.54 7.08 7.00 6.95 5.43 5.96 5.61 5.10 4.20 3.98 Lowest Share Price (RM) 6.01 8.06 6.05 5.90 5.14 5.04 4.37 4.44 4.93 4.15 3.62 3.65 Total Volume Traded (Million) 1,866 929 1,318 946 1,414 665 836 700 310 455 510 230

0

2017

2016

2020

2021

6.2

7.2

2018

2019

1.9

2.6

2.1

2.4

2017

2016

2020

2021

71.2

2018

2019

5.3

12.1

7.1

14.3

32.0

2021 KEY HIGHLIGHTS

The Group registered Compounded Annual Growth Rates (CAGR) for revenue and profit after tax of revenue: 26.9% and PAT 36.3% respectively, since listing in 2001.

6-YEAR FINANCIAL REVIEW

Group 2021 2020 2019 2018** 2017** 2016**

(RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000)

Turnover 16,361,443 7,237,427 4,801,139 4,220,742 3,409,176 2,888,515

Earnings Before Interest, Taxes, Depreciation & Amortisation (EBITDA) 10,285,089 2,421,457 687,493 694,002 489,255 524,682

Profit Before Taxation 10,033,813 2,165,551 423,588 522,800 393,402 442,202

Taxation 2,209,821 376,721 56,042 89,594 54,514 79,763

Profit After Tax 7,823,992 1,788,830 367,546 433,206 338,888 362,439

Profit Attributable to Owners of the Parent 7,710,327 1,752,584 364,678 428,830 339,023 360,729

Net Cash/(Borrowings) 1,743,037 2,342,651 (2,250,848) (1,960,042) (54,869) 81,015

Total Equity/Net Assets 7,220,160 6,190,883 2,554,141 2,398,396 2,072,791 1,875,697

Return on Equity (%) 131.3 36.0 14.4 18.0 16.4 19.3

Net Assets Per Share (sen)*# 73.3 60.0 33.0 31.1 27.4 24.9

Basic Earnings Per Share (sen)*# 95.9 21.9 4.8 5.6 4.5 4.8

Net Dividend (sen)* 65.1 11.8 2.5 2.8 2.4 2.4

Number of Shares in Issue (’000)*# 8,006,950 8,124,491 7,679,441 7,668,950 7,524,806 7,515,885

Share Price (RM)*^ 4.00 8.76 1.58 1.86 0.94 0.71

Market Capitalisation#^ 32,027,801 71,170,541 12,133,517 14,264,247 7,073,318 5,336,278

* The comparative net assets per share, basic earnings per share, net dividend, number of shares in issue and share price have been restated to reflect the effect of bonus issue on the basis of two new ordinary shares for every one existing ordinary share which was completed on 7 September 2020.

# Based on Company’s issued and paid up share capital, excluding treasury shares.^ As at the last trading day of the financial year.** Figures have been restated.

REVENUE (RM Billion)

2017

2016

2020

2021

2018

2019

PROFIT BEFORE TAX(RM Billion)

2017

2016

2020

2021

2018

2019

PROFIT AFTER TAX(RM Billion)

2017

2016

2020

2021

2018

2019

TOTAL ASSETS(RM Billion)

2017

2016

2020

2021

2018

2019

0.44

0.42

2.17

10.0

0.39

0.52

2.70

5.69

8.71

9.78

3.00

5.30

NET CASH FLOWS GENERATED FROM OPERATIONS (RM Billion)

2017

2016

2020

2021

2018

2019

EARNINGS PER SHARE (sen)

2017

2016

2020

2021

2018

2019

CAPITAL EXPENDITURE(RM Billion)

2017

2016

2020

2021

2018

2019

0.36

0.37

1.79

7.82

0.34

0.43

0.23

0.62

0.82

1.36

0.48

0.46

EBITDA(RM Billion)

2017

2016

2020

2021

2018

2019

2.89

4.80

7.24

16.3

6

3.41

4.22

4.8

4.8

21.9

95.9

4.5

5.6

0.43

0.53

3.46

7.83

0.38

0.34

0.52

0.69

2.42

10.2

9

0.49

0.69

Investor Relations ContactAll investors are welcome to contact the Investor Relations (IR) team directly at [email protected] or visit the Investor Relations section on our website at https://www.topglove.com

ABOUT THIS REPORT

The Board acknowledges its responsibility to ensure the integrity of the Integrated Annual Report. In the Board’s opinion, the Report addresses all material issues and matters and fairly presents the Group’s performance of the financial year.

CONTENTS

4 Our Business Overview5 Our Export Markets6 Our Guiding Principles7 Our Global Offices8 Corporate Structure 10 International Quality Awards

and Certifications12 Our Corporate Directory 14 Corporate Information

WE ARE TOP GLOVESection 1

15 Board of Directors28 An Empowered Board29 Executive Committee30 Senior Management Team

OUR PILLARS OF TRUST

Section 2

32 In Conversation with the Executive Chairman Tan Sri Dr Lim Wee Chai

(English, BM & Mandarin)48 Letter to Stakeholders and

Management Discussion & Analysis (English, BM & Mandarin)

MESSAGE FROM OUR LEADERS

Section 3

Informs which related pages to refer for more information.

Informs where to find more information online.

Navigating through the Integrated Annual Report 2021

Statement of the Board of Directors of Top Glove Corporation Bhd

We Are Top Glove We are a global leader in healthcare manufacturing, committed to our role in enhancing our Environmental, Social and Governance areas of performance.

Message from Our LeadersThe world is our market; we export to more than 195 countries worldwide and enhance the lives of billions of consumers.

How We Create ValueWe think global yet with a strong support of our local teams. We rigorously manage our assets and capital allocation for growth. We understand the importance of making a positive impact on society and delivering performance and value for all our stakeholders.

Creating Sustainable ValueWe focus our efforts where we can make the greatest impact and continuously we are working on refining and evolving our sustainability strategy.

Strength of Our GovernanceWe understand the risks we take and try to manage these to minimise their impact on our businesses. Our strong governance is integral to the way we think and make decisions.

ReportingIn line with best practice for Integrated Reporting, we report on the six (6) capitals that together provide a true picture of value across the Group. This way of telling a comprehensive, connected story fits well with our holistic view of value and our focus on creating sustainable value for long-term good.

For more information, please refer to page 4






1 2021 Key Highlights2 About This Report3 Contents

FORWARD-LOOKING STATEMENTS

This Report contains forward-looking statements concerning our financial condition, results of operations and businesses. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control and all of which are based on our current beliefs and expectations about future events. Forward-looking statements are typically identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”, “intends”, “estimates”, “plans”, “assumes” or “anticipates”, or the negative thereof, or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These forward-looking statements and other statements contained in this Integrated Annual Report regarding matters that are not historical facts involve predictions.

No assurance can be given that such future results will be achieved. Actual events or results may differ materially as a result of risks and uncertainties facing us and our subsidiaries. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward-looking statements.

The forward-looking statements contained in the Integrated Annual Report speak only as of the date of the Report. We are not under any obligation to (and expressly disclaim any such obligation to) revise or update any forward-looking statements to reflect events or circumstances after the date of the Report or to reflect the occurrence of unanticipated events. We cannot give any assurance that forward-looking statements will prove correct and investors are cautioned not to place undue reliance on any forward-looking statements.

HOW IT ALL FITS TOGETHER

We measure our performance by evaluating how we create value for our key stakeholders, taking into account our progress against our strategy, and by regularly measuring returns on invested capital. We understand the risks we take and manage these to minimise their impact on our business and results. We pursue growth by building an organisation that empowers people and enriches communities.

SCOPE AND BOUNDARY OF REPORTING

Financial and non-financial reportingThis Report constitutes the Integrated Annual Report as defined in terms of Malaysian law and extends beyond financial reporting. It reflects on non-financial performance, opportunities, risks and outcomes attributable to or associated with key stakeholders who have a significant influence on our ability to create value. Our reporting coverage is based on group-level disclosure unless stated otherwise. There is no significant change to our structure, ownership and supply chain during the reporting year. Group reporting standards are continually being developed to make disclosure meaningful and measurable for stakeholders.

MATERIALITY AND MATERIAL MATTERS

We apply the principle of materiality in assessing what information to include in our Integrated Annual Report. This Report focuses particularly on those issues, opportunities and challenges that impact materially on the Group as well as on its ability to be a sustainable business that delivers value to key stakeholders, including our shareholders.

THE LEGISLATION AND FRAMEWORKS THAT INFORM OUR REPORTING

This Integrated Annual Report was prepared against local and global standards, including:

• Framework of the International Integrated Reporting Council (IIRC), Sustainability Accounting Standards Board (SASB): this principles-based approach promotes the concept of the six capitals, which considers material inputs and resources required to create and sustain value in the long term.

• We support the United Nations’ Sustainable Development Goals (SDGs) and, like many other businesses, we have identified which of those goals our business aligns with. We discuss this alignment and our activities in support of the SDGs in this Report.

• Malaysian Companies Act 2016• Malaysian Code on Corporate Governance• The non-financial sections of this Integrated Annual Report

are in accordance with the GRI Standards: Core Option. • FTSE4Good Bursa Malaysia Index• Bursa Malaysia Sustainability Reporting Guidelines 2nd

Edition• Bursa Malaysia Corporate Governance Guide 3rd Edition • Dow Jones Sustainability Index (DJSI)• MSCI Global Standard Index

Approved by the Board and acknowledged on behalf of the Board by:

TAN SRI DR LIM WEE CHAI

Executive Chairman

DATO’ LEE KIM MEOWManaging Director

HOW WE CREATE VALUESection 4

76 The Market and Trends that Shape Us78 Our Value Creation Model80 Our Business Strategies82 Managing Our Risks and Opportunities86 Future Outlook

140 Corporate Governance Overview Statement

172 Statement on Risk Management and Internal Control

STRENGTH OF OUR GOVERNANCE PRACTICES

Section 6

OUR PERFORMANCE

176 Directors’ Responsibility Statement 177 Directors’ Report185 Statement by Directors 185 Statutory Declaration186 Independent Auditors’ Report190 Statements of Profit or Loss191 Statements of Comprehensive Income192 Statement of Financial Position 195 Statements of Changes in Equity198 Statements of Cash Flows202 Notes to the Financial Statements

Section 7

OTHER INFORMATION

291 List of Properties308 Analysis of Shareholdings311 Notice of 23rd AGM317 Administrative Details for 23rd AGM323 Proxy Form325 GRI Content Index331 Independent External Assurance

Statement335 Corporate Song

Section 8

CREATING SUSTAINABLE VALUE

Section 5

88 Continuing to Do Well by Doing Good: Our Meaningful ESG Journey

95 Environmental: Transitioning Into A Net Zero Carbon Business

108 Social: A People Centric Corporate Citizen

134 Governance: Strengthening Good Corporate Governance and Responsible Business Culture

2 3

2021 is the Year of Environmental, Social and Governance (“Year of ESG”) for TOP GLOVE.

4 5INTEGRATED ANNUAL REPORT 2021TOP GLOVE CORPORATION BHD

WE ARE TOP GLOVE

OUR BUSINESS OVERVIEW

THE WORLD’S LARGEST MANUFACTURER OF GLOVES

OUR EXPORT MARKETS

EXPORTS TO 195 COUNTRIES WORLDWIDE

THE WORLD IS OUR MARKET

Listed on the Malaysian Bourse (2001) and Mainboard of the Singapore Exchange (2016), Top Glove has demonstrated steady growth with a compound annual growth rate (CAGR) of 27% for revenue and 36% for profit after tax over the past 20 years. It is also a component stock of the MSCI Global Standard Index, FTSE Bursa Malaysia KLCI Index, FBM Top 100 Index, FBM Emas Index, FBM Hijrah Syariah Index, FBM Emas Syariah Index and the Dow Jones Sustainability Index (DJSI) for Emerging Markets. In the year 2021, Top Glove was also included in the Forbes Global 2000 and is the only Malaysian glove company on the prestigious list.

Top Glove offers a comprehensive product range, which now includes a non-glove segment comprising condoms, face masks, dental dams, exercise bands and household products, fulfilling demand in both the healthcare and non-healthcare segment.

Established in 1991 and headquartered in Malaysia, Top Glove Corporation Bhd is the world’s largest manufacturer of gloves. What started as only a local business enterprise with 1 factory and 1 glove production line, has today captured 26% of the world market share for rubber gloves. This 2021, Top Glove celebrates its 30th anniversary, marking 3 decades of resounding success in the business. The Company has manufacturing operations in Malaysia, Thailand, Vietnam and China. It also has marketing offices in these countries as well as USA, Germany and Brazil and exports to about 2,000 customers in 195 countries worldwide.

Top Glove was established in 1991 with 1 factory and 1 glove production line.

Top Glove’s listing on the Kuala Lumpur Stock Exchange (now Bursa Malaysia) in 2001.

Top Glove’s secondary listing on the Main Board of Singapore Exchange (SGX) in 2016.

Top Glove diversified into personal care production in 2021.

Top Glove became the world’s largest manufacturer of nitrile gloves in FY2020, in addition to already being the world’s largest manufacturer of natural rubber gloves and surgical gloves.

In line with its commitment to sustainability, Top Glove will continue to level up its practices in the Environmental, Social and Governance (ESG) space particularly in terms of labour practices.

The Company’s outstanding achievements and global recognition are credited largely to its founder Tan Sri Dr Lim Wee Chai, the visionary and driving force, who within a short span of time, has built the company into a resounding global success.

With the help of its 22,000 employees, Top Glove continues to produce high quality gloves at an efficient low cost in line with its time-tested Business Direction. Not content to rest on its laurels, Top Glove has set its sights on higher aspirations which include becoming a Forbes and Fortune Global 500 Company by 2030. Accordingly, it continues to expand its business scope and to be on the lookout for M&A opportunities in similar and related industries.

1. Canada2. USA

48. Albania49. Andorra50. Austria51. Belgium52. Bosnia Herzegovina53. Bulgaria54. Croatia55. Czech Republic56. Denmark57. Estonia58. Finland59. France60. Germany61. Greece62. Hungary63. Iceland64. Ireland65. Italy66. Kosovo67. Latvia68. Liechtenstein69. Lithuania70. Luxembourg71. Macedonia, FYR72. Malta73. Moldova74. Monaco75. Montenegro76. Netherlands77. Norway78. Poland79. Portugal80. Romania81. Russia82. San Marino83. Serbia84. Slovakia85. Slovenia86. Spain87. Sweden88. Switzerland89. United Kingdom

100. Republic of the Congo101. Djibouti102. Egypt103. Equatorial Guinea104. Ethiopia105. Eritrea106. Gabon107. Gambia108. Ghana109. Guinea110. Guinea-Bissau111. Kenya112. Lesotho113. Liberia114. Madagascar115. Malawi116. Mali117. Mauritania118. Mauritius119. Morocco120. Mozambique121. Namibia122. Niger123. Nigeria124. Rwanda125. Sao Tome and Principe126. Senegal127. Seychelles128. Sierra Leone129. South Africa130. Swaziland131. Tanzania132. Togo133. Tunisia134. Uganda135. Zambia

153. Jordan154. Kazakhstan155. Kuwait156. Kyrgyzstan157. Laos158. Macau159. Malaysia160. Maldives161. Mongolia162. Nepal163. Oman164. Pakistan165. Palestine166. Philippines167. Qatar168. Saudi Arabia169. Singapore170. South Korea171. Sri Lanka172. Taiwan173. Tajikistan174. Thailand175. Turkey176. Turkmenistan177. United Arab Emirates178. Uzbekistan179. Vietnam

90. Algeria91. Angola92. Benin93. Botswana94. Burkina Faso95. Burundi96. Cameroon97. Cape Verde98. Chad99. Comoros

NORTH AMERICA EUROPE

AFRICA

3. Anguilla4. Antigua and Barbuda5. Argentina6. Aruba7. Bahamas8. Barbados9. Belize10. Bolivia11. Brazil12. British Virgin Islands13. Cayman Islands14. Chile15. Colombia16. Costa Rica17. Dominica18. Dominican Republic19. Ecuador20. El Salvador21. Grenada22. Guadeloupe23. Guatemala24. Guyana25. Haiti26. Honduras27. Jamaica28. Martinique29. Mexico30. Montserrat31. Netherlands Antilles32. Nicaragua33. Panama34. Paraguay35. Peru36. Puerto Rico37. Saint Barthelemy38. Saint Kitts and Nevis39. Saint Lucia40. Saint Martin41. Saint Vincent and

Grenadines42. Suriname43. Trinidad & Tobago44. Turks And Caicos45. U.S. Virgin Islands46. Uruguay47. Venezuela

LATIN AMERICA

ASIA

136. Afghanistan137. Armenia138. Azerbaijan139. Bahrain140. Bangladesh141. Bhutan142. Brunei143. Cambodia144. China145. Cyprus146. East Timor147. Georgia148. Hong Kong149. India150. Indonesia151. Israel152. Japan

OCEANIA

180. American Samoa181. Australia182. Fiji183. Guam184. Kiribati185. Marshall Islands186. Micronesia187. Nauru188. New Caledonia189. New Zealand190. Palau191. Papua New Guinea192. Samoa193. Solomon Islands194. Tonga195. Vanuatu

The details of our stakeholder engagement, including stakeholder groups, the reason we engage, top 5 material matters concerned, engagement approaches, responses to concerns and value created can be found on page 166 under the Corporate Governance Overview Statement in this Integrated Annual Report.

For detailed reporting of our annual ESG issues management and initiative progress in FY2021, please refer to the Creating Sustainable Value section in this Report from page 88 to 139.


WE ARE TOP GLOVE

OUR GUIDING PRINCIPLES OUR GLOBAL OFFICES

TAN SRI DR LIM WEE CHAIExecutive ChairmanTop Glove Corporation Bhd

USA GERMANY CHINAVIETNAM

BRAZIL THAILAND MALAYSIA SINGAPORE

INDONESIA

BUSINESS DIRECTION

To Produce Consistently High Quality Gloves At Efficient Low Cost

BUSINESS PHILOSOPHIES

We work for our customers

We take care of the interest of our shareholders

We ensure that our employees continue to contribute positively to the company and we take good care of the well-being of our employees

We work closely with our bankers, suppliers, business associates, government authorities and friends

CORPORATE VALUES [R.I.V.E.R.]

Respect

Integrity

Value

Empowerment

Relationship

BUSINESS ETHICS

Honesty

Integrity

Transparency

QUALITY POLICY

Quality and productivity are our business

Continuous improvement and innovation are our duties

Towards zero defects is our target

Compliance with customers’ and regulatory requirements is our responsibility

BUSINESS RULES

Do not lose our shareholders’ money

Do not lose our health

Do not lose our temper

Do not lose our customers

5 HEALTHY WELLS

Clean Well

Eat Well

Work Well

Exercise Well

Sleep Well

1

3

2

4

1

3

2

4

1

1

3

3

2

2

5

4

1

3

2

5

4

1

3

2

4


WE ARE TOP GLOVE

CORPORATE STRUCTURE CORPORATE STRUCTURE

PURNABINA SDN BHD(Malaysia)

SUIZZE HEALTH LTD(Hong Kong)

95.2%

100%

PT. AGRO PRATAMASEJAHTERA(Indonesia)

95%PT. TOP GREENFORESTRY(Indonesia)

60%

TG MEDICAL (PUTIAN) CO LTD(China)100%

TG MEDICAL (XINGHUA) CO LTD(China)100%

TOP GLOVE EUROPE GMBH(Germany)97.5%

GREAT GLOVE (XINGHUA) CO LTD(China)100%

TG MEDICAL SUZHOU CO LTD(China)100%

BESTSTAR ENTERPRISE LTD(BVI)100%

B TECH INDUSTRY CO LTD(Thailand)100%

GREAT GLOVE (THAILAND) CO LTD(Thailand)74%

TOP GLOVE TECHNOLOGY (THAILAND) CO LTD(Thailand)100%

TOP QUALITY GLOVES (THAILAND) CO LTD(Thailand)100%

TOP GLOVE VIETNAM COMPANY LIMITED(Vietnam)100%

ADVENTA HEALTH SDN BHD(Malaysia)100%

CYTOTEC (M) SDN BHD(Malaysia)100%

SENTIENX SDN BHD(Malaysia)100%

TERANG NUSA SDN BHD(Malaysia)100%

ULMA INTERNATIONAL GMBH(Germany)100%

TERANG NUSA (MALAYSIA) SDN BHD(Malaysia)

100%

2%

99.9%

PT. TOPGLOVE INDONESIA(Indonesia)0.1%

99.9%

0.1%KEVENOLL DO BRASIL(Brazil)

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

TOP GLOVE SDN BHD(Malaysia)

EASTERN PRESS SDN BHD(Malaysia)

TG MEDICAL (U.S.A.), INC(USA)

TG HEALTHCARE SDN BHD(Malaysia)

TOP GLOVE ENGINEERING SDN BHD(Malaysia)

TOP GLOVE GLOBAL SDN BHD(Malaysia)

TG WORLDWIDE SDN BHD(Malaysia)

TOP GLOVE LABUAN LTD(Labuan)

TOP QUALITY GLOVE SDN BHD(Malaysia)

TOP GLOVE FOUNDATION*(Malaysia)

TG MEDICAL SDN BHD(Malaysia)

GREAT GLOVE (MALAYSIA) SDN BHD(Malaysia)

TOP CARE SDN BHD(Malaysia)

GMP MEDICARE SDN BHD(Malaysia)

TOP FEEL SDN BHD(Malaysia)100%

Notes:1. Top Glove has in total 62 companies within the Group.2. * Top Glove Foundation is a member of Top Glove Group.

ASPION SDN BHD(Malaysia)

BEST ADVANCE RESOURCES LIMITED(Labuan)

GREEN RESOURCES LIMITED(Labuan)

TG EFFICIENT SDN BHD(Malaysia)

TG MEDITECH SDN BHD(Malaysia)

TG ECOMMERCE SDN BHD (Malaysia)

DURAMEDICAL SDN BHD(Malaysia)

TOP GLOVE MEDICAL (THAILAND) CO LTD (Thailand)

100%

100%

100%

100%

100%

100%

85%

100%

100%

100%

70%

75%

100%

100%

100%

100%

27%

FLEXITECH SDN BHD(Malaysia)

TG EXCELLENCE BERHAD(Malaysia)

TG PORCELAIN SDN BHD(Malaysia)

TG FMT SDN BHD(Malaysia)

TGGD MEDICAL CLINIC SDN BHD(Malaysia)

TOP ACADEMY SDN BHD(Malaysia)

TOP GLOVE CHEMICALS SDN BHD(Malaysia)

TOP GLOVE INTERNATIONAL SDN BHD(Malaysia)

TOP GLOVE PROPERTIES SDN BHD(Malaysia)

VALUE ADD SDN BHD(Malaysia)

MEDI-FLEX PTE LTD(Singapore)100%

61.54%

38.46%

TOP HEALTHY FITNESS SDN BHD(Malaysia)

TOP SYNTHETIC RUBBER SDN BHD(Malaysia)

TG RAYTECH SDN BHD(Malaysia)

100%

100%

98.93%

TOP GLOVECORPORATION BHD (Malaysia & Hong Kong)

(Listed on the Main Market of Bursa Malaysia & Main Board of Singapore Exchange)

HEALTHY HOSTEL SDN BHD(Malaysia)100% Aerial view of

Factory 38 in Kulim, Kedah.

Aerial view of Factory 9 and its surrounding factories in Meru, Klang.


WE ARE TOP GLOVE

INTERNATIONAL QUALITY AWARDS AND CERTIFICATIONS INTERNATIONAL QUALITY AWARDS AND CERTIFICATIONS

We are honoured to be conferred notable awards, certifications and recognitions both at the industry and international level. These accolades motivate us to set our bar higher to perform better and strive for greater efficiencies.

Winner: Best Performing Stock, Fastest Growing Company, Best in Sector and Overall Winner Category: Healthcare Services and Pharmaceutical sectorby The Edge Billion Dollar Club 2021

Winner: Best Employer Brand Graduates’ Choice Awards 2021Category: Manufacturingby Talentbank

Employee Experience Awards 2021 MalaysiaBronze: Best Employer Brandingby Human Resources Online

MSWG: Top 100 Companies For CG Disclosure 2020by Minority Shareholders Watch Group (MSWG)

Winner: National Energy Awards 2020 (NEA)Category 1: Energy Efficiency; Energy Management (Large Industry)by National Energy Awards

MSWG-Asean Corporate Governance Award 2019• Industry Excellence Award (Healthcare)• ASEAN Asset Classby MSWG

Asia Recruitment Awards 2020Category: Best Use of Recruitment Technology Tools (Silver) by Human Resources Online

Winner: International Innovation Awards 2020Top Eco Rubber, Top Grip Thermoplastic Elastomer (TPE) Glove, Finessis (Category: Product) by The International Innovation Awards® (IIA)

Winner: CSR-Department of Industrial Works (DIW) Awards 2020by CSR DIW Award

Best Companies To Work For In Asia 2020by HR Asia

The Edge Billion Ringgit Club 2020Highest Returns to Shareholders Over Three (3) Years Award (Category: The Super Big Cap Companies more than RM40bn) by The Edge Malaysia

The Edge Billion Dollar Club 2020Highest Returns to Shareholders Over Three (3) Years Award (Category: Healthcare Services & Pharmaceutical sector) by The Edge Singapore

Prime Minister’s Hibiscus Award 2019/2020Notable Achievement in Environmental Performanceby Prime Minister’s Hibiscus Awards

HR Excellence Awards 2020 Malaysia• Gold Award: Excellence in Leadership

Development Category• Silver Award: Excellence in Talent Management

Category • Silver Award: Most People-Focused CEO

Category• Bronze Award: Excellence in Corporate

Wellness Categoryby Human Resources Online

Best Companies To Work For In Asia 2019 by HR Asia

Winner: Five Petal BEIM Gold Ethics Award 2019by Business Ethics Institute of Malaysia (BEIM)

Winner: Manufacturing (Chemical & Heavy Industries Most Popular Graduate Recruiter 2019)by Malaysia’s 100 Leading Graduate Employers 2019, GTI Media

The Star Export Excellence Awards 2019Silver Award: Other Industries Categoryby The Star Media Group, Malaysia

Highly Commended: Healthiest Workplace by AIA Vitality 2019

The BrandLaureate Iconic Brands of the Decade Award 2019 Category: Manufacturing-Gloves by The BrandLaureate

Human Resources Excellence Awards 2019 Excellence in Talent Management (Bronze) by Human Resources Online

MSWG - Asean Corporate Governance Award 2018 Industry Excellence Award (Healthcare)by MSWG

CSR Malaysia Awards 2019CSR Malaysia Company of the Year 2019(Category: Manufacturing of Gloves) by CSR Malaysia

Graduates’ Choice Award 2019 Category: Manufacturingby Talentbank

The 100 Most Influential Young Entrepreneurs 2019 (Category: Lifetime Achievement Award) by Entrepreneur Insight

The Golden Brick Award 2019(Category: Lifetime Achievement)by the Hokkien Association of Malaysia

National Cooperative EducationAwards 2019 (Thailand)

2nd Asean Corporate Governance Award 2018 (Category: Top 50 ASEAN PLCs)by MSWG

International Iconic Brand 2018by The BrandLaureate

8

Best Companies to Work For in Asia 2018by HR Asia

Most Innovative Award 2018Export Excellence Award 2018by Malaysian Rubber Export Promotion Council (MREPC)

Asean Business Awards 2018 Winner Priority Integrated Sector (Rubber-based)by ASEAN Business Advisory CouncilASEAN-BAC

The Edge Billion Ringgit Club Awards 2018(Healthcare Sector)• Highest Return on Equity over 3 years• Highest Growth in Profit After Tax over 3 years• Highest Returns to Shareholders over 3 yearsby The Edge

Winner: Manufacturing (Chemicals & Heavy Industries)by Malaysia’s 100 Leading Graduate Employers 2018, GTI Media

Nanyang Superb Brand Award 2018 (Category: Glove Innovation) by Nanyang Siang Pau

MSWG - Asean Corporate Governance Award 2017 (Categories: Merit Award for Most Improved Corporate Governance Disclosure & Industry Excellence for Manufacturing) by MSWG

Accolades, Recognitions & Certifications

The only Malaysian company being included in the Dow Jones Sustainability Index (DJSI) Emerging Markets in 2020

Inclusion in the Morgan Stanley Capital International (MSCI) Global Standard Index

Forest Stewardship Council (FSC) Chain of Custody certification for our latex concentrate Factory 16L and Factory 17L in Thailand

NEW LEVELS OF EXCELLENCE

2020 2019

2018

2012 TO 2017 1991 TO 2011

2021

HRD Awards Asia 2021• Winner: Best Leadership

Development Programme• Excellence Award: Best

Learning & Development Programme

by Key Media


WE ARE TOP GLOVE

FACTORY 5 & 5BLot 18, 27, 38 & 57, Medan Tasek,Kawasan Perindustrian Tasek,31400 Ipoh, Perak D.R., Malaysia.Tel : +605 546 6360/+605 547 9271Fax : +605 547 8975

FACTORY 5CLot 7, Medan Tasek,Kawasan Perindustrian Tasek,31400 Ipoh, Perak D.R., Malaysia.Tel : +605 546 6360/+605 547 9271Fax : +605 547 8975

FACTORY 23Lot 12, Medan Tasek,Kawasan Perindustrian Tasek,31400 Ipoh, Perak D.R., Malaysia.Tel : +605 545 5032Fax : +605 547 8975

PERAK

NEGERI SEMBILAN

KELANTAN

CORPORATE OFFICE, SETIA ALAM

Address : Level 21, Top Glove Tower, 16, Persiaran Setia Dagang, Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor D.E., Malaysia.Tel : +603 3362 3098Fax : +603 3362 3860Email : [email protected] [email protected] [email protected] : https://www.topglove.com

FACTORY OFFICE, KLANG (FACTORY 9)

Address : Lot 4969, Jalan Teratai, Batu 6, Off Jalan Meru, 41050 Klang,

Selangor D.E., Malaysia.Tel : +603 3392 1992/1905Fax : +603 3392 9848

FACTORY 19Lot 4987, Jalan Bunga Raya, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 5900Fax : +603 3392 5910

FACTORY 19BFLot 4987, Jalan Bunga Raya, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 1992

FACTORY 20 & 20BCLot 4988, Jalan Bunga Raya, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 5900/+603 7890 3322

FACTORY 21 & 21RBDLot 4989, Jalan Dahlia/KU8, Kawasan Perindustrian Meru Timur, 41050 Klang, Selangor D.E., Malaysia.Tel : +603 3392 1899/5399 +603 7890 3321

FACTORY 22Lot 4990, Jalan Bunga Raya, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 7890 3322Fax : +603 3392 1186

FACTORY 24Lot 4986, Jalan Dahlia/KU8,Kawasan Perindustrian Meru Timur,41050 Klang, Selangor D.E.,Malaysia.Tel : +603 3392 6010/0975Fax : +603 3392 0289

FACTORY 25PT 64593, Jalan Dahlia/KU8,Kawasan Perindustrian Meru Timur,41050 Klang, Selangor D.E., Malaysia.Tel : +603 3392 6341/6317Fax : +603 3392 6348

FACTORY 25ACBLot 5144, Jalan Dahlia KU8, Kawasan Perindustrian Meru, Mukim Kapar, 41050 Klang, Selangor D.E., Malaysia.

FACTORY 26Lot 4961, Jalan Teratai, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 3375Fax : +603 3392 5200

FACTORY 29Lot 4985, Jalan Dahlia/KU8,Kawasan Perindustrian Meru Timur,41050 Klang, Selangor D.E., Malaysia.Tel : +603 3392 6010

FACTORY 30Lot 4983 & 4984, Jalan Dahlia,Kawasan Perindustrian Meru Timur,41050 Klang, Selangor D.E., Malaysia.Tel : +603 7890 3330Fax : +603 3392 5066

FACTORY 31Lot 6472, Lorong Sungai Puloh/KU06,Kawasan Perindustrian Sungai Puloh,42100 Klang, Selangor D.E., Malaysia.Tel : +603 7890 3331

FACTORY 32Lot 4981 & 4982, Jalan Dahlia,Kawasan Perindustrian Meru Timur,41050 Klang, Selangor D.E., Malaysia.Tel : +603 7890 3332Fax : +603 3392 1291/8410

FACTORY 34PMLot 5, Jalan Paku 16/6,40000 Shah Alam, Selangor D.E., Malaysia.Tel : +603 5519 1576Fax : +603 5510 0072

FACTORY 35A, 35CD & 35FMLot 5090, Jalan Teratai, Batu 5,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 7880/7350

FACTORY 39/DuramedicalLot 4962, Jalan Teratai,Batu 6, Off Jalan Meru, 41050 Klang, Selangor D.E., Malaysia.Tel : +603 7890 3339

FACTORY 40Lot 67330, Lorong Bougainvillae/KU8, Kawasan Perindustrian Meru Timur, 41050 Klang, Selangor D.E., Malaysia.Tel : +603 7890 3340

MALAYSIA OFFICES AND FACTORIES

SELANGOR

FACTORY 2Lot 4968, Jalan Teratai, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 1992/1905

FACTORY 3Lot 5091, Jalan Teratai, Batu 5,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 7880/7350Fax : +603 3392 9160

FACTORY 4Lot 5987, Jalan Teratai, Batu 5,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 8588/8996Fax : +603 3392 6788

FACTORY 10Lot 4970, Jalan Teratai, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 9288/9942/3320Fax : +603 3392 8984

FACTORY 11Lot 4967, Jalan Teratai, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 1899/5399



FACTORY 13PLot 4946, Jalan Teratai, Batu 6,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3885 3141Fax : +603 3392 0122

FACTORY 14Lot 5104, Jalan Teratai, Batu 5,Off Jalan Meru, 41050 Klang,Selangor D.E., Malaysia.Tel : +603 3392 3626

FACTORY 18B & 18GLot 124 & 126, Jalan Lapan,Kompleks Perabot Olak Lempit,13 KM, Jalan Banting Dengkil, 42700 Banting,Selangor D.E., Malaysia.Tel : +603 3149 1998Fax : +603 3149 3008

OUR CORPORATE DIRECTORY OUR CORPORATE DIRECTORY

FACTORY 27Lot 2431 Mukim Port Dickson,Sendayan, 71100 Siliau,Negeri Sembilan D.K., Malaysia.Tel : +603 7890 3327Fax : +606 651 6896

FACTORY 33Lot 3726, Kawasan Perindustrian Nilai,Mukim Setul Daerah Seremban,71800 Nilai, Negeri Sembilan D.K., Malaysia.Tel : +603 7890 3333

FACTORY 362, Jalan 8, Pengkalan Chepa 2Industrial Zone, 16100 Kota Bharu,Kelantan D.N., Malaysia.Tel : +609 774 7171 Fax : +609 774 7757

JOHOR

FACTORY 37ABNo. 2 & 6, Jalan Mahsuri 1,Kawasan Perindustrian Kluang 1,86000 Kluang, Johor D.T., Malaysia.Tel : +607 787 9731Fax : +607 787 9733

KEDAH

FACTORY 38Lot 7, Jalan Hi-Tech 12, Zon Industri Fasa 3,09090 Kulim Hi-Tech Park,Kedah D.A., Malaysia.Tel : +603 7890 3338

THAILAND

GERMANY

INTERNATIONAL OFFICES AND FACTORIES

FACTORY 6180/3, Moo 7, Srisoontorn Road,Tambon Srisoontorn, AmphurThalang, Phuket 83110, Thailand.Tel : +66 76 620 190Fax : +66 76 620 196

FACTORY 7 & 8A188, 189, 190 Moo 5, Karnchanawanich Road, Tambol Samnakkham,Amphur Sadao, Songkhla 90320Thailand.Tel : +66 74 410 000Fax : +66 74 410 007/008

FACTORY 16L188, Moo 5, Tambol Pangla,Amphur Sadao,Songkhla 90170 Thailand.Tel : +66 74 410 888Fax : +66 74 410 886

FACTORY 17L268, Moo 5, Tambol Kampangphet,Amphur Rattaphum,Songkhla 90180 Thailand.Tel : +66 74 302 888Fax : +66 74 302 889/302 890

GERMANY SALES OFFICE 1Top Glove Europe GmbH,Bliersheimer Str. 80 A,47229 Duisburg, Germany.Tel : +49 (0) 2065 76421 0Fax : +49 (0) 2065 76421 19Email : [email protected]

GERMANY SALES OFFICE 2Ulma International GmbHPfaffenweg 35, 89231 Neu-Ulm, Germany.Tel : +49 731 926043 15Fax : +49 731 926043 10Email : [email protected]

CHINA

FACTORY 15No. 4 Shazhuang Road,Economic Development District,Xinghua City,225700 Jiang Su Province,P. R. China.Tel : +86 523 8326 8976Fax : +86 523 8326 8676

BRAZIL

VIETNAM

USA

FACTORY 41Land Lot A_8B_CN,Bau Bang Industrial Park,Lai Uyen Town, Bau Bang District,Binh Duong Province, Viet Nam.Tel : +84 274 380 3725/3744

U.S.A. MARKETING OFFICETG Medical (U.S.A.) Inc.,155, North Aspan Avenue,Azusa CA 91702 U.S.A.Tel : +1 626 969 8808Fax : +1 626 969 7823Email : [email protected]

BRAZIL MARKETING OFFICEKevenoll do Brasil ProdutosMédicos Hospitalares Ltda,Rodovia Antônio Heil, 1001 – KM01, Sala 203 - Itaipava, Itajaí, Santa Catarina,88316-001 Brazil.Tel : +55 (47) 3390 8800/3349 6168Email : [email protected]

FACTORY 37CDNo. 7, Jalan Mahsuri 1,Kawasan Perindustrian Kluang 1,86000 Kluang, Johor D.T., Malaysia.Tel : +607 787 9815/+603 3362 3098Fax : +607 787 9736

15INTEGRATED ANNUAL REPORT 202114 TOP GLOVE CORPORATION BHD

OUR PILLARS OF TRUSTWE ARE TOP GLOVE OUR PILLARS OF TRUST

REGISTERED & CORPORATE OFFICE

Level 21, Top Glove Tower16, Persiaran Setia DagangSetia Alam, Seksyen U1340170 Shah AlamSelangor D.E., MalaysiaTel. : +603 3362 3098Fax : +603 3362 3860Email : (i) [email protected] (ii) [email protected] (iii) [email protected] (iv) [email protected] : https://www.topglove.com

SENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR

Dato’ Lim Han Boon Tel : +603 3362 3098Email : [email protected]

CORPORATE INFORMATION

STOCK EXCHANGE LISTING

Main Market of Bursa MalaysiaSecurities BerhadStock Code : 7113Stock Name : TOPGLOVListing Date : 27 March 2001

Main Board of Singapore Exchange Securities Trading LimitedStock Code : BVAStock Name : Top GloveListing Date : 28 June 2016

ADR Programme(Depository Receipt Programme) USAADR Symbol : TGLVY

AUDITORS

Ernst & Young PLT202006000003 (LLP0022760-LCA) & AF 0039Chartered AccountantsLevel 23A, Menara MileniumJalan DamanlelaPusat Bandar Damansara50490 Kuala Lumpur, Malaysia

CHARTERED SECRETARIES

Chua Siew ChuanSSM PC No.: 201908002648MAICSA No.: 0777689

Chin Mun YeeSSM PC No.: 201908002785MAICSA No.: 7019243

Lim Keat SeeSSM PC No.: 201908001159MAICSA No.: 7020290Tel. : +603 3362 3098Email : [email protected]

REGISTRAR IN MALAYSIA

Securities Services (Holdings) Sdn BhdLevel 7, Menara MileniumJalan DamanlelaPusat Bandar DamansaraDamansara Heights50490 Kuala Lumpur, MalaysiaTel. : +603 2084 9000Fax : +603 2094 9940 +603 2095 0292Email : [email protected]

SHARE TRANSFER AGENT IN SINGAPORE

Boardroom Corporate & AdvisoryServices Pte. Ltd.50 Raffles Place#32-01 Singapore Land TowerSingapore 048623Tel. : +65 6536 5355Fax : +65 6438 8710Email : [email protected]

PRINCIPAL BANKERS

1. BNP Paribas Malaysia Berhad2. CIMB Bank Berhad3. Citibank Berhad4. Deutsche Bank (Malaysia)

Berhad5. Hong Leong Bank Berhad6. Industrial and Commercial Bank

of China (Malaysia) Berhad7. Malayan Banking Berhad8. Mizuho Bank (Malaysia) Berhad9. MUFG Bank (Malaysia) Berhad10. OCBC Bank (Malaysia) Berhad11. Public Bank Berhad12. Siam Commercial Bank

Public Company Limited13. Standard Chartered Bank

Malaysia Berhad14. Sumitomo Mitsui Banking

Corporation Malaysia Berhad15. United Overseas Bank

(Malaysia) Berhad16. Mizuho Bank Ltd. Ho Chi Minh

City Branch

BOARD OF DIRECTORS

1

9

7

5

3

11

2

10

4

12

8

6

Tan Sri Dr Lim Wee Chai

Dato’ Lee Kim Meow

Dato’ Lim Han Boon

Tan Sri Rainer Althoff

Lim Hooi Sin

Lim Cheong Guan

Puan Sri Tong Siew Bee

Datuk Noripah Kamso

Sharmila Sekarajasekaran

Datuk Dr. Norma Mansor

Azrina Arshad

Lim Andy

1 5 9

3 7 11

2 6 10

4 8 12

OUR VISIONTo be your world class partner ingloves and healthcare products

OUR MISSIONEnsuring safe human

protection globally

16 17


INTEGRATED ANNUAL REPORT 2021TOP GLOVE CORPORATION BHD

BOARD OF DIRECTORS

TAN SRI DR LIM WEE CHAI DATO’ LEE KIM MEOW

Present Appointment(s):• President Emeritus since 2019 and Council Member of the Federation of

Malaysian Manufacturers since 2010• Honorary President of the Associated Chinese Chambers of Commerce and

Industry of Malaysia (ACCCIM) since 2017• Life Honorary Advisor of the Federation of Chinese Associations Malaysia since

2011• Chairman in 2019 and Non-Independent Non-Executive Director of Tropicana

Corporation Berhad since 2017• Life Honorary President of the Federation of Hokkien Associations of Malaysia

since 2017• Honorary President of the Kuala Lumpur and Selangor Chinese Chamber of

Commerce and Industry (KLSCCCI) since 2017• Honorary President of the Malaysia-China Chamber of Commerce since 2012• Honorary President of the Lim Association of Malaysia since 2018• Honorary Fellow of Institut Fizik Malaysia (IFM) since 2019• Tzu Chi Foundation Commissioner and Volunteer since 2017• Director of Kuen Cheng High School since 2008

Past Appointment(s) and Working Experience:Tan Sri Dr Lim has been actively involved in many associations and organisations in Malaysia. He was the Director and Board Member of the Employees Provident Fund from 2015 to 2020. He was also the President of the Federation of Malaysian Manufacturers (FMM) in 2016/17. He served as a Director and Board Member of University of Malaya from 2015 to 2018, Council Member of the East Asia Business Council (EABC) from 2011 to 2015, and Director of the Association of Malaysian Medical Industries (AMMI). In addition, he was a Board Member of the Malaysian Rubber Board from 1998 to 1999 and also the President of the Malaysian Rubber Glove Manufacturers Association (MARGMA) from 1997 to 1999. Prior to that, he served as Vice-President, Honorary Secretary and Treasurer of MARGMA for seven (7) years.

Family Relationship with any Director(s) and/or Substantial Shareholder(s) of the Company:Spouse of Puan Sri Tong Siew Bee and brother of Mr. Lim Hooi Sin, both of whom are Directors and indirect Substantial Shareholders of the Company. He is also the father of Mr. Lim Jin Feng.

Present Appointment(s):• Trustee of MARGMA Foundation since 2015• Chairman of the Asean Rubber Glove Manufacturers Association (ARGMA)

since 2013• Council Member of the Klang Chinese Chamber of Commerce & Industry

(KCCCI) since 2018

Past Appointment(s) and Working Experience:Prior to joining Top Glove in 1997, Dato’ Lee has more than fifteen (15) years of experience in the financial services, trading and manufacturing business having worked in established financial institutions and with a well-known conglomerate with diversified interest in the ASEAN region.

In the past twenty-one (21) years, Dato’ Lee has been actively contributing to the development of the rubber glove industry in Malaysia as well as the ASEAN region. He has served for seventeen (17) years as a Board Member of the Malaysian Rubber Export Promotion Council (MREPC) from 2002 to 2016 and from 2018 to 2021. He was a Board Member of the Malaysian Rubber Board (MRB) and the Tun Abdul Razak Research Centre (TARRC) from 2010 to 2011 as well as a Past President of the Malaysian Rubber Glove Manufacturers Association (MARGMA) from 2009 to 2011. He was also the Chairman of the Organising Committee of the International Rubber Glove Conference and Exhibition (IRGCE) in 2014 and 2016.

Board Committee(s) (as at 12 November 2021):

Qualifications:• Bachelor of Science Degree in Physics

with Honours from University of Malaya, Malaysia, 1982

• Master of Business Administration from Sul Ross State University, Texas, United States of America, 1985

• Doctor of Philosophy in Management from University of Selangor, Malaysia, 2015

• Honorary Doctorate in Business Administration from Oklahoma City University, United States of America, 2016

• Honorary Doctorate in Entrepreneurship from Management & Science University, Malaysia, 2018

• Honorary Doctor of Philosophy (PhD) Degree in Business Management from University of Cyberjaya, Malaysia, 2020

• Honorary Professor from University of Cyberjaya, Malaysia, 2020

Present Directorship(s):• Listed entity:

Tropicana Corporation Berhad• Other public company:

Trustee of Top Glove Foundation

Board Committee(s) (as at 12 November 2021):Nil

Qualifications:• Bachelor of Law Degree from

University of London, United Kingdom, 1991

• Bachelor of Commerce Degree from University of New South Wales, Australia majoring in Accounting, Finance and Systems, 1983


Nil• Other public company:

• Trustee of Top Glove Foundation• Trustee of Malaysian Rubber Council

EXECUTIVE CHAIRMAN MANAGING DIRECTOR

ESOSC ESGPC

Nationality Malaysian

Age/Gender 63/Male

4 September 2000 (Founder)

8 January 2020

21 years 2 months

Date of Appointment

Date of Last Re-election

Length of Service (as at 12 November 2021)


Age/Gender 62/Male

15 October 2003

7 April 2009

8 January 2019

18 years

Date of Appointment

Date of Re-designation as Managing Director

Date of Last Re-election


Meeting Attendance in FY2021:

BOD BRC

10/10 2/3


BOD

10/10

Board Committee Key: Board Committee Chairman

Board Committee Member

BAC Board Audit CommitteeBRC Board Risk Committee

BSC Board Sustainability CommitteeBNRC Board Nomination and Remuneration Committee

ESOSC Employees’ Share Option Scheme CommitteeESGPC Employees’ Share Grant Plan Committee

Note: He is a healthy vegetarian.

BOARD OF DIRECTORS

18 19



BOARD OF DIRECTORSBOARD OF DIRECTORS

DATO’ LIM HAN BOON TAN SRI RAINER ALTHOFF

Present Appointment(s):• Independent Non-Executive Director of LBS Bina Group Berhad since

August 2020• Founder/Director of Envo BPO Services Sdn. Bhd.• Advisor to Outsourcing Malaysia, a Chapter of PIKOM, the National ICT

Association, Malaysia • Board Member of Kuen Cheng High School, Kuala Lumpur

Past Appointment(s) and Working Experience:Dato’ Lim started his career in the Chartered Accounting firm of Binder Hamlyn (now known as BDO). Subsequently, Dato’ Lim spent more than twenty (20) years in the transportation and maritime logistics industry having worked for Kontena Nasional Berhad, Northport (Malaysia) Berhad, NCB Holdings Berhad as well as Kannaltec Berhad.

He is also no stranger in the global business services and outsourcing industry having spent more than fifteen (15) years in this line, being the founder and Chairman of Envo BPO Services Sdn. Bhd.

Present Appointment(s):• Member of PBEC, Pacific Basin Economic Council since 2019• Executive Council Member, The Economic Club of Kuala Lumpur since 2018• Chief Executive Officer of ALC International Sdn. Bhd., Kuala Lumpur since 2009• Member of Rotary Club Kuala Lumpur DiRaja since 2001

Past Appointment(s) and Working Experience:Tan Sri Rainer has more than fifty (50) years of experience in the fields of electrical engineering and electronics with additional knowledge in IT projects, mobile internet, factory automation, sustainability, digitization and digitalisation. He was the President and Chief Executive Officer of Siemens Malaysia Sdn. Bhd., Petaling Jaya for more than eleven (11) years until 2009 and also the spokesperson (Board Member) of Siemens AG for all Siemens operations and its affiliated companies in Malaysia.

He was the Non-Executive Chairman of Total Sports Asia Sdn. Bhd. from 2019 to 2020 and the (Non-Administrative) Honorary Chairman of the Brand Laureate World Foundation, Petaling Jaya from 2016 to 2020. He was also an Independent Director of Proton Holdings Berhad, Subang Jaya from 2009 to 2014, a Member of Board of Directors Group Lotus PLC from 2010 to 2011, the Chairman of Nokia Solutions and Networks Sdn. Bhd., Kuala Lumpur and Chairman of Coriant Malaysia Sdn. Bhd., Kuala Lumpur.

He was the Chairman of the Supervisory Board of Lauda Interactive AG, Darmstadt/ Germany from 2016 to 2019 and Senior Advisor for Digitalization to T-Systems Malaysia Sdn. Bhd., Cyberjaya. He served as a Trustee of the Jeffrey Cheah Foundation for nine (9) years until 2019 and the Executive Chairman of RaceRoom Entertainment Sdn. Bhd for four (4) years.

Tan Sri Rainer received the Honorable Cross of Merits from the President of Germany in 2003.


Qualifications:• Master of Business Administration

Degree from the University of South Australia, Australia since 2000

• Fellow of the Association of Chartered Certified Accountants, United Kingdom since 1989

• Chartered Accountant of the Malaysian Institute of Accountants since 2001

• Member of the Chartered Management Institute, United Kingdom since 2006

• Attended the Harvard Business School Alumni Club of Malaysia Senior Management Development Program in 2002


LBS Bina Group Berhad• Other public company:

Nil


Qualifications:• Master’s Degree (Diploma)

in Electronics and Electrical Engineering from Bergische University of Wuppertal, Germany, 1968

• MBA General Management from Duke University, United States of America, 2000


Nil• Other public company: Nil

SENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR

INDEPENDENT NON-EXECUTIVE DIRECTOR (Malaysia Permanent Resident)

BRC


BOD BAC BRC BNRC BSC

10/10 9/9 8/8 5/5 1/1


BOD BRC

10/10 8/8


Age/Gender 64/Male

21 February 2011Date of Appointment

8 January 2019

Date of Re-designation as Senior Independent Non-Executive Director

6 January 2021Date of Last Re-election

10 years 8 months


BAC BRC BNRC

ESOSC ESGPC

Nationality German

Age/Gender 75/Male

14 March 2013Date of Appointment


8 years 7 months


20 21




LIM HOOI SIN LIM CHEONG GUAN

Present Appointment(s):Nil

Past Appointment(s) and Working Experience:Mr. Lim Hooi Sin spent fourteen (14) years of his career with MetLife Financial Services, one of the largest insurance and financial services companies in the USA. Prior to this appointment, he was a Management Trainee, Associate Branch Manager, Regional Marketing Specialist, Agency Director and a Director of Asian Markets. His experiences include product development, marketing, recruiting, training and supervision of a large highly productive sales force. He was previously a Director of AAAA (Arizona Asian American Association).

He has more than twenty (20) years of experience in the USA glove market, having been the founder of TG Medical (U.S.A.), Inc. (a wholly-owned subsidiary of the Company) in 1994 and served as its Executive Vice President from 2001 to 2005 and President since 2005. He is also the Administrator (President) of Kevenoll Do Brasil (a wholly-owned subsidiary of the Company since 2019) and sits on the Board of several private limited companies.

Family Relationship with any Director(s) and/or Substantial Shareholder(s) of the Company:

Brother of Tan Sri Dr Lim Wee Chai and brother-in-law of Puan Sri Tong Siew Bee, both of whom are Directors and Substantial Shareholders of the Company.

Present Appointment(s):• Head of the Sustainability Steering Group since 2019• Chairman of the Risk Management Committee since 2014• Advisor to the Administrative Committee of Top Glove Foundation since

2008

Past Appointment(s) and Working Experience:Mr. Lim Cheong Guan began his career as a Graduate Audit Trainee with Price Waterhouse (now known as PricewaterhouseCoopers) in April 1990 and subsequently held various key positions in a number of public listed companies in Malaysia whose business activities spanned over manufacturing, plantation, trading and property development.

He was the Assistant Group Accountant of Timbermaster Industries Berhad (now known as Leweko Resources Berhad) from May 1996 to June 1999 and the Financial Controller of Tanah Emas Corporation Berhad (now known as Golden Land Berhad) from June 1999 to July 2004.


Qualifications:• Charter Financial Consultant

Diploma from American College, Pennsylvania, United States of America, 1995

• Master’s Degree in Business Administration (Specialised in Applied Statistics) from Arizona State University, United States of America, 1986

• Bachelor of Science Degree in Management Science from Oklahoma State University, United States of America, 1985



Nil


Qualifications:• Member of Malaysian Institute of

Certified Public Accountants since 1994

• Member of Malaysian Institute of Accountants since 1993

• Bachelor’s Degree in Accounting, University of Malaya, Malaysia, 1990



EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR


BOD

10/10


BOD BRC

10/10 3/3


Age/Gender 59/Male

4 September 2000Date of Appointment


21 years 2 months



Age/Gender 56/Male

31 August 2006Date of Appointment


15 years 2 months


ESOSC ESGPC

22 23



PUAN SRI TONG SIEW BEE DATUK NORIPAH KAMSO

Present Appointment(s):• Deputy Chief Executive Officer of Tzu Chi Foundation Malaysia

Past Appointment(s) and Working Experience:Puan Sri Tong has more than ten (10) years of experience working in the banking industry in the information technology field.

She was the System and Methods Officer and Analyst Programmer of United Overseas Bank Berhad from 1990 to 1995 and joined Utama Bank Berhad from 1995 to 1998 in the retail banking system.

Family Relationship with any Director(s) and/or Substantial Shareholder(s) of the Company:

Spouse of Tan Sri Dr Lim Wee Chai and sister-in-law of Mr. Lim Hooi Sin, both of whom are Directors and Substantial Shareholders of the Company. She is also the mother of Mr. Lim Jin Feng.

Present Appointment(s):• International Advisory Board of Islamic Finance News (IFN)• Corporate Advisor of Pantas Software Sdn Bhd

Past Appointment(s) and Working Experience:Datuk Noripah began her career with Urban Development Authority (UDA) in 1980. In 1983, she joined Bank of Commerce (M) Berhad (CIMB Group) and held various key positions in the CIMB Group until 2014 where her last position was as Advisor to CIMB Group Islamic Banking Division. She was formerly an Adjunct Professor to School of Economics, Finance and Banking, UUM and the Board of Trustees of the International Council of Islamic Finance Educators (ICIFE).

She was the Chief Executive Officer of CIMB Futures Sdn. Bhd. from 1996 to 2012, the Chief Executive Officer of CIMB Principal Asset Management Berhad from 2005 to 2013. She was the founding Chief Executive Officer of CIMB Principal Islamic Asset Management Sdn. Bhd. from 2008 to 2012 where she successfully established a global platform for the firm to extend its reach to UK, Europe, GCC, Asia, USA and Australia. Datuk Noripah was a former Advisor of CIMB Islamic from 2013 to 2014.

Datuk Noripah was also the Past President of the Malaysian Futures Brokers Association (MFBA). She was formerly a Global Practitioner in Residence in Principal Financial Group Centre for Global Citizenship, USA in 2015. In the academic year 2016/2017, she was a Fellow in Islamic Finance in Oxford Center for Islamic Studies (OCIS), an independent centre of the University of Oxford, United Kingdom and was an Adjunct Professor for Faculty of Business Management, UiTM. She was the Chairman of Bank Kerjasama Rakyat Malaysia (being one of the Top 10 largest Islamic Banks in the world) and the Chairman of Yayasan Bank Rakyat from 2018 to 2020.



from Sul Ross State University, Texas, United States of America, 1985

• Bachelor of Science Degree with Honours in Computer Science from University of Science, Malaysia, 1983



Trustee of Yayasan Pendidikan Tzu Chi Malaysia



from Marshall University, Huntington, West Virginia, United States of America, 1981

• Bachelor of Science Degree from Northern Illinois University, Dekalb, Illinois, United States of America, 1980

• Diploma in Business Studies, Institute Technology MARA, Malaysia, 1978


Nil• Other public company: Swift Haulage Berhad

NON-INDEPENDENT NON-EXECUTIVE DIRECTOR

INDEPENDENT NON-EXECUTIVEDIRECTOR


BOD BSC

10/10 4/5


BOD BRC BAC BSC BNRC

10/10 8/8 7/9 5/5 1/1


Age/Gender 63/Female

4 September 2000 (Co-Founder)

Date of Appointment


21 years 2 months


BSC





6 years 7 months


BRC BAC

ESGPCESOSC

BSC


24 25



SHARMILA SEKARAJASEKARAN

Present Appointment(s):• Consultant in the Legal, Operations and Industry Development Departments

of the RIM Group.• Partner of Jerald Gomez & Associates since 2011, areas of practice are

Intellectual Property, Banking Litigation, Corporate Advisory, Estate Claims and Family Law matters.

Past Appointment(s) and Working Experience:Ms. Sharmila began her career as a legal assistant in 1998 with Messrs. Chooi & Co., and joined Messrs. Tay & Partners as a Senior Legal Assistant in the Intellectual Property Department in 2004.

She joined the RIM Group in 2005 and held various positions in the RIM Group.


Qualifications:• Barrister-At-Law, Middle Temple,

United Kingdom since 1996• Advocate & Solicitor, High Court of

Malaya, Malaysia since 1998• B.A. Law & Economics (Honours),

Keele University, United Kingdom, 1993

• Adjucator, Asian International Arbitration Centre (Malaysia) (formerly Kuala Lumpur Regional Centre for Arbitration)


Kumpulan Perangsang Selangor Berhad

• Other public company: Nil



BOD BSC BAC BNRC

10/10 5/5 9/9 5/5





6 years 7 months


BSC BAC BNRC

ESOSC ESGPC

DATUK DR. NORMA MANSOR

Present Appointment(s):• Director of Yayasan MEA• President of Malaysian Economic Association • Director of Social Wellbeing Research Centre of University of Malaya

Past Appointment(s) and Working Experience:Datuk Norma was a professor at the Faculty of Economics and Administration of University of Malaya from 2000 to 2017. She held the position as the Executive Director of International Institute of Public Policy and Management from 2001 to 2004 and was subsequently appointed as Dean of the Faculty of Economics and Administration from 2004 to 2009.

Her past appointment includes the Ragnar Nurkse Visiting Professor of the School of Innovation and Governance at Talinn University of Technology in Estonia in 2014. She was also seconded to the Prime Minister’s Department as Secretary to the National Economic Advisory Council (NEAC) from 2009 to 2011.


Qualifications:• Doctor of Philosophy (PhD) from

University of Liverpool, 1985• Master of Public Administration

(MPA) from University of Liverpool, 1981

• Bachelor of Economics (Honours) Degree from University of Malaya, 1980





BOD BNRC BRC

10/10 5/5 8/8



12 May 2017Date of Appointment


4 years 6 months


BNRC BRC ESOSC

ESGPC


26 27



AZRINA ARSHAD

Present Appointment(s):• Project Director of Zalaraz Sdn. Bhd.• Director and Partner of I-Partnership (M) Sdn. Bhd. (formerly known as

Woods Bagot (M) Sdn. Bhd.) since 1997• Freelance Project Architect & Project Manager of FOCUS Architects and

Urban Planners Sdn. Bhd.

Past Appointment(s) and Working Experience:Puan Azrina started her career in 1993 as an Assistant Architect in Arca-3 Arkitek Sdn. Bhd., Kuala Lumpur and thereafter worked in various capacities in several architectural firms such as FOCUS Architects and Urban Planners Sdn. Bhd. in Selangor. She was also a part-time lecturer in Universiti Technology Malaysia (UTM) in year 1994.

Puan Azrina was appointed as a Non-Independent and Non-Executive Director of Sanichi Technology Berhad from January 2010 to August 2011. She was the Founder and Director of the Teapot Café Sdn. Bhd. from 1996 to 2012 and the Teapot Deli since 11 February 2016. She has given talks organised by the American Hardwood Export Council in Guangzhou and Chengdu in 2005.


Qualifications:• Post Graduate Diploma in

Architecture (LAM, PAM, RIBA Part II), Oxford Brookes University, United Kingdom, 1992

• Diploma in Architecture (LAM, PAM, RIBA Part I), Universiti Institut Teknologi MARA, Malaysia, 1990



Trustee of Yayasan Arshad Ayub



BOD BAC BSC BNRC

10/10 9/9 5/5 4/4


BOD

10/10



8 January 2019Date of Appointment


2 years 10 months


BAC BSC BNRC

LIM ANDY

Present Appointment(s):• Honorary Consul General to the Republic of Lithuania in Singapore.• Founder and Chairman of private equity firm Tembusu Partners Pte. Ltd.• Chairman of Viking Offshore & Marine Ltd., a public listed company in

Singapore.• Executive Director of Associated Leisure International Pte. Ltd., a family

holding company. • Chairman of MoneyWorld group of companies, a leading foreign

exchange player with offices in China, Hong Kong and Singapore.

Past Appointment(s) and Working Experience:Mr. Lim Andy’s past board appointments include President of the Enterprise 50 Association, Board of Trustee of Honour (Singapore) Limited, Chairman of Alpha Singapore and Council Member of the National Council Against Drug Abuse (NCADA). He was a member of the Board of Trustees of the Home Affairs Uniformed Services (HUS) INVEST Fund till 30 June 2021.


Qualifications:• Master’s Degree in Business

Administration, University of California at Los Angeles, 1989

• Bachelor’s Degree in Engineering, University of Cambridge, United Kingdom (First Class Honours), 1979




Nationality Singaporean

Age/Gender 64/Male

8 January 2020Date of Appointment


1 year 10 months


Note:Save as disclosed, all other Directors have no family relationship with any Director(s) and/or Substantial Shareholder(s) of the Company, have no conflict of interest with the Company, have not been convicted of any offence within the past 5 years other than traffic offences, if any, and have no public sanction or penalty imposed by the relevant regulatory bodies during the financial year.


28 29



1. any directorship in public companies and listed issuers;

2. any family relationship with any directors and/or major shareholders of the Company;

3. any conflict of interest with the Company;

Notes:Save as disclosed in the profile of Board of Directors and above, none of the key senior management has:

4. any conviction for offences (other than traffic offences) within the past five (5) years; and

5. any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.

EXECUTIVE COMMITTEE

The Executive Committee is headed by the Executive Chairman, Tan Sri Dr Lim Wee Chai and consist of the following key senior management:

Please refer to pages 16, 17, 20 and 21 of this Integrated Annual Report for the profiles of Tan Sri Dr Lim Wee Chai, Dato' Lee Kim Meow, Lim Hooi Sin and Lim Cheong Guan.

6

2

6

10

1

7

4

Up to 9 years More than 9 years

Malaysian Foreigner

Female Chinese 50 to 59

Malay 60 to 69

Male Indian 70 & above

Others

ED NINED INED

AN EMPOWERED BOARD

Group Chief Executive Officer / Managing Director

Corporate governance, risk management and internal controls

Accounting and financial reporting

Other corporate experience

Sustainability

Human capital or talent management

International or regional business experience

Operations and Quality Management

Industry experience

Information technology or digital strategy

Legal and regulatory

Public sector or governmental body experience

75%

73%

The current composition of Board Members comprised appropriate mix of Skills and Experience as follows:

LENGTH OF TENURE (AS AT 12 NOVEMBER 2021)

GENDER ETHNICITY AGE

NATIONALITY

COMPOSITION

70%

70%

67%

60%

60%

62%

65%

62%

67%

67%

57

7

3

11

4

1

7

MELISSA CHEOH HOOI GAIKDirector, Financial Controller

Nationality: Malaysian

Qualification(s):MBA (London), International Business

Experience:More than 25 years of experience in the banking and finance industry

Date of Appointment:15 May 2019

Age/ Gender:48/ Female

NG YONG LINChief Operating Officer, Joint Manufacturing Council


Qualification(s):Bachelor of Engineering, Computer Aided Design/ Manufacturing

Experience:More than 10 years of experience in the glove manufacturing industry

Date of Appointment:1 June 2009

Age/ Gender:36/ Male

HUE KON FAHExecutive Director (Subsidiary), Joint Manufacturing Council


Qualification(s):BA (Honours) Economics, MMIM, DPRIM

Experience:More than 38 years of experience in the manufacturing field

Date of Appointment:9 January 2003


LEW SIN CHIANGSenior General Manager, Joint Manufacturing Council


Qualification(s):Bachelor of Science, Industrial Chemistry


Date of Appointment:16 March 1998

Note:Mr. Lew is the brother-in-law of both Tan Sri Dr Lim Wee Chai and Puan Sri Tong Siew Bee.


AARON LAM YAT HINGSenior General Manager, Marketing


Qualification(s):Diploma in Material Engineering

Experience:More than 20 years of experience in the marketing field

Date of Appointment:

17 January 2011


WONG CHONG BANChief Operating Officer, Joint Manufacturing Council


Qualification(s):Bachelor of Science, Chemistry


Date of Appointment:9 March 1998


Standing (From Left to Right):

Melissa Cheoh Hooi Gaik, Wong Chong Ban, Lim Cheong Guan, Lim Hooi Sin, Ng Yong Lin, Lew Sin Chiang, Hue Kon Fah, Aaron Lam Yat Hing

Seated (From Left to Right): Tan Sri Dr Lim Wee Chai, Dato’ Lee Kim Meow

Current Board SkillsetBoard

Average Rating

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

30 31



Melissa Cheoh Hooi GaikDirector, Financial Controller

Wong Chong BanChief Operating Officer,

Joint Manufacturing Council

Hue Kon FahExecutive Director (Subsidiary),


Ng Yong LinChief Operating Officer,


Aaron Lam Yat HingSenior General Manager,

Marketing

Ravi A/L SupramaniamGeneral Manager,

Manufacturing

Chookiad UsahaSenior General Manager,

Manufacturing

Leong Chew MunSenior General Manager,

Marketing

Tan Kian GuanGeneral Manager,

Information Technology

Dorothy ResselV.P. Global Marketing & Sales,

Member of the Management Board

Lim Hwa ChuanSenior General Manager,


Johnny Loy Joo LingSenior General Manager,

Marketing

Apple Lau Wan PengGeneral Manager,

Marketing

Matthew Ong Guan HengSenior General Manager,

Compliance

Noor Akilah SaidinGeneral Manager,

Regulatory Affairs System & Conformance and Corporate Integrity

Wilawan SakulsongboonsiriDeputy General Manager,

Finance

Jack Lim Lung FuiGeneral Manager,

Internal Audit

Loke Kean MunGeneral Manager,

Group Human Resources

Kelvin Lee Kok SengGeneral Manager,

Manufacturing

Ng Seow WeiDeputy General Manager,

Manufacturing

Tan Lee SemDeputy General Manager,

Marketing

Mansor Bin DaudDeputy General Manager,

Engineering

Siah Ming LeiSenior Manager,

Marketing

Michelle Voon Wei-AnnDeputy General Manager,

Corporate Communications

Noraziah MahmudSenior General Manager,

Marketing

Jeremy Liew Say KeongSenior General Manager,

Finance

Lew Sin ChiangSenior General Manager,


John Wu Kin YeapSenior General Manager,

Manufacturing

Ong Ah ChyeGeneral Manager,

Manufacturing

Lee Shin HwaiGeneral Manager,

Manufacturing

Tan Chee HoongGeneral Manager,

Manufacturing

Michelle Ang Peck KeanGeneral Manager,

Sourcing & Procurement

Ken SooSenior General Manager

cum Assistant to Chairman

Puon Tuck SengGeneral Manager, Operation Audit

Yorck von KriesGeneral Manager,

Marketing

Dr. Kiwi Lim Keuw WeiGeneral Manager,

Research & Development

Chang Chee KeongGeneral Manager,

Tax

Chong Fei MengGeneral Manager,

Marketing

Florence Teng Gaik KimGeneral Manager,

Logistics & PM Purchasing

Aileen Choh Ai YingVice President,

Marketing

Chen Chew LanGeneral Manager,

Finance

Thomas BuriNational Sales Manager

Phattaraporn FueangthongDeputy General Manager,

Finance

Lim Jin FengDeputy General Manager,

Marketing

Kassy Lim Keat SeeDeputy General Manager,

Corporate Services

Loo Sun NooiGeneral Manager,

Group Quality Assurance

Stephanie Thong Pei LingGeneral Manager, Property & Leasing

SENIOR MANAGEMENT TEAM SENIOR MANAGEMENT TEAM

Chia Hock YiDeputy General Manager,

Engineering

32 33



IN CONVERSATION WITH THE EXECUTIVE CHAIRMAN TAN SRI DR LIM WEE CHAI


The financial year 2021 has been a rewarding and also challenging time for Top

Glove, the world’s largest manufacturer of gloves. Its Founder and Executive

Chairman, Tan Sri Dr Lim Wee Chai is no stranger to both the peaks and valleys of

doing business, and more importantly, has an admirable track record of successfully

steering his company through the most difficult periods to emerge stronger. As

the company marks its 30th anniversary this 2021, Tan Sri shares his thoughts on

the financial year that was, as well as his outlook for a post pandemic, post WRO

era, answering some of the most pressing questions of the day with his signature

frankness, honesty and transparency.

Q1 FY2021 was a landmark year with unsurpassed financial results and Top Glove has expressed the desire to share its success with stakeholders. How was this achieved?

In addition, we also invested in strengthening our Environmental, Social and Governance (ESG) initiatives while creating reserves to insulate our business and ensure we remain sustainable and well positioned to continue contributing positively.

Our commitment to create value for all our stakeholders is something we will not waver on, in good and trying times. In a year as extraordinary as FY2021, we are very pleased to have been in a position to contribute positively and more generously in different ways to our many stakeholders.

Towards rewarding our public shareholders and investors, we were delighted to increase the frequency of our dividend payments from a semi annual basis to a quarterly basis, in addition to which we also declared a special dividend of 20% over and above the normal dividend paid out, which is 50% in line with our Dividend Policy. The total dividend for FY2021 amounted to approximately RM5.2 billion or 65.1 sen per share.

In challenging times as these, we were privileged to contribute RM2.2 billion in corporate income tax. This is our contribution towards nation building and promoting sustainable economic growth. We were also able to extend our support to communities in need, contributing RM191 million in FY2021. Amongst the causes we had the honour of supporting were the Malaysia COVID fund launched by the Government of Malaysia and a community food aid initiative called Lend A Hand (LAH). In addition, we donated gloves, face masks, hand sanitisers and oxygen concentrator devices in Malaysia and abroad.

Our ongoing expansion plans also enabled us to continue providing gainful employment, thus narrowing the country’s unemployment gap as a result of the pandemic. In FY2021, we recruited 9,720 new hires, close to 3,000 of whom were Malaysian Technical and Vocational Education and Training (TVET) graduates and skilled workers as we further automate and digitalise our operations.

The total dividend for FY2021 amounted to approximately RM5.2 billion or 65.1 sen per share.

34 35



Q4

We are very pleased that our concerted efforts to improve have resulted in the Modification of the Finding and look forward to resuming delivery of our gloves to the U.S., especially to medical frontliners and first responders, towards protecting their health and safety during these extraordinary times.

Our journey over the past 14 months has been a deeply meaningful one from which we have emerged a better and stronger Top Glove. It has been challenging at times, but we view the experience positively and as an opportunity to strengthen our ongoing ESG initiatives. Following this, we are pleased that in January 2021, our operations were verified by an independent third party international U.K. consultant to be free of systemic forced labour. In April 2021, Top Glove had completed remediation payments of some RM150 million to over 13,000 migrant workers who had paid recruitment fees and related costs to recruitment agents. Top Glove also made substantial investments to improve employee accommodations and implemented an independently managed employee grievance helpline.

On 10th September 2021, the Withhold Release Order (WRO)/Finding imposed by the U.S. Customs and Border Protection (CBP) on disposable gloves made by Top Glove’s facilities in Malaysia was lifted/modified after 14 months. How does it feel? How has the experience impacted Top Glove and what changes have been put in place since? What are your immediate priorities going forward?

However, our journey is far from over. The immediate task ahead is to recover lost ground as a result of the inability to export to the USA. We will need to gain back customers and market share, and rebuild trust with our stakeholders which we are working hard towards. We will continue to pursue our dual primary listing on the Hong Kong Stock Exchange (HKEX). The resubmission of our A1 application was made on 28 October 2021 and we look forward to updating you on our progress in due course. Longer term, sustainability will continue to rank high on our business agenda and we will keep improving our efforts in this very significant area to make our ESG practices, especially our labour practices even more robust.


In January 2021 our operations were verified by an independent third party international U.K. consultant to be free of systemic forced labour.

Q3

All businesses face competition, especially international business. We are a global public listed company and cannot expect to be free of competition. The strength of our business locally and globally vis a vis competition that arises will be key to attracting investment and investors. Notwithstanding, we are of course mindful that the glove business has been a very attractive industry to be in, particularly during a pandemic when there is a surge in glove usage. In such an environment, we expect competition to intensify and new players to emerge.

We welcome healthy competition as it makes us and the industry more efficient, edging out weaker practices and enhancing both performance and players. This also presents M&A opportunities for us.

However, global glove demand is expanding and still growing yearly even in a post pandemic era from heightened health and hygiene awareness. Following this, we believe that the increase in demand will be sufficient to absorb the surplus in supply. Any oversupply and pricing pressure would be temporary.

Are you concerned about the intensifying competition both on the Malaysian and international fronts?

In any case, Top Glove has several advantages which gives us an edge over our competitors in the long term. We offer a highly diversified glove range comprising nitrile, natural rubber, vinyl and surgical gloves, and are also geographically diverse in terms of our customer and manufacturing base. Our production capacity of 100 billion gloves per annum, the largest amongst all glove manufacturers globally, also positions us to accommodate large orders from distributors. Most significantly, we have a team of talented people, which includes a strong R&D team and customer centric Marketing personnel.

Competition is an external factor which is not within our control. However, we continue to plan and strategise internally, so we are able to withstand headwinds when they come. I believe that with our Business Direction of producing high quality gloves at an efficient low cost and focus on staying healthy, we will successfully mitigate and navigate any period of oversupply, just as we have done before.


Q2

We have gone through several cycles comprising both good and challenging times, since we started the business 30 years ago. We are heartened that while good times do not last, neither do tough times. Moreover, our strong foundation which has been built over the last 3 decades, will enable us to take on challenges and overcome them one by one. With technological advances and the speed at which information travels now, business cycles change very quickly, with each business cycle lasting for 1 to 3 years only. The challenge and opportunity for businesses now is to be adaptable to the rapidly changing environment.

The softening demand and ASPs was not unexpected and we had prepared for it by creating reserves during the period of strong growth. Of course, we continue to monitor the changing landscape and will respond and align our strategy and production accordingly. That being said, demand for gloves as an essential item in the healthcare sector is driven by strong market needs and this continues to grow steadily, albeit not as rapidly as during the height of the pandemic. Glove demand

With the softening of glove demand and ASPs (average selling prices), what are Top Glove’s plans to mitigate the effects and how do you view industry prospects going forward?

was already growing steadily pre pandemic at a rate of 10% per annum and is likely to stabilise at a higher level even after the pandemic recedes owing to elevated awareness and hygiene levels.

Naturally, factors such as demand and selling prices are external factors beyond our control. We cannot and do not depend on these to perform well. In order to perform well sustainably and offer value add to our stakeholders, we focus on internal factors which are within our control such as quality and efficiency. Most importantly, I believe our foundation must be strong and built on our “3 Healths”: Mental Health, Physical Health and Financial Health. When these factors are in place, we are well positioned to weather tough times and outlast any challenge.

Q5

We are deeply committed to creating sustainable value for our shareholders. This is why we always encourage our investors to take a long term view to investing in Top Glove and not to focus on share price as the sole indicator. While the future is unpredictable, we believe our past performance is a helpful indicator of the resilience of our company. For the past 20 years since our listing on Bursa Malaysia, we have successfully delivered a CAGR (Compound Annual Growth Rate) of 27% for Revenue and 36% for Profit, reflective of the glove industry’s strong fundamentals and solid long term potential. We also have a good track record of delivering total shareholders return of approximately 22,200%, over the last 20 years since our listing as at 31 August 2021.

Top Glove’s share price has seen a sharp and rapid decline from its peak of close to RM9.50 per share just a year ago. What are your comments on this development to your shareholders?

3 Healths

Physical Health

Mental Health

Financial Health

36 37



Q7 Your Board has come under heavy criticism by some investors, with a few institutional investors voting against the reelection of six independent directors at Top Glove’s AGM in January 2021. What has changed since then in terms of Board oversight and involvement?

Footnotes:Read more about our commitment to ESG in the section titled Creating Sustainable Value on page 88.

Q6

It is true that every year and every day must be an ESG year or day. Top Glove has a theme for each year which is selected based on a particular area of importance which we want to focus on. However, this does not mean we will not be focusing on ESG after 2021 is over. In fact, we have declared 2021 The Year of ESG, marking the start of greater efforts to come, with the commitment that henceforth ESG considerations will be central to our business.

You have declared 2021 The Year of ESG (Environmental, Social & Governance) for Top Glove. Shouldn’t every year be The Year of ESG especially for a large company like Top Glove? What is so different about this year?

our business. More significantly, from financial year 2021 onwards, 40% of Group KPIs are linked to ESG metrics for the Top 5 key focus areas, which include Product Quality and Safety, Occupational Health and Safety, Talent Retention, Human Rights and Labour Practices and Carbon Emission Reduction.

As an international company, sustainability has always been at the heart of our business and investing our resources towards safeguarding the environment, advancing ethical business, building communities and impacting lives positively has been our priority, year after year. Reflecting the growing prominence of ESG globally, we declared 2021 to be Top Glove’s Year of ESG to create stronger awareness internally at all levels, enabling a sharper company wide focus on this very important area.

Profit should not come at the expense of people or planet and we are ensuring our systems and processes enable sustainability to be well integrated into every aspect of

We know there is always more we can do and will keep improving our ESG practices so that we continue to deliver excellence not just as a business but as a corporate citizen, in line with our commitment to doing well by doing good, beyond The Year of ESG.

TOP 5

KEY FOCUS AREAS

Product Quality and

Safety

Occupational Health and

Safety

Talent Retention

Carbon Emission Reduction

Human Rights and Labour Practices



I am proud of our Board. This has been a challenging time for them and they have continued to discharge their duties responsibly, performing with grace under fire.

The Board including our Independent Directors (IDs), meets regularly to discuss the company’s key issues, and has been particularly active in engaging with management and employees on issues relating to risk management, audit, ESG as well as human resources. Since March 2021, our IDs have also held quarterly engagements with worker representatives to better understand issues faced and to provide support and counsel for concerns raised. They have also taken an active role in ensuring facilities provided for our employees comply with all market jurisdiction requirements, including aligning our business principles to the Business and Human Rights agenda.

Our IDs’ hands on involvement is exemplary, going above and beyond governance requirements, including providing guidance on various important matters such as the CBP WRO/Finding before it was lifted/modified, management of COVID cases, compliance with Akta 446 (Malaysia’s local workers accommodation regulations), instituting a more structured Share Buyback Scheme, as well as visits to our onsite vaccination centre and employee hostels where they engaged directly with our factory employees. Moreover, they have been instrumental in setting the vision and strategic direction of Top Glove for the years ahead through scenario and crisis analysis and planning. In addition, our IDs frequently participated in engagements with external bodies, such as the Human Rights Commission of Malaysia (SUHAKAM) and various climate change subject matter experts to discuss net zero target setting.

Environmental Social Governance

The Board including our Independent Directors (IDs), meets regularly to discuss the company’s key issues, and has been particularly active in engaging with management and employees on issues relating to risk management, audit, ESG as well as human resources.

Top Glove’s Directors visited the workers’ hostel in Banting

Top Glove has invested in solar power projects towards reducing carbon emissions

38 39



PERBUALAN BERSAMA PENGERUSI EKSEKUTIFTAN SRI DR LIM WEE CHAI


Tahun kewangan 2021 merupakan masa yang bermanfaat dan mencabar bagi

Top Glove, pengeluar sarung tangan terbesar di dunia. Pengasas dan Pengerusi

Eksekutif, Tan Sri Dr Lim Wee Chai tidak asing lagi dengan puncak dan lembah

perniagaan, dan yang lebih penting, mempunyai rekod prestasi yang mengagumkan

kerana berjaya membawa syarikatnya melalui tempoh yang paling sukar untuk

muncul lebih kuat lagi. Seketika syarikat menandakan ulang tahun ke-30 pada tahun

2021 ini, Tan Sri mengkongsikan pendapatnya mengenai tahun kewangan yang lalu

dan juga prospek pasca pandemik, pasca era WRO, dan menjawab beberapa soalan

penting dengan kejujuran dan ketelusan.

Q1 TK2021 adalah tahun luar biasa dengan keputusan kewangan yang tidak dijangka dan Top Glove telah menyatakan hasrat untuk berkongsi kejayaannya dengan pihak berkepentingan. Bagaimanakah ini tercapai?

Hand (LAH). Selain itu, kami menyumbangkan sarung tangan, pelitup muka, cecair pembasmi kuman dan alat penularan oksigen di Malaysia dan luar negara.

Pelan pengembangan syarikat yang berterusan juga membolehkan kami menyediakan peluang pekerjaan secara berterusan, lalu mengurangkan jurang pengangguran negara akibat pandemik ini. Pada TK2021, kami mengambil 9,720 pekerja baru, hampir 3,000 daripadanya adalah graduan Pendidikan dan Latihan Teknikal dan Vokasional Malaysia (TVET) dan pekerja mahir sambil mengautomasikan dan mendigitalkan operasi kami.

Malah, kami juga melabur dalam mengukuhkan inisiatif Alam Sekitar, Sosial & Tadbir Urus (ESG) kami lalu menciptakan simpanan untuk melindungi perniagaan dan memastikan kami kekal mampan dan berada dalam kedudukan yang baik untuk terus menyumbang secara positif.

Jumlah dividen bagi TK2021 berjumlah sekitar RM5.2 bilion atau 65.1 sen sesaham.

Komitmen kami untuk menciptakan nilai bagi semua pihak berkepentingan adalah sesuatu yang kami tidak akan abaikan, pada masa yang senang ataupun susah. Bagi tahun yang luar biasa seperti TK2021, kami amat berbesar hati untuk berada dalam kedudukan untuk menyumbang secara positif dan lebih murah hati kepada pelbagai pihak berkepentingan kami.

Sebagai penghargaan kepada para pemegang saham dan pelabur awam kami, kami gembira untuk meningkatkan kekerapan pembayaran dividen daripada setengah tahunan kepada suku tahunan, di samping mengisytiharkan dividen khas sebanyak 20% sebagai tambahan kepada dividen biasa, iaitu 50% sejajar dengan dasar dividen kami. Jumlah dividen bagi TK2021 berjumlah sekitar RM5.2 bilion atau 65.1 sen sesaham.

Dalam masa yang mencabar seperti ini, kami juga berbesar hati untuk menyumbang RM2.2 bilion cukai pendapatan korporat. Ini adalah sumbangan kami terhadap pembangunan negara dan mendorong pertumbuhan ekonomi yang mampan. Kami juga dapat menghulurkan sokongan kepada komuniti yang berkeperluan, menyumbang RM191 juta pada TK2021. Diantara program yang kami berasa terhormat untuk menyokong adalah Tabung COVID Malaysia yang dilancarkan oleh Kerajaan Malaysia dan inisiatif bantuan makanan masyarakat yang dipanggil Lend A

Sumbangan tanaman untuk menghijaukan persekitaran Tapak Semaian Majlis Perbandaran Klang

40 41





Q3

Semua perniagaan menghadapi persaingan, terutamanya perniagaan antarabangsa. Kami adalah sebuah syarikat senaraian awam global dan tidak mungkin bebas daripada persaingan. Kekuatan perniagaan kami di peringkat tempatan dan global adalah faktor pembezaan utama berbandingkan persaingan yang timbul, dan merupakan kunci untuk menarik pelaburan dan pelabur. Walau bagaimanapun, kami sedar bahawa perniagaan sarung tangan adalah industry yang menarik, terutamanya semasa pandemik apabila terdapat lonjakan dalam penggunaan sarung tangan. Dalam persekitaran sedemikian, kami menjangkakan persaingan akan meningkat serta pemain-pemain baru muncul.

Kami mengalu-alukan persaingan yang sihat kerana ia membuatkan syarikat kami serta industri lebih cekap, mengetepikan amalan yang lemah dan meningkatkan prestasi serta pemain. Ini juga menawarkan peluang penggabungan dan pemerolehan (M&A) bagi kami.

Walau bagaimanapun, permintaan sarung tangan global akan meningkat setiap tahun, walaupun dalam era pasca pandemik berikutan kesedaran kesihatan dan tahap kebersihan yang semakin meningkat. Dalam persekitaran sedemikian, kami percaya bahawa peningkatan permintaan akan mengimbangkan lebihan

Adakah anda prihatin tentang persaingan yang semakin meningkat di Malaysia dan peringkat antarabangsa?

bekalan. Sebarangan tekanan harga dan lebihan bekalan, ia hanya buat sementara sahaja.

Walau apapun, Top Glove mempunyai beberapa kelebihan yang memberi kami kemanfaatan berbanding pesaing kami dalam jangka masa panjang. Kami menawar rangkaian sarung tangan dipelbagaikan yang terdiri daripada sarung tangan nitril, getah asli, vinyl dan sarung tangan pembedahan, serta dipelbagaikan dari segi asas pelanggan dan pembuatan kami. Kapasiti pengeluaran kami sebanyak 100 bilion helai sarung tangan setahun yang merupakan terbesar di kalangan semua pengeluar sarung tangan di seluruh dunia, juga membolehkan kami menampung pesanan besar dari pengedar. Yang paling penting, kami mempunyai pasukan yang berbakat, termasuk pasukan penyelidikan dan pembangunan (R&D) dan kakitangan pemasaran pelanggan yang kuat.

Persaingan adalah faktor luaran yang bukan dalam kawalan kami. Walau bagaimanapun, kami terus merancang dan menyusun strategi secara dalaman, supaya kami dapat menahan apabila menghadapi pencabaran. Saya percaya dengan Arah Perniagaan kami untuk menghasilkan sarung tangan berkualiti tinggi pada kos rendah yang cekap dan fokus untuk kekal sihat, kami yakin akan berjaya mengurangkan kesan dan menavigasi bekalan berlebihan pada mana-mana tempoh, seperti yang pernah kami lakukan sebelum ini.

Q2

Kami telah melalui beberapa kitaran yang terdiri daripada masa yang baik dan mencabar, sejak permulaan perniagaan 30 tahun yang lalu. Kami berbesar hati bahawa walaupun masa yang baik tidak bertahan lama, begitu juga dengan masa yang sukar. Selain itu, asas kukuh kami yang telah dibina sejak 3 dekad yang lalu, akan membolehkan kami menghadapi cabaran dan mengatasinya satu persatu.

Dengan kemajuan teknologi dan kelajuan maklumat disampaikan sekarang, kitaran perniagaan berubah dengan cepat, dengan setiap kitaran perniagaan selalunya berlangsung selama 1 hingga 3 tahun sahaja. Cabaran dan peluang untuk perniagaan sekarang adalah untuk menyesuaikan diri dengan persekitaran yang berubah dengan cepat.

Penurunan dalam permintaan serta harga jualan purata (ASP) sarung tangan adalah perkara yang telah kami bersedia menghadapi setelah menciptakan simpanan semasa tempoh pertumbuhan yang kukuh. Sudah tentu, kami terus memantau perubahan landskap dan akan bertindak balas bagi menyelaraskan strategi dan pengeluaran kami dengan sewajarnya. Walau bagaimanapun, kami yakin permintaan terhadap sarung tangan sebagai barangan keperluan dalam sektor penjagaan kesihatan akan terus berkembang dengan mantap, didorong oleh permintaan pasaran yang terus

Dengan penurunan permintaan sarung tangan dan harga jualan purata, apakah rancangan Top Glove untuk mengurangkan kesannya dan bagaimanakah Tan Sri melihat prospek industri pada masa hadapan?

berkembang dengan mantap, walaupun tidak sekuat semasa kemuncak pandemik. Permintaan sarung tangan telah meningkat secara berterusan pra pandemik pada kadar 10% setahun dan berkemungkinan stabil pada tahap yang lebih tinggi walaupun selepas pandemik berakhir disebabkan oleh tahap kesedaran dan kebersihan yang tinggi.

Sememangnya, faktor-faktor seperti permintaan dan harga jualan adalah di luar kawalan kami. Kami tidak boleh bergantung kepada faktor luaran bagi meyampaikan prestasi yang baik. Untuk mencapai prestasi yang baik secara mampan dan menawarkan nilai tambahan kepada pihak berkepentingan, kami memberi tumpuan kepada faktor-faktor dalaman yang boleh dikawal seperti kualiti dan kecekapan. Yang paling penting, saya percaya bahawa asas kami mesti kuat dan dibina atas “3 Kesihatan” kami: Kesihatan Mental, Kesihatan Fizikal dan Kesihatan Kewangan. Apabila mempunyai 3 Kesihatan tersebut, kami akan berada dalam kedudukan yang baik untuk menghadapi masa yang sukar dan mengatasi segala cabaran.

Q4

Kami sangat gembira kerana usaha kami untuk bertambah baik telah menghasilkan Modification ke atas Finding dan kami dapat meneruskan semula penghantaran sarung tangan ke Amerika Syarikat, terutama bagi pertugas perubatan barisan hadapan dan responden pertama bagi melindungi kesihatan dan keselamatan mereka dalam masa yang luar biasa ini.

Perjalanan kami selama 14 bulan yang lepas, sangat bermakna di mana kami telah muncul sebagai syarikat yang lebih baik dan lebih kukuh. Walaupun tempoh itu sering mencabar, tetapi kami memandang pengalaman ini secara positif dan sebagai peluang untuk mengukuhkan inisiatif ESG yang berterusan. Berikutan ini, kami gembira bahawa pada Januari 2021, operasi kami telah disahkan oleh perunding antarabangsa U.K. pihak ketiga bahawa bebas daripada buruh paksa sistemik. Pada April 2021, Top Glove telah menyelesaikan pembayaran pemulihan kira-kira RM150 juta kepada lebih 13,000 pekerja asing yang telah membayar yuran pengambilan pekerja dan kos berkaitan kepada ejen pengambilan pekerja. Top Glove juga membuat pelaburan besar untuk meningkatkan penginapan kakitangan dan melaksanakan talian bantuan kakitangan yang diuruskan secara bebas.

Pada 10 September 2021, Withhold Release Order (WRO)/Finding yang dikenakan oleh the U.S. Customs and Border Protection (CBP) ke atas sarung tangan pakai buang yang dihasilkan oleh kemudahan Top Glove di Malaysia telah ditarik balik/diubahsuai selepas 14 bulan. Bagaimana rasanya? Bagaimanakah pengalaman itu memberi kesan kepada Top Glove dan apakah perubahan yang telah berlaku sejak itu? Apakah keutamaan segera Tan Sri pada masa hadapan?

Namun, perjalanan kami masih belum selesai. Tugas segera di depan kami adalah memulihkan perniagaan yang hilang akibat ketidakmampuan untuk mengeksport ke Amerika Syarikat. Kami perlu berusaha keras untuk mendapatkan kembali pelanggan serta bahagian pasaran dan membina semula kepercayaan dengan pihak berkepentingan kami yang sedang kami berusaha keras.

Kami akan terus meneruskan penyenaraian utama kami di Bursa Saham Hong Kong (HKEX). Penyerahan semula pemohonan A1 kami telah dibuat pada 28 Oktober 2021 dan kami berharap dapat mengemas kini perkembangan kami pada waktu yang terdekat. Dalam jangka panjang, kelestarian akan terus berada di kedudukan tertinggi dalam agenda perniagaan kami dan kami akan terus meningkatkan usaha kami dalam amalan ESG, terutamanya amalan buruh dengan lebih mantap.

Pada Januari 2021, operasi kami telah disahkan oleh perunding antarabangsa U.K. pihak ketiga bahawa bebas daripada buruh paksa sistemik.

Q5

Kami amat komited untuk menciptakan nilai yang mampan untuk para pemegang saham kami. Inilah sebabnya kami sentiasa menggalakkan pelabur kami untuk mengambil pandangan jangka panjang melabur dalam Top Glove dan tidak memberi tumpuan kepada harga saham sebagai penunjuk tunggal. Walaupun masa depan tidak dapat diramalkan, kami percaya prestasi masa lalu kami adalah petunjuk ketahanan syarikat kami. Selama 20 tahun sejak penyenaraian kami di Bursa Malaysia, kami telah berjaya menyampaikan CAGR (Kadar Pertumbuhan Kompaun Tahunan) sebanyak 27% untuk Pendapatan Jualan dan 36% untuk Keuntungan, yang mencerminkan asas-asas kukuh dan potensi baik industri sarung tangan. Kami juga mempunyai rekod prestasi yang baik dalam memberikan jumlah pulangan pemegang saham sebanyak kira-kira 22,200% seperti pada 31 Ogos 2021, dalam tempoh 20 tahun yang lalu sejak penyenaraian kami.

Harga saham Top Glove telah menyaksikan penurunan mendadak dan pesat dari puncak hampir RM9.50 sesaham setahun yang lalu. Apakah komen Tan Sri mengenai perkembangan ini bagi pemegang saham Tan Sri?

Kesihatan Fizikal

Kesihatan Mental

Kesihatan Kewangan

3 Kesihatan

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Nota: Baca lebih lanjut tentang komitmen kami terhadap ESG dalam bahagian yang bertajuk Creating Sustainable Value pada muka surat 88.

Q6

Memang benar bahawa setiap tahun dan setiap hari mestilah menjadi tahun atau hari ESG. Top Glove mempunyai tema untuk setiap tahun yang dipilih berdasarkan bidang yang penting yang kami ingin fokuskan. Walau bagaimanapun, ini tidak bermakna kami tidak akan memberi tumpuan kepada ESG selepas 2021 berakhir. Malah, kami telah mengisytiharkan 2021 Tahun ESG, menandakan permulaan usaha yang lebih besar yang akan datang, ini dengan komitmen bahawa pertimbangan ESG akan menjadi kepentingan utama bagi perniagaan kami.

Tan Sri telah mengisytiharkan Tahun 2021 Tahun ESG (Alam Sekitar, Sosial & Tadbir Urus) untuk Top Glove. Bukankah sepatutnya setiap tahun menjadi Tahun ESG terutamanya bagi sebuah syarikat besar seperti Top Glove? Apakah yang berbeza tentang tahun ini?

kami membolehkan kemampanan disepadukan dengan baik ke dalam setiap aspek perniagaan kami. Dengan ketaranya, dari tahun kewangan 2021 dan seterusnya, 40% KPI (Petunjuk Prestasi Utama) Kumpulan dikaitkan dengan metrik ESG dalam 5 bidang tumpuan iaitu Kualiti dan Keselamatan Produk, Kesihatan dan Keselamatan Pekerjaan, Pengekalan Bakat, Hak Asasi Manusia dan Amalan Buruh, dan Pengurangan Pelepasan Karbon.

Sebagai syarikat antarabangsa, kelestarian merupakan nadi perniagaan kami dan melaburkan sumber daya kami untuk melindungi alam sekitar, memajukan perniagaan yang beretika, membangunkan komuniti dan memberi kesan positif kepada kehidupan menjadi keutamaan kami, tahun demi tahun. Mencerminkan keunggulan ESG yang semakin meningkat di peringkat global, kami mengisytiharkan tahun 2021 sebagai Tahun ESG Top Glove, demi mewujudkan kesedaran dalaman yang lebih kuat dalam kalangan kakitangan di semua peringkat, yang membolehkan fokus lebih tajam di seluruh syarikat terhadap perkara penting ini.

Keuntungan tidak semestinya memudaratkan manusia ataupun planet, dan kami memastikan sistem dan proses

Kualiti dan Keselamatan

Produk

Kesihatan dan Keselamatan

Pekerjaan

Pengekalan Bakat

Pengurangan Pelepasan Karbon

Hak Asasi Manusia dan Amalan Buruh

5 BIDANG

TUMPUAN

Q7 Lembaga Pengarah Top Glove telah dikritik sesetengah pelabur, dengan beberapa pelabur institusi mengundi menentang pemilihan semula enam pengarah bebas di Mesyuarat Tahunan Am (AGM) Top Glove pada Januari 2021. Apa yang telah berubah sejak itu dari segi pengawasan dan penglibatan Lembaga Pengarah?



Kami mengetahui bahawa adanya lebih banyak perkara yang dapat kami lakukan dan akan terus meningkatkan amalan ESG kami agar dapat menyampaikan kecemerlangan secara berterusan, bukan hanya sebagai perniagaan tetapi sebagai warga korporat, sejajar dengan komitmen kami untuk terus menampil yang terbaik dengan berbuat baik, malah di luar Tahun ESG.

Saya berbangga dengan Lembaga Pengarah kami. Ini adalah masa yang mencabar bagi mereka dan mereka telah terus melaksanakan tugas dengan penuh tanggungjawab, melakukan dengan penuh rahmat di bawah tekanan.

Lembaga Pengarah termasuk Pengarah Bebas (ID) kami bermesyuarat secara kerap untuk membincangkan isu-isu utama syarikat, dan secara aktif melibatkan diri dengan pihak pengurusan dan kakitangan terutama mengenai perkara-perkara berkaitan dengan pengurusan risiko, audit, ESG serta sumber manusia. Sejak Mac 2021, ID kami juga telah mengadakan penglibatan suku tahunan dengan wakil pekerja untuk lebih memahami isu-isu yang dihadapi dan memberi sokongan dan nasihat untuk perkara yang dikemukakan. Mereka juga telah mengambil peranan aktif dalam memastikan kemudahan yang disediakan untuk kakitangan kami mematuhi semua keperluan bidang kuasa pasaran termasuk menyelaraskan prinsip perniagaan kami kepada agenda Perniagaan dan Hak Asasi Manusia.

Penglibatan ID kami adalah teladan baik, melangkaui keperluan tadbir urus, termasuk memberikan panduan mengenai pelbagai perkara penting seperti CBP WRO/Finding sebelum ia ditarik balik/diubahsuai, pengurusan kes COVID, pematuhan Akta 446 (Peraturan penginapan pekerja tempatan Malaysia), mewujudkan Skim Beli Balik Saham (Share Buyback) yang lebih tersusun, serta melawat ke tapak pusat vaksinasi dan asrama kakitangan kami di mana mereka berdialog secara langsung dengan pekerja kilang kami. Selain itu, mereka memainkan peranan penting dalam menetapkan visi dan hala tuju strategik Top Glove untuk tahun akan datang melalui analisis and perancangan senario dan krisis. Di samping itu, ID kami sering mengambil bahagian dalam pertemuan dengan badan-badan luar, seperti Suruhanjaya Hak Asasi Manusia Malaysia (SUHAKAM) dan pelbagai pakar bidang perubahan iklim untuk membincangkan penetapan sasaran sifar bersih.

Alam Sekitar Sosial Tadbir Urus

Sumbangan PPE dan peralatan perubatan kepada Hospital Tengku Ampuan Rahimah Klang (HTAR)

Majlis Anugerah Biasiswa telah diadakan di Kolej Universiti Tunku Abdul Rahman untuk menganugerahkan pelajar-pelajar tajaan Top Glove

44 45



与执行主席对话与执行主席对话丹斯里林伟才博士丹斯里林伟才博士

对于全球最大手套制造商顶级手套而言，2021财务年乃集团收获颇丰却充满挑战的一年。其创办人兼执行主席，丹斯里林伟才博士对于运营环境的高低起伏并不感陌生，更为重要的是，丹斯里林伟才在过往曾有过令人钦佩的记录，成功带领集团度过多个艰难时期并使其变得更强大。集团于2021年欢庆其成立30周年之际，丹斯里林伟才分享了本身对此财务年的看法，包括对于疫情及解除美国暂扣令后的展望。他以一贯坦率、诚实及透明化的作风答复于当今最火热的问题。


集团自30年前创业以来，我们经历了无数个包含顺境及逆境的时期。纵然顺境时期普遍短暂，我们深感欣慰逆境时期亦有到达尽头之时。此外，集团于过去3个年代所建立的强稳基础，已备集团于迎接种种挑战并逐一克服。

随着科技先进化及如今信息传播速度之快，运营周期瞬息万变，每周期仅持续一至三年。目前，行业所面临的挑战及机遇乃适应迅速变化的商业环境。

缓和的手套需求量和平均销售价乃意料中之事，集团已为此做足充分准备，通过盈利强劲时建立储备。当然，集团持续关注于多变的市场形势，并以应对性的策略及生产做出回应及调整。手套需求量增长虽不如疫情高峰时期来得迅速，但手套作为医疗保健领域不可或缺的物品之一，其需求量仍受到强劲市场需求的推动而持续稳步增长。手套需求量于疫情爆发前已以每年10%的幅度稳步增长，而在疫情后期，健康意识和卫生水平的进一步提升致使需求量或稳定于比疫情前要高的水平。

理所当然，需求量及销售价等因素皆属于我们所无法掌控的外部因素。我们并不会依赖于此些因素来维持优良表现。为了永续性地取得卓越表现并为集团利益相关者提升价值，我们将专注力转向控制范围内的内部因素，如质量及效率。甚为重要的是，我们坚信集团必须拥有牢固的基础及具备 “ 三大健康 ”，即：心理健康、身体健康及财务健康。当此些因素都到位时，集团即有能力完善地度过艰难时期并经起任何挑战。

Q1 Q22021财务年乃极具里程碑含义的一年，取得2021财务年乃极具里程碑含义的一年，取得空前财务业绩，顶级手套表示其与权益持有空前财务业绩，顶级手套表示其与权益持有人共享其成果的意愿。这将如何实践？人共享其成果的意愿。这将如何实践？

随着手套需求量和平均销售价的缓和，顶级随着手套需求量和平均销售价的缓和，顶级手套计划将如何减轻其影响，而您对领域前手套计划将如何减轻其影响，而您对领域前景有何看法？景有何看法？

2021财务年总股息2021财务年总股息约为马币52亿或约为马币52亿或每股65.1仙。每股65.1仙。

我们致力于为所有权益持有人创造价值，无论顺境或逆境，都将不为动摇。于此特出的2021财务年里，我们很高兴得以通过不同方式为众多权益持有人做出更积极及丰厚的贡献。

为奖励其忠实股东及投资者们，集团很高兴将股息支付频率从半年制改为季度制，此外，除了集团股息政策原有的50%，亦发布了20%的特别股息。2021财务年总股息约为马币52亿或每股65.1仙。

身处充满挑战的时期，我们有幸贡献了马币22亿的所得税。此举象征着集团对于国家建设及促进永续经济增长的贡献。此外，于2021财务年，集团亦贡献了马币1.91亿，向需要帮助的社区提供支援。其中，集团有幸为由马来西亚政府发起的马来西亚新冠病毒基金会及名为 ‘ 伸出援手 Lend A Hand (LAH) ’ 的社区食品援助计划献出一份绵力。另外，集团亦捐赠了手套、口罩、消毒洗手液及制氧机于国内及国外。

集团不间断的扩展计划也使我们能够持续提供有酬就业机会，进而缩小国内因疫情所致的失业现象。于2021财务年，集团招聘了9,720名新员工，基于集团正迈向自动化及数码化的营运方式，其中将近3,000名为大马公民技术职业教育与培训（TVET）毕业生及技术人员。

此外，集团亦投入资金于强化环境、社会及治理（ESG）方面的举措，同时备足设施以确保集团业务的永续性，并保持自身永续发展及做足持续贡献的准备。

3大健康

心理健康

身体健康

财务健康

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Q3

Q4

Q5

所有行业都存在竞争力，尤其于国际行业。身为一家国际上市公司，不能指望零竞争的存在。相对于所面临的竞争，集团于本地及全球强劲的业务将是吸引更多投资者的关键。尽管如此，我们时刻警惕手套行业极具吸引力，尤为疫情期间手套使用量的激增。处于这样的一个环境，我们预计行业间竞争的加剧及新生产商的崛起。

集团无任欢迎良性竞争，因其将提升集团以及此领域的效率，通过淘汰较弱的实践同时加强绩效及同领域玩家。此外，这亦为集团提供并购机会。

然而，基于健康及卫生意识的增强，全球手套需求量正在不断扩展且仍在逐年增长，甚至于疫情爆发后期。为此，我们相信这将足以抵消供应过剩的问题。任何供过于求和定价压力的现象将会是暂时性的。

我们很高兴集团齐心协力的付出促成了CBP修改对于顶级手套的调查结果，并期待恢复将手套出口至美国，特别于医疗前线人员和急救人员，以便在此非常时期确保他们的健康及安全。

过去14个月的经历对集团而言意义深重，我们从中获益良多，并成为了更佳及更强大的顶级手套。无可否认，当下着实极具挑战性，但我们积极正面并将此次经历视为巩固集团现有ESG举措的良机。随着此次经历，我们确幸集团的运营于2021年1月获得了独立第三方国际英国顾问的验证，证实集团并无系统性强迫劳动的元素。于2021年4月，针对超过13,000名先前已向招聘代理支付招聘费用及相关费用的外籍劳工，顶级手套已完成了逾马币1.5亿的招聘费补偿

我们致力于为股东创造永续价值。这亦是为何我们总是鼓励大众投资者们以长远的角度来看待对顶级手套的投资，而非将股价视为唯一的指标。虽然未来难以预测，但我们坚信集团过去的表现可以作为集团极具韧性一面的验证指标。自20年前集团上市于大马交易所，我们成功取得了27%收入及36%盈利的复合年增长率，突显了手套领域强大的基础及稳固的长远潜能。此外，集团亦拥有良好的业绩记录，自过去20年上市以来，截至2021年8月31日，总股东回报率约为22,200%。

对于来自本地及国外加剧的竞争，您是否有所忧虑？对于来自本地及国外加剧的竞争，您是否有所忧虑？

于2021年9月10日，美国海关及边境保护局（CBP）对顶级手套在马来西亚工厂生产的一次性手套施加的于2021年9月10日，美国海关及边境保护局（CBP）对顶级手套在马来西亚工厂生产的一次性手套施加的暂扣令／调查于14个月后被解除／修改。您对此有何感想？这次经历对顶级手套带来了怎样的影响以及暂扣令／调查于14个月后被解除／修改。您对此有何感想？这次经历对顶级手套带来了怎样的影响以及自此之后实施了哪些改变措施？对于未来，哪方面将会是您的首要任务？自此之后实施了哪些改变措施？对于未来，哪方面将会是您的首要任务？

顶级手套股价从一年前将近每股马币9.50的巅峰值急剧下滑。对于股东们，您对此现象有何评论？顶级手套股价从一年前将近每股马币9.50的巅峰值急剧下滑。对于股东们，您对此现象有何评论？

无论如何，顶级手套具备多项优势，而从长远看来，这使集团在竞争方面更胜一筹。集团提供高度多样化的手套系列，如丁腈、天然橡胶、乙烯基和手术手套；于地理方面，集团亦拥有多样化的客户群和制造基础。集团1,000亿只的手套年产量，乃全球所有手套制造商中最为庞大，亦使我们有足够的能力应对来自分销商的大量订单。最为显著的是，我们拥有一支由优秀人才组成的队伍，其中包括强大的研发团队及以客户为中心的营销人员。

竞争乃我们无法掌控的外部因素。然而，集团不曾停止于内部进行规划及制定策略，以便有足够的能力抵抗逆境的到来。我们深信只要秉着以高效率低成本的方式生产高质量手套，并保持健康的业务方针，集团将如往常一样顺利地缓解并应对任何供过于求的时期。

金。此外，顶级手套亦投入大量资金于改善员工住宿，及开通一条由独立机构管理的劳工求助热线。

然而，集团的征途远未结束。当务之急乃收复因无发向美国出口手套所造成的损失。我们务必献出万分努力于赢回客户和市场份额，以及权益持有人的信任。我们将持续进行双边主要上市于香港交易所（HKEX）。于2021年10月28日，集团向其交易所重新提交上市申请，并期待在适当的时机向大众更新我们的进展。长远来看，永续发展将在我们的商业议程中占据重要的位置，而我们将不断在这重要的领域加强努力，使集团ESG举措更为稳健，尤其于劳工实践方面。

Q6 顶级手套宣布2021年为ESG（环境、社会及治理）之年。对于顶级手套这样的大企业而言，难道不该是每顶级手套宣布2021年为ESG（环境、社会及治理）之年。对于顶级手套这样的大企业而言，难道不该是每年皆为 ESG之年吗？今年有何如此不同之处？年皆为 ESG之年吗？今年有何如此不同之处？

Q7

我本身为集团董事会深感自豪。这对于他们而言乃是一个充满挑战的时段，而他们于批判声下仍体面地履行各自的职责。

包括独立董事在内的董事会，不时定期展开会议以商讨集团关键问题，并积极与管理层及员工密切接触，以探讨风险管理、审计、ESG以及人力资源的相关问题。自2021年3月，集团独立董事每3个月将与劳工代表会面，以便更深入了解所面临的问题及给予支持和建议。此外，董事会积极确保提供于员工的设施符合所有市场管辖范围的需求，包括保证其业务原则遵守商业和人权议程。

集团独立董事于业务的参与亦堪称典范，超越了管治的需求，包括就各种重要事项提供指导，如：暂扣令／调查被解除／修改前、新冠病毒案例的管理、遵守446法令（马来西亚当地劳工住宿条规）、制定更结构化的股票回购计划，以及参观我们的疫苗接种中心及员工宿舍，当下亦与工厂员工有直接的沟通。此外，他们亦通过情景和危机分析及规划来制定顶级手套于未来数年内的愿景和战略方向。不仅如此，集团独立董事经常参与外部机构的会面，例如：马来西亚人权委员会（SUHAKAM）及诸位气候变化学科专家，以商讨净零目标的设定。

集团董事会受到投资者们的严厉谴责，数家机构投资者于2021年1月的顶级手套年度股东大会上对六名独集团董事会受到投资者们的严厉谴责，数家机构投资者于2021年1月的顶级手套年度股东大会上对六名独立董事的连任投以反对票。自那时起，对于董事会的监督及参与度有了哪些转变？立董事的连任投以反对票。自那时起，对于董事会的监督及参与度有了哪些转变？

产品质量和安全

职业健康和安危

人才保留

碳减排

人权和劳工实践 5个关键

重点领域

脚注：脚注：欲详细了解集团对于ESG领域的承诺，请参阅第88页的 Creating Sustainable Value 章节。

我们深知集团所能做的远比想象中更多，并不断改进我们的ESG实践。这将促使集团于非ESG之年，亦能本着 “ 为善者，诸事顺 ” 的信念，提供一个企业公民该有的卓越表现。

环境社会治理

确实，每一年每一日都该被视为ESG之年／日。每一年，顶级手套都将设立一个主题，根据集团想要特定关注的重要领域。然而，这并不意味着集团将于2021年到达尾声时，停止对于ESG领域的关注。实际上，当我们宣布2021年为ESG之年的当儿，这标志着集团承诺从今往后将ESG考量因素纳入集团业务的核心，并且付出更大的努力。

身为一家国际企业，永续发展一直是我们业务的核心，我们年复一年地将资源投入并专注于保护环境、推广道德商业、建立社区和给予生活正面的影响。纵观ESG于全球日益显著的地位，我们宣布2021年为顶级手套ESG之年，以于内部各个阶层建立更强大的意识，使全公司更广泛地关注于这一项重要的领域。

集团深知为了取得盈利的同时，人类或地球不该被视为牺牲的代价，我们努力确保集团系统及流程得以

让永续发展元素完善地被融入于业务的各个方面。甚为显著的是，自2021财务年起，集团员工40%的关键绩效指标相连于ESG指标的首5个关键重点领域，包括：产品质量和安全、职业健康和安危、人才保留、人权和劳工实践以及碳减排。

48 49



LETTER TO STAKEHOLDERS AND MANAGEMENT DISCUSSION & ANALYSIS


CREATING VALUE, SHARING SUCCESS IN A LANDMARK YEARGOOD HEALTH AND GOOD DAY FELLOW STAKEHOLDERS.

In a year like no other, we have been reminded that health is the one wealth that truly matters. As the pandemic raged on, Top Glove intensified efforts to produce more quality gloves to meet the urgent need for Personal Protective Equipment (PPE), as healthcare personnel bravely took up their positions on the frontlines of the global war against COVID.

Amidst the global crisis, we also contended with challenges of our own. These included the imposition of a halt on glove exports from our Malaysian operations to the U.S. by the U.S. Customs and Border Protection (CBP), while our people were also affected by the virus; events from which we learnt many valuable lessons as we worked to successfully resolve them.

In all this, delivering both long term value and growth for our multiple stakeholders, while protecting lives remained our priority and driving ambition in FY2021, as Top Glove overcame the obstacles to mark another milestone year and our 30th

anniversary.

Management Discussion and Analysis

For financial year 2021 (FY2021), Top Glove’s Sales Revenue amounted to RM16.36 billion, soaring 126% from FY2020. Profit After Tax (PAT) also grew to RM7.82 billion, a 337% jump compared with the previous financial year. Meanwhile, the Group’s net cash position as at 31 August 2021 stood at a healthy RM1.74 billion. The Group’s FY2021 performance is summarised in the following charts.

PERFORMANCE MILESTONES FOR FINANCIAL YEAR 2021

9,720 jobs created

All-time high Sales Revenue of

RM16.36 billion

Exceptional Net Profit of

RM7.82 billion

Unprecedented total dividend payout of

RM5.21 billion

RM2.2 billion in income tax towards nation building and economic growth

RM220 million to construct employee accommodation

RM191 million donated for community pandemic relief

RM44 million invested in ESG related initiatives

126% from FY2020

337% from FY2020

452% from FY2020

FY2021 FY2021 FY2021 FY2021FY2021FY2020 FY2020 FY2020 FY2020FY2020(2,251)

31/8/2019

Revenue, RM’mil EBITDA, RM’mil & Margin% Net Cash/(Borrowings), RM’mil

Earnings Per Share, Sen Dividend Per Share, SenPAT, RM’mil & Margin%

31/8/202131/8/2020

7,237

2,421 21.9 11.81,789

16,361

10,285

1,7432,343

95.9 65.1

7,824

+126%

+325%+338% +452%

+337%

33% 25%63% 48%

Unsurpassed value creation & sharing our successes with stakeholders in FY2021

50 51





The Group’s commendable yearly financial performance was attributed to robust glove demand coupled with strong average selling prices (ASPs) which rose some 138% in line with market pricing trends, driven by the ongoing pandemic.

Sales Volume remained consistent against FY2020, on the back of intermittent disruptions in glove production arising from an Enhanced Movement Control Order (EMCO) on our hostels in November 2020; COVID cases in some factories; a state wide EMCO in Selangor in July 2021 during which the glove industry was not allowed to operate for 10 days; as well as Movement Control Order (MCO) related lockdowns throughout the financial year during which affected facilities had to operate at reduced capacity. The reduced output also adversely impacted utilisation, driving costs upward.

In addition, we experienced a temporary stoppage of sales from our Malaysian operations to the U.S. from April 2021 to August 2021, following the imposition of a Finding by the U.S. CBP, which has since been lifted effective 10 September 2021.

Meanwhile, raw material prices increased in 1HFY2021 following supply shortages due to increased demand from the glove industry. Our larger profit base in FY2021 also resulted in the application of a higher effective tax rate.

FY2021 SALES VOLUME (QUANTITY) COMPARISON BY REGION

North America

Latin America

Western Europe

Africa

Eastern Europe

Middle East

Asia ex Japan

Japan

60%

50%

40%

30%

20%

10%

FY11

Global Market Position

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

2%

9%

23%

24%

42%

47%

43%

55%

22%

27%26%

20%

19%

11%

8%9%7%

3%2%1%

0%

Nitrile gloves Natural rubber powder free gloves

Natural rubber powdered gloves Vinyl/TPE/CPE Surgical gloves

% OF PRODUCT MIX BY VOLUME FROM FY2011 to FY2021

since 2020 since 2004 since 2018

Over the course of FY2021, we noted a gradual shift in demand from nitrile gloves to natural rubber gloves, following the rise in COVID cases in emerging markets where natural rubber gloves are preferred, owing to slower vaccine rollout in these countries.

Nonetheless, our comprehensive product mix coupled with the ability to switch strategically from the production of nitrile gloves to natural rubber gloves, rendered us well positioned to accommodate shifts in preference and cater to the needs of different markets, thereby mitigating business risk.

Having successfully turned Aspion’s operations around, we continued to reap the fruits of our acquisition, as the additional capacity enabled us to meet the urgent glove demand and contributed positively to the bottom line.

15%

10%

20%

2%

18%

6%

22%

7%

North America

Latin America

Africa

Japan

Asia ex Japan

Middle East

Eastern Europe

Western Europe

52 53



Beyond Financials: In Pursuit of a Sustainable Future

Equally as important as the financial results delivered is how they have been achieved. As an industry leader, we are wholly committed to fulfilling our responsibility as a global corporate citizen and continue to step up our efforts across the Environmental, Social and Governance (ESG) pillars of sustainability, mindful that we can and should always strive to do better.

Towards a deeper integration of ESG into the business and marking the start of greater efforts to come, we declared FY2021 as The Year of ESG for Top Glove, which has seen the establishing of ambitious mid term targets to be attained by FY2025. Concurrently, the Group is exploring science based target setting with an external consultant, towards crystallising a net zero carbon emissions roadmap.

As the employer of choice to a workforce of 22,000, we are committed to be the best company that we can become, for our people. This includes having in place a Zero Cost Recruitment Policy, comfortable accommodation and grievance channels for our foreign workers, as well as robust health, safety and security initiatives. In January 2021, our operations were also verified by an independent third party international U.K. consultant as being free of all 11 International Labour Organization (ILO) systemic forced labour indicators.

Read more about the Group’s efforts and commitment to charting a sustainable growth strategy during Top Glove’s Year of ESG and beyond, on page 88.

Corporate Developments

Top Glove powered through an intensely challenging environment, staying on course to execute and deliver on its growth agenda.

Continuous Capacity Expansion In Line with Global Demand Doing our part to ensure uninterrupted glove supply during a crucial time, the Group continued to embark on steady capacity expansion in FY2021. While glove demand started to normalise towards the latter part of the financial year following rapid vaccine rollout on a global scale, growth is still expected to stabilise at elevated levels after the pandemic recedes, compared with a pre pandemic growth of 10% per annum.

Accordingly, investment plans are underway for future growth. Top Glove will continue to embark on organic capacity expansion, adjusting where necessary in alignment with the global glove demand and supply situation, constructing new and technologically advanced factories featuring more automation and computerisation, while upgrading existing facilities as well. By 31 December 2025, Top Glove is projected to have a total of 59 factories comprising 46 glove factories and 13 other factories, 1,486 glove production lines and a glove production capacity of 201 billion gloves per annum.

The Group’s organic expansion plans for 2021 to 2025 are detailed below:

Meanwhile, the Group committed to invest RM600 million for the establishment of an NBR (nitrile butadiene rubber) Latex Processing Plant in Banting, Selangor to better ensure a consistent supply and quality of NBR latex, and to mitigate the impact of price fluctuations. The construction of the plant will be carried out in 4 phases, with Phase 1 expected to commence operations by 3QCY2022 with a capacity of 50,000 tonnes and completion by 4QCY2024 with a total capacity of 200,000 tonnes.

In progress is also a Gamma Sterilisation Plant in Klang, Selangor, aimed at reducing concentration risk and expediting the sterilisation process of surgical gloves, towards shortening the time to market. Phase 1 of the plant is targeted to be operational by 1QCY2022 while the final Phase 3 is targeted for completion by 3QCY2023. The facility which has an estimated CAPEX of RM65 million will be able to provide sterilisation for 1 billion pieces of surgical gloves per annum.

Top Glove’s Fully Virtual 22nd Annual General Meeting held on 6 January 2021



2020Dec

90

2021Sept

100

2022

+11

+11%

2023

+26

+23%

2024

+25

+18%

2025

+39

+24%

2025Dec

201

Total Capacity, bil pcs

54 55





Future Proofing Our Business Through R&D and Advanced Technology

R&D and technology continue to be key drivers of improvement and innovation at Top Glove and we will continue to build our capabilities in these crucial areas.

As at 1st November 2021, our R&D Division had a total staff strength of 1,375 researchers, deployed across our R&D Centres as well as factory departments. The total intellectual pool of researchers within the Group comprises 39 PhD holders, 137 Master’s Degree holders, 1,158 Bachelor’s Degree holders and 41 with other qualifications, enabling us to carry out multidisciplinary researches for the future sustainability of the business.

At present, Top Glove has established 10 R&D Centres, 7 based in Malaysia, 2 in Thailand and 1 in China, each specialising in a different area of research, enabling the Group to adapt to rapidly shifting trends in the global market. Further to that, 2 more R&D Centres are in the pipeline, 1 of which will be solely focusing on IR 4.0 and manufacturing, equipped with the latest technology and automation.

Over the years, our strong focus on R&D has resulted in advancements and breakthroughs which have seen the establishing of advanced production lines, Robotic Glove Handling systems and Integrated Operations Management systems, AI vision cameras and robotic arms, which will enable us to remain competitive in the long run.

The comprehensive range of home, personal and oral care products which includes hand sanitisers, anti bacterial handwash, dishwashing liquid and floor cleaning detergents produced by Top Glove Healthcare Centre (TGHC), emerged as important products during the pandemic, complementing our core glove business. TGHC, which was established by the R&D team, is an ISO certified company certified with ISO 9001:2015 (QMS) and ISO 22716:2007 (cGMP) and is approved by the National Pharmaceutical Regulatory Agency (NPRA). All TGHC products are formulated with a priority on natural ingredients, minimal chemical content and are cruelty free.

From a technological perspective, our factories continue to advance towards higher mechanisation. Building upon our automated recipe preparation, line control systems and AI visual inspection systems, we continue to work towards realising our vision of “contactless” intelligent production

and packing systems. With our facilities powered by sophisticated, state of the art packing machines and autonomous vehicles, our operators also enjoy healthier work environments while ensuring our customers receive consistently high quality gloves made under optimally hygienic conditions.

We are also investing in Manufacturing Operations Management Systems to tie together every stage of our operations: planning, production, inspections, inventories, and logistics, eventually achieving full integration with our ERP systems. Culminating in a “Supply Chain Control Tower”, this enterprise wide integration will give our teams greater insight into our processes powered by AI systems to identify and overcome production bottlenecks.

All these and more will be incorporated into not just our existing plants, but will also be natively embedded into our new Top Glove Innovation Campus (TGIC) as our state of the art hub for manufacturing and R&D. Featuring best in class glove manufacturing technologies, TGIC will be our next great milestone in glove manufacturing, in demonstration of our commitment towards continuous improvement and the delivery of consistently high quality gloves at efficient low cost. Phase 1 of TGIC is expected to commence operations by 3QCY2022, while completion is targeted by 2QCY2025 with a capacity of 20 billion gloves per annum.

In tandem, Top Glove is committed to keeping our impact on the environment low, and putting in place systems to govern and maintain the harmony between our operations and the environment. Towards keeping our operations sustainable, we have an array of projects underway for monitoring and managing energy, gas, and water resources, as well as ongoing investments into solar, advanced Industrial Effluent Treatment System (IETS), and material recycling processes.

We also continue to expand our cloud manufacturing infrastructure and building up our “Grand Data Terminal” by utilising technologies of IIoT, WIFI6 and Edge computing to connect thousands of data points to the network. Harnessing our analysts and digital talents, we channel all this data into dashboards and analytical reports that present an augmented view of our factories in near real time. And as a bonus, by digitalising these reports, we cut down on our paper usage as well, in line with our direction of going paperless.

Record High Dividends in an Exceptionally Good Year

Even as we intensified glove production, we were cognisant of the need to ensure we did so safely, with a sharpened focus on the well being of our employees and the communities we serve. To this end, COVID preventive measures were in place since the onset of the pandemic, and continued to be adapted and enhanced in step with the rapidly evolving situation. These included strict enforcement of COVID standard operating procedures (SOPs), as well as social distancing in our factories and employee accommodation, while regular spot checks were also carried out to ensure continued compliance with Malaysian Government regulations to the highest standards. Training was also rolled out towards creating awareness and reinforcing the need to adhere to preventive measures and SOPs.

Following a temporary stoppage at our factories in Meru from 17 November 2020 to 14 December 2020, the affected facilities underwent a rigorous sanitisation process and reopened with reinforced health and safety measures.

Top Glove on 19 July 2021, commenced its participation in Program Imunisasi Industri COVID Kerjasama Awam Swasta (PIKAS), a partnership between the public and private sector aimed at accelerating the immunisation of its employees. To date, 99% of employees in Malaysia have been fully vaccinated while 98.8% Groupwide have received both doses.

Our COVID Response: Putting Health & Safety First

As a preventive measure in addition to adhering to SOPs, the Company has invested approximately RM7 million to date in COVID testing for its employees.

Towards reducing unnecessary commuting and exposure, the Company provides subsidised healthy vegetarian meals, which are delivered daily to employees’ factories/offices, for which we have invested RM7.2 million in FY2021. Under this scheme, workers need only pay RM1 for a healthy vegetarian meal. Meanwhile, cashless payment at our canteens as well as for catering has been implemented. Embracing the new normal, Top Glove implemented a Work From Home (WFH) Policy during the pandemic, leveraging technology to swiftly activate online meetings, training and virtual inspections as needed, enabling business to operate as usual in an unusual environment. The majority of meetings and trainings continue to be conducted virtually even as the workforce returns to the office.

The TG Workers’ Learning App (TGWLA) was also developed in house, allowing our workers to perform mobile based learning. In addition, facial recognition in place of finger scanning for access to our premises has been rolled out to minimise physical contact for high touch surfaces.

In keeping with our firm commitment to reward and share our success with our approximately 136,000 loyal shareholders, we declared a total annual dividend amounting to an unprecedented 65.1 sen per share or RM5.21 billion, which represents a 452% increase from the full year dividend for FY2020 of 11.8 sen per share. We are also pleased to have instituted quarterly dividend payments for FY2021.

Participants strike a pose at Top Glove’s Annual Leadership Summit

2021, which was themed “ESG: Change Today for a Sustainable

Tomorrow”

56 57





Awards and Accolades

Top Glove is also honoured to have garnered several awards at the prestigious The Edge Singapore Billion Dollar Club 2021 (BDC). Under the Healthcare Services & Pharmaceutical sector, it won 3 awards namely Best Performing Stock, Fastest Growing Company and Best in Sector and to top it all, was also named Overall Winner for 2021 amongst 90 other companies in the BDC this year.

Further solidifying its position as an employer of choice, the company was recognised at the HR Asia Awards Best Companies to Work for in Asia, for the 5th consecutive year in March 2021. In June 2021, Top Glove also garnered multiple wins at the Human Resources Excellence Awards 2020, in the areas of HR Excellence in Leadership Development (Gold), HR Excellence in Talent Management (Silver), Most People Focused CEO (Silver) and HR Excellence in Corporate Wellness (Bronze). In addition, Top Glove was named Winner at the Best Employer Brand Graduates’ Choice Awards 2021 in the Manufacturing category and won a Bronze at the Employee Experience Awards 2021 (Malaysia) for Best Employer Branding.

Outlook & Prospects

Looking ahead, we are confident that demand for gloves will continue on its steady uptrend, increasing between 10% to 15% per annum, driven by elevated levels of awareness and hygiene standards both in the medical and non medical sector. Demand growth will also be supported by the emergence of new virus strains, even as the pandemic transitions to an endemic and the world starts to “live with COVID”. Moreover, with the resumption of sales to the U.S. which is a key market for Top Glove, we are optimistic of an improvement in Sales Volume over the quarters ahead.

This is not to say there will not be challenges. Headwinds are expected in the form of easing ASPs on an industry wide basis, while customers adopt a wait and see approach in anticipation of normalising ASPs and defer restocking activity. Competition from manufacturers, particularly those from out of the country, is also increasingly rife.

While the business environment is expected to be difficult, we are well prepared. The strong cash flow reserves which we have built over the course of FY2021 will enable us to fund continuous expansion and also seize opportunities for accretive M&As when they arise. In tandem, we will also continue to invest in R&D and leverage advanced technology to reengineer our processes towards a greater degree of product quality, efficiency and innovation.

Our strong FY2021 performance in the face of a tough operating environment has also given us good reason to be optimistic about the future; not least because we have seen the resilience of our people, which has powered our ability to adapt and thrive in the most trying circumstances.

This is why we still dare to dream. Our ambitious plans for the future remain intact and include becoming both a Forbes and Fortune Global 500 company by the year 2030. We will also continue to pursue a dual primary listing on the Hong Kong Stock Exchange (HKEX) for which we resubmitted our A1 application on 28 October 2021.

Our 30th anniversary may have coincided with our most challenging year yet, but we move forward resolutely into the days ahead, with the fullest confidence that the unwavering support of our Top Glovers will ensure the

company remains fit and well positioned to celebrate many more anniversaries to come.

Heartfelt Appreciation

Tough times lay bare what individuals and businesses are made of. In the most trying of times, we learnt with the greatest pride the full measure of our resilience as a company to rise up in the face of adversity and forge ahead strongly.

On this note, we wish to express our heartfelt thanks to the Board for their wise counsel and hands on involvement, which have been particularly valuable in navigating the rough waters and helping steer the company safely to shore.

To our employees, our Top Glovers, you have met the challenges of these unprecedented times with unparalleled commitment. Our deepest gratitude for bringing a can do attitude to your hard work and dedication, that has enabled our company to weather another challenging year and emerge stronger. We were even more heartened to witness your selflessness, as you came out in droves during the pandemic, to deliver food and necessities on a daily basis to our colleagues affected by the EMCO. Bravo, you have truly done us proud.

To our customers, suppliers, shareholders and other stakeholders; thank you for your support, feedback and constructive critique, which both inspires and compels us to do more and do better, bringing out the best in us.

We also take this opportunity to acknowledge and salute our frontliners and medical practitioners who continue to carry out their jobs with bravery and at great sacrifice. You are our nation’s heroes and it is a distinct honour to glove you and your fellow frontliners all over the world.

TAN SRI DR LIM WEE CHAIExecutive ChairmanTop Glove Corporation Bhd 2 November 2021

DATO’ LEE KIM MEOWManaging DirectorTop Glove Corporation Bhd2 November 2021

To view the statement issued by the U.S. CBP on this matter, kindly scan the QR code or visit this link: https://public-inspection.federalregister.gov/2021-19535.pdf

Top Glove Foundation donated personal protective equipment comprising gloves, face masks and hand sanitisers produced by Top Glove to Sungai Buloh Hospital on 14 June 2021, as part of a collaborative effort with the MRCA Council Members

Modification of the Finding by the U.S. CBP

Following the Modification of the Finding by the U.S. CBP, Top Glove’s Malaysian operations have been allowed to resume exporting and selling gloves to U.S. effective 10 September 2021, indicating the Group has addressed all indicators of forced labour identified at its Malaysian facilities. This positive development is expected to boost sales from Top Glove’s Malaysia operations to U.S., which accounts for 15% of the Group’s FY2021 total sales.

Our journey to modification has been deeply meaningful and humbling, and one from which we have emerged a better, stronger Top Glove today. We are particularly pleased at having completed remediation payments of over RM150 million to over 13,000 eligible migrant workers who had paid recruitment fees and related costs to recruitment agents, made substantial improvements to employee accommodation and implemented an independently managed worker helpline amongst other initiatives. This is just the beginning for us and we are inspired to continue to be the best company we can be, as we ensure the health, safety and wellbeing of our people is always taken care of.

58 59



PERUTUSAN KEPADA PIHAK BERKEPENTINGAN DANPERBINCANGAN & ANALISIS PIHAK PENGURUSAN


MENCIPTA NILAI, MENGKONGSI KEJAYAAN DALAM TAHUN LUAR BIASASALAM SIHAT DAN SEJAHTERA PARA PIHAK BERKEPENTINGAN.

Dalam tahun yang tidak seperti tahun yang lain, kami telah diingati bahawa kesihatan adalah nilai yang sangat penting. Ketika pandemik melanda, Top Glove berusaha untuk meningkatkan jumlah sarung tangan yang berkualiti untuk memenuhi keperluan alat pelindung diri (Personal Protective Equipment atau PPE) yang terdesak, bagi petugas kesihatan yang berada di barisan hadapan untuk menentang COVID, dengan keberanian.

Semasa krisis global, kami juga menghadapi cabaran. Ini termasuk pengenaan menghentikan eksport sarung tangan daripada operasi Malaysia ke Amerika Syarikat oleh U.S. Customs and Border Protection (CBP), manakala kakitangan kami juga terjejas oleh virus; peristiwa yang kami menghadapi telah memberi banyak pelajaran yang berharga ketika kami berusaha untuk menyelesaikannya dengan kejayaan.

Dalam semua ini, menyampaikan nilai dan pertumbuhan jangka panjang untuk pelbagai pihak berkepentingan kami, sambil melindungi nyawa tetap menjadi keutamaan dan cita-cita kami pada TK2021, sementara Top Glove mengatasi halangan bagi menandakan satu lagi tahun kejayaan dan ulang tahun ke-30 kami.

Perbincangan & Analisis Pihak Pengurusan

Bagi tahun kewangan 2021 (TK2021), Pendapatan Jualan Top Glove berjumlah RM16.36 bilion, melonjak 126% daripada TK2020. Keuntungan Selepas Cukai (PAT) juga meningkat kepada RM7.82 bilion, peningkatan 337% berbanding dengan tahun kewangan sebelumnya. Sementara itu, kedudukan tunai bersih Kumpulan pada 31 Ogos 2021 berjumlah RM1.74 bilion. Prestasi TK2021 Kumpulan diringkaskan dalam carta berikut.

PERINGKAT PRESTASI UNTUK TAHUN KEWANGAN 2021

9,720 pekerjaan dicipta

Pendapatan Jualan berjumlah

RM16.36 bilion

Keuntungan Bersih luar biasa berjumlah

RM7.82 bilion

Jumlah pembayaran dividen luar biasa berjumlah

RM5.21 bilion

RM2.2 bilion cukai pendapatan untuk pembangunan negara dan pertumbuhan ekonomi

RM220 juta untuk membina penginapan pekerja

RM191 juta disumbangkan bagi bantuan pandemik untuk komuniti

RM44 juta dilaburkan dalam inisiatif berkaitan ESG

126% dari TK2020

337% dari TK2020

452% dari TK2020

Pendapatan, RM’ juta EBITDA, RM’ juta & Margin% Tunai Bersih/(Pinjaman), RM’ juta

Pendapatan Sesaham, Sen Dividend Sesaham, SenKeuntungan Selepas Cukai (PAT), RM’ juta & Margin%

TK2021 TK2021 TK2021 TK2021TK2021TK2020 TK2020 TK2020 TK2020TK2020(2,251)

31/8/202131/8/2020

7,237

2,421 21.9 11.81,789

16,361

10,285

1,7432,343

95.9 65.1

7,824

+126%

+325%+338% +452%

+337%

33% 25%63% 48%

31/8/2019

Penciptaan nilai yang tiada tandingan & perkongsian kejayaan dengan pihak berkepentingan pada TK2021

60 61





Prestasi kewangan tahunan Kumpulan yang terpuji disebabkan oleh permintaan sarung tangan yang kukuh ditambah dengan harga jualan purata (ASP) kuat yang meningkat kira-kira 138% sejajar dengan trend harga pasaran, didorong oleh pandemik yang berterusan.

Volum Jualan kekal konsisten berbanding TK2020, berikutan gangguan berselang dalam pengeluaran sarung tangan berikutan Perintah Kawalan Pergerakan Diperketatkan (PKPD) di asrama kami pada November 2020; Kes COVID di beberapa kilang; PKPD di seluruh negeri Selangor pada Julai 2021 di mana industri sarung tangan tidak dibenarkan beroperasi selama 10 hari; serta lockdown berkaitan Perintah Kawalan Pergerakan (PKP) sepanjang tahun kewangan di mana kemudahan yang terjejas terpaksa beroperasi pada kapasiti yang lebih rendah. Pengeluaran yang berkurang juga memberi kesan buruk kepada penggunaan, mendorong kenaikan kos.

Di samping itu, kami mengalami penghentian sementara penjualan dari operasi Malaysia kami ke Amerika Syarikat dari April 2021 hingga Ogos 2021, berikutan pengenaan Finding oleh U.S. CBP, yang telah diubahsuai pada 10 September 2021.

Sementara itu, harga bahan mentah meningkat pada separuh masa pertama TK2021 berikutan kekurangan bekalan disebabkan peningkatan permintaan daripada industri sarung tangan. Asas keuntungan kami yang lebih besar pada TK2021 juga menghasilkan penggunaan kadar cukai efektif yang lebih tinggi.

PERBANDINGAN VOLUM JUALAN (KUANTITI) TK2021 MENGIKUT RANTAU

Amerika Utara

Amerika Latin

Eropah Barat

Afrika

Eropah Timur

Timur Tengah

Asia kecuali Jepun

Jepun

60%

50%

40%

30%

20%

10%

TK11

Kedudukan Pasaran Global

TK12 TK13 TK14 TK15 TK16 TK17 TK18 TK19 TK20 TK21

2%

9%

23%

24%

42%

47%

43%

55%

22%

27%26%

20%

19%

11%

8%9%7%

3%2%1%

0%

Sarung Tangan Nitril

Sarung Tangan tanpa serbuk getah asli

Sarung Tangan serbuk getah asli Vinil/TPE/CPE Sarung Tangan

Pembedahan

% CAMPURAN PRODUK MENGIKUT VOLUM DARI TK2011 HINGGA TK2021

Sejak 2020 Sejak 2004 Sejak 2018

Sepanjang TK2021, kami mencatat peralihan permintaan secara bertahap daripada sarung tangan nitril kepada sarung tangan getah asli, berikutan peningkatan kes COVID di pasaran baru muncul di mana sarung tangan getah asli diutamakan, disebabkan oleh pelaksanaan vaksin yang lebih perlahan di negara-negara ini.

Walaupun demikian, campuran produk komprehensif kami ditambah dengan keupayaan untuk beralih secara strategik dari pengeluaran sarung tangan nitril kepada sarung tangan getah asli, menjadikan kami berada dalam kedudukan yang baik untuk menampung peralihan dalam keutamaan dan memenuhi keperluan pasaran yang berlainan, dengan itu mengurangkan risiko perniagaan.

Setelah berjaya mengubah operasi Aspion, kami terus menuai hasil pemerolehan kami, kerana kapasiti tambahan membolehkan kami memenuhi permintaan sarung tangan segera dan menyumbang secara positif kepada keuntungan bersih.

15%

10%

20%

2%

18%

6%

22%

7%

Amerika Utara

Amerika Latin

Afrika

Jepun

Asia kecuali JepunTimur Tengah

Eropah Timur

Eropah Barat

62 63



Lebih Dari Kewangan: Mengejar Masa Depan Yang Lestari

Sama pentingnya dengan keputusan kewangan yang disampaikan adalah bagaimana ia telah dicapai. Sebagai peneraju industri, kami komited sepenuhnya untuk melaksanakan tanggungjawab kami sebagai warga korporat global dan terus meningkatkan usaha kami merentasi tonggak Kelestarian Alam Sekitar, Sosial dan Tadbir Urus (ESG), dengan penuh perhatian bahawa kami boleh dan harus sentiasa berusaha untuk melakukan yang lebih baik.

Ke arah integrasi ESG yang lebih mendalam ke dalam perniagaan dan menandakan permulaan usaha yang lebih besar yang akan datang, kami mengisytiharkan TK2021 sebagai Tahun ESG untuk Top Glove, yang telah menyaksikan penentuan sasaran jangka pertengahan yang bercita-cita tinggi untuk dicapai pada TK2025. Pada masa yang sama, Kumpulan sedang meneroka penetapan sasaran berasaskan sains dengan perunding luar, ke arah mewujudkan pelan hala tuju pelepasan karbon sifar bersih.

Sebagai majikan pilihan kepada tenaga kerja seramai 22,000 orang, kami komited untuk menjadi syarikat terbaik, untuk kakitangan kami. Ini termasuk mengadakan Polisi Pengambilan Kos Sifar, penginapan yang selesa dan saluran pengaduan untuk pekerja asing kami, serta inisiatif kesihatan dan keselamatan yang kuat. Pada Januari 2021, operasi kami juga disahkan oleh perunding antarabangsa U.K. pihak ketiga bahawa Top Glove bebas daripada semua 11 petunjuk buruh paksa sistematik Pertubuhan Buruh Antarabangsa (ILO).

Baca lebih lanjut mengenai usaha dan komitmen Kumpulan untuk merangkakan strategi pertumbuhan yang mampan semasa Tahun ESG Top Glove dan seterusnya, pada halaman 88.

Pembangunan Korporat

Top Glove telah melalui persekitaran yang sangat mencabar untuk melaksanakan dan menyampaikan agenda pertumbuhannya.

Pengembangan Kapasiti Berterusan Sejajar Dengan Permintaan Global

Dalam melaksanakan peranan kami untuk memastikan bekalan sarung tangan yang tidak terganggu pada masa yang penting, Kumpulan terus memulakan pengembangan kapasiti yang stabil pada TK2021. Walaupun permintaan sarung tangan mula normal pada akhir tahun kewangan berikutan pelaksanaan vaksin yang pesat pada skala global, pertumbuhan masih dijangka stabil pada paras yang tinggi selepas pandemik surut, berbanding dengan pertumbuhan sebelum pandemik sebanyak 10% setahun.

Oleh itu, rancangan pelaburan sedang dijalankan untuk pertumbuhan masa depan. Top Glove akan terus memulakan pengembangan kapasiti organik yang akan diselaraskan agar sejajar dengan permintaan sarung tangan global dan situasi bekalan, membina kilang-kilang baharu dan berteknologi maju yang menampilkan lebih banyak automasi dan pengkomputeran, sambil meningkatkan taraf kemudahan sedia ada juga. Menjelang 31 Disember 2025, Top Glove dijangka mempunyai sejumlah 59 kilang yang terdiri daripada 46 kilang sarung tangan dan 13 kilang lain-lain, 1,486 barisan pengeluaran sarung tangan dan kapasiti pengeluaran sarung tangan sebanyak 201 bilion sarung tangan setahun. Pelan pengembangan organik Kumpulan bagi tahun 2021 hingga 2025 diperincikan di bawah:

Sementara itu, Kumpulan berkomit untuk melaburkan sebanyak RM600 juta bagi penubuhan Loji Pemprosesan Lateks NBR (getah nitrile butadiene) di Banting, Selangor untuk memastikan bekalan dan kualiti lateks NBR yang konsisten, dan mengurangkan kesan turun naik harga. Pembinaan loji ini akan dijalankan dalam 4 fasa, dengan Fasa 1 dijangka akan memulakan operasi menjelang Suku Pertama Tahun Kalendar 2022 dengan kapasiti 50,000 tan dan siap menjelang Suku Keempat Tahun Kalendar 2024 dengan jumlah kapasiti sebanyak 200,000 tan.

Sedang berlansung juga ialah Loji Sterilisasi Gamma di Klang, Selangor, yang bertujuan untuk mengurangkan risiko kepekatan dan mempercepatkan proses pensterilan sarung tangan pembedahan, ke arah memendekkan waktu untuk dipasarkan. Fasa 1 loji ini dijangka akan beroperasi pada tahun Suku Pertama Tahun Kalendar 2022 manakala Fasa 3 dijangka siap menjelang Suku Ketiga Tahun Kalendar 2023. Kemudahan ini yang mempunyai anggaran CAPEX sebanyak RM65 juta, akan dapat menyediakan pensterilan untuk 1 bilion keping sarung tangan pembedahan setahun.

Lawatan kunjungan hormat ke Top Glove oleh Kementerian Kesihatan pada 8 Januari 2021

(Kelima dari kiri ke kanan) Dato’ Dr. Chong Chee Kheong, Timbalan Ketua Pengarah Kesihatan (Kesihatan Awam), Dr. B. Venugopalan, Timbalan Pengarah Negeri Selangor, Dr. Arinah Wan Deh Sze, Pakar Kesihatan Awam and Dr. Mas Norehan, Pegawai Khas

2020Dis

2021Sept

2022 2023 2024 2025 2025Dis

Jumlah Kapasiti, bil sehelai



90100

+11

+11% +26

+23% +25

+18%+39

+24%

201

64 65



Membina Perniagaan Yang Kalis Masa Depan Melalui Penyelidikan dan Pembangunan (R&D) dan Teknologi Maju

Penyelidikan dan Pembangunan (R&D) dan teknologi terus mendorong penambahbaikan dan inovasi di Top Glove dan kami akan terus membina keupayaan kami dalam bidang-bidang penting ini.

Pada 1 November 2021, Bahagian Penyelidikan dan Pembangunan (R&D) kami mempunyai 1,375 penyelidik, yang ditempatkan di Pusat R&D dan jabatan kilang. Jumlah kumpulan intelektual penyelidik dalam Kumpulan terdiri daripada 39 pemegang PhD, 137 pemegang Ijazah Sarjana, 1,158 pemegang Ijazah Sarjana Muda dan 41 dengan kelayakan lain, yang membolehkan kami menjalankan penyelidikan multidisiplin untuk kelangsungan perniagaan masa depan.

Pada masa ini, Top Glove telah menubuhkan 10 Pusat R&D, 7 yang berpusat di Malaysia, 2 di Thailand dan 1 di China, masing-masing mengkhusus dalam bidang penyelidikan yang berbeza, membolehkan Kumpulan menyesuaikan diri dengan trend yang cepat berubah dalam pasaran global. Selanjutnya, 2 lagi Pusat R&D sedang dalam perancangan, 1 daripadanya akan memberi tumpuan sepenuhnya kepada IR 4.0 dan pembuatan, dilengkapi dengan teknologi dan automasi terkini.

Selama bertahun-tahun tumpuan kami yang kuat terhadap R&D telah menghasilkan kemajuan dan penemuan yang telah menyaksikan penubuhan barisan pengeluaran canggih, sistem Pengandalian Sarung Tangan Robotik dan sistem Pengurusan Operasi Bersepadu, kamera penglihatan AI dan lengan robotik, yang akan membolehkan kita kekal berdaya saing dalam jangka masa panjang.

Pelbagai produk penjagaan rumah, peribadi dan mulut yang komprehensif termasuk cecair pembasmi kuman, pencuci tangan anti bakteria, cecair pencuci pinggan mangkuk dan pencuci lantai yang dihasilkan oleh Top Glove Healthcare Centre (TGHC), muncul sebagai produk penting semasa pandemik, melengkapkan perniagaan sarung tangan teras kami. TGHC, yang ditubuhkan oleh pasukan R&D, merupakan syarikat yang disahkan ISO 9001:2015 (SPK) dan ISO 22716:2007 (cGMP), TGHC juga telah diluluskan oleh Agensi Regulatori Farmasi Negara (NPRA). Semua produk TGHC diformulasikan dengan keutamaan kepada bahan-bahan semulajadi, kandungan kimia yang minimum dan bebas kekejaman.

Dari perspektif teknologi, kilang kami terus maju ke arah mekanisasi yang lebih tinggi. Berdasarkan persiapan automatik, sistem kawalan talian dan sistem pemeriksaan visual AI, kami terus berusaha ke arah merealisasikan visi kami tentang system pengeluaran dan pembungkusan pintu “tanpa sentuhan”. Dengan kemudahan kami yang

dikuasakan oleh mesin pembungkusan canggih dan kenderaan autonomi, pengendali kami juga menikmati persekitaran kerja yang lebih sihat sambil memastikan pelanggan kami menerima sarung tangan berkualiti tinggi yang dibuat dalam keadaan kebersihan yang optimum.

Kami juga melabur dalam Sistem Pengurusan Operasi Perkilangan untuk menyatukan setiap peringkat operasi kami: perancangan, pengeluaran, pemeriksaan, inventori, dan logistik, akhirnya mencapai integrasi penuh dengan sistem ERP kami. Memuncak dalam “Supply Chain Control Tower”, integrasi di seluruh perusahaan ini akan memberi pasukan kami pemahaman yang lebih mendalam mengenai proses yang dikuasakan oleh sistem AI untuk mengenalpasti dan mengatasi masalah pengeluaran.

Semua ini dan banyak lagi akan dimasukkan ke dalam bukan sahaja kilang kami yang sedia ada, tetapi juga akan dimasukkan ke dalam Kampus Inovasi Top Glove (TGIC) yang baru sebagai hab seni untuk pembuatan dan R&D. Menampilkan yang terbaik dalam teknologi pembuatan sarung tangan, TGIC akan menjadi tonggak utama kami yang seterusnya dalam pembuatan sarung tangan, sebagai tanda komitmen kami ke arah penambahbaikan berterusan dan penghantaran sarung tangan berkualiti tinggi secara konsisten pada kos rendah yang cekap. Fasa 1 TGIC dijangka memulakan operasi menjelang Suku Ketiga Tahun Kalendar 2022, manakala siap disasarkan menjelang Suku Kedua Tahun Kalendar 2025 dengan kapasiti 20 bilion sarung tangan setahun.

Sejajar dengan itu, Top Glove komited untuk memastikan kesan kami terhadap alam sekitar tetap rendah, dan menerapkan sistem untuk mengatur dan mengekalkan keharmonian antara operasi kami dan alam sekitar. Untuk memastikan operasi kami mampan, kami mempunyai pelbagai projek yang sedang dijalankan untuk memantau dan menguruskan sumber tenaga, gas, dan air, serta pelaburan berterusan ke dalam proses solar, Industrial Effluent Treatment System (IETS) maju, dan proses bahan kitar semula.

Kami juga terus mengembangkan infrastruktur pembuatan awan kami dan membina “Grand Data Terminal” kami dengan menggunakan teknologi pengkomputeran IIoT, WIFI6 dan Edge untuk menyambungkan ribuan titik data ke rangkaian. Bagi memanfaatkan penganalisis dan bakat digital kami, kami menyalurkan semua data ini ke dalam papan pemuka dan laporan analisis yang menyajikan pandangan tambahan kilang-kilang kami dalam masa terdekat. Dan sebagai bonus, dengan mendigitalkan laporan ini, kami juga mengurangkan penggunaan kertas, sejajar dengan hala tuju kami tidak menggunakan kertas.

Rekod Dividen Tinggi dalam Tahun yang Luar Biasa

Walaupun kami mempertingkatkan usaha pengeluaran sarung tangan, kami menyedari keperluan untuk memastikan kami melakukannya dengan selamat, dengan tumpuan yang tajam terhadap kesejahteraan pekerja dan komuniti yang kami berkhidmat. Untuk tujuan ini, langkah-langkah pencegahan COVID telah dilaksanakan sejak bermulanya pandemik, dan terus disesuaikan dan dipertingkatkan mengikuti keadaan yang berkembang pesat. Ini termasuk penguatkuasaan yang ketat terhadap prosedur operasi standard (SOP) COVID, serta penjarakan sosial di kilang dan penginapan pekerja kami, manakala pemeriksaan tempat kerja tetap juga dijalankan untuk memastikan pematuhan berterusan terhadap peraturan Kerajaan Malaysia kepada standard tertinggi. Latihan juga dilancarkan untuk memberi kesedaran dan menekankan keperluan untuk mematuhi langkah pencegahan dan SOP.

Berikutan penghentian sementara kilang kami di Meru dari 17 November 2020 hingga 14 Disember 2020, kemudahan yang terjejas telah menjalani proses sanitasi yang ketat dan dibuka semula dengan langkah-langkah kesihatan dan keselamatan yang diperkukuhkan.

Pada 19 Julai 2021, Top Glove memulakan penyertaannya dalam Program Imunisasi Industri COVID Kerjasama Awam Swasta (PIKAS), perkongsian antara sektor awam dan swasta yang bertujuan untuk mempercepatkan imunisasi pekerjanya. Sehingga kini, 99% pekerjanya di Malaysia telah divaksin sepenuhnya manakala bagi Kumpulan, 98.8% telah divaksin sepenuhnya.

Tindak Balas COVID Kami: Mengutamakan Kesihatan & Keselamatan

Sebagai langkah pencegahan selain daripada mengikut SOP, Syarikat telah melabur kira-kira RM7 juta setakat ini, untuk ujian COVID pekerjanya.

Untuk mengurangkan perjalanan berulang alik dan pendedahan kepada risiko, Syarikat menyediakan makanan vegetarian yang sihat bersubsidi, yang dihantar setiap hari ke kilang dan pejabat kakitangan, di mana kami telah melabur sebanyak RM7.2 juta pada TK2021. Di bawah skim ini, pekerja hanya perlu membayar RM1 untuk makanan vegetarian yang sihat. Sementara itu, pembayaran tanpa tunai di kantin kami dan juga untuk katering, telah dilaksanakan. Menerapkan normal baharu, Top Glove melaksanakan Polisi Kerja Dari Rumah (WFH) semasa pandemik, memanfaatkan teknologi untuk mengaktifkan mesyuarat dalam talian dengan cepat, latihan dan pemeriksaan secara virtual mengikut keperluan, membolehkan perniagaan beroperasi seperti biasa dalam persekitaran yang luar biasa. Kebanyakan mesyuarat dan latihan terus dijalankan secara virtual walaupun tenaga kerja kembali ke pejabat.

Aplikasi Pembelajaran Pekerja TG (TGWLA) juga diciptakan secara dalaman, membolehkan pekerja kami melakukan pembelajaran berasaskan mudah alih. Tambahan pula, pengecaman wajah bagi menggantikan pengimbasan jari untuk akses ke premis kami telah dilancarkan bagi meminimumkan hubungan fizikal untuk permukaan sentuhan tinggi.

Selaras dengan komitmen teguh kami untuk memberi ganjaran dan berkongsi kejayaan dengan lebih kurang 136,000 pemegang saham setia kami, kami mengisytiharkan jumlah dividen tahunan berjumlah 65.1 sen sesaham atau RM5.21 bilion, yang mewakili peningkatan sebanyak 452% daripada dividen tahun penuh untuk TK2020 sebanyak 11.8 sen sesaham. Kami juga berbesar hati untuk membuat pembayaran dividen suku tahunan bagi TK2021.

PIKAS: Top Glove mengatur program vaksin COVID di bawah Program

Imunisasi Industri COVID Kerjasama Awam Swasta (PIKAS) pada 19 Julai

2021 di Meru, Klang, Selangor.



66 67



Modification Ke Atas Finding oleh U.S. CBP

Berikutan Modification ke atas Finding oleh U.S. CBP, operasi Top Glove Malaysia telah dibenarkan untuk mengeksport dan menjual sarung tangan ke Amerika Syarikat efektif pada 10 September 2021, menunjukkan bahawa Kumpulan telah menangani semua petunjuk pekerja paksa yang dikenalpasti di kemudahannya di Malaysia. Perkembangan positif ini diharapkan dapat meningkatkan penjualan dari operasi Top Glove Malaysia ke Amerika Syarikat, yang menyumbang 15% daripada jumlah penjualan TK2021 Kumpulan.

Perjalanan kami ke pengubahsuaian sangat bermakna, di mana kami muncul sebagai Top Glove yang lebih baik dan kuat hari ini. Kami sangat gembira kerana telah menyelesaikan pembayaran pemulihan lebih dari RM150 juta kepada lebih dari 13,000 pekerja migran yang telah membayar yuran pengambilan dan kos yang berkaitan dengan ejen perekrut, membuat penambahbaikan yang besar untuk penginapan pekerja dan melaksanakan talian bantuan pekerja yang diuruskan secara bebas di antara inisiatif lain. Ini hanya permulaan untuk kami dan kami berinspirasi untuk terus menjadi syarikat yang terbaik di mana kami dapat memastikan kesihatan, keselamatan dan kesejahteraan orang kami sentiasa dijaga.

Anugerah Dan Penghargaan

Top Glove juga berbesar hati kerana telah memperoleh beberapa anugerah di The Edge Singapore Billion Dollar Club 2021 (BDC) yang berprestij. Di bawah sektor Perkhidmatan Kesihatan & Farmaseutikal, ia memenangi 3 anugerah iaitu Best Performing Stock, Fastest Growing Company dan Best in Sector dan yang seterusnya, juga dinobatkan sebagai Pemenang Keseluruhan untuk tahun 2021 di antara 90 syarikat lain di BDC tahun ini.

Lebih mengukuhkan kedudukannya sebagai majikan pilihan, syarikat ini telah diiktiraf di HR Asia Awards Best Companies to Work for in Asia, untuk tahun ke-5 berturut-turut pada bulan Mac 2021. Pada bulan Jun 2021, Top Glove juga memperoleh banyak kemenangan di Human Resources Excellence Awards 2020, dalam bidang HR Excellence in Leadership Development (Emas), HR Excellence in Talent Management (Perak), Most People Focused CEO (Perak) dan HR Excellence in Corporate Wellness (Gangsa). Top Glove juga dinobatkan sebagai Pemenang di Best Employer Brand Graduates’ Choice Awards 2021 dalam kategori Pengeluaran dan juga memenangi Gangsa di Employee Experience Awards 2021 (Malaysia) untuk Best Employer Branding.

Pandangan & Prospek

Melihat ke hadapan, kami yakin bahawa permintaan terhadap sarung tangan akan terus meningkat, meningkat antara 10% hingga 15% setahun, didorong oleh peningkatan tahap kesedaran dan standard kebersihan yang tinggi dalam sektor perubatan dan bukan perubatan. Pertumbuhan permintaan juga akan disokong oleh kemunculan virus baharu, walaupun ketika pandemik beralih kepada endemik dan dunia mulai “hidup dengan COVID”. Selain itu, dengan penjualan semula ke Amerika Syarikat yang merupakan pasaran utama untuk Top Glove, kami optimistik terhadap peningkatan dalam Volum Jualan pada suku-suku akan datang.

Ini tidak bermaksud tidak akan adanya cabaran. Kami menjangka bahawa ASP akan terus menyusut secara industri, manakala pelanggan menggunakan sikap “tunggu dan lihat” dengan jangkaan ASP mencapai tahap normal. Persaingan dari pengeluar, terutama dari luar negara juga semakin rancak.

Walaupun persekitaran perniagaan dijangka sukar, kami bersedia dengan baik. Aliran tunai yang kuat yang telah kami bina sepanjang TK2021 akan membolehkan kami membiayai pengembangan berterusan dan juga merebut peluang untuk penggabungan dan pemerolehan (M&As) apabila timbul. Sejajar dengan itu, kami juga akan terus melabur dalam R&D dan memanfaatkan teknologi canggih untuk menyusun semula proses kami ke arah kualiti produk, kecekapan dan inovasi yang lebih tinggi.

Prestasi TK2021 kami yang kuat dalam menghadapi persekitaran operasi yang sukar juga memberi kami alasan yang baik untuk optimis tentang masa depan; kerana kami telah melihat daya tahan kakitangan kami, yang telah mendorong kemampuan kami untuk menyesuaikan diri dan berkembang maju dalam keadaan yang paling mencabar.

Inilah sebabnya mengapa kami masih berani beroptimis. Rancangan bercita-cita tinggi kami untuk masa depan tetap kukuh termasuk untuk menjadi syarikat Forbes dan Fortune Global 500, menjelang tahun 2030. Kami juga akan terus mengejar penyenaraian utama berganda di Bursa Saham Hong Kong (HKEX) dimana kami telah membuat penyerahan semula pemohonan A1 pada 28 Oktober 2021.

Ulang tahun ke-30 kami mungkin bertepatan dengan tahun yang paling mencabar, tetapi kami terus maju ke hadapan, dengan keyakinan sepenuhnya daripada sokongan yang berterusan dari Top Glovers kami akan memastikan syarikat kekal cergas dan berada dalam kedudukan yang baik untuk meraikan lebih banyak ulang tahun yang akan datang.

Penghargaan Yang Tulus

Dalam masa yang paling mencabar, kami belajar dengan penuh kebanggaan ukuran penuh ketahanan kami sebagai syarikat untuk bangkit dalam menghadapi kesukaran dan terus maju dengan kuat.

Kami ingin mengucapkan terima kasih yang tulus kepada Lembaga atas nasihat bijak mereka dan penglibatan mereka, yang sangat berharga dalam menavigasi perairan yang kasar dan membantu mengarahkan syarikat dengan selamat ke darat.

Kepada kakitangan kami, Top Glovers kami, anda telah menghadapi cabaran pada masa yang belum pernah terjadi sebelumnya dengan komitmen yang tiada tandingannya. Ucapan terima kasih kami yang mendalam atas sikap rajin dan tekun atas kerja keras dan dedikasi anda, yang telah membolehkan syarikat kami mengharungi tahun yang mencabar dan muncul dengan lebih kuat. Anda telah membuat kami bangga. Kami lebih berbesar hati untuk menyaksikan sikap tidak mementingkan diri sendiri, untuk menghantar makanan dan keperluan setiap hari kepada rakan-rakan kami yang terjejas oleh PKPD. Syabas, anda telah benar-benar membuat kami bangga.

Kepada pelanggan, pembekal, pemegang saham dan pihak berkepentingan kami yang lain; terima kasih atas sokongan, maklum balas dan kritikan, yang memberi inspirasi dan mendorong kami untuk melakukan lebih banyak perkara dan melakukan yang lebih baik, menghasilkan yang terbaik dalam diri kami.

Kami juga mengambil kesempatan ini untuk mengakui dan memberi tabik hormat kepada petugas barisan hadapan dan pengamal perubatan kami yang terus menjalankan tugas mereka dengan penuh keberanian dan pengorbanan yang besar. Anda adalah wira negara kami dan ia adalah satu penghormatan yang berbeza untuk menyarung tangankan anda dan rakan-rakan petugas barisan hadapan anda di seluruh dunia.

TAN SRI DR LIM WEE CHAIPengerusi Eksekutif Top Glove Corporation Bhd2 November 2021

DATO’ LEE KIM MEOWPengarah UrusanTop Glove Corporation Bhd2 November 2021



Untuk lihat pernyataan yang dikeluarkan oleh U.S CBP mengenai perkara ini, sila imbas kod QR atau layari pautan ini; https://public-inspection.federalregister.gov/2021-19535.pdf

Yayasan Top Glove menyumbangkan RM100,000 serta peralatan perlindungan diri yang terdiri daripada sarung tangan, pelitup muka dan cecair pembasmi kuman yang dihasilkan oleh Top Glove kepada Ibu Pejabat Polis Daerah Shah Alam pada 15 Jun 2021

(Dari kanan) Cik Ng Mei Fong, Pengurus Kanan Yayasan Top Glove, Dato’ Abdul Rahim B. Abdullah, Penasihat Hal Ehwal Kerajaan dan Tuan ACP Baharudin Bin Mat Taib, Ketua Polis Daerah Shah Alam, diiringi bersama pegawai-pegawainya

68 69



致权益持有人的信函及致权益持有人的信函及管理层讨论与分析管理层讨论与分析


极具象征性的一极具象征性的一年，创造价值，年，创造价值，共享佳绩共享佳绩

诸位权益持有人，您好，诸位权益持有人，您好，祝您身体安康。祝您身体安康。

在这史无前例的一年里，我们领略到了健康乃真正重要的财富。随着疫情的肆虐，顶级手套加强高品质手套的生产量，以满足医护人员在前线为全球对抗新冠病毒时，对个人防护用品（PPE）的迫切需求。

全球陷入危机的当儿，集团自身亦面临挑战。其中包括美国海关及边境保护局（CBP）暂停我们于马来西亚出口至美国的手套业务，同时集团员工亦受到病毒的影响；我们从解决此些事件中获得了许多宝贵的启发。

在集团为诸位权益持有人提供长期价值及增长的同时，集团致力以保卫生命为2021财务年的首要任务及宏伟壮志。顶级手套必将克服重重障碍，并创下另一极具象征性的一年，于集团的30周年庆。

管理层讨论与分析管理层讨论与分析

于2021财务年，顶级手套销售额达至马币163.6亿，较2020财务年飙升126%。净利润亦增长至马币78.2亿，相比上一财务年飞涨337%。与此同时，截至2021年8月31日，集团净现金流处于健康水平，为马币17.4亿。以下图表总结集团2021财务年的业绩表现。

2021财务年业绩里程碑2021财务年业绩里程碑

创造了9,720个工作岗位工作岗位

历史新高的销售额销售额马币马币163.6亿亿

非凡的净利润净利润马币马币78.2亿亿

史无前例的总股息支付总股息支付马币马币52.1亿亿

马币马币22亿亿的所得税所得税贡献于国家建设和经济增长

马币马币2.2亿亿投入于兴建员工住宿员工住宿

马币马币1.91亿亿捐赠捐赠于社区疫情救济

马币马币4,400万万投资于ESG相关举措ESG相关举措

营业额，马币 ’ 百万营业额，马币 ’ 百万营运盈利，马币 ’ 百万 & 赚利 %营运盈利，马币 ’ 百万 & 赚利 % 净现金 / (借贷)，马币 ’ 百万净现金 / (借贷)，马币 ’ 百万每股收益，仙每股收益，仙每股股息，仙每股股息，仙净利润，马币 ’ 百万 & 赚利 %净利润，马币 ’ 百万 & 赚利 %

FY2021 FY2021 FY2021 FY2021FY2021FY2020 FY202031/8/2019

FY2020 FY2020FY2020(2,251)

31/8/202131/8/2020

7,237

2,421 21.9 11.81,789

16,361

10,285

1,7432,343

95.9 65.1

7,824

+126%

+325%+338% +452%

+337%

33% 25%63% 48%

集团于2021财务年取得无以伦比的价值增长集团于2021财务年取得无以伦比的价值增长并与权益持有人共享佳绩并与权益持有人共享佳绩

126%相比FY2020

337%相比FY2020

452%相比FY2020

70 71



集团优秀的年度财务业绩归功于高涨的手套需求量以及强劲的平均销售价。随着疫情持续的肆虐，配合市场定价趋势，平均销售价上涨了约138%。

相比2020财务年，销售量保持于同样水平，随着以下因素：2020年11月于集团宿舍实施的加强行管令（EMCO）导致手套生产间歇性中断；部分工厂出现的新冠病例；2021年7月于雪州落实的全州EMCO，在此期间手套领域10天不被获准运营；以及整个财务年内与行动管制令（MCO）相关的封锁而导致此期间受影响设施必须降低其运营产能。产量的减少亦对设施使用率带来不利影响，并推高生产成本。

不仅如此，随着美国CBP对顶级手套颁布的调查结果，集团于2021年4月至2021年8月期间被迫暂停由马来西亚销售至美国的手套业务，该禁令已于2021年9月10日解除。

与此同时，基于手套需求量增加所导致的供应短缺，原材料价格于2021财务年首半年上涨。随着2021财务年丰厚的利润，集团因此必须缴付更高的有效税率。

2021财务年各地区销售量（数量）比较2021财务年各地区销售量（数量）比较

北美洲北美洲

拉丁美洲拉丁美洲

西欧西欧

非洲非洲

东欧东欧

中东中东

亚洲（日本除外）亚洲（日本除外）

日本日本

60%

50%

40%

30%

20%

10%

FY11

全球市场全球市场排名排名

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

2%

9%

23%

24%

42%

47%

43%

55%

22%

27%26%

20%

19%

11%

8%9%7%

3%2%1%

0%

丁月青手套无粉天然乳胶手套有粉天然乳胶手套 PVC手套/TPE手套/CPE手套手术手套

2011财务年至2021财务年产品组合销售数量百分比2011财务年至2021财务年产品组合销售数量百分比

自2020年自2004年自2018年

于2021财务年期间，发展中国家疫苗推出速度缓慢，致使其国家新冠病毒案例的提升。基于天然乳胶手套为他们的首选，集团意识到需求量逐渐从丁腈手套转至天然乳胶手套。

尽管如此，集团全面化的产品组合，加上战略性地转换生产线于丁腈手套及天然乳胶手套之间的能力，促使集团得以更好地满足及迎合各个市场的需求，从而降低其业务风险。

在顶级手套将稳利集团的营运成功扭转后，新增产能使集团得以满足手套紧迫的需求量并提供可观的净利润，让集团持续品尝收购带来的成效。

15%

10%

20%

2%

18%

6%

22%

7%

北美洲西欧

东欧

日本

中东

非洲

拉丁美洲

亚洲（日本除外）



72 73



不局限于财务表现：追求永续未来不局限于财务表现：追求永续未来

集团财务业绩固然重要，但与其并列重要性乃实践此业绩的过程。作为领域的领军者，我们致力于履行身为全球企业公民的责任，并持续加强集团于永续发展支柱：环境、社会及治理（ESG）方面的努力，时刻谨记我们有能力并有义务献出更佳的表现。

为将ESG元素更深入地融入于业务当中，并象征于此领域未来更大努力的开端，集团宣布2021财务年为顶级手套的 ESG之年，并已制定了于2025财务年前，励志达到的中期目标。同时，本集团正着手与外部顾问探讨以科学为基础的目标设定，以便使净零碳排放的路线图更为明确。

作为22,000名员工的首选雇主，我们致力于成为力所能及的最佳企业。这包括为集团外籍劳工制定零成本招聘政策、提供舒适住宿和设立申诉管道、以及完善的健康，安全和安保措施。于2021年1月，集团运营亦获得了独立第三方国际英国顾问的验证，证明集团没有触发国际劳工组织（ILO）11项系统性强迫劳动指标的任何一项。

欲知更多有关顶级手套于ESG之年及未来为永续增长策略所贡献的努力及承诺，请参阅第88页。

企业发展企业发展

顶级手套于此充满挑战的环境中斗志昂扬，坚持履行及实践其增长议程。

顺应全球手套需求量持续扩展产能顺应全球手套需求量持续扩展产能

2021财务年，集团为确保关键时期不间断的手套供应，正持续稳步扩大其产能。尽管手套需求量于财务年后期尾随全球疫苗迅速推出后逐渐缓和下来，但预计其增长将于疫情消退后稳定于较高水平，相较疫情爆发前10%的年增长率。

于此同时，集团致力于投入马币6亿兴建位于雪州万津的一间丁腈乳胶（NBR）加工厂，以更好地确保丁腈乳胶的稳定供应及质量，并减少因原材料价格波动所带来的影响。该工厂的建立将分成四个阶段进行，第一阶段预计将展开于2022年第三季度，产能为5万吨，而工厂将于2024年末季度竣工，总产能为20万吨。

集团正进行中的扩展亦包括位于雪州巴生的伽马消毒工厂，旨在降低手术手套的集中性风险并加快消毒过程，以便缩短上市的时间。该工厂第一阶段目标于2022年首季度投入运作，而最后的第三阶段预计将于2023年第三季度完成。该设施的资本支出估计为马币6,500万，每年将能提供消毒于10亿只的手术手套。

通过研发及先进科技推动集团业务迈向未来通过研发及先进科技推动集团业务迈向未来

研发及科技依然是顶级手套改进和创新的关键驱动力，我们将持续在这至关重要的领域提升自身的能力。

截至2021年11月1日，我们的研发部门总共有1,375名研究人员，分布于研发中心内及工厂部门。集团内研究人员的智囊库包括：39名博士学位持有者、137名硕士学位持有者、1,158名学士学位持有者及41名具有其他资格的人员，促使集团得以为未来业务永续发展进行多学科研究。

于2021年4月17日，顶级手套与国立台湾大学马来西亚校友会合作意向书的签约仪式

2020十二月

2021九月

2022 2023 2024 2025 2025十二月

总产能，亿只总产能，亿只

目前，顶级手套已成立10所研发中心，其中的7所位于马来西亚，2所位于泰国及1所位于中国，每所研发中心分别专注于不同领域的研究，使集团能够适应全球市场迅速变化的趋势。除此之外，另外2所研发中心正在筹备当中，其中1所将配备最新科技及自动化设施，并专注于工业4.0及生产。

多年以来，集团对研发的高度重视取得了进步及突破，其中包括：先进生产线的建设、机器人手套处理系统和综合运营管理系统、人工智能视觉摄像头及机械臂，都将使集团长期保持其竞争能力。

顶级手套医疗保健中心（TGHC）生产一系列综合居家、个人及口腔护理产品，包括：消毒液、抗菌洗手液、洗碗液及地板清洁剂，疫情肆虐期间突显了此些产品的重要性，亦为集团核心手套业务增添补助。TGHC，由研发团队创立，乃一所通过 ISO 9001：2015 (QMS) 和 ISO 22716：2007 (cGMP) 认证的 ISO 合法企业，及获得国家药品管制局（NPRA）的批准。所有 TGHC 产品配方均优先采用天然原料、最少量的化学成分且零伤害。

相应地，集团于未来增长议程中，投资计划陆续有来。顶级手套将持续其有机产能的扩展，根据全球手套供需情况进行适当的调整，建立更多具备自动化及电脑化的先进工厂，同时为现有设施提供升级。截至2025年12月31日，顶级手套预计将拥有59间工厂，其中包括46间手套工厂和13间非手套工厂，1,486条手套生产线及2,010亿只手套年产量。

集团2021年至2025年的有机扩展计划详述如下：



9001,000

+110

+11% +260

+23% +250

+18%+390

+24%

2,010

74 75



从科技角度来看，集团工厂持续迈向机械化发展。通过自动化配方的筹备、生产线管控系统及人工智能视觉检测系统，集团努力迈向 “ 零接触 ” 的智能生产及包装系统。凭着集团顶尖的设施，最为先进的包装机器和自动驾驶车辆，集团员工亦得以享受更健康的工作环境，同时确保集团客户一贯地获得于最佳卫生条件下生产的高品质手套。

此外，集团亦投入资金于制造运营管理系统，以将每个运营阶段联系在一起，此些阶段乃：计划、生产、检验、库存及物流，目标将与集团ERP系统合成为一。身处 “ 供应链管制塔 ” 的顶峰，此全企业化的结合将使团队更深入了解由人工智能系统驱动的流程，以识别及克服生产瓶颈。

此些举措将不仅实施于集团现有工厂，亦会被嵌入至新的顶级手套创新园区（TGIC)，乃集团目前最为先进的制造及研发中心。凭着顶级手套一流的手套制造科技，TGIC将成为集团于手套制造领域中下一个重要的里程碑，这亦展示我们对持续改进及秉持以高效率低成本提供一贯高品质手套的承诺。TGIC首阶段预计将于2022年第三季度开始运营，竣工日则预计为2025年次季度，并提供200亿只的手套年产量。

同时，顶级手套坚守其承诺于降低集团业务对环境带来的影响，并安装管理系统来维护集团运营与环境之间的和谐。为了确保集团运营的永续性，我们正在进行一系列用于监测和管理能源、天然气及水源的项目，包括持续投资于太阳能、先进工业污水处理系统（IETS）及原料回收过程。

不仅如此，集团也通过工业物联网（IIoT）、WIFI6和Edge计算技术将数千个数据点连接至网络，以继续扩展我们的云端制造设施及构建我们的 “ 大数据终端 ”。通过与集团分析员及数据人才的合作，我们将此所有数据导入仪表板及分析报告，以近乎实时的方式呈现出顶级手套工厂增广性的视图。作为间接附属效益，这些报告的数据化亦减少集团的纸张使用量，配合集团无纸化的方针。

在丰盈的一年达至创记录的高股息在丰盈的一年达至创记录的高股息

配合集团为奖励其大约136,000名大众股东及共享佳绩的承诺，我们宣布年度总股息为空前的每股65.1仙或总值马币52.1亿，相比2020财务年每股11.8仙的全年股息增长了452%。我们亦感到高兴得以于2021财务年实行季度制的股息支付。

集团于增强手套生产的同时，我们也意识到确保安全生产的必要性，并提高对集团员工及我们所服务社区福祉的关注。为此，自疫情爆发以来，集团已采取新冠病毒预防措施，并不断根据变化迅速的疫情来进行调整及加强。其中包括：严格执行的新冠病毒标准作业程序，保持社交距离于工厂和员工住宿，同时亦进行定期突击检查于确保以最高标准遵守马来西亚政府制定的条规。此外，为了提升意识并加强遵守预防措施和标准作业程序，集团亦展开了一系列的培训。

于2020年11月17日至2020年12月14日，随着集团暂停位于巴生中路工厂的营运，我们对受影响设施进行严谨的消毒过程，并通过加强健康及安全措施以获准重新开放。

顶级手套于2021年7月19日参与一项公共与私人领域之间合作的疫苗项目：公私合作工业免疫计划（PIKAS），旨在加速员工的疫苗接种。迄今，马来西亚99%的员工已完成双剂疫苗接种，而全集团内完成第二剂疫苗接种的员工达98.8%。

除了遵守标准作业程序，作为该有的预防措施，集团迄今已投入大约马币700万资金为员工进行新冠病毒检测。

为了减少不必要的社区接触及曝光，集团在2021财务年投资了马币720万，为员工提供津贴健康素食餐，每天送至员工的工厂／办公室。根据此项计划，劳工只需支付马币1令吉即可享用健康的素食餐。同时，我们的食堂和餐饮已实施无现金支付。为迎接新常态，顶级手套于疫情期间实施了一项居家工作（WFH）政策，利用科技迅速启动线上会议、培训及线上工厂检查，使集团得以在特殊环境中如常运营。即使员工已重返办公室，大部分会议及培训仍以线上方式进行。

顶级手套劳工学习应用程序（TGWLA）由集团内部开发，旨在让我们的劳工得以进行移动式培训。此外，在进出集团处所时，我们已推出面部识别系统来替代现有的手指扫描，以最大限度减少员工与高触碰率表面的接触。

我们的抗疫响应：我们的抗疫响应：健康及安全为首要任务健康及安全为首要任务



为进一步巩固集团作为首选雇主的地位，顶级手套于2021年3月连续五年蝉联 HR Asia 亚洲最佳企业雇 HR Asia 亚洲最佳企业雇主主的奖项。于2021年6月，顶级手套于2020年人力2020年人力资源卓越大奖资源卓越大奖中获颁多项殊荣，其中包括人力资源卓越领导能力发展（金）、人力资源卓越人才管理（银）、以人为本首席执行长（银）及人力资源卓越企业健康（铜）。此外，顶级手套亦获颁2021年 2021年品牌毕业生首选奖项品牌毕业生首选奖项之制造领域类别的最佳雇主，同时于2021年雇员体验奖项（马来西亚）2021年雇员体验奖项（马来西亚）中获得最佳雇主品牌的铜奖。

美国CBP对调查结果的修改美国CBP对调查结果的修改

随着美国CBP修改对于顶级手套的调查结果后，即2021年9月10日起，顶级手套于马来西亚的营运已获准恢复向美国出口以及销售手套，这亦象征着集团已成功解决所有于马来西亚设施的强迫劳动指标。此正面发展预计将推动顶级手套于马来西亚分部出口至美国的销售量，其市场平均占据集团2021财务年总销售量的15%。

集团对调查结果修改前的经历感到极具意义及谦逊，并令我们从中获益良多，成为了更佳及更强大的顶级手套。集团深感欣慰，针对超过13,000名先前已向招聘代理支付招聘费用及相关费用的外籍劳工，完成了逾马币1.5亿的招聘费补偿金，此外亦投入大量资金于改善员工住宿，及开通一条由独立机构管理的劳工求助热线等措施。这仅象征着集团的一个开端，我们深受启发于持续成为最佳企业，并确保集团时刻专注于维护员工健康、安全及福祉。

欲查看美国 C B P 针对此事件发布的声明，请扫描此二维码或浏览此链接：https://public-inspection.federalregister.gov/2021-19535.pdf

展望与前景展望与前景

展望未来，我们坚信手套需求量于医疗及非医疗领域健康意识和卫生水平提升的推动下，将不断稳步上升，每年增长10%至15%。即使此大流行病转变为地方疾病及全球开始习惯 “ 与新冠病毒共存 ” ，新病毒株的出现仍然将导致需求量的增长。此外，随着集团恢复将手套由马来西亚出口至美国（顶级手套的主要市场），我们对未来几个季度销售量的改善保持乐观的态度。

集团深知挑战的潜在性。整个领域的平均销售价预计将处于放缓趋势，而客户亦采取观望的态度，于预期中平均销售价将会正常化并推迟补货活动。至于来自其他制造商的竞争，尤其于国外的制造商，亦越发激烈。

虽然运营环境预计将会非常艰难，但我们已做好充分的准备。集团于2021财务年期间建立的强大现金流储备将使我们得以提供资金于持续扩展业务，并在适当的时候抓紧价值并购的良机。与此同时，集团亦将继续投资于研发，并利用先进科技来重新设计我们的生产流程，以迈向提高产品质量、效率及创新。

面对严峻的运营环境，集团于2021财务年的卓越表现亦让我们有充分的理由对未来持乐观态度；尤其于此期间我们见证了集团员工的韧性，在集团最艰难的时期得以适应并茁壮成长。

这亦解释为何集团仍勇敢于追求梦想。我们对未来的雄心壮志始终如一，包括于2030年前跻身福布斯和财富世界500强之排行榜。我们亦将持续进行双边主要上市于香港交易所（HKEX），为此集团已于2021年10月28日重新提交上市申请。

集团成立30周年或恰逢我们迄今最具挑战性的一年，但我们坚定地迈向未来的日子，亦满怀信心凭着顶级手套成员坚定不移的支持，将确保集团永保强健并准备好迎接未来更多的周年纪念日。

衷心感谢衷心感谢

艰难时期终将道破个人及企业的能耐。当集团处于最艰难的时期，我们充分见证了本身作为一家富有韧性的企业，并为此深深感到自豪。这亦使集团能够从逆境中奋起并锐意进取，勇往直前。

在此，我们想对董事会表示衷心的感谢，感恩他们睿智的高见及参与，有助于集团于惊涛骇浪中的安全航行及上岸。

至我们的顶级手套成员们；您们给予无可替代的付出以迎接这期间前所未有的挑战。我们衷心感谢您们抱持 “ 势在必行 ” 的态度并辛勤工作及付出贡献，让集团得以度过这一极具挑战性的一年，并茁壮成长。不仅如此，更让我们深感欣慰的是，集团见证了您们无私奉献的精神，于疫情肆虐期间为受加强行管令影响的同伴们提供食物及必需品。真棒！您们乃集团的骄傲。

致我们的客户、供应商、股东及其他权益持有人；感谢您们的支持、反馈及具建设性的批评，它们激励且推动我们做得更多，做得更好，并发挥我们最好的一面。

我们欲借此机会向我们的前线人员及医护人员致敬，他们持续勇敢并不惜付出巨大的牺牲以坚守职责。您们乃国家的英雄，顶级手套为能向世界各地的前线人员提供手套而深感至高的荣誉。

丹斯里林伟才博士执行主席顶级手套集团2021年11月2日

奖项和荣誉奖项和荣誉

顶级手套亦于权威的《The Edge Singapore》2021年十亿新元《The Edge Singapore》2021年十亿新元俱乐部俱乐部中荣获多个奖项。于医疗保健服务及制药领域，集团获颁最佳表现股票、最快增长企业及该领域中最佳企业3个奖项，其中最为显著的是，集团击败了其余90家企业，被评为2021年的总赢家。

拿督李金谋董事总经理顶级手套集团2021年11月2日

https://public-inspection.federalregister.gov/2021-19535.pdf

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HOW WE CREATE VALUE


THE MARKET AND TRENDS THAT SHAPE USTHE MARKET AND TRENDS THAT SHAPE US

As a global player, our performance is affected by the various business dynamics, market sentiments and societal changes. We consistently monitor these changes to mitigate any new and existing risks and capture new opportunities to ensure business continuity.

Ageing Population and Higher Life Expectancy

Product Structure Transformation and Technology UpgradingWider Applications of Gloves Across Industries

According to the United Nations, 9% of the global population are over the age of 65 with the number expected to increase to 16% by 2050 due to growing population in emerging countries. Life expectancy has also increased overall. The United Nations has observed, between 1990 to 1995 and 2015 to 2020, the global life expectancy at birth has increased 12% and is expected to rise in the next 50 years. As senior population are prone to different diseases and require more medical checkups, the rising number of aged population has pushed the demand for healthcare products and services, resulting in higher glove consumption.

Natural rubber latex gloves, being more comfortable and higher dexterity than nitrile latex gloves, have been the mainstay for the medical and industrial sectors for some years. However, concerns over latex allergies have motivated glove manufacturers to improve the performance of their nitrile latex gloves and nowadays, nitrile latex gloves are almost as comfortable and permeable as natural rubber latex gloves. In addition, nitrile latex gloves can be sterilised without any effect on its physical characteristics. Thus, with its excellent performance, many industries have opted for nitrile latex gloves.

The ASP of nitrile latex gloves is higher than other major materials which made it difficult to penetrate the market of developing areas. So, to make products more cost-effective, glove manufacturers have invested heavily in automation and digitalisation resulting in higher productivity and lower overheads, improving companies’ competitiveness. ASPs of gloves will gradually decrease in the future along with improved production efficiency and utilisation rate.

With gloves being very versatile in nature, other industries, such as food and beverages, biotechnology etc., have adopted gloves. The emerging 5G technology, AI and IoT, have driven the demand of gloves used in research and development, industry and electronics. Governments globally also have mandated stricter occupational safety regulations, requiring corporations to provide safer work environments for its workers.

To further improve workers’ safety, corporations have implemented the ISO45001 occupational health and safety management systems to regulate and improve safety in the work environment. For the food and beverage industry, developed countries have developed guidelines and recommendations for hygiene purposes by wearing gloves to prevent foodborne diseases. Hence, these factors would likely contribute to glove demand in the future.

Source: Frost & Sullivan Report

Outbreak of Pandemics

As an inexpensive protective barrier for people, demand of gloves can be seen during health threats such as SARS, H1N1 and most recently, COVID. The increasing health and safety concerns have led to a surging demand for personal protective equipment

Growing Economy and Hygiene Awareness

In recent years, emerging countries’ economies have increased moderately on the back of positive global trade performance. According to the IMF, emerging markets and developing economies have seen an increase of aggregate GDP from USD29.5 trillion in 2015 to USD34.0 trillion in 2020, translating to a CAGR of 2.9% from 2015 to 2020. Driven by the growing economy, governments can devote more resources to the national health budget to improve domestic health systems. The global health expenditure per capita recorded an increase from USD999.0 in 2015 to approximately USD1,105.1 in 2020. Thus, given the current situation of the global economic development, the overall demand and penetration rate of gloves worldwide is expected to rise.

(PPE) including disposable gloves. Besides clinics and hospitals that have implemented heightened precautionary measures, countries have also implemented stricter regulations to control the pandemic and ensure production quality.

These factors have stimulated global glove demand to unprecedented heights. Average selling prices (ASPs) have also seen a significant increase due to constrained supply resulting from increasing order enquiries from governments globally. Glove demand is expected to stabilise post-pandemic although it will not return to pre-pandemic levels due to increased hygiene awareness and the uncertainty of the pandemic. Thus, governments will stock up on PPE in preparation for future waves of COVID and the flu season.

78 79

HOW WE CREATE VALUE


1

2

3

4

1. Well-positioned global market leader

2. Comprehensive and high quality product portfolio

3. Extensive sales network and diverse customer base

4. Strategic manufacturing footprint with best-in-class support

5. Strong research and development capabilities and technical expertise

6. High corporate governance standards

Competitive Strengths

Capital Reinvestment

Commercialisation

OUR VISION

To be your world class partner in

gloves and healthcare products

OUR MISSION

Ensuring safe human protection

globally

For more information, please refer to page 177 to 290


For more information, please refer to page 12 to 14, page 53 For more information, please refer to page 166 to 169

For more information, please refer to page 108 to 133 For more information, please refer to page 95 to 107

OUR CAPITALS AND SIGNIFICANCE

• Our strong generation ability allows us to effectively implement and execute our strategies for the future.

• Our targeted products portfolio are backed by an empowered innovative mindset and trusted brand value to develop market-leading products.

• Our high quality facilities and complex manufacturing expertise across the globe give us a broad revenue base to tap into.

• We focus on developing quality relationships with our stakeholders and bolstering our corporate reputation while contributing back to the communities.

• With strong focus on training and development, our highly talented people is the driving force behind our continued success.

Financial Capital

Intellectual Capital

Manufactured Capital Social and Relationship Capital

Human Capital

Our model is built with sustainability and responsibility in mind. We leverage on the six capitals to drive our strategic intents, which considers our material matters and competitive strengths, which in turn generate the output and the outcomes which reflect the value created for our stakeholders.

OUR OUTCOMES FOR FY2021

OUR OUTPUTS

Displaying Financial Strength and Sharing Wealth

• Net profit of RM7.82 billion• Earnings per share of 95.9 sen• Total dividend of RM5.21 billion

distributed to shareholders

Developing Quality Products and Providing Access Worldwide

• Capital expenditure of RM1.36 billion

• RM3.96 billion worth of property, plant and equipment

• Exports to 195 countries• 27 in-house brands

Investing in Innovation

• Investment of RM100.73 million into research and development

• 151 patents applied• 15 new products developed

Developing, Engaging and Leveraging on Our People

• Average training hours per employee of 63.15 hours

• Total training expenses of RM1.18 million

Giving Back To The Local Communities and The Nation

• Total volunteering hours of 61,152 hours

• RM191 million donated to COVID relief efforts since COVID started via Top Glove Foundation

• Total tax of RM2.2 billion contributed to the government

Creating A Sustainable Environment for All

• 1.66 GWh generated from solar panels

• 1.43 million cubic meter of water recycled and reused

SI

E

S

C

C

S

E

G

LC

E

N

G

LC

SI

N

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OUR VALUE CREATION MODELOUR VALUE CREATION MODEL

To be the world’s

undisputed leading producer

of latex gloves

To materialise strategic

acquisitions that can contribute at

least 20% additional revenue

To be the world’s leading

nitrile glove manufacturer

To be the fastest growing surgical

solutions provider

Product Pipeline Development

Manufacturing and Supply Chain Operations

Business Activities

ENVIRONMENTImproving efficiency

and investing in solutions that mitigate

negative impact on the

environment.

SOCIALInvesting in our

employees’ social well-being to create

and foster a supportive and conducive working

environment.

GOVERNANCEPursuing the highest levels of compliance to foster trust

in our business practices.

Affected Stakeholders

Customers

Local Community

Non-Government Organisations (NGOs)Government/Regulators

SuppliersShareholders/InvestorsSI

E C

S

G

LC

NEmployees

Strategic IntentsMaterial Matters

• Our commitment towards environmental protection minimises our environmental impact which ensures our compliance to regulations.

Natural Capital

Latex Gloves

SurgicalSolutions

NitrileGloves

HealthcareProducts

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HOW WE CREATE VALUE


Group revenue surpassed the RM16 billion mark with total production capacity achieved 100 billion pieces

Outgrow competition in preferred growth market

Expanded the nitrile glove capacity with completed new factories and refurbishment of old factories

Achieve nitrile glove operational excellence with consistent quality and efficient cost

1. Implemented cloud and dashboard system to monitor manufacturing performance

2. Installed robotic packaging system to reduce reliance on labour

1. Build in-house sterilisation facilities as a comprehensive solution provider

2. Expand surgical glove capacity

Diversified business risk and generation of new sustainable business revenue

1. Launched household products

2. Expanded into personal care products which include hand sanitiser and antibacterial hand wash

Business diversification with Environmental, Social and Governance considerations to create long-term value for all of our stakeholders

Progress Made in FY2021



Priorities in FY2022



Progress Made in FY2021 Priorities in FY2022

OUR BUSINESS STRATEGIESOUR BUSINESS STRATEGIES

To be the world’s number one gloves manufacturer, we recognise that sustainable and profitable growth requires solid, responsible and dynamic strategies relevant to the stakeholders. Our focus areas, namely cost efficiency, customer service, technological capabilities and strategic acquisitions, drive our strategic intents which aim to expand and cement our operations, drive business competitiveness through time and create meaningful value for stakeholders. Supported by our underlying Value Creation Model, we have established ourselves as a strong global market player in the glove manufacturing industry.

MEASURES TO ACHIEVE OUR STRATEGIC INTENTS

STRATEGIC INTENTS

Strategic Intent 2 : To be the world’s leading nitrile glove manufacturer

Strategic Intent 3 : To be the fastest growing surgical solutions provider

Strategic Intent 4 : To materialise strategic acquisitions that can contribute at least 20% additional revenue

Cost Efficiency

Customer Service

Technological Capabilities

Strategic Acquisitions

1. Intensify quality control checks by respective Quality Assurance teams

2. Continue upgrading the quality control digital systems with the latest technology in manufacturing

3. Manage warehouses’ inventory levels to ensure optimisation of storage space and prevent any backlog orders to customers

1. Maintain base levels for inventory to meet the delivery and produce more once inventory falls below predetermined standards

2. Consistently engage with customers to understand their needs, market trends and suggestions

3. Develop a feedback system for customers to identify and overcome products’ and services’ shortcomings

4. Move towards digitalisation to minimise workload and human error in operational management

1. Engage a reputable recruiting agency to facilitate the search for Industry 4.0 experts

2. Hiring managers to attend Industry 4.0 training workshops

3. Closely monitor the budget allocated for investment in Industry 4.0 initiatives to prevent overspending

4. Monitor manufacturing performance as KPI to ensure investment efficiency

5. Invest in cybersecurity training for IT employees6. Continuous education on IT security for all employees

1. Recruit suitable and quality M&A talents2. Retain and continue to train the right talent3. Closely monitor M&A processes and integration

post-acquisition to ensure synergies are achieved4. Introduce long-term incentive plans with achievable

goals to motivate the acquisitions team to actively seek opportunities and achieve synergies while ensuring alignment of long-term objectives between employees and stakeholders to prevent short-termism

Strategic Intent 1 : To be the world’s undisputed leading producer of latex gloves

Financial Increased capital spending in expanding production capacity

Manufactured Greater production capacity of surgical gloves

IntellectualDigitalised systems to enhance productivity

Social & RelationshipStronger customer relations

ve

ve

ve

ve

Financial Increased spending on technology upgrades

Manufactured System upgrades to production lines

Intellectual1. Improved quality and efficiency in production processes2. Stronger brand reputation

Social & RelationshipStronger customer & stakeholder management

ve

ve

ve

ve

Financial Increased capital expenditures

Manufactured Improved production efficiency

Intellectual1. New developments in R&D2. Operational excellence in glove segment

HumanTechnology experts positions recruited and retained

Social & RelationshipImproved shareholders’ confidence

ve

ve

ve

ve

ve

Financial Required capital for M&A and higher salaries for retainment

Financial Diversified business risk and generation of new sustainable business revenue

Intellectual Greater diversification of product offerings

HumanM&A talents recruited and retained

Social & RelationshipImproved confidence and security in stakeholders

ve

ve

ve

ve

ve

Affected Capitals:

Affected Capitals:

Affected Capitals:

Affected Capitals:

OUR FOCUS AREAS

82 83

HOW WE CREATE VALUE


MANAGING OUR RISKS AND OPPORTUNITIES MANAGING OUR RISKS AND OPPORTUNITIES

RISK CONTEXT

MITIGATION MEASURES OPPORTUNITIES RELATED MATERIAL MATTERS

1. Conducted due diligence and detailed analysis on prospect countries or new investment projects before presented to the Executive Committee

2. Assessment and deliberation by the Board Risk Committee of new investment project risks

3. Engagement of experienced and capable external advisors in risk mitigation

1. Acceleration of the Group’s business growth from expansion of the Group’s domestic and global footprint

2. Diversification of related segments in core glove business to ensure value creation and our competitiveness

1. Product Quality and Safety2. Customer Experience3. Ethics, Integrity and

Governance

BUSINESS RISK

Top Glove continues to pursue vertical and horizontal expansion by building more gloves factories as well as venturing into non-glove sectors such as face masks and health care products. By extending businesses’ global footprint, it will expose the Group to sovereign risk, compliance risk, political and economic uncertainties such as a change in government, laws, regulations, and fiscal policies of the host countries.


RISK CONTEXT

1. Maintaining sound risk management policies

2. A high standard and cost-efficient preventive maintenance regime

3. Technical and operating efficiency of its assets

1. Scaling up of the Group’s core operations

2. Enhancement of operational capabilities and efficiency provided by a stable and cost-effective platform

1. Product Quality and Safety2. Occupational Health and

Safety3. Supply Chain Management

OPERATION RISK

The Group’s exposure to operation risk arises primarily from the potential equipment breakdown, insufficient raw materials, fire outbreak, electricity interruption, water shortage or gas curtailment which could cause unplanned downtime at the factory production lines.

MITIGATION MEASURES

MITIGATION MEASURES

OPPORTUNITIES

OPPORTUNITIES

RELATED MATERIAL MATTERS

RELATED MATERIAL MATTERS

RISK CONTEXT

RISK CONTEXT

1. Vigilance in identification and address of any potential cyber threats

2. Upgrades and enhancements of Group’s current security systems

1. Strict adherence to COVID Standard Operating Procedures

2. Workplace rotation3. Implementation of a Work-from-

Home schedule for employees 4. Significant improvements in hostel

living conditions to minimise risk of COVID infection

1. Increase in efficiency from technological use in automating production lines, reducing manual labour and improving product quality

1. Safeguards the continuity of its business operation producing critical examination and surgical gloves that provide critical protection to the healthcare industry globally

1. Customer Experience2. Ethics, Integrity and

Governance

1. Labour Management Relations

2. Infectious Diseases

INFORMATION SYSTEM RISK

INFECTION AND PANDEMIC RISK

With the Group’s initiatives towards automation and digitalisation, it increases the complexity on integrating the production at factories with the information management system. The Group’s business may be vulnerable to security breaches to key systems, assets and facilities resulting from cyber-attacks or sabotage. Potential disruptions to operational systems or destruction of facilities from such security breaches can adversely affect the Group’s reputation, business and financial results.

The prolonged COVID exposure especially in Malaysia poses infection risks to the Group’s operation and business. The risk of infection of COVID to the Group’s employees or contractors disrupt business operations.

Our business is diverse and operating in a complex global network has its own risks on the Group’s business. Effectively managing these risks is crucial to creating sustainable value and maintaining competitiveness. Thus, identifying, prioritising and mitigating the risks effectively are central to the Group’s business operations and decision-making processes.

For financial year ended 31 August 2021, the following are significant risks to the Group:

84 85

HOW WE CREATE VALUE


MANAGING OUR RISKS AND OPPORTUNITIES


RISK CONTEXT

1. Installation of solar panels to reduce carbon emission intensity

2. Increase of water treatment plants capacity3. Continuous improvement and upgrading

of IETS equipment to ensure effective treatment of effluent

4. Establishment of the Board Sustainability Committee in March 2019 as oversight for the Group’s sustainability efforts

1. Regular monitoring of changes in requirements to ensure adherence provides reasonable assurance that the Group operates in line with environmental requirements in all operating countries

1. Environmental Compliance

2. Waste and Effluent

ENVIRONMENTAL RISK

There is increasing scrutiny on the Group’s environmental risks with regards to climate-related risk, water consumption, energy usage, effluent and emission discharge and other environmental risks.


RISK CONTEXT

1. Constant monitoring of risk factors to achieve an effective and efficient cost pass-through mechanism

1. Enable the Group to properly manage its funds and maximise its market value while minimising the cost of capital

1. Product Quality and Safety

2. Supply Chain Management

FINANCIAL RISK

As an export-oriented manufacturing entity, the Group’s financial performance is exposed to the risks of fluctuation in foreign currency exchange rates and volatility in commodity prices, particularly the main raw materials in glove manufacturing which are natural rubber latex and nitrile latex. Major movements in key foreign currency exchange rates, such as the US Dollar, and the related commodity prices will create a short-term impact on the Group’s financial performance due to time lag effect of the cost pass-through mechanism.


RISK CONTEXT

1. Active sourcing for alternative materials or suppliers to ensure smooth supply of materials and assembly well ahead of time

2. Pursued potential alternate sources of supply or substitution of materials

3. Ventured into upstream business units such as chemical, formers, latex and packaging to mitigate supply chain disruption

1. Localisation of supply chains to local and Asia vendors indirectly stimulate domestic and Asia’s economic growth


2. Supply Chain Management

SUPPLY CHAIN RISK

The COVID pandemic is a global health threat that exposes the Group to risk of supply chain disruption arising from global shipment congestion and global manufacturing and production crisis. Risk of receiving damaged goods and lack of upstream material heightened due to the Group’s dependency on single source supplier and/or on other countries to fulfilling some components of the raw materials which faced shortages from the local suppliers.


RISK CONTEXT

1. Establishment of a dedicated compliance function to ensure centralised compliance oversight

2. Proactive advice on applicable laws and regulatory obligations given by the Group’s in-house Legal Department and Regulatory Affairs Department

3. In-depth regulatory review prior to commitment to any new project

1. Adherence to local and international laws provides assurance that the Group operates in line with regulatory requirements in all countries

2. Reputation protection from any adverse impact

1. Ethics, Integrity and Governance

2. Environmental Compliance


REGULATORY AND COMPLIANCE RISK

The glove manufacturing sector is subjected to rules and regulations by various regulatory bodies. This includes the potential changes of legislation in Malaysia or other countries since the Group’s products are exported globally. In addition, the Group also has operational presence in USA, Brazil, Germany, Thailand, China and Vietnam. Any changes in the legislation and regulations in these countries could impact the Group’s financial and business prospects.


RISK CONTEXT

1. Implemented the Zero Cost Recruitment Policy and due diligence on recruitment agents to ensure no recruitment fees are collected from workers

2. No forced or excessive overtime by workers as per regulatory requirements

3. Purchased and built new hostels with full facilities and amenities to provide decent accommodation and facilities for workers

4. Conducted social compliance audits to ensure labour compliance requirements

1. Reinforces and reassures commitment to protect human rights and safeguard employees’ well-being

2. Continuous adherence to the Human Rights & Ethical Conduct, which stipulates fair and ethical labour practices in accordance to the Business Social Compliance Initiative (BSCI) Code of Conduct which is applicable to the Group’s employees and supply chain

1. Occupational Health and Safety


3. Human Rights4. Ethics, Integrity and

Governance

HUMAN RESOURCES RISK

Labour and human rights issues highlighted in the media reporting could expose the Group to human resources risk and reputational risk. The Group is committed in the welfare and wellbeing of its workers and is constantly upgrading its labour welfare practices and initiatives.

MANAGING OUR RISKS AND OPPORTUNITIES

86 87

HOW WE CREATE VALUE


FUTURE OUTLOOK FUTURE OUTLOOK

WE ARE WELL POSITIONED TO CAPITALISE ON THE GROWTH MOMENTUM AND ADAPT TO THE RAPIDLY CHANGING MARKET.

First Stage Auto Packing Machine

Advanced Auto Packing System Line

The strong demand for gloves commenced in early CY2020 largely attributed to the COVID pandemic, which saw both demand and average selling prices (ASPs) for glove products peak in 1st quarter of CY2021. However, following the successful rollout of vaccines in Europe and U.S., demand has started to soften since mid CY2021, with ASPs expected to normalise by mid of CY2022.

Additional new capacity from established glove manufacturers in Malaysia and other countries, as well as new entrants to the glove industry, which has increased glove supply, has also resulted in pricing pressure. The challenging situation was also exacerbated by the wait and see approach adopted by customers in anticipation of normalising ASPs and a slow decline in raw materials prices, which we will continue to work closely with our suppliers to adjust correspondingly.

Nonetheless, Top Glove remains upbeat about industry prospects. The global demand for gloves is expected to grow at a rate of 10% to 15% per annum post pandemic, compared with 8% to 10% pre pandemic. As gloves are necessities in the healthcare industry, the elevated awareness around personal hygiene and public health arising from the COVID pandemic is expected to contribute to the higher glove demand growth in the medical and non medical sectors. Developing countries also present the greatest potential for growth in the longer term, given the relatively low level of glove usage. With our diverse range of products, we are well positioned to capitalise on the growth momentum and adapt to the rapidly changing market. Moreover, the strong cash flow reserves which we have built will enable us to fund continuous expansion and also seize opportunities for accretive M&As when they arise. We adopt a long term view in our capacity expansion plans, and are committed to the careful and disciplined execution of our growth strategies. The Group is cognisant that competition is an intrinsic part of business and will continue to focus on product quality, innovation, automation and cost efficiency across all aspects of our operations. Having been in the glove business for 30 years with a proven track record, we are confident of our ability to overcome any challenges. Furthermore, with our

operations in Malaysia resuming sales to the U.S. which is a key market for Top Glove, effective 10 September 2021, we are optimistic of an improvement in sales volume over the quarters ahead.

As a leader in the healthcare product manufacturing industry, we are mindful of our corporate responsibility and remain committed to enhancing our performance in the area of ESG. Accordingly, sustainability has become a key pillars of the Group’s business strategy. The Group is working towards medium term sustainability FY2025 targets and exploring science based target setting towards crystalising a net zero carbon emissions roadmap. Deepening our commitment to ESG, 40% of our management incentives are linked to ESG metrics, ensuring management accountability for the achievement of the company’s sustainability targets.

Advanced Auto Stacking and Counting Machine

88 89



CREATING SUSTAINABLE VALUE CREATING SUSTAINABLE VALUE

CONTINUING TO DO WELL BY DOING GOOD: OUR MEANINGFUL ESG JOURNEY

In the last financial year, Top Glove’s sustainability journey saw good progress, alongside humbling experiences. While we delivered strong growth following the COVID pandemic, we also noted that stakeholder expectations can change rapidly, drastically and quite suddenly. Today, above and beyond growing financial value, stakeholder concerns abound with regard to ESG priorities which include environmental degradation from high carbon activities as well as social wellbeing of vulnerable groups. In light of this, we have reassessed our risk management and also have in place measures to make our corporate governance more robust particularly in these 2 areas, even as we remain committed to maintaining the highest levels of ethics in terms of our business operations.

Thus, we have deepened the integration of sustainability into every facet of managing our business, towards long term value creation in line with our corporate mission of ensuring safe human protection globally. We have declared 2021 as The Year of ESG (Environmental, Social and Governance) for Top Glove. Led by the company’s Sustainability Steering Group, we are working hard to fix existing issues and mitigate potential risks by building organisational capacity and operational controls across all aspects of ESG, which will act as barriers to reoccurrence of undesirable events.

Nonetheless, we are under no illusion. We acknowledge that there is always room for improvement in our practices, particularly in terms of social compliance and have since made great strides to improve our performance in this very crucial area, with the continued well-being of our 22,000 strong workforce foremost on our mind. We are heartened that our concentrated efforts in this area have resulted in us being verified as free of all 11 International Labour Organisation (ILO) indicators of forced labour in April 2021, by an established third party auditor, Impactt Limited UK.

We are also pleased to have enhanced our stakeholder engagement. In early 2021, we conducted a materiality assessment having garnered the feedback of over 3,000 stakeholders whose valued inputs on key areas helped inform the development of the Top Glove Sustainability Strategy, which articulates clear medium term ESG targets for FY2025 and the resources needed to achieve them. Please view Stakeholders Engagement and Materiality Assessment details at page 166 and page 92 respectively.

We continue to strengthen our capacities and build momentum for the future, with a view to resolving issues of concern that may arise from time to time, and improve on what we are doing well.

We will continue to be at the forefront of our firm ESG commitment, through improved and consistent communications with all stakeholders, as we learn from both the best practices as well as the oversights of others. Ultimately, we are focused on growing the company better, not just bigger, as we do our part to make the world a better place.

As an international company which has served the global market for 3 decades, we have always remained cognisant of evolving operational standards and their implications for the sustainability of our business. Accordingly, multiple efforts have been made towards enhancing awareness amongst our people of the need to be proactive in responding promptly in step with these very important changes.

SUSTAINABILITY STRATEGY

Building A Legacy of World Class Sustainable Business with Long Term Positive Impacts

Goal

ESG Commitments

Strategic Themes

Key SDG Alignment

Transitioning into a net zero carbon

business

Promoting inclusivity

& respecting

human rights

Advocating responsible value chain

Improving community livelihood

Strengthening good corporate

governance & responsible

business culture

Top Glove aspires to evolve into a truly sustainable business. We operate in accordance with the 10 principles of the United Nations Global Compact (UNGC) and our material issues are aligned with United Nations Sustainable Development Goals (SDGs). Both our business and the ESG initiatives we pursue are linked directly or indirectly to all 17 goals from which 8 key goals relevant to our value chain and aligned with material issues, have been identified towards which we are able to contribute at scale.

Demonstrating our commitment to create long term positive values for stakeholders and the environment, in which we set medium term targets to be achieved by FY2025 against base year FY2021. These targets are also aligned with our key focus SDGs as well as material issues identified during the materiality assessment conducted in early FY2021.

SDGs are well integrated into our daily business operations based on our business capability and global trends.

Click here or scan the QR code to view alignment of our initiatives with SDGs (under SDGs section)

Alignment of our initiatives with SDGs:

To tackle climate change and restoring

nature

To be a people centric corporate

citizen

To adhere independent &

highest standards of corporate governance

Ps

in Sus tainabilit

y

TOAll content and data in this Creating Sustainable Value section has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd

E S G

All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn BhdAll content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd

https://www.topglove.com/sustainability/

90 91



CREATING SUSTAINABLE VALUECREATING SUSTAINABLE VALUEAll content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd

Key FY2021 achievements & progress



Medium term target for FY2025 (against base year FY2021)


• 40% of KPI are linked to ESG metrics• Board evaluation conducted by

independent external party• Tenure of Independent Directors is limited

to 9 years without any further extension• Established independent grievance

helplines managed by third party consultant

• 49% of critical suppliers being assessed based on ESG metrics

• As at FY2021, 11 factories certified with Environmental Management System ISO 14001

• Zero number of corruption & bribery cases

• Conducted quarterly dialogue between independent directors and worker representatives as platform to raise workplace and accommodation concerns

• Produced 100 billion pieces of high quality gloves

• Supported 36 hospitals and medical centers, including the Ministry of Health, nation of Nepal as well as 47 NGOs/Welfare Homes/Educational Institutions since the advent of the COVID pandemic. Support was extended in the form of monetary donations, food aid, personal protective equipment (PPE) and medical equipment, with a total value of RM191 million

• Invested RM220 million to build accommodation for 13,000 employees

• Lost-Time Injury Frequency Rate (LTIFR) improved from 1.1 per million hours worked in FY2020 to 0.92 per million hours worked

• 3 factories certified with Occupational Health and Safety Management System Certification with ISO 45001:2018 Standard

• On-site COVID vaccination programme for employees. As at 25 October 2021, 94% or 20,720 of Top Glove Group employees are fully vaccinated

• Complimentary professional counselling and mental health support for all employees

• Invested RM7.2 million in providing healthy vegetarian meals for employees

• 11 undergraduate & postgraduate scholarships offered with total amount over RM½ million

• Total of 109 scholarships offered as at FY2021, with a total investment of RM3.4 million

• Donated 17 units of reconditioned and useable laptops/ PCs to registered welfare homes, community centres, tuition centres for the poor to support online learning under EduShare Programme

• To achieve 100% active critical supplier assessment on ESG metrics from FY2023 onwards

• 100% factories to be certified with Environmental Management System


• To reduce accident rate by 14%• All factories to be certified with

Occupational Health and Safety Management System Certification with ISO 45001:2018 Standard by FY2024

• To achieve 95% of contractors to pass safety evaluation with the minimum scoring of 60 points

• To support 560 beneficiaries for education pillars through scholarship programme & EduShare Programme


Short term target for FY2022 and FY2023

• 7 of the factories have installed a solar power system with capacity of 5.34 MWp

• Additional solar power implementation across 19 factories in FY2022 and FY2023 in Malaysia, Thailand and Vietnam




• Short and medium term carbon offset targets set for water treatment plants, offices and warehouses

• Net zero carbon roadmap & target setting in progress

• Tree planting at plantation land with 30,773 hectares in Indonesia

• To reduce 25% of carbon emission intensity

• To achieve zero carbon emissions at water treatment plants by FY2022 as well as offices and warehouses by FY2025



• 42% of board members are women • 31% of female workforce, with 52%

of female in managerial positions

• To achieve 50% female composition for managerial positions


• Verified by independent third party consultant that the Company is free from all 11 International Labour Organisation (ILO) forced labour indicators

• Achieved “B” rating for social compliance practices

• Enhancement of workplace policies such as Prevention of Sexual Harassment Policy, Prevention of Bullying Policy

• RM2.2 billion income tax towards the nation’s building and to promote sustainable economic growth

• To achieve “A+” rating from FY2024 for social compliance audits at all our factories

• To reduce municipal water consumption intensity by 34%

• To reduce electricity consumption intensity by 26%

• To reduce natural gas consumption intensity by 25%

• To create 30,000 job opportunities

• Provided 9,720 job opportunities • Invested RM1.18 million in

employees training• Achieved 355,780 employee

training hours • Implemented additional paid maternity

and paternity leave in excess of legal minimum, family care leaves & flexible working arrangement for employees with young children and family members who required care attention



• Development of more environmental friendly gloves such as Forest Stewardship Certified (FSC) gloves• Nearly 2.1 million of formers reglazed and reused, resulting in savings of RM16.3 million in terms of costs for reglazing and

conversion, as well as waste disposal management saving of RM50,786• Reclaimed nitrile rubber recycled & upcycled into 1.3 million pieces of rubber gaskets, 205,300 and 340 pieces of rubber sealants and

rubber floor mats respectively• Approximately 1,000 of eco bricks made to build modular structure under Eco Brick Programme

• To reduce 20% of scheduled waste from licensed landfill• To reduce 10% scheduled waste intensity• To reduce 40% of virgin plastic stretch film• To achieve 100% traceability in natural rubber & packaging material

• To achieve 7,700 eco bricks to build modular structure under Eco Brick Programme

• 100% recyclable or reusable packaging

CONTRIBUTING TO SUSTAINABLE DEVELOPMENT GOALS

92 93



STAKEHOLDER ENGAGEMENT

We value meaningful stakeholder engagement. The outcome of the engagement helps us to identify upcoming market trends, anticipate challenges and align our sustainability strategy and business activities with broader interests of the economy, society and environment.

Through the materiality assessment exercise carried out in March 2021, we identified a total of 8 stakeholder groups and prioritised them based on influence, proximity and urgency. The stakeholder groups are customers, employees, regulators, media, shareholders, suppliers, investors, analysts and bankers as well as non-governmental organisations (NGOs).

In our day to day business, we engage with stakeholders through various platforms, responding to their stakeholders’ needs and expectations in order to create a balance between business value and develop relationships of trust. For details of our stakeholder engagement, please refer to page 166.

MATERIALITY ASSESSMENT 2021: A SHARPER FOCUS ON ESG

In March 2021, Top Glove conducted 2nd formal and comprehensive materiality assessment after FY2017 assessment, to identify key ESG issues which drive our long term value creation and have a significant impact on the Company’s business performance. The assessment was led by the Sustainability Steering Group and undertaken by an independent third party to ensure objectivity and complete confidentiality.

We reviewed industry and global trends as well as business factors that are expected to impact our business. These include mega trends and global risks in the short, medium and long term. For this, we reached out to more than 25,000 internal and external stakeholders with an above average response rate.

A holistic approach was adopted in conducting the assessment, towards ensuring that issues identified were material to the Company’s performance, thereby enabling us to effectively prioritise and allocate resources to address the issues.

Click here or scan the QR code to view our detailed materiality process

Detailed materiality process

01

02

03 06

0504

07

MATERIALITY PROCESS

Identification of Material

Issues

Alignment of Material

Issues

Stakeholder Identification &

Prioritisation

Stakeholder Engagement

Focus Group

Validation by C-suites and

key senior management

Approval by the Board of Directors ENVIRONMENTAL

No. Material issue Related UN SDGs Related GRI topic Page reference

1 Environmental Compliance*

307: Environmental compliance

96 to 97

2 Waste and Effluent* 306: Waste 98 to 99

4 Water Management 303: Water and effluents 2018

306: Waste

100 to 101

3 Energy Consumption 302: Energy 102 to 103

5 Physical Impacts on Climate Change

305: Emissions 104 to 107

MATERIALITY PROCESS:

Energy Consumption

Water Management

Waste And Effluent

Environmental Compliance

Physical Impacts on Climate Change

Ethics, Integrity & Governance

A

B

E

Supply Chain Management

Local Communities

Customer Experience

Labour Management Relations

Human Rights

Occupational Health & Safety

Diversity & Inclusion

Security Management

Infectious Diseases

Product Quality & Safety

Indirect Economic Impacts

G

L

M

P

GOVERNANCE

SOCIAL

ENVIRONMENTAL

Significance to Top Glove’s business

Imp

act

on

Sta

keh

old

er

Top 10 Material Issues

O

O

K

K

J

J

H

H

F

F

C

D

N

N

Q

I

I

P A

B

E

G

L

M

CREATING SUSTAINABLE VALUECREATING SUSTAINABLE VALUEAll content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd

C

D

Q

https://www.topglove.com/materiality-assessment/

94 TOP GLOVE CORPORATION BHD

SOCIAL


1 Human Rights* 406: Non-discrimination407: Freedom of

association and collective bargaining

408: Child labour409: Forced or compulsory

labour412: Human rights

assessment

109 to 116

2 Labour Management Relations*

402: Labour management relations

Reported as part of Human Rights section (page 116)

3 Occupational Health & Safety*

403: Occupational health & safety

117 to 121

4 Infectious Diseases* 403: Occupational health & safety

121 to 122

5 Diversity & Inclusion 405: Diversity and equal opportunity

406: Non-discrimination

123 to 127

6 Product Quality & Safety*

416: Customer health & safety 2016

417: Marketing & labeling

128

7 Supply Chain Management*

204: Procurement practices 308: Supplier environmental

assessment 414: Supplier social

assessment

129 to 130

8 Customer Experience*

102: Customer satisfaction 130 to 131

9 Security Management

410: Security practices 131

10 Local Communities 413: Local communities 131 to 133

11 Indirect Economic Impacts

203: Indirect economic impacts

119 & 104Reported as part of Promoting Wellness (page 119) and Managing Flood Risk (page 104)

GOVERNANCE


1 Ethics, Integrity & Governance*

205: Anti-corruption 134 to 139

* Top 10 material issues

ENVIRONMENTAL: TRANSITIONING INTO A NET ZERO CARBON BUSINESS


FY2021 ENVIRONMENTAL HIGHLIGHTS

Carbon Emission Reduction Performance

as part of Group KPI

Net zero carbon roadmap & target

setting in progress

11 factories are certified with Environmental

Management System ISO 14001 as at FY2021

Solar Power System implementation at 7 factories with capacity of

5.34 MWp

Approximately

1,000of eco bricks to build

modular structures under our Eco Brick Programme towards reducing plastic

waste

Approximately 98% of packaging materials

(in terms quantity) made of recycled or recyclable material

48,261trees planted at plantation land in

Indonesia to conserve the environment

Short and medium term zero carbon targets established

To achieve zero carbon

emission at office

premises & warehouses by FY2025

To reduce 25% of carbon

emission intensity

by FY2025, against base year FY2021

To achieve zero carbon

emission at water

treatment plants by FY2022

Nearly 2.1 million of formers reglazed and reused, results in cost savings of

RM16.3 million for reglazing and conversion as well as waste disposal management

Reclaimed torn nitrile rubber gloves recycled and upcycled

into 1.3 million pieces of rubber gaskets,

205,300 and 340 pieces of rubber

sealants and rubber floor mats

1 2 3

Savings of RM50,786 on waste disposal

54.8 m³ in landfill related

mitigation

RM96,279 total cost savings

Revenue: RM130,725


INTEGRATED ANNUAL REPORT 2021 95

All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd


96 97



ENVIRONMENTAL: ENVIRONMENTAL COMPLIANCE

ENVIRONMENTAL: ENVIRONMENTAL COMPLIANCE

ENVIRONMENTAL COMPLIANCE

The calls for climate action continue to grow louder. At Top Glove, we endeavour to develop and implement sustainable

environmental practices to effectively manage climate and environmental risks and leverage climate opportunities.

The Board Sustainability Committee (BSC) Chairman oversees climate and environmental issues and progress, and reports

to the Board. Together with the Sustainability Steering Group, BSC board members have engaged with consultants to

explore net zero carbon target setting.

In addition, Top Glove’s commitment to addressing the climate emergency is amply demonstrated in its membership and

participation in the following:

Participation and commitment in climate related initiatives:

Guided by the Environmental Policy and Environmental Management System ISO 14001, environmental best practices are applied in the Group’s daily operations to ensure compliance and reduction of adverse environmental impacts.

In FY2021, we have received 2 cases of non-compliance with fines. We have taken immediate action to rectify the non-compliance and settled the penalty.

A member of the Climate Governance Malaysia, the Malaysian chapter of the World Economic Forum (WEF) climate governance initiative, the second country chapter in the world to be launched and the first in Asia.

A member of The Business Council for Sustainable Development (BCSD) Malaysia, the local chapter of the World BCSD, which is a CEO-led organisation providing business leadership for sustainable development.

Disclosure of our climate change and water security impacts through CDP, a global non-profit that runs the world’s leading environmental disclosure platform.

A member of CEO Action Network (CAN), a closed-door peer-to-peer informal network of CEOs of leading Malaysian businesses. CAN focuses on sustainability advocacy, capacity building, action and performance, from the accelerating phenomenon of climate change and the climate emergency, to increasing social injustices and failure of corporate governance.

Committed to fully integrate the Task Force on Climate-related Financial Disclosure (TCFD) framework in our risk management, climate and business strategy.

Management approach: Guided by the Company’s Environmental Policy and Environmental Management System standard, we manage environmental compliance at Group level through board governance and compliance to best regulatory practices.

Our responsibility for environmental compliance is not only limited to our own operations but also extends to our supply chain. Accordingly, environmental criteria has been a key criteria in supplier audit scope since 2020, which includes Environmental Policy, product sustainability, waste management etc.

Category Percentage & number of critical suppliers being assessed with environmental criteria

Critical suppliers 41%, 113 suppliers

New critical suppliers 94%, 46 suppliers

Lower percentage of suppliers assessment compared with previous financial year was due to Movement Control Order impacted by COVID.

No supplier was identified to have significant actual or potential negative environmental impacts from audit process in the same reporting year.

Total of 11 factories certified with ISO 14001 as at FY2021

To achieve 100% factories to be certified with ISO 14001 by FY2025

To certify new factory with ISO 14001 within

8 to 10 months from commencement of operation date

* A minimum period of 6 months factory operation is required for certification

TARGETS

Membership listing

Click here or scan the QR code to view our full membership listing (under membership section)

Click here or scan the QR code to view our Environmental Policy

Environmental Policy

All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd

https://www.topglove.com/our-business-partners

https://www.topglove.com/policies

98 99



WASTE & EFFLUENT

ENVIRONMENTAL: WASTE & EFFLUENT

ENVIRONMENTAL: WASTE & EFFLUENT

Management approach: We do not subscribe to the attitude of ‘harm today’, ‘balm tomorrow’. While managing our waste and effluent in compliance with the regulatory laws and regulations to ensure the discharge or waste does not harm the natural

ecosystem, we are also committed to reducing the generation of the waste through operational eco-efficiency.

It is our responsibility to reduce or minimise the generation of waste at source, reuse and recycle waste whenever possible, send waste for reuse and co-processing, render waste innocuous before disposal and only dispose waste at facilities approved by the Department of Environment (DOE).

Scheduled waste generated by Top Glove is handled by a DOE licensed collector to be incinerated, sent to landfills or recycled. We report and disclose our scheduled waste generation on the governmental portal and no waste has either been imported or exported in FY2021. There were also no legal cases involving non-compliance of discharges in the same reporting year.

Our strategies to manage scheduled waste:

1. Site audit on licensed scheduled waste collectors We conduct an annual audit at the licensed collector’s site to ensure waste is handled in accordance with scheduled

waste regulations. The latest audit conducted on the largest contractor in terms of disposal volume was carried out in April 2021. However, we were unable to perform audits at other collectors due to travel restrictions arising from the COVID pandemic.

2. Research We invest in in-house R&D (research & development) to render waste innocuous and other improvement projects.

3. Training & awareness Employees attended competency training by an environmental institute acknowledged by DOE on proper waste

management skills and knowledge. Awareness trainings are conducted by competent person to ensure proper scheduled waste management and prevent the occurrence of pollution.

Data disclosed in this section covers all gloves factories at Group level.

Our targets:

Short term targets Medium term targets

Scheduled waste intensity

To reduce scheduled waste intensity by 3% to 0.157 kg/1,000 pcs gloves by FY2022

To reduce 10% scheduled waste intensity to 0.144 kg/1,000 pcs gloves by FY2025

Reduction of scheduled waste from licensed landfill

To divert 5% of scheduled waste from licensed landfills by FY2022

To reduce 20% of scheduled waste from licensed landfills by FY2025

* Targets above are against base year FY2021

Effluent data:

Financial Year FY2018 FY2019 FY2020 FY2021

Total Water Discharged (m3) 7,886,592 15,229,547 9,854,505 10,718,976

Discharge intensity (m3/1,000 pcs gloves) 0.202 0.342 0.159 0.176

Scheduled waste data:


Scheduled waste generated (tonnes) 5,362.78 6,401.86 7,786.04 9,756.42

Scheduled waste intensity (kg/1,000 pcs gloves) N/A* N/A* N/A* 0.16

Total waste disposed through incineration (with or without energy), landfilling, other disposal operations (tonnes)

N/A* N/A* N/A* 3,252.96

Total scheduled waste reused/ recycled/ other recovery process (tonnes)

N/A* N/A* N/A* 6,503.46

* Data tracking commenced in FY2021

Before discharging our effluent, we conduct chemical, physical and biological treatment on the discharge, which meet the Environmental Quality (Industrial Effluent) Regulations 2009, Standard B. For our Klang operations, the discharge is discharged to the drain which lows to Pintu Sungai Kapa Kecil.

Solid waste data:


Total solid waste generated (tonnes) 17,023 16,719 22,509 26,381

Total solid waste reused/ recycled/ other recovery process (tonnes)

9,092 7,856 13,003 16,265

Total waste disposed through incineration (with or without energy), landfilling, other disposal operations (tonnes)

N/A* N/A* N/A* 10,116

* Data tracking commenced in FY2021

Progress: FY2021’s effluent discharge intensity increased by 11% from previous year due to higher production line speed.


Click here or scan the QR code to view FY2021 scheduled waste data by type (under Waste Management section)

FY2021 scheduled waste data by type

https://www.topglove.com/environment

100 101



WATER MANAGEMENT

Management approach: Access to fresh water is essential for human life and wellbeing, and is recognised by the United Nations as a human right. We address water scarcity as a global concern and it requires definitive action. We manage our water efficiency and mitigate water risks via several initiatives

under the water management plan, on top of data tracking and analysis.

Under our water management plan, we are committed to reduce dependency on municipal water supply, improve our water recycling and reuse system as well as monitor our water consumption, the key initiatives for which are as below. Data disclosed in this section covers all glove factories at Group level.

Water Treatment Plant: Rainwater harvesting:

With the improved implementation of rainwater harvesting system in our factories, water sourced from rain water harvesting has increased by 30% from FY2020’s 221,366 m3 to FY2021’s 287,751 m3. Contribution from FY2021 has resulted saving of RM575,717.

In-house water recycling facilities:

Treated water from the industrial effluent treatment system is reused for housekeeping purposes.

All the initiatives above have resulted total of 1,427,571 m3 water recycled and reused, equivalent to approximately RM1.8 million savings.

Our targets:

Short term target To reduce municipal water consumption intensity by 10% to 0.207m3/1,000 pcs gloves by FY2022

Medium term target To reduce municipal water consumption intensity by 34% to 0.151m3/1,000 pcs gloves by FY2025



Water Consumption Intensity (m3/1,000 pcs gloves) 0.333 0.338 0.280 0.290

Water Consumption at Headquarter (m3) 37,389 38,929 35,436 34,913

Grand total of HQ corporate office users (including tenants) 1,279 1,345 1,843 1,125

Water consumption intensity (m3/occupant) 29 29 19 31

Total water recycled and reused (m3) 2,514,063 4,851,912 2,431,382 1,427,565

Water Treatment Plants (from 2 Water Treatment Plants) 510,735 1,044,525 1,129,229 891,616

IETS (from Industrial Effluent Treatment System) 2,003,328 3,807,387 1,302,153 535,949

Source of Water Consumption (Total, m3) 18,453,741 22,142,768 18,456,616 18,182,568

Municipal 12,042,759 12,792,175 12,498,389 14,081,233

Pond water 3,787,095 4,294,071 3,305,478 2,386,019

Rainwater 109,824 204,610 221,366 287,751.00

Recycled water 2,514,063 4,851,912 2,431,382 1,427,565

ENVIRONMENTAL: WATER MANAGEMENT

ENVIRONMENTAL: WATER MANAGEMENT

13.6% improvement in

efficiency

We treat river water into clean water, thereafter channeling it to factories for reuse in production. This does not only ensure continuous water supply for factories, but also serves as an effective system for flood alleviation.

In FY2021, we have further invested RM13.8 million to improve the treatment capacity. With its maximal capacity of 530 m3/hour of clean water (for phase 2 of both plants), the number of factories benefitted from this has been increased from 15 factories in FY2020 to 17 factories in FY2021.

Beneficiary factories increased from

15 factories to

17 factories

Resulting in savings of

RM2.8 million

More than RM0.5 million

monetary savings

Progress: 1. In FY2021, water consumption intensity (m3/1,000 pcs gloves) increased 3.6% compared to FY2020

due to lower production output resulting from temporary stoppage by stages of our manufacturing facilities in Meru, Klang as per authority’s because of COVID pandemic.

2. Corporate office’s water consumption intensity (m3/occupant) increased 63% compared with the previous financial year. It was due to much lower consumption intensity in FY2020 as impacted by COVID which led to working from home/ remote working practices.


102 103



Pilot project in FY2020

ENERGY CONSUMPTION

Management approach: As one of the key resources used in our production, we aim to reduce the consumption of non-renewable energy, replacing it with green/ renewable energy.

Electricity data:


Electricity Consumption Intensity (kWh/1,000 pcs gloves) 6.64 7.09 6.83 6.94

Absolute electricity consumption (kWh) 332,170,929 381,972,387 421,965,246 448,586,057

ENVIRONMENTAL: ENERGY CONSUMPTION

ENVIRONMENTAL: ENERGY CONSUMPTION

Energy efficiency initiatives:

1. Smart Energy Monitoring System (SEMS) to monitor energy usage and identify wastage With the implementation of SEMS at the factories, real time data on energy consumption is monitored closely by engineers. Any abnormality in terms of energy consumption can be identified and rectified in the shortest time. In addition, monthly report generated from SEMS allows the engineers to understand the factories’ energy consumption trend, hence enabling to identify wastage in the factories.

2. Heat recovery system via combined heat and power plant (CHP) system and 3Rs water system.

3. Improvements in equipment efficiency:a. We are in the process of converting biomass combustion facilities to natural gas, which in turn will generate lower

carbon emissions. b. Replacement of low performance burners with advanced technology equipment.

4. Solar power system project.

Solar power system investment:

• Factory 18• Capacity of 1.14 MWp • Green energy utilised

for glove manufacturing: 1.26 GWh

FY2021

• 7 factories in Selangor• Capacity of 5.34 MWp• Green energy utilised

for glove manufacturing: 1.66 GWh

FY2022

• Targeted implementation for 15 factories:o 11 factories in Selangor, Malaysiao 1 factory in Kedah, Malaysiao 3 factories in Thailand

FY2023

• Targeted implementation on 4 factories:o 3 factories in Selangor, Malaysiao 1 factory in Vietnam

Progress: Electricity consumption intensity increased by 1.77% in FY2021 compared with FY2020 due to lower output arising from Movement Control Order due to COVID pandemic, whereby production lines were not fully in operation. (Variance was calculated based on intensity value with 4 decimal points).

Responding to the call for more effective energy management, we launched our Energy Policy and raised the bar for ourselves by requiring ISO 50001:2018 Energy Management System (EnMS) compliance. Our aim is to have 25% of our factories certified with EnMS ISO 50001 by FY2022 and achieve 100% by FY2025.

We have communicated with our suppliers and vendors on our compliance with EnMS ISO 50001 and expect them to uphold our standards by furnishing us with Energy Star electrical appliances. Production equipment/systems, electric motors/pumps, compressors and suppliers related to Significant Energy Utilities (SEU) will be assessed based on their energy consumption. Energy performance (wherever applicable) will be included as an additional criterion for purchased items/vendor selection.

In FY2021, we set medium term targets for FY2025 energy consumption intensity, with annual interim targets.

We continue to manage our energy consumption intensity via our electricity consumption and natural gas consumption, while investing in green energy via solar power implementation.

Data disclosed in this section covers all gloves factories at Group level.

ELECTRICITY

Our targets:

Short term target

To reduce electricity consumption intensity by 11% to 6.178 kWh/1,000 pcs gloves by FY2022

Medium term target

To reduce electricity consumption intensity by 26% to 5.111 kWh/1,000 pcs gloves by FY2025


Our ongoing and completed solar power projects • Able to successfully

offset 874.44 tonnes of CO2

• RM479,000 worth of electricity saved

• Able to successfully offset 1,058.98 tonnes of CO2

• RM597,768 worth of electricity saved

FY2023

FY2021

Pilot project in FY2020

FY2022

Solar power systems have also been implemented in our Thailand factories (F16L & F17L). The following initiatives have resulted an estimated 331,749 kWh energy saving and 77,344 kg CO2e per year.

Solar LED street lights a. Solar powered LED street lights

were installed at water ponds, aeration ponds, hostel entrance etc.

Solar pump a. We replaced manual pump at

the sediment sump pit with an automatic solar pump and automate control with the float switch. This project can help us reduce in terms of energy and man hour and its relevant cost.

Solar roofa. Installation of solar panels on

main office building.b. Targeted to be completed by 2022

first quarter and second quarter for F16L & F17L respectively.

1

2

3

NATURAL GAS:

Our targets:

Short term target

To reduce natural gas consumption intensity by 13% to 0.2503 MMBTU/1,000 pcs gloves by FY2022

Medium term target

To reduce natural gas consumption intensity by 25% to 0.2157 MMBTU /1,000 pcs gloves by FY2025


Natural gas data:


Natural Gas Consumption Intensity (MMBTU/ 1,000 pcs gloves)

0.3129 0.3175 0.2944 0.2897

Absolute natural gas consumption (MMBTU) 11,120,386 12,669,638 14,295,497 14,512,799

Progress: 1.62% reduction in natural gas consumption intensity in FY2021 compared with FY2020. The decrease is due to more ongoing gas saving projects implemented intensively, such as automated former temperature control at the main oven and coagulant oven, as well as conversion of old burners to immersion burners with higher efficiency.

Saving of RM9.5 million in FY2021 following the reduction of natural gas consumption intensity


104 105



ENVIRONMENTAL: PHYSICAL IMPACTS ON CLIMATE CHANGE


PHYSICAL IMPACTS ON CLIMATE CHANGE

Management approach: We are mindful of environmental and social issues that may arise due to physical impacts of climate change. Accordingly, we strictly manage our emissions in operations and are prudent with material consumption.

Top Glove recognises that climate change poses risks across our business and the environment. We have long since been an advocate of environmental stewardship to ensure our business operations and value chain generate minimal negative impacts to the environment while creating new climate opportunities.

To this end, we have identified climate related risks classified by the Task Forced for Climate-related Financial Disclosure (TCFD). Climate-related risks, opportunities and impact to the Company’s businesses strategy and financial planning are articulated in the Managing Risk and Opportunities section on page 85. We have also disclosed our process in identifying and assessing climate risks as well as how it is integrated into the overall risk management in the Enterprise Risk Management Framework.

Emissions data:

CO2-eq emission (metric ton)

FY2018 FY2019 FY2020 FY2021

Scope 1

Natural gas 586,669 676,291 758,519 770,049

Biomass 768,068 623,465 676,790 715,322

Coal 56,791 34,853 0 20,538

Total 1,411,528 1,334,610 1,435,309 1,505,909

Scope 2 Electricity 209,413 243,790 269,636 286,646

Scope 1 & 2 Total 1,620,941 1,578,400 1,704,945 1,792,556

Intensity (MT/1,000 pcs gloves)** 0.0328 0.0295 0.0276 0.0278

Variance (over year) 0.19% (10.04%) (6.61%) 0.65%

Scope 3

Flight (air business travel) 156 253 175 0.21

Scheduled Waste* N/A N/A N/A (2,495)

Total 156 253 175 (2,495)

Total (Scope 1, 2 & 3) 1,621,097 1,578,653 1,705,120 1,792,556

* Data tracking commenced in FY2021. We plan to include more categories for Scope 3 in our future reporting. Scheduled waste data is tabulated based on landfill, CO2 avoidance from reuse and recycling by licensed recycling center approved by Department of Environment (DOE) instead of disposal in incineration plant. In Top Glove, most of the scheduled waste are recycled & reused through licensed contractors. In FY2021, through recycling & reusing the scheduled waste, 2,495MT CO2-eq emissions avoidance was resulted by diverting the scheduled waste from the incineration process. Majority of our scheduled waste comprises of recyclable rubber content, in which it is processed and made into rubber products, such as rubber mat or shoes. Currently, the emission from reuse & recycling process are excluded from the overall emissions reported for Top Glove

** Intensity is calculated based on Scope 1 and Scope 2 emissions Emissions data disclosed covers all glove factories at Group level Low Scope 3 emissions from flight was due to travel restrictions impacted by COVID

Progress: 0.65% increase in carbon emission intensity in FY2021 compared with FY2020 due to lower production output resulting from temporary stoppage by stages of our manufacturing facilities in Meru, Klang as per authority’s because of COVID pandemic.

Over the years, we are committed to reducing carbon emissions in our operations arising from material consumption, daily business activities to waste management. We believe every single effort made contributes to fulfilling our responsibility for a greener earth. Besides operational Scope 1, 2 & 3 management, we have also implemented the following strategies to reduce emissions.

Raw material consumption


Latex consumption (kg/1,000 pcs gloves) 6.34 6.53 6.66 6.48

Nitrile consumption (kg/1,000 pcs gloves) 8.20 8.13 7.62 6.65

Packaging materials

Ethical sourcing and responsible consumption is very important to us and we also engage with our supply chain to advocate strongly for this. In demonstration of this, in FY2021, we allocated 45.8% and 6.2% of procurement order to Forest Stewardship Council (FSC) or Supplier Ethical Data Exchange (Sedex) certified inner and carton suppliers respectively.

With approximately 98% of our packaging materials (in terms of quantity) made from recycled or recyclable materials, we are actively exploring alternative packaging material for non-recyclable plastics, as well as producing or procuring refill packs for liquid detergent to reduce plastic consumption. In addition, we are exploring replacing petroleum based-ink for printing with eco-friendly or renewable resource ink such as soy ink.

• In-house inner printing unit to be FSC certified• 100% packaging materials (in terms of quantity) to be made from recycled materials • To allocate 55% and 7.5% of procurement orders to FSC certified inner and carton suppliers respectively• To procure plastic bottles made with 25% recycled plastics

• In-house carton printing unit to be FSC & SEDEX certified

FY2022 FY

2023

FY2024 FY

2025

• To replace 75% of our polybags with biodegradable/ recycled plastics

• To produce refill packs by 50% to replace bottles

• To procure bottles made with 75% recycled plastic materials

FY2022

FY2023

FY2024

• To reduce usage of virgin plastic stretch film by 40%

FY2025

Our sustainable packaging material targets

Product innovation

We continue to invest in research & development (R&D) towards producing more sustainable products. In FY2021, we extended our environmentally friendly product to include the following:


Managing flood risk:

Flooding occasionally occurs in Meru, Klang where some of our factories are based, affecting both our business operations and the community. To mitigate its effects, Top Glove has at the outset embarked on several initiatives to improve drainage and water flow system within the vicinity of our Klang factories and the nearby residential areas.

Click here or scan the QR code to view our flood control & water flow initiatives (under Facilities Investment & Improvement section)

Flood control & water flow initiatives

1. BioGreenTM Biodegradable TPE Top Grip Glove (an extension from the existing biodegradable nitrile and CPE gloves, offering our customers a more comprehensive glove range)

2. BioGreenTM biodegradable nitrile gloves in darker colours. (an extension from the existing biodegradable gloves, with darker coloured variants added in line with market demand)

3. Rubber sealants (produced through upcycling of reclaimed nitrile gloves)

4. Insulation mats (produced through upcycling of reclaimed nitrile gloves)

5. Rubber Gasket (produced through upcycling of reclaimed nitrile gloves)

https://www.topglove.com/environment

106 107



Our existing portfolio of environmentally friendly product range, on top of our natural latex glove are:

1. BioGreenTM Biodegradable Nitrile Powder Free Gloves2. BioGreenTM Biodegradable CPE Top Grip Gloves3. Bioplant CPE Gloves4. FSCTM Certified Latex Powdered Gloves

5. FSCTM Certified Latex Chlorinated Powder Free Gloves

6. FSCTM Certified Inner Packaging Material [Available for Latex and Nitrile Gloves]

Further, we have conducted life cycle assessment (LCA) for our BioGreenTM Biodegradable Nitrile glove and partial LCA for Bioplant CPE Glove. Currently, we are looking into the following areas in terms of our glove research:

1. Developing accelerated glove biodegradation which is faster than the current biodegradation rate of BioGreen products2. Developing low carbon footprint glove products3. Developing gloves which are able to biodegrade and provide nutrients to fertilise the soil.

Reusing, recycling and upcycling Waste:

In tandem, we help support the local community by providing job opportunities, employing them to plant and maintain trees within the plantation, details for which are below:

No. Number of workers Nationality

1. 10 permanent workers • 7 Bangladeshis• 3 Indonesians

2. 30 workers (daily employment) • 15 Bangladeshis (with 5 female workers) • 15 Indonesians

In FY2021, we also supported the local community with an investment of RM18,260 in outreach programmes in Bangka Belitung, with 20% of the investment spent to provide food aid to the local community during the COVID pandemic.

Eat Green: subsidised healthy vegetarian meals:

Eco Brick Programme:

Approximately 1,000 of Eco Bricks were made by employees in FY2021

TGF targets to produce a

total of close to 7,700 Eco Bricks by FY2025, with the aim of building the modular structures for Top Glove and primary schools, as well as for trading in at the local council, the proceeds from which will be donated to environmentalist causes.

As the Company is advocating healthy vegetarian diet for a healthier body and planet, complimentary and subsidised meals are provided to employees during Assemblies on Mondays and through the daily Subsidised Vegetarian Meal Programme respectively.

In FY2021, more than RM7.2 million was invested in both complimentary and subsidised vegetarian meals.

In FY2021, Top Glove Foundation (TGF) launched the Eco Brick Programme to address plastic waste concerns and reduce usage. Under the programme, employees are encouraged to make Eco Bricks, which are a plastic bottles packed tightly with plastic waste. These Eco Bricks will then be used to build modular structures such as outdoor tables and chairs, benches, fencing and can even be used as tiles for walkways.

Employees reduce single plastic waste by turning the plastic into Eco Bricks, which will then be used to build modular structures such as outdoor facilities.



• All broken formers were reutilised for earth filling purposes related to Top Glove’s construction projects. Thus, broken formers are not disposed in landfills.

• Savings on waste disposal: RM50,786 in FY2021• Cost savings from former reglazing exercise:

RM16.3 million in FY2021

• Production of the following from torn nitrile gloves:a. 1,320,564 pcs of rubber gasketsb. 205,300 pcs of rubber sealantsc. 340 pcs of rubber floor mats

• Estimated landfill mitigation: 54.8 m³• Revenue: RM130,725• Total cost savings: RM96,279

In FY2021, nearly 2.1 million formers have been reglazed and reused

Rubber reclaimed project

We are committed to conserve the environment through various approaches, and tree planting is one of our initiatives. Top Glove owns a 30,773 hectare piece of land in Bangka Belitung, Indonesia which is currently used to plant Paulownia and Acacia trees for this purpose while also providing job opportunities to local communities.

To facilitate this, started from 2019 to date we have established a tissue culture lab in Bangka to cultivate seedling and distributed to the site for planting. Currently, there are 21,328 Paulownia trees and 26,933 Acacia trees in our plantation land.

Paulownia trees planted in Bangka Belitung, Indonesia

Culture lab to cultivate seedling

Tree Planting in Indonesia:

In September 2021, we have purchased 8 units of electric forklifts for centralized warehouse and target to shift the remaining 11 units by July 2022 through proper tuning of engine and usage of certified quality biofuel.

In addition, we are working to shift all registered warehouse lorries at factories to biodiesel, an environmentally friendly resources. This will contribute to lower carbon emissions in our operations.

Transportation:


Other initiatives in reducing emissions

108 109



SOCIAL: A PEOPLE CENTRIC CORPORATE CITIZEN SOCIAL: HUMAN RIGHTS & LABOUR MANAGEMENT RELATIONS

Investment of

RM220 million

to improve accommodation

for 13,000 employees

Contributed

RM2.2 billion in income tax

towards the nation’s building and to

promote sustainable economic growth

Strong representation of women in

our workforce: 42% at board level,

52% at managerial level

Donated RM191 million worth of financial aid, personal protective

equipment and medical devices to support communities and front liners during the COVID

pandemic, including 12 million pieces of medical gloves

94% or 20,720 of our global workforce

were fully vaccinated against COVID

as at 25 October 2021

Helped more than

1,000 needy families, schools

and charity organisations

Awarded 11 scholarships worth

a total of over RM½ million

Provided 9,720 job

opportunities of which 85% are local

Invested

RM1.18 million

in employee training

& achieved a total of

355,780 training hours

Verified by independent

third party consultant that

the Company is free of all

11 International Labour Organisation

(ILO) forced labour indicators

HUMAN RIGHTS & LABOUR MANAGEMENT RELATIONS

Sedex Member Ethical Trade Audit (SMETA)

Amfori Business Social Compliance Initiatives (BSCI)

Code of Conducts

Management approach: As a business with a large global footprint and employees from diverse backgrounds including vulnerable groups such as our foreign workers, we are committed to eradicating forced labour and creating an inclusive and respectful ecosystem, where every employee’s fundamental

rights are respected, and is treated equally, leaving no one behind.

We have in recent years been faced with allegations with regard to human rights. To address these concerns, we have since actively engaged with the relevant stakeholders, including authorities, experts and the workers to identify the areas for improvement to drive positive change, reaffirming our commitment to upholding human rights.

Our strong commitment to human rights is guided by the following international human rights instruments. We are also aligned with the implementation of UNGC, Universal Declaration of Human Rights (UDHR), the United Nations Guiding Principles on Business and Human Rights (UNGP) in our compliance with human rights principles. In addition, we assess and address our human rights risks and human rights impact assessment in accordance with ILO (International Labour Organisation), BSCI & SMETA guidelines/ best practices.

Top Glove is a member of Sedex, a membership organisation that provides one of the world’s leading online platforms for companies to manage and improve working conditions in global supply chains.

As a member of amfori, Top Glove is in compliance with the Code of Conduct of BSCI, an industry-driven movement that aims to monitor and assess workplace standards across the global supply chain.

OUR JOURNEY TO MODIFICATION OF THE WITHHOLD RELEASE ORDER (WRO)/FINDING IMPOSED BY THE U.S. CUSTOMS AND BORDER PROTECTION (CBP)

15 Jul 2020

Jan 2021

22 Apr 2021

Jul 2020

29 Mar 2021

10 Sept 2021 U.S. CBP modifies Finding on Top Glove

U.S. CBP announced WRO classification to Finding

Top Glove engages Impactt, an independent international ethical trade consultant

Impactt issues “all Green” report which comfirms Top Glove has resolved all 11 ILO indicators

Impactt confirms no systemic forced labour at Top Glove. All forced labour indicators resolved

U.S. CBP issues Withhold Release Order, WRO to Top Glove


FY2021 SOCIAL HIGHLIGHTS

110 111



2020

July The U.S. Customs and Border Protection (CBP) placed a detention order on disposable gloves manufactured by Top Glove Sdn. Bhd. and TG Medical Sdn. Bhd. on 15 July 2020.

We engaged United Kingdom based independent international ethical trade consultant, Impactt Limited (Impactt) to conduct an assessment and verify our labour practices.

2021

January Impactt confirmed that there is no systemic forced labour at Top Glove. All forced labour indicators resolved.

March U.S. CBP announced classification of the WRO to Finding on 29 March 2021.

April Impactt issued “all Green” report which confirms Top Glove has resolved all 11 ILO Indicators on 22 April 2021.

Forced Labour Indicators vs Impactt accessment

Investigation completed 28/08/2020

CAP# verification

October 2020

CAP# verification

January 2021

Accomodation Inspection March 2021

CAP# verification April 2021

1. Abuse of vulnerability

2. Retention of identiy documents

3. Restriction of movement * *

4. Excessive overtime

5. Abusive working and living conditions

6. Deception

7. Isolation

8. Debt bondage

9. Withholding of wages

10. Physical and sexual violence **

11. Intimidation

* It is important to note various mandatory government movement control orders (MCOs) are in place to prevent the spread of COVID, and thus - despite all prior issues being closed - restriction of movement remains factually present.

** ILO Forced Labour Guidence on Physical and Sexual Violence’ states...‘Forced labourers...may be subjected to actual physical or sexual violence...so as to have greater control over them.’ It is Impactt’s opinion that the instances of physical and sexual violence at TG do not result in the company gaining ‘greated control over workers’, therefor these instances, although concerning, are not indicative of systemic forced labour.

# CAP = Corrective Action Plan

Source: Impactt Report, 22 April 2021, ILO Indicators in Top Glove direct operation

September U.S. CBP modified the Finding on Top Glove on 10 September 2021

A Green = All issues closed B Pale Yellow = Further progress made C Light Yellow = Significant progress made on issues

DDark Yellow = Critical issues present but isolated/or in supply chain E

Orange = Critical issues present, but progress is being made F

Red = Critical issues requiring immediate action

Note: The indicator of A to F is added in for easy refence

OUR POLICY ON HUMAN RIGHTS PRACTICES:

Guided by the Group’s Human Rights & Ethical Conduct and various international human rights instruments, we embrace the following to ensure the rights of our employees, including migrant workers, are always respected and fulfilled:

UPHOLDING SOCIAL COMPLIANCE BEST PRACTICES:

Top Glove views human rights concerns seriously and has been taking aggressive steps to implement multiple initiatives towards improving social compliance practices according to international best practices.

Our key initiatives in addressing social compliance:

1

2

3

4

Eliminating any form of child labour, modern slavery, forced labour & bonded labour. We have a strict policy not to recruit employees below 18 years old and a verification mechanism in place to detect underage candidates.

Zero tolerance on discrimination, physical and sexual violence.

Prioritise workers’ health and safety by providing decent living conditions and a safe workplace.

Respecting workers’ rights in relation to the following:

• Access to multi and independent-managed grievance and whistleblowing channels

• Full custody of identity documents• Freedom of movement • Freedom of association and rights to

collective bargaining • Fair working hours and rest days, and no

excessive overtime• Zero debt bondage• No withholding of wages

Human rights risk assessment/ due diligence & audits

o Conducted by independent international ethical trade consultant

Enhancement of policies & procedures

Improvement of grievance & whistleblowing channels

Completed remediation payment to workers

Improvement in workers’ accommodation

o Investment of RM220 million to improve accommodation which will benefit 13,000 employees

Engagement with workers through:

o Monthly worker representatives and HR Department representatives meeting

o Quarterly worker representatives and Independent Directors meeting

Communicate with supply chain via town hall sessions

Capacity building and awareness training among our workforce

SOCIAL: HUMAN RIGHTS & LABOUR MANAGEMENT RELATIONS

SOCIAL:HUMAN RIGHTS & LABOUR MANAGEMENT RELATIONSAll content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd

Click here and scan the QR code to view our Human Rights & Ethical Conduct

Human Rights & Ethical Conduct

Click here or scan the QR code to view the official announcement by the U.S. CBP

Official announcement by the U.S. CBP

Click here or scan the QR code to view the Independent Consultant, Impactt Limited’s verification report

Independent Consultant, Impactt Limited’s verification report


https://www.cbp.gov/newsroom/national-media-release/cbp-modifies-forced-labor-finding-top-glove-corporation-bhd

https://impacttlimited.com/wp-content/uploads/2021/09/Top-Glove-Verification-Report_Q3April2021_public_v2.1.pdf

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HUMAN RIGHTS RISK ASSESSMENT/ DUE DILIGENCE & AUDITS

WHISTLEBLOWING CHANNEL

• In July 2020, the Group engaged independent international ethical trade consultant, Impactt Limited (Impactt) to conduct the following on a quarterly basis:1. Assess the presence of forced labour by reference to the ILO’s 11 Forced Labour Indicators2. Propose corrective action plans to improve the Group’s labour practices3. Monitor the Group’s implementation of the corrective action plans

• Top Glove has resolved all 11 ILO indicators of forced labour as verified by Impactt• In addition to Impactt’s audit, the HR Department’s Social Compliance Team and customers initiate audits based

on international BSCI and SMETA standards • In FY2021, we achieved a “B” rating in social ethical audits conducted by external independent parties. We have

set a target to achieve a “B+” rating in FY2022 and ultimately “A+” rating from FY2024

Total number of announced audits 31

Total number of semi-announced audits 1

• Top Glove has established its Whistleblowing Policy & Procedures (WBPP) to address whistleblowing cases. For these, investigations are conducted by Whistleblowing Committee and all cases investigated are reported to Board of Audit Committee (BAC). The identity of whistleblower is protected by external providers and the Whistleblowing Committee only receives details of the complaint. The outcome of the investigation into the case is communicated via a channel provided by external provider which serves to alert the whistleblower on the results.

• Top Glove’s whistleblowing mechanism provides established channels through which our stakeholders may report or disclose genuine concerns about bribery & corruption, fraud, grievances, unethical behaviour, malpractices, illegal acts, policies & procedures malfunction or failure to comply with local & foreign bribery laws on the part of the company, of which they have become aware. All information provided by whistleblower will be taken seriously and treated confidentially in accordance with the law under the Whistleblower Protection Act 2010.

• In the event of a suspected corruption or bribery activity, the Whistleblowing Committee chaired by Whistleblowing Committee Chairman / Managing Director will process the case, conduct investigations, take action and report to the Board accordingly. Whistleblowing cases are investigated by Managing Director, Head of Internal Audit & Chairman Board of Audit Committee as case receivers.

• 3 case receivers and 2 case masters are included in the system to uphold business ethics: honesty, integrity and transparency and reduce the conflict of interest when conducting investigation/decision making.

• The case receiver’s role is to receive and communicate with whistleblower via external provider while case master to review the case and approve the investigation made by the committee.

• All cases are treated with utmost confidentiality and only cases are investigated not the complainer.• All whistleblowing cases are reported quarterly at the Board Audit Committee Meeting.• Total whistleblowing cases received in FY2021: 16 cases

Category Number of cases

Bribery / Corruption 0

Fraud 1

Grievances 6

Others (on policy & procedures) 9

As at the reporting date, 15 cases have been closed, while investigations for the remaining 1 case are in progress. Of the 15 closed cases, 1 case was an instance of attempted fraud by external party, which Top Glove was alerted of through the whistleblowing channel.

GRIEVANCE MECHANISM

• We provide multiple grievance channels which allow our employees to raise grievance anonymously. Our recent workers survey has reflected that workers are satisfied with the improved grievance mechanism.

• Available grievance channels include:

1. An independent grievance helpline managed by independent third party consultant, Impactt, which is available in multiple workers’ native languages. o In FY2021, the Impactt Helpline received 1,336 calls in the following areas. As at the reporting date, 92%

of the cases have been resolved and closed, with the remaining 8% pending Impactt’s verification of action taken by the Company.

Remediation paymentConcluded. We have fully remediated our foreign workers in April 2021.

AccommodationConcluded. We have improved our accommodation and are in compliance with Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 (Act 446).

Workers wanting to return to their home countryOngoing. Due to limitation of flights, we are arranging for workers to return to their home country based on the priority level of workers.

Workers stranded in their home country We are still waiting for governmental approval to bring workers back from their home country.

MedicalWe offered extensive healthcare and medical care benefits to employees. This has been shared to Impactt.

OthersWe resolved and updated Impactt on the status of each case. Impactt closed cases after verifying status from workers. Example of cases in this category: facilities at quarantine hotel, etc.



ENHANCEMENT OF POLICIES & PROCEDURES

• We improve our policies to ensure the welfare and rights of our workers are safeguarded throughout the recruitment process. These improvements include:o Recruitment Agreement which is now guided by a robust Job Advertising Policy o Inclusion of basic salary information in the “Undertaking of Recruitment Terms”, which will be briefed and

acknowledged by all candidates prior to interviewo Increased the lead time for recruitmento Revised payment terms to ensure agency has upfront payment for the processing of recruited candidates to

protect workers not being asked for any recruitment fee• We have also improved other relevant policies such as:

o Social Media Policyo Prevention of Sexual Harassment Policyo Prevention of Bullying at Workplace Policyo Grievance Procedure

Click here or scan the QR code to view our list of policies

List of policies

b

1.4%

c

2.7%

d

1.5%e

1.8%

f

1.6%

a

91%

a d

b

e

c

f

Total number of audits initiated and paid by customers

5

Total number of audits initiated and paid by Top Glove

27

https://www.topglove.com/policies/

114 115



2. Workers’ representatives:o Workers of all factories have the right to elect their representatives for each factory. o Every factory will have workers’ representatives from each nationality & gender, including Malaysian. o Workers’ representatives attend the following fixed engagement sessions for them to raise workplace

and accommodation concerns:a. Monthly meeting with operations team and Safety & Health team from the HR Department. b. Quarterly meeting with Independent Directors. The first quarterly meeting was held on 9 March

2021.

3. TG Care Lines for workers to report harassment and bullying incidents4. Centralised workers’ helpline5. Email6. WhatsApp7. Human Resources personnel

1st engagement session between Independent Directors and workers’ representatives was held on 9 March 2021, during which topics discussed include accommodation, etc.

COMPLETED REMEDIATION PAYMENT

IMPROVEMENT OF WORKERS’ ACCOMMODATION

• Top Glove has fully remediated our workers.• A total of RM150 million remediation payment has been made. • On top of the Zero Recruitment Cost Policy, we adopt open tender in selection of recruitment agents and

conduct due diligence on our recruitment agents.

• We invested RM220 million to improve accommodation for 13,000 employees, which is expected to be ready in stages between end 2021 to end 2023.

LocationEstimated CAPEX,

RM’ milTarget Capacity,

pax Target Completion

A. Constructed by Top Glove Banting: Lot 213 and Lot 214

1) Phase 1, Block 1 & 2 12 1,000 Early 2022

2) Phase 2, Block 3 & 4 12 1,000 End 2023

Aman Perdana, Klang: Lot 6495

3) Block 1 14 1,300 Mid 2022

4) Block 2 14 1,300 End 2023

Meru, Klang

5) Lot 5135, Block 1 & 2 27 2,200 Mid 2022

6) Lot 5117, Block 1 & 2 23 1,800 Mid 2022

7) Lot 5116, Block 3 & 4 23 1,800 End 2023

B. Purchased from developer

8) Kenangan Meru Apartment 95 2,600 Mid 2022

Grand Total 220 13,000

• Our accommodation is in compliance with the Act 446: Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990.

• We have submitted our application for Certification for Accommodation (CFA). Prior to issuance of the CFA, the Department of Labour (DOL) conducted physical inspections and we were found to be in compliance with the requirements of Act 446. As at 29 Oct 2021, 95% of our CFA applications have been approved and the remaining 24 applications are pending issuance by DOL upon conclusion of their inspections. Note: The issuance of CFAs was affected by Movement Control Order arising from the COVID pandemic.

• Various amenities such as a laundromat, canteen, mini market and recreational facilities available within the accommodation to cater to our workers’ daily needs.

Click here or scan the QR code to view our accommodation improvement plan and progress (under Improved Accommodation section)

Our accommodation is in compliance with the Act 446: Employees’ Minimum

Standards of Housing, Accommodations and Amenities Act 1990



Accommodation improvement plan and progress

https://www.topglove.com/social-compliance

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a. Chemical Health Risk Assessment (CHRA)

b. Noise Risk Assessment (NRA)

c. Chemical Exposure Monitoring (CEM)

d. Audiometric, Local Exhaust Ventilation (LEV)

e. Heat stress

f. Medical surveillance

g. Indoor Air Quality

h. Control of Industrial Major Accident Hazards (CIMAH) Assessment

COMMUNICATING WITH SUPPLY CHAIN VIA TOWN HALL SESSIONS

ENGAGEMENT WITH WORKERS

ENHANCE HUMAN RIGHTS TRAINING AND AWARENESS

• We are committed to building a sustainable business in our operations together with our business partners.

• Our business partners affirm their commitment towards sound and sustainable business practices by signing Top Glove’s Business Partners’ Code of Conduct.

• We share our values particularly in the area of labour practices with suppliers via town hall sessions, followed by post-town hall audits to cultivate the human rights awareness & best practices.

• On 30 September 2021, we invited our suppliers to participate in our inaugural Top Glove Sustainability Webinar: Suppliers & Contractors with a view to communicating Top Glove’s ESG practices and our expectations of our intermediaries.

• Guided by the Group’s policy on Human Rights and Ethical Conduct, workers have the right to freedom of association and collective bargaining.

• Our subsidiary, Eastern Press Sdn Bhd is covered by collective bargaining agreements, with the notice period for consultation and negotiation specified in collective agreements.

• In operations where formal unions do not exist, all workers are covered under the Workers Welfare Committee, for which workers in every factory have the right to elect their respective worker representatives for each nationality and gender. Engagement details with worker representatives are articulated under the “Grievance Mechanism” section.

• Towards making our engagement with workers more effective and instilling human rights awareness among our workforce, our initiatives include:a. Collaborated with International Organization for Migration (IOM) in and March 2021 to conduct a series of

workshops to combat forced labour. We trained about 100 targeted participants on International Recruitment Integrity System (IRIS) & Corporate Responsibility in Eliminating Slavery and Trafficking (CREST) topics. The primary purpose of the collaboration is to promote stronger migrant employment and ethical recruitment practices in our operations and supply chain. IRIS helps identify ethical labour recruiters and align their business practices to the IRIS standard, while CREST promotes the awareness of modern slavery and guides companies to eradicate it.

b. We had several in-house sessions on Ethical Labour Practices and Understanding the Social Compliance Audit facilitated by our internal experts, which have garnered close to 400 participants including our Head of Departments and Human Resources Business Partners.

c. Conducting various town hall style meetings, workshops, and social dialogues sessions for workers.d. Making worker representation more effective and holding regular meetings with the management.e. Organising joint training sessions with workers, supervisors and the management on prevention of workplace

bullying policy.

OCCUPATIONAL HEALTH & SAFETY

Management approach: Investment in employees’ health and safety is the best prevention towards any negative impacts such as risks on health & safety of our employees & low productivity. At Top Glove, we recognise our responsibility in providing a safe and healthy workplace for our employees by enhancing the

safety process within our operations, providing necessary technical and educational support in occupational safety and health as well as enhancing our healthcare initiatives.

OCCUPATIONAL SAFETY:

Guided by the Group’s Occupational Safety & Health (OSH) Policy, the Safety Department and Committee which consists of 1,099 members from management, staff and worker representatives, leads the safety management initiatives and strategies of the Company.

Workers’ participation in the OSH management system is equally important in the Company. At quarterly Safety and Health Committee meetings, which provide a forum for discussion about OSH matters at workplace, there is equal representation from worker representatives who have the right to raise any health and safety related matters for discussion and resolution.

As at September 2021, a total of 3 factories, namely factory F5, F9 and F23, or 6% of total factories were certified with the Occupational Health & Safety Management System ISO 45001:2018. Considering the large number of factories we have, we aim to certify another 10 factories with ISO 45001:2018 in FY2022, which brings the total certified factories percentage to 28%. We target to certify 100% of our factories with ISO 45001:2018 in FY2025.

We have key assessment monitoring systems in place for the following:

We conduct workplace safety & health risks assessment through:

a. Observation, interviews and implementation of Hazard Identification, Risk Assessment and Risk Control (HIRARC), the relevant trainings for which have been provided to employees. Through HIRARC, following feedback from workers, an accident investigation will be conducted with the Safety and Health Committee, process owner with the involvement of related staff and workers. For example, through HIRARC, we identified working at height without proper railing or safety harness as one of the safety hazards and have taken corrective action to install proper railings at the platform.

b. Implementation of monthly Corrective Action and Preventive Action (CAPA), through Safety and Health Committee meeting with the participation of staff and workers.

c. Implementation of unsafe condition and unsafe act (UA/UC) monitoring and reporting through TG GOODSAFE online reporting.

Top Glove Good Safe Programme:

In September 2020, we launched Top Glove Good Safe Programme to all Malaysia factories. The Good Safe Programme is an analytic tool to predict focus area in avoiding unwanted incident.

Factory’s safety officers to have safety walkabout to identify hazards through unsafe act & unsafe condition (UA & UC) based on BSCI standards, UA & UC to be tracked in the system to ensure action being taken. Every “Good Safe” needs to be prioritized to close it eg. if high severity within 2 hours, or up to 5 days for moderate/low risk cases.

We managed to achieved 90% of closure rate in FY2021, compared with 80% of target set. It is in the pipeline to train non-safety officer committee to conduct the Good Safe walkabout.

a

b

c

d

e

f

g

h

SOCIAL: OCCUPATIONAL HEALTH & SAFETY

f. Educating workers to raise grievances on available grievance channels, especially the independent grievance helpline managed by Impactt.

g. In FY2021, a total of 7,095 training hours on human rights policies or procedures concerning aspects of human rights that are relevant to operations were conducted for 215 staff. Number of training hours increased 761% from 824 hours in FY2020.


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We continuously conduct training to improve and enhance employees’ safety awareness to prevent accidents and incidents. Trainings include Work Instruction (WI) covering safety precautions which are provided to workers. Other training scopes include HIRARC, PPE, chemical spillage, machinery handling, Emergency Response Team, working at height, etc.

In FY2021, we regret to report that there were 2 contractor fatality cases, in which the contractors fell from height while carrying out their tasks due to insufficient Method of Statement by the contractors and lack of on-site supervision. We also recorded 2 cases of contractor work-related injuries.

We are determined to continue our mitigation efforts to keep both our employees and contractors safe. We have taken immediate action to install more proper railings at the platforms and have also tightened our permit process for contractors. All contractors without proper safety PPEs will not be allowed entry to Company premises. We also continuously emphasise building organisational capacity and operational controls that will act as a barrier to accidents being escalated to life changing or fatal outcomes.

In the same reporting year, we also regrettably recorded 1 employee workplace fatality, where the victim was electrocuted having come into contact with a broken lamp bulb. To safeguard against future reoccurrence, the following preventive actions have since been implemented:

1. Light bulb relocated to a place with lower foot traffic2. Changed to a safer type of bulb3. Carried out periodical inspections on lighting system4. Installed RCBO (Residual Current Breaker with Over Current)

Employees safety data


Employee fatalities rate (percentage) 0 0 0 0.01

Number of employee fatality case 0 0 0 1

Percentage of employees covered for LTIFR (%) 100 100 100 100

Lost-Time Injury Frequency Rate (LTIFR) (number/ a million hours worked) 1.0 0.9 1.1 0.92

Number and rate of high consequence work-related injuries (including fatalities)

N/A N/A N/ANumber: 71

Rate: 3.24

Safety training:

Safety data:

Safety Committee & Officers attended safety training (%)

Non-Safety Committee & Non-Safety Officers attended safety training (%)

21.3% 78.7%

FY2021 accident rate:

3.24 per 1,000 workers

Short term target:

To reduce accident rate by

9.5% to 2.93 per 1,000 workers in FY2023 (against FY2021)

Medium term target:

To reduce accident rate by

14% to 2.77 per 1,000 workers in FY2025 (against FY2021)

Our strategies towards achieving these targets include:

1. Promoting the concept of Plan, Do, Check, Act (PDCA) and continuous improvement on safety and health across all levels in the organisation

2. Focusing on engineering control to reduce safety and health risks

3. Strengthening the safety and health training program

4. Enhance Contractor Management System

5. Continuous audits and inspections

PROMOTING WELLNESS:

Towards looking after the mental and physical health of our employees, Top Glove provides comprehensive healthcare facilities and has multiple initiatives in place in the form of holistic wellness programmes. As at 17 September 2021, Top Glove also had a 46 strong team of wellness professionals dedicated for this purpose.

The medical team is managed by Top Glove Global Doctors Medical and Dental Clinic (TGGD) in Meru, Klang as our occupational health provider. TGGD attends to our Klang workforces’ health and safety needs, and also those of the communities nearby.

We Provide the Best Healthcare to Our Employees

Top Glove has 46 Wellness Team Members as at 17 September 2021

Medical Professionals

WellnessProfessionals

FitnessProfessionalsAmbulances 32 11 32

10 Medical Doctors

1 Dentist

2 Mental Health Counselors

4 Medical Assistants

1 Assistant Pharmacist

4 Nurses

5 Clinic Admins

4 Paramedics

1 Radiographer

7 Nutritionists

1 Dietitian

1 Naturopathy Wellness Consultant

1 Branding Executive

1 Health Admin Executive

1 Fitness Trainer

2 Fitness Assistants



Progress: Improvement of LTIFR was due to effective implementation of the TG Good Safe Programme, inspection on hazard spotting monitoring and frequent trainings. This has led to the reduction of cases by category such as sharp object/ edge, chemical and falling.


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Our key initiatives in promoting good physical and mental health:

Quarterly BMI (Body Mass Index) monitoring

Weight Management Programme: “Mission Slim Possible” & “Gain It Right” with nutritionist guidance for ideal weight management.

In an effort to raise mental health awareness in the corporate sector, promote mental wellness and break the stigma about mental health in the workplace, Top Glove launched its inaugural Zero Harm on Mental Health programme on 10 October 2021, in conjunction with World Mental Health Day.

Initiated by the TGGD Mental Health Clinical and Crisis Support Team, this programme, together with the existing Zero Harm and Safety Health Emergency Preparedness Programme introduced in 2019, provides a comprehensive safety and wellness action plan for Top Glove employees.

In FY2021, we recorded an average of 2.18 days of sick leave per employee (man days lost 0.7%). Average hospitalisation leave per employee during the same reporting year was recorded at 0.3 days with man days lost of 0.095%. Both sick leave and hospitalisation leave were mainly COVID related, for which employees with symptoms underwent self-quarantine at home or were admitted to hospital.

Top Glove Founder and Executive Chairman Tan Sri Dr Lim Wee Chai (right) receives a green ribbon pin badge from Malaysian Mental Health Association President Professor Dato’ Dr Andrew Mohanraj (left), as a symbol of his support of promoting mental wellness

Key highlights of the Zero Harm on Mental Health programme:

a. Educational posters and information cards in seven (7) different languages in factories, offices and hostels on how staff and workers can reach out for help, as well as tips on how they can manage their mental wellbeing. This will also be accessible via the Workers Learning App, which all workers have access to.

b. Facilitates the prompt management of crisis and employees’ mental health symptoms through crisis intervention and counselling, as well as psychotherapy.

Workers Health Protection Programme (WHPP) which is fully subsidised by Top Glove and entitles workers to complimentary blood screening, vision and hearing assessment.

Subsidised healthy vegetarian meals delivered to employees’ factories/offices. In FY2021, we invested RM7.2 million in supporting employees with 1.44 million healthy vegetarian meals. This included 22,000 packs of complimentary vegetarian meals for Monday assembly and 1.42 million subsidised meals to reduce the need to commute for food, thus minimise the exposure risks during the pandemic. Under the subsidised vegetarian meal programme, the Company subsidises RM5 for each staff’s meal, while workers need only pay RM1 for each subsidised meal. The Company has a total of 114 vegetarian employees.

Launching of Zero Harm on Mental Health Progamme

Health talks for employees

Promoting 5 Healthy Wells:

Clean Well

Eat Well

Work Well

Exercise Well

Sleep Well

Complimentary access to gymnasium facilities & sports subsidy

Complimentary counselling services

SOCIAL: 1. OCCUPATIONAL HEALTH & SAFETY

2. INFECTIOUS DISEASES


To support employees in achieving work life integration for maximal well-being, Top Glove has implemented a series of family friendly policies below in FY2021:

Extended maternity leave up to 67 consecutive days on full pay. This is in excess of the legally required minimum of 60 days.

Mothers are given an option to have additional 23 consecutive days of work from home after maternity leave, so that they can ease into work while still attending to their newborn.

Paternity leave is not stipulated in Employment Act 1955. However, we have further extended fully-paid paternity leave up to 3 days for all working fathers.

After completing the paternity leave, staff have an option to have 14 consecutive days to work from home to facilitate bonding with their newborn.

Working parents with child under the age of 12 and expectant mothers have the option to work from home for an aggregate of 30 days in a year or to change work shift schedule.

Fully-paid family care leave to support our employees who care for immediate family members diagnosed with terminal illness, injuries, disabilities or in need of special medical attention.

Flexible work arrangement in addition to family care leave. Employees have an option to work from home for an aggregate of 10 days in a year depending on eligibility and specific needs.

Upgrading of nursing rooms to support breastfeeding employees.

Parental leave data:

Scope Gender FY2021 (number)

Total no. of employees who were entitled to parental leave Female 4,478

Male 5,698

Total no. of employees who took parental leave Female 195

Male 165

Total no. of employees who returned to work in the reporting period after the end of parental leave

Female 195

Male 165

INFECTIOUS DISEASES

Management approach: Our response to the COVID pandemic underscores our commitment towards being a people centric corporate citizen while ensuring business sustainability. We prioritise the safety of our employees and stakeholders, whilst continuing to produce high quality medical gloves,

adapting to the new norm in global business environment and supporting the community and front liners.

The COVID pandemic has led to the surge of demand of medical gloves globally. During the challenging period, we have worked hard to produce high quality medical gloves to meet the needs of our customers. The 4 key ways in which we have responded to ensure we protect our people, support the community and business partners while ensuring business sustainability are as articulated in the next page:



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a. Prioritising health and safety of our workforce

• Improvement of workers’ accommodation i. Please refer to “Human Rights” section on page 115 for

further details.• COVID vaccination for employees

i. In support of the Malaysian Government’s effort to achieve a higher vaccination rate in Malaysia, Top Glove has commenced its on-site COVID vaccination programme under Program Imunisasi Industri COVID Kerjasama Awam Swasta (PIKAS) on 19 July 2021 in Meru, Klang, Selangor. As at 25 October 2021, 94%, or 20,720 of our global workforce were fully vaccinated.

• COVID helplines to support employees on all COVID related enquiry

• Frequent disinfection• Provision of essential PPEs including face masks and

sanitisers• Designated isolation hostels for workers in need of quarantine• Leveraging technology for safe communications • Risk assessment and tracking • COVID helpline and careline • Healthy vegetarian meal subsidy and delivery to reduce the

need to commute for food• For more details of our COVID preventive measures, please

visit to:

b. Supporting humanitarian and emergency relief efforts

• Through our charity arm, Top Glove Foundation, we rolled out and supported various community outreach programmes to support the community during this challenging time, such as Lend A Hand (LAH) Project, Blind Masseurs Project, Rise Against Hunger & Yayasan Food Bank Projects. Please refer to pages 131 to 132 in this report for more information.

• Donated RM191 million in financial aid, PPE and medical devices to support communities and front liners during the COVID pandemic, including the donation of 12 million pieces of medical gloves.

• Food aid to local community in Bangka Belitung, Indonesia.

SOCIAL: DIVERSITY & INCLUSION

SOCIAL: INFECTIOUS DISEASES

DIVERSITY & INCLUSION

Management approach: At Top Glove, we embrace diversity and inclusivity as we believe a diverse and respectful culture is the key to boosting staff morale, retaining talent and improving productivity. We are committed to providing equal opportunities in recruitment and career growth, and have zero tolerance for discrimination whether based on gender,

ethnicity, nationality, cultural background, marital status, disabilities, political inclination, union membership, religion, sexual orientation or age.

Our diverse global workforce (in number):

Group Category FY2018 FY2019 FY2020 FY2021

Total no. of employees 17,226 17,539 20,835 22,741

Nationality Malaysia 3,600 4,380 7,590 10,176

Thailand 924 953 409 1,333

China 351 256 290 234

Vietnam 165 95 164 294

Myanmar 445 472 1,218 827

Indonesia 139 542 939 834

Nepal 5,968 4,779 4,555 3,698

Bangladesh 5,095 5,677 5,447 5,171

Others 539 385 223 174

By employment type

Permanent 4,879 5,588 19,750 21,532

Contract 12,347 11,951 333 391

Interns 548 1,029 752 818

By category Lower management 13,813 13,340 15,441 15,915

Junior management 1,289 1,497 2,047 2,617

Middle management 1,671 2,190 2,775 3,523

Upper management 398 453 506 603

Senior management 47 53 52 69

Executive management 8 6 14 14

By age group Below 30 10,410 10,523 13,559 14,812

30 - 50 6,399 6,665 6,888 7,525

Above 50 417 351 388 404

By ethnicity (Malaysia only)

Malay N/A 2,741 4,837 6,720

Chinese N/A 958 1,569 1,765

Indian N/A 619 1,051 1,263

Others N/A 56 120 428


Click here or scan the QR code to view our COVID preventive measures

COVID Preventive Measures

c. Keeping our business partners connected

1. We continuously reviewed our operational strategies to support our customers and improve our production efficiency on an ongoing basis, towards maintaining a competitive edge.

2. Leveraged Digital Enhancement Project to track and analyse data more effectively.

3. We supported our vendors, ensuring their continuous operations and facilitated delivery of goods to Top Glove with issuance of support letters.

4. We continuously sourced and onboarded new reputable vendors to sustain our business.

5. We worked with a minimum of 3 vendors for each item procured to ensure no shortage of any material.

6. We supported our critical customers with sharing of shipment costs when shipment cost surged during the pandemic.

7. We increased our communication with our suppliers via online platforms to better coordinate raw material deliveries.

d. Product and customer base diversification

• We diversified our product range and penetrated new markets by venturing into manufacturing non-glove products such as facemasks, hand sanitizers, liquid hand wash, tourniquets and rubber reclaimed rubber products.

• We embarked on e-Commerce platforms such as TGeBuy, Shopee & Lazada to retain and attract customers during the pandemic.

• We invested in enhancing the Customer Portal features, enabling customers to self-serve in terms of retrieving documents, checking order status and accessing other relevant information.

• To ensure uninterrupted supply, we established our in-house supply such as concentrated latex and packaging material.

• With product hygiene as a top priority, we invested in “contactless” automated packing and handling systems to ensure that our gloves transit from the production line into packaging without human intervention, minimising the possibility of contamination. Adoption of automation has resulted in significantly lower costs and has increased manufacturing efficiency. Our productivity surged by 80%, with workers per million pieces of gloves (WPM) dropping from 8.4 WPM to the current 1.8 WPM, reducing our dependency on manual labour. This assists us in overcoming the labour shortage caused by restrictions on recruiting migrant workers as a result of international border closures.

Malaysia workforce (in number):

Category FY2018 FY2019 FY2020 FY2021

Nationality Malaysian 3,592 4,378 7,589 10,161

Non-Malaysian 11,575 12,472 11,459 10,183

https://www.topglove.com/social-Covid19-Prevention

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Gender diversity:


Employee breakdown by gender (in numbers)

Female 4,160 4,386 6,052 7,030

Percentage 24% 25% 29% 31%

Male 13,066 13,153 14,783 15,711

Percentage 76% 75% 71% 69%

Leadership positions (managers & above) held (in numbers)

Female 240 282 306 229

Percentage 54% 55% 53% 52%

Male 207 230 266 212

Percentage 46% 45% 47% 48%

Board of Directors’ gender diversity (in numbers)

Female 4 5 5 5

Percentage 33% 42% 42% 42%

Male 8 7 7 7

Percentage 67% 58% 58% 58%

Number of staff with differing abilities recruited: 27 persons

Our targets in demonstrating best gender diversity practices:

o Short term:

To achieve 44% female participation in managerial position in FY2022

o Medium term:

To achieve 50% female participation in managerial position in FY2025

Status as at FY2021: 52% female participation in managerial position

Percentage of female employees in a management position in the Marketing Department: 61%

Percentage of female employees in top management position (Executive management & senior management): 31%

Basic salary ratio of men to women

Male employee ratio of entry level wage to minimum wage: 1:1

Female employee ratio of entry level wage

to minimum wage: 1:1

Prevention of Harassment & Bullying: In FY2021, a total of 34 harassment incidents were reported and resolved. Throughout the investigation process, we ensured that the affected employee’s safety was well protected at all times, which included concealing their identity. As a responsible employer, we continue to look for ways to go above and beyond in supporting the wellbeing of our employees. In line with our efforts, we have also proactively engaged with professional counselling service providers to assist our employees during these difficult times. At the same time, stern disciplinary actions including dismissal, will be taken against the perpetrators if proven guilty upon investigation.

The improved grievance mechanism in place has provided our employees a safe platform to raise grievances. Besides our strategies in effectively enhancement of the grievance mechanism, preventing harassment also include:

1. Enhancement of our policies, which include:a. Prevention of Sexual Harassment Policyb. Prevention of Bullying Policyc. Grievance Procedures

2. Periodically reviewing our policies

3. Training and awareness among employees

Recruitment:


Total new recruits (number) 5,342 4,570 6,264 9,720

Breakdown by age group (percentage, %)

Below 30 77 78 87 88

30 to 50 22 21 12 11

Above 50 1 1 1 1

Breakdown by gender (percentage, %)

Female 16 33 40 38

Male 84 67 60 62

Breakdown by nationality (based in Malaysia, percentage, %)

Malaysian 23 44 81 85

Non-Malaysian 77 56 19 15

TVET Recruitment

TVET (Technical and Vocational Education and Training) students recruited

N/A* N/A* 641 2,962**

* Data tracking commenced in FY2020** Increase in TVET intake was due to impact from COVID, which resulted in recruitment of more skilled workforce


126 127



Turnover:

Staff Turnover


Turnover rate 17.73% 16.30% 18.60% 18.50%

Manufacturing industry turnover rate (based on calendar year)

17.76% (year 2017)

16.68% (year 2018)

15.78% (year 2019)

15.5% (year 2020)


Below 30 79.71% 74.51% 78.80% 80.50%

30 to 50 17.42% 20.78% 17.70% 18.50%

Above 50 2.86% 4.71% 3.40% 0.90%


Malaysian 97.14% 86.53% 89.78% 90.30%

Non-Malaysian 2.86% 13.47% 10.22% 9.70%

Worker Turnover

Financial Year FY2020 FY2021

Turnover rate 21.37% 26.47%

Manufacturing industry turnover rate (based on calendar year)20.52%

(year 2019)24.36%

(year 2020)


Below 30 71.65% 77.13%

30 to 50 27.49% 22.30%

Above 50 0.86% 0.57%


Malaysian 53.54% 70.01%

Non-Malaysian 46.46% 29.99%

* Tracking of workers’ turnover rate commenced in FY2020

Talent development:

Total training investment in FY2021:

RM1.18 millionTotal of 355,780 training hours achieved

Categories of training:

70% technical and functional,

30% soft skills


SOCIAL: DIVERSITY & INCLUSIONAll content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd

Staff engagement survey:

In FY2021, to further enhance workplace inclusivity and improve internal processes, the Company engaged an independent third party consultant to conduct an anonymous employee engagement survey. Being the first year we worked with an external party for the exercise, we started with a representative sampling size of 4,000 respondents, covering all demographics of employees, across all levels, job grades, years of service, annual performance ratings and the like.

The survey yielded a response rate of 79%. This was slightly lower than those of the previous financial years, as the questions and methodology used differed from those when the survey was done in house, towards garnering more targeted feedback. Employee satisfaction scores (those within the Above Average Satisfaction category) decreased in comparison with preceding years, against the backdrop of the pandemic, during which the company continued operating, having been classified as essential services. This resulted in the need for operations staff to be stationed on-site, rather than work from home, as the Company endeavoured to fulfil the urgent global glove demand.

Based on the survey results which identified room for improvement in work environment, as well as rewards and recognition, strategic intents were developed with a view to strengthening these key areas under the Human Resources pillar. These included streamlining the pipeline for key and mission critical positions, creating impactful leadership programs, revamping the Performance Management System and conducting a Job Analysis/Job Evaluation Exercise to develop a more robust Rewards Framework.

Staff engagement survey results:


Percentage of total employees covered 90% 90% 90% 79%

Survey results with Above Average Satisfaction 58.79% 70.83% 75.23% 49%

Worker engagement survey:

We also rolled out worker engagement survey in FY2021, the results of which showed an improvement compared with the previous year. Generally, workers are satisfied with the hostel improvement initiatives and the training sessions provided such as the Company’s Grievances Mechanism and Prevention of Sexual Harassment and Bullying. The Company is in progress to conduct a feasibility study on improving recreational facilities and recognition initiatives.

Worker engagement survey results:

Financial Year FY2020 FY2021

Percentage of total employees covered 70% 85%

Survey results with Above Average Satisfaction 84% 88%

Upholding the principle of equal treatment and inclusivity, we believe every employee has the right to access to trainings and well-being treatment. We take great pride in the professionalism and talent exhibited by our people who consistently raise our brand name.

We launched the Top Glove Workers’ Learning App (TGWLA) for our workers in Malaysia to enable our workers to perform mobile-based learning too. This mobile app caters a wide range of multilingual videos, articles and assessments to enhance and support learning ranging from technical, safety, soft skills and mental health topics. To enlist workers’ acceptance, over 100 familiarization sessions were conducted in their native languages spanning about a year.

Click here or scan the QR code to view our talent development initiatives

Training Details (per employee) Training hours

Average training hours 63.15 hours

Average days of training 9.02 days

Average training hours (Female employee)

71.34 hours

Average training hours (Male employee)

55.51 hours

Total voluntary hours clocked by employees

61,152 hoursEffectiveness of training (percentage of training

has met its objective): 89.00%

Employee training hours:

Management category Training hours

Lower 34.94

Junior 102,317.18

Middle 209,942.05

Upper 39,985.35

Senior 3,114.65

Executive 389.87

https://www.topglove.com/our-people

128 129



PRODUCT QUALITY & SAFETY

Management approach: We are committed to manufacturing products which meet the highest quality and safety standards. As a global healthcare product manufacturer who has customers in 195 countries, we adhere to a stringent quality assurance process, ensuring we comply with each country’s requirements.

To improve our competitive edge, we strive to ensure continuous improvements, but also breakthroughs in processes and technology to achieve quality excellence. Key strategies in improving our product quality & safety include the following:


Number of product recalls 0 0 0 0

Number of regulatory agencies inspection 0 0 0 0

Number of Form 483 Observations and FDA Warning Letters received 0 0 0 0

SUPPLY CHAIN MANAGEMENT

Management approach: Implementing good ESG practices at our own operations is not sufficient as the value chain poses significant impact for business sustainability. Guided by the Top Glove Business Partners’ Code of Conduct, we share our ESG values with our business partners, to ensure a sustainable business relationship and business operations in all the key

important areas, including human rights, environmental compliance and business ethics.

We are committed to ethical sourcing and responsible consumption, ensuring the products manufactured by us are truly sustainable. Our strategy in ensuring sustainable supply chain management includes supplier audit in terms of ESG metrics and traceability, such as Forest Stewardship Council (FSC) certification.

In FY2021, we enhanced our existing supplier audit checklist to address ESG concerns in the supply chain. Our set target in supplier assessment are as below:

FY2022 FY2023 FY2025To conduct supplier audits in terms of ESG metrics on a total of 70% active critical suppliers

To conduct supplier audits in terms of ESG metrics on a total of 100% active critical suppliers & ensure 100% compliance for new suppliers

To conduct traceability audits on 100% of our natural latex suppliers

Forest Stewardship Council (FSC) certification:

Both our latex concentrate plants (Factory F16L and F17L) in Thailand are Forest Stewardship Council™, FSC certified; Factory 16L (SGSHK-COC-470093) was certified since June 2019 while Factory 17L (CU-COC-874579) was certified in January 2021. Meanwhile, one of our glove factories located in Malaysia, Factory 13, also received its FSC™ certification (CU-COC-877534) in March 2021.

In FY2022, we aim to obtain certification for our packaging material factory, Factory F34PM and one additional glove production factory.

Supply chain data:

Type of supplier Absolute number of suppliers Share of total procurement spent (%)

Total tier 1 suppliers 4,005 100%

Critical tier 1 suppliers 327 65%

Percentage of procurement budget spent on local suppliers by country:

Country Percentage (%)

Malaysia 49

Thailand 30

Vietnam 1

Other 20

Percentage of local suppliers by country:

Country Percentage (%)

Malaysia 75

Thailand 17

Vietnam 4

Other 4

SOCIAL: SUPPLY CHAIN MANAGEMENT

SOCIAL: PRODUCT QUALITY & SAFETYAll content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd All content and data in this page has been verified & assured by external assessor, SIRIM QAS International Sdn Bhd

a. Investing in Research & Development (R&D), digitalisation and automationa. Please refer to page 54 in “Letter to Stakeholders and Management Discussion & Analysis” section for details.

b. Implementation of Quality Management Systema. As at FY2021, 100% of our glove factories are certified with Quality Management System (QMS). We target

to certify 100% of our non-glove factories with QMS in FY2022.

c. Enhancing skills and knowledge of employees, for example: a. Structured Packing Executive Enrichment & Development (S.P.E.E.D) Programme, a 4-month job specific

development training programme for Packing Executives.

d. Suppliers training on product qualitya. Product quality is a key agenda in our engagement session with suppliers the inaugural Top Glove

Sustainability Webinar: Suppliers & Contractor for which was held on 30 September 2021.

e. Compliance with product labelling regulations a. In FY2021, there were no incidents of non-compliance with regulations concerning product labelling or

marketing communications (including advertising and promotions) for our in house brands.b. On 6 September 2021, we published the Top Glove Advertising and Product Representation Principles and

trained the relevant personnel on the core advertising principles and unacceptable general claims. c. 100% of our significant products are covered by and assessed for product labelling compliance. In FY2021,

we have zero incidents of non-compliance with regulations concerning:i. Product information and labellingii. Marketing communications, including advertising, promotions and sponsorship

130 131



Supplier assessment:

No. and percentage of critical suppliers assessed on ESG criteria (based on all critical suppliers)

159 critical suppliers, or 49%

No. of self-audits conducted 122

No. of site audits conducted 37

Percentage of new suppliers screened using environmental criteria 94%

Number of suppliers assessed for environmental & social impacts 159 suppliers

Supplier assessment has been affected by travel restrictions during the Movement Control Orders imposed by the government.

Supplier town hall

In FY2021, we held 4 supplier town halls covering 412 suppliers, focusing on social compliance practices. Suppliers who attended included our packaging material suppliers, manpower agents, chemical suppliers, latex suppliers and canteen operators.

Topics covered in the town hall are:

1. Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 (Act 446)

On 30 September 2021, we invited our suppliers to participate the inaugural Top Glove Sustainability Webinar: Suppliers & Contractor to communicate Top Glove’s ESG practices and our expectations on our intermediaries.

CUSTOMER EXPERIENCE

Management approach: We frequently engage with our customers to understand their needs, identify our shortfalls and new win win business opportunities. We define good customer satisfaction as not only entailing high quality and efficient low cost products, but also ethical business practices and robust protection of customers’ data.

Ethical marketing practices:

Top Glove further solidified our commitment to ethical business practices through the establishment of the Sales & Marketing Code of Conduct, which covers principles of sales, marketing and advertising.

zero tolerance on corruption and bribery, and sustainable business practices, the Sales & Marketing Code of Conduct ensures our employees always exhibit a level of ethical behaviour that exceeds legal requirements.

Towards ensure our personnel deliver exceptional customer service, a variety of E-learning modules, and training programs are conducted continuously to all Sales and Marketing employees to ensure the utmost compliance with the Sales & Marketing Code of Conduct, and to equip them with comprehensive product knowledge, and other soft skills.

In the past 4 financial years, there were no legal actions or fines related to anti-competitive behaviour and violations of anti-trust and monopoly legislation.

Encompassing the aspects of sales, marketing and promotional activities, ethical customer engagement, safeguarding of information, providing accurate and balanced information about our products and services,

2. Top Glove’s Business Partner Code of Conduct3. Occupational safety and health

SOCIAL: 1. SECURITY MANAGEMENT

2. LOCAL COMMUNITY

SOCIAL: 1. SUPPLY CHAIN MANAGEMENT2. CUSTOMER EXPERIENCE

SECURITY MANAGEMENT

LOCAL COMMUNITY

Management approach: The safety of our employees, premises including hostels and assets is very important to the Company. Top Glove is one of few Malaysian companies with its own pool of auxiliary police towards guarding the safety and security of our employees and premises.

Management approach: we are committed to creating positive and long term community impacts for a sustainable future, especially for the generations to come. The Top Glove Foundation (TGF) is the Company’s

main charity arm for community support and outreach initiatives, which focuses on community development, education support and environmental conservation.

Customer satisfaction survey:

Our customer satisfaction survey focuses on four key areas for customers: price competitiveness, product quality, delivery and services. From the survey results, we conducted an analysis to identify areas for improvement. In the first half of FY2021, we scored low in terms of price competitiveness and delivery. Due to the COVID pandemic which had resulted in exceptionally high glove demand and long lead time, delivery of glove products had been affected and this has reflected in the customer satisfaction survey results. Concerted efforts were made to address this issue, including organic factory expansion and increasing our capacity to better meet market demand.


Customer satisfaction (%) 77 74 72 71

Percentage of total customers responded (%) 12 19 19 14

In FY2021, we increased our auxiliary police by 83% to 150 auxiliary police to safeguard Top Glove premises including Top Glove Tower (our headquarters), hostels, Klang & Malaysia factories located outside Klang areas.

Leveraging on digitalisation, we improved our security mobile application ResQ which employees may use to report any safety/security incidents, rolling out Version 2.0, which was improved to be more user friendly and efficient. During the same reporting year, we have also expanded the Security Operation Management System ISO 18788 certification scope to cover factories located outside Klang areas.

• In FY2021, a total investment of RM702,252 has been made to support various causes initiated by TGF

• As of FY2021, a total of RM30.6 million in various contributions was made by TGF

• Total volunteer hours contributed by employees in FY2021: 61,152 hours. Out of these volunteer hours, 44,851 hours were related to supporting pandemic related initiatives such as glove packing, PIKAS vaccination program and delivery of PPE donations


Click here or scan the QR code to view our Sales & Marketing Code of Conduct

Sales & Marketing Code of Conduct

Click here or scan the QR code to view more community engagement initiatives

Community engagement initiatives


https://www.topglove.com/social-top-glove-foundation

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An initiative to support 110 blind masseurs with weekly distribution of food and basic essentials for approximately 100 days at Brickfields

employees involved93

volunteer hours contributed421

SOCIAL: LOCAL COMMUNITY

SOCIAL: LOCAL COMMUNITY

EDUCATION SUPPORT:

11 scholarships awarded with total value of more than

RM½ million in FY2021

As at FY2021, a total of

109 scholarships were offered, with monetary

investment value of

RM3.4 million

Total number of internship placements:

2,107

COMMUNITY DEVELOPMENT:

We support the communities in need through various projects such as philanthropic giving, food aid and internship opportunities. In FY2021, we have reached out and helped more than 1,000 needy families, schools and charity organisations.

ENVIRONMENTAL CONSERVATION:


BLIND MASSEURS PROJECT

Assisted a senior citizen and a single mother to two sons, both with Autism Spectrum Disorder (ASD) to earn a living by selling handicrafts to Top Glove staff



CSR PROGRAM WITH SHEREEN KHOO

To construct plastic bottle packed tightly with used plastic waste to upcycle into modular structures such as tables and chairs to drive awareness in terms of reducing and reusing plastic waste

An initiative to manage Upcycling, Downcycling & Recycling (UDR) of factories’ scraps and general waste


volunteer hours contributed1,272



Top Glove supports our athletes in golf, badminton and football games

SPORTS SUPPORT:

ECO BRICKS: GIVE THE EARTH A BREAK

UDR (UPCYCLING, DOWNCYCLING &

RECYCLING) PROJECT

Food Bank (groceries and facemasks) to 1,036 families from B20/B40 households in communities surroundings of our factories

Packing of hydrated dry ration to serve communities in need

employees involved

employees involved

208

35

volunteer hours contributed


881

225

LEND A HAND (LAH) PROJECT

RISE AGAINST HUNGER AND YAYASAN FOOD BANK

PROJECTS

To build an in-house nursery and ensure every workstation at Top Glove has a potted plant to create greener work environment

Gotong Royong activities carried out by Top Glove staff together with the local communities

employees involved

employees involved

70

156



176

321

GROW GREEN PROJECT

PUBLIC GOTONG ROYONG WITH THE LOCAL

COMMUNITIES

Donation of 92,000 pieces of medical face masks, valued at RM27,600 to 78 secondary schools around Malaysia for PINTAR Care Programme 2021

MEDICAL FACE MASK DONATION TO SCHOOLS

Contributed close to RM30,000 to the following beneficiary schools:

a. Tabung Pendidikan SMJK Tsung Wah to Upgrade School Facilities such as Desks and Chairs, Whiteboards, and Notice Board for School Students

b. Persatuan Ibubapa dan Guru SMK Convent Bukit Nanas to purchase study tables

c. SJKC Tar Thong Penang for New Building Fund and maintenance fee for Montfort Youth Centre

SUPPORTING FACILITIES UPGRADING FOR SCHOOLS

Donated 17 units of reconditioned and usable laptops/PCs to registered Welfare Homes, Community Centres and Tuition centres for the Poor

EDUSHARE PROGRAMME

SUPPORTING OUR ATHLETES

135INTEGRATED ANNUAL REPORT 2021

GOVERNANCE: STRENGTHENING GOOD CORPORATE GOVERNANCE AND RESPONSIBLE BUSINESS CULTURE

FY2021 GOVERNANCE HIGHLIGHTS



40% of KPI linked

to ESG metrics

Board evaluation conducted by independent

external party

Diverse gender and skills across Board of Directors, with

42% of female directors

ETHICS, INTEGRITY & GOVERNANCE

Management approach: Top Glove demonstrates the highest standards of corporate governance, a cornerstone of utmost importance in building a foundation of credibility and integrity for our stakeholders. We strive to implement comprehensive risk management, demonstrate good boardroom practices and instil a culture which promotes good ethics and conduct, as well as principles of anti-bribery and anti-corruption.

CORPORATE GOVERNANCE

Top Glove is guided by robust corporate governance practices in all our formal decisions and policy making exercises. A vigorous governance mechanism enable our Board of Directors to perform a pivotal role in sound strategic planning and risk management towards enhancing the sustainability of the Groups’ business operations.

The details of our corporate governance practices may be found in the Corporate Governance Overview Statement from pages 140 to 171 in this Integrated Annual Report.

Our management incentives or remuneration pay are linked to ESG metrics, ensuring management accountability for the achievement of the Company’s goals. In FY2021, the Group has set 40% of the FY2022 Key Performance Indicators (KPIs) tied to social and environmental pillars, which are aligned with the Company’s material ESG matters.

To reflect the Company’s commitment in transitioning into a net zero carbon business, the Group introduced carbon emission reduction as new KPI for FY2022.

40% of KPI linked to ESG metrics:

Product Quality and SafetyCustomer complaint rate

Occupational Health & SafetyOccupational accident rate

ACTIVE ENGAGEMENT BETWEEN BOARD COMMITTEES AND THE MANAGEMENT

Top Glove Independent Directors “zoomed in” on 29 July 2021, to Top Glove’s on-site vaccination programme, as part of their 3rd Engagement Session with Workers

The Board of Directors and senior management of Top Glove had a dialogue with the Human Rights Commission of Malaysia (SUHAKAM) to discuss how to level up the Company’s human rights practices to be on par with international standards

1

1 3 5

2 4

U.S. CBP related advice and updates

3 COVID status and management

4 Worker accommodation compliance with Act 446

2 Share Buy Back (SBB) meeting for a more structured SBB scheme

5

6

Visiting hostels and engaging directly with workers on-site

Virtual visit to on-site COVID vaccination programme

7 Engaging with external bodies to address ESG concerns, such as Human Rights Commission of Malaysia (SUHAKAM) and various climate change subject matter experts to discuss net zero target setting

The Board is supported by 5 Board Committees, namely the Board Audit Committee (BAC), Board Risk Committee (BRC), Board Nomination and Remuneration Committee (BNRC), Board Sustainability Committee (BSC) and Independent Directors Committee (IDC). ESG issues are discussed at all these Board Committees, particularly the BSC and BRC.

The Board Committees, including the Independent Directors (IDs) actively engage with the management and employees on all ESG issues. Starting March 2021, IDs have also held quarterly engagements with worker representatives to better understand issues faced and provide support to address these concerns raised which include grievance mechanisms, COVID vaccination, accommodation, awareness of workplace bullying and sexual harassment.

In addition, our IDs’ hands on involvement which goes beyond governance requirements includes the following areas:

GOVERNANCE: ETHICS, INTEGRITY & GOVERNANCE

Adoption of Independent Directors’ Tenure Policy:

Limiting the tenure of Independent Directors to 9 years without any further extension

Quarterly engagements between

independent directors and

worker representatives


Human Rights and Labour Practices Social ethical audit scoring

Reduce Carbon EmissionScope 1 & 2 emissions intensity reduction

Talent RetentionEmployee turnover rate

136 137



GOVERNANCE:ETHICS, INTEGRITY & GOVERNANCE

RISK MANAGEMENT

Top Glove’s risk management system is set up in accordance with ISO 31000:2018: Risk Management Guideline. The Top Glove Enterprise Risk Management Framework provides Top Glove with the capability to align risk management with corporate strategies, business directions & sustainability development.

Guided by the Company’s Enterprise Risk Management Framework, which is reviewed on frequent basis, we strive to maintain a sustainable balance between our risk appetite and business potential to achieve competitive advantage. Please refer to the Statement of Risk Management & Internal Control from pages 172 to 175 in this Integrated Annual Report for more disclosure on our risk management practices.

Towards effectively providing insights into plans and strategies for sustainable business growth, we have conducted 2 workshops on Scenario Planning for the Board & Management in FY2021. In the workshop, scenarios were developed based on global trends, impacts to business were identified and strategies developed to ensure alignment to impacts and trends.

CYBER SECURITY & DATA PRIVACY

Due to the current trend towards digitalisation, access to network, IT systems and data is important to maintain competitiveness. Lower than agreed upon system performance or service disruptions can result in higher costs and reputational risk for companies.

Information security and cyber security strategy is oversighted by the Board Risk Committee. Our Independent Director, Tan Sri Rainer Althoff, who is also a member of the Board Risk Committee has vast experience in managing Information Technology (IT) projects, mobile internet, factory automation, sustainability and digitalisation.

Identified cyber security issues are assessed based on the methodology provided by the Risk Management team, and escalated for onward action towards solving or improving these issues.

Our progress in cyber security:

Invested RM1.5 million in FY2021 to enhance

cyber security

100% of our IT infrastructure and information security

management system are certified with Information

Security Management System ISO 27001:2013

Testing on at least a yearly basis to ensure proper

incident response procedures are in place

Over the past 4 financial years, we achieved zero case in

the following areas:

Information security breaches or other

cybersecurity incidents

Information security breaches involving

customers’personally identifiable

information

Fines /penalties paid in relation to information

securitybreaches or other

cybersecurity incidents

Customers affected by

Company’s data breach

Number of complaints related

to breaches of customer privacy

and loss of customer data

CORPORATE INTEGRITY

Central Integrity Function is a group responding to ISO 37001:2016 Anti Bribery Management System (ABMS) requirement which consists of President of Top Glove Prevention and Anti-Corruption Committee (TGPAC) / Managing Director, Harmonized Integrated Management Representative (HIMR), Anti-Bribery Management Representative (ABMR) and Corporate Integrity. The Group which encompass of anti-corruption and anti-bribery practices are oversighted by Top Management and Board Audit Committee.

In FY2020, we extended and expanded the Anti Bribery Management System (ABMS) scope and implementation to all our subsidiaries, following the ABMS ISO 37001:2016 certification at Factory 9 in Meru, the first manufacturing facility in Malaysia to be certified with the ABMS. External and independent audits on the ISO 37001 ethical standards are performed annually to ensure validity and continued compliance.

In FY2021, 100% of Top Glove Corporation Bhd, covering 28 departments located in Malaysia are assessed for risks related to corruption. Risk control, due diligence and anti-bribery & anti-corruption control (ABAC) are carried out on these 28 departments to reduce, mitigate and prevent potential risks.

We require our stakeholders to abide by and affirm their commitment to integrity towards sound and sustainable business practices, in order to demonstrate the highest standards of corporate integrity.

When making charitable donation or sponsorship, we ensure either 1 or more of the documents below are checked to prevent the donation or sponsorship are used as a disguised form of bribery:

1. Registration under Ministry of Women, Family and Community Development (JKM)2. Inland Revenue Board of Malaysia Section 44(6) Registration3. Company Registration Form4. Company Profile5. Relevant previous supporting records by Top Glove

Our stakeholders are required to fulfil the following commitments. Anti-corruption is one of the audit criteria we cover on supplier assessment.

Stakeholders Anti-bribery & anti-corruption & ethics commitment

Employees, suppliers & business associates who have financial dealings with Top Glove

• To sign the Letter of Enforcement of Corporate Culture (LECC) on a half yearly basis

Customers • To sign the Letter of Enforcement of Corporate Culture and Business Ethics on The Issue of Bribery and Corruption (LECCBC)

• To adhere to the Top Glove Customer Code of Conduct

All external parties • To sign the Letter of Enforcement of No Gifts Policy

Employees • To sign the Employee Code of Conduct

Board of Directors • The Board of Directors has adopted the Directors’ Code of Conduct & Ethics of which the latest revision of the Conduct was made on 9 June 2021

Number of Malaysia staff who have received anti-corruption training in FY2021 (by job grade):

Management category Number of staff

Executive 6

Senior 14

Upper 152

Middle 693

Junior 356



138 139



The Board of Directors and top management demonstrate support of the W.H.I.T.E Integrity Culture by wearing white shirt on every first Wednesday of the month

WHISTLEBLOWING

The Company’s whistleblowing procedures and system is oversighted by the Board Audit Committee.

Guided by the Top Glove Whistleblowing Policy and Procedure, we have formal anonymous whistleblowing system with legal protection in place, in which our whistleblowing channels are managed by an external service provider who serves as case receiver and available in different platforms (email, online whistleblowing form and mail box). For our whistleblowing data disclosure, please refer to Whistleblowing section in page 112 in this report.

ETHICS & CONDUCTS

Upon joining the Company, all employees are required to acknowledge the Employee Code of Conduct and adhere to the do’s & don’ts in the Conduct.

10 cases of breaching against Code of Conduct were reported in FY2021. These involved cheating on attendance, overtime claim, alteration of medical certification and abuse of power. These employees were required to explain their actions for the Company’s further investigation. Appropriate disciplinary action was taken against the perpetrators if proven guilty.

To further instill the awareness, we have put more focus on training, such as release of 8 Podcasts, multiple times of test on our corporate values, R.I.V.E.R. (Respect, Integrity, Value, Empowerment and Relationship) and held 15 sessions of R.I.V.E.R. trainings.

Anti-corruption and anti-bribery data:


No. of corruption and bribery cases 0 1 0 0

Political contributions made 0 0 0 0

Facilitation payments made 0 0 0 0

Fines imposed in relation to corruption, bribery & anti-competitive business practices 0 0 0 0

W.H.I.T.E INTEGRITY CULTURE

In FY2021, we continued our efforts to instill the W.H.I.T.E (5 Healthy Wells, Honesty, Integrity, Transparency and Educate) Integrity Culture among our workforce and value chain, as part of our commitment to ensure compliance with the Corporate Liability Provision S17A enforced on 1 June 2020. Our initiatives organised towards this include:

a. W.H.I.T.E Integrity Roadshow

b. W.H.I.T.E Integrity Day

c. Special training for BOD

d. Corruption Free Pledge/ Ikrar Bebas Rasuah (IBR)

e. Integrity survey

f. Integrity briefing slide

g. Training & awareness

h. Town hall sessions with external stakeholders to the W.H.I.T.E Integrity Enhancement Program

i. Wearing a white shirt on every first Wednesday of the month in support of the W.H.I.T.E Integrity culture

a f

b g

c h

d

i

e


GOVERNANCE:ETHICS, INTEGRITY & GOVERNANCE


COMMITTED TO ACCELERATING SUSTAINABILITY IN OUR BUSINESS

We are mindful that a sustainable business is a strategic advantage and strive to improve our business activities, influence our value chain and foster relationships as well as collaborations towards creating long term positive impacts to our stakeholders and the environment. By continuing to do well by doing good, we are able to move the needle on shaping a better planet and a more sustainable society.

FEEDBACK

Enquiries, suggestions and feedback on our sustainability report or performance are always welcome at [email protected]

Respect We earn respect by treating everyone with respect.

Integrity We do the right thing every time.

Value We create and add value every day.

Empowerment We entrust our people with appropriateresponsibility.

RelationshipWe foster collaboration for mutual good.

Click here or scan the QR code to view Top Glove Whistleblowing Policy and Procedure

Click here or scan the QR code to view Top Glove’s anti-corruption and anti-bribery commitment

Whistleblowing Policy and Procedure Top Glove’s anti-corruption and anti-bribery commitment

Top Glove Sustainability Video

Click here or scan the QR code to view Top Glove Sustainability Video

https://www.topglove.com/whistle-blowing

https://www.topglove.com/corporate-integrity/

https://youtu.be/XHVbo2aMBKI

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The Board plays a vital role in ensuring the stability of the business, particularly during times of uncertainty, by delivering effective leadership which supports the creation and delivery of strong and sustainable financial and operational performance for the Group and long-term value for our stakeholders. However, at Top Glove, we recognise that it is our people who are our greatest asset; they are key to our continued success and to the delivery of our established, consistent, proven and successful strategy. The resilience and commitment of our people and their unwavering dedication to keeping our operations running safely and to providing the highest quality of service to our customers, despite the challenges faced this year are testament to the quality of our People.

The importance of good governance is never greater than in times of macroeconomic uncertainty. The Group’s success depends on our continual commitment to high corporate governance standards, as well as a healthy and responsible culture, both in the Boardroom and across the Group. We do not view corporate governance as an exercise in compliance but as an evolving and core discipline which generates value for our stakeholders and underpins our success.

In the current uncertain economic environment, effective oversight of strategy and risk is particularly important to promote the long-term success of the Group. In performing this role, the Board seeks to be responsive to both the evolving

This Statement makesreference to the three (3)Broad Principles of the MCCG:

PRINCIPLE A :

Board Leadership and Effectiveness

PRINCIPLE B :

Effective Audit and Risk Management

PRINCIPLE C :

Integrity in Corporate Reporting

and Meaningful Relationship with

Stakeholders

CREATING VALUE THROUGH SUSTAINABLE GOVERNANCE

CORPORATE GOVERNANCE OVERVIEW STATEMENT CORPORATE GOVERNANCE OVERVIEW STATEMENT

Significant Governance Achievements of the Company in FY2021:

WE ARE GUIDED BY THE FOLLOWING FRAMEWORKS1

Malaysian Companies

Act 2016 (“CA 2016”)

Main Market Listing Requirements of Bursa

Malaysia Securities Berhad (“Bursa Securities Main LR”)

Malaysian Code on Corporate Governance

(“MCCG”)

Corporate Governance Guide (3rd Edition) issued by Bursa Malaysia Berhad

Scan the QR code for more information about Our Corporate Governance Policies and Disclosures

Informs where to find more information online.

regulatory environment and changing expectations about the role of business in society. In particular, the Board seeks to ensure that the Group’s culture is aligned with its purpose and values and that the Company has the necessary financial and human resources to deliver its strategy successfully. As a Board, we are committed to ensuring that the Company’s purpose, values and high standards are set from the level of chairman and all Non-Executive Directors, with the support of the Executive Directors and the executive management team, embedded throughout the Group. We are dedicated to leading by example to demonstrate Top Glove’s strong corporate values and culture which promote the long term sustainable success of the Company for the benefit of all of our stakeholders.

https://www.topglove.com/governance-manual/

OUR GOVERNANCE PRACTICES EXCEED WHAT IS GENERALLY REQUIRED

2

in the list of top 100 companies for Corporate Governance Disclosure 2020

NO. 29Rank

Malaysia-ASEAN Corporate Governance Report 2020

WE ARE COMPONENT STOCKS OF3

MSCI Global Standard Index

FBM EMAS Index

FTSE Bursa Malaysia (“FBM”)

KLCI Index

FBM EMAS Shariah Index

FBM Top 100 Index

FBM Hijrah Shariah Index

Engaged an independent professional to conduct Board Evaluation

Adoption of Independent Directors’ Tenure Policy: Limiting the tenure of Independent Directors to 9 years without any further extension

Revised Board policies in line with MCCG 2021 best practices

Linking of Executive Compensation to ESG Metrics

Appointment of Compliance Officer to strengthen the Corporate Compliance groupwide

Increased frequency of meetings amongst Independent Directors to discuss among others strategic, governance and operational issues and active engagement between Independent Directors and the Management

Quarterly engagement between Independent Directors and workers’ representatives focusing on the welfare and well-being of workers

More structured share buy back policy and procedure to govern the Company’s share buy back activities

Higher dividend distribution in FY2021 : 20% special dividend in addition to its existing dividend policy of a 50% dividend payout ratio, for 2nd Quarter to 4th Quarter of FY2021

Resolved all 11 International Labour Organization (ILO) indicators of forced labour

Developed Sustainability Roadmap and Strategies Framework

Developed Enterprise Risk Management Framework in accordance with ISO 31000:2018

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SUMMARY OF CORPORATE GOVERNANCE PRACTICES

For the financial year ended 31 August 2021 (“FY2021”), Top Glove Corporation Bhd (“Top Glove” or “the Company”) has applied all the Practices and adopted all the steps-up encapsulated in the MCCG. We will continue our efforts to further strengthen our governance practices in ensuring its robustness to continuously safeguard the interests of our stakeholders while driving growth.

The details of how the Company has applied, complied with and adopted the MCCG Principles and Practices are outlined in our Corporate Governance Report 2021, which is available on our website at https://www.topglove.com/governance-manual/

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CORPORATE GOVERNANCE OVERVIEW STATEMENTCORPORATE GOVERNANCE OVERVIEW STATEMENT

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS

OUR BALANCED AND EXPERIENCED BOARD DELIVERS AND DRIVES OUR STRATEGY

Executive Chairman (“EC”) Managing Director (“MD”) Executive Directors (“ED”) Senior Independent Non- Executive Director (“SINED”) Independent Non-Executive Directors (“INED”) Non-Independent Non-Executive Director (“NINED”)

The EC leads the Board and manage the interface between the Board and Management. Responsible for the orderly conduct and effective function of the Board.

The MD spearheads the business and day-to-day management of the Group in accordance with the strategic plans and within the budgets approved by the Board.

The EDs are responsible for the day-to-day operations of the Group whereby operational issues and problems are discussed, major transactions and matters relating to the Group are reviewed and operational strategies are formulated.

The SINED serves as a designated contact between Non-Executive Directors and EC as well as shareholders.

The INEDs are to deliberate and discuss policies and strategies formulated and proposed by Management with the view of long-term interests of all stakeholders. The INEDS provide independent and unbiased view, advice and judgement to ensure a balanced and unbiased decision-making process to safeguard the long-term interests of all stakeholders and the community.

The NINED functions to provide in-depth knowledge and insight from the Group’s perspective.

The NINED is to ensure that the knowledge and insight contributed will lead to a comprehensive, balanced and unbiased decision-making process that serves in the best interests of the Group.

ROLES

CORPORATE GOVERNANCE FRAMEWORK

Stakeholders

Board Audit Committee

(“BAC”)

Board Risk Committee

(“BRC”)

Board Nomination and Remuneration

Committee(“BNRC”)

Executive Chairman

Board Sustainability

Committee(“BSC”)

Independent Directors

Committee

Board of Directors

Managing Director Executive DirectorsExecutive Committee

Senior Management Team

Sustainability Department

Company Secretaries

Internal Audit Department

Risk Management Committee

Board Committees

Presently, the Board is supported by four (4) Board Committees with delegated responsibilities to oversee the Group’s affairs and authorise to act on behalf of the Board in accordance with their respective Terms of Reference (“TOR”).

Each Board Committee will review, report and make recommendations to the Board during the Board meeting on matters relevant to their roles and responsibilities. The Chairman of the respective Board Committee will provide highlights to the Board and the minutes of the respective Board Committees meeting will also be tabled at the quarterly Board meetings so as to keep the Board abreast of the decision and deliberation made by each Board Committee.

Similar to the Board, each Board Committee is supported by the Company Secretary and has access to independent advice as required for the performance of its duties.

EXCO

Executive Committee (“EXCO”) assists the Board Chairman in ensuring that the Board’s decision, strategies set, business plans, budgets, policies, procedures, daily business and operational issues approved by the Board are implemented and/or monitored efficiently and effectively by the Group’s Management.

The EXCO will review and consider the transactions or activities put forth by the Management, and approve them within its delegated authority or recommend them to the appropriate Board Committee and/or the Board.

Company Secretaries

Company Secretaries play an advisory role to the Board and support the Board in ensuring that all governance matters and Board procedures are followed and that applicable laws and regulations are complied with.

The Board is regularly updated by the Company Secretaries on changes in the relevant statutory and regulatory requirements, particularly in areas relating to the duties and responsibilities and disclosure requirements of the Directors.

The Company Secretaries also facilitate the communication of key decisions and policies between the Board, Board Committees and the Group’s Management.

Board of Directors

Led by the Chairman, the Board takes primary responsibility in defining the Group’s strategic direction, risk appetite and control environment aiming to promote long term value of the stakeholders.

Key responsibilities of the Board are as follows:

The Board Charter duly adopted by the Board clearly established the functions reserved for the Board and those delegated to Management. It is a reference and induction literature in providing the Board members and Management insight into the functions of the Board.

The Board Charter is accessible through the Company’s website: https://www.topglove.com/governance-manual/

1. Setting the Vision, Mission and Strategic direction for the Company and monitor delivery of strategy by the Executive Directors

2. Shaping the culture and values of the organisation in ensuring that the Company adheres to high standard of ethics

3. Formalise governance model and ensure appropriate policies and procedures are in place

4. Maintain effective communication with the Stakeholders

5. Deliberated on formal schedule of matters specifically reserved for Board decision

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Strategy 1. Strategy brainstorming

2. Strategic plans progress updates

3. Annual budget setting and review

4. Business expansion plans and developments

5. Business units strategic plan and projects progress updates

6. Revisit the Group’s Vision, Mission and Values

7. SWOT analysis

Financial Performance

8. Quarterly, half-yearly and yearly financial performance reports

9. Share performances on Bursa Securities and Singapore Exchange

10. Capital structure review and balance sheet management

11. Dividend policy and proposal

12. Share Buy Back strategy

Risk and Internal Controls

13. Audit Findings

14. Enterprise Risk Management Framework and report

15. Material risks and mitigation plans

16. Business Continuity Management Policy and Framework

17. Jurisdictional Regulatory Framework

Corporate Governance and Compliance

18. Board and Board Committees size and composition

19. Board appointment, renewal and re-election

20. Board remuneration package

21. Board and Board Committees performance assessment

22. Corporate Governance review and updates

23. Reappointment of Auditors

24. Board Policies adoption and revision

25. Board and Senior Management Team succession planning

26. Group Organisation Chart

27. Approval of Integrated Annual Report and Circular

28. Transfer pricing policy and procedure

29. Global regulatory compliance

30. Employees satisfaction survey

31. Independent Director Tenure Policy

32. Alignment of roles between INEDs and EDs

Sustainability 33. Sustainability Initiatives progress update

34. Labour practices and social compliance

35. Materiality Assessment for Sustainability

36. Sustainability Roadmap and Strategies Framework

37. Integration of Sustainability into Business Strategy

38. Remuneration payment linked to ESG metrics

Corporate Proposals

39. Proposed dual primary listing in the Stock Exchange of Hong Kong Limited

40. Proposed new business ventures

Others 41. Withhold Release Order imposed by the U.S. Customs and Border Protection

42. Talent Recruitment

43. Group’s compliance with COVID Movement Control/Restriction Order.

Board’s Key Areas of Focus during FY2021:

FY2021 Board and Board Committees’ Meeting Calendar

Total hours for Board and Board Committees’ Meetings FY2021

Aug’21Sept’20 Jun’21Oct’20 Nov’20 Dec’20 Jan’21 Feb’21 Mar’21 Apr’21 May’21 Jul’21

BOD

BAC

BRC BSC

BNRC

BRC

BOD

BRC BAC

BOD GM

BRC BAC

BOD

BAC BSC BNRC BRCBOD

BAC

BSC

BNRC BOD BOD

BRC BNRC BOD BSC

BOD

BAC

BRC BSC

BNRC

BRCBOD

BOARD MEETINGS

The Board meets at least seven (7) times in each financial year to review the formal schedule of matters specifically reserved for its approval. Additional meetings may be convened as special Board meetings, as and when necessary. In the intervals between Board meetings, any matters requiring urgent Board’s decisions or approvals will be sought via circular resolutions which are supported with all the relevant information and explanations required for an informed decision to be made and the same applies to the Board Committees.

Advisors will attend the Board meetings upon invitation, as and when necessary.

The Board has adopted a 75% Board Meeting Attendance requirement, in line with good governance practices, having viewed that technology has made it more convenient for meeting participation. In FY2021, all the Directors complied with the 75% Board meeting attendance requirement.

Name of Directors Designation

Board Meeting(“BOD”)

General Meeting (“GM”)

Board Committees

BAC BRC BNRC BSC

1. Tan Sri Dr Lim Wee Chai EC 10/10 1/1 - - - -

2. Dato’ Lee Kim Meow MD 10/10 1/1 - 2/3 - -

3. Dato’ Lim Han Boon SINED 10/10 1/1 9/9 8/8 5/5 1/1

4. Tan Sri Rainer Althoff INED 10/10 1/1 - 8/8 - -

5. Lim Hooi Sin ED 10/10 1/1 - - - -

6. Lim Cheong Guan ED 10/10 1/1 - 3/3 - -

7. Puan Sri Tong Siew Bee NINED 10/10 1/1 - - - 4/5

8. Datuk Noripah Kamso INED 10/10 1/1 7/9 8/8 1/1 5/5

9. Sharmila Sekarajasekaran INED 10/10 1/1 9/9 - 5/5 5/5

10. Datuk Dr. Norma Mansor INED 10/10 1/1 - 8/8 5/5 -

11. Azrina Arshad INED 10/10 1/1 9/9 - 4/4 5/5

12. Lim Andy INED 10/10 1/1 - - - -

Total no. of Meetings: 10 1 9 8 5 5

DIRECTORS’ ATTENDANCE AT BOARD, BOARD COMMITTEES AND GENERAL MEETINGS HELD DURING FY2021

BOD BAC BRC BSCBNRC20 hours 7 minutes 13 hours 56 minutes 19 hours 55 minutes 7 hours 22 minutes 9 hours 39 minutes

The dates of the meetings of the Board, Board Committees and AGM for each financial year were fixed in advance for the whole year to ensure all Directors/Board Committees members’ dates are booked and also to facilitate Management’s planning for the whole financial year. The Board decisions made at the Board meetings shall be by a majority vote as prescribed by the Constitution of the Company.

In FY2021, the Board met ten (10) times. The Company Secretary is in attendance in every meeting while the Senior Management, Internal and External Auditors and the Corporate


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BOARD STRATEGY AWAY DAY

The Board sets aside time each year outside the annual Board calendar to hold a Strategy Day giving the Directors the opportunity, together with the senior management to focus solely on strategic matters. On April 2021, the Board held a session to set and monitor progress against the Group’s strategy and to discuss the strategic challenges and opportunities the Group faces in the future, in view of progressing on its journey towards becoming a sustainable Fortune Global 500 Company by 2030. Action plans resulting from the Strategy Day are implemented and reviewed by the EXCO every two months and presented to the Board on a quarterly basis.

INDEPENDENCE

The Board recognizes the significant contributions by the INEDs to the Company in bringing independent and objective judgment to the Board in decision making.

An annual assessment of independence is carried out by the BNRC to reaffirm the independence of all INEDs based on the provisions of Bursa Securities Main LR, including a self-declaration of any involvement or relationship which could interfere with an independent judgement and ability to act in the best interests of the Company. An independent confirmation based on the independency assessment is also obtained before appointment of INED.

During FY2021, the Board was satisfied that none of the INEDs had any relationship that could materially interfere with, or be perceived to materially interfere with their unfettered and independent judgement and ability to act in the best interests of the Company.

During the year under review, the Board has updated the Independent Director Tenure Policy to limit the tenure of its independent directors to nine (9) years without further extension. In view thereof, our SINED, Dato’ Lim Han Boon, who has served on the Board for more than nine (9) years and obtained shareholders’ approval to be retained as an INED of the Company until the conclusion of the coming Twenty Third Annual General Meeting (“23rd AGM”) to be held in January 2022 had decided to retire during the 23rd AGM.

On the other hand, Tan Sri Rainer Althoff’s nine (9) years tenure with the Company will expire on 14 March 2022. For good governance practice, Tan Sri Rainer has expressed his intention to retire during the 23rd AGM despite him not yet serve the Board for full nine (9) years term.

To further strengthen the Board’s independence, Puan Sri Tong Siew Bee, the NINED of the Company who has served on the Board for more than 21 years and who retires by

CORPORATE GOVERNANCE OVERVIEW STATEMENT CORPORATE GOVERNANCE OVERVIEW STATEMENT

COVID Crisis

As news of the Company’s workers having tested positive for COVID emerged in November 2020, the Board requested for an emergency meeting to provide strategic direction and guidance on managing the health and welfare of our migrant workers. The Board supported the conduct and progress of the Company’s on site vaccination programme, under Program Imunisasi Industri COVID Kerjasama Awam-Swata (PIKAS) that commenced on 19 July 2021 for its Meru Klang factories.

Engagement with the Work Force

We have an experienced, diverse and dedicated workforce which we recognise as a key asset of our business. At Top Glove, we understand that the employee voice can increase collective learning and that, when employees feel safe to voice concerns and contribute honestly to decision making processes, the natural diversity within the Group can be better leveraged, which optimises decision making.

Throughout the year, we continued to invest time and resources in communicating with our people and ensuring that the employee voice is heard by the Board. During the year, members of the Board visited the male and female hostels in Meru, Klang and Banting as well as the new Westlite-PKNS hostel in Petaling Jaya to personally assess their living conditions. In doing so, we are able to hear their views and gain valuable insights into the matters affecting our people the most.

Top Glove is a global business with operations in multiple locations and our employees fulfil a broad range of roles with many different perspectives. It is therefore essential that our engagement methods suit the nature of our business and our workforce. We strongly believe that this holistic approach to engagement is the most effective method and allows the Board to understand, monitor and assess the culture of the business and its alignment with the Company’s purpose, values and strategy. Further information concerning how the Board monitors culture can be found in this report and details of the actions taken in respect of workforce engagement can be found on pages 134 and 135.

BOARD GOVERNANCE: EMBEDDING SUSTAINABILITY INTO OUR DNA

In recent years we have seen an increased focus from stakeholders and regulators on ESG and sustainability matters. At Top Glove, sustainability is an important part of our culture and the way we do business. Our sustainability strategy is aligned to the Company’s strategic framework and is fully supported by the Board and the Group as a whole. Through our sustainability strategy, we aim to deliver long term sustainability for our stakeholders, while impacting positively on society and protecting the environment. The Board believes that a socially and environmentally sustainable and responsible business and an inclusive and collaborative culture are critical to creating value and to making the Group more commercially successful in the long term, for the benefit of all our stakeholders. Top Glove’s reputation for high standards of responsible and sustainable business conduct is something that we are extremely proud of and we will continue to pursue our sustainability ambitions to ensure that this reputation is upheld. Further information about the Company’s approach to sustainability can be found on pages 88 to 139 and 154 to 155.

BOARD APPOINTMENT AND SUCCESSION PLANNING

The selection, nomination and appointment of suitable candidates to the Board follow a transparent process, through the BNRC. The BNRC is also responsible to review the existing composition of the Board, identifying the gaps and subsequently review and recommend to the Board a suitable candidate with the relevant skill sets, expertise and experience. Apart from its own networks in sourcing suitable candidates for the Board, the Board also takes into consideration the potential candidates from other independent sources. The Board had during its meeting held in September 2021 resolved not to consider any active politician to be on the Board.

In reviewing and recommending to the Board of any new Director appointment, the BNRC considers:

Age, gender, ethnicity, required mix of skills and experience, knowledge, expertise, professionalism, integrity, capabilities andsuch other factors which would contribute to the Board’s collective skills;

Expected time commitments if the candidate has multiple board representations;

Composition requirements for the Board and Board Committees; and

Independence, for the appointment of an INED.

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rotation in accordance with Article 94 of the Company’s Constitution, has notified the Board that she does not wish to seek for re-election as Director and shall retire as Director at the conclusion of the 23rd AGM.

SUPPLY AND ACCESS TO INFORMATION

The Board and Board Committees receive pertinent information from the Management on a timely basis to fulfil their roles. Further, all the Board Committees and Executive Committee meeting minutes were tabled in Board meetings for notations.

All Directors are provided with an agenda of the Board meeting and Board papers which contain among others, the Company’s financial performance, business outlook and various Board Committees’ Reports respectively prior to the Board meeting. The Board papers are issued in advance and in a timely manner to facilitate informed decision-making. The Managing Director and Executive Directors would lead the presentation of Board papers and provide comprehensive explanations of strategy and business plans, business performance, potential mergers and acquisitions and other pertinent issues.

Any proposals and recommendations by Management will be discussed at the EXCO level and then the EXCO’s recommendation will be put forth to the relevant Board Committees for deliberation and endorsement. Thereafter, the Chairman of the respective Board Committees will brief the Board and seek an approval from the Board. All matters raised, deliberations, decisions and conclusions including dissenting views made at the Board meetings with clear actions to be taken by responsible parties are recorded in the minutes.

Notices on the closed period for dealing in Top Glove’s securities are served to Directors, key management personnel and principal officers who are deemed to be privy to any sensitive information for the applicable periods especially the regular annual scheduled Board meetings to approve the quarterly financial results. This is to comply with Bursa Securities Main LR and the Capital Markets and Services Act 2007 requirements where Directors, key management personnel and principal officers of the Company and the Group are prohibited from dealing in securities based on price sensitive information which have not been publicly announced within 30 calendar days before the targeted date of announcement of the quarterly financial results up to the date of announcement.

The Directors are also notified of any corporate announcement released to Bursa Securities and the impending restrictions on dealing with the securities of the Company prior to the announcement.

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Top Glove’s Boardroom appointment process is as follows:

Board approves the appointment of Director

BNRC develops profile and competency and searches for candidates

BNRC identifies and shortlists the “Potential Candidates”

BNRC conducts due diligence on the “Potential Candidates”

BNRC interviews the shortlisted candidates

BNRC nominates and makes recommendation to the Board

BNRC conducts annual assessment, reviews and identifies gaps/ vacancy


The Board’s Induction/ Orientation is a programme co-ordinated by the Company Secretary together with the Executive Director and head of business units with the objectives of providing newly appointed Directors the necessary information and overview to assist them in understanding the operations, corporate strategies, current issues and challenges, structure and the management of the Company, as well as on-site briefings or site visits for better understanding of the operations aspect of the Company.

The Board through the BNRC has determined the training needs of the Directors based on outcome derived from the annual Board performance and effectiveness evaluation. The Company Secretary constantly sourced for suitable development programme for the respective Directors in accordance to the training need analysis. The Directors may raise any training needs with the Chairman who helps to ensure that the training programme meets the needs of the Board, Directors and the business. Directors may also request training on specific issues with some attending external courses which are specific to their area of expertise, such as remuneration or audit.

Ongoing training in both business-related and regulatory matters is provided to the Board during the year. This helps to ensure that the Board keeps up to date with evolving regulatory and legal matters. From time to time, meetings with specialists in the business are arranged for Directors who may wish to gain a deeper insight into a particular topic.

Summary of Training attended by all Board members in FY2021

Training CategoriesNumber of

Trainings Attended

Corporate Governance 8

Financial and Capital Market 10

Human Resource 3

IT 13

Leadership & Business Management 22

Legal 2

Risk Management 6

Sustainability 16

Total 80

The Board, with assistance from the BNRC, is responsible for succession planning for the Directors and Key Senior Management (“Key Business Leaders”), guided by the Succession Planning Policy adopted by the Board. The succession planning is to ensure the stability and accountability of the Group by preparing for an eventual permanent change in leadership, either planned or unplanned, so as to ensure continuous support in operation and service when the above Key Business Leaders leave their positions.

The Succession Planning Policy is accessible through the Company’s website: https://www.topglove.com/governance-manual/

DIRECTORS’ RE-ELECTION

The BNRC and Board ensured that the annual re-election of Directors was contingent on satisfactory evaluation of Directors’ performance and contribution to the Board.

DIRECTORS’ PROFESSIONAL DEVELOPMENT

The Board has a training policy for Directors with the aim to ensure all the Directors have access to learning, development and training opportunities to better equip themselves with the skills and knowledge required to fulfill their fiduciary duties and carry out their roles and responsibilities.

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The Training Policy for Directors is accessible through the Company’s website: https://www.topglove.com/governance-manual/

During FY2021, all the Board members attended various training programmes; the list of training attended by each Director can be found on page 13 to 17 of the Corporate Governance Report.

BOARD AND SENIOR MANAGEMENT REMUNERATION

The Remuneration Policy and Procedures for Directors and Senior Management (“the Remuneration Policy”) was updated by the Board on September 2021 to reflect the current component of the remuneration packages and current structure of the Board and Senior Management. During a Board meeting held in June 2021, the Board had deliberated on the Group’s remuneration pay link to Environmental, Social and Governance metrics. The Board decided that the performance evaluations of the Board and Senior Management include a review of their performance in addressing the company’s material sustainability risks and opportunities.

The Remuneration Policy comprised remuneration guiding principles, remuneration framework, remuneration elements as well as remuneration policies and procedures. The remuneration of Executive Chairman, Executives Directors and Key Senior Management is determined based on, amongst others, their scope of duties, responsibilities, skills and experience, corporate and individual performances and achievement of annual key performance indicators as well as prevailing market practice and economic situation. The remuneration of the INEDs and NINED is determined based on experience and level of responsibilities undertaken, extent of contributions, effort and time spent, number of committees served as well as prevailing market practice and economic situation.

The Company rewards its employees and the Executive Directors with options under the Employees’ Share Option Scheme (“ESOS”) and shares under the Employees’ Share Grant Plan (“ESGP”). The Executive Directors are not entitled to receive meeting allowances for the Board and Board Committees meetings they have attended. The details of the vesting of options under the ESOS and awards of shares under the ESGP are set out on page 181 of this Integrated Annual Report under the Directors’ Report of the Audited Financial Statements for FY2021.

The ESOS and ESGP committees as below comprised majority INEDs continued to oversee the administration as well as to ensure proper implementation of ESOS and ESGP according to the respective By-Laws:

The Remuneration Policy is accessible through the Company’s website: https://www.topglove.com/governance-manual/

1) Tan Sri Dr Lim Wee Chai (Chairman)2) Lim Cheong Guan3) Lim Jin Feng4) Dato’ Lim Han Boon5) Datuk Noripah Kamso6) Datuk Dr. Norma Mansor7) Sharmila Sekarajasekaran

During FY2021, the ESOS and ESGP Committees had considered and approved the ESOS and ESGP allocation factors to the eligible employees of the Group.

Whereas, the Non-Executive Directors are entitled to receive meeting allowances for the Board and Board Committees meetings they have attended but are not entitled to participate in the ESOS and ESGP save for the NINED.

ETHICS AND INTEGRITY

The Board has adopted the Directors’ Code of Conduct and Ethics for Directors to reflect the underlying values and commitment to lay standards of trust, integrity, responsibility, excellence, commitment, dedication, diligence, ethics and professionalism contributing towards the social and environmental growth of the surroundings in which Top Glove Group operates.

Embracing ethical culture in an organisation is fundamental in preservation of the Company’s reputation and thereby increases the confidence of stakeholders. The Company has committed to uphold the practice of Integrity in the organisation and has adequate policies and procedures in place driven by the Integrity Department.

BOARD EFFECTIVENESS EVALUATION

The Board recognised that a structured and regular evaluation of Board is an important pillar of good corporate governance. The evaluation of the Board members and the Board Committees are conducted on an annual basis. KPMG Management & Risk Consulting Sdn Bhd (“KPMG”) has been appointed by the Company to facilitate the Board Effectiveness Evaluation (“BEE”) for FY2021.

The Directors’ Code of Conduct and Ethics is available on the Company’s website at https://www.topglove.com/governance-manual/

The details of the Directors’ remuneration comprising remuneration received/ receivable from the Company and subsidiaries respectively in FY2021 can be found in our CG Report which can be accessed via https://www.topglove.com/governance-manual/

The details of the Directors standing for re-election and the justification can be found on page 314 of the Notice of AGM.

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Oversee strategy implementation in maximizing long term value

Continue to structure a high-performing Board by reviewing and improving Board performance as well as strengthening Board practices and processes in meeting ongoing and emerging challenges

Prioritise in integrating Sustainability in the business operations

Enhance oversight function on the labour issue and monitor implementation by the Management to be re-included in FTSE4Good Bursa Malaysia (F4GBM) Index

Accelerating digital transformation in promoting operational resiliency

Enhance the human capital management, being the key driver of organisation’s long term value

Addressing the changing stakeholders’ expectations in navigating ongoing global crisis

Some of the key strengths as well as recommended areas for improvement arising from the BEE for FY2021 are as follows:

LOOKING AHEAD

Global market condition is expected to remain challenging in the coming year, we will continue to enhance our sustainability practices, maintain robust governance framework and embrace ethical corporate culture in sustaining our growth in the face of business uncertainty.

Some of the priorities for FY2022 in addition to its regular activities are as follows:

The revised BEE framework is available on the Company’s website at https://www.topglove.com/governance-manual/


ASSESSMENT CRITERIA

The BEE assessment criteria covered the following key areas:

Scope of Assessment Assessment Criteria

Questionnaire assessment

1. Board Performance Assessment

1. Board Mix & Composition2. Quality of Information

and Decision-Making

3. Boardroom Activities4. Board Chairman’s

Role

2. Board Skills Matrix

1. Envisaged Board Skills Matrix 2. Current Board Skills Matrix

3. Board Self and Peer Performance Assessment

1. Contribution and Performance2. Calibre and Personality

3. Managing Director4. Senior Independent

Director

4. Directors’ Independency Assessment

1. Director’s Background2. Economic relationship3. Family relationships

4. Tenure5. Qualitative

assessment

5. Board Committees Assessment

1. Composition and governance2. Meeting administration and

conduct

3. Committees’ oversight duties and responsibilities

Additional assessment for Board Audit Committee:

1. Group Synergy and Reporting Line

2. Oversight of financial reporting process, including internal controls and audit processes

3. Oversight on the Internal Audit Function

4. Oversight on the External Auditor

One-to-one interviews session

With Board members

1. Views on Chairman and the Board2. Strategy and Risk Management

and Group Governance3. Boardroom administration and

information flow

4. Board dynamics and composition

5. General, critical-mission issues and news

With Board Chairman

1. As Chairman of the Board2. Strategy and Risk Management

and Group Governance3. Boardroom administration and

information flow

4. Board dynamics and composition

5. General, critical-mission issues and news

With Key Senior Management

1. Views on the Board2. Boardroom administration and

information flow

3. General questions, critical issues

STRENGTHS IDENTIFIED AND IMPROVEMENT REQUIRED

Based on the assessment in FY2021, the overall results were generally positive. Board is satisfied with the overall performance of individual Director, effectiveness of the Board and Board Committees and independency of Independent Directors.

The Board agreed that its composition is well structured and represented, with an appropriate mix of skills, expertise and experience, contributing to the overall effectiveness of the decision-making process for the Company and the Group.

Key strengths

Boardroom commitment and proactivity, diversity, financial stewardship as well as efficacy of the BAC were highlighted as areas of strength. The results of the FY2021 BEE indicated that Top Glove’s Directors demonstrated an active leadership style and displayed commendable proactivity to learn, teach and share amongst each other. The Executive Chairman is highly regarded for his hands-on approach and being highly invested in the affairs of the Company. This is further buttressed with the strong recognition of diversity at the Board level which has brought about the sharing of varied views, experiences and cognitive variety during boardroom deliberations. In addition, the Board’s vigilance over the Company’s financial affairs was acclaimed given the strong drive for efficiency and optimisation. The findings of the BEE results also revealed that the BAC was perched as the joint best performing committee and this should be considered against the backdrop that the BAC is reposed with the most wide-ranging responsibilities. It was highlighted that the BAC is able to maintain a hawk-eye watch on its core mandates including exercising oversight on internal controls and upholding the sanctity of the external audit process.

Areas for improvement

Based on the premise of continuous improvement, certain markers for enhancement were noted. To clarify further, the co-creation process in strategy between the Board and EXCO/Senior Management can be reinforced. Communication between the Board and Management can also be made more dynamic in relation to high-impact matters. In addition, the outworking of the BNRC can be further strengthened with regards to organisational development and training needs for Directors. As an added heft, the Board configuration can be buttressed with consideration on skill set such as digital, sustainability and industrial expertise. Boardroom administration and information flow can be fortified through greater involvement of Board members in agenda setting, enhanced coverage on Environmental, Social and Governance and digital matters in Board papers, explicit connectivity between proposals presented in Board papers and strategic plan as well as reinforced evaluation of the Company Secretary by the Board.

The action plans arising from the findings above had been developed and tabled to the BNRC for recommendation and subsequently elevated to the Board for approval. The Company Secretary is accountable for following through on the recommendations.

The BEE Framework had also been revised in FY2021 to reflect the Board’s commitment to engage independent experts once every three years to facilitate objective and candid board evaluations.

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BEE PROCESS

The BEE for FY2021 was conducted through the deployment of KPMG Digital BEE tool and interview sessions to review the effectiveness of the Board as a whole, the contribution of each individual Director and peers, independence of the INEDs and Board Committees’ performance.

The BEE methodology conducted by KPMG in FY2021 are as follows:

Design

1. Understanding Top Glove and review relevant documents and governing policies

2. Design customised questionnaires and interview questions

Assess

1. Circulate questionnaires for Board, Board Committees and Individual Directors’ assessment

2. Conduct one-to-one interviews with all Board members and Key Senior Management

3. Consolidate and assess the responses from questionnaires and insights gleaned from the interview sessions

Recommend

1. Prepare final BEE report detailing qualitative and quantitative analyses of assessment and improvement considerations

2. Prepare individual Directors’ reports outlining the strength and improvement considerations

3. Conduct a separate briefing session with the Board Chairman and BNRC Chairman to deep dive into the findings and identified action plans

4. Present findings and recommendation to the BNRC and the Board

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The TOR of the BNRC is available for reference on the Company’s website at https://www.topglove.com/governance-manual/

The Board Nomination and Remuneration Committee (“BNRC”) of Top Glove is pleased to present the BNRC Report for the FY2021.

Composition

The BNRC comprises four (4) members as follows, all of whom are Independent Non-Executive Directors:

MembersDate of Appointment

as BNRC MemberTenure on the BNRC as at 31 August 2021

1. Datuk Dr. Norma Mansor (Chairman) 12 May 2017 4 Years 3 Months

2. Dato’ Lim Han Boon 21 February 2011 10 Years 6 Months

3. Sharmila Sekarajasekaran 18 March 2015 6 Years 5 Months

4. Azrina Arshad 1 December 2020 8 Months

Note : Datuk Noripah Kamso had stepped down as BNRC member effective 1 December 2020 subsequent to the Board Committees composition restructuring exercise.

Meetings and Attendance

In FY2021, the BNRC had met five (5) times. The Company Secretary is in attendance in every meeting while the Executive Director, Senior Management and other Board members will attend the BNRC meetings upon invitation, as and when necessary.

Roles and Responsibilities

BNRC were entrusted by the Board to assist in nomination for the Board and Board Committees as well as assessing their performance and remuneration package.

Key responsibilities of BNRC are as follows:

Refer to page 144 and 145 for the attendance record of BNRC members.

1. Review Board and Board Committees’ composition and competencies

2. Nominate candidates for Board and Board Committees3. Assess the performance and effectiveness of the Board,

Individual Board members and Board Committees4. Review Board and Senior Management Succession Plan5. Oversee Directors’ training and development

needs and its effectiveness

1. Formulate formal and transparent remuneration process for Board and Key Senior Management

2. Periodic review on Board remuneration framework to ensure that the remuneration structured to link rewards to corporate and individual performance

Nomination Remuneration

BOARD NOMINATION AND REMUNERATION COMMITTEE REPORTKey Areas of Focus during FY2021:

Board and Board Committees’ composition and Succession Planning

1. Reviewed the size and composition of the Board 2. Reviewed the Board Committees’ composition3. Reviewed and recommended the merging of Board

Investment Committee and Board Risk Committee 4. Reviewed the succession plan for the Board,

Board Committee, Managing Director and Senior Independent Non-Executive Director

Board Appointment/ Re-Appointment

5. Reviewed the background, skills and experience of potential candidates to be appointed as the Independent Non-Executive Director of the Company

6. Evaluated the contribution of Directors seeking re-election and recommend to the Board on their suitability

7. Reviewed the Directors’ service tenure 8. Reviewed the appointment of senior management

position and recommended the need of having several Senior Management position

Framework, Policy & Guidelines

9. Reviewed and recommended the amendments made in the manual, policies and terms of reference adopted by the Board to be in line with both the Main Market Listing Requirements and Hong Kong listing requirements as well as the MCCG

10. Reviewed and recommended the amendments made in Independent Director Tenure Policy to limit the INEDs’ tenure to nine (9) years, in line with the step up practice of MCCG

Board and Senior Management Remuneration

11. Reviewed fees and benefit payable to Directors, benchmarked with industry practice

12. Reviewed remuneration package of Executive Directors, Non-Executive Directors, Key Senior Management and related employees

Board Effectiveness Evaluation

13. Reviewed the Board Effectiveness Evaluation questionnaires

14. Reviewed outcome of the annual Board’s and Board Committees’ performance assessments, independency of INEDs, contribution and performance of each individual director

15. Reviewed Board skills matrix and level of competency to meet the current and future needs of the organisation

Others 16. Reviewed outcome of annual Employee’s Engagement and Job Satisfaction Survey

17. Reviewed the Group’s organisation chart18. Deliberated on medical insurance coverage for

Directors19. Reviewed consultant service agreement prior to

engagement

Looking Ahead


BNRC Effectiveness Review and Performance

During the year under review, the Board assessed the performance of the BNRC through the annual Board Effectiveness Evaluation. The Board is satisfied that the BNRC has effectively discharged its functions, duties and responsibilities in accordance with the BNRC TOR.

Continue to reveal gaps in Board composition and the solutions to fill the gaps

Continue to develop appropriate training solution for the Directors to ensure they have the competencies in carry out their duties

Formulate talent pool of Director by building a database of potential candidates collated from various independent sources

Review the compensation package of Directors and Senior Management align with prevalent market practices to ensure that it remains competitive to attract and retain talent

Remain focus on succession planning of the Directors and Key Senior Management

Monitor follow up actions subsequent to the BEE findings

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The Board Sustainability Committee (“BSC”) of Top Glove is pleased to present the BSC Report for FY2021.

The Board Sustainability Committee (“BSC”) of Top Glove is pleased to present the BSC Report for FY2021.

The Board recognised the importance of adopting a sound business model which incorporating environmental, social and governance (“ESG”) considerations. BSC has been formed since March 2019 to provide advice and assistance to the Board in integrating long term thinking into day-to-day business decisions and to steer ESG strategy into a competitive advantage for the business to create long term values to our stakeholders. The Board is committed to contribute the UN Sustainable Development Goals (UN SDGs) via implementation of ESG strategies and initiatives.

Sustainability encompasses how Top Glove conducts its businesses, now and in the future, including the pursuit of ensuring employees’ workplace health and safety, respecting to human rights, a commitment to the community and social responsibility, minimising the Company’s impact on the environment, complying with highest standards of corporate governance and maintaining Top Glove’s reputation as one of Malaysia’s leading companies.

Composition & Structure

The governance of sustainability is integrated in our corporate governance structures throughout the Group, from board-level committees to management-level group functions and business units. In supporting the BSC, the Sustainability Steering Group and the Social Sustainability Committee have the strategic and operational responsibility to assess and manage sustainability issues.

The BSC comprises four (4) members as follows, all of whom are Non-Executive Directors:


as BSC MemberTenure on the BSC

as at 31 August 2021

1. Sharmila Sekarajasekaran (Chairman) 22 March 2019 2 Years 5 Months

2. Puan Sri Tong Siew Bee 22 March 2019 2 Years 5 Months

3. Datuk Noripah Kamso 22 March 2019 2 Years 5 Months

4. Azrina Arshad 22 March 2019 2 Years 5 Months

Note : Dato’ Lim Han Boon had stepped down as BSC member effective 1 December 2020 subsequent to the Board Committees composition restructuring exercise.

BOARD SUSTAINABILITY COMMITTEE REPORT


In FY2021, the BSC had met five (5) times. The Company Secretary is in attendance in every meeting while the Executive Director, Senior Management, Manager of Sustainability Department and other Board members will attend the BSC meetings upon invitation, as and when necessary.

The minutes of each BSC meeting was duly noted by the Board via distribution to each Board member and the Chairman of the BSC highlights on key issues discussed during the BSC meeting.


BSC play a role as champions of sustainability within the Company in driving the Group’s sustainability strategy and initiatives and overseeing the implementation of the Sustainability Charter adopted by the Board, guided by the TOR of BSC.

Key responsibilities of BSC are as follows:

Review sustainability strategy, blueprint and roadmaps and oversee implementation of strategy plans by the Management

Review adoption, compliance and effectiveness of all sustainability-related policies/standards

Review periodic reports from Sustainability Steering Group and Sustainability Statement/ Report before publishing

Monitor the Sustainability Key Performance Indicators of the Group

The Sustainability Charter and TOR of the BSC is available for reference on the Company’s website at https://www.topglove.com/governance-manual/


Key Areas of Focus during FY2021:


1. Reviewed adoption of Sustainability Charter

2. Reviewed and deliberated on Bursa Malaysia Sustainability Disclosure Review 2020

Sustainability Plan

3. Discussed the long term and short term sustainability target and sustainability goals covering ESG pillars

4. Reviewed Sustainability Plan for FY2021

5. Reviewed and developed ESG roadmap and milestones

6. Reviewed the Year of ESG initiatives & progress

Sustainability Oversight

7. Reviewed and deliberated on Materiality Assessment

8. Reviewed report from the Sustainability Steering Committee on the sustainability initiatives undertaken by the Group covering ESG pillars

Annual Reporting

9. Reviewed the Sustainability Statement for inclusion in the Integrated Annual Report

10. Reviewed ESG reporting guide under Hong Kong listing requirement

Others 11. Reviewed collaboration opportunity with third party in enhancing the Group’s sustainability practices

12. Reviewed UN Sustainable Development Goals (UN SDG) mapping with the Company’s sustainability initiatives

13. Reviewed ESG gap analysis between the Company’s sustainability practices and international ESG best practices with the aim to improve the Company’s ESG ranking

14. Reviewed the industrial rating of the Group’s sustainability performance and discussed the areas for improvement

15. Deliberated on the ESG campaign to educate and raise awareness amongst the stakeholders

16. Reviewed the Group’s remuneration pay link to ESG metrics

Looking Ahead

BSC will continue its role in supporting the Board and overseeing the development, implementation, measurement and reporting of the Group’s ESG performance. In addition, BSC will strengthen its role and place a stronger emphasis on overseeing the impact of the Group’s long-term strategy on emerging sustainability issues. This will ultimately support the Group’s objective to operate on a sustainable basis for the benefit of current and future generations.


BSC Effectiveness Review and Performance

During the year under review, the Board assessed the performance of the BSC through the annual Board Effectiveness Evaluation. The Board is satisfied that the BSC has effectively discharged its functions, duties and responsibilities in accordance with the BSC TOR.

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Refer to page 144 and 145 for the attendance record of BSC members.

Prioritisation in identified material matters

Monitor ESG progress and strategies

Monitor ESG compliance with international best practices

Proactive stakeholders engagement on continuous basis to effectively manage material sustainability matters

Enhance sustainability awareness to cover wider value chain

Ongoing enhancement of sustainability reporting and to get third party verification / audit on ESG disclosure

Establish ESG related risk assessment

Improvement in sustainability rating and ranking

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INDEPENDENT DIRECTOR COMMITTEE REPORT

The Independent Director Committee (“IDC”) of Top Glove is pleased to present the IDC Report for FY2021.

IDC was established to provide an avenue for all Independent Directors to have a session amongst themselves to deliberate matters in relation to the Company’s business strategy and operations without the presence of Executive Directors with the objective to enhance Shareholders’ value by providing independent view and recommendation to the Board and Management.

Composition

The IDC members comprises all the seven (7) Independent Non-Executive Directors of the Company as follows, led by the Senior Independent Non-Executive Director:

Members Meeting attendance

1. Dato’ Lim Han Boon (Chairman) 5/5 (100%)

2. Tan Sri Rainer Althoff 5/5 (100%)

3. Datuk Noripah Kamso 5/5 (100%)

4. Datuk Dr. Norma Mansor 5/5 (100%)

5. Sharmila Sekarajasekaran 5/5 (100%)

6. Azrina Arshad 5/5 (100%)

7. Lim Andy 5/5 (100%)


In FY2021, the IDC met five (5) times without the presence of Executive Directors and/or the Management except that when Executive Directors and/or the Management’s presence is required to response to questions from the IDC. The Company Secretary is in attendance in every IDC meeting.

Total hours for IDC meeting FY2021:



The IDC had met periodically with/without the presence of Executive Directors and/or the Management during FY2021. Concerns raised at the IDC meeting and recommendations of the IDC were put forth to the Board for deliberation and endorsement.

In FY2021, IDC met five (5) times to deliberate among others, the following matters:


Key responsibilities of IDC are as follows:

Discharge their fiduciary duties in protecting the interest of the minority shareholders

Assess the quality and timeliness of information flow between the Management and the Board

Deliberate on the effectiveness and efficiency of the Company’s business strategy and operations

Deliberate other issues that may involve the Management or the Executive Directors and which is likely to have an impact on the reputation of the Company

In addition, the IDC actively engage with the Management on all sustainability matters, with special focus on social compliance, covering amongst others, employees’ safety, grievance mechanism and compliance with labor/human rights. IDC visited the workers hostels and initiate quarterly engagement sessions with the Company’s migrant workers with the presence of the Management to ensure that proper actions were carried out by the Management to safeguard the wellbeing of the workers particularly in curbing the COVID cases within the organisation.

Sustainability roadmap including ESG compliance

Digital transformation roadmap

Organisation strategic direction, roadmap and blueprint

Labour issues and social compliance

Whistleblower treatment

Share buy back strategies

Dividend policy

Shareholder activism and Board Governance

Strategic/Crisis communication and management

Proposed listing in the Hong Kong Stock Exchange

Succession planning for Board and Key Management Personnel

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BOARD AUDIT COMMITTEE REPORT

PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT

The Board Audit Committee (“BAC”) of Top Glove is pleased to present the BAC Report for FY2021.


The BAC comprises four (4) members as follows, all of whom are Independent Non-Executive Directors, which is in line with the Bursa Malaysia Securities Berhad (“Bursa Securities”) Main Market Listing Requirements (“Main LR”) and the Malaysian Code on Corporate Governance:


as BAC MemberTenure on the BAC


1. Dato’ Lim Han Boon (Chairman) 21 February 2011 10 Years 6 Months

2. Datuk Noripah Kamso 18 March 2015 6 Years 5 Months

3. Sharmila Sekarajasekaran 15 October 2015 5 Years 10 Months

4. Azrina Arshad 8 January 2019 2 Years 7 Months


In FY2021, the BAC had met nine (9) times, two (2) of which were meetings with the External Auditors, without the Executive Directors’ and Management’s presence and one (1) of which was a meeting with the Head of Internal Audit, without the Executive Directors’ and Management’s presence.

The Company Secretary is in attendance in every meeting while the Executive Director, Head of Internal Audit, Senior Management, External Auditors and other Board members will attend the BAC meetings upon invitation, as and when necessary. During FY2021, the BAC had constantly engaged with the External Auditors and the Head of Internal Audit to keep abreast with the key audit issues and audit concerns affecting the Company.

The minutes of each BAC meeting was duly noted by the Board via distribution to each Board member and the Chairman of the BAC highlights on key issues discussed during the BAC meeting.


BAC had been entrusted by the Board to execute its governance and oversight responsibilities in ensuring transparent financial reporting within the Group, guided by the BAC’s TOR. BAC are assisted by in-house Internal Audit Department in the effective discharge of their responsibilities in establishing cost-effective controls, adhering to the Internal Audit Charter adopted by the BAC.

BAC deliberates the Summary of Internal Audit Reports and the external auditors’ reports relating to financial, operational, governance, risk management and control matters every quarter during BAC meeting. The status of preventive and corrective actions for issues discussed are updated to the BAC to ensure that the actions are being monitored.

The system of internal control therefore provides only reasonable, not absolute, assurance against material misstatement or loss. The system of internal control does, however, provide reasonable assurance that potential issues can be identified promptly and appropriate remedial action taken.

Refer to pages 144 and 145 for the attendance record of BAC members.


The Board has not identified, nor been advised of, any failures or weaknesses which it has determined to be significant. Therefore, a confirmation of necessary actions has not been considered appropriate.

Key responsibilities of BAC are as follows:

Effective oversight of the Financial Reporting process of the Group to ensure compliance with the applicable financial reporting standard

Review the effectiveness of Internal and External Audit Functions and Internal Control System

Review the Corporate Governance compliance and practices across the organisation to ensure its robustness

The TOR of the BAC and Internal Audit Charter are available for reference on the Company’s website at https://www.topglove.com/governance-manual/


Financial Reporting

1. Reviewed all the four (4) Quarter’s Financial Statements and the annual Audited Financial Statements of the Company and recommended the Financial Statements for the Board’s approval. Discussions focused particularly on any change in the accounting policies and its implementation; significant and unusual events arising from the audit; the going concern assumption; compliance with accounting standards and other legal requirements; significant matters highlighted in the financial statements; and significant judgements made by Management.

2. Reported its findings on the financial and Management’s performance and other material matters to the Board.

3. Deliberated the emerging financial reporting issues pursuant to the introduction of new accounting standards and additional statutory/regulatory disclosure requirements.

Internal Audit 4. Reviewed the Internal Audit Plan proposed by the Head of Internal Audit to ensure the adequacy of the scope, and that it has the necessary authority to carry out its works.

5. Reviewed salient audit issues together with recommendations from the Internal Audit. BAC considered the highlighted issues, taking into account Management’s responses, upon which approved the internal auditors’ proposal for rectification and implementation of the agreed remedial actions for improvement.

6. Reviewed the adequacy and competency of the Internal Audit resources required to carry out Internal Audit engagement works.

7. Undertook the performance assessment of the Internal Audit Function, reviewed the effectiveness of its audit processes and assessed the performance of the overall Internal Audit Department (“IAD”).

8. Held separate meeting with the Head of Internal Audit to discuss the results of the assessment and other areas of concern, without the presence of the Executive Directors and Management.

External Audit 9. Discussed with the External Auditors, before the audit commences, the audit plan, nature and scope of the audit, emphasised areas of audit and ensured co-ordination where more than one (1) audit firms are involved as well as the External Auditors’ evaluation of the system of internal controls and audit reports.

10. Discussed and deliberated the External Auditors’ reports and recommendations regarding opportunities for improvement of the significant risk areas, internal controls and financial matters areas based on observations made in the course of interim and final audits.

11. Held two (2) private meetings with the External Auditors without the presence of the Executive Directors and Management to discuss the areas of audit concern.

12. Discussed the results of the annual assessment on the suitability and the independence of the External Auditors pursuant to the Company’s External Auditors’ Assessment Policy.

13. Reviewed the performance of the External Auditors and recommended its re-appointment and remuneration to the Board.

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Related Party Transactions

14. Reviewed and recommended on a quarterly basis, the related party transactions presented by Management to the Board for approval, to ensure that these transactions are undertaken in the Company’s best interests and not detrimental to the minority shareholders’ interests and are done under fair and reasonable grounds and normal commercial terms.

15. Monitored the thresholds of the related party transactions and recurrent related party transactions to ensure compliance with Bursa Securities Main LR.

Annual Reporting

16. Reviewed the Integrated Annual Report, covering the Value Creation Report, BAC Report, Statement on Risk Management and Internal Control and Corporate Governance Overview Statement and Report to ensure adherence to legal and regulatory reporting requirements and appropriate resolution of all accounting matters requiring significant judgement, followed by recommendation for the Board’s approval.

Others 17. Reviewed the Group’s cash flow budget.18. Reviewed Business Units Performance and capital expenditures.19. Reviewed the Share Buy Back policy and procedures and recommended for Board’s adoption.20. Verified the share buy-back activities of the Company.21. Verified and ensure the allocation of Employees’ Share Option Scheme (“ESOS”) and Employees

Share Grant Plan (“ESGP”) complied with the criteria as stipulated in the By-Laws of ESOS and ESGP of the Company respectively.

22. Verified the share issuance arising from conversion of Convertible Bond.23. Reviewed the Whistleblowing Policy and Procedures and cases of the Group.24. Deliberated on Transfer Pricing policy and procedures.25. Reviewed and deliberated the corporate governance compliance of the Company and areas

for improvement.26. Reviewed Social Audit Compliance of the Group and the implementation of mitigation plans.27. Reviewed revision made to the BAC’s Terms of Reference, Related Party Transaction Policy,

Donation policy and External Auditors Assessment Policy and recommended the revised version for the Board’s approval.

28. Reviewed Securities Dealing Policy and Policy on Prevention of Insider Dealing and Market Misconduct and recommended for Board’s adoption.

29. Reviewed Management updates on Withhold Release Order imposed by the U.S. Customs and Border Protection.

30. Reviewed proposal on proposed dual primary listing in the Stock Exchange of Hong Kong Limited.

31. Reviewed the guidelines on Conduct of Directors of Listed Corporations and its Subsidiaries issued by Securities Commission Malaysia and its implication to the Group.

32. Reviewed the updated Malaysian Code on Corporate Governance 2021 issued by Securities Commission Malaysia and the gap analysis.

33. Reviewed the Group’s compliance with 11 International Labour Organization’s Forced Labour Indicators for Direct Operations.

34. Reviewed the Group’s compliance with ACT 446 of Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990.


Strengthen BAC’s skills and knowledge to effectively discharge their responsibility

Enhance forecasting and disclosure on potential COVID impacts to the organisation

Monitor the compliance of Section 17A of Malaysian Anti-Corruption Commission Amendment Act 2018 and Adequate Procedures implementation

Monitor the corporate governance compliance and practices to align with MCCG 2021 and policies and procedures adopted by the Board

Review adequacy and competencies of audit resources coupled with deploying technology in audit process in ensuring effectiveness of Internal Audit function

Review initiatives by IT on cybersecurity and IT system to strengthen control process

Address short term and long term liquidity and funding risk

Professional Development programmes

During FY2021, all the BAC members have attended various seminars, professional development programmes and conferences. The list of programmes attended is disclosed in the Corporate Governance Report on page 13 to 17 which is available for reference on the Company’s website at https://www.topglove.com/governance-manual/

Internal Audit Function

The Internal Audit Department (“IAD”) comprises ten (10) members, led by Mr. Lim Lung Fui @ Jack, a member of the Malaysian Institute of Accountants who has over twenty (20) years of experience in operational and financial audit. IAD reports directly to the BAC and is guided by its Internal Audit Charter and Terms of Reference.

The principal objective of the IAD is to undertake regular reviews of the systems of controls, procedures and operations so as to provide reasonable assurance that the internal control system is sound, adequate and satisfactory. The function of the IAD is to provide the BAC with independent and objective reports on the state of internal controls of the operating units within the Group and the extent of compliance by such units with the Group’s established policies and procedures and the regulatory requirements of the relevant authorities. The BAC reviews and approves the Internal Audit plan of the Group submitted by the Head of Internal Audit.

During FY2021, the areas audited included audits of the various departments covering factories and subsidiaries within the Group. Summary of Internal Audit reports were issued to the BAC quarterly and tabled in the BAC meetings. The reports were also issued to the respective operations management, incorporating audit recommendations and Management’s responses with regards to any audit finding on the weaknesses in the systems and controls of the operations after completion of audit. The IAD conducted a follow-up audit to ensure the agreed audit recommendations were implemented appropriately.

All members of the IAD continues to develop their competencies through attending training programmes conducted by professional certification body or from In house, sharing of knowledge via transfer of learning (TOL) programme to keep abreast with developments in the profession, relevant industry and regulations to effectively perform their roles. Each of IAD members is required to achieve at least 45 training hours during FY2021.

The total cost incurred for the in-house Internal Audit Function for FY2021 was RM1,823,469 (FY2020: RM1,325,794).

Looking Ahead

BAC will continue its role in supporting the Board in its governance and oversight responsibilities in ensuring the effectiveness of the financial reporting, Internal and External Audit Function.


BAC Effectiveness Review and Performance

The performance and effectiveness of the BAC is assessed annually with the BAC assessing the Committee as a whole. The BNRC will then review the evaluation results. During FY2021, the Board is satisfied that the BAC and its members have been able to discharge their functions, duties and responsibilities in accordance with the TOR of the BAC.

Besides, BAC also evaluated the effectiveness of Internal Audit function and the External Auditors performance and their independence. Based on the assessment, the Board is satisfied with the overall performance of the Internal Audit function and External Auditors and their independence.

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BOARD RISK COMMITTEE REPORT

The Board Risk Committee (“BRC”) of Top Glove is pleased to present the BRC Report for the FY2021.

As the global economy continues to change coupled with increasingly uncertain environment, the Board took cognisant that it is important to adapt and evolve faster than ever to stay relevant and successful, particularly in risk management. The Board delegated the risk oversight responsibility to the BRC. The Board through the BRC monitors and regularly reviews the effectiveness of the Group’s risk management and internal control systems, including controls related to the material financial, operational, reputational, cyber security, sustainability and regulatory compliance performance.


The BRC comprises four (4) members as follows, all of whom are Independent Non-Executive Directors, which is in line with the Bursa Malaysia Securities Berhad (“Bursa Securities”) Main Market Listing Requirements (“Main LR”) and the Malaysian Code on Corporate Governance:


as BRC MemberTenure on the BRC


1. Datuk Noripah Kamso (Chairman) 8 January 2019 2 Years 7 Months

2. Dato’ Lim Han Boon 11 May 2013 8 Years 3 Months

3. Tan Sri Rainer Althoff 11 May 2013 8 Years 3 Months

4. Datuk Dr. Norma Mansor 12 May 2017 4 Years 3 Months

Note : Dato’ Lee Kim Meow and Mr Lim Cheong Guan had stepped down as BRC member effective 1 December 2020 subsequent to the Board Committees composition restructuring exercise.


Key responsibilities of BRC are as follows:

Oversight the establishment and implementation of ERM framework and ensure its robustness

Review, monitor and assess the risk portfolio and risk exposures for the Group

Review and evaluate risk mitigation measures undertaken by Management

Risk assessment on major investment or high impact business matters

The TOR of the BRC is available for reference on the Company’s website at https://www.topglove.com/governance-manual/



1. Revisited the ERM Framework and BRC’s Terms of Reference to strengthen ERM processes

2. Reviewed adoption of Business Continuity Management policy and framework to elevate the Group’s resilience and governance level

3. Reviewed adoption of Global Regulatory Risk framework

4. Reviewed adoption of Share Buy Back policy and procedures from risk perspective

5. Reviewed Bond Investment guideline

Risk Monitoring

6. Ongoing Risk Matrix and Risk Register review to identify, evaluate, monitor, manage and mitigate major risks

7. Assessed emerging risk and mitigation plans covering among others, the ESG risk and reputational risk

8. Assessed risks associated with the Group’s overseas operations

Appraise New Business Ventures & Corporate Proposal

9. Risk assessment of new business ventures and major projects undertaken

10. Risk assessment on Proposed dual primary listing in the Stock Exchange of Hong Kong Limited

Others 11. Recommended and deliberated on the appointment of Chief Compliance Officer to take charge of global regulatory compliance for the seven jurisdictions where the Group operated to strengthen the Corporate Compliance programme groupwide

12. Recommended the establishment of Blockage Management Taskforce as a long-term solution to prevent and address the systemic risk

13. Reviewed Management’s action plans in the upliftment of Withhold Release Order imposed by US Custom Border and Protection

14. Reviewed Management’s action plans in dealing with activists’ allegations

15. Assessed the social audit compliance initiative undertaken by the Group in safeguard human rights


In FY2021, the BRC had met eight (8) times. The Company Secretary is in attendance in every meeting while the Executive Director, Head of Internal Audit, Head of Risk Management, Senior Management and other Board members will attend the BRC meetings upon invitation, as and when necessary.

The minutes of each BRC meeting was duly noted by the Board via distribution to each Board member and the Chairman of the BRC highlights on key issues discussed during the BRC meeting.


During the financial year under review, the Board Investment Committee had been dissolved with effect from 1 December 2020 and its function had been incorporated into the BRC. The Terms of Reference of BRC had been amended to reflect the additional function.

An Enterprise Risk Management (“ERM”) Framework has been developed for all business processes by Risk Management Department and approved by the BRC. The ERM Framework ensures that a structured risk management process is adopted across the Group which incorporates key process relating to the identification, assessment, mitigation, monitoring and reporting of the Group’s risks and controls.

BRC is assisted by in-house Risk Management Department and Risk Management Committee in the effective discharge of their responsibilities in assessing risks, recommending measures to mitigate those risks and assuring proper control and governance process.

The Risk Management Department presents the Risk Management Report to the BRC every quarter to provide an overview of the Group’s significant risks and action plans to mitigate the risks. The BRC provides its views which are then communicated to the respective risk owners. The significant risks are then escalated to the Board upon deliberation by BRC.

Looking Ahead

BRC will continue its role in supporting the Board in its risk oversight responsibilities in ensuring the robustness of the ERM framework.


BRC Effectiveness Review and Performance

During the year under review, the Board assessed the performance of the BRC through the annual Board Effectiveness Evaluation. During FY2021, the Board is satisfied that the BRC and its members have been able to discharge their functions, duties and responsibilities in accordance with the TOR of the BRC.

To conduct systematic periodic review of the risk mapping of potential issues

Integrate risk management into the day-to-day decision making process across all business operations and business strategy

Linked risk management to performance and reward through Key Performance Indicator Index to reflect stronger compliance accountability for all staff

Instil risk awareness across the Group through more education programmes such as technical risk assessment workshops to enhance the skills and capabilities of the BRC members as well as the compliance talent pools

Formalise Risk Management Blueprint

Strengthen Business Continuity Management

1

2

3

4

5

6

Refer to page 144 and 145 for the attendance record of BRC members.

164 165




PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS

As a Group, we are more conscious than ever of the importance of stakeholder engagement and believe that effective communication and proactive engagement with stakeholders is paramount in establishing a mutual understanding of both the Group’s and stakeholders’ objectives. We understand the value of long-term thinking and believe that effective stakeholder engagement is critical to fostering mutually beneficial relationships and securing our long-term success.

While the majority of engagement with stakeholders is undertaken by our experienced and dedicated Management teams, the Board is kept continually apprised of stakeholder matters. The directors are also ready whenever required to engage directly with stakeholders, as demonstrated by the directors’ participation in employee forums. The Board receives regular updates from the Executive Directors and senior management on insights and feedback from stakeholders which allows the directors to understand and consider the perspectives of key stakeholders in decision making. It also allows the Board to oversee and monitor effectively the work being done within the stakeholder environment and affords the directors the opportunity to appraise and challenge, where appropriate, the work being done by Management and any associated decisions. The Board is cognizant of the fact that the relevance of each stakeholder group may change depending on the matters being considered and it therefore seeks to understand the needs and priorities of the relevant stakeholders during the decision making process.

Being mindful of the interests of our stakeholders is something which is embedded in Top Glove’s DNA and is inherent in the Group’s decision making processes. Therefore, while decisions are frequently made at an operational level, the directors are confident that due consideration and regard is always given to how the decisions may impact its stakeholders and to the consequences of such decisions in the long term.

HAVING REGULAR AND TRANSPARENT COMMUNICATION WITH STAKEHOLDERS

The Board is fully committed in maintaining a high standard in the dissemination of relevant and material information on the development of the Group to the stakeholders.

The Company has always been providing as much information on a voluntary basis in addition to complying with Bursa Securities Main LR through media releases. The Board is mindful of the legal and regulations governing the release of material and sensitive information so as not to mislead shareholders. Therefore, information that is price-sensitive or any undisclosed material information about the Group is not disclosed to any party until it is ready for simultaneous distribution.

The Board has formalised a Corporate Disclosure Policy to ensure that communications to the public regarding the Group are timely, factual, accurate and complete. The said Policy outlines the central principles and practices in communicating with the investors, shareholders, medias and regulators.

The Company has been using the following formal channels to communicate with shareholders and stakeholders:

1. Integrated Annual Report: https://www.topglove.com/annual-report/2. Website: https://www.topglove.com3. Corporate Announcement: https://www.topglove.com/investor-relations-event4. General Meeting: https://www.topglove.com/investor-relations-event5. Newsroom: https://www.topglove.com/newsroom6. Investor Relations: https://www.topglove.com/ir-overview-en

The Corporate Disclosure Policy is accessible through the Company’s website: https://www.topglove.com/governance-manual/

The details of how the Company has been engaging with its stakeholders can be found on page 57 to 60 of the Corporate Governance Report 2021, which is available on our website at https://www.topglove.com/governance-manual/

Dividend Calendar

1st Interim 2nd Interim 3rd Interim Final

Single Tier First Interim Dividend of 16.5 sen per share

Entitlement date :

28 December 2020

Payment date :

11 January 2021

Total Second Interim Dividend of 25.2 sen per share consists of: (i) Single Tier Second

Interim Dividend of 18.0 sen per share; and

(ii) Special Dividend of 7.2 sen per share.

Entitlement date :

24 March 2021

Payment date :

6 April 2021

Total Third Interim Dividend of 18 sen per share consists of: (i) Single Tier Third Interim

Dividend of 12.7 sen per share; and


Entitlement date :

24 June 2021

Payment date :

7 July 2021

Total Final Dividend of 5.4 sen per share consists of: (i) Single Tier Final

Dividend of 3.8 sen per share; and


Entitlement date :

4 October 2021

Payment date :

15 October 2021

Note : All the Quarterly Results Briefing FY2021 were held virtually on the same date as the financial result release date.

9 Dec 2020 9 Mar 2021 9 Jun 2021 17 Sep 2021 28 Oct 2021 12 Nov 2021

Unaudited consolidated results for the first quarter ended 30 November

2020

Unaudited consolidated

results for the second quarter and

half year ended 28

February 2021

Unaudited consolidated results for the third quarter

ended 31 May 2021

Unaudited consolidated results for the fourth quarter and financial

year ended 31 August 2021

Issuance of Audited Financial

Statements for the financial

year ended 31 August 2021

Issuance of Integrated

Annual Report 2021

IR Contact and Feedback

Investor queries and feedback pertaining to financial performance or developments may be directed to the head of Investor Relations team:

(N) : Mr. Lim Cheong Guan (Executive Director)

(T) : +603 3362 3098(F) : +603 3362 3860(E) : [email protected]

Media Enquiries

Media related enquiries and feedback may be referred to the head of Corporate Communications department:

(N) : Ms. Michelle Voon Wei-Ann(T) : +603 3362 3098(F) : +603 3362 3860(E) : [email protected]

Corporate Matters

Corporate, Announcement and General Meetings related queries and feedback may be referred to the head of Corporate Services department:

(N) : Ms. Kassy Lim Keat See (Company Secretary)

(T) : +603 3362 3098(F) : +603 3362 3860(E) : [email protected]

Financial Calendar

166 167



Employees are the backbone of the Group’s business. Their knowledge and experience contribute to the daily operations and ensure Top Glove is able to achieve the Company’s long-term goal.

Our customers in different industries rely on our products to carry out their daily duties. Our market share comprised our customers around the globe.

Customers

Employees

1. Strong relationships with employees

2. Stronger motivation to improve productivity

3. Safer work environment leading to lower incident rate

1. Stronger customer relationships, leading to larger customer base and retention

2. Increased brand relevance globally

3. Renewal of product licenses and business permits

4. Customers’ satisfaction guaranteed

Stakeholder Group Why We Engage? Top 5 Material

Matters ConcernedHow

We Engage? Frequency Our Response To Concerns Value Created


2. Customer Experience3. Infectious Diseases4. Human Rights5. Ethics, Integrity and

Governance

Staff assembly Weekly

Employee satisfaction survey Annually

Performance appraisal review Bi-annually

Recreational activities/empowerment and training opportunities

As neededNewsletters

Corporate events

1. Customer Experience2. Product Quality

and Safety3. Ethics, Integrity and

Governance4. Occupational Health

and Safety5. Supply Chain

Management

Meetings

As neededSocial compliance audits

Customer portal

Business trips

AnnuallyTradeshows

1. Customer Experience



4. Infectious Diseases5. Labour Management

Relations

Analysts’ briefings Quarterly

Annual survey form Annually

General meetingsAnnually and

as needed

Analysts/fund managers/investors meetings

As neededRoadshows and conferences

Social media platform

1. Customer Experience2. Occupational Health

and Safety3. Product Quality and

Safety4. Ethics, Integrity and

Governance5. Infectious Diseases

Audits and site visits Annually

Meetings

As needed

Electronic procurement network

1. Subsidised medical check-up, free yearly blood screening and dental check-up for employees

2. Frequent training on safety for factory employees

3. Social aspects training4. Worker townhalls 5. Safety awareness programmes 6. COVID vaccination for employees7. Improved workers’ accommodation according

to regulations8. Independent audits on labour practices

1. Product inspections prior to delivery to customers

2. Quality testing of random samples from finished products by Quality Assurance team

3. Customer satisfaction survey4. SMETA and BSCI social audits initiated

by customers5. Suppliers certified with FSC certification

How Our Key Stakeholders are Connected

Our Value Chain Suppliers Employees Customers

Government/Regulators

Shareholders/Investors

Local Community

NGOs MediaIndustry Associations


Shareholders and investors invest in the Group’s business and we are obligated to share our financial performance and strategic decisions for future outlook.

Shareholders/Investors

1. Assured and continuous investors’ confidence

2. Transparency in corporate governance reporting and practices

3. Greater product range4. Consistent product quality

and lower production cost

1. Innovation through R&D2. Investment in automation and digitalisation3. Updated corporate website4. Implementation of the Anti-Bribery

Management System5. Adoption of Corporate Disclosure Policy6. COVID vaccination for employees7. Customer satisfaction survey

1. Sustainable supply source process

2. Business reputation and integrity assured

3. Stronger business relationship with suppliers

1. Regular meetings and interactions on issues encountered

2. Supplier audits after meetings and interactions3. Quality testing of random samples from

finished products by Quality Assurance team 4. Customer satisfaction survey5. COVID vaccination for employees6. Updated Business Partners’ Code of Conduct

Suppliers provide the necessary raw materials for our production process. To ensure stable raw material, it is essential to maintain good relations with them.

Suppliers

168 169



Stakeholder Group Why We Engage? How

We Engage? Frequency Our Response To Concerns Value Created


2. Infectious Diseases3. Product Quality and

Safety4. Waste and Effluent5. Environmental

Compliance

Formal meetings As needed

1. Waste and Effluent2. Infectious Diseases3. Environmental

Compliance4. Occupational Health

and Safety5. Human Rights

Formal meetings

As needed

Community support programmes



Safety4. Human Rights5. Occupational Health

and Safety

Formal/casual meetings

As needed

Campaigns


Safety3. Environmental

Compliance4. Water Management5. Human Rights

Quarterly financial results’ briefings

Quarterly

Interviews

As needed

Media inquiries

1. Human Rights2. Product Safety

and Quality3. Ethics, Integrity

and Governance4. Labour Management

Relations5. Environmental

Compliance

Management/Board meetings As needed

1. Stronger relationship with the local community

2. Safer and cleaner living environment for the local community

1. Renewal of product licenses and business permits

2. Product quality and employees’ safety assured

3. Business reputation and integrity assured

4. Compliance with governmental regulations

We are just a small part of a larger community. Given that there could be adverse impacts, we are obligated to mitigate them as we rely on the community’s goodwill to continue our operations.

Local Community

1. Disposal of schedule waste according to DOE’s standards

2. Monitoring of direct and indirect emissions3. Effluent discharge monitoring4. COVID vaccination for factory employees5. Independent audits on labour practices 6. TGGD Clinic open to local community


2. COVID vaccination for employees3. Frequent training on safety for factory

employees4. Safety awareness programmes 5. Disposal of schedule waste according to

Department of Environment’s (DOE) standards6. Factories certification with Environmental

Management System ISO14001

Governmental bodies introduce laws and policies that could impact our business locally and globally. To maintain the legality of our business, it is essential to comply with their regulations.

Government/Regulators


Top 5 Material Matters Concerned

1. Positive relationship with NGOs

2. Improved company’s image among the public

1. Increased brand relevance and reputation

2. Transparency in information reporting to all relevant parties

1. Continuous support from industrial peers

2. Informational updates about the industry to keep track

3. Stronger relationships with our peers

4. Industrial peers assured of business integrity and sustainability


2. Implementation of the Anti-Bribery Management System

3. Independent audits on labour practices4. COVID vaccination for employees

1. COVID vaccination for employees2. Quality testing of random samples from finished

products by Quality Assurance team 3. Monitoring of direct and indirect emissions4. Environmental awareness programmes for all employees5. Implementation of a Solar Power System to reduce

emissions6. Independent audits on labour practices

1. Innovation through R&D2. Investment in automation and digitalisation3. Implementation of Zero Cost Recruitment Policy4. Whistleblowing Policy5. Independent audits on labour practices6. Factories certification with Environmental

Management System ISO14001

NGOs provide valuable inputs with respect to our social and environmental efforts. They also bridge the distance between other stakeholders.

The media has great influence over the public perception of the Group. The Group’s reputation partially relies on the positive or negative media reporting that may lead to a reputation boost or damage.

Different associations bring different market insights and feedback that could be beneficial to the Group’s long-term growth. Effective engagement & collaboration with industry associations could create positive impacts to the environment & stakeholders.

Non-Government

Organisations (NGOs)

Media

Industry Associations

170 171



Other Compliance Information:

1. Utilisation of Proceeds

There were no funds raised by the Company through any corporate proposal during FY2021.

2. Audit & Non-Audit Fees

Details of statutory audit, audit-related and non-audit fees paid/payable in the FY2021 to Ernst & Young PLT and its affiliates are as follows:

Type of FeesTop Glove

(RM)Top Glove Group

(RM)

a) Audit fees

• Messrs. Ernst & Young PLT, Malaysia 80,000 622,000

b) Non-Audit fees *

• Messrs. Ernst & Young PLT, Malaysia 1,874,000 1,874,000

• Member firm of Ernst & Young Global Limited 611,000 611,000

Total: 2,565,000 3,107,000

* The significant portion of the Non-Audit fees was pursuant to the appointment of Messrs. Ernst & Young PLT as the reporting accountants to report on the financial information of Top Glove Group in connection with the Company’s proposed listing on the Main Board of the Stock Exchange of Hong Kong Limited.

3. Recurrent Related Party Transactions

During FY2021, there were no recurrent related party transactions of a revenue or trading nature involving the Directors and/or substantial shareholders of the Company.

4. Material Contracts

During FY2021, there were no material contracts entered into by the Company and its subsidiaries involving the interests of Directors, Chief Executive and/or major shareholders.

5. Material Contracts Relating to Loans

During FY2021, there were no material contracts relating to loans entered into by the Company and its subsidiaries involving the interests of Directors, Chief Executive and/or major shareholders.

6. Insider Trading

During FY2021, there was no insider trading reported.

7. Employees’ Share Option Scheme (“ESOS”)

The details of the ESOS for FY2021 are as follows:

Total number of ESOS options granted 83,545,900

Percentage of ESOS option granted to the Directors and senior management

15.42% of the total ESOS option granted

Total number of ESOS options exercised 28,968,800

Total ESOS options outstanding as at 31 August 2021 90,391,300

Other than the above, there were no issuance of convertible securities during FY2021. The number of ESOS option granted and exercised by the Directors as well as their ESOS options outstanding are disclosed on page 181 of this Integrated Annual Report.

The details of the issued and paid-up share capital of the Company as at 31 August 2021 are as follows:

No. of Shares RM

As at 1 September 2020 2,708,825,249 1,675,704,221.90

Ordinary shares issued pursuant to the ESOS 28,968,800 58,060,533.00

Ordinary shares issued pursuant to conversion of exchangeable bond 50,351,869 104,386,896.70

Ordinary shares issued pursuant to Bonus Issue 5,418,718,116 -

ESOS Compensation reserve - 4,002,500.00

ESOS Cost - (500,585.37)

As at 31 August 2021 8,206,864,034 1,841,653,566.23

8. Employees Share Grant Plan (“ESGP”)

The Company had established the ESGP of up to ten per centum (10%) of the issued and paid-up share capital of the Company (excluding treasury shares) for the eligible employees and Executive Directors of the Company and its subsidiaries for a duration of ten (10) years from 12 January 2016 to 11 January 2026.

The details of the ESGP for FY2021 are as follows:

Total number of shares awarded under ESGP 2,238,700

Percentage of shares awarded to Director under ESGP 0.0002%

Percentage of shares awarded to the Directorsand senior management under ESGP

6.62% of the total shares awarded


172 173



STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL


BOARD RESPONSIBILITY

The Board is committed to establishing and maintaining a sound, effective and efficient system of enterprise risk management and internal control to safeguard shareholders’ investment and the Group’s asset.

The enterprise risk management and internal control system are designed to identify and manage the Group’s risks in order to achieve the Group’s business objectives. The Board is aware that the enterprise risk management and internal control system can only provide reasonable and not absolute assurance against the risk of material loss or occurrences of unforeseeable circumstances.

RISK MANAGEMENT GOVERNANCE

The Board regards risk management as an integral part of all business operations. Hence, the Board assumes the responsibility of managing major risks and ensures the implementation of a dynamic system to manage risk exposure within the acceptable level of tolerance.

To fulfil its oversight responsibility, the Board, through delegation to the Board Risk Committee (“BRC”), reviews the adequacy and integrity of the Group’s enterprise risk management system which includes the key processes of risk identification, assessment, mitigation, monitoring and reporting.

The members of BRC, comprising four Independent Non-Executive Directors are as follows:

1. Datuk Noripah Kamso (Chairman)2. Tan Sri Rainer Althoff 3. Dato’ Lim Han Boon 4. Datuk Dr. Norma Mansor

In addition, a Risk Management Committee (“RMC”) was formed in May 2013 to facilitate the risk management initiative at the Management level. RMC serves as the driving force behind the day-to-day risk management activities. Its main functions encompass provision of regular feedback on status of risk factors to facilitate informed management

decision making, execution of appropriate risk mitigation measures and progress monitoring thereof, as well as identification of new and emerging risk factors.

RMC is chaired by an Executive Director and comprises heads of business units or support functions, who are risk owners themselves, as members.

Due to the Group’s rapid expansion of its business and manufacturing operations across different regions, a Global Risk Management Structure was established across the regions where the Group operates. The establishment of Risk Working Committees (“RWC”) led by respective Country Head and Joint Manufacturing Council member acts as an accountable point of contact for an enterprise risk at the senior leadership level, who coordinates efforts to mitigate and manage the risk with the person in charge who owns whole or part of the risk to ensure effective full coverage of risk assessment of all business units locally and globally.

ENTERPRISE RISK MANAGEMENT SYSTEM

The Group’s Enterprise Risk Management Framework is set up in accordance with ISO 31000:2018 Risk Management Guideline where risks arising from the business and manufacturing operations are continuously identified. These identified risks are incorporated into the risk register and are assessed to determine if the risk rating is Extreme, High, Medium or Low. The rating process is guided by a matrix of possibility of occurrence and the associated impacts, of which both financial and non-financial consequences are duly considered. Thereafter, owners of these risks will drive the implementation of risk mitigation measures towards achieving a residual risk that is within the acceptable tolerance.

Updates on the progress and adequacy of the mitigation measures are assessed and reported on a quarterly basis. In addition, any identified emerging critical risk factors will be incorporated into the risk register and managed in accordance to the Group’s enterprise risk management methodology. Outcome of the RMC meetings will subsequently be escalated to the BRC for further deliberation.

The Statement on Risk Management and Internal Control is made in accordance with Paragraph 15.26 (b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and guided by the Statement on Risk Management and Internal Control - Guidelines for Directors of Listed Issuers. This Statement outlines the nature and scope of the enterprise risk management and internal control systems within the Group during the year under review.

The BRC will subsequently report the major risks to the Board of Directors to ensure the risk exposures are acceptable and appropriate level of risk mitigation are being implemented. This approach creates a robust enterprise risk management system that is self-sustaining and will continue to evolve in response to changing business environment.

In addition, the Group adopts the Three Lines of Defence model to ensure a structured governance practise. The importance of the Three Lines of Defence model is to ensure clear functional responsibilities and accountabilities for the management of risk, compliance and internal control. This is reflected in the Three Lines of Defence model which were adopted by the Group as depicted below:

TOP GLOVE THREE LINES OF DEFENCE MODEL

Board

Extern

al Au

dit

1st Line of Defence

2nd Line of Defence

3rd Line of Defence

Business Units

Support Departments

Risk Management

Compliance

Sustainability

Internal Audit

Board Risk

Committee

Board Sustainability

Committee

Board Audit

Committee

1st Line of DefenceManage the company’s risks, controls and compliance matters on a daily basis by implementing effective internal controls and procedures.

2nd Line of DefenceFacilitate and monitor the implementation of an effective risk management, compliance and sustainability process.

3rd Line of Defence Provide assurance on governance, compliance, risk management and internal controls effectiveness. This includes the effectiveness of the company’s first and second lines of defence.

Accountability, Reporting Delegation, Direction, Oversight Reporting

174 175





INTERNAL CONTROL GOVERNANCE

The Management team, led by Executive Chairman, Managing Director and Executive Directors, comprises experienced personnel who are subject matter experts in their own specialized fields. The Management team are held accountable for the conduct and performance within their assigned business units and support functions. Internal control principles are strongly advocated and embedded into the various day-to-day operational policies and procedures of the business units and support functions concerned. These assigned business units and support functions will conduct its management meetings at regular interval to monitor its performance, action plan progress and gather further feedback for improvement purposes.

To fulfil its oversight responsibility, the Board Audit Committee (“BAC”) is committed to review the adequacy and effectiveness of the Group’s internal control system. In this respect, the Group’s Internal Audit Department (“IAD”) has been set up in financial year ended 31 August 2003 to undertake the obligation of providing control assurance services to the Group.

The External Auditor provides further assurance to the BAC in the form of annual statutory audit of the financial statements. Areas of concern identified during the course of external audit examination will be brought to the attention of the BAC through management letters and discussion at the BAC Meeting.

INTERNAL AUDIT FUNCTION

The Group has in place an in-house IAD which provides to the Board, through the BAC, independent assessment and assurance on the adequacy and effectiveness of the Group’s system of internal controls.

The work scope of IAD encompasses the examination and evaluation of the adequacy, existence and effectiveness of the system of internal control, risk management and corporate governance of the group, which includes, inter alia, the following:

The audit reports are presented and tabled at quarterly BAC meetings to preserve its independence and objectivity. Significant internal audit findings and status update on outstanding management action plan will be brought to the attention of BAC. If deemed necessary, management representative will be required to attend BAC meeting to provide explanation and propose an action plan on the unresolved issues.

REVIEW OF EFFECTIVENESS

The Board is dedicated to operating a sound system of risk management and internal controls, and recognizes that the system must continuously evolve to support the progressive business growth of the Group.

The process for identifying, evaluating and managing risks as outlined in this Statement has been in place for the year under review and up to the date of approval of this statement. During the financial year ended 31 August 2021, a number of improvements to internal control gaps have been implemented by enhancing the controls towards digitalization such as automating certain manual processes using technologies, implementing electronic workflow process and integrating SAP systems to create good visibility and transparency. There has been no material adverse impact to the financial performance of the Group as a result of the internal control gaps detected.

The Board, with the assurance received from the Managing Director and its Executive Director, concludes that the Group’s risk management and internal control system are operating adequately and effectively, in all material aspects. This Statement does not include the state of internal control in associate companies, which has not been dealt with as part of the Group and is made in accordance with a resolution of the Board of Directors dated 27 October 2021.

REVIEW OF THE STATEMENTS BY EXTERNAL AUDITORS

The External Auditors have performed limited assurance procedures on this Statement on Risk Management and Internal Control pursuant to the scope set out in Audit and Assurance Practice Guide (“AAPG”) 3, Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included in the Integrated Annual Report issued by the Malaysian Institute of Accountants for inclusion in the Integrated Annual Report of the Group for the FY2021, and reported to the Board that nothing has come to their attention that causes them to believe that this Statement included in the Integrated Annual Report is not prepared, in all material respects, in accordance with the disclosures required by Paragraphs 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, nor is the Statement factually inaccurate.

AAPG 3 does not require the External Auditors to consider whether the Directors’ Statement on Risk Management and Internal Control covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Group’s risk management and internal control system including the assessment and opinion by the Directors and Management thereon. The report from External Auditors was made solely for, and directed solely to the Board of Directors in connection with their compliance with the Bursa Malaysia Securities Berhad Main Market Listing Requirements and for no other purposes or parties. The External Auditors do not assume responsibility to any person other than the Board of Directors in respect of any aspect of this Statement.

Reviewing the reliability and integrity of financial and operating information and the means used to identify, measure, classify and report such information;

Evaluating the system established to ensure compliance with policies, plans, procedures, laws, and regulations which could have significant impact on operations;

Examining the means of safeguarding assets and, as appropriate, verifying the existence of such assets;

Assessing the economy and efficiency with which resources are employed;

Appraising operations to ascertain whether results are consistent with established objectives and goals and whether the operations are being carried out as planned;

Reporting significant issues related to the business and operational processes for controlling the activities of the Group together with recommendations for improvements by issuing periodic audit reports summarizing results of audit activities and follow-up reports on a timely basis to BAC and management; and

Assisting in the investigation of significant suspected fraudulent activities and notify the BAC and top Management of the results.

1

2

3

4

5

6

7


OUR PERFORMANCE

FINANCIAL STATEMENTS

DIRECTORS’ RESPONSIBILITY STATEMENTFor the Audited Financial Statements

The Directors are required by the Companies Act 2016 (CA) to prepare the financial statements for each financial year which have been made out in accordance with applicable Malaysian Financial Reporting Standards (MFRSs), the International Financial Reporting Standards (IFRSs), and the requirements of the CA in Malaysia.

The Directors are responsible to ensure that the financial statements give a true and fair view of the state of affairs of the Group and of the Company at the end of the financial year, and of the results and cash flows of the Group and of the Company for the financial year.

In preparing the financial statements, the Directors ensured that the Management has:

• adopted appropriate accounting policies and applied them consistently;

• made judgements and estimates that are reasonable and prudent; and

• prepared the financial statements on a going concern basis.

The Directors are responsible to ensure that the Group and the Company keep accounting records which disclose the financial position of the Group and of the Company with reasonable accuracy, enabling them to ensure that the financial statements comply with the CA.

The Directors are responsible for taking such steps as are reasonably open to them to safeguard the assets of the Group and of the Company, and to detect and prevent fraud and other irregularities.

OUR PERFORMANCE

176 Directors’ Responsibility Statement

177 Directors’ Report

185 Statement by Directors

185 Statutory Declaration

186 Independent Auditors’ Report

190 Statements of Profit or Loss

191 Statements of Comprehensive Income

192 Statements of Financial Position

195 Statements of Changes in Equity

198 Statements of Cash Flows

202 Notes to the Financial Statements

OTHER INFORMATION

291 List of Properties

308 Analysis of Shareholdings

311 Notice of 23rd AGM

317 Administrative Details for 23rd AGM

323 Proxy Form

325 GRI Content Index

331 Independent External Assurance Statement

335 Corporate Song

DIRECTORS’ REPORT

The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 August 2021.

PRINCIPAL ACTIVITIES

The principal activities of the Company are investment holding and provision of management services.

The principal activities and other information of the subsidiaries are described in Note 19 to the financial statements.

There have been no significant changes in the nature of these principal activities during the financial year.

RESULTS

Group RM’000

Company RM’000

Profit net of tax 7,823,992 6,461,350

Profit attributable to:

Owners of the parent 7,710,327 6,461,350

Holders of Perpetual Sukuk 51,350 -

Non-controlling interests 62,315 -

7,823,992 6,461,350

There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial statements.

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature.

DIVIDENDS

The amounts of dividends paid by the Company since 31 August 2020 were as follows:

RM’000

In respect of the financial year ended 31 August 2021:

Third tax exempt interim single tier dividend of 18 sen per share on 8,004,542,000 ordinary shares, declared on 9 June 2021 and paid on 7 July 2021 1,440,559

Second tax exempt interim single tier dividend of 25.2 sen per share on 8,004,018,000 ordinary shares, declared on 9 March 2021 and paid on 6 April 2021 2,017,607

First tax exempt interim single tier dividend of 16.5 sen per share on 8,022,604,000 ordinary shares, declared on 9 December 2020 and paid on 11 January 2021 1,323,582


Final tax exempt single tier dividend of 8.5 sen per share on 8,143,086,000 ordinary shares, declared on 23 September 2020 and paid on 3 November 2020 692,321

5,474,069

Further details on dividends recognised during the financial year are disclosed in Note 46 to the financial statements.

A single tier final dividend in respect of the financial year ended 31 August 2021, of 5.4 sen per share on 8,007,085,000 ordinary shares amounting to RM432,454,000 had been declared on 17 September 2021 and paid on 15 October 2021. The financial statements for the current financial year do not reflect this dividend. Such dividend will be accounted for within equity as an appropriation of retained earnings for the financial year ending 31 August 2022.


OUR PERFORMANCE

DIRECTORS

The names of the directors of the Company in office since the beginning of the financial year to the date of this report are:

Tan Sri Dr Lim Wee Chai*Tan Sri Rainer AlthoffDato’ Lee Kim Meow*Puan Sri Tong Siew Bee*Lim Hooi Sin*Lim Cheong Guan*Dato’ Lim Han BoonDatuk Noripah Binti KamsoSharmila SekarajasekaranDatuk Dr. Norma MansorAzrina Binti ArshadLim Andy

*These directors are also directors of the Company’s subsidiaries.

The names of the directors of the Company’s subsidiaries in office since the beginning of the financial year to the date of this report, not including those directors listed above are:

Dato’ IR Haji Ahmad Bin HassanDr. Navindra A/L Nageswaran Dr. Pongsak KerdvonbunditChoh Ai YingChookiad UsahaGaluh FaradisaHo Chee Meng Edmund Ho Kim Nam Hue Kon FahKoek I LongLam Yat Hing Law Eng LimLee Shin HwaiLeong Chew Mun Lew Sin ChiangLiew Say KeongLim Hwa ChuanLim Jin FengLim Keuw WeiMasato Katayama Ng Yong LinOh Teik ChyePhattaraporn FueangthongPuon Tuck SengRavi A/L SupramaniamSaw Eng KooiSee So Kim HuatSiow Chun MinSvami Utama Batang Taris

DIRECTORS (CONT’D)

The names of the directors of the Company’s subsidiaries in office since the beginning of the financial year to the date of this report, not including those directors listed above are (cont’d):

Tan Chee HoongTan Puay ChooTee Sui LingThomas PetermoellerWilawan SakulsongboonsiriWong Chong BanCheoh Hooi Gaik (Appointed on 22 December 2020)Wu Kin Yeap (Appointed on 24 December 2020)Dato’ Abdul Rahim Bin Abdullah (Appointed on 30 June 2021)Bong Khoon Sheng (Appointed on 30 June 2021)Dato’ Dr. Sharifah Fauziah Alhabshi (Appointed on 22 October 2021)Dato Julie Wong Seng Choo (Appointed on 22 October 2021)Dr. Tang Siew Fun (Appointed on 22 October 2021)Chan Siao Yun (Appointed on 22 October 2021)Chia Hock Yi (Appointed on 22 October 2021)Chong Fei Meng (Appointed on 22 October 2021)Chong Fook Siong (Appointed on 22 October 2021)Lee Sow Theng (Appointed on 22 October 2021)Lim Jew Kiat (Appointed on 22 October 2021)Ling Siew Szen (Appointed on 22 October 2021)Loke Kean Mun (Appointed on 22 October 2021)Ng Seow Wei (Appointed on 22 October 2021)Noraziah Binti Mahmud (Appointed on 22 October 2021)Norhazlin Binti Hamzah (Appointed on 22 October 2021)Ong Ah Chye (Appointed on 22 October 2021)Puah Kean Seng (Appointed on 22 October 2021)Stephanie Thong Pei Ling (Appointed on 22 October 2021)Wee Hiong Ching (Appointed on 22 October 2021)Yap Rueh Yinn (Appointed on 22 October 2021)Ng Wee Chong (Resigned on 1 September 2020)Marcelo Nastromagario (Resigned on 11 September 2020)Tio Thiam Boon (Resigned on 24 December 2020)

DIRECTORS’ BENEFITS

Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate, other than those arising from the share options granted under the employee share options scheme (“ESOS”) and the employee share grant plan (“ESGP”).

Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits included in the aggregate amount of emoluments received or due and receivable by the directors or the fixed salary of a full-time employee of the Company as disclosed in Note 12 to the financial statements) by reason of a contract made by the Company or a related corporation with a director or with a firm of which the director is a member, or with a company in which the director has a substantial financial interest, except as disclosed in the Note 39 to the financial statements.

The Company maintains a liability insurance for the directors and officers of the Group. The total amount of sum insured for the directors and officers of the Group for the financial year amounted to RM10,000,000 whilst the total amount of premium paid was RM52,000. The directors or officers shall not be indemnified by such insurance for any deliberate negligence, fraud, intentional breach of law or breach of trust proven against them.

DIRECTORS’ REPORT (CONT’D)DIRECTORS’ REPORT (CONT’D)


OUR PERFORMANCE

DIRECTORS’ INTERESTS (CONT’D)

According to the register of directors’ shareholdings, the interests of directors in office at the end of the financial year in shares and options over shares in the Company during the financial year were as follows (cont’d):

Number of options over ordinary shares

At 1.9.2020 Adjustment ^ Granted Exercised

At 31.8.2021

Tan Sri Dr Lim Wee Chai - - 3,131,700 - 3,131,700

Puan Sri Tong Siew Bee 123,900 247,800 127,500 371,700 127,500

Dato’ Lee Kim Meow 472,600 945,200 - 1,417,800 -

Lim Hooi Sin - - 600,500 - 600,500

Lim Cheong Guan 253,400 506,800 577,500 760,200 577,500

Tan Sri Dr Lim Wee Chai, Puan Sri Tong Siew Bee and Lim Hooi Sin by virtue of their interest in shares of the Company are also deemed interested in shares of all the subsidiaries to the extent the Company has an interest.

^ The number of options over ordinary shares has been adjusted to reflect the bonus issue of two for every one existing ordinary share which was completed on 7 September 2020. Further details are disclosed in Note 33 to the financial statements.

ISSUE OF SHARES During the financial year, the Company increased its issued and paid-up ordinary share capital from RM1,675,704,000 to RM1,841,654,000 by way of: (i) issuance of 5,418,718,116 ordinary shares through a bonus issue on the basis of two new ordinary shares for every one

existing ordinary share held in the Company, by way of nil consideration;

(ii) issuance of 28,968,800 ordinary shares pursuant to the Company’s ESOS at an exercise price between RM1.54 to RM6.55 per ordinary share; and

(iii) conversion of 50,351,869 units of 5-year Guaranteed Exchangeable Bonds 2019/2024 (equivalent to RM104,387,000 based on a settlement rate of USD1.00:RM4.0703) exchangeable into 533,809 and 49,818,060 new ordinary shares at an adjusted exchange price of RM6.10 and RM2.03 respectively.

The new ordinary shares issued during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company. EMPLOYEE SHARE OPTIONS SCHEME (“ESOS”)

At an Extraordinary General Meeting held on 9 January 2018, shareholders approved the ESOS for the granting of non-transferable options that are settled by physical delivery of the ordinary shares of the Company, to the eligible employees and executive directors respectively of the Company and its subsidiaries.

The committee administering the ESOS comprise two executive directors, Tan Sri Dr Lim Wee Chai and Lim Cheong Guan; four independent non-executive directors Dato’ Lim Han Boon, Datuk Noripah Binti Kamso, Sharmila Sekarajasekaran and Datuk Dr. Norma Mansor and one management staff Lim Jin Feng.

The salient features and other terms of the ESOS are disclosed in Note 38(i) to the financial statements.

During the financial year, the Company granted 83,545,900 share options under ESOS. These options will expire on 31 May 2028 and are exercisable if the employee has not served a notice of resignation or receive a notice of termination from the date of grant and certain conditions as detailed in Note 38(i) to the financial statements are met.

DIRECTORS’ INTERESTS

According to the register of directors’ shareholdings, the interests of directors in office at the end of the financial year in shares and options over shares in the Company during the financial year were as follows:

Number of ordinary shares

At 1.9.2020

Adjustment # Acquired Sold

At 31.8.2021

Tan Sri Dr Lim Wee Chai

- direct 696,521,752 1,393,043,504 66,467,100 - 2,156,032,356

- indirect 235,143,316 470,286,632 472,700 25,711,200 680,191,448

Puan Sri Tong Siew Bee

- direct 7,430,392 14,860,784 371,700 100,000 22,562,876

- indirect 924,234,676 1,848,469,352 66,568,100 25,611,200 2,813,660,928


- direct 882,200 1,764,400 1,435,400 2,300,000 1,782,000

- indirect 40,000 80,000 - - 120,000

Lim Hooi Sin

- direct 41,753,748 83,507,496 - 25,200,000 100,061,244

- indirect 889,740,920 1,779,481,840 66,839,800 100,000 2,735,962,560

Lim Cheong Guan

- direct 312,600 625,200 760,200 1,280,000 418,000

Tan Sri Rainer Althoff

- direct 4,500 9,000 15,000 26,500 2,000


- direct 80,000 160,000 20,000 - 260,000

Sharmila Sekarajasekaran

- direct 10,012,500 20,025,000 - - 30,037,500

- indirect 400,000 800,000 - - 1,200,000

Datuk Dr. Norma Mansor

- indirect 5,300 10,600 17,000 - 32,900

Datuk Noripah Binti Kamso

- direct 5,000 10,000 170,000 - 185,000

Azrina Binti Arshad

- direct - - 10,000 - 10,000

Lim Andy

- direct 2,500 5,000 300,000 - 307,500

# The number of ordinary shares has been adjusted to reflect the bonus issue of two for every one existing ordinary share which was completed on 7 September 2020. Further details are disclosed in Note 33 to the financial statements.



OUR PERFORMANCE

EMPLOYEE SHARE OPTIONS SCHEME (“ESOS”) (CONT’D)

Details of the options exercised to subscribe for ordinary shares of the Company pursuant to the ESOS as at 31 August 2021 are as follows:

Expiry date

Exercise price RM

Number of options

’000

31 May 2028 1.69 3,673.4

31 May 2028 1.63 10,370.5

31 May 2028 1.63 83.3

31 May 2028 1.54 3,040.3

31 May 2028 1.57 6,730.8

31 May 2028 3.30 4,115.0

31 May 2028 4.25 100.7

31 May 2028 6.55 838.8

31 May 2028 3.86 16.0

28,968.8

Details of share options granted to directors are disclosed in the section on Directors’ interests in this report.

EMPLOYEE SHARE GRANT PLAN (“ESGP”)

At an Extraordinary General Meeting held on 6 January 2016, shareholders approved the ESGP for the eligible employees and executive directors of the Company and its subsidiaries.

The committee administering the ESGP comprise two executive directors, Tan Sri Dr Lim Wee Chai and Lim Cheong Guan; four independent non-executive directors Dato’ Lim Han Boon, Datuk Noripah Binti Kamso, Sharmila Sekarajasekaran and Datuk Dr. Norma Mansor and one management staff Lim Jin Feng.

The salient features and other terms of the ESGP are disclosed in Note 38(ii) to the financial statements.

During the financial year, the Company granted 2,238,700 share grants under the ESGP amounting to RM8,641,000 to eligible employees and executive directors.

Details of shares granted to directors are disclosed in the section on Directors’ benefits in this report.

TREASURY SHARES During the financial year: (i) the Company repurchased 200,167,700 ordinary shares from the open market at an average price of RM7.11 per share.

The total consideration paid for the repurchase including transaction costs was RM1,424,095,000.

(ii) the Company transferred 2,238,700 treasury shares to eligible employees under the ESGP at an average market price of RM3.86 per share. The total transferred treasury shares net of transaction costs were RM8,641,000. The difference between the transferred treasury shares and the cost of the treasury shares which amounted to RM3,699,000 was recognised in equity.

As at 31 August 2021, the Company held as treasury shares a total of 199,913,800 of its 8,206,864,000 issued ordinary shares. Such treasury shares are held at a carrying amount of RM1,413,274,000 and further relevant details are disclosed in Note 34 to the financial statements.

OTHER STATUTORY INFORMATION

(a) Before the statements of comprehensive income and statements of financial position of the Group and of the Company were made out, the directors took reasonable steps:

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for expected credit loss and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for expected credit loss; and

(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise.

(b) At the date of this report, the directors are not aware of any circumstances which would render:

(i) the amount written off for bad debts or the amount of the expected credit loss in the financial statements of the Group and of the Company inadequate to any substantial extent; and

(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading.

(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading.

(e) At the date of this report, there does not exist:

(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which secures the liabilities of any other person; or

(ii) any contingent liability of the Group or of the Company which has arisen since the end of the financial year.

(f) In the opinion of the directors:

(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet their obligations when they fall due; and

(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the Company for the financial year in which this report is made.

SIGNIFICANT EVENTS In addition to the significant events disclosed elsewhere in this report, other significant events are disclosed in Note 48 to the financial statements.

SUBSEQUENT EVENT Details of the subsequent event are disclosed in Note 49 to the financial statements.



OUR PERFORMANCE

AUDITORS

The auditors, Ernst & Young PLT, have expressed their willingness to continue in office.

Auditors’ remuneration is as follows:

Group RM’000

Company RM’000

Ernst & Young PLT 622 80

Other auditors 529 -

1,151 80

To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young PLT, as part of the terms of its audit engagement against claims by third parties arising from the audit for an unspecified amount. No payment has been made to indemnify Ernst & Young PLT for the financial year ended 31 August 2021.

Signed on behalf of the Board in accordance with a resolution of the directors dated 27 October 2021.

Dato’ Lee Kim Meow Dato’ Lim Han Boon


STATEMENT BY DIRECTORS

STATUTORY DECLARATION

Pursuant to Section 251(2) of the Companies Act 2016

Pursuant to Section 251(1)(b) of the Companies Act 2016

We, Dato’ Lee Kim Meow and Dato’ Lim Han Boon, being two of the directors of Top Glove Corporation Bhd., do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 190 to 290 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 August 2021 and of their financial performance and cash flows for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 27 October 2021.

I, Dato’ Lee Kim Meow, being the director primarily responsible for the financial management of Top Glove Corporation Bhd., do solemnly and sincerely declare that the accompanying financial statements set out on pages 190 to 290 are to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed, Dato’ Lee Kim Meowat Shah Alam on 27 October 2021.

Before me,

Commissioner for Oaths



DIRECTORS’ REPORT (CONT’D)


OUR PERFORMANCE

INDEPENDENT AUDITORS’ REPORTto the members of Top Glove Corporation Bhd. (Incorporated in Malaysia)

to the members of Top Glove Corporation Bhd. (Incorporated in Malaysia) (cont’d)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Top Glove Corporation Bhd., which comprise the statements of financial position as at 31 August 2021 of the Group and of the Company, and statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 190 to 290.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 August 2021, and of their financial performance and their cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

Basis for opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence and other ethical responsibilities We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current year. We have determined that there are no key audit matters to communicate in our report on the financial statements of the Company. The key audit matters for the audit of the financial statements of the Group are described below. These matters were addressed in the context of our audit of the financial statements of the Group as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis of our audit opinion on the accompanying financial statements.

Review of costing of finished goods inventories(Refer to Note 4.16, 7.2(a) and Note 24 to the financial statements)

As at 31 August 2021, the Group held RM865.2 million of finished goods inventories. This represented 9% of total assets of the Group. Total cost of inventories relating to finished goods charged to the consolidated income statement for the year ended 31 August 2021 amounted to RM5.3 billion, accounting for 81% of total expenditure (comprises of cost of sales, distribution and selling costs and administrative and general expenses) of the Group.

The finished goods inventories are carried at the lower of cost and net realisable value. The costs of production comprises the cost of purchase of raw materials, labour costs, plus conversion costs such as variable and fixed overhead costs. Significant estimates are involved in determining the basis of allocating the costs of production to the products produced by the Group. The Group relies heavily on the information technology system (“IT system”) to ensure that the costs of raw materials, labour costs and overhead costs are correctly allocated to the respective products. Due to the significant estimation involved in the valuation of finished goods inventories, we considered this a key area of audit focus.

Key audit matters (cont’d)

Review of costing of finished goods inventories (cont’d)

Our audit procedures include, amongst others, the following:

a) Obtained an understanding of the Group’s current inventories valuation policy, production processes and the types of costs included in the valuation of finished goods inventories.

b) Evaluated the general and logical access controls surrounding the IT system by involving our IT audit professionals.

c) Assessed the appropriateness of the basis used by management in allocating the costs of production to the products produced by the Group and tested the relevant application controls surrounding the allocation.

d) Agreed, on a sampling basis, the costs of raw materials to suppliers’ invoices.

Annual impairment test of goodwill arising from the acquisition of Aspion Sdn. Bhd. (“Aspion”)(Refer to Note 4.1, 7.2(b) and Note 23 to the financial statements)

As at 31 August 2021, the Group recorded a goodwill of RM934 million arising from the acquisition of Aspion, which represented 9% of the Group’s total assets. The goodwill amount has been allocated to cash generating unit (“CGU”) for impairment testing purposes. The Group estimated the recoverable amount of the CGU to which the goodwill is allocated to based on value-in-use (“VIU”).

Given its magnitude and the significant judgement involved in the impairment assessment, we consider this to be an area of audit focus.

Our audit procedures include, amongst others, the following:

a) Evaluated management’s key assumptions used in the cash flows projection, focusing on projected revenue, profit margins and terminal growth rates, taking into consideration the current and expected future economic conditions. We compared the projected revenue to the past trends and compared expected revenue growth rates to relevant future market demand.

b) Together with EY valuation specialists, we evaluated the discount rate used to determine the present value of the cash flows and assessed whether the rate used reflects the current market assessment of the time value of money and the risk specific to the asset is the return that the investors would require if they were to choose an investment that would generate cash flows of amounts, timing and risk profile equivalent to those that the entity expects to derive from the asset.

c) Assessed the sensitivity of the cash flows to changes in the key assumptions to understand the impact that reasonable alternative assumptions would have on the overall recoverable amount.

d) Evaluated the adequacy of the Group’s disclosures in the financial statements concerning those key assumptions to which the outcome of the impairment assessment is most sensitive.

Information other than the financial statements and auditors’ report thereon

The directors of the Company are responsible for the other information. The other information comprises the information included in the Integrated Annual Report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon.

Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

INDEPENDENT AUDITORS’ REPORT


OUR PERFORMANCE

Responsibilities of the directors for the financial statements

The directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including the disclosures, and whether the financial statements of the Group and of the Company represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

Auditors’ responsibilities for the audit of the financial statements (cont’d)

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the Group and of the Company for the current year and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we have not acted as auditors are disclosed in Note 19 to the financial statements.

OTHER MATTERS

This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young PLT202006000003 (LLP0022760-LCA) & AF 0039Chartered Accountants

Kuala Lumpur, Malaysia27 October 2021

Ng Kim Ling No. 03236/04/2022 J Chartered Accountant

to the members of Top Glove Corporation Bhd. (Incorporated in Malaysia) (cont’d)to the members of Top Glove Corporation Bhd. (Incorporated in Malaysia) (cont’d)INDEPENDENT AUDITORS’ REPORTINDEPENDENT AUDITORS’ REPORT


OUR PERFORMANCE

STATEMENTS OF PROFIT OR LOSS STATEMENTS OF COMPREHENSIVE INCOMEFor the financial year ended 31 August 2021 For the financial year ended 31 August 2021

Note

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Revenue 8 16,361,443 7,237,427 6,493,369 1,636,614

Cost of sales (5,259,336) (4,387,010) - -

Gross profit 11,102,107 2,850,417 6,493,369 1,636,614

Other items of income

Interest income 9 61,575 23,889 24,818 9,741

Other income 10 83,311 33,116 4,475 7

Other items of expense

Distribution and selling costs (253,652) (155,021) - -

Administrative and general expenses (957,985) (551,023) (57,264) (9,016)

Finance costs (4,187) (34,399) (16) (7)

Share of results of an associate 2,644 (1,428) - -

Profit before tax 11 10,033,813 2,165,551 6,465,382 1,637,339

Income tax expense 14 (2,209,821) (376,721) (4,032) (217)

Profit net of tax 7,823,992 1,788,830 6,461,350 1,637,122

Profit attributable to:

Owners of the parent 7,710,327 1,752,584 6,461,350 1,637,122

Holders of Perpetual Sukuk 51,350 25,605 - -

Non-controlling interests 62,315 10,641 - -

7,823,992 1,788,830 6,461,350 1,637,122

Earnings per share attributable to owners of the parent (sen):

Before issuance of bonus shares

- Basic 15 95.91 67.60

- Diluted 15 95.83 67.28

After issuance of bonus shares

- Basic 15 95.91 21.88

- Diluted 15 95.83 21.78

The accompanying accounting policies and explanatory notes form an integral part of the financial statements. The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Profit net of tax 7,823,992 1,788,830 6,461,350 1,637,122

Other comprehensive (loss)/income:

Items that may be reclassified subsequently to profit or loss:

Net movement on debt securities at fair value through other comprehensive income (Note 35) 1,844 (2,084) 144 -

Cash flow hedge (Note 35) 2,690 77,601 - -

Foreign currency translation differences of foreign operations (21,075) (7,521) - -

Other comprehensive (loss)/income for the year, net of tax (16,541) 67,996 144 -

Total comprehensive income for the year 7,807,451 1,856,826 6,461,494 1,637,122

Total comprehensive income attributable to:

Owners of the parent 7,695,240 1,821,022 6,461,494 1,637,122

Holders of Perpetual Sukuk 51,350 25,605 - -

Non-controlling interests 60,861 10,199 - -

7,807,451 1,856,826 6,461,494 1,637,122


OUR PERFORMANCE

STATEMENT OF FINANCIAL POSITION (GROUP)As at 31 August 2021

Note 2021

RM’000 2020

RM’000

Assets

Non-current assets

Property, plant and equipment 16 3,958,715 3,010,233

Right-of-use assets 17 210,649 201,425

Investment properties 18 227,400 163,900

Investment in an associate 20 13,069 10,425

Deferred tax assets 21 17,073 19,589

Biological assets 574 28

Investment securities: Unquoted investments 22 392 392

Intangible assets 23 1,008,795 1,012,319

5,436,667 4,418,311

Current assets

Inventories 24 1,144,705 530,729

Trade and other receivables 25 566,299 798,805

Other current assets 26 118,174 74,884

Tax recoverable 5,803 -

Investment securities: Money market funds 22 1,323,297 1,674,631

Investment securities: Debt securities 22 306,622 -

Derivative financial instruments 27 2,411 45

Cash and bank balances 28 878,446 1,208,559

4,345,757 4,287,653

Total assets 9,782,424 8,705,964

Equity and liabilities

Current liabilities

Loans and borrowings 29 312,704 314,199

Trade and other payables 30 692,361 810,824

Contract liabilities 31 737,627 879,386

Lease liabilities 32 5,542 1,442

Income tax payable 450,023 126,673

Derivative financial instruments 27 230 -

2,198,487 2,132,524

Net current assets 2,147,270 2,155,129

Note 2021

RM’000 2020

RM’000

Non-current liabilities

Loans and borrowings 29 146,002 226,340

Lease liabilities 32 18,127 9,672

Deferred tax liabilities 21 191,200 141,988

Provisions 8,448 4,557

363,777 382,557

Total liabilities 2,562,264 2,515,081

Net assets 7,220,160 6,190,883

Equity attributable to owners of the parent

Share capital 33 1,841,654 1,675,704

Treasury shares 34 (1,413,274) (1,519)

Other reserves 35 101,663 65,040

Retained earnings 37 5,342,360 3,131,530

5,872,403 4,870,755

Perpetual Sukuk 36 1,295,262 1,295,262

Non-controlling interests 52,495 24,866

Total equity 7,220,160 6,190,883

Total equity and liabilities 9,782,424 8,705,964

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

As at 31 August 2021 (cont’d)STATEMENT OF FINANCIAL POSITION (GROUP)


OUR PERFORMANCE

STATEMENT OF FINANCIAL POSITION (COMPANY) STATEMENTS OF CHANGES IN EQUITYAs at 31 August 2021 For the financial year ended 31 August 2021

Note 2021

RM’000 2020

RM’000

Assets

Non-current assets

Investment in subsidiaries 19 2,033,410 1,617,656

Right-of-use assets 17 357 434

2,033,767 1,618,090

Current assets

Trade and other receivables 25 261,685 605,844

Other current assets 26 3,432 11

Investment securities: Money market funds 22 578,568 709,075

Investment securities: Debt securities 22 97,307 -

Cash and bank balances 28 5,555 257,481

946,547 1,572,411

Total assets 2,980,314 3,190,501

Equity and liabilities

Current liabilities

Trade and other payables 30 23,060 2,571

Lease liabilities 32 74 72

Income tax payable 1,713 219

24,847 2,862

Net current assets 921,700 1,569,549

Non-current liability

Lease liabilities 32 292 366

Total liabilities 25,139 3,228

Net assets 2,955,175 3,187,273

Equity attributable to owners of the Company

Share capital 33 1,841,654 1,675,704

Treasury shares 34 (1,413,274) (1,519)

Other reserves 35 34,740 5,319

Retained earnings 37 2,492,055 1,507,769

Total equity 2,955,175 3,187,273

Total equity and liabilities 2,980,314 3,190,501

The accompanying accounting policies and explanatory notes form an integral part of the financial statements. 2021

Gro

up

T

ota

l e

qui

ty

RM

’000

Att

rib

utab

le t

o o

wne

rs o

f th

e p

aren

t

Per

pet

ual

Suk

uk

RM

’000

No

n-

co

ntro

lling

inte

rest

s (“

NC

I”)

RM

’000

Tot

al e

quity

at

trib

utab

le to

ow

ners

of t

he

of p

aren

t R

M’0

00

No

n-d

istr

ibut

able

Dis

trib

utab

le

S

hare

c

apit

al

RM

’000

Tre

asur

y s

hare

s R

M’0

00

Oth

er

res

erve

s R

M’0

00

Ret

aine

d

ear

ning

s R

M’0

00

Op

enin

g b

alan

ce a

t 1

Sep

tem

ber

202

0 6

,190

,883

4

,870

,755

1

,675

,704

(1

,519

) 6

5,04

0 3

,131

,530

1

,295

,262

2

4,86

6

Pro

fit n

et o

f tax

7,8

23,9

92

7,7

10,3

27

-

-

-

7,7

10,3

27

51,

350

62,

315

Oth

er c

omp

rehe

nsiv

e lo

ss (1

6,54

1) (1

5,08

7) -

-

(1

5,08

7) -

-

(1

,454

)

Tota

l co

mp

rehe

nsiv

e in

com

e 7

,807

,451

7

,695

,240

-

-

(1

5,08

7) 7

,710

,327

5

1,35

0 6

0,86

1

Tran

sact

ions

wit

h o

wne

rs

Issu

ance

of o

rdin

ary

shar

es p

ursu

ant

to

Em

plo

yee

Sha

re O

ptio

ns S

chem

e (“

ES

OS

”)

(Not

e 38

) 5

8,06

1 5

8,06

1 5

8,06

1 -

-

-

-

-

Issu

ance

of o

rdin

ary

shar

es p

ursu

ant

to

con

vers

ion

of e

xcha

ngea

ble

bon

ds

104

,387

1

04,3

87

104

,387

-

-

-

-

-

Sha

re o

ptio

ns g

rant

ed u

nder

ES

OS

(Not

e 35

) 3

3,98

3 3

3,98

3 -

-

3

3,98

3 -

-

-

Issu

ance

of s

hare

s to

NC

I 3

00

-

-

-

-

-

-

300

Tran

sfer

from

sha

re o

ptio

n re

serv

e

(Not

e 33

and

Not

e 35

) -

-

4

,002

-

(4

,706

) 7

04

-

-

Tran

sfer

from

ret

aine

d e

arni

ngs

(Not

e 35

) -

-

-

-

4

,952

(4

,952

) -

-

Tran

sfer

to

lega

l res

erve

(Not

e 35

) -

-

-

-

1

7,48

1 (1

7,48

1) -

-

Tran

sfer

to

Em

plo

yee

Sha

re G

rant

Pla

n

(“E

SG

P”)

(Not

e 34

) 8

,641

8

,641

-

1

2,34

0 -

(3

,699

) -

-

Tran

sact

ion

cost

(2,0

10)

(2,0

10)

(500

) (1

,510

) -

-

-

-

Pur

chas

e of

tre

asur

y sh

ares

(Not

e 34

) (1

,422

,585

) (1

,422

,585

) -

(1

,422

,585

) -

-

-

-

Dis

trib

utio

n to

hol

der

s of

Per

pet

ual S

ukuk

(51,

350)

-

-

-

-

-

(51,

350)

-

Div

iden

ds

on N

CI

(33,

532)

-

-

-

-

-

-

(33,

532)

Div

iden

ds

on o

rdin

ary

shar

es (N

ote

46)

(5,4

74,0

69)

(5,4

74,0

69)

-

-

-

(5,4

74,0

69)

-

-

Tota

l tra

nsac

tio

ns w

ith

ow

ners

(6,7

78,1

74)

(6,6

93,5

92)

165

,950

(1

,411

,755

) 5

1,71

0 (5

,499

,497

) (5

1,35

0) (3

3,23

2)

Clo

sing

bal

ance

at

31 A

ugus

t 20

21 7

,220

,160

5

,872

,403

1

,841

,654

(1

,413

,274

) 1

01,6

63

5,3

42,3

60

1,2

95,2

62

52,

495


OUR PERFORMANCE

For the financial year ended 31 August 2021 (cont’d) For the financial year ended 31 August 2021 (cont’d)STATEMENTS OF CHANGES IN EQUITY STATEMENTS OF CHANGES IN EQUITY

2020

Gro

up

T

ota

l e

qui

ty

RM

’000

Att

rib

utab

le t

o o

wne

rs o

f th

e p

aren

t

Per

pet

ual

Suk

uk

RM

’000

No

n-

co

ntro

lling

inte

rest

s (“

NC

I”)

RM

’000

Tot

al e

quity

at

trib

utab

le to

ow

ners

of t

he

of p

aren

t R

M’0

00

No

n-d

istr

ibut

able

Dis

trib

utab

le

S

hare

c

apit

al

RM

’000

Tre

asur

y s

hare

s R

M’0

00

Oth

er

res

erve

s R

M’0

00

Ret

aine

d

ear

ning

s R

M’0

00

Op

enin

g b

alan

ce a

t 1

Sep

tem

ber

201

9 2

,553

,577

2

,536

,519

7

88,3

26

(1,7

81)

(1,5

70)

1,7

51,5

44

-

17,

058

Pro

fit n

et o

f tax

1,7

88,8

30

1,7

52,5

84

-

-

-

1,7

52,5

84

25,

605

10,

641

Oth

er c

omp

rehe

nsiv

e in

com

e/(lo

ss)

67,

996

68,

438

-

-

68,

438

-

-

(442

)

Tota

l co

mp

rehe

nsiv

e in

com

e 1

,856

,826

1

,821

,022

-

-

6

8,43

8 1

,752

,584

2

5,60

5 1

0,19

9

Tran

sact

ions

wit

h o

wne

rs

Issu

ance

of o

rdin

ary

shar

es p

ursu

ant

to

Em

plo

yee

Sha

re O

ptio

ns S

chem

e ("

ES

OS

")

(Not

e 38

) 1

67,2

30

167

,230

1

67,2

30

-

-

-

-

-

Issu

ance

of o

rdin

ary

shar

es p

ursu

ant

to

conv

ersi

on o

f exc

hang

eab

le b

ond

s 7

09,6

73

709

,673

7

09,6

73

-

-

-

-

-

Sha

re o

ptio

ns g

rant

ed u

nder

ES

OS

(Not

e 35

) 7

,404

7

,404

-

-

7

,404

-

-

-

Issu

ance

of s

hare

s to

NC

I 7

5 -

-

-

-

-

-

7

5

Tran

sfer

from

sha

re o

ptio

n re

serv

e

(Not

e 33

and

Not

e 35

) -

-

1

0,89

2 -

(1

1,08

0) 1

88

-

-

Tran

sfer

from

ret

aine

d e

arni

ngs

(Not

e 35

) -

-

-

-

1

,848

(1

,848

) -

-

Tran

sfer

to

Em

plo

yee

Sha

re G

rant

Pla

n

("E

SG

P")

(Not

e 34

) 1

,128

1

,128

-

2

62

-

866

-

-

Tran

sact

ion

cost

(417

) (4

17)

(417

) -

-

-

-

-

Dis

trib

utio

n to

hol

der

s of

Per

pet

ual S

ukuk

(25,

605)

-

-

-

-

-

(25,

605)

-

Issu

ance

of P

erp

etua

l Suk

uk (N

ote

36)

1,2

95,2

62

-

-

-

-

-

1,2

95,2

62

-

Div

iden

ds

on N

CI

(2,4

66)

-

-

-

-

-

-

(2,4

66)

Div

iden

ds

on o

rdin

ary

shar

es (N

ote

46)

(371

,804

) (3

71,8

04)

-

-

-

(371

,804

) -

-

Tota

l tra

nsac

tio

ns w

ith

ow

ners

1,7

80,4

80

513

,214

8

87,3

78

262

(1

,828

) (3

72,5

98)

1,2

69,6

57

(2,3

91)

Clo

sing

bal

ance

at

31 A

ugus

t 20

20 6

,190

,883

4

,870

,755

1

,675

,704

(1

,519

) 6

5,04

0 3

,131

,530

1

,295

,262

2

4,86

6

The

acco

mp

anyi

ng a

ccou

ntin

g p

olic

ies

and

exp

lana

tory

not

es fo

rm a

n in

tegr

al p

art

of t

he fi

nanc

ial s

tate

men

ts.

2021Company

Total equity

RM’000

Non-distributable Distributable

Share capital

RM’000

Treasury shares

RM’000

Other reserves RM’000

Retained earnings

RM’000

Opening balance at 1 September 2020 3,187,273 1,675,704 (1,519) 5,319 1,507,769

Profit net of tax 6,461,350 - - - 6,461,350

Other comprehensive income 144 - - 144 -

Total comprehensive income 6,461,494 - - 144 6,461,350

Transactions with owners

Issuance of ordinary shares pursuant to ESOS (Note 38) 58,061 58,061 - - -

Issuance of ordinary shares pursuant to conversion of exchangeable bonds 104,387 104,387 - - -

Share options granted under ESOS (Note 35) 33,983 - - 33,983 -

Transfer from share option reserve (Note 33 and Note 35) - 4,002 - (4,706) 704

Purchase of treasury shares (Note 34) (1,422,585) - (1,422,585) - -

Transaction cost (2,010) (500) (1,510) - -

Transfer to ESGP (Note 34) 8,641 - 12,340 - (3,699)

Dividends on ordinary shares (Note 46) (5,474,069) - - - (5,474,069)

Total transactions with owners (6,693,592) 165,950 (1,411,755) 29,277 (5,477,064)

Closing balance at 31 August 2021 2,955,175 1,841,654 (1,413,274) 34,740 2,492,055

2020Company

Total equity

RM’000

Non-distributable Distributable

Share capital

RM’000

Treasury shares

RM’000

Other reserves RM’000

Retained earnings

RM’000

Opening balance at 1 September 2019 1,036,937 788,326 (1,781) 8,995 241,397

Total comprehensive income 1,637,122 - - - 1,637,122

Transactions with owners

Issuance of ordinary shares pursuant to ESOS (Note 38) 167,230 167,230 - - -

Issuance of ordinary shares pursuant to conversion of exchangeable bonds 709,673 709,673 - - -

Share options granted under ESOS (Note 35) 7,404 - - 7,404 -

Transfer from share option reserve (Note 33 and Note 35) - 10,892 - (11,080) 188

Transaction cost (417) (417) - - -

Transfer to ESGP (Note 34) 1,128 - 262 - 866

Dividends on ordinary shares (Note 46) (371,804) - - - (371,804)

Total transactions with owners 513,214 887,378 262 (3,676) (370,750)

Closing balance at 31 August 2020 3,187,273 1,675,704 (1,519) 5,319 1,507,769



OUR PERFORMANCE

STATEMENTS OF CASH FLOWSFor the financial year ended 31 August 2021

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Operating activities

Profit before tax 10,033,813 2,165,551 6,465,382 1,637,339

Adjustments for:

Gross dividends - - (6,483,958) (1,630,710)

Depreciation of property, plant and equipment (Note 16) 296,718 237,352 - -

Depreciation of right-of-use assets (Note 17) 8,215 4,361 77 33

Amortisation of intangible assets (Note 23) 3,731 3,683 - -

Loss on disposal of property, plant and equipment 2 353 - -

Net gain from fair value remeasurement of investment properties (Note 18) (1,846) - - -

Gain on disposal of right-of-use assets - (350) - -

Bad debts written off 124 573 - -

Gain on disposal of debt securities (3,828) (2,845) - -

Net reversal of allowance for expected credit loss (Note 25) (13) (227) - -

Inventories written off 32,709 - - -

Allowance for inventories written down/(back) 80,558 (904) - -

Property, plant and equipment written off 44,243 20,223 - -

Shares granted under ESGP 8,641 1,128 142 134

Share options granted under ESOS 33,983 7,404 2,072 904

Unrealised foreign exchange (gain)/loss (9,174) 786 (3,546) -

Share of results of an associate (2,644) 1,428 - -

Net fair value gain on derivative financial instruments (2,143) (1,703) - -

Net fair value gain on investment in debt securities at fair value through profit or loss (2,591) - (929) -

Finance costs 4,187 34,399 16 7

Interest income (61,575) (23,889) (24,818) (9,741)

Impairment loss on investment in subsidiaries (Note 19) - - 8,723 -

Impairment loss on other receivables - - 3,249 -

Total adjustments 429,297 281,772 (6,498,972) (1,639,373)

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Operating cash flows before changes in working capital 10,463,110 2,447,323 (33,590) (2,034)

Changes in working capital

Inventories (727,243) 100,071 - -

Receivables 233,172 39,073 146,662 7,629

Other current assets (43,290) (11,373) (3,421) 2,603

Payables (112,788) 318,112 20,489 1,029

Contract liabilities (141,759) 823,776 - -

Total changes in working capital (791,908) 1,269,659 163,730 11,261

Cash flows generated from operations 9,671,202 3,716,982 130,140 9,227

Interest paid (4,187) (31,456) (16) -

Income taxes (paid)/refunded (1,840,082) (229,945) (2,538) 12

Net cash flows generated from operating activities 7,826,933 3,455,581 127,586 9,239

Investing activities

Purchase of property, plant and equipment (1,334,018) (806,400) - -

Additions to investment properties (26,902) - - -

Purchase of right-of-use assets (554) (9,455) - -

Purchase of intangible assets (207) (32) - -

Purchase of biological assets (546) (28) - -

Placement of money market funds (2,763,264) (1,699,296) (2,730,882) (1,400,674)

Withdrawal of money market funds 3,114,598 28,729 2,861,389 691,600

Purchase of debt securities (322,604) (24,555) (97,307) -

Proceeds from disposal of debt securities 22,400 107,776 - -

Proceeds from disposal of right-of-use assets - 763 - -

Net (increase)/decrease in bank balances pledged with banks (365) 2,472 - -

Decrease/(increase) in monies held in debt service reserve account 729 (17) - -

Interest received 61,575 23,889 24,818 9,741

Dividends from subsidiaries - - 6,483,958 1,630,710

Proceeds from disposal of property, plant and equipment 1,258 6,651 - -

Additions to investment in subsidiaries - - (424,477) (586,600)

Repayment from subsidiaries - - 342,690 108,418

Net cash flows (used in)/generated from investing activities (1,247,900) (2,369,503) 6,460,189 453,195

For the financial year ended 31 August 2021 (cont’d)STATEMENTS OF CASH FLOWS


OUR PERFORMANCE

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Financing activities

Proceeds from issuance of ordinary shares pursuant to ESOS 58,061 167,230 58,061 167,230

Transaction cost (2,010) (417) (2,010) (417)

Dividends paid on ordinary shares (Note 46) (5,474,069) (371,804) (5,474,069) (371,804)

Dividends paid on NCI (33,532) (2,466) - -

Issuance of shares to NCI 300 75 - -

Repayment of loans and borrowings (356,670) (1,196,819) - -

Drawdown of loans and borrowings 383,809 94,662 - -

Proceeds from issuance of Perpetual Sukuk - 1,295,262 - -

Distribution paid to holders of Perpetual Sukuk (51,350) (25,605) - -

Payment of principal portion of lease liabilities (4,264) (2,237) (72) (36)

Purchase of treasury shares (1,422,585) - (1,422,585) -

Net cash flows used in financing activities (6,902,310) (42,119) (6,840,675) (205,027)

Net (decrease)/increase in cash and cash equivalents (323,277) 1,043,959 (252,900) 257,407

Effect of changes in foreign exchange rate (6,472) 1,273 974 -

Cash and cash equivalents at 1 September 2020/2019 1,204,947 159,715 257,481 74

Cash and cash equivalents at 31 August (Note 28) 875,198 1,204,947 5,555 257,481


For the financial year ended 31 August 2021 (cont’d)STATEMENTS OF CASH FLOWS

For the financial year ended 31 August 2021 (cont’d)STATEMENTS OF CASH FLOWSSTATEMENTS OF CASH FLOWS

(a)

Rec

onc

iliat

ion

of

liab

iliti

es a

risi

ng f

rom

fina

ncin

g a

ctiv

itie

s

1 S

epte

mb

er

2020

RM

’000

Mo

vem

ents

31

Aug

ust

202

1

RM

’000

Cas

h fl

ow

sN

on-

cash

cha

nges

Pri

ncip

al

mo

vem

ent

RM

’000

Inte

rest

pai

d

RM

’000

Inte

rest

co

st

RM

’000

Ad

just

men

t

fo

r le

ase

mo

difi

cati

on

RM

’000

New

leas

es

RM

’000

Equ

ity

com

pone

nt o

f

exc

hang

eabl

e

bon

ds

RM

’000

Fo

reig

n

exc

hang

e

mo

vem

ent

RM

’000

2021

Gro

up

Loan

s an

d b

orro

win

gs (N

ote

29)

540

,539

2

7,13

9 (3

,504

) 3

,504

-

-

(1

04,3

87)

(4,5

85)

458

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OUR PERFORMANCE

NOTES TO THE FINANCIAL STATEMENTSFor the financial year ended 31 August 2021 (cont’d)

NOTES TO THE FINANCIAL STATEMENTSFor the financial year ended 31 August 2021

1. CORPORATE INFORMATION

Top Glove Corporation Bhd. (“the Company”) is a public limited liability company incorporated and domiciled in Malaysia, and is listed on the Main Market of Bursa Malaysia Securities Berhad and Singapore Exchange Securities Trading Limited. The principal place of business of the Company is located at Level 21, Top Glove Tower, 16, Persiaran Setia Dagang, Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor.

The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiaries are described in Note 19. There have been no significant changes in the nature of the principal activities during the financial year.

2. BASIS OF PREPARATION

The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”) as issued by the Malaysian Accounting Standards Board (“MASB”), International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and the requirements of the Companies Act 2016 in Malaysia.

The financial statements have also been prepared on a historical basis, unless otherwise indicated in the accounting policies below.

The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand (“RM’000”) except when otherwise indicated.

3. BASIS OF CONSOLIDATION

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 31 August 2021. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:

- Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);- Exposure, or rights, to variable returns from its involvement with the investee; and- The ability to use its power over the investee to affect its returns.

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

- The contractual arrangement with the other vote holders of the investee;- Rights arising from other contractual arrangements; and- The Group’s voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses, unrealised gains and losses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. For each business combination, the Group elects whether it measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.

The Group determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organised workforce with the necessary skills, knowledge, or experience to perform that process or if significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, any previously held equity interests in the acquiree are re-measured to fair value at the acquisition date with any corresponding gain or loss recognised in profit or loss.

Any excess of the cost of business combination, as the case may be, over the net amount of the fair value of identifiable assets acquired and liabilities assumed is recognised as goodwill. For business combinations, provisions are made for the acquiree’s contingent liabilities existing at the date of acquisition as the Group deems that it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations.

Any excess in the Group’s interest in the net fair value of the identifiable assets acquired and liabilities assumed over the cost of business combination is recognised immediately in profit or loss.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of MFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement of profit or loss in accordance with MFRS 9. Other contingent consideration that is not within the scope of MFRS 9 is measured at fair value at each reporting date with changes in fair value recognised in profit or loss.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.


OUR PERFORMANCE

NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTSFor the financial year ended 31 August 2021 (cont’d)For the financial year ended 31 August 2021 (cont’d)

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.1 Business combinations and goodwill (cont’d)

Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

Business combinations involving entities under common control are accounted for by applying the pooling on interest method. The assets and liabilities of the combining entities are reflected at their carrying amounts reported in the consolidated financial statements of the controlling holding company. Any difference between the consideration paid and the share capital of the entity acquired is reflected within equity as merger reserve. The statement of comprehensive income reflects the results of the combining entities for the full year, irrespective of when the combination takes place. Comparatives are presented as if the entities have always been combined since the date the entities had come under common control.

4.2 Transactions with non-controlling interests

Non-controlling interests represent the equity in subsidiaries not attributable, directly or indirectly, to owners of the Company, and is presented separately in the consolidated statement of profit or loss, consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, separately from equity attributable to owners of the Company.

Changes in the Company’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the parent.

4.3 Investment in subsidiaries

A subsidiary is an entity over which the Group has all the following:

(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);

(ii) Exposure, or rights, to variable returns from its involvement with the investee; and

(iii) The ability to use its power over the investee to affect its returns.

In the Company’s separate financial statements, investment in subsidiaries is accounted for at cost less impairment losses. On disposal of such investment, the difference between net disposal proceeds and the carrying amount is included in profit or loss.

4.4 Investment in an associate

An associate is an entity over in which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. An associate is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to have significant influence over the associate.


4.4 Investment in an associate (cont’d)

The Group’s investment in an associate is accounted for using the equity method. Under the equity method, the investment in an associate is measured in the consolidated statement of financial position at cost plus post-acquisition changes in the Group’s share of net assets of the associate. Goodwill relating to associate is included in the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the associate’s identifiable assets, liabilities and contingent liabilities over the cost of the investment is excluded from the carrying amount of the investment and is instead included as income in the determination of the Group’s share of the associate’s profit or loss for the period in which the investment is acquired.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the loss within share of profit of an associate in the consolidated statement of profit or loss.

The financial statements of the associate are prepared as of the same reporting date as the Group unless it is impracticable to do so. When the financial statements of the associate used in applying the equity method are prepared as of a different reporting date from that of the Group, adjustments are made for the effects of significant transactions or events that occur between that date and the reporting date of the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

4.5 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

An intangible asset is derecognised upon disposal (i.e. at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss.


OUR PERFORMANCE



4.5 Intangible assets (cont’d)

(a) Customer relationships

The cost of customer relationships acquired in a business combination is measured at their fair value at the date of acquisition. Following the initial recognition, they are carried at cost less accumulated amortisation and any accumulated impairment losses.

The customer relationships are amortised on a straight line basis over its estimated economic useful lives of eleven years and assessed for impairment whenever there is an indication that the customer relationships may be impaired.

(b) Patents

The Group does not recognise internally generated brands, licenses and other similar intellectual property which cannot be distinguished from the cost of developing the Group’s business as a whole.

Acquired patents are recognised as an asset and initially measured at cost, which is the fair value of the consideration paid. After initial recognition, patents are measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised in profit or loss on a straight line basis over the estimated economic useful lives of the patents.

4.6 Current versus non-current classification

The Group and the Company present assets and liabilities in the statements of financial position based on current/non-current classification. An asset is current when it is:

- Expected to be realised or intended to be sold or consumed in the normal operating cycle;- Held primarily for the purpose of trading;- Expected to be realised within twelve months after the reporting period; or- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve

months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in the normal operating cycle;- It is held primarily for the purpose of trading;- It is due to be settled within twelve months after the reporting period; or- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting

period.

The Group and the Company classify all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.


4.7 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability; or- In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available, are used to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is

directly or indirectly observable Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is

unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

Policies and procedures are determined by senior management for both recurring fair value measurement and for non-recurring measurement.

External valuers are involved for valuation of significant assets and significant liabilities. Involvement of external valuers is decided by senior management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The senior management decides, after discussions with the external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the senior management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Group’s accounting policies. For this analysis, the senior management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

The senior management, in conjunction with the external valuers, also compares the changes in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.


OUR PERFORMANCE



4.8 Foreign currencies

(a) Functional and presentation currency

The Group’s consolidated financial statements are presented in RM which is also the parent company’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency.

(b) Transactions and balances

Transactions in foreign currencies are initially recorded by the Group entities at the functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates at the reporting date.

Differences arising on settlement or translation of monetary items are recognised in profit or loss with the exception of monetary items that are designated as part of the hedge of the Group’s net investment of a foreign operation. These are recognised in foreign exchange reserve OCI until the net investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in OCI.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of gain or loss on change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Group determines the transaction date for each payment or receipt of advance consideration.

(c) Group companies

On consolidation, the assets and liabilities of foreign operations are translated into RM at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is recognised in profit or loss.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange at the reporting date.

4.9 Revenue and other income recognition

Revenue is recognised when the Group satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation.


4.9 Revenue and other income recognition (cont’d)

(a) Sale of goods

The Group is involved in manufacturing and trading of gloves.

Revenue is recognised at point in time upon transfer of control of the goods to the customers. Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the consideration due, associated costs or the possible return of goods.

The amount of revenue recognised is based on the estimated transaction price, which comprises the contractual price, net of the estimated volume rebates. Based on the Group’s experience with similar types of contracts, variable consideration is typically constrained and is included in the transaction only to the extent that it is a highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

(b) Dividend income

Dividend income is recognised when the Group’s and the Company’s right to receive payment is established.

(c) Management fees

Management fees are recognised when services are rendered.

(d) Interest income

Interest income is recognised on an accrual basis using the effective interest rate method.

(e) Rental income

Rental income is accounted for on a straight-line basis over the lease terms. The aggregate costs of incentives provided to lessees are recognised as a reduction of rental income over the lease term on a straight-line basis.

4.10 Employee benefits

(a) Short term benefits

Wages, salaries, bonuses and social security contributions are recognised as expenses in the year in which the associated services are rendered by employees. Short term accumulated compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences. Short term non-accumulating compensated absences such as sick leave are recognised when the absences occur.

(b) Defined contribution plans

Defined contribution plans are post-employment benefit plans under which the Group and the Company pay fixed contributions into separate entities or funds and will have no legal or constructive obligation to pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current and preceding financial years. Such contributions are recognised as an expense in profit or loss as incurred. As required by law, companies in Malaysia make such contributions to the Employees Provident Fund (“EPF”). All contributions to pension plans are fully and immediately vested and the Group had no unvested benefits available to reduce its future contributions.


OUR PERFORMANCE



4.10 Employee benefits (cont’d)

(c) Employee share options scheme (“ESOS”)

Employees of the Group and of the Company receive remuneration in the form of share options as consideration for services rendered. The cost of these equity-settled transactions with employees is measured by reference to the fair value of the options at the date on which the options are granted. This cost is recognised in profit or loss. The cumulative expense recognised at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s and the Company’s best estimate of the number of options that will ultimately vest. The charge or credit to profit or loss for a period represents the movement in cumulative expense recognised at the beginning and end of that period.

No expense is recognised for options that do not ultimately vest, except for options where vesting is conditional upon a market or non-vesting condition, which are treated as vested irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

When the options are exercised, the employee share option reserve is transferred to share capital if new shares are issued.

The employee share option reserve is transferred to retained earnings upon forfeiture or expiry of the share options.

(d) Employee Share Grant Plan (“ESGP”)

Employees of the Group and of the Company are entitled to performance based shares as consideration for services rendered. The ESGP may be settled by way of issuance or transfer of shares of the Company or by cash at the discretion of the ESGP Committee. Trusts have been set up and are administered by an appointed trustee (“ESGP Trusts”). The trustee will be entitled from time to time, to accept advances from the Company, upon such terms and conditions as the Company and the trustee may agree to purchase the ordinary shares of the Company (“Trust Shares”) from the open market for the ESGP Trusts. The value of the ESGP Awards granted to Eligible Employees is recognised as an employee cost.

The ESGP Trusts’ asset is consolidated into the Group’s consolidated financial statements. Dividends received by the ESGP Trusts are eliminated against the Company’s dividend payment.

4.11 Taxes

(a) Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Group and the Company operate and generate taxable income.

Current income tax relating to items recognised directly in equity is recognised in equity and not in statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.


4.11 Taxes (cont’d)

(b) Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(i) when the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

(ii) in respect of taxable temporary differences associated with investments in subsidiaries and associate, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

(i) when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

(ii) in respect of deductible temporary differences associated with investments in subsidiaries and associate, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same taxation authority.


OUR PERFORMANCE



4.11 Taxes (cont’d)

(c) Sales and services tax (“SST”)

Revenue, expenses and assets are recognised net of the amount of SST, except:

(i) when the SST incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the SST is recognised as part of the cost of acquisition of the assets or as part of the expense item as applicable; and

(ii) when receivables and payables are stated with the amount of SST included.

The payable amount of SST to the taxation authority is included as part of payables in the statements of financial position.

4.12 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

4.13 Property, plant and equipment

Capital work-in-progress is stated at cost, net of accumulated impairment loss, if any. Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing component parts of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met.

When significant parts of property, plant and equipment are required to be replaced at intervals, the Group derecognises the replaced part, and recognises the new part with its own associated useful life and depreciation. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the profit or loss as incurred. The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

Freehold land has an unlimited useful life and therefore is not depreciated. Capital work-in-progress are not depreciated as these assets are not available for use. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

Buildings 20 to 50 years Plant and equipment 3 to 20 years Other assets 5 to 10 years

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e. at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the statement of profit or loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.


4.14 Investment properties

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at fair value which reflects market conditions at the reporting date. Fair value is arrived at using the investment method that makes reference to estimated market rental values and equivalent yields, or comparison method that makes reference to recent transaction prices of similar properties. Valuation is performed by accredited independent valuer having an appropriate recognised professional qualification and recent experience in the location and category of the properties being valued. Gains or losses arising from changes in the fair values of investment properties are included in profit or loss in the year in which they arise, including the corresponding tax effect.

Investment properties are derecognised either when they have been disposed of (i.e. at the date the recipient obtains control) or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the profit or loss in the period of derecognition.

Transfers are made to (or from) investment properties only when there is a change in use. For a transfer from investment property to owner-occupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use. If owner-occupied property becomes an investment property, the Group accounts for such property in accordance with the accounting policy for property, plant and equipment set out in Note 4.13 up to the date of change in use.

4.15 Leases

The Group and the Company assess at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(a) Group as a lessee

The Group and the Company apply a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group and the Company recognise lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets

The Group and the Company recognise right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Leasehold lands 50 to 99 years Buildings 20 to 50 years Plant and equipment 4 to 20 years Other assets 5 to 10 years

If ownership of the leased asset transfers to the Group and the Company by the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment in accordance with the accounting policy set out in Note 4.17.


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4.15 Leases (cont’d)

(a) Group as a lessee (cont’d)

(ii) Lease liabilities

At the commencement date of the lease, the Group and the Company recognise lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and the Company and payments of penalties for terminating the lease, if the lease term reflects the Group and the Company exercising the option to terminate.

In calculating the present value of lease payments, the Group and the Company use its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

(iii) Short-term leases and leases of low-value assets

The Group and the Company apply the short-term lease recognition exemption to its short-term leases of hostels, ambulance, automated teller machine (“ATM”) and forklift (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of photocopiers that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognised as expense on a straight-line basis over the lease term.

(b) Group as a lessor

Leases in which the Group and the Company do not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

4.16 Inventories

Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing the inventories to their present location and condition are accounted for, as follows:

- Raw materials, consumables and hardware: purchase costs on a weighted average basis.- Finished goods and work-in-progress: costs of direct materials and labour and a proportion of manufacturing

overheads based on normal operating capacity, excluding borrowing costs.

Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to make the sale.


4.17 Impairment of non-financial assets

The Group and the Company assess, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group and the Company estimate the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs of disposal and its value-in-use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Group and the Company base their impairment calculation on most recent budgets and forecast calculations, which are prepared separately for each of the Group’s and the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. A long-term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses of continuing operations, including impairment on inventories, are recognised in profit or loss in expense categories consistent with the function of the impaired asset.

Goodwill is tested for impairment annually at each reporting date and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.

For assets other than goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the recoverable amount of the asset or CGU is estimated. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss.

4.18 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(a) Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through OCI, or fair value through profit or loss.


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4.18 Financial instruments (cont’d)

(a) Financial assets (cont’d)

Initial recognition and measurement (cont’d)

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s and the Company’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group and the Company have applied the practical expedient, the Group and the Company initially measure a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group and the Company have applied the practical expedient are measured at the transaction price determined under MFRS 15.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

The Group’s and the Company’s business model for managing financial assets refers to how they manage their financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e. the date that the Group and the Company commit to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments);• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments);• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses

upon derecognition (equity instruments); and• Financial assets at fair value through profit or loss.

The Group and the Company have no financial assets carried at fair value through OCI for equity instruments.

(i) Financial assets at amortised cost (debt instruments)

The Group and the Company measure financial assets at amortised cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest rate (“EIR”) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The Group’s and the Company’s financial assets at amortised cost include cash and bank balances, trade and other receivables and other non-current financial assets.




Subsequent measurement (cont’d)

(ii) Financial assets at fair value through OCI (debt instruments)

The Group and the Company measure debt instruments at fair value through OCI if both of the following conditions are met:

• The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss.

The Group’s and the Company’s debt instruments at fair value through OCI include investments in quoted debt securities included under other current financial assets.

(iii) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss.

This category includes derivative instruments which the Group had not irrevocably elected to classify at fair value through OCI.

A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss category.


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(iii) Financial assets at fair value through profit or loss (cont’d)

A derivative embedded within a hybrid contract containing a financial asset host is not accounted for separately. The financial asset host together with the embedded derivative is required to be classified in its entirety as a financial asset at fair value through profit or loss.

The Group has designated derivatives that do not qualify for hedge accounting and money market funds at fair value through profit or loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Group’s and the Company’s statements of financial position) when:

• The rights to receive cash flows from the asset have expired; or• The Group and the Company have transferred their rights to receive cash flows from the asset or have

assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group and the Company have transferred substantially all the risks and rewards of the asset, or (b) the Group and the Company have neither transferred nor retained substantially all the risks and rewards of the asset, but have transferred control of the asset.

When the Group and the Company have transferred their rights to receive cash flows from an asset or have entered into a pass-through arrangement, they evaluate if, and to what extent, they have retained the risks and rewards of ownership. When they have neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group and the Company continue to recognise the transferred asset to the extent of their continuing involvement. In that case, the Group and the Company also recognise an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group and the Company have retained.

Impairment of financial assets

The Group and the Company recognise an allowance for expected credit losses (“ECLs”) for all debts instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group and the Company expect to receive, discounted at an approximation of the original EIR. The expected cash flows will include cash flows from the sales of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognise in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (“12-month ECL”). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (“lifetime ECL”).

For trade receivables, the Group applies simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognise a loss allowance base on lifetime ECL at each reporting date. The Group has established a provision matrix that is based on historical credit experience. The Group considers forward looking factors do not have significant impact to credit risk given the nature of its industry and the amount of ECLs is insensitive to changes to forecast economic conditions.




Impairment of financial assets (cont’d)

For debt instruments at fair value through OCI, the Group and the Company apply the low credit risk simplification. At every reporting date, the Group and the Company evaluate whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group and the Company reassess the internal credit rating of the debt instrument. In addition, the Group and the Company consider that there has been a significant increase in credit risk when contractual payments are more than 30 days past due.

The Group’s and the Company’s debt instruments at fair value through OCI comprise solely of quoted bonds that are graded in the top investment category (Very Good and Good) by the Good Credit Rating Agency and, therefore, are considered to be low credit risk investments. It is the Group’s and the Company’s policy to measure ECLs on such instruments on a 12-month basis. However, when there has been a significant increase in credit risk since origination, the allowance will be based on the lifetime ECL. The Group and the Company use the ratings from the Good Credit Rating Agency both to determine whether the debt instrument has significantly increased in credit risk and to estimate ECLs.

The Group and the Company generally consider a financial asset to be in default when contractual payments are 120 days past due, except for certain major or specific customers where the period may extend beyond 120 days. In certain cases, the Group and the Company may also consider a financial asset to be in default when internal and external information indicates that the Group and the Company are unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group and the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

(b) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, lease liabilities or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Group and the Company’s financial liabilities include trade and other payables, other current liabilities, lease liabilities, derivative financial instruments, and loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

(i) Trade and other payables

These are subsequently measured at amortised cost using the EIR method.


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(b) Financial liabilities (cont’d)


The measurement of financial liabilities depends on their classification, as described below (cont’d):

(ii) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by MFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in MFRS 9 are satisfied. The Group has designated derivative financial instruments as financial liability at fair value through profit or loss.

(iii) Financial liabilities at amortised cost

This is the category most relevant to the Group and the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.

This category generally applies to interest-bearing loans and borrowings and lease liabilities. For more information, refer to Note 29 and Note 32.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

(c) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated and separate statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.


4.19 Derivative financial instruments and hedging activities

Initial recognition and subsequent measurement

The Group uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

For the purpose of hedge accounting, hedges are classified as:

• Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment;

• Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment; and

• Hedges of a net investment in a foreign operation.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:

• There is ‘an economic relationship’ between the hedged item and the hedging instrument.• The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship.• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item

that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.

Cash flow hedge

The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit or loss. The cash flow hedge reserve is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair value of the hedged item.

The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is removed from the separate component of equity and included in the initial cost or other carrying amount of the hedged asset or liability. This is not a reclassification adjustment and will not be recognised in OCI for the period. This also applies where the hedged forecast transaction of a non-financial asset or non-financial liability subsequently becomes a firm commitment for which fair value hedge accounting is applied.

For any other cash flow hedges, the amount accumulated in OCI is reclassified to profit or loss as a reclassification adjustment in the same period or periods during which the hedged cash flows affect profit or loss.

If cash flow hedge accounting is discontinued, the amount that has been accumulated in OCI must remain in accumulated OCI if the hedged future cash flows are still expected to occur. Otherwise, the amount will be immediately reclassified to profit or loss as a reclassification adjustment. After discontinuation, once the hedged cash flow occurs, any amount remaining in accumulated OCI must be accounted for depending on the nature of the underlying transaction as described above.


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4.20 Cash and bank balances

Cash and bank balances in the statements of financial position comprise cash at banks and on hand and short-term deposits.

For the purpose of the statements of cash flows, cash and cash equivalents consist of cash and short-term deposits with a maturity of three months or less excluding deposits pledged with banks that are not available for use.

4.21 Equity instruments and related expenses

An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company after deducting all of its liabilities. Ordinary shares and Perpetual Sukuk are classified as equity instruments.

Dividends on ordinary shares and distribution on Perpetual Sukuk are recognised in equity in the period in which they are declared.

The transaction costs of an equity transaction are accounted for as a deduction from equity, net of tax. Equity transaction costs comprise only those incremental external costs directly attributable to the equity transaction which would otherwise have been avoided.

4.22 Treasury shares

Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s and the Company’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognised in the retained earnings.

4.23 Cash dividend and non-cash distribution to equity holders of the Company

The Company recognises a liability to make cash or non-cash distributions to equity holders of the parent when the distribution is authorised and the distribution is no longer at the discretion of the Company. A distribution is authorised when it is approved by the Board of Directors and a corresponding amount is recognised directly in equity.

Non-cash distributions are measured at the fair value of the assets to be distributed with fair value re-measurement recognised directly in equity.

Upon distribution of non-cash assets, any difference between the carrying amount of the liability and the carrying amount of the assets distributed is recognised in profit or loss.

4.24 Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects that some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the income statements net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.


4.25 Contract liabilities

A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer before the Group transfers the related goods or services. Contract liabilities are recognised as revenue when the Group performs under the contract (i.e. transfers control of the related goods or services to the customer).

4.26 Contingencies

A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the control of the Group and of the Company.

Contingent liabilities and assets are not recognised in the statements of financial position of the Group and of the Company.

4.27 Segment reporting

For management purposes, the Group is organised into operating segments based on their geographical location which are independently managed by the respective segment managers responsible for the performance of the respective segments under their charge. The segment managers report directly to the management of the Group who regularly review the segment results in order to allocate resources to the segments and to assess the segment performance. Additional disclosures on each of these segments are shown in Note 45, including the factors used to identify the reportable segments and the measurement basis of segment information.

4.28 Biological assets

Biological assets comprise immature planted trees and are classified as non-current assets. It is expected to be harvested and sold.

Immature planted trees are reclassified to mature planted trees when they are commercially productive and available for harvest. In general, a paulownia bearer plant takes about 3 years to reach maturity from the time of planting the seedlings to the field.

Biological assets are measured at fair value less costs to sell. Any gains or losses arising from changes in the fair value less costs to sell are recognised in profit or loss.


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5. NEW AND AMENDED STANDARDS AND INTERPRETATIONS

The accounting policies adopted are consistent with those of the previous financial year except for the adoption of the following new/revised MFRSs, amendments to MFRSs and interpretations:

Description

Effective for annual periods beginning

on or after

Amendments to MFRS 3: Definition of a Business 1 January 2020

Amendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform 1 January 2020

Amendments to MFRS 101: Definition of Material 1 January 2020

Amendments to MFRS 108: Definition of Material 1 January 2020

Amendment to MFRS 16: Covid-19-Related Rent Concessions 1 June 2020

The adoption of the above accounting standards, amendments and interpretations, where relevant, did not have any significant impact on the financial performance or position of the Group and of the Company.

6. NEW AND AMENDED STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE

The standards and interpretations that are issued but not yet effective up to the date of issuance of the Group’s and of the Company’s financial statements are discussed below. The Group and the Company intend to adopt these standards, if applicable, when they become effective.

Description

Effective for annual periods beginning

on or after

Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16: Interest Rate Benchmark Reform - Phase 2 1 January 2021

Amendment to MFRS 16: Covid-19-Related Rent Concessions beyond 30 June 2021 1 April 2021

Annual Improvements to MFRS Standards 2018 - 2020 1 January 2022

Amendments to MFRS 3: Reference to the Conceptual Framework 1 January 2022

Amendments to MFRS 116: Property, Plant and Equipment - Proceeds before Intended Use 1 January 2022

Amendments to MFRS 137: Onerous Contracts - Cost of Fulfilling a Contract 1 January 2022

MFRS 17 Insurance Contracts 1 January 2023

Amendments to MFRS 17 Insurance Contracts 1 January 2023

Amendments to MFRS 101: Classification of Liabilities as Current or Non-current 1 January 2023

Amendments to MFRS 101: Disclosure of Accounting Policies 1 January 2023

Amendments to MFRS 108: Definition of Accounting Estimates 1 January 2023

Amendments to MFRS 112: Deferred Tax related to Assets and Liabilities arising from a Single Transaction 1 January 2023

Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred

The Group and the Company will adopt the abovementioned standards, amendments and interpretations, if applicable, when they become effective in the respective financial year. These pronouncements are not expected to have any impact to the financial statements of the Group and of the Company upon their initial application.

7. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Group’s and of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

7.1 Judgements made in applying accounting policies

In the process of applying the Group’s and the Company’s accounting policies, management has not made any critical judgements, apart from those involving estimations, which could have a significant effect on the amounts recognised in the financial statements except as discussed below:

Classification between investment properties and property, plant and equipment

The Group has developed certain criteria based on MFRS 140 in making judgement whether a property qualifies as an investment property. Investment properties are properties held to earn rentals or for capital appreciation or both.

Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is held for use in the production or supply of goods or services or for administrative purposes. If these portions could be sold separately (or leased out separately under a finance lease), the Group would account for the portions separately. If the portions could not be sold separately, the property is an investment property only if an insignificant portion is held for use in the production or supply of goods or services or for administrative purposes. Judgement is made on an individual property basis to determine whether ancillary services are so significant that a property does not qualify as investment property. The Group has determined that its properties held to earn rental income or capital appreciation are investment properties as only an insignificant portion of the properties is used in the production or supply of goods or services or for administrative purposes and ancillary services are not significant to the properties.

7.2 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

(a) Inventories costing

In determining the costing of inventories, management’s estimate is required in determining the basis of valuation for finished goods and work-in-progress which comprise costs of raw materials, direct labour, other direct costs, and the appropriate allocation of overheads based on normal operating capacity.

(b) Impairment of goodwill

Goodwill is tested for impairment at each reporting period and at other times when such indicators exist. This requires an estimation of the value-in-use of the cash-generating units to which goodwill is allocated.

When value-in-use calculations are undertaken, management must estimate future cash flows from the cash-generating unit and choose a suitable discount rate in order to calculate the present values of those cash flows. Further details of the carrying value, the key assumptions applied in the impairment assessment and sensitivity analysis to changes in the assumptions are disclosed in Note 23.


OUR PERFORMANCE


8. REVENUE

(a) Disaggregated revenue information

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Revenue from contracts with customers

Business units by geographical area

Malaysia 13,907,278 6,223,145 - -

Thailand 1,199,387 540,005 - -

The People’s Republic of China 429,918 127,500 - -

Others 824,860 346,777 - -

16,361,443 7,237,427 - -

Revenue from other sources

Management fees from subsidiaries - - 9,411 5,904

Dividend income from subsidiaries - - 6,483,958 1,630,710

- - 6,493,369 1,636,614

Total revenue 16,361,443 7,237,427 6,493,369 1,636,614

Timing of revenue recognition

Goods transferred at a point in time 16,361,443 7,237,427 - -

(b) Performance obligation

The Group is in the business of selling of gloves and other healthcare products.

The performance obligation is satisfied upon transfer of control of the goods to the customers and payment is generally due within 30 to 90 (2020: 30 to 90) days.

The transaction price allocated to the remaining performance obligations (unsatisfied) as at 31 August 2021 and 2020 are as follows:

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Within one year 737,627 879,386 - -

All remaining performance obligations are expected to be recognised within one year.

9. INTEREST INCOME

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Interest income from:

Financial assets at fair value through OCI 3,638 1,006 67 -

Financial assets at amortised cost 7,338 5,456 10,559 5,567

Financial assets at fair value through profit or loss 50,540 17,157 14,192 4,174

Others 59 270 - -

61,575 23,889 24,818 9,741

10. OTHER INCOME

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Realised gain on foreign exchange 20,818 - - 7

Unrealised gain on foreign exchange 9,174 - 3,546 -

Net fair value gain on derivative financial instruments 2,143 1,703 - -

Net gain from fair value remeasurement of investment properties (Note 18) 1,846 - - -

Net fair value gain on investment in debt securities at fair value through profit or loss 2,591 - 929 -

Rental income 7,551 7,286 - -

Gain on disposal of debt securities 3,828 2,845 - -

Gain on disposal of right-of-use assets - 350 - -

Sales of scrap items 10,421 6,354 - -

Insurance claims 196 1,843 - -

Sundry income 24,743 11,831 - -

Allowance for inventories written back - 904 - -

83,311 33,116 4,475 7


OUR PERFORMANCE


11. PROFIT BEFORE TAX

The following items have been charged/(credited) in arriving at profit before tax:

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Auditors’ remuneration:

Ernst & Young PLT

- Statutory audit

- Current year 622 499 80 80

- Under provision in prior year 5 - - -

- Other services 1,718 192 1,718 112

Member firm of Ernst & Young Global Limited

- Other services 556 - 556 -

Other auditors

- Statutory audit

- Current year 529 551 - -

- Under provision in prior year 22 80 - -

- Other services 6 - - -

Inventories written off 32,709 - - -

Allowance for inventories written down 80,558 - - -

Bad debts written off 124 573 - -

Depreciation of property, plant and equipment (Note 16) 296,718 237,352 - -


Amortisation of intangible assets (Note 23) 3,731 3,683 - -

Direct operating expenses arising from investment properties

- Rental generating property 3,114 2,714 - -

Impairment loss on investment in subsidiaries (Note 19) - - 8,723 -

Net loss on foreign exchange

- Realised - 80,949 515 -

- Unrealised - 786 - -

Loss on disposal of property, plant and equipment 2 353 - -

Remediation costs (Note 48(b)) 13,924 135,790 - -

Legal and other professional fees 43,191 23,343 27,572 2,038

Net reversal of allowance for expected credit loss (Note 25) (13) (227) - -

Impairment loss on other receivables - - 3,249 -

Property, plant and equipment written off 44,243 20,223 - -

12. EMPLOYEE BENEFITS EXPENSES

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Wages and salaries 876,691 608,509 5,275 3,626

Social security costs 11,595 9,013 2 2

Pension costs - defined contribution plan 45,453 31,863 429 412

Share options granted under ESOS 33,983 7,404 2,072 904

Shares granted under ESGP 8,641 1,128 142 134

Other staff related expenses 63,944 36,014 210 184

Executive directors’ fees

- Company 520 520 520 520

- Subsidiaries 55 49 - -

1,040,882 694,500 8,650 5,782

Included in employee benefits expenses of the Group and of the Company are executive directors’ remuneration amounting to RM8,489,000 (2020: RM6,920,000) and RM6,432,000 (2020: RM5,288,000) respectively.

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Directors’ remuneration

Directors of the Company

Executive:

Salaries and other emoluments 5,380 5,229 3,661 3,693

Pension costs - defined contribution plan 613 430 419 400

Social security contributions 48 2 1 1

Share options granted under ESOS 1,757 629 1,757 597

Shares granted under ESGP 68 - - -

Fees 520 520 520 520

Benefits-in-kind 103 110 74 77

8,489 6,920 6,432 5,288

Non-executive:

Salaries and other emoluments 517 442 220 186

Fees 1,312 1,589 1,312 1,589

1,829 2,031 1,532 1,775

Analysis excluding benefits-in-kind:

Total executive directors’ remuneration 8,386 6,810 6,358 5,211

Total non-executive directors’ remuneration 1,829 2,031 1,532 1,775

Total directors’ remuneration (excluding benefits-in-kind) 10,215 8,841 7,890 6,986


Total directors’ remuneration (including benefits-in-kind) 10,318 8,951 7,964 7,063


OUR PERFORMANCE


12. EMPLOYEE BENEFITS EXPENSES (CONT’D)

The remuneration of directors is set out below:

Fees RM’000

Wages andsalaries RM’000

Performancerelatedbonus

RM’000

Staff welfareexpenses

RM’000

Share awardscheme RM’000

TotalRM’000

2021


Executive 520 5,182 198 764 1,825 8,489

Non-executive 1,312 517 - - - 1,829

1,832 5,699 198 764 1,825 10,318

2020


Executive 520 4,925 304 542 629 6,920

Non-executive 1,589 442 - - - 2,031

2,109 5,367 304 542 629 8,951 The remuneration of the directors of the subsidiaries during the financial years ended 31 August 2021 and 2020 is set as

below:

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Executive:

Salaries and other emoluments 4,101 3,985 - -

Pension costs - defined contribution plan 248 289 - -

Social security contributions 42 10 - -

Share options granted under ESOS 584 113 - -

Shares granted under ESGP 28 1 - -

Fees 55 49 - -

Benefits-in-kind 75 139 - -

5,133 4,586 - -

Non-executive:

Fees 2 2 - -

13. FIVE HIGHEST PAID EMPLOYEES The five highest paid employees included 4 (2020: 4) directors, details of whose remuneration are set out in Note 12 above.

Details of the remuneration of the remaining highest paid employee who is neither a director nor chief executive of the Company are as follows:

2021 RM’000

2020 RM’000

Salaries, bonuses, allowances and benefits-in-kind 678 623

Equity-settled share based payment expense 283 127

Pension costs - defined contribution plan 78 72

1,039 822

The number of non-director and non-chief executive highest paid employees of the Group whose remuneration fell within the following bands is as follows:

Group

2021 2020

RM500,001 to RM1,000,000 - 1

RM1,000,001 to RM1,500,000 1 -

1 1

14. INCOME TAX EXPENSE

Major components of income tax expense

The major components of income tax expense for the financial years ended 31 August 2021 and 2020 are as follows:

Group Company

2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000

Current income tax:

- Malaysian income tax 1,937,525 314,913 3,049 213

- Foreign tax 202,958 46,765 - -

- Real property gain tax (“RPGT”) - 54 - -

- Under/(over) provision in respect of previous years 17,146 (5,903) 983 4

2,157,629 355,829 4,032 217

Deferred income tax (Note 21):

- Relating to origination and reversal of temporary differences 26,172 18,212 - -

- Under provision in respect of previous years 26,020 2,680 - -

52,192 20,892 - -

Income tax expense recognised in profit or loss 2,209,821 376,721 4,032 217


OUR PERFORMANCE


14. INCOME TAX EXPENSE (CONT’D)

Reconciliation between tax expense and accounting profit

The reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the financial years ended 31 August 2021 and 2020 are as follows:

Group Company

2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000

Profit before tax 10,033,813 2,165,551 6,465,382 1,637,339

Tax at Malaysian statutory tax rate of 24% (2020: 24%) 2,408,115 519,732 1,551,692 392,961

Adjustments:

Different tax rates in other countries (24,341) (10,954) - -

Effects of tax incentives claimed by foreign subsidiaries (58,790) (14,121) - -

Income not subject to tax (39,407) (7,387) (1,560,011) (393,497)

Effect of change in RPGT rates - (43) - -

Non-deductible expenses 43,576 28,077 11,011 745

Effect of income subject to RPGT - 54 - -

Expenses entitled for double deduction - (1,502) - -

Utilisation of tax incentives (161,134) (45,434) - -

Utilisation of previously unrecognised tax losses and unabsorbed capital allowance (947) (119) - -

Deferred tax assets not recognised in respect of current year’s tax losses and unabsorbed capital allowance 464 477 357 4

Deferred tax assets recognised in respect of previously unrecognised tax losses and unabsorbed capital allowance (131) - - -

Deferred tax assets recognised in respect of reinvestment allowance (115) (89,179) - -

Share of results of an associate (635) 343 - -

Under provision of deferred tax in respect of previous years 26,020 2,680 - -

Under/(over) provision of income tax in respect of previous years 17,146 (5,903) 983 4

Income tax expense recognised in profit or loss 2,209,821 376,721 4,032 217

Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2020: 24%) of the estimated assessable profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.

The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.

15. EARNINGS PER SHARE

(a) Basic

Basic earnings per share is calculated by dividing profit for the year, net of tax, attributable to owners of the parent by the weighted average number of ordinary shares outstanding during the financial year, excluding treasury shares held by the Company.

2021 2020

Profit net of tax attributable to owners of the parent (RM’000) 7,710,327 1,752,584

Weighted average number of ordinary shares in issue (’000) 8,039,195 2,592,546

Bonus issue subsequent to year end, excluding treasury shares held by the Company (’000) - 5,417,395

Adjusted weighted average number of ordinary shares in issue and issuable (’000) 8,039,195 8,009,941

Basic earnings per share (sen)

- before issuance of bonus shares (sen) 95.91 67.60

- after issuance of bonus shares (sen) 95.91 21.88

(b) Diluted

Diluted earnings per share is calculated by dividing profit for the year, net of tax, attributable to owners of the parent (after adjusting for interest on the exchangeable bonds) by the weighted average number of ordinary shares outstanding during the financial year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

2021 2020

Profit net of tax attributable to owners of the parent (RM’000) 7,710,327 1,752,584

Net interest savings from assumed exchange of Guaranteed Exchangeable Bonds at inception (RM’000) - 6,970

Adjusted profit net of tax attributable to owners of the parent (RM’000) 7,710,327 1,759,554

Weighted average number of ordinary shares in issue (’000) 8,039,195 2,592,546

Effect of dilution from:

Assumed exercise of share options (’000) 6,753 5,723

Assumed conversion of exchangeable bonds (’000) - 17,113

8,045,948 2,615,382

Bonus issue subsequent to year end, excluding treasury shares held by the Company (’000) - 5,463,067

Adjusted weighted average number of ordinary shares in issue and issuable (’000) 8,045,948 8,078,449

Diluted earnings per share (sen)

- before issuance of bonus shares (sen) 95.83 67.28

- after issuance of bonus shares (sen) 95.83 21.78

The weighted average number of ordinary shares issued as at 31 August 2020 have been adjusted to reflect the bonus issue of two for every one existing ordinary share which was completed on 7 September 2020.


OUR PERFORMANCE


16. PROPERTY, PLANT AND EQUIPMENT

Land and

buildingsRM’000

Plant and

equipmentRM’000

* Other assets

RM’000

Capitalwork-in- progress

RM’000 Total

RM’000

Group

Cost

At 1 September 2019 1,041,478 1,943,980 246,922 309,488 3,541,868

Additions 116,434 375,235 52,688 262,043 806,400

Reclassification 51,533 217,002 12,739 (281,274) -

Written off (374) (39,339) (2,342) (75) (42,130)

Disposals (1,007) (23,721) (703) (145) (25,576)

Exchange differences (2,448) (6,468) (550) (185) (9,651)

At 31 August 2020/1 September 2020 1,205,616 2,466,689 308,754 289,852 4,270,911

Additions 318,009 363,189 64,908 587,912 1,334,018

Transfer to investment properties (Note 18) (34,752) - - - (34,752)

Transfer to right-of-use assets (Note 17) - - - (4) (4)

Reclassification 21,378 111,705 18,651 (151,734) -

Written off (3,699) (60,925) (3,056) (4,452) (72,132)

Disposals (12) (7,661) (1,384) (14) (9,071)

Exchange differences (2,746) (9,222) (658) (2,535) (15,161)

At 31 August 2021 1,503,794 2,863,775 387,215 719,025 5,473,809

16. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Land and

buildingsRM’000

Plant and

equipmentRM’000

* Other assets

RM’000

Capitalwork-in- progress

RM’000 Total

RM’000

Group

Accumulated depreciation

At 1 September 2019 93,364 852,759 122,605 - 1,068,728

Depreciation charged for the year (Note 11) 14,379 194,051 28,922 - 237,352

Reclassification (37) 603 (566) - -

Written off (32) (19,808) (2,067) - (21,907)

Disposals (342) (17,519) (711) - (18,572)

Exchange differences (348) (4,247) (328) - (4,923)

At 31 August 2020/1 September 2020 106,984 1,005,839 147,855 - 1,260,678

Depreciation charged for the year (Note 11) 16,237 242,977 37,504 - 296,718

Reclassification (2,805) (1,576) 4,381 - -

Written off (554) (25,319) (2,016) - (27,889)

Disposals (3) (6,505) (1,303) - (7,811)

Exchange differences (219) (5,865) (518) - (6,602)

At 31 August 2021 119,640 1,209,551 185,903 - 1,515,094

Net carrying amount

At 31 August 2020 1,098,632 1,460,850 160,899 289,852 3,010,233

At 31 August 2021 1,384,154 1,654,224 201,312 719,025 3,958,715

* Other assets comprise motor vehicles, computer and software systems, office equipment, signages, small value of assets, fire extinguishers, furniture and equipment.


OUR PERFORMANCE



Land and buildings

Freehold land

RM’000 Buildings

RM’000 Total

RM’000

Group

Cost

At 1 September 2019 435,466 606,012 1,041,478

Additions 47,128 69,306 116,434

Reclassification 4,438 47,095 51,533

Written off - (374) (374)

Disposals - (1,007) (1,007)

Exchange differences (767) (1,681) (2,448)

At 31 August 2020/1 September 2020 486,265 719,351 1,205,616

Additions 281,949 36,060 318,009

Transfer to investment properties (Note 18) (34,752) - (34,752)

Reclassification (347) 21,725 21,378

Written off - (3,699) (3,699)

Disposals - (12) (12)

Exchange differences (1,053) (1,693) (2,746)

At 31 August 2021 732,062 771,732 1,503,794

Accumulated depreciation

At 1 September 2019 - 93,364 93,364

Depreciation charged for the year - 14,379 14,379

Reclassification - (37) (37)


Disposals - (342) (342)

Exchange differences - (348) (348)

At 31 August 2020/1 September 2020 - 106,984 106,984

Depreciation charged for the year - 16,237 16,237

Reclassification - (2,805) (2,805)


Disposals - (3) (3)

Exchange differences - (219) (219)

At 31 August 2021 - 119,640 119,640

Net carrying amount

At 31 August 2020 486,265 612,367 1,098,632

At 31 August 2021 732,062 652,092 1,384,154


(a) Included in the property, plant and equipment of the Group are fully depreciated assets which are still in use, with their carrying costs as follows:

2021 2020

RM’000 RM’000

Buildings 397 -

Plant and equipment 417,904 385,030

Other assets 91,931 78,272

510,232 463,302

17. RIGHT-OF-USE ASSETS

LandRM’000

Buildings

RM’000

Plant and

equipmentRM’000

* Other assets

RM’000 Total

RM’000

Group

At 1 September 2019 182,897 13,119 638 1,077 197,731

Additions 9,347 108 - 77 9,532

Depreciation charged for the year (Note 11) (2,674) (1,319) (93) (275) (4,361)

Disposals (304) - (109) - (413)

Exchange differences (448) (616) - - (1,064)

At 31 August 2020/1 September 2020 188,818 11,292 436 879 201,425

Additions 388 8,843 77 - 9,308

Transfer from property, plant and equipment (Note 16) 4 - - - 4

Depreciation charged for the year (Note 11) (3,778) (4,112) (87) (238) (8,215)

Adjustment due to lease modification 10,055 (1,727) - - 8,328

Exchange differences (126) (75) - - (201)

At 31 August 2021 195,361 14,221 426 641 210,649

Company

At 1 September 2019 - - - - -

Additions - 467 - - 467

Depreciation charged for the year (Note 11) - (33) - - (33)

At 31 August 2020/1 September 2020 - 434 - - 434

Depreciation charged for the year (Note 11) - (77) - - (77)

At 31 August 2021 - 357 - - 357

* Other assets comprise motor vehicles and office equipment.


OUR PERFORMANCE


18. INVESTMENT PROPERTIES

2021 RM’000

2020 RM’000

Group

Fair value of investment properties:

At 1 September 2020/2019 163,900 163,900

Additions 26,902 -

Transfer from property, plant and equipment (Note 16) 34,752 -

Net gain from fair value remeasurement (Note 10) 1,846 -

At 31 August 227,400 163,900

Rental income arising from investment properties is RM3,789,000 (2020: RM4,747,000). Direct operating expenses arising from investment properties are disclosed in Note 11.

Reconciliation of fair value:

BuildingRM’000

Freeholdland

RM’000 Total

RM’000

Group

At 1 September 2019/31 August 2020/1 September 2020 136,300 27,600 163,900

Additions - 26,902 26,902

Transfer from property, plant and equipment (Note 16) - 34,752 34,752

Net gain from fair value remeasurement (Note 10) - 1,846 1,846

At 31 August 2021 136,300 91,100 227,400

Fair value hierarchy disclosures for investment properties are in Note 41(ii).

The fair value of investment properties were determined based on valuations performed by registered independent valuers using the following methods:

(a) Comparison method

Fair value is arrived at by reference to market evidence of transaction prices for similar properties, adjustments are made to account for factors such as differences in location, age, size and type of property.

An upward/(downward) change in the adjustments for factors such as differences in location, age, size and type of property will result in a higher/(lower) fair value of the investment properties.

18. INVESTMENT PROPERTIES (CONT’D)

The fair value of investment properties were determined based on valuations performed by registered independent valuers using the following methods (cont’d):

(b) Investment method

This method considers the present value of net rental income to be generated from the property, taking into account the expected rental growth rate, occupancy rate and lease incentive. This net rental income is discounted at a risk-adjusted discount rate to arrive at its present value. The key inputs to the valuation of investment properties are as follows:

Valuationtechnique

Significant unobservableinputs

Range

2021 2020

Freehold land and building

Investment method

(Discounted cash flow method)

Estimated rental value per square foot per month

RM4.50 toRM5.20

RM4.50 toRM5.50

Term yield rate 6.5% 6.5%

Occupancy rate 88.0% 92.0%

Long term vacancy rate 12.0% 10.0%

Reversionary yield rate 7.0% 7.0%

Using the discounted cash flows method, fair value is estimated using assumptions regarding the benefits and liabilities of ownership over the asset’s life including an exit or terminal value. This method involves the projection of a series of cash flows on a real property interest. To this projected cash flow series, a market-derived discount rate is applied to establish the present value of the income stream associated with the asset. The exit yield is normally separately determined and differs from the discount rate.

The duration of the cash flows and the specific timing of inflows and outflows are determined by events such as rent reviews, lease renewal and related re-letting, redevelopment, or refurbishment. The appropriate duration is typically driven by market behaviour that is a characteristic of the class of real property. Periodic cash flow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance cost, agent and commission costs and other operating and management expenses. The series of periodic net operating income, along with an estimate of the terminal value anticipated at the end of the projection period, is then discounted.

Significant increase/(decrease) in estimated rental value in isolation would result in a significantly higher/(lower) fair value of the property. Significant increases/(decreases) in the long term vacancy rate and yield rates in isolation would result in a significantly lower/(higher) fair value.

Generally, a change in the assumption made for the estimated rental value is accompanied by a directionally similar change in the rent growth per annum and discount rate (and exit yield), and an opposite change in the long term vacancy rate.


OUR PERFORMANCE


19. INVESTMENT IN SUBSIDIARIES

Company

2021 RM’000

2020 RM’000

Unquoted shares, at cost:

- In Malaysia 2,043,250 1,618,773

Less: Accumulated impairment losses (13,568) (4,845)

2,029,682 1,613,928

- Outside Malaysia 3,728 3,728

2,033,410 1,617,656

Movement in accumulated impairment losses:

Company

2021 RM’000

2020 RM’000

At 1 September 2020/2019 (4,845) (4,845)

Impairment losses (Note 11) (8,723) -

At 31 August (13,568) (4,845)

In the financial year ended 31 August 2021, the Company made an allowance for impairment loss on investments in Great Glove (Malaysia) Sdn. Bhd. and Top Glove Labuan Ltd. of RM500,000 and RM8,223,000 respectively. The allowance was made after considering the measurable decrease in the recoverable amount of the investments.

(a) Incorporation of TG Worldwide Sdn. Bhd. (“TG Worldwide”)

On 18 August 2021, the Company incorporated TG Worldwide in Malaysia under the Companies Act 2016 with an issued and paid-up capital of RM1.00 comprising 1 ordinary share. The Company owns the entire issued and paid-up share capital of TG Worldwide upon which, TG Worldwide became a wholly-owned subsidiary of the Company.

(b) Acquisition of additional equity interest in subsidiaries

(i) Top Care Sdn. Bhd.

On 26 February 2021, Top Care Sdn. Bhd., a wholly-owned subsidiary of the Company had increased its share capital from RM685,653,000 to RM1,101,907,000.

(ii) Top Glove Labuan Ltd.

On 8 March 2021, Top Glove Labuan Ltd., a wholly-owned subsidiary of the Company had increased its share capital from RM4 to RM8,223,000.

19. INVESTMENT IN SUBSIDIARIES (CONT’D)

Details of the subsidiaries are as follows:

Name

Country ofincorporation/principal place

of business

Proportion of ownership interest (%)

Principal activities2021 2020

Held by the Company:

Top Glove Sdn. Bhd.* Malaysia 100 100 Manufacturing and trading of gloves

TG Medical Sdn. Bhd.## Malaysia 100 100 Manufacturing and trading of examination, surgical and nitrile gloves, general trading and investment holding

Great Glove (Malaysia) Sdn. Bhd.#

Malaysia 100 100 Company temporarily ceased business operation

Top Glove Engineering Sdn. Bhd.#

Malaysia 100 100 Manufacturing and supply of engineering parts and general contractors of all kinds of rubber gloves machinery

TG Medical (U.S.A.), Inc.# United States of America

100 100 Trading of gloves

Top Quality Glove Sdn. Bhd.*

Malaysia 100 100 Manufacturing and trading of gloves, rubber products and cast polyethylene

Top Care Sdn. Bhd.* Malaysia 100 100 Investment holding

GMP Medicare Sdn. Bhd.* Malaysia 100 100 Manufacturing and trading of gloves and rubber products and general trading

Eastern Press Sdn. Bhd.# Malaysia 100 100 Manufacturing of packaging materials, boxes and cartons

Top Feel Sdn. Bhd.# Malaysia 100 100 Manufacture and sale of condoms, rubber related products, and disposable and medical face masks

Top Glove Labuan Ltd.# Malaysia 100 100 Investment holding

Top Glove Global Sdn. Bhd.#

Malaysia 100 100 Provision of management services

TG Healthcare Sdn. Bhd.# Malaysia 100 100 Manufacturing and trading of personal care and home care products

TG Worldwide** Malaysia 100 - Trading and provision of value added services


OUR PERFORMANCE



Details of the subsidiaries are as follows (cont’d):

Name


of business



Held through Top Glove Sdn. Bhd.:

Great Glove (Thailand) Co. Ltd.#

Thailand 74 74 Manufacturing and trading of gloves

Top Glove Medical (Thailand) Co. Ltd.#^

Thailand 100 100 Manufacturing and trading of gloves

Top Glove Technology (Thailand) Co. Ltd.#

Thailand 100 100 Producing and selling rubber products

B Tech Industry Co. Ltd.# Thailand 100 100 Producing and selling concentrate latex

Top Quality Gloves (Thailand) Co. Ltd.#

Thailand 100 100 Dormant

Top Glove Europe GmbH# Germany 97.5 97.5 Trading of gloves

Great Glove (Xinghua) Co. Ltd.#

The People’s Republic of

China

100 100 Manufacturing and trading of gloves

TG Medical Suzhou Co. Ltd.#

The People’s Republic of

China

100 100 Trading of gloves

Top Glove International Sdn. Bhd.#

Malaysia 100 100 Research and development on gloves and rubber goods and provision of analytical services

Top Glove Properties Sdn. Bhd.#

Malaysia 100 100 Property investment, consultancy services and electrical engineering works

Medi-Flex Pte. Ltd.# Singapore/Malaysia

100 100 Investment holding

BestStar Enterprise Ltd.* The British Virgin Islands/

Malaysia


Flexitech Sdn. Bhd.* Malaysia 100 100 Manufacturing of gloves, general trading, property investment

TG Porcelain Sdn. Bhd.# Malaysia 100 100 Manufacturing of formers

TGGD Medical Clinic Sdn. Bhd.#

Malaysia 75 75 Providing of clinical and specialist medical services, medical related consultancy and advisory services and emergency medical services



Name


of business



Held through Top Glove Sdn. Bhd. (cont’d):

TG FMT Sdn. Bhd.* Malaysia 70 70 Manufacturing and trading of functional fillers

Top Glove Chemicals Sdn. Bhd.#

Malaysia 100 100 Providing advisory services and manufacturing of chemicals and chemical compounds

Top Glove Vietnam Company Limited#

Vietnam 100 100 Manufacturing of vinyl gloves and other products

TG Excellence Berhad* Malaysia 100 100 Special purpose vehicle solely for issuance of Perpetual Sukuk

Top Academy Sdn. Bhd.# Malaysia 100 100 Organise in-house trainings and public trainings/programs

Held through Great Glove (Malaysia) Sdn. Bhd.:

TG Meditech Sdn. Bhd.# Malaysia 100 100 Manufacturing and trading of healthcare products

Held through TG Medical Sdn. Bhd.:

Top Healthy Fitness Sdn. Bhd.#

Malaysia 100 100 Establishing and maintaining of fitness related business, including healthcare, slimming centres, gymnasiums and other related activities

TG Raytech Sdn. Bhd.# Malaysia 98.9 97.5 Providing innovative healthcare related products and service solutions

Top Synthetic Rubber Sdn. Bhd.#

Malaysia 100 100 Manufacturing and trading of chemical products

Held through Great Glove (Xinghua) Co. Ltd.:

TG Medical (Xinghua) Co. Ltd.#

The People’sRepublic of

China

100 100 Trading of gloves and healthcare related products

TG Medical (Putian) Co. Ltd.#

The People’sRepublic of

China

100 100 Trading of gloves and healthcare related products


OUR PERFORMANCE




Name


of business



Held through Top Care Sdn. Bhd.:

Best Advance Resources Limited#

Malaysia 100 100 Investment holding

Green Resources Limited# Malaysia 100 100 Investment holding

Aspion Sdn. Bhd.* Malaysia 100 100 Investment holding

TG Efficient Sdn. Bhd.** Malaysia 100 - Manufacturing of rubber gloves

Held through Top Feel Sdn. Bhd.:

Duramedical Sdn. Bhd.# Malaysia 85 85 Manufacturing of rubber dental dams and exercise bands

Held through Best Advance Resources Limited:

PT. Topglove Indonesia#^^ Indonesia 100 100 Providing management services in plantation sector and processing of plantation produce

Held through PT. Topglove Indonesia:

PT. Agro Pratama Sejahtera#

Indonesia 95 95 Industrial Forest Plantation

Held through PT. Agro Pratama Sejahtera:

PT. Top Green Forestry#Ω Indonesia 57 57 Forestry and Industry

Held through Aspion Sdn. Bhd.:

Adventa Health Sdn. Bhd.* Malaysia 100 100 Distribution of medical gloves and other hospital related products

Terang Nusa (Malaysia) Sdn. Bhd.*

Malaysia 100 100 Manufacturing and distribution of sterile surgical gloves

Cytotec (M) Sdn. Bhd.* Malaysia 100 100 Generation and supply of energy and electricity using biomass technology

Purnabina Sdn. Bhd.*^^^ Malaysia 97.2 97.2 Manufacturing and distribution of medical gloves

Sentienx Sdn. Bhd.* Malaysia 100 100 Manufacturing and distribution of medical gloves and synthetic latex



Name


of business



Held through Aspion Sdn. Bhd. (cont’d):

Terang Nusa Sdn. Bhd.* Malaysia 100 100 Dormant

Ulma International GmbH@ Germany 100 100 Distribution of medical gloves and other hospital related products

Suizze Health Ltd# Hong Kong/ Malaysia


Held through GMP Medicare Sdn. Bhd.:

TG Ecommerce Sdn. Bhd.# Malaysia 100 100 E-commerce activities for glove trading and other healthcare products

Held through Suizze Health Ltd:

Kevenoll Do Brasil Produtos Medicos Hospitalares LTDA#^^^^

Brazil 100 100 Distribution of medical products and medical devices

Held through Top Glove Properties Sdn. Bhd.:

Healthy Hostel Sdn. Bhd.# Malaysia 100 - Provision of accommodation services

* Audited by Ernst & Young PLT# Audited by firms other than Ernst & Young PLT## Audited by firms other than Ernst & Young PLT for the financial year ended 31 August 2020, and audited by Ernst &

Young PLT since the financial year ended 31 August 2021** No auditors’ report on the financial statements was issued as it was newly incorporated during the financial year@ Statutory audit is not required under local regulations

^ The total equity interests held by the Group is 100% and it is held by the following subsidiaries:

2021 2020

(i) Top Glove Sdn. Bhd. 61.5% 61.5%

(ii) TG Medical Sdn. Bhd. 38.5% 38.5%

^^ The total equity interests held by the Group is 100% and it is held by the following subsidiaries:

2021 2020

(i) Best Advance Resources Limited 99.9% 99.9%

(ii) Green Resources Limited 0.1% 0.1%


OUR PERFORMANCE



^^^ The total equity interests held by the Group is 97.2% and it is held by the following subsidiaries:

2021 2020

(i) Aspion Sdn. Bhd. 95.2% 95.2%

(ii) Terang Nusa (Malaysia) Sdn. Bhd. 2.0% 2.0%

^^^^ The total equity interests held by the Group is 100% and it is held by the following subsidiaries:

2021 2020

(i) Aspion Sdn. Bhd. 0.1% 0.1%

(ii) Suizze Health Ltd 99.9% 99.9%

Ω The total equity interests held by the Group is 57% and it is held by the following subsidiary:

2021 2020

PT. Agro Pratama Sejahtera 60.0% 60.0%

Changes in group structure

(a) Incorporation of Healthy Hostel Sdn. Bhd. (“Healthy Hostel”)

On 22 December 2020, the Company, through its wholly-owned subsidiary, Top Glove Properties Sdn. Bhd., incorporated Healthy Hostel under the Companies Act 2016 with an issued and paid up capital of RM1.00 comprising 1 ordinary share. Top Glove Properties Sdn. Bhd. owns the entire issued and paid-up share capital of Healthy Hostel upon which, Healthy Hostel became a wholly-owned indirect subsidiary of the Company.

(b) Incorporation of TG Efficient Sdn. Bhd. (“TG Efficient”)

On 30 June 2021, the Company, through its wholly-owned subsidiary, Top Care Sdn. Bhd., incorporated TG Efficient under the Companies Act 2016 with an issued and paid up capital of RM10,000 comprising 10,000 ordinary shares. Top Care Sdn. Bhd. owns the entire issued and paid-up share capital of TG Efficient upon which, TG Efficient became a wholly-owned indirect subsidiary of the Company.

(c) Accretion of equity interest in TG Raytech Sdn. Bhd. (“TG Raytech”)

On 9 April 2021, TG Raytech issued 20,200,000 ordinary shares, which was fully subscribed by TG Medical Sdn. Bhd. for a cash consideration of RM20,200,000, increasing TG Medical Sdn. Bhd.’s equity interest in TG Raytech from 97.5% to 98.9%. The accretion of equity interest is not expected to have material effects on the financial position of the Group.

(d) Non-controlling interests

Summarised financial information for non-controlling interests has not been disclosed as the carrying amount of the non-controlling interests in the consolidated statements of financial position is immaterial to the Group.

20. INVESTMENT IN AN ASSOCIATE

Group

2021 RM’000

2020 RM’000

Unquoted shares at cost 12,204 12,204

Share of post-acquisition reserves 865 (1,779)

13,069 10,425

Details of the associate are as follows:

Name

Country of incorporation/principal place

of business

Proportion ofownership interest (%)


Held through Top Glove Sdn. Bhd.:

Value Add Sdn. Bhd.# Malaysia 27 27 Investment holding

# Audited by a firm other than Ernst & Young PLT

The financial year end of the above associate is non-coterminous with the Group. For the purpose of applying the equity method of accounting, the latest available financial information has been used and appropriate adjustments have been made for the effects of significant transactions between the dates of the latest available financial information and financial years ended 31 August 2021 and 2020.

The summarised financial information of the associate, not adjusted for the proportion of ownership interest held by the Group, is as follows:

Group

2021 RM’000

2020 RM’000

Assets and liabilities

Non-current assets 250,017 250,019

Current assets 5,258 4,285

Total assets 255,275 254,304

Non-current liabilities - (195,955)

Current liabilities (206,870) (19,737)

Total liabilities (206,870) (215,692)

Net assets 48,405 38,612

Results

Revenue 8,027 9,713

Profit/(loss) for the year 9,793 (5,289)


OUR PERFORMANCE


20. INVESTMENT IN AN ASSOCIATE (CONT’D)

Reconciliation of the summarised financial information presented above to the carrying amount of the Group’s interest in an associate:

Group

2021 RM’000

2020 RM’000

Net assets of the associate as at 1 September 2020/2019 38,612 43,901

Profit/(loss) for the year 9,793 (5,289)

Net assets of the associate as at 31 August 48,405 38,612

Group’s share of net assets 13,069 10,425

21. DEFERRED TAX LIABILITIES/(ASSETS)

Deferred income tax as at 31 August 2021 and 2020 relates to the following:

Deferred tax liabilities Deferred tax assets

Property,plant and

equipmentand

right-of-useassets

RM’000 OthersRM’000

Unabsorbedexport

allowance,business

losses,capital and

reinvestmentallowance

RM’000 OthersRM’000

TotalRM’000

Group

At 1 September 2019 150,838 12,512 (62,108) - 101,242

Recognised in profit or loss (Note 14) 33,776 (479) 23,074 (35,479) 20,892

Exchange differences - - - 265 265

At 31 August 2020/1 September 2020 184,614 12,033 (39,034) (35,214) 122,399

Recognised in profit or loss (Note 14) 61,988 (2,130) 20,873 (28,539) 52,192

Exchange differences - - - (464) (464)

At 31 August 2021 246,602 9,903 (18,161) (64,217) 174,127

Presented after appropriate offsetting as follows:

Group

2021 RM’000

2020 RM’000

Deferred tax assets (17,073) (19,589)

Deferred tax liabilities 191,200 141,988

174,127 122,399

21. DEFERRED TAX LIABILITIES/(ASSETS) (CONT’D)

The unabsorbed capital allowances and other deductible temporary differences of the Group are available indefinitely for offsetting against future taxable profits of the respective entities within the Group, subject to tax laws and guidelines issued by the tax authority enacted at the reporting date.

On the other hand, effective from year of assessment 2019 as announced in the annual budget 2019, the unutilised tax losses of the Group as at 31 August 2019 and thereafter will only be available for carry forward for a period of 7 consecutive years. Upon expiry of the 7 years, the unutilised losses will be disregarded.

The unutilised tax losses, unabsorbed capital allowances and other deductible temporary differences applicable to foreign incorporated subsidiaries are pre-determined by and subject to the tax legislation of the respective countries.

Deferred tax assets have not been recognised by the Group and the Company in respect of the following items:

Group Company

2021RM’000

2020 RM’000

2021RM’000

2020 RM’000

Unutilised tax losses 2,871 5,007 1,383 1,383

Unabsorbed capital allowances 294 2,198 21 14

Other deductible temporary differences 1,492 10 1,491 10

4,657 7,215 2,895 1,407

Deferred tax assets have not been recognised by the Group and the Company in respect of these items as it is not probable that taxable profits of the Company and its subsidiaries would be available against which deductible temporary differences could be utilised.

22. INVESTMENT SECURITIES

Group Company

2021RM’000

2020 RM’000

2021RM’000

2020 RM’000

Current

Money market funds (quoted in Malaysia)

- Financial assets at fair value through profit or loss 1,323,297 1,674,631 578,568 709,075

Debt securities (quoted outside Malaysia)

- Financial assets at fair value through OCI 103,423 - 4,288 -

- Financial assets at fair value through profit or loss 203,199 - 93,019 -

306,622 - 97,307 -

1,629,919 1,674,631 675,875 709,075 Non-current Unquoted investments: Golf club membership

- Financial assets at fair value through profit or loss 392 392 - -

Total investment securities 1,630,311 1,675,023 675,875 709,075


OUR PERFORMANCE


23. INTANGIBLE ASSETS

GoodwillRM’000

Customerrelationship

RM’000 PatentRM’000

TotalRM’000

Group

Cost

At 1 September 2019 980,691 40,477 16 1,021,184

Additions - - 32 32

At 31 August 2020/1 September 2020 980,691 40,477 48 1,021,216

Additions - - 207 207

At 31 August 2021 980,691 40,477 255 1,021,423

Accumulated amortisation

At 1 September 2019 - 5,213 1 5,214

Amortisation during the year (Note 11) - 3,680 3 3,683

At 31 August 2020/1 September 2020 - 8,893 4 8,897

Amortisation during the year (Note 11) - 3,680 51 3,731

At 31 August 2021 - 12,573 55 12,628

Net carrying amount

At 31 August 2020 980,691 31,584 44 1,012,319

At 31 August 2021 980,691 27,904 200 1,008,795

Goodwill has been allocated to CGUs identified as follows:

Group

2021 RM’000

2020 RM’000

Aspion Sdn. Bhd. 933,954 933,954

Eastern Press Sdn. Bhd. 21,597 21,597

B Tech Industry Co. Ltd. 14,789 14,789

GMP Medicare Sdn. Bhd. 5,070 5,070

Top Glove Medical (Thailand) Co. Ltd. 2,946 2,946

Duramedical Sdn. Bhd. 2,335 2,335

980,691 980,691

23. INTANGIBLE ASSETS (CONT'D)

Key assumptions used in value-in-use calculations

The recoverable amount of a CGU is determined based on value-in-use calculations using cash flow projections based on financial budgets approved by management.

The following describes each key assumption on which management has based its cash flow projections to undertake impairment testing of goodwill and customer relationship:

(i) Growth rate for the 5 years projection is determined based on the management’s estimate on the industry trends and past performances of the segments, thereafter terminal growth rate is assumed to be 1% (2020: 0%).

(ii) An average pre-tax discount rate of 12.78% (2020: 14.04%) was applied in determining the recoverable amount of the unit. The discount rate was estimated based on a weighted average cost of capital of the Company.

The Group is of the opinion that any reasonably possible change in the above key assumptions would not materially cause the recoverable amount of the CGUs to be lower than its carrying amount, other than the goodwill of Aspion Sdn. Bhd. as disclosed below.

Sensitivity to changes in key assumptions

The sensitivity test indicated that changes in the discount rate used in the value-in-use calculation of Aspion Sdn. Bhd. will result in the recoverable amount to equal to the corresponding carrying amounts of the goodwill and related assets, assuming no change in other variables, is as follows:

Increase in discount rate 2.8%

Customer relationship

The cost of customer relationship with estimated economic definite useful life is amortised over a period of 11 years, with remaining amortisation period of 7 years (2020: 8 years).

Patent

The cost of patent with estimated economic definite useful life is amortised over a period ranging from 9 to 20 years (2020: 9 to 17 years), with remaining amortisation period ranging from 6 to 19 years (2020: 7 to 17 years).


OUR PERFORMANCE


24. INVENTORIES

Group

2021 RM’000

2020 RM’000

Cost

Raw materials 165,069 130,605

Consumables and hardware 4,236 6,610

Work-in-progress 89,876 83,692

Finished goods 734,885 301,551

994,066 522,458

Net realisable value

Raw materials 10,246 214

Work-in-progress 10,077 6,746

Finished goods 130,316 1,311

150,639 8,271

1,144,705 530,729

During the year, the amount of inventories recognised as an expense of the Group amounted to RM5,259 million (2020: RM4,387 million).

25. TRADE AND OTHER RECEIVABLES

Group

2021 RM’000

2020 RM’000

Trade receivables

Third parties 542,485 772,250

Less: Allowance for expected credit loss (1,189) (1,146)

Trade receivables, net 541,296 771,104

Other receivables

Sundry receivables 18,713 19,440

Refundable deposits 6,290 8,261

25,003 27,701

Total trade and other receivables 566,299 798,805

Total trade and other receivables 566,299 798,805

Add: Cash and bank balances (Note 28) 878,446 1,208,559

Financial assets at amortised cost 1,444,745 2,007,364

25. TRADE AND OTHER RECEIVABLES (CONT’D)

Company

2021 RM’000

2020 RM’000

Other receivables

Amounts due from subsidiaries 261,137 605,844

Sundry receivables 548 -

Total other receivables 261,685 605,844

Total other receivables 261,685 605,844

Add: Cash and bank balances (Note 28) 5,555 257,481

Financial assets at amortised cost 267,240 863,325

(a) Trade receivables

Trade receivables are non-interest bearing and are generally on 30 to 90 days (2020: 30 to 90 days) terms. Other credit terms are assessed and approved on a case-by-case basis. They are recognised at their original invoice amounts which represent their fair values on initial recognition.

Ageing analysis of trade receivables

An ageing analysis of the trade receivables as at 31 August 2021 and 2020, based on the invoice date and net of loss allowance, is as follows:

Group

2021 RM’000

2020 RM’000

1 to 30 days 209,863 486,809

31 to 60 days 120,535 201,909

61 to 90 days 113,349 68,215

91 to 120 days 73,199 4,970

More than 121 days 24,350 9,201

541,296 771,104

The ageing analysis by due date of the Group’s trade receivables is as follows:

Group

2021 RM’000

2020 RM’000

Neither past due nor impaired 312,462 597,534

1 to 30 days past due not impaired 54,230 165,854

31 to 60 days past due not impaired 34,092 7,053

61 to 90 days past due not impaired 36,714 208

91 to 120 days past due not impaired 35,653 85

More than 121 days past due not impaired 68,145 370

228,834 173,570

Impaired 1,189 1,146

542,485 772,250


OUR PERFORMANCE


25. TRADE AND OTHER RECEIVABLES (CONT’D)

(a) Trade receivables (cont’d)

Receivables that are neither past due nor impaired

Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good payment records and are mostly regular customers that have been transacting with the Group.

None of the Group’s trade receivables that are neither past due nor impaired have been renegotiated during the financial year.

Receivables that are past due but not impaired

The Group has trade receivables amounting to RM228,834,000 (2020: RM173,570,000) that are past due at the reporting date but not impaired. These receivables are unsecured in nature.

Receivables that are impaired

Receivables that are determined to be impaired at the reporting date when one or more events that have a detrimental impact on the estimated cash flow have occurred. These instances include adverse changes in the financial capability of the debtors and default or significant delays on payments. These receivables are not secured by any collateral or credit enhancements.

Allowance for expected credit loss

For receivables that are individually determined to be credit impaired at the reporting date, individual lifetime expected credit loss is recognised.

For receivables that are not individually credit impaired, the Group uses the provision matrix method to measure lifetime expected credit loss where the receivables are grouped based on shared credit risk characteristics and days past due. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. The Group assessed that the amount of the allowance on these balances is insignificant.

Movements in the allowance accounts:

Group

2021 RM’000

2020 RM’000

At 1 September 2020/2019 1,146 2,809

Written off - (1,184)

Allowance for expected credit loss during the year - 272

Reversal of allowance for expected credit loss during the year (13) (499)

Exchange differences 56 (252)

At 31 August 1,189 1,146

(b) Related party balances

Amounts due from subsidiaries are unsecured, non-interest bearing and are repayable on demand except for an amount of RM241,114,000 (2020: RM605,641,000) which bears interest ranging from 0.54% to 2.62% (2020: 2.63% to 4.00%) per annum

26. OTHER CURRENT ASSETS

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Prepaid operating expenses 39,368 34,337 3,432 11

Goods and service tax refundable 22,414 14,526 - -

Advances to suppliers for raw materials 7,605 7,439 - -

Advances to suppliers for property, plant and equipment 48,787 18,582 - -

118,174 74,884 3,432 11

27. DERIVATIVE FINANCIAL INSTRUMENTS

Group

2021 RM’000

2020 RM’000

Contract/Notional amount Fair value

Contract/Notional amount Fair value

Forward currency contracts

- Derivative financial assets 175,464 2,411 269,247 45

- Derivative financial liabilities 53,947 (230) - -

As at 31 August 2021, the Group held forward currency contracts designated as hedges of expected future sales to customers for which the Group has firm commitments. Forward currency contracts used to hedge the Group’s sales are denominated in United States Dollars (“USD”) and Euro for which firm commitments existed at the reporting date, extending to January 2022 (2020: November 2020).

During the financial year, the Group recognised a gain of RM2,143,000 (2020: gain of RM1,703,000) in profit or loss arising from changes in the fair value of the forward currency contracts.


OUR PERFORMANCE


28. CASH AND BANK BALANCES

Group Company

2021RM’000

2020 RM’000

2021RM’000

2020 RM’000

Cash on hand and at banks 703,921 1,090,505 5,555 257,481

Deposits with licensed banks and other financial institutions 174,525 118,054 - -

Cash and bank balances 878,446 1,208,559 5,555 257,481

Less:

Deposits pledged with banks with maturity of more than 3 months (3,248) (2,883) - -

Monies held in debt service reserve account for credit facility - (729) - -

Cash and cash equivalents 875,198 1,204,947 5,555 257,481 Deposits with licensed banks and other financial institutions of the Group amounting to RM3,248,000

(2020: RM2,883,000) are pledged to banks for credit facilities granted to the Group.

Included in cash and bank balances in the previous financial year was an amount of RM729,000 pledged to a financial institution for credit facility granted to the Group as disclosed in Note 29(a), hence was not available for general use.

The weighted average effective interest rates and maturity days of deposits with licensed banks and other financial institutions at the reporting date were as follows:

Group

2021 2020

Weighted average effective interest rates 1.10% 0.24%

Maturity days 7 to 217 days 21 to 518 days

29. LOANS AND BORROWINGS

Group

Maturity 2021

RM’000 2020

RM’000

Current

Secured:

RM Term loan 2021 - 2,041

Unsecured:

USD Revolving credit 2022 10,308 -

EUR Revolving credit 2022/2021 179,526 176,878

JPY Revolving credit 2022/2021 88,902 91,430

RM Revolving credit 2021 - 1,900

THB Promissory notes 2022/2021 3,203 37,974

EUR Term loan 2022 20,067 -

USD Term loan 2022 6,948 -

RM Term loan 2022/2021 3,750 3,976

312,704 312,158

Total current loans and borrowings 312,704 314,199

Non-current

Secured:

RM Term loan 2023 - 4,220

Unsecured:

RM Term loan 2023/2023 - 2025 938 8,034

EUR Term loan 2025 68,633 64,606

USD Term loan 2025 76,431 30,891

THB Term loan 2025 - 9,026

USD Exchangeable bonds 2024 - 109,563

146,002 222,120

Total non-current loans and borrowings 146,002 226,340

Total loans and borrowings 458,706 540,539

The range of interest rates at the reporting date for borrowings are as follows:

2021 2020

Promissory notes 1.1% 1.1% to 2.0%

Revolving credit 0.3% to 2.0% 0.3% to 3.9%

Term loan 0.8% to 4.4% 0.9% to 4.4%

Exchangeable bonds Nil 3.8%


OUR PERFORMANCE


29. LOANS AND BORROWINGS (CONT’D)

The remaining maturities of the loans and borrowings are as follows:

Group

2021 RM’000

2020 RM’000

On demand or within one year 312,704 314,199

More than one year and less than two years 56,189 134,154

More than two years and less than five years 89,813 89,633

More than five years - 2,553

458,706 540,539

(a) In the previous financial year, the RM term loan of the Group was secured by monies held in debt service reserve account of the Group with a financial institution as disclosed in Note 28.

(b) On 1 March 2019, Top Glove Labuan Ltd., a wholly-owned subsidiary of the Company issued USD200 million (approximately RM814.40 million) in aggregate principal amount of 2.0% Guaranteed Exchangeable Bonds which is due in 2024 (the “Bonds”).

During the year, the principal amount of USD25,646,000 (2020: USD174,354,000) exchangeable bonds were converted into 50,351,869 (2020: 116,339,801) ordinary shares of the Company at the option of the bondholders.

The weighted average effective interest rates as at 31 August 2021 for exchangeable bonds is nil (2020: 3.8%) per annum.

Each bond entitles its registered holder to exchange for fully paid ordinary shares of the Company, at an adjusted exchange price of RM6.10 per share at a fixed exchange rate of USD1.00 = RM4.0703. The exchange price is subject to adjustments in accordance with the terms and conditions of the Bonds as set out in the offering circular dated 20 February 2019.

On 7 September 2020, the Company completed the bonus issue of two for every one existing ordinary share held in the Company, subsequent to which the conversion of exchangeable bonds were at an adjusted exchange price of RM2.03 per share.

The net proceeds from the issue of the Bonds were utilised to refinance the existing debt of the related companies and payment of fees and expenses relating to the Bonds issue.

The principal features of the Bonds which mature on 1 March 2024 (“maturity date”) are as follows:

(i) The Bonds bear interest at the rate of 2.0% calculated semi-annually and payable on 1 March and 1 September each year.

(ii) The Bonds are unconditionally and irrevocably guaranteed by the Company and are subject to negative pledge.

(iii) Redemption price at maturity is 109.53%. The redemption price was determined based on the issue price, coupon rate and yield of the Bonds.

(iv) Early redemption amount An amount which, for each USD1,000 principal amount of such Bonds, together with accrued but unpaid

interest from the immediately preceding interest payment date and after taking into account any interest paid in respect of the Bonds in the preceding periods, represents for the bondholder on the relevant date a gross yield of 3.75% per annum calculated on a semi-annual basis.

29. LOANS AND BORROWINGS (CONT’D)

(b) The principal features of the Bonds which mature on 1 March 2024 (“maturity date”) are as follows (cont’d):

(v) Redemption at the option of issuer At any time on or after 16 March 2022, but not less than seven business days prior to the Maturity Date, in

whole but not in part, at the Early Redemption Amount together with accrued but unpaid interest if the closing price of the Company’s shares on Bursa Malaysia Securities Berhad for each of 20 consecutive trading days in any 30 consecutive trading day period, the last of which occurs not more than 5 trading days prior to the date upon which notice of such redemption was given, is at least 130% of the applicable Early Redemption Amount divided by the Exchange Ratio, in effect on such trading day.

At any time, in whole but not in part, at the Early Redemption Amount together with accrued but unpaid interest in the event the principal amount of the Bonds outstanding is 10% or less of the aggregate principal amount originally issued.

(vi) Redemption at the option of bondholders Upon the occurrence of the following events, the bondholders may be entitled to exercise a right prior to the

maturity date to require the Issuer to redeem all or part of the Bonds in cash:

(a) On 1 March 2022, in whole or in part, at 105.50% of their principal amount together with accrued but unpaid interest.

(b) Following the occurrence of a change of control, the bondholders will have the right at such holder’s option, to require the Issuer to redeem in whole but not in part such holders’ Bonds at their early redemption amount, together with accrued but unpaid interest.

(c) In the event the Company’s shares cease to be listed or admitted to trading on Bursa Malaysia Securities Berhad and are not listed on an Alternative Stock Exchange or, if applicable, cease to be listed or admitted to trading on an Alternative Stock Exchange, or are suspended for a period equal to or exceeding 45 consecutive days on Bursa Malaysia Securities Berhad or an Alternative Stock Exchange, as the case may be, each bondholder shall have the right at such bondholders’ option to require the Issuer to redeem all (but not less than all) of such bondholders’ Bonds at their early redemption amount, together with accrued but unpaid interest.

(vii) Final redemption All Bonds which are not redeemed, exchanged, or purchased and cancelled in the manner allowed pursuant

to the terms and conditions of the Bonds shall be redeemed in cash by the Issuer on 1 March 2024 at the redemption price together with accrued but unpaid interest.


OUR PERFORMANCE


30. TRADE AND OTHER PAYABLES

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Trade payables 228,255 357,057 - -

Other payables

Accrued operating expenses 292,364 273,206 22,935 2,091

Sundry payables 171,742 180,561 125 480

464,106 453,767 23,060 2,571

Total trade and other payables 692,361 810,824 23,060 2,571

Total trade and other payables 692,361 810,824 23,060 2,571

Add: Loans and borrowings (Note 29) 458,706 540,539 - -

Lease liabilities (Note 32) 23,669 11,114 366 438

Total financial liabilities carried at amortised cost 1,174,736 1,362,477 23,426 3,009

(a) Trade payables

An ageing analysis of the trade payables as at 31 August 2021 and 2020, based on the invoice date, is as follows:

Group

2021 RM’000

2020 RM’000

1 to 30 days 160,897 239,090

31 to 60 days 31,094 66,635

61 to 90 days 34,516 43,244

More than 90 days 1,748 8,088

228,255 357,057

These amounts are non-interest bearing. The normal trade credit term granted to the Group ranges from 30 to 90 days (2020: 30 to 90 days).

(b) Other payables

These amounts are non-interest bearing. Other payables are normally settled on an average term of 30 to 90 days (2020: 30 to 90 days).

Included in accrued operating expenses are remediation costs amounting to nil (2020: RM131,391,000) for recruitment fees previously paid by the migrant workers to the agents or other parties. Detailed information in relation to the payment of these fees is disclosed in Note 48(b).

31. CONTRACT LIABILITIES

Contract liabilities represent advance payments received from customers. These advances are refundable to the customers shall the customers choose to cancel their orders.

The movement of contract liabilities is as follows:

Group

2021 RM’000

2020 RM’000

At 1 September 2020/2019 879,386 55,610

Revenue recognised during the year (6,342,444) (2,136,632)

Advance payments received during the year 6,199,058 2,960,536

Exchange differences 1,627 (128)

At 31 August 737,627 879,386

32. LEASE LIABILITIES

Group as a lessee

The Group and the Company have lease contracts for land, buildings, motor vehicles and equipment with lease terms between 2 to 47 years and include extension options.

The Group and the Company also have certain leases of hostels, photocopiers, ambulance and ATM with lease terms of 12 months or less or of low value. The Group and the Company apply the “short-term lease” and “lease of low-value assets” recognition exemptions for these leases.

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

At 1 September 2020/2019 11,114 13,551 438 -

Additions 8,754 77 - 467

Accretion of interest 683 518 16 7

Payments (4,947) (2,248) (88) (36)

Adjustment due to lease modification 8,328 - - -

Exchange differences (263) (784) - -

At 31 August 23,669 11,114 366 438

Analysed into:

Repayable within 12 months 5,542 1,442 74 72

Repayable after 12 months 18,127 9,672 292 366

23,669 11,114 366 438

The maturity analysis of lease liabilities for the financial years ended 31 August 2021 and 2020 is disclosed in Note 42(c).


OUR PERFORMANCE


32. LEASE LIABILITIES (CONT’D)

The amounts recognised in profit or loss in relation to leases are as follows:

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000


Interest expense on lease liabilities 683 518 16 7

Expenses related to short-term, low-value and variable leases 9,580 6,267 - 51

Total amount recognised in profit or loss 18,478 11,146 93 91

The Group and the Company had total cash outflows for leases amounting to RM14,527,000 and RM88,000 respectively for the financial year ended 31 August 2021 (2020: RM8,515,000 and RM87,000 respectively).

The Group has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s business needs.

33. SHARE CAPITAL

Group and Company

2021 2020

Number of shares

’000

Monetary value

RM’000

Number of shares

’000

Monetary value

RM’000

Issued and fully paid

At 1 September 2020/2019 2,708,825 1,675,704 2,560,589 788,326

Bonus issue 5,418,718 - - -

Exercise of ESOS (Note 38(i)) 28,969 58,061 31,896 167,230

Conversion of exchangeable bonds to ordinary shares (Note 29) 50,352 104,387 116,340 709,673

Transfer from share option reserve - 4,002 - 10,892

Transaction cost - (500) - (417)

At 31 August 8,206,864 1,841,654 2,708,825 1,675,704

During the financial year, the Company increased its issued and paid-up ordinary share capital by way of:

(i) issuance of 5,418,718,116 ordinary shares through a bonus issue on the basis of two new ordinary shares for every one existing ordinary share held in the Company, by way of nil consideration;

(ii) issuance of 28,968,800 (2020: 31,896,100) ordinary shares pursuant to the Company’s ESOS at an exercise price between RM1.54 to RM6.55 (2020: between RM4.63 to RM12.75) per ordinary share; and

(iii) conversion of 50,351,869 (2020: 116,339,801) units of 5-year Guaranteed Exchangeable Bonds 2019/2024 (equivalent to RM104,387,000 (2020: RM709,673,000) based on a settlement rate of USD1.00:RM4.0703) into 533,809 and 49,818,060 new ordinary shares at an adjusted exchange price of RM6.10 and RM2.03 respectively (2020: 116,339,801 new ordinary shares at an adjusted exchange price of RM6.10).

The new ordinary shares issued during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company.

34. TREASURY SHARES

This amount relates to the acquisition cost of treasury shares net of the proceeds received on their subsequent sale or issuance.

The shareholders of the Company, by an ordinary resolution passed in the annual general meeting held on 8 January 2020, renewed their approval for the Company's plan to repurchase its own shares. The directors of the Company are committed in enhancing the value of the Company to its shareholders and believe that the Share Buy Back can be applied in the best interests of the Company and its shareholders.

During the financial year:

(i) the Company repurchased 200,167,700 ordinary shares from the open market at an average price of RM7.11 per share. The total consideration paid for the repurchase including transaction costs was RM1,424,095,000.

(ii) the Company transferred 2,238,700 treasury shares to eligible employees under the ESGP at an average market price of RM3.86 per share. The total transferred treasury shares net of transaction costs were RM8,641,000. The difference between the transferred treasury shares and the cost of the treasury shares which amounted to RM3,699,000 was recognised in equity.

In the previous financial year, the Company transferred 114,000 treasury shares to eligible employees under the ESGP at an average market price of RM9.89 per share. The total transferred treasury shares net of transaction costs were RM1,128,000. The difference between the transferred treasury shares and the cost of the treasury shares which amounted to RM866,000 was recognised in equity.

Of the total 8,206,864,000 (2020: 2,708,825,000) issued and fully paid ordinary shares as at 31 August 2021, 199,913,800 (2020: 661,600) are held as treasury shares by the Company. As at 31 August 2021, the number of outstanding ordinary shares in issue and fully paid is therefore 8,006,950,200 (2020: 2,708,163,400) ordinary shares.


OUR PERFORMANCE


35. OTHER RESERVES

Foreign exchange

reserve RM’000

Legal reserve RM’000

Share option

reserve RM’000

Cash flow hedge

reserve RM’000

Fair value adjustment

reserve RM’000

Others reserve RM’000

Total RM’000

Group

At 1 September 2019 51,628 10,088 8,995 (80,291) 2,084 5,926 (1,570)

Other comprehensive (loss)/income (7,079) - - 77,601 (2,084) - 68,438

Share options granted under ESOS - - 7,404 - - - 7,404

Transfer from share option reserve - - (11,080) - - - (11,080)

Transfer from retained earnings - - - - - 1,848 1,848

At 31 August 2020/ 1 September 2020 44,549 10,088 5,319 (2,690) - 7,774 65,040

Other comprehensive (loss)/income (19,621) - - 2,690 1,844 - (15,087)

Share options granted under ESOS - - 33,983 - - - 33,983

Transfer from share option reserve - - (4,706) - - - (4,706)

Transfer from retained earnings - - - - - 4,952 4,952

Transfer to legal reserve - 17,481 - - - - 17,481

At 31 August 2021 24,928 27,569 34,596 - 1,844 12,726 101,663

Share option reserve RM’000

Fair value adjustment

reserve RM’000

Total RM’000

Company

At 1 September 2019 8,995 - 8,995

Share options granted under ESOS 7,404 - 7,404

Transfer from share option reserve (11,080) - (11,080)

At 31 August 2020/1 September 2020 5,319 - 5,319

Other comprehensive income - 144 144

Share options granted under ESOS 33,983 - 33,983

Transfer from share option reserve (4,706) - (4,706)

At 31 August 2021 34,596 144 34,740

35. OTHER RESERVES (CONT’D)

(a) Foreign exchange reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net investment in foreign operations, where the monetary item is denominated in either the functional currency of the reporting entity or the foreign operation.

(b) Legal reserve

This represents a general reserve provided for in respect of subsidiaries incorporated in the People’s Republic of China and Thailand.

Under the Wholly Foreign Owned Enterprise (“WFOE”) Law in the People’s Republic of China, at least 10% of the net profit after taxation in each financial year must be credited to this reserve, until it reaches 50% of the registered paid up capital of the subsidiary.

Under the Civil and Commercial Code in Thailand, a company is required to set aside a statutory reserve equal to at least 5% of its net profit each time when the company pays out a dividend, until it reaches 10% of the registered share capital of the company.

(c) Share option reserve

The share option reserve represents the equity-settled share options granted to employees. This reserve is made up of the cumulative value of services received from employees recorded on grant of share options.

(d) Fair value adjustment reserve

Fair value adjustment reserve represents the differences arising from the conversion of bond reserves to fair value through OCI.

(e) Cash flow hedge reserve

The cash flow hedge reserve represents the effective portion of the cash flow hedge relationships incurred at the reporting date.


OUR PERFORMANCE


36. PERPETUAL SUKUK

Group

2021 RM’000

2020 RM’000

Issuance nominal value 1,300,000 1,300,000

Less: Transaction cost (4,738) (4,738)

Net nominal value 1,295,262 1,295,262

On 22 January 2020, the Company’s wholly-owned subsidiary, TG Excellence Berhad (“TGE”) lodged the Perpetual Sukuk Programme with the Securities Commission Malaysia (“SC”). The Perpetual Sukuk Programme, under the Shariah principle of Wakalah Bi Al-Istithmar, is guaranteed by the Company via a subordinated guarantee. The Perpetual Sukuk Programme provides TGE with the flexibility to issue unsecured and subordinated perpetual sukuk from time to time, subject to the aggregate outstanding nominal amount not exceeding RM3.0 billion at any point in time.

On 27 February 2020, TGE completed the first issuance with a nominal value of RM1.3 billion under the Perpetual Sukuk Programme. The Perpetual Sukuk was issued with a tenure of perpetual non-callable 5 years with an initial periodic distribution rate of 3.95% per annum.

The proceeds raised from the issuance of the Perpetual Sukuk are allowed to be utilised by the Group to refinance the existing financing and debt obligations, repayment of intercompany borrowings, capital expenditure, working capital requirements and general corporate purposes. All utilisation of proceeds shall be Shariah-compliant.

Under the Perpetual Sukuk Programme, TGE may, at its sole discretion, redeem the Perpetual Sukuk pursuant to certain redemption events.

There are no events of default or dissolution events which will entitle the sukuk holders to declare any or all amounts under the Perpetual Sukuk Programme to be immediately due and payable, save for certain enforcement events, as described below.

The Perpetual Sukuk Programme has been accorded an indicative credit rating of AA-IS (cg) by Malaysian Rating Corporation Berhad.

The salient features of the Perpetual Sukuk are as follows:

(a) The Perpetual Sukuk shall constitute direct, unsecured, unconditional and subordinated obligations of TGE and shall at all times rank (i) below all present and future creditors of TGE; (ii) pari passu with any instrument issued or guaranteed by TGE that ranks pari passu with the Perpetual Sukuk; and (iii) ahead of any class of TGE's share capital, including without limitation, any ordinary shares.

(b) Being perpetual in nature, TGE has a call option to redeem the Perpetual Sukuk under the following circumstances:

(i) Optional redemption at the first call date of the Perpetual Sukuk and on each periodic distribution date of the expected distribution amount thereafter.

(ii) Accounting event - change in accounting standards resulting in Perpetual Sukuk no longer being recognised as an equity instrument.

(iii) Tax event - if the expected periodic distribution of the profit would not be fully tax deductible or TGE become obligated to pay additional tax due to changes in tax laws or regulations.

(iv) Rating event - change in rating methodology by the rating agency that results in a lower equity credit for the relevant tranche of the Perpetual Sukuk.

36. PERPETUAL SUKUK (CONT’D)

The salient features of the Perpetual Sukuk are as follows (cont’d):

(c) The initial periodic distribution rate is 3.95% per annum, subject to reset every 5 years at the prevailing 5-year Malaysian Government Securities rate, initial credit spread of 1.209% and stepped up margin of 1.000%.

(d) The periodic distribution amount is payable five years from the issue date of the respective tranche and every five years thereafter.

(e) TGE may, at its sole discretion, opt to (i) defer the periodic distribution or (ii) further defer any outstanding arrears of deferred periodic distribution, provided that it has not during the last six months declared or paid any dividend or payment or other distributions in respect of or redeem or repurchase its ordinary shares or any other securities of TGE ranking junior to or pari passu with the Perpetual Sukuk. The deferred periodic distribution, if any, will be cumulative and will not earn additional profits (i.e. there will be no compounding of the periodic distribution being deferred). There is no limit as to the number of times the expected periodic amount and the arrears of deferred periodic distribution can be deferred.

(f) Notwithstanding the optional deferral stipulated in (e) above, all outstanding arrears of deferred periodic distribution shall be due and payable within fifteen days from the date TGE declared or paid any dividend or payment or other distributions in respect of or redeem or repurchase its ordinary shares or any other securities of TGE ranking junior to or pari passu with the Perpetual Sukuk.

37. RETAINED EARNINGS

The Company may distribute dividends out of its entire retained earnings as at 31 August 2021 and 2020 under the single tier system.

38. SHARE BASED PAYMENTS

(i) ESOS

The Company’s ESOS is governed by the By-Laws which was approved by the shareholders at the Extraordinary General Meeting held on 9 January 2018 and became effective on 2 August 2018.

The main features of the ESOS are as follows:

(a) The ESOS shall be in force for a period of ten years from the date of the receipt of the last of the requisite approvals.

(b) Eligible persons are employees of the Group (including executive directors) who have been confirmed in the employment of the Group. The eligibility for participation in the ESOS shall be at the discretion of the Options Committee appointed by the Board of Directors.

(c) The total number of shares to be issued under the ESOS shall not exceed in aggregate 10% of the issued and paid up share capital of the Company at any point of time during the tenure of the ESOS.

(d) The option price for each share shall be the 5-days weighted average market price of the underlying shares before the ESOS Options are granted, with either a premium or a discount of not more than ten percent (10%).

(e) No option shall be granted for less than 100 shares to any eligible employee.


OUR PERFORMANCE


38. SHARE BASED PAYMENTS (CONT’D)

(i) ESOS (cont’d)

The main features of the ESOS are as follows (cont’d):

(f) An option granted under the ESOS shall be capable of being exercised by the grantee by notice in writing to the Company commencing from the vest date but before the expiry on 31 May 2028.

(g) All new ordinary shares issued upon exercise of the options granted under the ESOS will rank pari passu in all respect with the existing ordinary shares of the Company other than as may be specified in a resolution approving the distribution of dividends prior to their exercise dates.

(h) No eligible person shall participate at any time in more than one share option scheme implemented by any company within the Group unless otherwise approved by the Options Committee.

(i) The options shall not carry any right to vote at a general meeting of the Company.

The terms of share options outstanding as at end of the financial year are as follows:

Number of share options over the ordinary share

Grantdate

Expiry date

Exercise price

RM

As at 1.9.2020

’000

Balance after

adjustment for bonus

issue* ’000

Granted ’000

Exercised ’000

Lapsed ’000

As at 31.8.2021

’000

2021

2.8.2018 31.5.2028 1.69 1,617.8 4,853.4 - (3,673.4) - 1,180.0

1.2.2019 31.5.2028 1.63 4,061.3 12,183.9 - (10,370.5) - 1,813.4

18.2.2019 31.5.2028 1.63 155.1 465.3 - (83.3) (20.0) 362.0

30.7.2019 31.5.2028 1.54 1,536.3 4,608.9 - (3,040.3) - 1,568.6

20.1.2020 31.5.2028 1.57 2,597.2 7,791.6 - (6,730.8) - 1,060.8

20.5.2020 31.5.2028 3.30 2,507.6 7,522.8 - (4,115.0) (53.3) 3,354.5

1.6.2020 31.5.2028 4.25 62.8 188.4 - (100.7) (10.5) 77.2

31.1.2021 31.5.2028 6.55 - - 64,456.4 (838.8) (1,667.3) 61,950.3

6.8.2021 31.5.2028 3.86 - - 19,089.5 (16.0) (49.0) 19,024.5

12,538.1 37,614.3 83,545.9 (28,968.8) (1,800.1) 90,391.3

* Bonus issue of two for every one existing ordinary share


(i) ESOS (cont’d)

The terms of share options outstanding as at end of the financial year are as follows (cont’d):

Number of share options over the ordinary share

Grantdate

Expiry date

Exercise price

RM

As at 1.9.2019

’000 Granted

’000 Exercised

’000 Lapsed

’000

As at 31.8.2020

’000

2020

2.8.2018 31.5.2028 5.06 5,986.3 - (4,218.0) (150.5) 1,617.8

1.2.2019 31.5.2028 4.90 14,246.6 - (9,916.3) (269.0) 4,061.3

18.2.2019 31.5.2028 4.90 261.8 - (106.7) - 155.1

30.7.2019 31.5.2028 4.63 10,978.9 - (9,231.5) (211.1) 1,536.3

20.1.2020 31.5.2028 4.72 - 8,225.9 (5,628.7) - 2,597.2

24.1.2020 31.5.2028 4.76 - 90.1 (90.1) - -

20.5.2020 31.5.2028 9.89 - 5,120.6 (2,604.8) (8.2) 2,507.6

1.6.2020 31.5.2028 12.75 - 162.8 (100.0) - 62.8

31,473.6 13,599.4 (31,896.1) (638.8) 12,538.1

Details of share options exercised during the financial year and the fair value, at exercise date, of ordinary shares issued are as follows:

Exercise Date

Exercise price

RM

Fair valueof ordinary

shares RM

Numberof share options

’000

Considerations received RM’000

2021

September 2020 - August 2021 1.69 3.68 - 9.60 3,673.4 6,208.0


September 2020 - August 2021 1.63 3.68 - 9.60 83.3 135.8





September 2020 - August 2021 6.55 3.68 - 9.60 838.8 5,494.1


28,968.8 58,060.6


OUR PERFORMANCE



(i) ESOS (cont’d)

Details of share options exercised during the financial year and the fair value, at exercise date, of ordinary shares issued are as follows (cont’d):

Exercise Date

Exercise price

RM

Fair valueof ordinary

shares RM

Numberof share options

’000

Considerations received RM’000

2020








September 2019 - August 2020 12.75 4.25 - 28.40 100.0 1,275.0

31,896.1 167,230.4

Fair value of share options

The fair value of share options granted during the year were estimated by using a binomial option pricing model, taking into account the terms and conditions upon which the options were granted. The fair value of share options measured at grant date and the assumptions are used as follows:

Fair value of share options at the following grant dates (RM):

20 January 2020 0.30

24 January 2020 0.30

20 May 2020 0.91

1 June 2020 1.53

31 January 2021 0.40

6 August 2021 0.43

Weighted average share price (RM) 3.68 - 13.72

Weighted average exercise price (RM) 3.86 - 12.75

Expected volatility (%) 29.64 - 48.60

Expected life (years) 6.82 - 8.37

Risk free interest rate (%) 2.46 - 3.28

Expected dividend yield (%) 1.35 - 17.77

The expected life of the share options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome.


(ii) ESGP

The Company’s ESGP is governed by the By-Laws which was approved by the shareholders at the Extraordinary General Meeting held on 6 January 2016 and became effective on 12 January 2016 and is administered by the ESGP Committee.

Under the ESGP, eligible employees may be granted ESGP Awards comprising shares of the Company. The ESGP Awards, once accepted, will vest without any consideration payable, subject to vesting date(s) and/or vesting conditions as may be determined at the discretion of the ESGP Committee. The ESGP Committee may, at its discretion, decide that any vesting of the Company’s shares comprised in an ESGP Award shall be satisfied through:

(a) the issuance of new shares of the Company;(b) the transfer of existing shares of the Company;(c) settlement in cash; or(d) a combination of any of the above

The main features of the ESGP are as follows:

(a) The aggregate number of shares of the Company which may be awarded under the ESGP and any other schemes involving issuance of new shares of the Company to employees which are still subsisting shall not exceed 10% of the issued and paid-up share capital of the Company (“Plan Size”).

(b) Eligible persons are any employee or executive director of the Group (excluding dormant subsidiaries) who fulfills the eligibility criteria. The eligibility for participation in the ESGP shall be at the discretion of the ESGP Committee appointed by the Board of Directors.

(c) The number of shares comprised in each ESGP Award shall be determined at the discretion of the ESGP Committee after taking into consideration, inter alia, the performance and seniority, years of service and potential for future development of the eligible employees and the employees’ contribution to the Group as well as such other criteria as the ESGP Committee may deem relevant.

(d) The aggregate number of shares that may be allocated to any one participant shall not exceed 10% of the total number of shares to be awarded under the ESGP and any other schemes involving issuance of new shares of the Company which may be implemented from time to time by the Company.

(e) The aggregate maximum allocation to the directors and senior management of the Group (excluding dormant subsidiaries) shall not be more than 75% of the Company’s shares awarded under the ESGP.

(f) The ESGP shall be in force for a period of ten years from the effective date of implementation which is the date the last of the requisite approvals and/or conditions have been obtained and/or complied with.

(g) The shares to be allotted and issued under the ESGP will, upon allotment and issue, rank pari passu in all respects with the existing shares of the Company, save and except that they will not be entitled to any dividends, rights, allotments and/or other distributions in respect of which the entitlement date is prior to the date of allotment and issuance of the new shares.


OUR PERFORMANCE


39. RELATED PARTY TRANSACTIONS

(a) Sale and purchase of goods

In addition to the related party information disclosed elsewhere in the financial statements, the following significant transactions between the Group and related parties took place at terms mutually agreed between the parties during the financial year:

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Gross dividends from subsidiaries - - 6,483,958 1,630,710

Management fees from subsidiaries - - 9,411 5,904

Interest income from subsidiaries - - 10,357 5,567

(b) Compensation of key management personnel

The remuneration of executive directors and other key management personnel during the financial year were as follows:

Group Company

2021 RM’000

2020 RM’000

2021 RM’000

2020 RM’000

Salaries and other emoluments 11,787 10,249 3,661 3,693

Pension costs - defined contribution plan 1,061 809 419 400

Social security contributions 93 14 1 1

Share options granted under ESOS 3,004 910 1,757 597

Shares granted under ESGP 224 1 - -

Fees 575 569 520 520


16,942 12,813 6,432 5,288

40. COMMITMENTS

(a) Capital commitments

Group

2021 RM’000

2020 RM’000

Property, plant and equipment:

Approved and contracted for 1,041,765 413,071

(b) Operating lease arrangements

Group as a lessor

The Group has entered into non-cancellable operating lease agreements on its investment properties and property, plant and equipment portfolio. These leases have remaining non-cancellable lease terms between less than 1 year to 3 years (2020: less than 1 year to 2.5 years). Rental income earned from these investment properties and property, plant and equipment during the financial year is disclosed in Note 10.

The future minimum lease payments receivables under non-cancellable operating leases contracted for as at the reporting date but not recognised as receivables, are as follows:

Group

2021 RM’000

2020 RM’000

Within one year 2,368 2,335

After one year but within two years 1,066 1,349

After two years but within five years 545 387

3,979 4,071


OUR PERFORMANCE


41. FAIR VALUES

(i) Determination of fair value of financial instruments

Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value

The following are classes of financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value:

Note

Trade and other receivables 25

Cash and bank balances 28

Loans and borrowings (current) 29

Loans and borrowings (non-current) 29

Trade and other payables 30

The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values, either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the reporting date.

The fair values of loans and borrowings are estimated by discounting expected future cash flows at market incremental lending rate for similar types of lending, borrowing or leasing arrangements at the reporting date.

Investment securities (current)

Fair value is determined directly by reference to their published market bid price at the reporting date.

Investment securities (non-current)

Fair value is determined based on directors’ estimates using comparable market price of similar golf club memberships.

Derivative financial instruments

Forward currency contracts are valued using a valuation technique with market observable inputs. The most frequently applied valuation techniques include forward pricing, using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates.

41. FAIR VALUES (CONT’D)

(ii) Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Group’s and the Company’s assets and liabilities as at reporting date:

Quoted prices in

active market

(Level 1) RM’000

Significant observable

inputs (Level 2) RM’000

Significant unobservable


Total RM’000

Group

As at 31 August 2021

Assets/(liabilities) measured at fair value

Current

Financial assets at fair value through OCI (Note 22) 103,423 - - 103,423

Financial assets at fair value through profit or loss (Note 22) 1,526,496 - - 1,526,496

Derivative financial assets (Note 27) - 2,411 - 2,411

Derivative financial liabilities (Note 27) - (230) - (230)

Non-current

Financial assets at fair value through profit or loss (Note 22) - - 392 392

Investment properties (Note 18) - - 227,400 227,400

Biological assets - - 574 574


Assets/(liabilities) measured at fair value

Current

Financial assets at fair value through profit or loss (Note 22) 1,674,631 - - 1,674,631

Derivative financial assets (Note 27) - 45 - 45

Non-current

Financial assets at fair value through profit or loss (Note 22) - - 392 392

Investment properties (Note 18) - - 163,900 163,900

Biological assets - - 28 28


OUR PERFORMANCE


41. FAIR VALUES (CONT’D)

(ii) Fair value hierarchy (cont’d)

The following table provides the fair value measurement hierarchy of the Group’s and the Company’s assets and liabilities as at reporting date (cont’d):

Quoted prices in

active market

(Level 1) RM’000

Significant observable


Significant unobservable


Total RM’000

Company


Assets measured at fair value

Current

Financial assets at fair value through OCI (Note 22) 4,288 - - 4,288

Financial assets at fair value through profit or loss (Note 22) 671,587 - - 671,587


Assets measured at fair value

Current

Financial assets at fair value through profit or loss (Note 22) 709,075 - - 709,075

There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the financial years ended 31 August 2021 and 2020.

42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group and the Company are exposed to a variety of financial risks, including market risk, credit risk, interest rate risk, liquidity risk and foreign currency risk.

The Group’s senior management oversees the management of these risks and ensures that the Group’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Group’s policies and risk objectives. All derivative activities for risk management purposes are carried out by senior management who have the appropriate skills, experience and supervision. It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises interest rate risk, foreign exchange currency risk and other price risk such as equity price risk. Financial instruments affected by market risk include loans and borrowings, cash and short term deposits, debt securities, money market funds and derivative financial instruments.

42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Group’s and the Company’s exposure to credit risk arises primarily from trade and other receivables. For other financial assets (including debt securities, money market funds, cash and bank balances and derivative financial instruments), the Group and the Company minimise credit risk by dealing exclusively with high credit rating counterparties.

The Group’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The Group trades only with recognised and creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.

Exposure to credit risk

At the reporting date, the Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statements of financial position.

Credit risk concentration profile

The Group has no significant concentration of credit risk that may arise from exposure to a single debtor or to groups of debtors.

Financial assets that are neither past due nor impaired

Information regarding trade and other receivables that are neither past due nor impaired is disclosed in Note 25(a). Deposits with banks and other financial institutions, debt securities, money market funds and derivative financial instruments that are neither past due nor impaired are placed with or entered into with reputable financial institutions or companies with high credit ratings and no history of default.

Financial assets that are either past due or impaired

Information regarding financial assets that are either past due or impaired is disclosed in Note 25(a). An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables are written off if past due for more than 120 days, except for certain major or specific customers where the period may extend beyond 120 days, and are not subject to enforcement activity. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 25(a).

(c) Liquidity risk

Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities.


OUR PERFORMANCE


42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

(c) Liquidity risk (cont’d)

The table below summarises the maturity profile of the Group’s and the Company’s liabilities at the reporting date based on contractual undiscounted repayment obligations.

31 August 2021

On demand or within one year RM’000

One to five years

RM’000

Over five years

RM’000 Total

RM’000

Group

Financial liabilities

Trade and other payables, excluding bank guarantees 692,361 - - 692,361

Derivative financial instruments 230 - - 230

Loans and borrowings 314,663 148,242 - 462,905

Lease liabilities 6,409 6,785 27,047 40,241

Total undiscounted financial liabilities 1,013,663 155,027 27,047 1,195,737

Company



Lease liabilities 88 313 - 401

Total undiscounted financial liabilities 23,148 313 - 23,461

31 August 2020


One to five years

RM’000

Over five years

RM’000 Total

RM’000

Group



Loans and borrowings 316,115 233,038 2,879 552,032

Lease liabilities 1,873 5,750 9,360 16,983

Total undiscounted financial liabilities 1,128,812 238,788 12,239 1,379,839

42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D)

(c) Liquidity risk (cont'd)

The table below summarises the maturity profile of the Group’s and the Company’s liabilities at the reporting date based on contractual undiscounted repayment obligations. (cont'd)

31 August 2020


One to five years

RM’000

Over five years

RM’000 Total

RM’000

Company



Lease liabilities 88 350 51 489

Total undiscounted financial liabilities 2,659 350 51 3,060

(d) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Group's and the Company's financial instruments will fluctuate because of changes in market interest rates.

The Group's exposure to interest rate risk arises primarily from its loans and borrowings. The Group manages its interest rate exposure by maintaining a mix of fixed and floating rate borrowings. The Group actively reviews its debt portfolio, taking into account the investment holding period and nature of its assets. This strategy allows it to capitalise on cheaper funding in a low interest rate environment and achieve a certain level of protection against rate hikes.

Sensitivity analysis for interest rate risk

At the reporting date, if interest rates had been 10 basis points lower/higher, with all other variables held constant, the Group’s profit before tax would have been RM454,000 (2020: RM423,000) higher/lower, respectively, arising mainly as a result of lower/higher interest expense on floating rate loans and borrowings. The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment.

(e) Market price risk

The Group’s quoted investment securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group manages the market price risk through diversification and by placing limits on individual and total investment in investment securities. Reports on the investment portfolio are submitted to the Group’s senior management on a regular basis. The Board of Directors reviews and approves all investment decisions.

The Group has a Board Risk Committee with the objectives of reviewing, advising and ensuring that the Group’s investment in debt securities is consistent with the delegated authority limit approved by the Board; and cash invested is within the risk appetite of the Group. The Board Risk Committee established certain criteria for current and future investment in debt securities. Any investment differing from the criteria established will require the Board Risk Committee’s approval. The Board Risk Committee also aims to establish an effective investment management framework for the Group.


OUR PERFORMANCE



(e) Market price risk (cont’d)

The Group’s exposure to quoted investment securities at fair value at the reporting date is disclosed in Note 22.

Sensitivity analysis for market price risk

The following table demonstrates the sensitivity of the Group’s investment in debt securities to reasonably possible price movements at the reporting date:

2021 RM’000

2020 RM’000

Debt securities - strengthened 5% (2020: 5%) 15,331 -

- weakened 5% (2020: 5%) (15,331) -

(f) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Group has transactional currency exposures mainly arising from revenue that are denominated in a currency other than the respective functional currencies of the Group entities. These functional currencies are Malaysian Ringgit (“RM”), Thai Baht (“THB”), Chinese Renminbi (“RMB”), Australian Dollar (“AUD”), Euro and USD. The foreign currencies in which these transactions are denominated are mainly USD, Euro and Japanese Yen (“JPY”). In addition, the Group has significant borrowings in USD, Euro and JPY (Note 29). Therefore, the Group is exposed to foreign currency risk. These exposures are managed, to the extent possible, by natural hedge that arise when payments for foreign currency payables are matched against receivables denominated in the same foreign currency.

The net unhedged financial assets and financial liabilities of the Group that are not denominated in their functional currencies are as follows:

Net financial assets/(liabilities) held in non-functional currency

USD RM’000

Euro RM’000

JPY RM’000

Total RM’000

Functional currency of Group entities

At 31 August 2021

Malaysian Ringgit 370,118 (170,867) (88,894) 110,357

Thai Baht (3,374) - - (3,374)

Chinese Renminbi (1,645) - - (1,645)

Euro 9,518 - - 9,518

United States Dollars - (39,338) - (39,338)

374,617 (210,205) (88,894) 75,518


(f) Foreign currency risk (cont’d)

The net unhedged financial assets and financial liabilities of the Group that are not denominated in their functional currencies are as follows (cont’d):

Net financial assets/(liabilities) held in non-functional currency

USD RM’000

Euro RM’000

JPY RM’000

Total RM’000

Functional currency of Group entities

At 31 August 2020

Malaysian Ringgit 228,190 (178,316) (91,611) (41,737)

Thai Baht 52,742 - - 52,742

Chinese Renminbi 2,063 - - 2,063

Australian Dollars 147 - - 147

Euro 4,671 - - 4,671

United States Dollars - (64,606) - (64,606)

287,813 (242,922) (91,611) (46,720)

Sensitivity analysis for foreign currency risk

The following table demonstrates the sensitivity of the Group’s profit before tax to a reasonably possible change in the USD, Euro and JPY exchange rates against the respective functional currencies of the Group entities, with all other variables held constant.

2021 RM’000

2020 RM’000

USD/RM - strengthened 5% (2020: 5%) 18,506 11,410

- weakened 5% (2020: 5%) (18,506) (11,410)

USD/THB - strengthened 5% (2020: 5%) (169) 2,637

- weakened 5% (2020: 5%) 169 (2,637)

USD/RMB - strengthened 5% (2020: 5%) (82) 103

- weakened 5% (2020: 5%) 82 (103)

USD/AUD - strengthened 5% (2020: 5%) - 7

- weakened 5% (2020: 5%) - (7)

USD/Euro - strengthened 5% (2020: 5%) 476 234

- weakened 5% (2020: 5%) (476) (234)

Euro/RM - strengthened 5% (2020: 5%) (8,543) (8,916)

- weakened 5% (2020: 5%) 8,543 8,916

Euro/USD - strengthened 5% (2020: 5%) (1,967) (3,230)

- weakened 5% (2020: 5%) 1,967 3,230

JPY/RM - strengthened 5% (2020: 5%) (4,445) (4,581)

- weakened 5% (2020: 5%) 4,445 4,581

As part of the Group’s financial instruments management policies and procedures, the Group established certain limits for foreign exchange contracts to be hedged against foreign currency risks. Further details of the forward currency contracts as at the reporting date are disclosed in Note 27.


OUR PERFORMANCE


43. FINANCIAL INSTRUMENTS

Classification of financial instruments

The principal accounting policies in Note 4.18 describe how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised.

The following table analyses the financial assets and liabilities in the statements of financial position by the class of financial instrument to which they are assigned, and therefore by the measurement basis.

Fair value through

OCI RM’000

Fair value through profit or

loss RM’000

Amortised cost

RM’000 Total

RM’000

Group


Financial assets

Investment securities: Unquoted investments - 392 - 392

Investment securities: Money market funds - 1,323,297 - 1,323,297

Investment securities: Debt securities 103,423 203,199 - 306,622

Trade and other receivables - - 566,299 566,299

Derivative financial instruments - 2,411 - 2,411

Cash and bank balances - - 878,446 878,446

Total financial assets 103,423 1,529,299 1,444,745 3,077,467


Loans and borrowings - - 458,706 458,706

Lease liabilities - - 23,669 23,669

Trade and other payables - - 692,361 692,361

Derivative financial instruments - 230 - 230

Total financial liabilities - 230 1,174,736 1,174,966


Financial assets

Investment securities: Unquoted investments - 392 - 392

Investment securities: Money market funds - 1,674,631 - 1,674,631


Derivative financial instruments - 45 - 45

Cash and bank balances - - 1,208,559 1,208,559

Total financial assets - 1,675,068 2,007,364 3,682,432


Loans and borrowings - - 540,539 540,539

Lease liabilities - - 11,114 11,114


Total financial liabilities - - 1,362,477 1,362,477

43. FINANCIAL INSTRUMENTS (CONT’D)

Classification of financial instruments (cont’d)

The following table analyses the financial assets and liabilities in the statements of financial position by the class of financial instrument to which they are assigned, and therefore by the measurement basis (cont’d):

Fair value through

OCI RM’000

Fair value through profit or

loss RM’000

Amortised cost

RM’000 Total

RM’000

Company


Financial assets

Investment securities: Money market funds - 578,568 - 578,568

Investment securities: Debt securities 4,288 93,019 - 97,307



Total financial assets 4,288 671,587 267,240 943,115


Lease liabilities - - 366 366


Total financial liabilities - - 23,426 23,426


Financial assets

Investment securities: Money market funds - 709,075 - 709,075



Total financial assets - 709,075 863,325 1,572,400


Lease liabilities - - 438 438


Total financial liabilities - - 3,009 3,009


OUR PERFORMANCE


44. CAPITAL MANAGEMENT

The primary objective of the Group's and of the Company's capital management is to ensure that they maintain a strong credit rating and healthy capital ratios in order to support their business and maximise shareholders' value.

The Group and the Company manage their capital structure and make adjustments, in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Group and the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the financial years ended 31 August 2021 and 2020.

As disclosed in Note 35(b), subsidiaries of the Group incorporated in the People’s Republic of China and Thailand are required to set aside a statutory reserve fund under local regulations. This externally imposed capital requirement has been complied with by the above-mentioned subsidiaries for the financial years ended 31 August 2021 and 2020.

The Group and the Company monitor capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group and the Company include within net debt, loans and borrowings, trade and other payables, contract liabilities, less cash and cash equivalents. Capital includes equity attributable to the owners of the parent less the fair value adjustment reserve and the above-mentioned restricted statutory reserve fund.

Group Company

Note 2021

RM’0002020

RM’000 2021

RM’0002020

RM’000

Loans and borrowings 29 458,706 540,539 - -

Trade and other payables 30 692,361 810,824 23,060 2,571

Contract liabilities 31 737,627 879,386 - -

Less: Cash and cash equivalents 28 (875,198) (1,204,947) (5,555) (257,481)

Net debt 1,013,496 1,025,802 17,505 -

Equity attributable to the owners of the parent 5,872,403 4,870,755 2,955,175 3,187,273

Less:

- Fair value adjustment reserve 35 (1,844) - - -

- Legal reserve 35 (27,569) (10,088) - -

Total equity 5,842,990 4,860,667 2,955,175 3,187,273

Capital and net debt 6,856,486 5,886,469 2,972,680 3,187,273

Gearing ratio 14.78% 17.43% 0.59% 0.00%

The gearing ratio is not governed by the MFRS and its definition and calculation may vary from one group/company to another.

45. SEGMENT INFORMATION

For management purposes, the Group is organised into business units based on their geographical areas, and has five reportable operating segments.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which, in certain respects as explained in the table below, is measured differently from operating profit or loss in the consolidated financial statements. Group financing (including finance costs), income taxes and share of results of an associate are managed on a group basis and are not allocated to operating segments.

The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of business and have been established on negotiated and mutually agreed terms.

Malaysia RM’000

Thailand RM’000

The People’s Republic of China RM’000

The British Virgin

Islands RM’000

Others RM’000

EliminationsRM’000

Note ConsolidatedRM’000

31 August 2021

Revenue

External sales 13,907,278 1,199,387 429,918 - 824,860 - 16,361,443

Inter-segment sales 505,092 458,579 1,206 - 1,298 (966,175) A -

Total revenue 14,412,370 1,657,966 431,124 - 826,158 (966,175) 16,361,443

Results

Interest income 131,894 882 3,183 6,611 201 (81,196) 61,575

Depreciation and amortisation 268,640 27,497 3,918 - 8,609 - 308,664

Segment profit/(loss) 8,815,480 826,776 222,187 10,795 160,118 (1,543) B 10,033,813

Assets

Additions to non-current assets* 1,127,186 163,748 13,223 - 66,824 - C 1,370,981

Segment assets 6,732,031 976,966 238,692 222,116 567,879 1,044,740 D 9,782,424

Liabilities

Segment liabilities 1,548,012 114,109 14,826 10 244,084 641,223 E 2,562,264

Other segment information

Capital commitments 883,911 87,960 1,587 - 68,307 - 1,041,765

* Other than financial instruments and deferred tax assets


OUR PERFORMANCE


45. SEGMENT INFORMATION (CONT’D)

Malaysia RM’000

Thailand RM’000

The People’s Republic of China RM’000

The British Virgin

Islands RM’000

Others RM’000

EliminationsRM’000

Note ConsolidatedRM’000

31 August 2020

Revenue

External sales 6,223,145 540,005 127,500 - 346,777 - 7,237,427

Inter-segment sales 259,252 382,477 622 - - (642,351) A -

Total revenue 6,482,397 922,482 128,122 - 346,777 (642,351) 7,237,427

Results

Interest income 104,570 262 505 1,030 509 (82,987) 23,889

Depreciation and amortisation 216,911 24,051 2,787 - 1,647 - 245,396

Segment profit/(loss) 1,920,336 199,619 40,280 3,241 37,902 (35,827) B 2,165,551

Assets

Additions to non-current assets* 627,709 113,012 3,229 - 72,042 - C 815,992

Segment assets 6,585,924 541,836 177,081 147 358,643 1,042,333 D 8,705,964

Liabilities

Segment liabilities 1,848,265 169,352 93,265 11 135,527 268,661 E 2,515,081

Other segment information

Capital commitments 315,806 42,993 1,795 - 52,477 - 413,071

* Other than financial instruments and deferred tax assets

45. SEGMENT INFORMATION (CONT’D)

A Inter-segment revenues are eliminated on consolidation.

B The following items are added to/(deducted from) segment profit to arrive at profit before tax presented in the consolidated income statement:

2021 RM’000

2020 RM’000

Share of results of an associate 2,644 (1,428)

Finance costs (4,187) (34,399)

(1,543) (35,827)

C Additions to non-current assets consist of:

2021 RM’000

2020 RM’000

Property, plant and equipment 1,334,018 806,400

Right-of-use assets 9,308 9,532

Investment properties 26,902 -

Intangible assets 207 32

Biological assets 546 28

1,370,981 815,992

D The following items are added to segment assets to arrive at total assets reported in the consolidated statement of financial position:

2021 RM’000

2020 RM’000

Deferred tax assets (Note 21) 17,073 19,589

Investments in an associate (Note 20) 13,069 10,425

Intangible assets (Note 23) 1,008,795 1,012,319

Income tax recoverable 5,803 -

1,044,740 1,042,333

E The following items are added to segment liabilities to arrive at total liabilities reported in the consolidated statement of financial position:

2021 RM’000

2020 RM’000

Income tax payable 450,023 126,673

Deferred tax liabilities (Note 21) 191,200 141,988

641,223 268,661


OUR PERFORMANCE


46. DIVIDENDS

Group and Company

2021 RM’000

2020 RM’000


Third tax exempt interim single tier dividend of 18 sen per share on 8,004,542,000 ordinary shares, declared on 9 June 2021 and paid on 7 July 2021 1,440,559 -

Second tax exempt interim single tier dividend of 25.2 sen per share on 8,004,018,000 ordinary shares, declared on 9 March 2021 and paid on 6 April 2021 2,017,607 -

First tax exempt interim single tier dividend of 16.5 sen per share on 8,022,604,000 ordinary shares, declared on 9 December 2020 and paid on 11 January 2021 1,323,582 -


Final tax exempt single tier dividend of 8.5 sen per share on 8,143,086,000 ordinary shares, declared on 23 September 2020 and paid on 3 November 2020 692,321 -

First tax exempt interim single tier dividend of 10 sen per share on 2,694,050,000 ordinary shares, declared on 11 June 2020 and paid on 9 July 2020 - 269,411


Final tax exempt single tier dividend of 4 sen per share on 2,559,814,000 ordinary shares, declared on 26 September 2019 and paid on 23 December 2019 - 102,393

5,474,069 371,804

No dividend is payable for treasury shares held or cancelled.

47. FINANCIAL GUARANTEES

A nominal amount of RM459 million (2020: RM541 million) relating to corporate guarantees has been provided by the Company to banks for its subsidiaries’ loans and borrowings.

As at reporting date, no values are ascribed on these guarantees and letter of undertaking provided by the Company to secure banking facilities described above as the directors regard the value of the credit enhancement provided by these guarantees as minimal and the probability of default, based on historical track records of the parties receiving the guarantees are remote.

48. SIGNIFICANT EVENTS

(a) Outbreak of Coronavirus (“COVID-19”)

In March 2020, the World Health Organisation officially announced the outbreak of COVID-19 as a global pandemic. In order to combat the spread of COVID-19, the government of Malaysia had declared a Movement Control Order (“MCO”) which encompasses restriction of movement and closure of premises, except for those involved in essential services. During this period, the Group had been granted approval by the Malaysian Government to continue its operations as the Group is in the essential industry to ensure the continuous supply of gloves to the healthcare workers and frontliners globally.

However, from 17 November 2020 to 14 December 2020, an Enhanced Movement Control Order (“EMCO”) was imposed by the Malaysian Ministry of Health due to an outbreak of COVID-19 cases in the Group’s workers’ dormitories. The EMCO affected approximately 5,700 of the Group’s workers in Meru, Klang and led the Group to halt work in stages at 28 of its manufacturing facilities. The closures resulted in a two to four-week delay in the deliveries of its products, as well as a longer lead time for fulfilling purchase orders. The EMCO was lifted on 14 December 2020 and the Group’s factories reopened in stages subsequently.

Another EMCO was imposed across several districts in the states of Selangor and Kuala Lumpur in July 2021 as a result of rising number of COVID-19 cases in these areas, during which 30 of the Group's manufacturing facilities were not allowed to operate for 10 days. Additionally, facilities which were affected by a subsequent round of the MCO were only permitted to operate at 60%. However, with the vaccination rate amongst the Group's employees having exceeded 80%, these facilities have since been allowed to operate at full capacity.

The Group will continue to follow the various directives issued by the Governments of jurisdictions where its facilities are located and do its utmost to continue its operations with reinforced health and safety measures, including regular disinfection and sanitation of premises, temperature screening, provision of face masks to employees and visitors, and participation in local vaccination programmes, amongst others.

(b) U.S. Customs and Border Protection

On 15 July 2020, the U.S. Customs and Border Protection (“US CBP”) had placed a Withhold Release Order (“WRO”) on importing disposable rubber gloves manufactured by two subsidiaries of the Group, namely Top Glove Sdn. Bhd. and TG Medical Sdn. Bhd. to U.S. market. The action imposed by the US CBP was based on claims of forced labour in the Group’s production process, mainly in relation to the remediation of recruitment fees paid to agents by the foreign workers who joined the Group prior to January 2019 without the knowledge of the Group. The Group has established a Zero Recruitment Fee Policy (the “Policy”) since January 2019.

The Group appointed an independent consultant in July 2020 to assess the presence of forced labour by reference to the International Labour Organization’s 11 Forced Labour Indicators (“ILO Indicators”). Following the completion of the independent consultant’s verification work, an amount of RM136 million remediation payment was initially recommended by the independent consultant to compensate the foreign workers who paid recruitment fees to their recruitment agents and/or sub-agents prior to the implementation of the Policy in January 2019. Subsequently, the Group commenced making the remediation payments to its migrant workers since August 2020 and had completed all remediation payments amounting to a final total sum of RM150 million in April 2021. Additionally, the Group had also worked towards addressing the other ILO Indicators. On 22 April 2021, the independent consultant reported that the Group has achieved all green for all the 11 ILO Indicators.

On 29 March 2021, the US CBP announced a Finding against disposable gloves produced in Malaysia by the Group which allowed for the seizure of glove shipments at all U.S. ports of entry. However, this Finding has since been modified on 10 September 2021, after the US CBP had thoroughly reviewed evidence that the Group has addressed all indicators of forced labour identified at its Malaysian facilities, thereby enabling the Group to resume exporting gloves to the U.S..

291INTEGRATED ANNUAL REPORT 2021290 TOP GLOVE CORPORATION BHD

NOTES TO THE FINANCIAL STATEMENTSFor the financial year ended 31 August 2021 (cont’d)

OUR PERFORMANCE

48. SIGNIFICANT EVENTS (CONT’D)

(c) Corporate proposals announced

The Company had on 26 February 2021 announced the following proposals:

(i) Proposed issuance of new shares;(ii) Proposed amendments; and(iii) Proposed dual primary listing of the ordinary shares in the Company on the Main Board of The Stock Exchange

of Hong Kong Limited (“HKEX”).

The application for the proposed listing of the Company on the HKEX which had a validity period of 6 months had lapsed on 26 August 2021. However, the Company is still pursuing the above proposals and intends to renew the application as soon as practicable.

49. SUBSEQUENT EVENT

A single tier final dividend in respect of the financial year ended 31 August 2021, of 5.4 sen per share on 8,007,085,000 ordinary shares amounting to RM432,454,000 had been declared on 17 September 2021 and paid on 15 October 2021. The financial statements for the current financial year do not reflect this dividend. Such dividend will be accounted for within equity as an appropriation of retained earnings for the financial year ending 31 August 2022.

50. AUTHORISATION OF FINANCIAL STATEMENTS FOR ISSUE

The financial statements for the year ended 31 August 2021 were authorised for issue in accordance with a resolution of the directors on 27 October 2021.

PARTICULARS OF PROPERTY

DATE OF ACQUISITION(A)/ REVALUATION(R)

AGE OF BUILDING,

YEARS TENUREDESCRIPTION/ EXISTING USE

LAND AREA/ BUILD-UP AREA

AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

A) TOP GLOVE SDN. BHD.

1) Lot 4968, Jalan Teratai,Batu 6, Off Jalan Meru,41050 Klang, Selangor.

EMR 6629, Lot 4968,Mukim Kapar,Daerah Klang, Selangor.

13/10/1993 (A) 27 Freehold Factory/Glovemanufacturing

2.51 acres/ 83,379

square feet

13,214

2) No.23, Jalan Seri Kenangan 8,Taman Meru 3, Meru,41050 Klang, Selangor.

HS (M) 10314, PT 15442,Mukim Kapar,Daerah Klang, Selangor.

23/05/1996 (A) 25 Freehold Terrace house/Accommodation

for staff

1,608 square feet/

1,350 square feet

63

3) Lot 4908, Jalan Teratai,Batu 5½, Off Jalan Meru,41050 Klang, Selangor.

EMR 6605, Lot 4908,Mukim Kapar,Daerah Klang, Selangor.


for worker

3 acres/ 54,140

square feet

1,746

4) No.11, Jalan Mempari 11,Taman Bayu, Batu 5½,Jalan Meru, 41050 Klang, Selangor.

HS (M) 15238, PT 8349,HS (M) 15238, PT 8445,Mukim Kapar,Daerah Klang,Selangor.


for staff

1,300 square feet/

1,100 square feet

82




for staff

1,300 square feet/

1,100 square feet

87


HS (M) 15256, PT 8368,Mukim Kapar, Daerah Klang, Selangor.


for staff

1,300 square feet/

1,100 square feet

87


HS (M) 15297, PT 8411,Mukim Kapar,Daerah Klang,Selangor.


for staff

1,300 square feet/

1,100 square feet

38

8) Lot 18, 27, 38 & 57,Medan Tasek,Kawasan Perindustrian Tasek,31400 Ipoh, Perak.

Lot 18, 27, 38 & 57,Medan Tasek,Kawasan Perindustrian Tasek,31400 Ipoh, Perak.

22/11/1999 (A) 21 Leasehold(Expiring on:

Lot 18 - 30/09/2072

Lot 27 - 28/12/2063

Lot 38 - 23/12/2069

Lot 57 - 01/10/2064)

Factory/Glove manufacturing

311,192 square feet/

197,675 square feet

8,887


EMR 8780, Lot 5987,Mukim Kapar,Daerah Klang,Selangor.


2.8 acres/ 57,250 square feet

4,905


GM 2143, Lot 4969,Mukim Kapar,Daerah Klang,Selangor.

11/10/2000 (A) 20 Freehold Factory/Officebuilding

3 acres/ 41,274 square feet

7,346


GM 2326, Lot 4960,Mukim Kapar,Daerah Klang,Selangor.


3 acres/58,240

square feet

7,090


HS (M) 38148,PT Nos. 63271,Mukim Kapar,Daerah Klang,Selangor.


3 acres/67,924

square feet

5,516


GM 5584, Lot 4967,Mukim Kapar,Daerah Klang, Selangor.


3 acres/58,240

square feet

6,542

LIST OF PROPERTIESAs at 31 August 2021

OTHER INFORMATION

292 293

OTHER INFORMATION




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

14) Lot 4991, Jalan Bunga Raya,Batu 5½, Off Jalan Meru,41050 Klang, Selangor.



4.3 acres 3,242




3 acres/58,240

square feet

11,060

16) No.26, Jalan Abadi 10A/KU8,Taman Daya Maju,41050 Klang, Selangor.



for staff

1,300 square feet/

1,100 square feet

107

17) No.21,Jalan Mempari 11,Taman Bayu, Batu 5½,Jalan Meru, 41050 Klang, Selangor.

HS (M) 15324, PT 8441,HS (M) 15242, PT 8353,Mukim Kapar,Daerah Klang, Selangor.


for staff

1,300 square feet/

1,100 square feet

88


HS (M) 18522,PT 24689,Mukim Kapar,Daerah Klang, Selangor.


for staff

1,300 square feet/

1,100 square feet

101

19) No.21,Jalan Sesenduk 20,Off Taman Meru Jaya,41050 Klang, Selangor.



for staff

1,300 square feet/

1,100 square feet

108

20) No.23,Jalan Sesenduk 20,Off Taman Meru Jaya,41050 Klang, Selangor.



for staff

1,300 square feet/

1,100 square feet

108

21) No.27, Lorong Tempinis 1,Pekan Meru,42200 Klang, Selangor.

HS (M) 3773, PT 1286 &HS (M) 3685, PT 1285,Mukim Kapar,Daerah Klang, Selangor.


for staff

1,300 square feet/

1,100 square feet

88

22) No.57, Jalan Sesenduk 5,Taman Meru Utama,41050 Klang, Selangor.



for staff

1,300 square feet/

1,100 square feet

108




for staff

1,300square feet/

1,100 square feet

108




for staff

1,300 square feet/

1,100 square feet

101




for staff

1,300 square feet/

1,100 square feet

101

26) Lot 4988, 5½ Miles,Sungai Binjai Road,41050 Klang, Selangor.



3 acres/12,141

square metres

13,053

27) Lot 4989, Jalan Dahlia/KU8,Kawasan Perindustrian Meru Timur, 41050 Klang, Selangor.



3 acres/12,267

square metres

9,585

28) No.41, Jalan Abadi 3,Taman Daya Meru,41050 Klang, Selangor.



for staff

1,098 square feet

83



AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

29) Lot 4986, Batu 5,Jalan Sungai Binjai,Mukim Kapar,41050 Klang, Selangor.



3 acres/12,141 square metres

7,686

30) No.1, 3, 5 & 7,Jalan Abadi 1A/KU8,

No.1 - 8,Jalan Abadi 1B/KU8,

No.1, 3, 5 & 7,Jalan Abadi 1C/KU8,

No.60, 62, 64, 66, 67, 69, 71, 73, 75 & 77,Jalan Abadi 4/KU8,

No.49, 51, 53, 55, 57, 59, 62, 64, 66, 68, 70& 72,Jalan Abadi 5/KU8,

No.46, 48, 50, 52, 54 & 56,Jalan Abadi 6/KU8,Taman Daya Maju,41050 Klang, Selangor.

HS (M) 10598 - 10601,PT 49525 - 49528,

HS (M) 10605 - 28476,PT 40356 - 40363,

HS (M) 28477 - 28480 & 28484,PT 40367 - 40370 & 40374,

HS (M) 28481 - 28483 & 28486 - 28491,PT 40371 - 40373 & 40376 - 40381,

HS (M) 28492 - 28497 & 28499 - 28504,PT 40382 - 40387 & 40389 - 40394,

HS (M) 28505 - 28510,PT 40395 - 40400,Mukim Kapar,Daerah Klang, Selangor.


for staff

70,995 square feet

5,217

31) Lot 4987, 5th Miles,Sungai Binjai Road,Mukim Kapar,41050 Klang, Selangor.



3 acres/12,141

square metres

12,981

32) Lot 4990, Jalan Bunga Raya,Batu 5½, Off Jalan Meru,41050 Klang, Selangor.



3 acres/12,267

square metres

8,559

33) No.3, 5, 7, 9, 11, 13, 15, 17, 19, 21, 23, 25 & 27, Taman Mutiara, Tasek,31400 Ipoh, Perak.

Lot 375847 - 375859 Tasek Mutiara, 31400 Ipoh, Perak.

02/11/2007 (A) 13 Freehold Terrace house/ Accommodation

for worker

1,400 square feet/

1,625 square feet

1,621



14/01/2008 (A) N/A Freehold Vacant 3 acres 2,718

35) Lot 4949, Jalan Teratai,Batu 5½, Off Jalan Meru, 41050 Klang, Selangor.


18/01/2008 (A) N/A Freehold Parking Lot 3 acres 3,101

36) Lot 4961, Tempat Batu 5,Jalan Binjai,41050 Klang, Selangor.



3 acres 9,821

37) Lot 5094, Tempat Batu 4½,Jalan Sungai Binjai,41050 Klang, Selangor.


03/10/2008 (A) N/A Freehold Vacant 3 acres5 pole

2,532

38) Lot 5977 & 5975,Tempat Batu 4½,Jalan Sungai Binjai,41050 Klang, Selangor.

GM 4436 & 4437,Lot 5977 & 5975,Mukim Kapar,Daerah Klang, Selangor.

03/10/2008 (A) N/A Freehold Vacant 1.794 & 0.068 acres 1,531

39) Lot 4941,Tempat Batu 6,Jalan Sungai Binjai,41050 Klang, Selangor.


01/06/2009 (A) N/A Freehold Vacant 3 acres 1,901

LIST OF PROPERTIESAs at 31 August 2021 (cont’d)


294 295

OTHER INFORMATION




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

40) Lot 5139,Tempat Batu 6, Jalan Sungai Binjai,41050 Klang, Selangor.

GM 5863, Lot 5139,Mukim Kapar, Daerah Klang, Selangor.

07/09/2009 (A) N/A Freehold Vacant 4 acres2 rood25 pole

6,744



30/11/2009 (A) N/A Freehold Vacant 4 acres3 rood

7,690

42) No.7, Lorong Abadi 2,Batu 5½, Off Jalan Meru, Taman Daya Meru, 41050 Klang, Selangor.

GM 16575, Lot 31111,Batu 6, Jalan Sungai Binjai, Mukim Kapar,Daerah Klang, Selangor.


for staff

111 square metres

94

43) No.69,Jalan Sesenduk 6, No.57, Jalan Sesenduk 7, Taman Meru Utama, 41050 Klang, Selangor.

GM 7300, 7331,Lot 43342, 43376,Tempat Batu 5, Jalan Sungai Binjai, Mukim Kapar,Daerah Klang, Selangor.

25/01/2010 (A) 11 Freehold Terrace house/ Accommodation for

worker and staff

133 square metres &

193 square metres

268

44) Lot 12, Medan Tasek, Kawasan Perindustrian Tasek,31400 Ipoh, Perak.

PN 1308, Lot 56530,Mukim Hulu Kinta, Daerah Kinta, Perak.

04/02/2010 (A) 11 Leasehold (Expiring on: 05/04/2066)

Factory/Office building 213,889 square feet/

131,576square feet

5,976

45) No.8, 10, 12, 14, 16, 18, 20, 22, 24, 26, 28, 30, 32, 34, 36, 40, 42, 44 & 46, Jalan Sesenduk 21, Taman Meru Jaya, 41050 Klang, Selangor.

GM 7790, 7789, 7788, 7787, 7786, 7785, 7784, 7783, 7782, 7781, 7780, 7779, 7778, 7777, 7776, 7774, 7773, 7772, 7771,Lot 37299, 37298, 37297, 37296, 37295, 37294, 37293, 37292, 37291, 37290, 37289, 37288, 37287, 37286, 37285, 37283, 37282, 37281, 37280,Mukim Kapar, Daerah Klang, Selangor.


for staff

190 square metres/unit

2,875

46) No.20, Jalan Sesenduk 19, Taman Meru Jaya,41050 Klang, Selangor.

GM 7804, Lot 37313,Batu 6½, Jalan Sungai Binjai,Mukim Kapar,Daerah Klang, Selangor.


for staff

111 square metres

123

47) No.31, Jalan Mempari 12, Taman Bayu, Batu 5, Jalan Meru, 41050 Klang, Selangor.

GM 14268, Lot 38295 &HS (M) 15348, PT 8466,Batu 6, Jalan Sungai Binjai, Mukim Kapar,Daerah Klang, Selangor.


for staff

121 square metres

90

48) No.3, Jalan Sesenduk 3C, Taman Meru Utama 55, 41050 Klang, Selangor.

GM 15247, 15246, 15244, 15242, 15265,Lot 45023, 45022, 45020, 45018, 45041,Tempat Batu 5, Jalan Sungai Binjai, Mukim Kapar, Daerah Klang, Selangor.


for worker


116

49) No.1, Jalan Sesenduk 3C, Taman Meru Utama 5, 41050 Klang, Selangor.

GM 15282, Lot 45058,Tempat Batu 5½, Jalan Sungai Binjai, Mukim Kapar,Daerah Klang, Selangor.


for worker

261 square metres

214



18/06/2010 (A) 4 Freehold Factory/Glove manufacturing

3 acres 4,233



AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

51) No.25, Jalan Sesenduk 20, Taman Meru Jaya,41050 Klang, Selangor



for staff

121 square metres

125

52) No.46, Jalan Sesenduk 7,Taman Meru Utama,Off Jalan Meru,41050 Klang, Selangor.



for worker

121 square metres

122

53) No.47, Jalan Sesenduk 7, Taman Meru Utama, 41050 Klang, Selangor.



for worker

121 square metres

130




for staff

111 square metres

115

55) Lot 5991,Tempat Batu 4½, Jalan Sungai Binjai,41050 Klang, Selangor.


30/09/2010 (A) 2 Freehold Warehouse F4A 2.8 acres/1.0787 acres

14,734




for staff

121 square metres

131

57) No.15, Jalan Abadi 10B/KU8, Taman Daya Maju,41050 Klang, Selangor.



for staff

109 square metres

119




for worker

1.2141 hectares 16,760

59) No.25, Jalan Mempari 9, Taman Bayu,41050 Klang, Selangor.

GM 13014, Lot 307,Seksyen 1, 6th Miles,Sungai Binjai Road, Pekan Meru, Daerah Klang, Selangor.


for staff

109 square metres

116




for staff

190 square metres

116

61) No.26, Jalan Mempari 1, Taman Bayu,41050 Klang, Selangor.

GM 8479, Lot 38225,Seksyen 1, Mukim Kapar, Daerah Klang, Selangor.


for staff

121 square metres

87

62) HS (D) 129441, PT 62956,Jalan Bukit Kapar,41050 Klang, Selangor.

HS (D) 129441, PT 62956,Mukim Kapar, Daerah Klang, Selangor.

28/02/2011 (A) N/A Freehold Vacant 131,730 square metres

14,335

63) No.30, Jalan Abadi 5, Taman Daya Maju, 41050 Klang, Selangor.

Lot 31191,Mukim Kapar, Daerah Klang, Selangor.


for staff

82 square metres

97

64) Plot 7, Medan Tasek, Kawasan Perindustrian Tasek,31400 Ipoh, Perak.

HS (D) 889/68, Lot 927,Mukim Hulu Kinta, Daerah Kinta, Perak.

05/07/2011 (A) 10 Leasehold(Expiring on: 02/05/2067)

Factory/Glove manufacturing

87,756 square feet/

48,352 square feet

11,785

65) No.42,Jalan Mempari 10, Batu 5½, Jalan Meru, 41050 Klang, Selangor.

GM 14219, Lot 38256,Seksyen 1, Pekan Meru, Daerah Klang, Selangor.


for staff

121 square metres

100



296 297

OTHER INFORMATION




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

66) No.60, Jalan Mempari 10, Taman Bayu, Batu 5½, Jalan Meru,41050 Klang, Selangor.

GM 14210, Lot 38247,Seksyen 1, Pekan Meru, Daerah Klang,Selangor.


for staff

121 square metres

101


GM 8463, Lot 38208,Seksyen 1,Pekan Meru, Daerah Klang, Selangor.


for staff

121 square metres

94

68) 8-2, 8-3, 8-4, 8-5,Setia Avenue,Jalan Setia Prima (S), U13/5, Setia Alam, Seksyen U13,40170, Shah Alam, Selangor.

GM 290749, Lot 59640,Mukim Bukit Raja, Daerah Petaling, Selangor.

01/02/2012 (A) 9 Freehold Building 920.77 square metres

2,903

69) No.64,Jalan Sesenduk 7, Off Jalan Meru,41050 Klang, Selangor.



for staff

121 square metres

140

70) No.21, Jalan Abadi 5, Taman Saujana Meru, 41050 Klang, Selangor.



for staff

121 square metres

78

71) No.25,Jalan Abadi 10D/KU8, Taman Daya Maju,41050 Klang, Selangor.



for staff

145 square metres

151

72) No.47, Jalan Abadi 1A/KU8, Taman Daya Maju,41050 Klang, Selangor.



for staff

130 square metres

137

73) No.43, Jalan Abadi 1A/KU8, Taman Daya Maju,Batu 6½, Off Jalan Meru,41050 Klang, Selangor.



for staff

130 square metres

137




for staff

130 square metres

137




for staff

130square metres

137




for staff

130square metres

137

77) No.53,Jalan Abadi 1A/KU8, Taman Daya Maju,41050 Klang, Selangor.



for staff

130 square metres

137




for staff

130 square metres

137

79) No.57,Jalan Abadi 1A/KU8, Taman Daya Maju,41050 Klang, Selangor.



for staff

130 square metres

137




for staff

130 square metres

137



AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000




for staff

130 square metres

137




for staff

130 square metres

137




for staff

130 square metres

137




for staff

130 square metres

137

85) No.69, Jalan Abadi 1A/KU8, Taman Daya Maju, 41050 Klang, Selangor.



for staff

130 square metres

137

86) No.71, Jalan Abadi 1A/KU8,Taman Daya Maju,Batu 6½,41050 Klang, Selangor.



for staff

130 square metres

136

87) No.24, Lorong Hamzah Alang 77B, Off Jalan Kapar Batu 9½, Taman Jaya, 42200 Kapar, Selangor.

HS (D) 35605, PT 19713.Mukim Kapar, Daerah Klang, Selangor.


for staff

120.75 square metres

97




for staff

121 square metres

104

89) No.6, Lorong Abadi 3, Pekan Meru,Taman Saujana Meru,41050 Klang, Selangor.



for staff


104

90) Lot 4982, 5th Miles, Jalan Sungai Binjai, 41050 Klang, Selangor.


01/01/2013 (A) 2 Freehold Factory / Glove manufacturing

1.2141 hectares 4,757




1.2141 hectares 41,056




1.2141 hectares 10,722

93) No.28, Jalan Mempari 12, 5th Miles, Jalan Meru, 41050 Klang, Selangor.



for staff

105 square metres

88




1.2141 hectares 7,102

95) Lot 5105, 4½ Miles, Jalan Sungai Binjai, 41050 Klang, Selangor.


19/11/2013 (A) 2 Freehold Warehouse 3.38 acres 26,573

96) No.29, Jalan Abadi 1, Taman Daya Meru, Batu 5½, Jalan Meru,41050 Klang, Selangor.



for staff

139 square metres

121



298 299

OTHER INFORMATION




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000



27/02/2014 (A) N/A Freehold Vacant 1.2141 hectares 9,391




99) Lot 5002, Batu 5½, Jalan Meru,41050 Klang, Selangor.

GM 10245, Lot 5002,(Lot 23552), Mukim Kapar, Daerah Klang, Selangor.

29/09/2015 (A) 5 Freehold Warehouse F1A 10,891 square metres

15,572

100) Unit C-34-08, Phase 2D02, Trefoil, Level 34, Tower C, Seksyen U13,Jalan Setia Dagang,AH U13/AH, Setia Alam, 40170, Shah Alam, Selangor.

GRN 308223, Lot 61049,Daerah Petaling, Selangor.

16/12/2015 (A) 5 Freehold Strata office 45.1 square metres

251

101) Unit C-34-07, Phase 2D02, Trefoil, Level 34, Tower C, Seksyen U13,Jalan Setia Dagang,AH U13/AH, Setia Alam, 40170, Shah Alam, Selangor.

GRN 308223,Lot 61049,Daerah Petaling, Selangor.

05/01/2016 (A) 5 Freehold Strata office 45.1 square metres

251

102) Lot 5090, Batu 5½, Jalan Meru,41050 Klang, Selangor.



12,104.55 square metres

15,972

103) Lot 5094 & 5977,Mukim Kapar, Daerah Klang,41050 Klang, Selangor.

GM 4326, Lot 5094 & 5977,4½ Mile Sungai Binjai Road, Mukim Kapar, Daerah Klang, Selangor.

26/01/2018 (A) 4 Freehold Factory/Water Process

and Supply

1.794 acres 6,129

104) No.257, 259, 261,263, 265,Persiaran Taman Tasek,Taman Tasek Baru, Ipoh, Perak.

Lot 177895 to 177899,Mukim Hulu Kinta,Daerah Kinta, Perak.


Terrace house/ Accommodation for

worker & staff


1,678

105) Lot 4962, 5th Miles, Sungai Binjai Road, Mukim Kapar,41050 Klang, Selangor.


27/06/2018 (A) 3 Freehold Factory/Office Building

3 acres/30,304

square feet

17,774

106) Lot 6494, 5 ¾ Miles, Lorong Sg Puluh, Mukim Kapar,41050 Klang, Selangor.

GRN 52391, Lot 6494,Mukim Kapar, Daerah Klang, Selangor.


107) Meru Courts Apartment,Batu 6, Jalan Meru,Mukim Kapar,41050 Klang, Selangor.


05/11/2020 (A) < 1 Freehold Apartment/Accommodation for

worker

8,058 square metres

17,941

108) Lot 4930,PT 50022 to PT 50041 (20 lots),Jln Sg Binjai, Mukim Kapar,41050 Klang, Selangor.

PT 50022 to 50041,HS (M) 32838 to HS (M) 32857,Mukim Kapar, Daerah Klang, Selangor.

06/11/2020 (A) N/A Freehold Vacant 37,899.61 square feet

3,400

109) Lot 6495, 5 ¾ Miles, Lorong Sg Puluh, Mukim Kapar,41050 Klang, Selangor.


16/11/2020 (A) N/A Freehold Vacant 41,303.16 square metres

32,556





GM 15902 Lot 5117,Mukim Kapar, Daerah Klang, Selangor.




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

B) TG MEDICAL SDN. BHD.

1) Lot 5091, Jalan Teratai, Batu 5, Off Jalan Meru, 41050 Klang, Selangor.

GM 3989, Lot 5091,4½ Miles, Sungai Binjai Road, Mukim Kapar,Daerah Klang, Selangor.


3 acres/68,490

square feet

6,921

2) No.19, Jalan Mempari 11, Batu 5½, Jalan Meru, 41050 Klang, Selangor.

HS (M) 15241, PT 8352,HS (M) 15325, PT 8442,Batu 6, Jalan Sungai Binjai, Mukim Kapar,Daerah Klang, Selangor.


for staff

1,300 square feet/

1,100 square feet

80

3) Lot 5972 & 5974,Jalan Teratai, Batu 5, Jalan Meru,41050 Klang, Selangor.

GM 4098 & 4099,Lot 5972 & 5974,4½ Miles, Sungei Benjai Road, Mukim Kapar,Daerah Klang, Selangor.


Approx 1.7935 acres/47,200

square feet

3,172


GM 5064, Lot 5104,12½ Miles, Sungei Berinai Road, Mukim Kapar,Daerah Klang, Selangor.


3 acres/54,600

square feet

6,494

5) No.1, 3, 5, 7, 9 & 11,Jalan Abadi 10D/KU8,Taman Daya Maju, Meru, 41050 Klang, Selangor.

No.1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 & 12, Jalan Abadi 10C/KU8,Taman Daya Maju, Meru, 41050 Klang, Selangor.

No.1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 & 12, Jalan Abadi 10A/KU8, Taman Daya Maju, Meru, 41050 Klang, Selangor.

No.1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 & 12, Jalan Abadi 10B/KU8, Taman Daya Maju, Meru, 41050 Klang, Selangor.

No.85, 87, 89, 91, 93 & 95, Jalan Abadi 1/KU8,Taman Daya Maju, Meru, 41050 Klang, Selangor.

HS (M) 33205 -HS (M) 33252,PT 50423 - PT 50470,Mukim Kapar,Daerah Klang, Selangor.


for staff andworker

Approx 108.85square metres/unit

5,926

6) Lot 5975, Tempat Batu 4½, Jalan Sungai Binjai, 41050 Klang, Selangor.

GM 4437, Lot 5975, Mukim Kapar, Daerah Klang, Selangor.

03/10/2008 (A) N/A Freehold Vacant 0.0275 hectares/2,960

square feet

201

C) TOP GLOVE ENGINEERING SDN. BHD.

1) GRN 285705,Lot 213, Seksyen 2, Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.

GRN 285705, Lot 213, Seksyen 2, Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.

18/04/1996 (A) N/A Freehold Land 3.39 acres/13,716

square metres

2,303

2) GRN 285706, Lot 214, Seksyen 2, Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.



square metres

2,303



300 301

OTHER INFORMATION




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000


GRN 285707,Lot 215, Seksyen 2, Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.


square metres

2,302



12/06/2012 (A) N/A Freehold Land 19.83 acres 11,606





GRN 285710,Lot 218, Seksyen 2, Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.


7) B-28-03 Setia City Residence,No.6, Jalan Setia Dagang AH U13/AH,Setia Alam, Seksyen U13,40170 Shah Alam, Selangor.

HSD 296567,PT 36938,Mukim Bukit Raja,Daerah Petaling,Selangor.

30/09/2016 (A) < 1 Freehold Accommodationfor staff


729

8) B-28-3A Setia City Residence,No.6, Jalan Setia Dagang AH U13/AH,Setia Alam, Seksyen U13,40170 Shah Alam, Selangor.

HSD 296567,PT 36938,Mukim Bukit Raja,Daerah Petaling,Selangor.

30/09/2016 (A) < 1 Freehold Accommodationfor staff

97.08 square feet

636

9) No.11, Jalan Setia Wawasan U13/35D, Bandar Setia Alam, 40170 Shah Alam, Selangor.

HS (D) 291298, PT 32069,Mukim Bukit Raja, Daerah Petaling, Selangor.

05/01/2017 (A) 4 Freehold Bungalow/ Accommodation

for staff

397 square metres

1,685

10) No.13, Jalan Setia Wawasan U13/35D,Bandar Setia Alam,40170 Shah Alam, Selangor.


05/01/2017 (A) 4 Freehold Bungalow/ Accommodation

for staff

397 square metres

1,678

D) TOP GLOVE MEDICAL (THAILAND) CO. LTD.

1) 188, Moo 5, Karnchanawanich Road, Tambon Samnakkham, Sadao, Songkhla 90320, Thailand.

60199, 60200, 60201 & 60202, Tambon Samnakkham, Sadao, Songkhla 90320, Thailand.

28/02/2003 (A) N/A Freehold Land 15.8 acres 3,399 (Thai Baht 26.26 mil)

28/02/2003 (A) 18 Freehold Factory/Officebuilding

9,504 square metres

6,055 (Thai Baht 47.25 mil)

28/02/2003 (A) 18 Freehold Accommodationfor worker

1,200 square metres


01/12/2011 (A) 9 Freehold Factory building 5,134.5 square metres


01/12/2011 (A) 9 Freehold Accommodationfor worker

882 square metres




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

2) Title Deed No.39553, Moo.5 Pruteaw, Karnchanawanich Road, Tambon Samnakkham, Ampur Sadao, Songkhla 90320, Thailand.

Title Deed No. 39553, Moo.5 Pruteaw, Karnchanawanich Road, Tambon Samnakkham, Ampur Sadao, Songkhla 90320, Thailand.

03/03/2005 (A) N/A Freehold Pond Approx 2.8 acres 731 (Thai Baht 5.70 mil)

3) Nor. Sor. 3 Kor No. 637 & 638, Tambon Samnakkham, Ampur Sadao, Songkhla 90320, Thailand.

Nor. Sor. 3 Kor No. 637 & 638, Tambon Samnakkham, Ampur Sadao, Songkhla 90320, Thailand.

16/11/2010 (A) N/A Freehold Land Approx 32 acres 6,302 (Thai Baht 49.18 mil)

4) Title Deed No.38237 & 38236, Tambon Samnakkham, Ampur Sadao, Songkhla 90320, Thailand.

Title Deed No. 38237 & 38236,Tambon Samnakkham, Ampur Sadao, Songkhla 90320, Thailand.

01/12/2016 (A) N/A Freehold Land Approx 21 acres 6,702 (Thai Baht 52.31 mil)

5) Title Deed No.35843 Tambon Samnakkham, Ampur Sadao,Songkhla 90320, Thailand.

Title Deed No.35843 Tambon Samnakkham, Ampur Sadao,Songkhla 90320, Thailand.

27/09/2019 (A) N/A Freehold Land Approx 2.37 acres 591 (Thai Baht 4.61 mil)

E) TG MEDICAL (U.S.A.), INC.

1) 165 - 167 North Aspan Avenue, Azusa, CA 91702, USA.

Assessor’s ID #8615 018 010

31/03/2005 (A) 16 Freehold Warehouse/Office building

25,878 square feet

8,190 (USD 1.97 mil)

2) 153 - 155 North Aspan Avenue, Azusa, CA 91702, USA.

Assessor’s ID #8615 018 011

31/07/2013 (A) 8 Freehold Warehouse/Office building

25,950 square feet

11,555 (USD 2.77 mil)

F) TOP GLOVE TECHNOLOGY (THAILAND) CO., LTD.

1) 188, Moo 5,Tambol Pangla, Ampur Sadao,Songkhla 90170, Thailand.

Channod No.52538, 52539 & 52540, Tambol Pangla, Ampur Sadao, Songkhla, Thailand.

23/02/2006 (A) 15 Freehold Factory/Office building

Approx 40.4 acres/ 47,816.68

square metres

16,705 (Thai Baht 130.37 mil)

G) GREAT GLOVE (XINGHUA) CO., LTD.

1) No. 4 Shazhuang Road,Economic Development District,Xinghua City, 225700 Jiang Su Province,P.R.China.

No. 4 Shazhuang Road,Economic Development District,Xinghua City, 225700 Jiang Su Province,P.R.China.

13/10/2005 (A) 15 Leasehold (Expiring on: Sept 2056)

Factory/Office building, Industrial usage

112,234.48 square metres/


12,745 (RMB 19.77 mil)

H) B TECH INDUSTRY CO., LTD.

1) 268 M.5 T. Kampangphet A.Rattaphum, Songkhla 90180, Thailand.

1. Nor Sor 3 Kor No. 2361

2. Nor Sor 4 Jor No. 5943


01/08/2006 (A) 15 Freehold Factory/ Office building

Approx 44,718square metres/

8,754 square metres

6,177 (Thai Baht 48.20mil)






21/08/2009 (A) 12 Freehold Waste waterpond

Approx 18.64 acres



302 303

OTHER INFORMATION




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

I) FLEXITECH SDN. BHD.

1) Lot 128, Jalan 8, Komplek Olak Lempit, Mukim Tanjung 12,42700 Banting, Selangor.

HS (M) 5719, PT 4049,Komplek Perabot Olak Lempit, Mukim Tanjung Dua Belas, Daerah Kuala Langat, Selangor.


Production/ Warehouse

Approx 11,916 square metres/

6,183 square metres

9,426




Accommodation for worker


6,826 square metres

3,290




Production/ Office building


10,172 square metres

5,523


HS (M) 5720, PT 4050, Komplek Perabot Olak Lempit, Mukim Tanjung Dua Belas, Daerah Kuala Langat, Selangor.


Production/ Office building


6,813 square metres

4,660

5) No.11, Jalan Emas 28, Bandar Sungai Emas, 42700 Banting, Selangor.

GRN 108819, Lot 630, Seksyen 5, Pekan Sungai Manggis, Mukim Tanjong Dua Belas, Daerah Kuala Langat, Selangor.

29/04/2013 (A) 8 Freehold Accommodation for staff

Approx 130 square metres

192

6) No.7, Jalan Emas 28, Bandar Sungai Emas, 42700 Banting, Selangor.

GRN 108817, Lot 628, Seksyen 5, Pekan Sungai Manggis, Mukim Tanjong Dua Belas, Daerah Kuala Langat, Selangor.

19/06/2013 (A) 8 Freehold Accommodation for staff

Approx 130 square metres

202

J) TOP QUALITY GLOVE SDN. BHD.

1) Lot 2604, Mukim Tanjong Dua Belas, Daerah Kuala Langat, Selangor.

GRN 47717, Lot 2604, Mukim Tanjong Dua Belas, Daerah Kuala Langat, Selangor.

25/01/2013 (A) N/A Freehold Land Approx 1.9526 hectares/4 acres 3 rood 12 pole

4,385

2) Lot 2605, Mukim Tanjong Dua Belas,Daerah Kuala Langat, Selangor.


25/01/2013 (A) N/A Freehold Land Approx 2.031 hectares/5 acres

0 rood 3 pole

4,561

3) Lot 2615, Mukim Tanjong Dua Belas, Daerah Kuala Langat, Selangor.


25/01/2013 (A) N/A Freehold Land Approx 1.7376 hectares/4 acres

1 rood 7 pole

3,902

4) Lot 2616,Mukim Tanjong Dua Belas, Daerah Kuala Langat, Selangor.


25/01/2013 (A) N/A Freehold Land Approx 2.0942 hectares/5 acres 0 rood 28 pole

4,703

5) Lot 5135,Jalan Dahlia,Off Jalan Meru,41050 Klang, Selangor.


10/07/2014 (A) N/A Freehold Vacant Approx 4.656 acres/

202,827 square feet

13,646



AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

6) Lot 4977 & 4978, Jalan Dahlia, Off Jalan Meru,41050 Klang, Selangor.

HS (M) 40486, PT 67437,Lot 4977 & 4978, Mukim Kapar, Daerah Klang, Selangor.

01/12/2016 (A) N/A Freehold Land 5.45 acres/2.21 hectares

18,755

01/12/2016 (A) 4 Freehold Factory/Building Double storey office building 8,874

square feet with 2 single storey

warehouse 83,087 square feet

6,700

7) Lot 5144, 6th Miles, Sungai Binjai Road, 41050 Klang, Selangor.


28/12/2016 (A) 2 Freehold Factory Approx 202,824.4square feet

38,280

8) Lot 5145, 6th Miles, Sungai Binjai Road, 41050 Klang, Selangor.


28/12/2016 (A) N/A Freehold Vacant Approx 201,468.1square feet

17,984

9) Lot 5133, Jalan Dahlia, Off Jalan Meru, 41050 Klang, Selangor.

GM 6046, Lot 5133, Mukim Kapar, Daerah Klang, Selangor.

31/08/2021 (R) N/A Freehold Vacant Approx 1.897 hectares

14,739

10) Lot 5054,Jalan Kenangan KU8, Meru, 41050 Klang, Selangor.


11/07/2017 (A) N/A Freehold Vacant Approx 12,267 square metres

11,638

11) Lot 5057,Jalan Kenangan KU8,Meru, 41050 Klang, Selangor.


15/09/2017 (A) N/A Freehold Vacant Approx 1.2267 hectares

11,067

12) Lot 67330,Off Jalan Bunga Raya, 5½ Mile, Jalan Meru,41050 Klang, Selangor.

Geran Mukim 277,Lot 5049,Geran Mukim 149, Lot 5050, Mukim Kapar,Daerah Klang, Selangor.

11/04/2018 (A) N/A Freehold Land 2.091 hectares 19,975

11/04/2018 (A) 2 Freehold Factory/Building 119,353.58square feet

43,151

13) Lot 6472,Lorong Sg Puloh/KU6, Kawasan Perindustrian Sungai Puloh, 42100 Klang, Selangor.


10/07/2018 (A) 3 Freehold Factory Approx 34,499 square metres

65,661

14) Lot 47442,Mukim Hulu Kinta, Daerah Kinta, Perak.

GRN 378905, Lot 47442,Mukim Hulu Kinta, Daerah Kinta, Perak.

14/02/2019 (A) N/A Leasehold Land 217,456 square feet 8,643

15) Lot 4981 & 4982,Jalan Dahlia/KU8,Kawasan Perindustrian Meru Timur, 41050 Klang, Selangor.

GM 5117, Lot 4981,GM 4325, Lot 4982,Mukim Kapar, Daerah Klang, Selangor.

06/05/2019 (A) 2 Freehold Factory 9,609 square metres 40,533

16) Lot 4948, Tempat Batu 5, Jalan Binjai,41050 Klang, Selangor.


24/10/2019 (A) N/A Freehold Land Approx 1.2141 hectares

11,979

17) Lot 12, Jalan Banting Dengkil, Kampong Olak Lempit,42799 Banting, Selangor.

H.S.(D) 41180 & 41181,No. P.T. 43686, Seksyen 2, Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.

13/07/2020 (A) N/A Freehold Land Approx 67,647 square metres

106,075


GRN 47719, Lot 2606,Mukim Tanjong Dua Belas, Daerah Kuala Langat, Selangor.

27/07/2020 (A) N/A Freehold Land Approx 1.9779 hectares /4 acres

3 rood 22 pole

4,677


GRN 33015, Lot 2619,Mukim Tanjong Dua Belas, Daerah Kuala Langat, Selangor.

14/08/2020 (A) N/A Freehold Land Approx 2.1347 hectares /5 acres

1 rood 4 pole

5,731



304 305

OTHER INFORMATION




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

20) Lot 4963, Tempat Batu 5, Jalan Sungei Binjai, 41050 Klang, Selangor.



11,080

21) Lot 13, Pekan Bukit Changgang,42700 Banting, Selangor.

GR 232381, Lot 13, Seksyen 2,Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.


37,546

22) Lot 204 Seksyen 2,Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.

GR 285695, Lot 204, Seksyen 2,Pekan Bukit Changgang, Daerah Kuala Langat, Selangor.


15,497

23) Lot 2618,Mukim Tanjung Dua Belas,Daerah Kuala Langat, Selangor.

GR 60388, Lot 2618,Mukim Tanjung Dua Belas,Daerah Kuala Langat, Selangor.


6,754




7,696




5,093


PT 51671, H.S.(D) 48660, Lot 2601,Mukim Tanjung Dua Belas,Daerah Kuala Langat, Selangor.


2,075




2,196

K) GMP MEDICARE SDN. BHD.




3 acres 9,586

2) Lot 2431,Mukim Port Dickson, Sendayan, 71100 Siliau,Port Dickson, Negeri Sembilan.

Lot 11558,(Baki Lot 2431, PA 50813)Mukim Port Dickson, Daerah Port Dickson, Negeri Sembilan.

06/12/2012 (A) Phase 1: 22 years

Phase 2:19 years

Freehold Factory/Glove manufacturing

16.7 acres/22,000

square metres

24,868

3) Lot 4991, Jalan Bunga Raya, Batu 5½, Off Jalan Meru,41050 Klang, Selangor.



75,669 square feet

9,345

4) Lot 3726, Kawasan Perindustrian Nilai, Mukim Setul, Daerah Seremban, 71800 Nilai, Negeri Sembilan.

GRN 164813, Lot 8196,Mukim Setul, Daerah Seremban, Negeri Sembilan.

14/08/2017 (A) N/A Freehold Land Approx 4.326 acres

19,752

5) Lot 3726,Kawasan Perindustrian Nilai, Mukim Setul, Daerah Seremban, 71800 Nilai, Negeri Sembilan.

Lot 3726,Kawasan Perindustrian Nilai, Mukim Setul, Daerah Seremban, 71800 Nilai, Negeri Sembilan.


Approx 14,256square metres/

153,450 square feet

6,970



AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

L) TOP GLOVE PROPERTIES SDN. BHD.

1) No.16, Persiaran Setia Dagang, Bandar Setia Alam, Seksyen U13,40170 Shah Alam, Selangor.


21/09/2011 (A) 9 Freehold Office Tower 2 acres 163,900

2) No.18, Persiaran Setia Dagang, Bandar Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor.

HS (D) 293019, PT 32307, Mukim Bukit Raja, Daerah Petaling, Selangor.

31/08/2021 (R) N/A Freehold Open Space Carpark


26,100

3) No.20, Persiaran Setia Dagang,Bandar Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor.

HS (D) 293020, PT 32308,Mukim Bukit Raja,Daerah Petaling,Selangor.

31/08/2021 (R) N/A Freehold Open Space Carpark

5,403 square metres

23,400

M) PT. AGRO PRATAMA SEJAHTERA

1) The City Tower, 12th Floor 1N, JL MH Thamrin No.81, Jakarta Pusat 10310, Indonesia.

Bangka Belitung Province


Industrial Forest Plantation

30,773 hectares

20,833 (IDR 71.84 bil)

N) TG PORCELAIN SDN. BHD.


Lot 4946, Jalan Teratai, Batu 6, Off Jalan Meru, 41050 Klang, Selangor.

01/05/2018 (A) 3 Freehold Factory/Former Manufacturing

52,513.14 square feet

6,266

O) ASPION GROUP

1) Lot 7, Jalan Hi Tech 12,Kulim Hi Tech Park (Phase 3), 09090 Kulim, Kedah.

Lot 7 (PT2487), Kulim Hi-Tech Park, Bandar Kulim, Daerah Kulim, Kedah.

04/07/2013 (A) N/A Leasehold (Expiring on 03/07/2073)

Land 2,252,052 square feet

44,133

8 Factory 1,316,383 square feet

25,710

2) Lot E4(3) [PT 4093], No. 2, Jalan 8, Kawasan PerindustrianPengkalan Chepa II, 16100 Kota Bharu, Kelantan.

Lot No 5052, Mukim Panchor, Daerah Kota Bharu, Kelantan.

05/04/2018 (A) N/A Leasehold (Expiring on: 15/02/2063)

Land 2.184 hectares 4,798

05/04/2018 (A) 16 Factory/Office 9,496.09square metres

7,617

3) PLO 9 & 18, Jalan Mahsuri 1, 7.5kmJalan Mersing, Kawasan Perindustrian Kluang, 86007 Kluang, Johor.

PTD 84462, Mukim Kluang, Daerah Kluang, Johor.



05/04/2018 (A) 10 Factory Building 12,225.98square metres

9,222

4) Lot E4(4) [PT 4094], Jalan 8, Kawasan Perindustrian Pengkalan Chepa II, 16100 Kota Bharu, Kelantan.

Lot No 5053, Mukim Panchor, Daerah Kota Bharu, Kelantan.



05/04/2018 (A) 13 Factory Building 14,604.21square metres

8,229

5) Lot E4(6) & Lot E4(7) [PT 4091 & PT 4092],Kawasan Perindustrian Pengkalan Chepa II, 16100 Kota Bharu, Kelantan.

Lot No 5050, 5051, Mukim Panchor, Daerah Kota Bharu, Kelantan.


Land/Biomass plant

Lot 5050: 2.640 hectares

Lot 5051: 2.366 hectares

10,675

05/04/2018 (A) 15 Factory/Warehouse

10,546.36square metres

5,879

05/04/2018 (A) 7 Freehold Office building/ Warehouse

2.64 hectares 4,868



306 307

OTHER INFORMATION




AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

6) PLO 5, Jalan Mahsuri 1,7.5KM, Jalan Mersing, Kawasan Perindustrian Kluang, 86000 Kluang, Johor.

Lot PTD 38818 ,No. HS (D) 23914,Mukim of Kluang,Daerah Kluang, Johor.


Land 3 acres 1,517

05/04/2018 (A) 33 Factory/Glovemanufacturing


3,323

7) PLO 12, Jalan Mahsuri 1,7.5KM, Jalan Mersing, Kawasan Perindustrian Kluang, 86000 Kluang, Johor.

Lot PTD 26427,No. HS (D) 25436,Mukim of Kluang,Daerah Kluang,Johor.


Land 3.206 acres 1,198

05/04/2018 (A) 14 Factory/Glovemanufacturing


3,901

8) Lot 366,GM 2547,Mukim of Kluang,Daerah Kluang, Johor.

GM 2547,Mukim of Kluang,Daerah Kluang,Johor.

05/04/2018 (A) N/A Freehold Agricultural land 1.467 hectares 363

P) GREAT GLOVE (THAILAND) CO., LTD.

1) 180/3 Moo.7, Srisonthon Rd., T.Srisonthon, A.Thalang,Phuket 83110 Thailand.

180/3 Moo.7, Srisonthon Rd., T.Srisonthon, A.Thalang,Phuket 83110 Thailand.

28/02/2006 (A) 15 Freehold Building Block A 3,832 square metres


01/10/2016 (A) 4 Freehold Building Block B 4,616 square metres


2) Title Deed No.64761, 64762, 64763,Moo.7 Srisonthon Rd.,T.Srisonthon, A.Thalang, Phuket 83110 Thailand.

Title Deed No.64761,64762, 64763,Moo.7 Srisonthon Rd.,T.Srisonthon, A.Thalang, Phuket 83110 Thailand.

05/09/2019 (A) N/A Freehold Pond Approx 13.5 acres 2,467 (Thai Baht 19.25 mil)

Q) TG FMT SDN. BHD.

1) Lot 4987, Jalan Bunga Raya, Batu 6 Off Jalan Meru, 41050 Klang, Selangor.

Block B, Lot 4987, Jalan Bunga Raya, Batu 6 Off Jalan Meru, 41050 Klang, Selangor.

01/06/2017 (A) 4 Freehold Building 31,345 square feet

3,854

R) EASTERN PRESS SDN. BHD.

1) Lot 1, Jalan Paku 16/6, 40000 Shah Alam, Selangor.

HS (D) 167430, Lot 1, Mukim Damansara, Petaling Jaya, Selangor.


Production use 3,121.44 square metres/


5,152


Q.T. R. 4248 L.O.No Lot 3, Jalan Paku 2/6, Mukim Damansara, District Klang.

05/01/2018 (A) 31 Leasehold(Expiring on:03/04/2068)



4,871


Kawasan Kilang Berderet Seksyen 16, Shah Alam, Selangor.




3,946

4) Lot 13 & Lot 15, Jalan Paku 2/6, 40000 Shah Alam,Selangor.

Q.T. R. 4253 & 4254, Jalan Paku 2/6, Mukim of Damansara, District Klang.


Production use Lot 13: 1,755.81

square metres/951.6

square metres

7,366

25 Production use Lot 15: 1,718.65

square metres/1,137.51

square metres



AGE OF BUILDING,



AUDITED NET BOOK

VALUE AS AT 31/08/2021,

RM’000

5) Unit B2-602 Block 2, Pangsapuri Anggerik Indah, Jalan Sempadan 16/7, Seksyen 16, 40200 Shah Alam, Selangor.

Lot 10970, Section 16, Shah Alam/Petaling/Pajakan Negeri 110147 Apartment.


Workers apartment 823 square feet

59

6) Unit B2-604 Block 2, Pangsapuri Anggerik Indah, Jalan Sempadan 16/7, Seksyen 16, 40200 Shah Alam, Selangor.

Lot 10970, Section 16, Shah Alam/Petaling/Pajakan Negeri 110147 Apartment.



65


HS (D) 167468, No 9,Mukim Damansara, Daerah Petaling, Selangor.




2,854


HS (D) 308675, Lot 7,Mukim Damansara,Daerah Petaling, Selangor.




3,381

9) Unit 7-10-1,Suria Avenue, Lot 1, Jalan Dawai 16/2, Seksyen 16,40200 Shah Alam, Selangor.

Lot 745, Section 16, Shah Alam/Petaling/Pajakan Negeri 24691/M1/10/145 Apartment.



272

10) Unit 9-10-1, Suria Avenue, Lot 1, Jalan Dawai 16/2, Seksyen 16, 40200 Shah Alam, Selangor.

Lot 745, Section 16, Shah Alam/Petaling/Pajakan Negeri 24691/M1/10/145 Apartment.


Workers apartment 1,006 square feet

272


HS (D) 79920, No 11,Mukim Damansara, Daerah Petaling, Selangor.




2,827

S) TOP GLOVE VIETNAM COMPANY LIMITED

1) Land Lot A_8B_CN, Bau Bang Industrial Park, Lai Uyen Town,Bau Bang District, Binh Duong Province, Vietnam.

Land Lot A_8B_CN, Bau Bang Industrial Park, Lai Uyen Town, Bau Bang District, Binh Duong Province, Vietnam.


Production Office Warehouse

218,212 square metres

73,681 (USD 17.67 mil)



308 309

OTHER INFORMATION


ANALYSIS OF SHAREHOLDINGSAs at 27 October 2021 (cont’d)

ANALYSIS OF SHAREHOLDINGSAs at 27 October 2021

Share CapitalTotal Issued Shares : 8,207,013,034 Ordinary Shares (including 199,913,800 Treasury Shares)Types of Shares : Ordinary SharesVoting Rights : One (1) vote per Ordinary Share on a poll

1. DISTRIBUTION OF SHAREHOLDINGS

Size of Holdings No. of Holders^ %^ No. of Holdings^ %^

1 to 99 571 0.44 12,366 0.00

100 to 1,000 35,922 27.68 23,761,104 0.30

1,001 to 10,000 68,964 53.13 288,095,062 3.60

10,001 to 100,000 21,796 16.79 600,843,264 7.50

100,001 to 400,354,960 (less than 5% of Issued Shares)

2,542 1.96 5,324,325,924 66.50

400,354,961 (5% of Issued Shares) and above

3 0.00 1,770,061,514 22.11

Total 129,798 100.00 8,007,099,234* 100.00

Note: ^ Excluding Treasury Shares* Out of the total holdings of 8,007,099,234 shares, 612,170,048 shares were traded in Singapore Exchange Securities

Trading Limited

2. SUBSTANTIAL SHAREHOLDERS

The Substantial Shareholders of the Company based on the Register of Substantial Shareholders of the Company and their respective shareholdings are as follows:

No. Name of Substantial Shareholders

No. of Ordinary Shares Held

Direct %^ Indirect %^

1. Tan Sri Dr Lim Wee Chai 2,159,032,356 26.964 680,191,448 * 8.495

2. Puan Sri Tong Siew Bee 22,562,876 0.282 2,816,660,928 ** 35.177

3. Lim Hooi Sin 100,061,244 1.250 2,738,962,560 *** 34.207

4. Lim Jin Feng 200,000 0.002 2,738,962,560 *** 34.207

5. Firstway United Corp 554,966,328 6.931 - -

6. Employees Provident Fund Board 498,567,966 6.227 - -

Note:^ Calculated based on 8,007,099,234 Ordinary Shares (Issued share capital of 8,207,013,034 Ordinary Shares less

Treasury Shares of 199,913,800)* Deemed interested by virtue of the shareholding of Puan Sri Tong Siew Bee, Mr. Lim Hooi Sin, Mr. Lim Jin Feng,

Firstway United Corp, Top Fortress Ventures Limited and TS Dr Lim WC (L) Foundation in Top Glove** Deemed interested by virtue of the shareholding of Tan Sri Dr Lim Wee Chai, Mr. Lim Hooi Sin, Mr. Lim Jin Feng,

Firstway United Corp, Top Fortress Ventures Limited and TS Dr Lim WC (L) Foundation in Top Glove*** Deemed interested by virtue of the shareholding of Tan Sri Dr Lim Wee Chai, Puan Sri Tong Siew Bee, Firstway United

Corp, Top Fortress Ventures Limited and TS Dr Lim WC (L) Foundation in Top Glove

3. DIRECTORS’ SHAREHOLDINGS

The Directors’ Shareholdings of Top Glove based on the Register of Directors’ Shareholdings and/or Record of Depositors are as follows:

No. Name of DirectorsNo. of Ordinary Shares Held

Direct %^ Indirect %^1. Tan Sri Dr Lim Wee Chai 2,159,032,356 26.964 680,191,448 * 8.495

2. Tan Sri Rainer Althoff 2,000 0.000 - -

3. Dato’ Lee Kim Meow 1,782,000 0.022 120,000 ** 0.001

4. Puan Sri Tong Siew Bee 22,562,876 0.282 2,816,660,928 *** 35.177

5. Lim Hooi Sin 100,061,244 1.250 2,738,962,560 **** 34.207

6. Lim Cheong Guan 418,000 0.005 - -

7. Dato’ Lim Han Boon 260,000 0.003 - -

8. Datuk Noripah Kamso 205,000 0.003 - -

9. Sharmila Sekarajasekaran 30,037,500 0.375 1,200,000 ***** 0.015

10. Datuk Dr. Norma Mansor - - 32,900 ****** 0.000

11. Azrina Arshad 10,000 0.000 - -

12. Lim Andy 307,500 0.004 - -

Note: ^ Calculated based on 8,007,099,234 Ordinary Shares (Issued share capital of 8,207,013,034 Ordinary Shares less

Treasury Shares of 199,913,800)* Deemed interested by virtue of the shareholding of Puan Sri Tong Siew Bee, Mr. Lim Hooi Sin, Mr. Lim Jin Feng,

Firstway United Corp, Top Fortress Ventures Limited and TS Dr Lim WC (L) Foundation in Top Glove** Deemed interested through his wife, Madam Chung Lee Moy*** Deemed interested by virtue of the shareholding of Tan Sri Dr Lim Wee Chai, Mr. Lim Hooi Sin, Mr. Lim Jin Feng,

Firstway United Corp, Top Fortress Ventures Limited and TS Dr Lim WC (L) Foundation in Top Glove**** Deemed interested by virtue of the shareholding of Tan Sri Dr Lim Wee Chai, Puan Sri Tong Siew Bee, Firstway United

Corp, Top Fortress Ventures Limited and TS Dr Lim WC (L) Foundation in Top Glove***** Deemed interested by virtue of her direct interest in Trinity Worldwide Holdings Limited ****** Deemed interested through her husband, Shamsuddin Bin Ali Hussin

The Directors’ Share Options held under the Employees’ Share Option Scheme of the Company based on the Register of Directors’ Shareholding are as follows:

No. Name of Directors No. of Options HeldDirect Indirect

1. Tan Sri Dr Lim Wee Chai 3,131,700 871,100 *

2. Tan Sri Rainer Althoff - -

3. Dato’ Lee Kim Meow - -

4. Puan Sri Tong Siew Bee 127,500 3,875,300 **

5. Lim Hooi Sin 600,500 3,259,200 ***

6. Lim Cheong Guan 577,500 -

7. Dato’ Lim Han Boon - -

8. Datuk Noripah Kamso - -

9. Sharmila Sekarajasekaran - -

10. Datuk Dr. Norma Mansor - -

11. Azrina Arshad - -

12. Lim Andy - -

Note:* Deemed interested through Puan Sri Tong Siew Bee, Mr. Lim Hooi Sin and Mr. Lim Jin Feng’s options held in Top Glove** Deemed interested through Tan Sri Dr Lim Wee Chai, Mr. Lim Hooi Sin and Mr. Lim Jin Feng’s options held in Top Glove*** Deemed interested through Tan Sri Dr Lim Wee Chai and Puan Sri Tong Siew Bee’s options held in Top Glove

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OTHER INFORMATION


NOTICE OF THE TWENTY THIRD ANNUAL GENERAL MEETINGNOTICE IS HEREBY GIVEN THAT the Twenty Third Annual General Meeting (“23rd AGM”) of Top Glove Corporation Bhd (“Top Glove” or “Company”) will be conducted virtually for the purpose of considering and if thought fit, passing with or without modifications, the resolutions set out in this notice:

Day and Date : Thursday, 6 January 2022Time : 10:30 a.m.Broadcast Venue : TG Grand Ballroom Level 9, Top Glove Tower, 16, Persiaran Setia Dagang, Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor Darul Ehsan, Malaysia (Members/Proxies/Corporate Representatives will not be allowed to be physically present

at the Broadcast Venue)Online Meeting Platform : Securities Services ePortal https://sshsb.net.my/Modes of Communication : 1. Typed text in the Online Meeting Platform 2. Email your questions to [email protected] prior to the 23rd AGM

AGENDA

1. To receive the Audited Financial Statements for the financial year ended 31 August 2021 together with the Reports of the Directors and the Auditors thereon.

Please refer to Explanatory Note 1

2. To re-elect the following Directors who retire pursuant to Article 94 of the Company’s Constitution and being eligible, have offered themselves for re-election:

(a) Lim Hooi Sin(b) Dato’ Lee Kim Meow(c) Azrina Arshad


3. To approve the payment of Directors’ fees for the financial year ended 31 August 2021.


4. To approve the payment of Directors’ benefits (excluding Directors’ fees) to the Non-Executive Directors up to an amount of RM300,000.00 from 7 January 2022 until the next Annual General Meeting of the Company to be held in year 2023.


5. To re-appoint Messrs. Ernst & Young PLT as Auditors of the Company until the conclusion of the next Annual General Meeting and to authorise the Directors to fix their remuneration.


6. As Special Business

To consider and, if thought fit, with or without any modification, to pass the following resolutions which will be proposed as Ordinary Resolutions:

(Resolution 1)(Resolution 2)(Resolution 3)

(Resolution 4)

(Resolution 5)

(Resolution 6)

4. THIRTY (30) LARGEST SECURITIES ACCOUNT HOLDERS AS PER THE RECORD OF DEPOSITORS No. Names Shareholdings %^1. CIMSEC Nominees (Tempatan) Sdn. Bhd.

- CIMB for Tan Sri Dr Lim Wee Chai (PB)743,833,200 9.29

2. Citigroup Nominees (Asing) Sdn. Bhd.- Exempt An for The Central Depository (Pte) Limited

612,170,048 7.65

3. Citigroup Nominees (Tempatan) Sdn. Bhd.- Employees Provident Fund Board

414,058,266 5.17

4. Citigroup Nominees (Tempatan) Sdn. Bhd.- Exempt An for Bank of Singapore Limited (Local)

225,200,000 2.81

5. CIMSEC Nominees (Asing) Sdn. Bhd.- CIMB for Firstway United Corp (PB)

182,245,528 2.28

6. Citigroup Nominees (Asing) Sdn. Bhd.- Exempt An for UBS AG Singapore (Foreign)

166,230,000 2.08

7. CIMB Group Nominees (Tempatan) Sdn. Bhd.- Pledged securities account – DBS Bank Ltd for Tan Sri Dr Lim Wee Chai (SG1400360353)

150,000,000 1.87

8. Tan Sri Dr Lim Wee Chai 143,478,700 1.799. MFP Capital Corporation 125,952,922 1.5710. UOBM Nominees (Tempatan) Sdn. Bhd.

- United Overseas Bank Nominees (Pte) Ltd for Tan Sri Dr Lim Wee Chai122,100,000 1.52

11. Kumpulan Wang Persaraan (Diperbadankan) 121,735,550 1.5212. HSBC Nominees (Tempatan) Sdn. Bhd.

- Pledged securities account – HBAP SG for Tan Sri Dr Lim Wee Chai (PB-SGDIV)114,000,000 1.42

13. UOBM Nominees (Tempatan) Sdn. Bhd.- United Overseas Bank Nominees (Pte) Ltd for Tan Sri Dr Lim Wee Chai

105,900,000 1.32

14. Maybank Nominees (Tempatan) Sdn. Bhd.- Nomura Singapore Limited for Tan Sri Dr Lim Wee Chai (419597)

90,000,000 1.12

15. HSBC Nominees (Asing) Sdn. Bhd.- JPMCB NA for Vanguard Emerging Markets Stock Index Fund

73,683,690 0.92

16. HSBC Nominees (Asing) Sdn. Bhd.- J.P. Morgan Securities PLC

72,427,124 0.90

17. HSBC Nominees (Asing) Sdn. Bhd.- JPMCB NA for Vanguard Total International Stock Index Fund

68,951,098 0.86

18. Cartaban Nominees (Asing) Sdn. Bhd.- Exempt An for State Street Bank & Trust Company (West CLT OD67)

65,331,394 0.82

19. Lim Hooi Sin 61,736,760 0.7720. Citigroup Nominees (Tempatan) Sdn. Bhd.

- Exempt An for AIA Bhd.60,926,200 0.76

21. Maybank Nominees (Tempatan) Sdn. Bhd.- Maybank Trustees Berhad for Public Ittikal Fund (N14011970240)

60,000,000 0.75

22. RHB Capital Nominees (Asing) Sdn. Bhd.- Pledged securities account for Firstway United Corp (RHB Bank (L) Ltd)

59,600,000 0.74

23. Cartaban Nominees (Tempatan) Sdn. Bhd.- Exempt An for LGT Bank AG (Local)

57,940,000 0.72

24. Cartaban Nominees (Tempatan) Sdn. Bhd.- PAMB for Prulink Equity Fund

56,686,600 0.71

25. Tan Sri Dr Lim Wee Chai 55,800,000 0.7026. Maybank Nominees (Tempatan) Sdn. Bhd.

- Maybank Trustees Berhad for Public Regular Savings Fund (N14011940100)48,269,500 0.60

27. Citigroup Nominees (Tempatan) Sdn. Bhd.- Bank of Singapore Limited for Tan Sri Dr Lim Wee Chai

48,000,000 0.60

28. Cartaban Nominees (Asing) Sdn. Bhd.- State Street Australia Fund Remi for Retail Employees Superannuation Trust

47,837,189 0.60

29. RHB Nominees (Tempatan) Sdn. Bhd.- Tan Sri Dr Lim Wee Chai

46,856,200 0.59

30. Tan Sri Dr Lim Wee Chai 46,853,256 0.59Total 4,247,803,225 53.05

Note: ^ Calculated based on 8,007,099,234 Ordinary Shares (Issued share capital of 8,207,013,034 Ordinary Shares less Treasury Shares of

199,913,800)

ANALYSIS OF SHAREHOLDINGSAs at 27 October 2021 (cont’d)

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OTHER INFORMATION


(Resolution 7)

(a) Ordinary Resolution No. 1 Authority to Issue Shares pursuant to the Companies Act 2016 (“the Act”)

“THAT subject to the Act, the Constitution of the Company, and the approvals from Bursa Malaysia Securities Berhad (“Bursa Securities”) and any relevant governmental/regulatory authority, the Directors of the Company be and are hereby empowered, pursuant to the Act, to issue and allot shares in the Company, at any time to such persons and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion, deem fit, provided that the aggregate number of shares issued pursuant to this resolution does not exceed ten per centum (10%) of the total number of issued shares of the Company for the time being; AND THAT the Directors be and are also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on Bursa Securities; AND FURTHER THAT such authority shall commence immediately upon the passing of this resolution and continue to be in force until the conclusion of the next Annual General Meeting of the Company.”


(b) Ordinary Resolution No. 2 Proposed Renewal of Share Buy-Back Authority

“THAT subject to the Companies Act 2016 (“the Act”), the Company’s Constitution, Bursa Malaysia Securities Berhad (“Bursa Securities”) Main Market Listing Requirements (“Main LR”) and the approvals of all relevant governmental and/or regulatory authorities (if any), the Company be and is hereby authorised to purchase such amount of ordinary shares in the Company (“Proposed Share Buy-Back”) as may be determined by the Board of Directors (“Board”) from time to time through Bursa Securities upon such terms and conditions as the Board may deem fit and expedient in the interest of the Company provided that the aggregate number of shares purchased pursuant to this resolution shall not exceed ten per centum (10%) of the total number of issued shares of the Company;

THAT the maximum amount of funds to be utilised for the purpose of the Proposed Share Buy-Back shall not exceed the aggregate retained profits of the Company based on its audited financial statements for the financial year ended 31 August 2021 of RM2,492,055,000;

THAT at the discretion of the Board, the shares of the Company to be purchased are proposed to be cancelled and/or retained as treasury shares and/or distributed as dividends and/or resold on Bursa Securities and/or transferred the shares for the purposes of or under an employees’ share scheme in the manner as prescribed by the Act, rules, regulations and orders made pursuant to the Act and Bursa Securities Main LR and any other relevant authorities for the time being in force;

THAT such authority shall commence immediately upon passing of this resolution until:

(i) the conclusion of the next Annual General Meeting of the Company following this general meeting at which such resolution was passed at which time it will lapse unless by ordinary resolution passed at that Meeting, the authority is renewed, either unconditionally or subject to conditions;

(ii) the expiration of the period within which the next Annual General Meeting after that date is required by law to be held; or

(iii) the authority is revoked or varied by ordinary resolution passed by the shareholders of the Company in general meeting,

whichever is the earlier;

NOTICE OF THE TWENTY THIRD ANNUAL GENERAL MEETING

AND THAT the Board be and is hereby authorised to take such steps to give full effect to the Proposed Share Buy-Back with full power to assent to any condition, modification, variation and/or amendment as may be imposed by the relevant authorities and/or to do all such acts and things as the Board may deem fit and expedient in the best interest of the Company.”


7. To transact any other ordinary business for which due notice shall have been given.

By Order of the Board of Directors

(Resolution 8)

CHUA SIEW CHUAN CHIN MUN YEE LIM KEAT SEESSM PC No.: 201908002648 SSM PC No.: 201908002785 SSM PC No.: 201908001159MAICSA No.: 0777689 MAICSA No.: 7019243 MAICSA No.: 7020290Chartered Secretary Chartered Secretary Chartered Secretary

Shah Alam12 November 2021


NOTES:

1. The 23rd AGM will be conducted virtually through live streaming and online remote voting via the Remote Participation and Voting (“RPV”) facilities to be provided by SS E Solutions Sdn. Bhd. via Securities Services ePortal’s platform at https://sshsb.net.my/. Please follow the procedures provided in the Administrative Details for the 23rd AGM in order to register, participate and vote remotely via the RPV facilities.

2. The Broadcast Venue is strictly for the purpose of complying with Section 327(2) of the Companies Act 2016 (“the Act”) and Article 64A of the Company’s Constitution which require the Chairman of the Meeting to be present at the main venue of the Meeting. Members/proxies/corporate representatives will not be allowed to be physically present at the Broadcast Venue.

3. In respect of deposited securities, only members whose names appear in the Record of Depositors on 31 December 2021 (General Meeting Record of Depositors) shall be eligible to participate in the 23rd AGM.

4. A member of the Company entitled to participate and vote at the 23rd AGM is entitled to appoint not more than two (2) proxies to participate, speak and vote in his/her stead. A proxy may but need not be a member of the Company and a member may appoint any person to be his/her proxy. There shall be no restriction as to the qualification of the proxy. A proxy appointed by the member shall have the same rights as the member to participate, speak and vote at the 23rd AGM. The members or their proxies or their corporate representatives may submit questions to the Company at [email protected] prior to the 23rd AGM or via real time submission of typed texts

through a text box within Securities Services ePortal’s platform during live streaming of the 23rd AGM as the primary mode of communication. In the event of any technical glitch in the primary mode of communication, shareholders, proxies and corporate representatives may email their questions to [email protected] during the 23rd AGM.

5. Where a holder appoints more than one (1) proxy, the appointment shall be invalid unless he/she specifies the proportion of his/her shareholdings to be represented by each proxy.

6. The instrument appointing a proxy or representative and the duly registered power of attorney or other authority, if any, shall be in writing under the hand of the appointor or his/her attorney duly appointed under a Power of Attorney or, if such appointor is a corporation, either under its seal or under the hand of an officer or attorney duly appointed under a Power of Attorney.

7. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one (1) securities account (“Omnibus Account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each Omnibus Account it holds.

8. The instrument appointing a proxy may be made via hardcopy or by electronic means in the following manner and must be received by the Company not less than forty-eight (48) hours before the time appointed for holding the 23rd AGM or at any adjournment thereof:

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OTHER INFORMATION


(i) In Hardcopy Form The proxy form shall be deposited at the Share Registrar’s office, Securities Services (Holdings) Sdn. Bhd. at Level

7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia.

(ii) By Electronic Means The proxy form shall be electronically lodged via Securities Services ePortal’s platform at https://sshsb.net.my/ or

by fax to +603 2094 9940 or by email to [email protected].

EXPLANATORY NOTES:

1. Audited Financial Statements for the financial year ended 31 August 2021 The Audited Financial Statements under Agenda 1 is meant for discussion only as the provision of Section 340(1) of the Act

does not require the Audited Financial Statements to be formally approved by the shareholders. As such, this item is not put forward for voting.

2. Re-election of Directors who retire by rotation pursuant to Article 94 of the Company’s Constitution Article 94 of the Company’s Constitution provides that one-third (1/3) of the Directors of the Company for the time being

shall retire by rotation at an Annual General Meeting (“AGM”) of the Company. All the Directors shall retire from office once at least in each three (3) years but shall be eligible for re-election.

The Board of Directors (“Board”) through the Board Nomination and Remuneration Committee has conducted an assessment on all the Directors via the Board Effectiveness Evaluation 2021, facilitated by an independent expert, KPMG Management & Risk Consulting Sdn. Bhd. The Board is satisfied with the individual performance of the following retiring Directors. The Board endorsed the Board Nomination and Remuneration Committee’s recommendation on the re-election of the retiring Directors.

The Board agreed to propose to the shareholders for re-election of the following retiring Directors, based on the following justifications:

Director subject to re-election pursuant to Article 94

Statement of Support by the Board

Lim Hooi Sin 1. Having served Top Glove Group for more than 27 years, he is familiar with the Company’s business operations and continued to take a holistic approach in managing the business operations of the Group.

2. His wealth of experience in sales and marketing enable him to assist the Company in overseeing the business operations of all overseas subsidiaries.

Dato’ Lee Kim Meow 1. Having served Top Glove Group for more than 24 years, his vast experience in the Company enables him to provide strategic advice to the Chairman and the Board. He drives the strategic plans set by the Board.

2. He is recognised for his valuable contribution in the rubber glove industry in Malaysia as well as ASEAN region, which enable him to provide valuable insights during the Board’s strategic meeting.

3. He had demonstrated active participation in the Boardroom and served as one of the main spokespersons for the Company, representing the Company well in the public.

Azrina Arshad 1. She has fulfilled the criteria of independence contained in the Corporate Governance Guide issued by Bursa Securities. She remains objective and independent in expressing her view and actively participating in the Board’s deliberations and decision-making process.

2. Her previous experience in the fields of architectural are highly valued by the Company in advising the Company in its existing and future expansion plan.

3. She is regarded as valuable addition to the boardroom having showed her commitment in the sustainability development of the Company.

4. She is not involved in any potential conflict of interest that might adversely affect her ability to perform her duties properly.


Puan Sri Tong Siew Bee, the Non-Independent Non-Executive Director of the Company who has served on the Board for more than 21 years and who retires by rotation in accordance with Article 94 of the Company’s Constitution, has notified the Board that she does not wish to seek for re-election as Director. Hence, she shall retire as Director at the conclusion of the 23rd AGM.

The profiles of the Directors who are standing for re-election are stated on pages 17, 20 and 26 of the Integrated Annual Report 2021.

Any Director referred to in Resolutions 1 to 3, who is a shareholder of the Company will abstain from voting on the resolution in respect of his/her re-election at the 23rd AGM.

3. Determination and Payment of Directors’ Fees Paragraph 7.24 of Bursa Securities Main LR stipulates that the fees of Directors and any benefits payable to Directors shall

be subject to annual shareholders’ approval at a general meeting. Therefore, shareholders’ approval is required for the determination and payment of Directors’ fees amounting to RM1,831,500 for the financial year ended 31 August 2021.

The following table outlines the Directors’ fees structure for financial year ended 31 August 2021:

Annual Fees (RM)

Board Executive Chairman 150,000

Managing Director 130,000

Executive Director and Non-Executive Director 120,000

Senior Independent Non-Executive Director 128,000

Board Audit Committee 7,000

Board Risk Committee 7,000

Board Nomination and Remuneration Committee 4,000

Board Sustainability Committee 4,000

4. Directors’ Benefits (excluding Directors’ Fees) The Directors’ benefits (excluding Directors’ fees) comprise the meeting allowances payable to the Non-Executive Directors.

The meeting allowances are fixed as follows:

Type of Meeting Meeting Allowance per Meeting (RM)

Chairman Non-Executive Director/Member

Board Nil 1,500

General Nil 1,500

Board Committee 1,200 1,000

In determining the estimated total Directors’ benefits (excluding Directors’ fees) for the period commencing 7 January 2022

until the next AGM (“Relevant Period”), the size of the Board and Board Committees as well as the estimated number of meetings scheduled to be held during the Relevant Period were taken into consideration. As there is no change to the fixed meeting allowance, the Board is recommending an estimated total amount of RM300,000 as per previous AGM.

Subject to the shareholders’ approval of Ordinary Resolutions 4 and 5, the payment for fees will be made to the Directors after the AGM while Directors’ benefits will be made by the Company as and when incurred. The Board opined that the payments to the Directors are just and equitable taking into account their roles and responsibilities towards the Group and the services that they have rendered to the Company.

Directors who are also shareholders of the Company will abstain from voting on the resolution in respect of the fees and benefits payable to him/her.


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OTHER INFORMATION


5. Re-appointment of Auditors The Board Audit Committee and the Board have considered the re-appointment of Messrs. Ernst & Young PLT as Auditors

of the Company, are satisfied with the performance, competency, audit approach and independence of Messrs. Ernst & Young PLT and viewed that they have met the relevant criteria prescribed by Paragraph 15.21 of Bursa Securities Main LR.

The Board endorsed the Board Audit Committee’s recommendation to seek for shareholders’ approval to re-appoint Messrs. Ernst & Young PLT as external auditors of the Company until the conclusion of the next AGM and to authorise the Directors to fix their remuneration.

6. Authority to Issue Shares pursuant to the Act The proposed adoption of Ordinary Resolution No. 1 is for the purpose of granting a renewed general mandate (“General

Mandate”) and empowering the Directors of the Company, pursuant to the Act, to issue and allot new shares in the Company from time to time provided that the aggregate number of shares issued pursuant to the General Mandate does not exceed ten per centum (10%) of the total number of issued shares of the Company for the time being. The General Mandate, unless revoked or varied by the Company in general meeting, will expire at the conclusion of the next AGM of the Company.

The General Mandate will provide flexibility to the Company for allotment of shares for any possible fundraising activities, including but not limited to placement of shares for the purpose of funding future investment project(s), working capital and/or acquisition(s).

As at the date of this Notice, there were no new shares issued pursuant to the mandate granted to the Directors at the Twenty Second (“22nd”) AGM held on 6 January 2021 and which will lapse at the conclusion of the 23rd AGM.

7. Proposed Renewal of Authority for Share Buy-Back The proposed adoption of Ordinary Resolution No. 2 is for the purpose of renewing the authority granted by the shareholders

of the Company at the 22nd AGM held on 6 January 2021. The aforesaid proposed renewal will allow the Board to exercise the power of the Company to purchase not more than ten per centum (10%) of the total number of issued shares of the Company at any time within the time period stipulated in Bursa Securities Main LR.

Personal Data Privacy:By submitting an instrument appointing a proxy(ies) and/or representative(s) to participate and vote at the 23rd AGM and/or any adjournment thereof, a member of the Company (i) consents to the collection, use and disclosure of the member’s personal data by the Company (or its agents) for the purpose of the processing and administration by the Company (or its agents) of proxies and representatives appointed for the 23rd AGM (including any adjournment thereof) and the preparation and compilation of the attendance lists, minutes and other documents relating to the 23rd AGM (including any adjournment thereof), and in order for the Company (or its agents) to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively, the “Purposes”), (ii) warrants that where the member discloses the personal data of the member’s proxy(ies) and/or representative(s) to the Company (or its agents), the member has obtained the prior consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Company (or its agents) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the member will indemnify the Company in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the member’s breach of warranty.

STATEMENT ACCOMPANYING NOTICE OF AGM As at the date of this Notice, there are no individuals who are standing for election as Directors (excluding the above Directors who are standing for re-election) at this 23rd AGM.


ADMINISTRATIVE DETAILS FOR 23RD ANNUAL GENERAL MEETING In light of the recent COVID pandemic and as a precautionary measure, Top Glove Corporation Bhd (“Top Glove”) will conduct its 23rd Annual General Meeting (“AGM”) on a virtual basis by way of live streaming and online remote voting via Remote Participation and Voting (“RPV”) facilities which are available on Securities Services ePortal, details as set out below:

Day and Date : Thursday, 6 January 2022Time : 10:30 a.m.Broadcast Venue : TG Grand Ballroom Level 9, Top Glove Tower, 16, Persiaran Setia Dagang, Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor Darul Ehsan, Malaysia (Members/Proxies/Corporate Representatives will not be allowed to be physically

present at the Broadcast Venue)Online Meeting Platform : Securities Services ePortal https://sshsb.net.my/Modes of Communication : 1. Typed text in the Online Meeting Platform 2. Email your questions to [email protected] prior to the AGM

Remote Participation and Voting

1. Only shareholders whose names appear on the General Meeting Record of Depositors as at 31 December 2021 shall be eligible to participate in the AGM or appoint proxy(ies) or corporate representative(s) to participate and/or vote on his/her behalf.

2. Since the AGM will be conducted virtually, shareholders/proxies/corporate representatives will not be allowed to be physically present at the Broadcast Venue.

3. Shareholders who wish to participate at the AGM are required to (i) register as a user of the Securities Services ePortal no later than 12:30 p.m. on Wednesday, 5 January 2022 AND (ii) register for the remote participation via https://sshsb.net.my/ no later than the ‘Questions and Answer’ session or when the Chairman announces that the AGM registration is closed, whichever is the earlier. Please refer to the Securities Services ePortal User Guide in Appendix I.

4. Securities Services ePortal allows individual and body corporate shareholders, through their appointed representatives to:(a) Submit proxy forms electronically;(b) Register for RPV at meeting;(c) Attend and participate in the meeting via live

streaming; and(d) Vote online on resolutions tabled at meeting.

5. Please note that no recording or photography of the AGM proceedings is allowed and must ensure that you are connected to the internet at all times in order to participate and vote when the AGM has commenced. Therefore, it is your responsibility to ensure that connectivity for the duration of the AGM is maintained.

Appointment of Proxy

1. If a shareholder is unable to participate at the AGM via the RPV facilities, he/she may appoint not more than two (2) proxies to participate, speak and vote on his/her behalf. He/she may also appoint the Chairman of the Meeting as his/her proxy and indicate the voting instructions in the proxy form.

2. If you wish to participate at the AGM yourself, please do not submit any proxy form. A shareholder will not be allowed to participate at the AGM if his/her proxy(ies) has/have been appointed to participate at the AGM, unless he revokes the proxy appointment and registers for the AGM.

3. The appointment of proxy may be made in a hardcopy form or by electronic means as follows:

In Hardcopy Form The proxy form shall be deposited at the Share

Registrar’s office, Securities Services (Holdings) Sdn. Bhd. at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia, no later than 10:30 a.m. on Tuesday, 4 January 2022.

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OTHER INFORMATION


By Electronic Means The proxy form shall be electronically lodged via

Securities Services ePortal’s platform at https://sshsb.net.my/ or by fax to +603 2094 9940 or by email to [email protected] no later than 10:30 a.m. on Tuesday, 4 January 2022. Please refer to the Securities Services ePortal User Guide in Appendix I.

4. Appointed proxies need not register for remote participation but are required to register as the users of the Securities Services ePortal no later than 12:30 p.m. on Monday, 3 January 2022.

5. If you have submitted your proxy form and subsequently decide to appoint another person or wish to participate personally in the AGM, please write in to [email protected] no later than 10:30 a.m. on Tuesday, 4 January 2022 to revoke the earlier appointed proxy.

Submission of Questions1. Shareholders that wish to post questions to the

Chairman/Board/Management can email their questions to [email protected] no later than 10:30 a.m. on Wednesday, 5 January 2022.

2. Shareholders may also submit their questions to the Chairman/Board/Management via the real time submission of typed texts through a text box within Securities Services ePortal’s platform before the start or during the live streaming of the AGM.

3. The Chairman/Board/Management will endeavour to respond to relevant questions during the AGM or by email after the AGM.

Poll Voting1. The voting at the AGM will be conducted by poll in

accordance with Paragraph 8.29A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The poll will be conducted by way of electronic voting. Poll Administrators and Independent Scrutineers will be appointed to conduct the polling process and verify the results of the poll, respectively.

2. Access to eVoting will be opened from the commencement of the AGM until the end of the voting session which will be announced by the Chairman of the AGM. Please refer to the Securities Services ePortal User Guide in Appendix I.

Door Gift 1. Shareholders/proxies who had (i) logged in to Securities

Services ePortal on 6 January 2022 AND (ii) casted their vote during the AGM are entitled for a TGeBuy AGM eVoucher (“AGM eVoucher”) worth RM80 when purchasing Top Glove products via its online platform at https://tgebuy.com/.

2. An individual who is a shareholder or a proxy or a corporate representative is only entitled to ONE AGM eVoucher worth RM80. No additional AGM eVoucher will be given in the event that a shareholder is also an appointed proxy(ies)/corporate representative(s).

3. Shipping fees will be waived if the purchase value is above RM120 (only applicable to addresses in Malaysia). No self-collection of purchase is allowed.

4. The AGM eVoucher code will be emailed to eligible shareholders/proxies/corporate representatives on 9 January 2022 and the AGM eVoucher will remain valid until 9 March 2022. The said eVoucher can only be redeemed once.

Enquiries for AGM

1. If you have any enquiry relating to the Securities Services ePortal or proxy appointment prior to the AGM, please contact our Poll Administrator during office hours (Monday to Friday from 8:30 a.m. to 12:15 p.m. and 1:15 p.m. to 5:30 p.m., excluding public holidays):

Poll Administrator: SS E Solutions Sdn. Bhd. Contact Person: 1. Mr. Wong Piang Yoong : +603 2084 9168 2. Mr. Jerry Tan Hor Seng : +603 2084 9165 3. Puan Nurhayati Ang : +603 2084 9162 4. Ms. Lee Pei Yeng : +603 2084 9169 5. Ms. Rachel Ou : +603 2084 9161 6. Ms. Evangeline Yeoh : +603 2084 9007 Email: [email protected]

2. If you have any enquiry relating to the AGM Administrative Details prior to the AGM, please contact Top Glove Corporate Services Department during office hours (Monday to Friday from 8:30 a.m. to 6:00 p.m., excluding public holidays):

Company : Top Glove Corporation Bhd Contact Person : 1. Kassy Lim Keat See 2. Sarah Heng Kawai Contact No. : +6016 737 7113 Email : [email protected]

ADMINISTRATIVE DETAILS FOR 23RD ANNUAL GENERAL MEETING

For shareholders whose shares are traded on Singapore Exchange Securities Trading Limited, please refer to the instruction on the Voting Instruction Form A and Form B.

Securities Services ePortal User Guide

Before the AGM

A) Sign up for a user at Securities Services ePortal

Step 1: Visit https://sshsb.net.my/ to sign up a user account (registration is free). Please click on ‘SIGN UP’ to begin. You will be prompted to fill in your details and also to upload a copy of your MyKad (front and back separately) or passport.

Step 2: A notification email will be sent to you within one (1) working day. Please verify your user account within seven (7) days of the notification email (Note: Your registered email address is your User ID).

Notes: 1. This is a ONE-TIME Registration. If you already have a user

account of Securities Services ePortal, you need not register again.

2. To register for the meeting under (B) below, please sign up for a user account no later than 12.30 p.m. on Wednesday, 5 January 2022.

B) Registration for Remote Participation

Step 1: Log on to https://sshsb.net.my/ with your registered User ID (email address) and password.

Step 2:Look for “Top Glove Corporation Bhd” under Company Name and “23rd AGM on 6 January 2022 at 10:30 a.m.: Registration for Remote Participation” under the Corporate Exercise/ Event tab and Click “>”.

Step 3:Select whether you are participating as(1) Individual Shareholder; or(2) Corporate or Authorised Representative of a body

corporate1, and Click “Submit”.

Notes: 1. All shareholders must register for remote participation at the

meeting and are highly encouraged to register as early as possible and before the AGM date and time in order to ensure timely access to the meeting. Access shall be granted only to eligible shareholders in accordance with the General Meeting Record of Depositors as at 31 December 2021.

2. If you wish to participate remotely at the AGM, please register no later than the ‘Questions and Answer’ session or when the Chairman announces that the meeting registration is closed, whichever is the earlier.

3. A copy of your eRegistration for remote participation can be accessed via My Records.

4. Your registration will apply to all the CDS account(s) of each individual shareholder/body corporate shareholder that you represent. If you are both an individual shareholder and representative of body corporate(s), you need to register as an individual and also as a representative for each body corporate.

5. As the meeting will be conducted on a virtual basis and only the Chairman and other essential individuals will be present at the broadcast venue, we highly encourage all shareholders to remotely participate and vote at the meeting, failing which, you may appoint the Chairman of the meeting as proxy or your own proxy(ies) to represent you.

For shareholder whose shares are traded on Singapore Exchange Securities Trading Limited, please also refer to the instructions on the Voting Instruction Form (Form A or Form B). The remote access user ID and password will be emailed to you once your eRegistration for remote participation has been approved.

MUST DO THIS STEP FOR SHAREHOLDER WHO WISHES TO PARTICIPATE AND VOTE AT OUR AGM

Appendix I


320 321

OTHER INFORMATION



Appendix I

C) Submission of eProxy Form


Step 2:Look for “Top Glove Corporation Bhd” under Company Name and “23rd AGM on 6 January 2022 at 10:30 a.m.: Submission of Proxy Form” under Corporate Exercise/Event and Click “>”.

Step 3: Select whether you are submitting the proxy form as (1) Individual Shareholder; or (2) Corporate or Authorised Representative of a body corporate1

Step 4: Enter your CDS account number or the body corporate’s CDS account number.

Step 5: Enter the information of your proxy(ies) and the proportion of securities (in %) to be represented by your proxy(ies).

Step 6: Proceed to indicate how your votes are to be casted against each resolution.

Step 7:Review and confirm your proxy form details before submission.

Notes:1. Please submit your proxy form no later than 10:30 a.m. on

Tuesday, 4 January 2022 if you wish to appoint proxy(ies) to participate on behalf.

2. A copy of your submitted eProxy Form can be accessed via My Records.

3. You need to submit your eProxy Form for every CDS account(s) you have or represent.

4. Appointed proxies need not register for remote participation under (B) above but if they are not registered users of the ePortal, they will need to sign up a user account under (A) above no later than 12:30 p.m. on Monday, 3 January 2022.

5. Upon processing the proxy forms, remote participation access will be granted automatically to the proxy(ies) instead of the shareholder, provided the proxy(ies) must be a registered user of the ePortal, failing which, the proxy will not be able to participate at the AGM.

6. Upon verification by the Poll Administrator with the General Meeting Record of Depositors as at 31 December 2021, you will receive an email advising you if you or your proxy is eligible to participate at the AGM.

For shareholder whose shares are traded on Singapore Exchange Securities Trading Limited, please also refer to the instructions on the Voting Instruction Form (Form A or Form B).

On the AGM Day (Thursday, 6 January 2022 @ 10:30 a.m.)

A) Joining the Live Stream Meeting


Step 2: Look for “Top Glove Corporation Bhd” under Company Name and “23rd AGM on 6 January 2022 at 10:30 a.m.: Live Stream Meeting” under the Corporate Exercise/Event and click “>” to join the AGM.

Notes:1. You can start to log in 1 hour before the commencement of

the AGM.2. If you have any questions that you wish to raise, please use

the text box to submit your question. The Chairman/Board will endeavour to respond to your question during the AGM.

3. Quality of the live streaming is dependent on the stability of the internet connection at the location of the user.

PLEASE DO NOT SUBMIT PROXY FORM IF YOU ARE REGISTERING TO PARTICIPATE IN THE MEETING

B) Remote Online Voting during the AGM

Step 1: If you are logged on to the ePortal and already accessing the Live Stream Meeting, click on “Proceed to Vote” displayed below the Live Stream player to begin voting on the resolutions.

OR

If you are not logged on yet, log on to https://sshsb.net.my/ with your registered User ID (email address) and password.

Look for “Top Glove Corporation Bhd” under Company Name and “23rd AGM on 6 January 2022 at 10:30 a.m.: Remote Voting” under the Corporate Exercise/Event and click “>” to remotely cast and submit your votes online for the resolutions tabled at the AGM.

Step 2: Cast your votes by clicking on the radio buttons against each resolution, acknowledge the Terms and Conditions of use and Privacy Policy, review your casted votes and submit the votes.

Step 3:Upon casting your votes, you will be redirected back to the Live Stream. The message “Voted” will be displayed below the Live Stream.

Notes:1. Access to eVoting will be opened on the aforementioned date

and time.2. Your votes casted will apply throughout ALL the CDS

accounts you represent as an individual shareholder, corporate/ authorised representative and proxy.

3. Where you are attending as a proxy, and the shareholder who appointed you has indicated how the votes are to be casted, we will take the shareholder’s indicated votes in the proxy form.

4. Access to eVoting will be closed as directed by the Chairman. A copy of your submitted eVoting can be accessed via My Records.

C) End of Remote Participation

The live streaming will end upon the announcement by the Chairman on the closure of the AGM.

1 For body corporates, the appointed Corporate/Authorised Representative must upload the evidence of authority (e.g. Certificate of Appointment of Corporate Representative, Power of Attorney, letter of authority or other documents proving authority). Any document that are not in English or Bahasa Malaysia must be accompanied by a certified translation in English in one (1) file. The original evidence of authority and translation thereof, if required, have to be submitted to the Share Registrar’s office, Securities Services (Holdings) Sdn. Bhd. at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Malaysia for verification before the registration closing date and time.


Appendix I

* I/We, Email:

NRIC/Passport/Registration No.: Tel:

CDS Account No.: Number of Shares Held:

Address:

being a member of TOP GLOVE CORPORATION BHD [Registration No.: 199801018294 (474423-X)] hereby appoint:

1) Name of Proxy: NRIC/Passport No.:

Address:

Email: Tel: Percentage of Shares Represented: %

2) Name of Proxy: NRIC/Passport No.:

Address:

Email: Tel: Percentage of Shares Represented: %

or failing him/her, the CHAIRMAN OF THE MEETING as my/our proxy to vote for me/us, and on my/our behalf at the Twenty Third Annual General Meeting (“AGM”) of the Company to be held virtually at the Broadcast Venue at TG Grand Ballroom, Level 9, Top Glove Tower, 16, Persiaran Setia Dagang, Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor Darul Ehsan, Malaysia on Thursday, 6 January 2022 at 10:30 a.m.

Please indicate with “X” how you wish your vote to be casted. In the absence of specific instruction, your proxy will vote or abstain from voting at his/her discretion.

NO. RESOLUTIONS FOR AGAINST

ORDINARY BUSINESS

1. To re-elect the Director, Lim Hooi Sin.

2. To re-elect the Director, Dato’ Lee Kim Meow.

3. To re-elect the Director, Azrina Arshad.

4. To approve the payment of Directors’ fees.

5. To approve the payment of Directors’ benefits (excluding Directors’ fees).

6. To re-appoint Messrs. Ernst & Young PLT as Auditors of the Company.

SPECIAL BUSINESS

7. Authority to issue shares pursuant to the Companies Act 2016.

8. Proposed Renewal of Share Buy-Back Authority.

Signed on this day of 2021/2022

Signature of Member / Common Seal

Notes:1. The AGM will be conducted virtually through live streaming and online remote

voting via the Remote Participation and Voting (“RPV”) facilities to be provided by SS E Solutions Sdn. Bhd. via Securities Services ePortal’s platform at https://sshsb.net.my/. Please follow the procedures provided in the Administrative Details for the AGM in order to register, participate and vote remotely via the RPV facilities.

2. The Broadcast Venue is strictly for the purpose of complying with Section 327(2) of the Companies Act 2016 and Article 64A of the Company’s Constitution which require the Chairman of the Meeting to be present at the main venue of the Meeting. Members/proxies/corporate representatives will not be allowed to be physically present at the Broadcast Venue.

3. In respect of deposited securities, only members whose names appear in the Record of Depositors on 31 December 2021 (General Meeting Record of Depositors) shall be eligible to participate in the AGM.

4. A member of the Company entitled to participate and vote at the AGM is entitled to appoint not more than two (2) proxies to participate, speak and vote in his/her stead. A proxy may but need not be a member of the Company and a member may appoint any person to be his/her proxy. There shall be no restriction as to the qualification of the proxy. A proxy appointed by the member shall have the same rights as the member to participate, speak and vote at the AGM. The members or their proxies or their corporate representatives may submit questions to the Company at [email protected] prior to the AGM or via real time submission of typed texts through a text box within Securities Services ePortal’s platform during live streaming of the AGM as the primary mode of communication. In the event of any technical glitch in the primary mode of communication, shareholders, proxies and corporate representatives may email their questions to [email protected] during the AGM.

5. Where a holder appoints more than one (1) proxy, the appointment shall be invalid unless he/she specifies the proportion of his/her shareholdings to be represented by each proxy.

6. The instrument appointing a proxy or representative and the duly registered power of attorney or other authority, if any, shall be in writing under the hand of the appointor or his/her attorney duly appointed under a Power of Attorney or, if such appointor is a corporation, either under its seal or under the hand of an officer or attorney duly appointed under a Power of Attorney.

7. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one (1) securities account (“Omnibus Account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each Omnibus Account it holds.

8. The instrument appointing a proxy may be made via hardcopy or by electronic means in the following manner and must be received by the Company not less than forty-eight (48) hours before the time appointed for holding the AGM or at any adjournment thereof:(i) In Hardcopy Form The proxy form shall be deposited at the Share Registrar’s office, Securities

Services (Holdings) Sdn. Bhd. at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia.

(ii) By Electronic Means The proxy form shall be electronically lodged via Securities Services ePortal’s

platform at https://sshsb.net.my/ or by fax to +603 2094 9940 or by email to [email protected].

PROXY FORM


2. Then, fold here

3. Fold this flap for sealing

1. Fold here

TOP GLOVE CORPORATION BHD[Registration No.: 199801018294 (474423-X)]c/o: Securities Services (Holdings) Sdn. Bhd.Level 7, Menara MileniumJalan Damanlela, Pusat Bandar DamansaraDamansara Heights50490 Kuala Lumpur,Wilayah Persekutuan,Malaysia

STAMP

GRI CONTENT INDEX

GRI Standards Disclosure Item Section of Disclosure Page

GRI 102: GENERAL DISCLOSURES

1. Organizational profile

102-1 Name of the organization Front Cover Front cover

102-2 Activities, brands, products, and services Letter to Stakeholders And Management Discussion & Analysis

48 to 57

102-3 Location of headquarters Our Corporate Directory 12

102-4 Location of operations Our Corporate Directory 12 to 13

102-5 Ownership and legal form Corporate Structure 8 to 9

102-6 Markets served Our Export Markets 5

102-7 Scale of the organization Back Cover Back cover

102-8 Information on employees and other workers Diversity & Inclusion 123

102-9 Supply chain Supply Chain Management 129 to 130

102-10 Significant changes to the organization and its supply chain

Scope and Boundary Of Reporting 2

102-11 Precautionary Principle or approach Managing Our Risks And Opportunities 82 to 85

102-12 External initiatives The Legislation And Frameworks That Inform Our Reporting

2

102-13 Membership of associations Environmental Compliance 96

2. Strategy

102-14 Statement from senior decision-maker In Conversation With The Executive Chairman, Tan Sri Dr Lim Wee Chai

32 to 37

102-15 Key impacts, risks and opportunities Managing Our Risks And Opportunities 82 to 85

3. Ethics and integrity

102-16 Values, principles, standards, and norms of behaviour

Our Guiding Principles 6

102-17 Mechanisms for advice and concerns about ethics

Whistleblowing Channels, Grievance Mechanism

112 to 113

Whistleblowing 139

4. Governance

102-18 Governance structure Corporate Governance Framework 143

102-19 Delegating authority Board Sustainability Committee Report 154 to 155

102-20 Executive-level responsibility for economic, environmental, and social topics

Board Sustainability Committee Report 154 to 155

102-21 Consulting stakeholders on economic, environmental, and social topics

Stakeholder Engagement, Materiality Assessment: A Sharper Focus on ESG

92 to 94

102-22 Composition of the highest governance body and its committees

Board of Directors 15 to 28

102-23 Chair of the highest governance body Board of Directors 16

102-24 Nominating and selecting the highest governance body

Board Appointment and Succession Planning

147 to 148

102-25 Conflicts of interest Board of Directors’ Note 27

Executive Committee’s Note 29

102-26 Role of highest governance body in setting purpose, values, and strategy


OTHER INFORMATION

326 327

OTHER INFORMATION


GRI CONTENT INDEX


102-27 Collective knowledge of highest governance body

An Empowered Board 28

102-28 Evaluating the highest governance body’s performance

Board Effectiveness Evaluation 149 to 151

102-29 Identifying and managing economic, environmental, and social impacts


Stakeholder Engagement, Materiality Assessment: A Sharper Focus on ESG

92 to 94

102-30 Effectiveness of risk management processes Statement On Risk Management And Internal Control

172 to 175

102-31 Review of economic, environmental, and social topics


102-32 Highest governance body’s role in sustainability reporting


102-33 Communicating critical concerns Board Sustainability Committee Report 154 to 155

102-34 Nature and total number of critical concerns Human Rights & Labour Management Relations

109 to 116

102-35 Remuneration policies Board And Senior Management Remuneration

149

102-36 Process for determining remuneration Board And Senior Management Remuneration

149

102-37 Stakeholders’ involvement in remuneration Notice Of The Twenty Third AGM 311

5. Stakeholder engagement

102-40 List of stakeholder groups Stakeholder Engagement 92

102-41 Collective bargaining agreements Engagement With Workers 116

102-42 Identifying and selecting stakeholders Stakeholder Engagement 92

102-43 Approach to stakeholder engagement How Our Stakeholders Are Connected 166 to 169

102-44 Key topics and concerns raised How Our Stakeholders Are Connected 166 to 169

6. Reporting practice

102-45 Entities included in the consolidated financial statements

Investment In Subsidiaries 240

102-46 Defining report content and topic Boundaries Scope and Boundary Of Reporting 2

102-47 List of material topics Materiality Assessment: A Sharper Focus on ESG

92 to 94

102-49 Changes in reporting Scope and Boundary Of Reporting 2

102-50 Reporting period Front Cover Front cover

102-51 Date of most recent report Front Cover Front cover

102-52 Reporting cycle Front Cover Front cover

102-53 Contact point for questions regarding the report

Corporate Governance Overview Statement 165

102-54 Claims of reporting in accordance with the GRI Standards

The Legislation And Frameworks That Inform Our Reporting

2

102-55 GRI content index GRI Content Index 325 to 330

102-56 External assurance Independent External Assurance Statement

331 to 334

GRI CONTENT INDEX


103 Management Approach

103-1 Explanation of the material topic and its Boundary

Explanation, management approach and progress of each material issue under Environmental, Social & Governance pillars are articulated throughout the “Creating Sustainable Value” section

93 to 139

103-2 The management approach and its components

Explanation, management approach and progress of each material issue under Environmental, Social & Governance pillars are articulated throughout the “Creating Sustainable Value” section

93 to 139

103-3 Evaluation of the management approach Explanation, management approach and progress of each material issue under Environmental, Social & Governance pillars are articulated throughout the “Creating Sustainable Value” section

93 to 139

201 Economic performance

201-1 Direct economic value generated and distributed

2021 Key Highlights Inner Front Cover & 1

201-2 Financial implications and other risks and opportunities due to climate change

Physical Impacts On Climate Change 104

202 Market presence

2. Topic-specific disclosures:

202-1 Ratios of standard entry level wage by gender compared to local minimum wage

Diversity & Inclusion 123 to 124

201-2 Proportion of senior management hired from the local community

Diversity & Inclusion 123 to 124

203 Indirect economic impacts

203-1 Infrastructure investments and services supported

Promoting Wellness 119

Managing Flood Risk 104

203-2 Significant indirect economic impacts Promoting Wellness 119

Managing Flood Risk 104

204 Procurement practices

204-1 Proportion of spending on local suppliers Supply Chain Management 129

205 Anti-corruption

205-1 Operations assessed for risks related to corruption

Corporate Integrity 137

205-2 Communication and training about anti-corruption policies and procedures


205-3 Confirmed incidents of corruption and actions taken


206 Anti-competitive behaviour

206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices

Customer Experience 130

328 329

OTHER INFORMATION


GRI CONTENT INDEX


301 Materials

301-1 Materials used by weight or volume Raw Material Consumption 105

301-2 Recycled input materials used Reusing, Recycling And Upcycling Waste 106

301-3 Reclaimed products and their packaging materials

Reusing, Recycling And Upcycling Waste 106

302 Energy

302-1 Energy consumption within the organization Energy Consumption 102 to 103

302-3 Energy intensity Energy Consumption 102 to 103

302-4 Reduction of energy consumption Natural Gas 103

302-5 Reductions in energy requirements of products and services

Natural Gas 103

303 Water

303-1 Water withdrawal by source Water Management 100 to 101

303-3 Water recycled and reused Water Management 100 to 101

305 Emissions

305-1 Direct (Scope 1) GHG emissions Physical Impacts On Climate Change 104

305-2 Energy indirect (Scope 2) GHG emissions Physical Impacts On Climate Change 104

305-3 Other indirect (Scope 3) GHG emissions Physical Impacts On Climate Change 104

305-4 GHG emissions intensity Physical Impacts On Climate Change 104

305-5 Reduction of GHG emissions Physical Impacts On Climate Change 104

306 Waste

306-1 Waste generation and significant waste-related impacts

Waste & Effluent 98 to 99

306-2 Management of significant waste-related impacts

Waste & Effluent 98 to 99

306-3 Waste generated Waste & Effluent 98 to 99

306-4 Waste diverted from disposal Waste & Effluent 98 to 99

306-5 Waste directed to disposal Waste & Effluent 98 to 99

307 Environmental compliance

307-1 Non-compliance with environmental laws and regulations

Environmental Compliance 97

308 Supplier environmental assessment

308-1 New suppliers that were screened using environmental criteria

Supply Chain Management 97

308-2 Negative environmental impacts in the supply chain and actions taken

Supply Chain Management 97

401 Employment

401-1 New employee hires and employee turnover Diversity & Inclusion 125 to 126

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Promoting Wellness (Family Friendly Policies)

121

401-3 Parental leave Parental Leave 121

402 Labor/ management relations

402-1 Minimum notice period regarding operational changes

Engagement With Workers 116

GRI CONTENT INDEX


403 Occupational health and safety

403-1 Occupational health and safety management system

Occupational Health & Safety 117 to 121

403-2 Hazard identification, risk assessment, and incident investigation


403-3 Occupational health services Occupational Health & Safety 117 to 121

403-4 Worker participation, consultation, and communication on occupational health and safety


403-5 Worker training on occupational health and safety


403-6 Promotion of worker health Occupational Health & Safety 117 to 121

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships


403-8 Workers covered by an occupational health and safety management system


403-9 Work-related injuries Occupational Health & Safety 117 to 121

404 Training and education

404-1 Average hours of training per year per employee

Talent Development 126 to 127

404-2 Programs for upgrading employee skills and transition assistance programs


404-3 Percentage of employees receiving regular performance and career development reviews


405 Diversity and equal opportunity

405-1 Diversity of governance bodies and employees

Gender Diversity 124

405-2 Ratio of basic salary and remuneration of women to men

Gender Diversity 124

406 Non-discrimination

406-1 Incidents of discrimination and corrective actions taken

Prevention of Harassment & Bullying 125

407 Freedom of association and collective bargaining

407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Engagement With Workers 116

408 Child labor

408-1 Operations and supplier at significant risk for incidents of child labor

Our Policy On Human Rights Practices 111

409 Forced or compulsory labor

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

Human Rights & Labour Management Relations

109 to 116


OTHER INFORMATION

GRI CONTENT INDEX


410 Security practices

410-1 Security personnel trained in human rights policies or procedures

Security Management 131

412 Human rights assessment

412-1 Operations that have been subject to human rights reviews or impact assessments

Human Rights Risk Assessment/ Due Diligence & Audits

112

412-2 Employee training on human rights policies or procedures

Enhanced Human Rights Training And Awareness

116

412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Enhancement Of Policies & Procedures 112

413 Local communities

413-1 Operations with local community engagement, impact assessments, and development programs

Local Community 131 to 133

413-2 Operations with significant actual and potential negative impacts on local communities

Local Community 131 to 133

414 Supplier social assessment

414-1 New suppliers that were screened using social criteria

Supplier Assessment 130

414-2 Negative social impacts in the supply chain and actions taken

Communicate With Supply Chain Via Town Hall Sessions

116

415 Public policy

415-1 Political contributions Anti-corruption And Anti-bribery Data 138

416 Customer health and safety

416-2 Incidents of non-compliance concerning the health and safety impacts of products and services

Product Quality & Safety 128

417 Marketing and labeling

417-1 Requirements for product and service information and labeling


417-2 Incidents of non-compliance concerning product and service information and labeling


417-3 Incidents of non-compliance concerning marketing communications


418 Customer privacy

418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

Cyber Security & Data Privacy 136


CORPORATE SONG

All over the world, We are known,

For our superior quality gloves,

Through the years we have grown,

We have shown,

Our gloves stand out superior in the world,

Top Glove is the best, Better than the rest,

Quality, Reliability and Consistency,

Remain our policy,

At Top Glove’s Group of Companies.

ENGLISH

MANDARIN

Dari mulanya, hingga terkini,

Nama Top Glove diberi,

Pengeluar sarung tangan yang berkualiti,

Yakinlah hasil pengeluaran kami,

Yang bermutu dan berkualiti tinggi,

Sentiasa menuju kejayaan,

Untuk mencapai keunggulan.

BAHASA MALAYSIA

THAI

www.topglove.com

FINANCIAL YEAR ENDED

31 AUGUST 2021

TOP GLOVE CORPORATION BHD Registration No.: 199801018294 (474423-X)

Level 21, Top Glove Tower, 16, Persiaran Setia Dagang, Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor Darul Ehsan, Malaysia.

Tel : +603 3362 3098 Fax : +603 3362 3860 Mobile : +6012 2896 270

Email : [email protected] / [email protected] / [email protected]

INTEGRATEDANNUAL REPORT2021

SCAN FOR TGWEBSITE

MALAYSIAAFRICA

LATIN AMERICA

ASIA

EUROPE

OCEANIA

NORTH AMERICA

Exports to

195 Countries Worldwide

50FACTORIES

810PRODUCTION LINES

22,000EMPLOYEES

100 BillionGLOVES PER ANNUM

CONTRIBUTING TO A MORE WORLD - Top Glove

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