Dear Shareholders,

On behalf of the Board of Directors, I am pleased to present the Annual Report for the financial year ended 31 January 2009.

OVERVIEW

The Goldis Berhad (“Goldis”) Group of companies performed better in the financial year ended 31 January 2009 than the year before. Although Malaysia was relatively unscathed by the housing and financial meltdown in the first half of the year, the slowdown in consumer spending and private investments in the western economies finally reached our shores after the collapse of Lehman in October 2008. Just as Asia enjoyed the expansion and growth due to globalization and outsourcing of the manufacturing capacity in US and Europe, Asia has to suffer the consequences of the collapse of demand in the Organisation for Economic Cooperation and Development (“OECD”) countries. The collapse in the export sector since October 2008 has impacted the price of commodities and oil as well. The Year 2009 will see demand contraction in Malaysia and the Government sector stimulus will only be noticeable by the last quarter of the year.

During the financial year, RM88.6 million was added to the building of GTower, an A++ commercial development offering a “New Working Concept” to Malaysia. GTower, situated on 199 Jalan Tun Razak, was topped up in August 2008 and the tentative opening date is in the last quarter of this year. As 20% of the company was given to private equity investors through an issue of RM70 million Irredeemable Convertible Non-Cumulative Preference Shares (“ICPS”) with a par value of RM0.05 each at an issue price of RM1.00 each by GTower Sdn Bhd, the gearing has been kept below RM105 milllion for the year. The gearing of Goldis remains at 19% for financial year ended 31 January 2009.

Goldis sees great opportunity in these turbulent times and all our investee companies will continue to watch their cashflow while building up their talent and acquiring market share. The last two years of consolidation has enabled the Group to build stronger muscles to face the challenging times ahead.

FINANCIAL PERFORMANCE

For the financial year ended 31 January 2009, the Group’s revenue increased 22% to RM213 million from RM175 million the year before. The Group’s pre-tax profit also increased 44% to RM46 million from RM32 million the year before. The improved performance is as a result of better contributions by HOEPharma and IGB. Our paper plant in Tianjin saw higher revenue due to the operation of the new line. But since the start of the Beijing Olympics in August 2008 and the effect of the fall in demand for Chinese exports, the company has suffered a drop in both revenue and profits. This company will continue to perform poorly until export demand picks up in China.

PERFORMANCE REVIEW OF OUR INVESTMENTS

IGB CORPORATION BERHAD (“IGB”) (a listed real estate conglomerate)

For the financial year ended 31 December 2008, IGB performed better with the Group's revenue rising to RM688 million, from RM674 million the year before. Profit after tax also improved to RM173 million from RM148 million the year before. Due to fewer project launches, the contribution from the property development was less this year but the shortfall was more than made up from the property investment sector.

During the year, both Mid Valley City Gardens North and South office towers were completed. In recognition of the world class infrastructure put in by IGB, the Mid Valley City Gardens North and South office towers were awarded the Multimedia Super Corridor (“MSC”) Cyber Centre Status by the Prime Minister in September 2008.

The 5-star Gardens Hotel was opened in 2008 and by the end of 2009, the remaining components of The Gardens development, the service apartments and The Gardens rooftop dining will also be ready. For the coming year, IGB will be sourcing and building up its land bank for the next property cycle.

PRIVATE EQUITY INVESTMENTS IN MALAYSIA

The total investment in private companies in Malaysia as at 31 January 2009 was RM76.5 million compared to RM72.2 million last year.

A review of the performance of our main investee companies are as follows:

HOEPHARMA Holdings Sdn Bhd (“HOEPharma”) (a dermatological and healthcare company)

HOEPharma recorded revenue of RM66.4 million and a pre-tax profit of RM7.3 million for the financial year ended 31 January 2009. The increase in revenue from RM60.3 million and the increase in profit from RM1.8 million the year before, was as a result of the refocus of HOEPharma into higher margin products and appointment of new distributors.

Macro Kiosk Berhad (“Macrokiosk”) (a mobile data communications technology provider)

Macrokiosk Group’s revenue decreased marginally from RM36.1 million to RM34.9 million. The company made a loss of RM1.0 million compared to a pre-tax profit RM0.4 million the year before. The operating profit for the year was RM2.8 million. During the financial year an amount of RM0.8 million was written off due to the termination of various businesses, RM0.8 million was provided for amortisation of rights and RM0.4 million was provided for doubtful debts.

Macro Lynx Sdn Bhd (“Macrolynx”) (a broadband solutions and service provider)

Macrolynx Group’s revenue increased 37% from RM4.9 million to RM6.7 million. The company continues to register a small loss of RM986,000 for the year. However, we are confident that long term recurring revenue and new business divisions will contribute effectively to the Group despite the economic slowdown.

Protech Yu (Asia) Sdn Bhd (an aquaculture company)

During the year under review, our aquaculture farm in Kuala Kubu Baru was completed. The farm modules are now fully stocked with fingerlings. This venture continues to require funding and the company made a loss of RM3.2 million compared to a loss of RM2.6 million a year before. In 2008, the company secured contracts to build new farms for investors and also secured key sales accounts such as Carrefour and Jusco for the sale of its organically grown fish under the OM3 brand.

PRIVATE EQUITY INVESTMENTS IN CHINA

The total investment in China as at 31 January 2009 was RM72.9 million compared to RM61.8 million in the previous year. Much of the increase was due to foreign exchange gains as the Yuan has appreciated against the Ringgit.

Revenue for the GoldChina Group was higher at RM104.0 million compared to RM71.4 million the year before but there was a loss of RM2.5 million due to the fourth quarter downturn in demand for our paper products in Tianjin. Both our Build, Operate and Transfer (“BOT”) waste water plants in Shandong and Jiangsu are now in operation and have been contributing to cash flow but due to depreciation charges, the Crest Spring Group (the waste water companies) still made a loss of RM1.6 million for the year.

PROPERTY INVESTMENT

GTower Sdn Bhd (an A++ office building along Jalan Tun Razak)

During the year, GTower Sdn Bhd issued ICPS of RM70 million to private equity investors to fund the development of the building. The building was topped up in August 2008 and the expected occupation date of the building is targeted to be sometime in the fourth quarter of 2009. For the financial year ended 31 January 2009, RM88.6 million has been added to the value of the asset in the books.

GTower Sdn Bhd has been awarded the Green Mark Gold certification (provisional) from the Building and Construction Authority of Singapore, making it the first green building in Malaysia. The building has been built to MSC Cyber Centre compliant specifications and our application to the Multimedia Development Corporation Malaysia (“MDEC”) for MSC Cyber Centre Status has been submitted. This will be Malaysia’s first A++ commercial building that operates 24/7. The 24 hour operations will be supported by a boutique 180 all club rooms hotel called “The G City Club” hotel.

OUR PEOPLE

For the financial year under review, the number of employees for the Group has decreased to 744 from 957 last year.

PROSPECTS

Goldis is prepared for a challenging year ahead and will continue to look for opportunities to increase the market share of our investee companies. We will also take the opportunity to recruit good talent to build capacity in preparation for growth in the future.

DIVIDEND

The Board has decided not to declare a final dividend for the year but request shareholders to agree to a declaration of 1 for 2 bonus issue. We will be utilizing our share premium account for this purpose. The Net Asset per share currently stands at RM3.48 and will be RM2.31 after the bonus issue.

ACKNOWLEDGEMENTS AND APPRECIATION

I wish to take this opportunity to express my sincere gratitude to the members of the Board of Directors for their professionalism and dedicated contribution to steer the Group towards excellence. My special thanks also goes to the management team and staff members for their continued contributions and commitment towards the Group. Finally, I also wish to extend our thanks to our valuable shareholders, customers, business associates, investors as well as banking institutions and relevant authorities for their continued support, guidance and confidence in Goldis Group.

TAN LEI CHENG (MS)
Chairman & CEO