“Assalamualaikum Warahmatullahi Wabarakatuh dan Salam Sejahtera.

Dear Esteemed Shareholders,

I am proud to declare FY2023 as a milestone year for GPB. The Group returned our best-ever performance since listing on what was then known as the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia) 30 years ago.

Our record-breaking year represents a new peak to our robust recovery since the onset of COVID-19. In just three years, we have rebounded emphatically from a loss-making FY2020 to post our highest-ever financial results in GPB’s history.

This outstanding achievement is a vindication of the meticulous business planning and judicious strategic decisions taken in the wake of the pandemic. From the outset, GPB focused on building resilience by unlocking the value of our assets while also strengthening our value chain across the board.

It is also a testament to the dedication and determination of our talents, all of whom harnessed innovation and tapped efficiency to resolve issues and remove obstacles to the implementation of the Group’s business strategies.

During the financial year in review, our human capital, from the Board to Management Team and all employees, consistently came together in finding viable solutions to such persistent issues as weather disruptions to our logging and sawmilling activities, which have knock-on effects on our midstream and downstream manufacturing operations.

I am pleased to announce that the Board has responded favourably to GPB’s exceptional financial returns in FY2023 by declaring and paying our highest-ever
dividend of 4.60 sen per share, representing a generous 80% increase over the dividend of 2.55 sen per share the year before.

Dividend payments, which amounted to RM6.88 million (FY2022: RM3.89 million) or 30% of the Group’s Profit After Tax (PAT) were duly paid out on 15 January and 9 February 2024. As always, we are not only committed to value creation, but also value distribution to shareholders and other stakeholders.

UNLOCKING SUSTAINABLE VALUE RESPONSIBLY

GPB’s landmark performance during the reporting period is not limited to financial results. It also reflects our transformation into a business entity that is committed to sustainable value creation beyond economic priorities to include responsible environmental, social and governance (ESG) considerations.

Managing Environmental Footprint

Our forestry operations continued adopting the Selective Management System (SMS) to manage timber concession areas in a sustainable manner in accordance with Sustainable Forest Management (SFM) standards. This approach ensures the long-term health and productivity of forests while preserving biodiversity and wildlife habitats while also respecting the rights of local communities and indigenous peoples. By adhering to these practices, we assure customers and stakeholders that our products are responsibly and sustainably sourced. This, in turn, grants us access to markets that prefer eco-friendly wood products.

In response to the urgent threat of climate change, we have intensified our efforts to reduce our carbon footprint. Two of our timber-based subsidiaries have already installed solar systems at their factory premises to reduce reliance on non-renewable energy sources. Another subsidiary is set to implement a solar power project in FY2024.

As of now, we have planted more than 300,000 trees, which consists of Batai and Eucalyptus species, in our forest plantation area.

Nurturing Lives and Livelihoods

The Group is committed to enhancing the lives and livelihoods of our workforce by focusing on continuous talent development to guarantee business continuity in the face of unforeseen circumstances, and at the same time, provide opportunities for employees to grow.

As we navigate a shifting talent landscape increasingly drawn to the gig economy, especially among millennials who prioritise flexibility and mobility, we understand that our succession planning must be comprehensive. Towards this end, we continue to procure training for our senior and middle management staff to equip them with the competence and leadership qualities needed to sustain GPB’s growth trajectory in the years ahead.

Nevertheless, the Group intends to bring in bright minds and fresh ideas to strengthen the leadership and innovative culture within the organisation. In FY2023, we increased our manpower strength to 448 and intend to follow this up with a potential intake of another 178 in FY2024.

Maintaining Good Governance

At GPB, our commitment to uphold stringent corporate governance standards remains unwavering as we strive to safeguard the Group’s interests and objectives, ultimately enhancing shareholder value and maintaining investor confidence.

During the year in review, we remained steadfast in our efforts to reinforce our governance practices. We ensured strict compliance with pertinent laws, regulations, and guidelines prescribed by regulatory bodies, including Bursa Malaysia Securities Berhad
(Bursa Malaysia).

Alongside our dedication to transparency and accountability, we continued to refine our governance framework, incorporating best practices and adopting
measures to mitigate risks effectively. By adhering rigorously to these standards, we aim to foster trust among stakeholders and reinforce our reputation as a
responsible corporate citizen in the marketplace.

APPRECIATION

I am honoured to be appointed as the new Non-Independent Non-Executive Chairman of GPB and in this capacity, I would like to take this opportunity to express the Board’s gratitude to my predecessor, YM Dato’ Haji Tengku Hassan bin Tengku Omar, for his wise counsel in guiding the Group to such great heights.

The Board’s appreciation is also extended to outgoing Board Member, Mohd Badaruddin bin Ismail, for his exemplary service during his time with us.

I would like to welcome Dr Mohd Zaki bin Hamzah to the Board as a Non-Independent Non-Executive Director following the end of his tenure as the Chief Executive Officer (CEO). Dr Zaki’s service as the head of Senior Management will be forever tied to GPB’s record-breaking performance. Let me take this opportunity to thank him for his dynamic leadership.

The Board welcomes our new acting CEO, Mohd Roslan bin Mamat, to the fold. With his management experience from Terengganu Incorporated Sdn Bhd
(Terengganu Inc), the parent company of GPB, the Board is confident that he will build on the Group’s growth momentum and ensure a sustainable future for the
business and its stakeholders.

I would like to commend the unwavering dedication of our senior management in resolving challenges and navigating obstacles to achieve stellar results for FY2023. Their steadfast support has been instrumental in ensuring our continued success and accomplishments throughout the year. I extend my gratitude to all employees whose exceptional teamwork and diligence have set a
commendable example.

I am deeply appreciative of the trust and confidence shown by our loyal shareholders, especially Terengganu Inc. I also wish to thank our other stakeholders including Federal and State authorities, bankers, vendors, the
media and the community for their invaluable support. Lastly, I acknowledge the invaluable guidance and leadership provided by my fellow Board members.
Together, let us leverage on the Group’s current growth
trajectory to achieve even greater milestones in the
future.

I am deeply appreciative of the trust and confidence shown by our loyal shareholders, especially Terengganu Inc. I also wish to thank our other stakeholders including Federal and State authorities, bankers, vendors, the media and the community for their invaluable support. Lastly, I acknowledge the invaluable guidance and leadership provided by my fellow Board members.
Together, let us leverage on the Group’s current growth trajectory to achieve even greater milestones in the future.

Thank you and wassalam.