Taliworks Corporation Berhad

Taliworks Corporation Berhad (“Taliworks” or the “Company”) was incorporated in Malaysia on 6 August 1965 as a private limited company under the name of The Carpet Manufacturing Company (Malaysia) Limited. On 12 November 1968, its name was changed to F&T Carpets (Malaysia) Sdn Bhd. On 26 February 1974, it was renamed Carpets International Malaysia Sdn Bhd and on 23 December 1982, it was converted into a public company and assumed the name of Carpets International Malaysia Berhad (“Carpets”).

It was subsequently listed on the then Second Board of the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Securities Berhad (“Bursa Securities”)) on 27 July 1992. The principal activities of Carpets were the design, manufacture, distribution and laying of carpets and rugs. These operations ceased in 2002.

On 31 July 2000, Carpets completed the acquisition of the entire equity interest in Sungai Harmoni Sdn Bhd and Taliworks (Langkawi) Sdn Bhd. These companies are involved in the management, operations and maintenance of water treatment, supply and distribution facilities. On 27 October 2000, the Company was transferred to the Main Board of Bursa Securities (which has since been merged with the Second Board into a single board known as Main Market) and subsequently on 24 November 2000, Carpets was renamed Taliworks Corporation Berhad.

Taliworks together with its group of companies employs about 450 staff and contract workers in Malaysia and the People’s Republic of China. The Company is currently listed on the Main Market of Bursa Securities under Trading / Services Sector (Name & Code: TALIWRK & 8524) with a market capitalisation of approximately RM625 million as at 31 December 2009.

In 2005, Taliworks issued 70,440,000 warrants 2005/2010 pursuant to a renounceable rights issue which entitles the holders to subscribe for new shares in Taliworks. The warrants are listed on Bursa Securities (Name & Code: TALIWRK-WA & 8524WA). Warrants not exercised will lapse and cease to be valid on 21 September 2010.

In 2007, the Company issued RM225,000,000 nominal amount of 2.25% unsecured convertible bonds 2007/2012 for business expansion, repayment of borrowings and general working capital purposes. The bonds, rated AA3 by RAM Rating Services Berhad, are not listed on any stock exchange.

Today, Taliworks, an established company involved in water and waste-related businesses, has expanded its core expertise to include highway management, construction and engineering, and wastewater research and technology.

Taliworks started out in the water management sector in 1987 as a pioneer in the privatisation of the water supply in Malaysia and today, the water business still leads as the main core business activity of the Group. Since 2004, the Group has diversified its business interests to include the waste management segment in China and toll operations and highway management in Malaysia through a few strategic acquisitions.

Taliworks’ core water business is in the privatised water supply sector which includes an operation and maintenance contract (expiring in 2030) for the Sungai Selangor Water Treatment Works Phase 1 (“SSP1”) that supplies to large parts of Selangor and Kuala Lumpur and a concession (expiring in 2020) for the water supply and distribution system in Langkawi, Kedah. The Group currently manages a total of 6 water treatment plants with a
combined capacity of 1,039.5 million litres per day.

In the waste management business sector, the Group holds a 21-year concession rights for the operation and management of the Tianjin Panlou Life Waste Transfer Station and its related assets in the city of Tianjin, China. The concession, held through a 90% owned subsidiary, Tianjin- SWM (M) Environment Ltd, Co and expiring in 2025, grants rights to this company to transport household waste deposited at the transfer station to the municipal landfills and in return collect tipping fees from the local city council for services provided.

Other than being involved in solid waste management, the Group is also engaged in the wastewater sector through its indirect holding of a 56% stake in Puresino (Guanghan) Water Co. Ltd which manages and operates the 50 million litres per day Guanghan San Xin Dui wastewater treatment plant in Sichuan, China for a 30-year concession expiring in 2033 and a 70% stake in a build-operate-transfer project comprising a 50 million litres per
day recycled water treatment plant which is being constructed in Ningxia, China.

In 2007, Taliworks acquired a 55% stake in a jointly controlled entity, Cerah Sama Sdn Bhd (“Cerah Sama”). Cerah Sama is the holding company for Grand Saga Sdn Bhd that owns and operates the Cheras - Kajang Highway concession until 2027. The acquisition was made in collaboration with the South East Asian Strategic Assets Fund (“SEASAF”) where Cerah Sama is positioned to be the flagship vehicle through which both parties will engage in the business of developing and operating toll roads in Malaysia and the ASEAN region.

Other than the above-mentioned businesses, the Group is also undertaking the construction of the Padang Terap Water Supply Scheme in Kedah. It just completed the Klang Valley Flood Mitigation-Package Sungai Damansara project in Selangor.

Currently, the water business in Malaysia accounts for the bulk of revenue and profitability of the Group. Taliworks intends to increase its revenue contribution significantly from overseas ventures to diversify its earnings base and geographical risk. The Group remain focus on its core business activities whilst seeking to acquire further strategic investments both domestically and in the foreign markets so as to re-position itself as a formidable and respected service provider for water, waste management and infrastructure businesses in the region.

Today, the Group has business presence in Selangor, Kedah, Tianjin, Sichuan, Ningxia and Shanghai.