Dear Mr Lee, 

 

We thank you for your interest in HRC. The competitive nature of our business and compliance to Bursa requirements inhibits detailed disclosure of internal practices. On that note, to ensure that we continue to comply with the regulations of a public listed company, we have consulted this matter with our Legal and Company Secretary for advice. It was recommended to us that we publish the shareholder’s query at our upcoming AGM in 2023. This is to ensure HRC’s compliance with Paragraph 9.21(2)(b) of the Main Market Listing Requirements (“MMLR”) as well as the Guidance Note and FAQs on the Conduct of General Meetings for Listed Issuers, which requires questions posed by shareholders to be made visible to all meeting participants during the meeting itself and should be responded to.

 

Best Regards,

Haniza A Hamid

 

My respond:

Dear Haniza Abdul Hamid and Board Whistleblowing Committee

IR Contact: HRCPD-Corporate-Affairs@hrc.com.my and Whistleblower@hrc.com.my

 

Please convey my thanks to HRC Legal and Company Secretary for the assurance that my query/questions will be published and responded to at HRC upcoming AGM in 2023

 

Please allow me to draw your attention to below article:

https://www.koreaherald.com/view.php?ud=20230102000599

By Byun Hye-jin: Published: Jan 2, 2023 - 15:33       Updated: Jan 3, 2023 - 18:06

Hyundai Oilbank, one of South Korea’s leading refiners, said Monday that it handed out 1,000 percent of base salaries as bonuses to its staffers.

The company declined to disclose the specific amount of the salaries given. In 2021, its employees an average of 121 million won ($94,800) per person including bonuses at a 600 percent rate.

The refiner’s lump-sum bonuses came in line with the refining industry’ stellar performance last year. In the third quarter alone, Hyundai Oilbank’s operating profit skyrocketed by 226 percent on-year to 2.8 trillion won. Adding the fourth quarter results, last year’s cumulative profit will increase even more, sources said.

 

Other major refining companies – SK Energy, S-Oil and GS Caltex – will soon decide the bonus rates as well.

“We haven’t decided on the bonus yet, but it is expected to be more or less similar to Hyundai OilBank’s,” said a company official from a major oil refiner who requested anonymity.

Last year, SK Energy and GS Caltex provided 1,000 percent of base salaries as extra payment to employees, while S-Oil gave bonuses at a 1,400 percent rate

 

I just wonder why all the South Korean Refineries were able to achieve record breaking stellar performance (In the third quarter alone, Hyundai Oilbank’s operating profit skyrocketed by 226 percent on-year to 2.8 trillion won) but HRC Malaysia suffered Q3 PBT loss of RM 894,141,000?

 

If only someone did not overpaid high crude premium that resulted in average USD 136.45 per barrel in Q3 (HRC is welcome to correct my calculation) when average Dated Brent dropped to USD 101 per barrel in Q3 then I will not had to cut loss on my HRC holding and HRC employees will rightly enjoy a good year-end bonus.

 

I refer to HRC WHISTLEBLOWING POLICY

The Policy is designed to enable employees of HRC, employees of HRC’s contractors, vendors and customers and members of the public to raise genuine concerns at a high level which the individual believes shows malpractice or impropriety.

Such Improper Conduct includes the following: -
(i) Financial malpractice or impropriety or fraud;
(ii) Serious non-professional or non-ethical behavior;
(iii) Breach of Confidentiality;
(iv) Misuse of HRC funds or assets;
(v) Criminal activity;
(vi) Attempts to conceal any of these above; and
(vii) Any other conduct which may cause loss to HRC, or otherwise be detrimental to the
interests of its shareholders and the public.
The above list is not exhaustive and includes any act or omissions, which if proven, will
constitute an act of misconduct under HRCs’ Code of Conduct, General Business Principles

 

Something is definitely not right at the very top level of decision making that caused HRC to incur Q3 PBT loss of RM 894,141,000. So please convey my message to all the employees of HRC, if you come across or have information of malpractice, impropriety, misconduct or omission at the very top level that cause loss to HRC, you are duty bound by HRC whistleblower policy to report such malpractice, impropriety, misconduct or omission to in-house Board Whistleblowing Committee Whistleblower@hrc.com.my or Malaysia Authorities SC/Bursa/MACC for further investigation and action.

 

Thank you

Have a good day

 

Best Regards

Lee Soon Sheng