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Year 2016 marks the passing of five years since I was entrusted with leading the board and management team, however I remain just as committed as when I began, to enhancing and improving Perangsang Selangor towards creating value for our shareholders. It is a responsibility that none of us has taken lightly, and I can attest that every member of the team has been diligently contributing efforts to achieve this goal over the past year.
We have now successfully completed the Four Year Corporate Turnaround Plan that we began implementing in 2011. We have not only been able to maintain our net asset value at approximately RM1.2 billion, but also have grown our Retained Earnings from 2011-2015 by more than RM200 million. Most significantly, the company's borrowings have been reduced from RM1.2 billion to just slightly over RM 30 million at the end of 2015.
The past year has seen a significant improvement in the financial prospects of the Company, a highlight of which was our divestment of the investment in Konsortium ABASS Sdn Bhd ("ABASS"). Consequently, Perangsang Selangor has reduced its borrowings from RM1.04 billion to RM30.13 million resulting in a gearing ratio of only 0.02 times.
Concurrently we have performed a capital recycling of a number of our subsidiaries and investments including our stake in Kumpulan Hartanah Selangor, further strengthening the financial position of the Company. Whilst the issues surrounding the divestment of SPLASH and the tolled SPRINT highway are ongoing, we are optimistic of a swift resolution but are unable to share further details on this due to regulatory guidelines by the authorities. Financially, Perangsang Selangor has continued to show sustained positive performance over the past year.
Perangsang Selangor is now about to embark on what we believe will be a new phase of profitability, driven by a dual focused approach of yield optimisation combined with targeted investment stages, focused on mature, revenue generating assets. This will further allow for greater implementation of our ‘bolt-on' strategy of consolidating similar businesses in a sector to increase profitability as a whole. In line with this we have increased our investment in Aqua-Flo which supplies chemicals to the water treatment industry, which over the last year has shown significant revenue growth, and just recently was awarded three contracts with a total estimated value of RM98 million over a period of two years.
We will also be identifying businesses beyond Selangor unlike in the past, allowing for a wider selection of potential prospects. Ultimately any value derived from these businesses will still flow back to the state and consequently present new business opportunities within Selangor in the future. In essence, Perangsang Selangor will acquire matured assets which are immediately income generating. We will then appoint experienced professionals from the specific industry of the asset to represent our interests as well as provide strategic guidance if required.
An example of this is Perangsang Selangor's venture into the franchise licensing industry, which provides lucrative revenue generating capabilities, offset with relatively low risk, as the manufacturing distribution or delivery risks associated with the products or services provided are taken on by the franchisees themselves, insulating the parent licensor. This has driven the acquisition of a majority interest in King Koil. We have great expectations for the potential of this investment as King Koil is an established brand, ranked 7th in the international mattress market and has over 40 licensees worldwide across 80 countries with 42 manufacturing facilities who have generated over USD 1 billion in global retail sales.
It is important to note that while we may not be directly involved in the management of any of our businesses, by holding a majority stake, Perangsang Selangor will be in a position to bring in expertise from within the industry to enhance the business as needed that this investment will soon become a stable income generating channel and become a springboard which will allow the Company to achieve greater profits. This acquisition also highlights a key criterion we look for in selecting a potential asset in that it should be a market leader or have the potential to become the market leader and thus provide capital gain potential.
The management team has also successfully completed the acquisition of a 51% stake in Smartpipe Technology Sdn Bhd which has the exclusive rights to a water pipe rehabilitation solution that can be implemented nationwide. According to the latest estimate by Kementerian Tenaga, Teknologi Hijau dan Air ("KeTTHA"), over 4,460 km of pipe across Malaysia needs to be replaced so the potential income from the adoption of the Smartpipe solution is extremely lucrative. It has already been implemented in Hong Kong to great success, so we are optimistic of the high growth potential of this business.
Looking to the road ahead, we have a number of new investments and projects in the works which we believe will continue to sustain our current trend of profitability. These include the on-going redevelopment of Plaza Perangsang and the re-development of Perangsang Templer Golf Club ("PTGC") into an environmentally friendly, eco-themed residential township which is expected to contribute positively to the Group's performance upon its launch in 2016.
In summation, driven by these new strategies as well as the internal streamlining we have pursued over the last couple of years, the company's prospects moving forward are extremely positive. We are extremely grateful for the trust and confidence of our shareholders have had in us over the years. With the continued support, I believe that InsyaAllah we will be able to reach even greater heights of profitability. All of us at the company are excited to embark on this new journey, as we seek to meet and surpass shareholders expectations.
RAJA DATO' IDRIS RAJA KAMARUDIN