Samruk-Kazyna Construction JSC
2020 Annual Report.







  • – 100 % of the Company’s shares are owned by Sovereign Wealth Fund ‘Samruk-Kazyna’ JSC (Sole Shareholder). The number of authorized and allocated shares is 16,247,541, including:
  • – 15,000,000 shares at par value of 1,000 tenge per a share
  • – 15,000,000 shares at par value of 1,000 tenge per a share
  • – 1 share at the par value of 2,490 tenge per a share.
  • – All shares are ordinary.

The register of holders of the Company’s securities is maintained by Central Securities Depository JSC.




GROUP STRUCTURE (as of 31.12.2020)



The Company’s consolidated total incomes amounted to 23.1 billion tenge for the reporting period, which is 15 % lower than the figure in 2019. The main factors of change are:

proceeds from sales in the reporting period are lower than in 2019 by 2.5 billion tenge due to the sale of the land plot in 2019 and construction unfinished by Berkut Development LLP;

other non-operating incomes in the reporting period are lower by 2.7 billion tenge since in 2019 incomes have been accrued in the form of penalties and fines imposed on developers for the commercial housing for breach of contractual obligations, including penalty imposed on Baur Development LLP in connection with the termination of the contract, and incomes from reimbursement of expenses on bonds in connection with a longer term of bonds floatation.

At the same time, the finance incomes in the reporting period are higher by 0.7 billion tenge than in 2019 due to changes in the amount of cash placed on deposits, as well as placement of funds at the rates higher than those during the same period in 2019.

The Company’s consolidated total expenses for the reporting period amounted to 14.2 billion tenge, which is 26 % lower than expenses in the same period in 2019. The change in total expenses is due to the fact that:

the cost of premises sold for the reporting period is 4.5 billion tenge lower compared to the similar period in 2019 due to distinct sales volume under Nurly Zher Program using the direct sale method and due to the recalculation of utility expenses by the utility services the expenses for the maintenance of real estate before sale of the real estate in the reporting period are lower;

general administrative expenses in the reporting period are 0.4 billion tenge lower, which is connected with a change in the number of employees. Also, the change in the GAE compared to the similar period in 2019 was affected by the expenses to pay the state duty incurred by the Company in the similar period in 2019 and the remuneration of the management;

finance costs in the reporting period are 0.5 billion tenge lower than in the similar period in 2019 due to the change in the amount of liabilities.



The information on third-party transactions concluded in 2020 is presented in Appendix No.1.



Risk management in the Company is an ongoing and continuous process and is designed to ensure timely identification of potentially risky events and to take measures to minimize risks that could negatively affect the Company’s activities and the achievement of its goals. In cases where the occurrence of such events is inevitable, the Company takes all the necessary measures to minimize negative consequences. The Company operates a corporate risk management system (CRMS) based on the generally accepted conceptual risk management models and recommendations developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO ERM ‘Organizational Risk Management: Integration with Strategy and Performance’)

The basic principles of CRMS in the Company are defined in the Risk Management and Internal Control Policy approved by the resolution of the Board of Directors, which is publicly available on the official website of the Company.

The structure of the risk management system in the Company is represented by risk management at several levels with involving the following bodies and divisions of the Company: Board of Directors, Management Board, Risk Management Committee, Internal Audit Service, Compliance Controller, business unit responsible for risk management. The Company has an internal control system, which is a tool that allows the management making decisions aimed at prompt identification and prevention of risks, and provide reasonable confidence in the achievement of the Company’s strategic goals.

On an ongoing basis, the Company organizes the meetings of the Risk Management Committee, listens to the reports and discusses the measures to manage significant risks, presents reports on the measures taken to improve the CRMS. The information on realized risks is communicated in due time to the Management Board and the Board of Directors of the Company





The Company carries out a comprehensive identification and assessment of risks on an annual basis, following which a Register and a map of risks are prepared. The basis risks of the Company are related to the specific character of construction activities.

The Company’s register and map of risks for 2020 are approved by the resolution of the Board of Directors of the Company. In 2020, the Company has included 25 risks in the register and map of significant risks of which the following are critical risks:

– late commissioning of the real estate properties;

– the risk of default in obligations under the mediation agreements between KAONTECH International LLP and Shar-Kurylys LLP;

– the risk of becoming infected with Covid-19.

During 2020, these risks were realized, and the Company updated the list of risks due to the identification of such significant risks as the risk of becoming infected with Covid-19 and the risk of asset impairment.

The Company took measures to minimize the risks realization and the consequences of their realization, including:

– continuous monitoring of sale of the properties, visits to the facilities, concluding with the developers the additional agreements to contracts with updated terms for the commissioning of the real estate properties and taking into possession;

– control and monitoring of elimination of identified defects for the subsequent transfer of real estate properties to the buyers;

– analysis of current prices of sale of the residential and non-residential real estate properties. Changes in the method of sale and selling price due to changes in conditions of the real estate market;

– work is performed to repay the problem receivables, the meetings and negotiations have been organized, proposals from counterparties have been considered regarding fulfilment of obligations under the mediation agreements, the writs of execution have been sent to private and state officers of justice in order to collect debts according to the established procedure;

– some of the Company’s employees are permanently transferred to remote work, testing for the determination of RNA of the COVID-19 virus is carried out when employees come to the office, and the office is treated with preservative.

The activities under the plan to minimize the other risks are carried out on an ongoing basis. The register and map of risks of the Company for 2021 are approved by resolution of the Board of Directors of the Company No.154 dated 09.11.2020.