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page • 41 MALAYSIAN MOSAICS BERHAD (Company No. 5371-V) Taman Fajar Perdana in the current financial year. The Division is also embarking on a housing development in Kluang, Johor as a first step towards our plan of expanding our Property Division’s operations to Peninsular Malaysia. Our Property Division, being the dominant player in the Sabah market with emphasis on quality products and giving our customers value for money is expected to maintain its position in the future. The Division’s reputation for prompt deliveries and emphasis on affordable homes construction have augured well with the confidence of the general population at large. Without unduly increasing selling prices, superior specifications in the form of premium MML homogeneous tiles were provided to higher end premium units, thereby enhancing product quality particularly in Taman Kingfisher II. Rental Properties The Division’s rental properties comprising industrial, commercial and residential properties are situated mainly in Tawau, Lahad Datu, Sandakan and Kota Kinabalu. During the year 2000/2001, the Division was able to achieve high occupancy rates for most of its properties. Properties held for resale Properties held for resale comprising commercial, residential and industrial properties are situated mainly in Tawau, Lahad Datu, Sandakan and Kota Kinabalu. The outlook for 2001/2002 is expected to remain positive with stable property outlook in Sabah. The prevailing low interest rates and the continuous effort of the Government in organizing the “Home Ownership Campaign” throughout the country is expected to continue to provide the impetus for growth in the property sector. Our Property Division’s projects which are in strategic and prestigious locations in Sabah are expected to benefit significantly from any Government actions to boost the property sector coupled with the Division’s reputation in prompt deliveries and affordable quality homes construction, lending confidence to the general population purchasing residential properties. PROPERTY DIVISION (cont’d) Bungalow type ‘Camelia’ at Kingfisher II Semi-detached house type ‘Primrose’ at Kingfisher Prospek bagi tahun kewangan 2001/2002 dijangka masih positif memandangkan pasaran hartanah yang stabil di negeri Sabah. Kadar faedah semasa yang rendah serta usaha berterusan pihak Kerajaan dalam menganjurkan “Kempen Pemilikan Rumah” di seluruh negara dijangka akan memberi galakan kepada sektor hartanah untuk perkembangan seterusnya. Memandangkan projek-projek Bahagian Hartanah kami yang terletak di lokasi yang strategi dan berprestij di negeri Sabah, serta keyakinan para pembeli hartanah kediaman terhadap Bahagian ini dan juga reputasinya sebagai pemaju yang menyerahkan hartanah dengan pantas dan membina rumah berkualiti disamping harga berpatutan, maka Bahagian ini dijangka akan mendapat manfaat dari apa jua tindakan pihak Kerajaan untuk merangsangkan sektor hartanah. page • 41 MALAYSIAN MOSAICS BERHAD (Company No. 5371-V)
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PROPERTY DIVISION (cont'd) - I3investor

Feb 22, 2023

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Page 1: PROPERTY DIVISION (cont'd) - I3investor

page • 41

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

Taman Fajar Perdana in the current financial year.The Division is also embarking on a housing developmentin Kluang, Johor as a first step towards our plan ofexpanding our Property Division’s operations toPeninsular Malaysia.

Our Property Division, being the dominant player in theSabah market with emphasis on quality products andgiving our customers value for money is expected tomaintain its position in the future. The Division’s reputationfor prompt deliveries and emphasis on affordable homesconstruction have augured well with the confidence of thegeneral population at large. Without unduly increasingselling prices, superior specifications in the form ofpremium MML homogeneous tiles were provided tohigher end premium units, thereby enhancing productquality particularly in Taman Kingfisher II.

Rental PropertiesThe Division’s rental properties comprising industrial,commercial and residential properties are situated mainlyin Tawau, Lahad Datu, Sandakan and Kota Kinabalu.During the year 2000/2001, the Division was able toachieve high occupancy rates for most of its properties.

Properties held for resaleProperties held for resale comprising commercial, residentialand industrial properties are situated mainly in Tawau,Lahad Datu, Sandakan and Kota Kinabalu.

The outlook for 2001/2002 is expected to remainpositive with stable property outlook in Sabah. Theprevailing low interest rates and the continuous effort ofthe Government in organizing the “Home OwnershipCampaign” throughout the country is expected tocontinue to provide the impetus for growth in the propertysector. Our Property Division’s projects which are instrategic and prestigious locations in Sabah are expectedto benefit significantly from any Government actions toboost the property sector coupled with the Division’sreputation in prompt deliveries and affordable qualityhomes construction, lending confidence to the generalpopulation purchasing residential properties.

P R O P E R T Y D I V I S I O N (cont’d)

Bungalow type ‘Camelia’ at Kingfisher II

Semi-detached house type ‘Primrose’ at Kingfisher

Prospek bagi tahun kewangan 2001/2002 dijangkamasih positif memandangkan pasaran hartanah yangstabil di negeri Sabah. Kadar faedah semasa yangrendah serta usaha berterusan pihak Kerajaan dalammenganjurkan “Kempen Pemilikan Rumah” di seluruhnegara dijangka akan memberi galakan kepadasektor hartanah untuk perkembangan seterusnya.Memandangkan projek-projek Bahagian Hartanah kamiyang terletak di lokasi yang strategi dan berprestij dinegeri Sabah, serta keyakinan para pembeli hartanahkediaman terhadap Bahagian ini dan juga reputasinyasebagai pemaju yang menyerahkan hartanah denganpantas dan membina rumah berkualiti disamping hargaberpatutan, maka Bahagian ini di jangka akanmendapat manfaat dari apa jua tindakan pihak Kerajaanuntuk merangsangkan sektor hartanah.

page • 41

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

Page 2: PROPERTY DIVISION (cont'd) - I3investor

page • 42

exclusive dealerships& A n c i l l a r y S e r v i c e s

page • 42

Page 3: PROPERTY DIVISION (cont'd) - I3investor

page • 43

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

A U T O M O T I V E D I V I S I O N

Mercedes Benz ‘S-Class’ distributed by Si Khiong Industries Sdn Bhd

page • 43

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

enyertaan Kumpulan di dalam industri automotifadalah menerusi Si Khiong Industries Sdn Bhddan syarikat subsidiarinya,Zarah Sdn Bhd danSKI Segar Sdn Bhd.

Si Khiong memegang hak wakil pengedar eksklusif bagitrak balak Mercedes Benz serta trak kegunaan am, bas,kenderaan penumpang dan alat ganti Mercedes Benz dinegeri Sabah dan Sarawak. Syarikat ini juga merupakanwakil pengedar kenderaan ringan bagi Mazda danmemberikan perkhidmatan sokongan di bawah berbagaimodel kenderaan pembuat kereta. Dengan kepakaranteknik di dalam bidang perniagaan pembalakan dankebolehharapan untuk menyediakan khidmat sebelum danselepas jualan, Si Khiong adalah pemimpin pasarandalam pengedaran trak balak di Sabah dan Sarawakdengan menguasai hampir 100% syer pasaran. BahagianAutomotif membuat dan memasang treler trak balak danlori tangki menerusi Zarah Sdn Bhd dan juga adalahpengedar kereta Proton menerusi SKI Segar Sdn Bhd.

Bahagian Automotif terus dimanfaatkan oleh pemulihanindustri automotif pada tahun1999 yang berterusanhingga tahun 2000 disebabkan oleh ekonomi dankeadaan perniagaan yang bertambah baik.Kelonggaran kecairan dan kadar faedah dalam pasaransewa beli serta harga balak antarabangsa yang

bertambah baik pada awal tahun 2000telah memberi sumbangan positif

kepada penjualan trak balakdan kenderaan penumpang.

T he Group’s participation in the automotive industry is through Si Khiong Industries Sdn Bhd (“Si Khiong”) and its subsidiaries Zarah Sdn Bhd and SKI Segar Sdn Bhd.

Si Khiong holds the exclusive dealership rights for theMercedes Benz logging trucks as well as Mercedes Benzgeneral purpose trucks, buses, passenger vehicles andspare parts for East Malaysia. The company is also thedealer in light vehicles for Mazda and provides ancillaryservices under the various principal makes. With itsinvaluable technical know-how in the logging businessand reliability in providing good before and after salesservices, Si Khiong is now the market leader in thedistribution of logging trucks in East Malaysia, with almost100% market share. The Division fabricates andassembles logging trucks trailers and tankers throughZarah Sdn Bhd, whilst the Division is a dealer for Protonvehicles through SKI Segar Sdn Bhd.

Our Automotive Division continues to benefit from therecovery of the automotive industry in 1999 which hadcontinued to 2000 on the back of an improved economyand trading conditions. The easing of liquidity andinterest rates in the Hire Purchase market coupled withthe improvement in the international timber prices in theearlier part of 2000 have contributed positively to thesale of logging trucks and passenger vehicles. OurAutomotive Division’s turnover increased by 11% fromRM97.6 million in 1999/2000 to RM108.6 million this year.

In line with the slightly lower Gross Domestic Product(GDP) forecast for the country, the Division expects thedemand for passenger vehicles to be maintained.Logging trucks sales is anticipated to be impacted in2001/2002 in tandem with fluctuation in timber pricesaffected by the general slowdown of economies in mostmajor timber importer countries.

In a continuous effort to achieve technical improvements,the Division together with the manufacturer Daimler

P

Page 4: PROPERTY DIVISION (cont'd) - I3investor

page • 44

Chrysler, is completing the testing of a new logging truckmodel under the “Mercedes Benz Actros” series. The resultsof trial runs in respect of the hauling operations in someof the timber concessionaires have proved to be highlypositive. The new “Mercedes Benz Actros” logging truckcomes with a V6 engine generating a power output of400HP and is turbo charged and intercooled with a grosscombination weight of 85 tons and capable of achieving85km/hr maximum speed performance. The vastlyimproved technical specifications with improved engineefficiency is capable of achieving lower fuel consumptionof up to 25% saving, lower service cost and oil change,improved stopping distance with the introduction of AntiBrake Locking System (ABS) and capable of achievingfaster turnaround time. The technical improvements areexpected to translate to lower operating costs in timberhauling operations.

Si Khiong’s wholly owned subsdiary, MMB CreditCorporation Sdn Bhd which is the Division’s credit arm,has a money lending licence and is predominantly involvedin the provision of hire purchase, leasing and term loanfinancing through its three branches in Kota Kinabalu,Sandakan and Tawau. Through the synergistic businesslinkages within our Group’s businesses, MMB CreditCorporation Sdn Bhd was able to position itself to expand

Mercedes Benz ‘C-Class’ distributed by Si Khiong Industries Sdn Bhd

Characteristic features of the Mercedes Benz ‘C-Class’

Jumlah perolehan Bahagian Automotif meningkatsebanyak 11% daripada RM97.6 juta pada tahun 1999/2000 kepada RM108.6 juta pada tahun ini.

Selaras dengan ramalan kadar pertumbuhan KeluaranDalam Negeri Kasar negara ini yang lebih rendah,Bahagian Automotif menjangkakan bahawa permintaanuntuk kenderaan penumpang akan dikekalkan dan jualantrak balak dijangka terjejas pada tahun 2001/2002 olehkerana naik-turun harga balak akibat kegawatan ekonomidi kebanyakan negara pengimport balak utama .

Dalam usaha berterusan untuk meningkatkan keupayaantekniknya, Bahagian ini bersama-sama dengan pembuatkereta, DaimlerChrysler sedang menjalankan ujian atassejenis model trak balak baru dibawah siri “MercedesBenz Actros”. Keputusan ujian dalam operasipemunggahan di beberapa kawasan pembalakan telahmenunjukkan hasil yang sungguh positif. Trak balak“Mercedes Benz Actros” yang baru ini dilengkapi denganenjin V6 yang menjana keluaran kuasa sebanyak 400HP dan dicas turbo serta saling sejuk dengan beratkombinasi kasar sebanyak 85 tan dan dapat mencapaiprestasi kelajuan maksimum sehingga 85km/sejam.Speksifikasi teknik yang banyak bertambah baik dengankecekapan enjin yang lebih tinggi dapat mencapaipenggunaan bahan api yang lebih rendah denganpenjimatan sehingga 25%, kos servis dan penggantianminyak yang lebih rendah, jarak berhenti yang bertambahbaik dengan penggunaan Sistem Mengunci Anti Brek(ABS) dan dapat mempercepatkan masa patahbalik.Peningkatan ciri teknik tersebut dijangka dapatmengurangkan kos kendalian dalam operasipemunggahan balak.

Syarikat subsidiari milik penuh Si Khiong, MMB CreditCorporation Sdn Bhd yang merupakan sayap kreditBahagian Automotif, mempunyai lesen meminjam wangdan ia terutamanya terlibat di dalam perniagaanmemberikan kemudahan sewa beli, pemajakan, danpinjaman bertempoh menerusi 3 cawangannya masing-masing di Kota Kinabalu, Sandakan dan Tawau. Denganadanya rangkaian perniagaan yang sinergik di dalamperniagaan Kumpulan, maka MMB Credit CorporationSdn Bhd telah berupaya memperkembangkan portfoliopinjamannya kepada sektor Pengangkutan danKelengkapan Industri serta industri Perladangan. Namundemikian , kegiatan pinjaman terutamanya terhad kepada

page • 44

Page 5: PROPERTY DIVISION (cont'd) - I3investor

page • 45

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

MALAYSIAN MOSAICS BERHAD(Company No. 5371-V)

Mazda Fighter Double Cab model distributed by Si Khiong Industries Sdn Bhd

pelanggan yang mempunyai hubungan perniagaansecara langsung atau tidak langsung dengan pelbagaikegiatan perniagaan Kumpulan di Sabah dan Sarawakdalam bentuk pinjaman berkaitan dengan pernigaan danbukan pembiayaan kredit penggunaan.

Pada tahun 2000/2001, sebagai sebahagian rancanganpenyusunan semula Kumpulan, Zarah Sdn Bhd yangmerupakan syarikat subsidiari milik penuh MMB telahdisusun semula dan menjadi syarikat subsidiari milikpenuh Si Khiong Industries Sdn Bhd dan kemudiannyaseluruh Bahagian Automotif telah disusun semula dan diletak di bawah HSCB, sebuah syarikat subsidiaritersenarai di dalam Kumpulan MMB. PelupusanBahagian Automotif yang termasuk Si Khiong IndustriesSdn Bhd dan kesemua syarikat subsidiarinya,iaitu Zarah Sdn Bhd, SKI Segar Sdn Bhd, MMBCredit Corporation Sdn Bhd, Saruja Sdn Bhd danSyarikat Pengangkutan Bunga Raya (Tawau) Sdn Bhdkepada HSCB telah dilulus oleh para pemegangsaham minoriti kedua-dua MMB dan HSCBpada 4 Disember 2000 dan telah disempurnakan pada31 Januari 2001.

Penyusunan semula tersebut adalah selaras dengantujuan Kumpulan untuk memperkemaskan perniagaanKumpulan MMB (tidak termasuk HSCB) agar memberitumpuan kepada pembangunan hartanah, pembuatandan pemasaran jubin seramik homogen dan menyusunsemula kegiatan perdagangan Kumpulan di bawahkegiatan perdagangan HSCB yang sedia ada.

page • 45

its loan portfolio into the Transportation and IndustrialEquipment sector as well as the Plantation industry. Lendingactivities were however mainly confined to customershaving direct or indirect business linkages with the Group’svarious activities in East Malaysia in the nature of businessrelated loans rather than financing consumption credit.

During the year 2000/2001, as part of the Group’srationalisation exercise, Zarah Sdn Bhd which was awholly owned subsidiary of MMB was restructured tobecome a wholly owned subsidiary of Si Khiongindustries Sdn Bhd and the entire Automotive Divisionafter the aforementioned restructuring was rationalisedunder HSCB, a listed subsidiary in the MMB stable. Thedisposal of the Division which includes Si KhiongIndustries Sdn Bhd and all its subsidiaries namely, ZarahSdn Bhd, SKI Segar Sdn Bhd, MMB Credit CorporationSdn Bhd, Saruja Sdn Bhd and Syarikat PengangkutanBunga Raya (Tawau) Sdn Bhd to HSCB which wasapproved by minority shareholders of both MMB andHSCB on 4 December 2000 was completed on31 January 2001.

The rationalisation was in line with the Group’s objectiveto streamline its business for MMB Group (excludingHSCB) to focus on property development, manufacturingand marketing of homogeneous ceramic tiles andrationalise the Group’s trading activities underHSCB’s existing trading activities.

Page 6: PROPERTY DIVISION (cont'd) - I3investor

page • 46

t r a d i n gA c t i v i t i e s

page • 46

Page 7: PROPERTY DIVISION (cont'd) - I3investor

page • 47

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

T R A D I N G D I V I S I O N

The Trading Division is involved in the

manufacture and distribution of agro products

and chemicals and distribution of building

materials and petroleum products in all major locations

in Sabah and Sarawak achieving a turnover of RM213.5

million and growth of 4% impacted by soft commodity

prices. During the year 2000/2001, the Division

expanded its distribution network to Peninsular

Malaysia. Distribution of agro products and chemicals,

and building materials are conducted through Sasco

Sdn Bhd (“Sasco”) whilst Dewana Sdn Bhd (“Dewana”)

is involved in the manufacture of agrochemicals.

Trading of petroleum products are conducted through

Hap Seng (Oil & Transport) Sdn Bhd (“HSOT”).

Sasco has an established reputation as a reliable supplier

of quality products with a network of 8 branches and

logistically well positioned warehousing facilities

providing effective supply and delivery support to the

plantation industry. With strong support from its

principals, Sasco continues to maintain its position as

the market leader in the fertilizers business in Sabah

and Sarawak despite operating in a very competitive

business environment and soft commodity prices.

The Division currently handles approximately 35%

of the total fertilizers requirement in Sabah and

Sarawak and is also establishing a strong

presence in Peninsular Malaysia.

Dewana Sdn Bhd’s Glyphosate plantpage • 47

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

ahagian Perdagangan terlibat dalam pembuatan

dan pengedaran produk pertanian dan bahan

kimia pertanian serta pengedaran bahan binaan

dan produk petroleum di seluruh lokasi utama di Sabah

dan Sarawak. Bahagian ini mencatatkan perolehan

berjumlah RM213.5 juta atau peningkatan sebanyak 4%

akibat harga komoditi yang lemah. Pada tahun kewangan

2000/2001, Bahagian Perdagangan memperluaskan

rangkaian pengedarannya ke Semenanjung Malaysia.

Pengedaran produk pertanian dan kimia pertanian serta

bahan binaan dikendalikan melalui Sasco Sdn Bhd

(“Sasco”) manakala Dewana Sdn Bhd (“Dewana”) terlibat

dalam pembuatan bahan kimia pertanian. Perdagangan

produk petroleum dikendalikan menerusi Hap Seng (Oil

& Transport) Sdn Bhd (“HSOT”).

Sasco mempunyai reputasi yang mantap sebagai

pembekal produk berkualiti yang boleh dipercayai dengan

rangkaian yang terdiri daripada 8 cawangan serta

kemudahan gudang yang berlogistik baik untuk memberi

sokongan bekalan dan hantaran yang berkesan kepada

industri perladangan. Dengan sokongan kuat dari

prinsipalnya, Sasco dapat mengekalkan kedudukannya

sebagai pemimpin pasaran di dalam perniagaan baja

di Sabah dan Sarawak walaupun keadaan perniagaan

agak bersaing serta harga komoditi yang lemah.

B

Page 8: PROPERTY DIVISION (cont'd) - I3investor

page • 48

T R A D I N G D I V I S I O N (cont’d)

The performance of agro products and chemicals

trading continues to improve with the expansion of

plantation hectarage in Sabah and Sarawak, resulting

in higher matured acreage of oil palm. Total tonnage

distributed in 2000/2001 amounted to approximately

272,000 metric tons during the year, compared to

248,000 metric tons in 1999/2000.

The commissioning of its agrochemical plant during the

year, manufacturing Glyphosate under Dewana and the

addition of a fer ti lizer plant manufacturing

Nitrogen Phosphate Potassium (NPK) to be

commissioned during year 2001/2002 by Sasco will

provide the Division with the competitive edge to

further enhance its dominant market leadership

position. The Glyphosate marketed under “Dewana”

Processing and packing of NPK fertilizer

Sasco’s NPK fertilizer plant

Bahagian Perdagangan sekarang memenuhi lebih

kurang 35% permintaan baja di Sabah dan Sarawak

dan ia juga telah mengadakan kehadiran yang kuat di

Semenanjung Malaysia.

Prestasi perdagangan produk pertanian dan bahan

kimia pertanian semakin bertambah baik dengan

perkembangan keluasan ladang di Sabah dan Sarawak

yang telah menghasilkan peningkatan keluasan kelapa

sawit yang matang. Jumlah yang diedar pada tahun

2000/2001 ialah kira-kira 272,000 tan metrik

berbanding dengan 248,000 tan metrik pada tahun

1999/2000.

Permulaan operasi loji kimia pertanian pada tahun

2000/2001 yang menghasilkan Glifosat di bawah

Dewana dan pembinaan sebuah lagi loji baja yang

akan bermula operasi pada tahun 2001/2002 oleh Sasco

akan memberi kelebihan bersaingan kepada Bahagian

ini untuk meningkatkan lagi kedudukannya sebagai

pemimpin pasaran. Glifosat yang dipasarkan dengan

jenama “Dewana” telah diterima secara meluas di

pasaran, hasil kesan sinergik daripada rangkaian

pemasaran Sasco yang mantap serta kedudukan

menguasanya di dalam industri pertanian.

page • 48

Page 9: PROPERTY DIVISION (cont'd) - I3investor

page • 49

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

T R A D I N G D I V I S I O N (cont’d)

brand name has achieved wide market acceptance

deriving synergy from the established distribution

network of Sasco and its dominant position in the agro

industry.

Building materials and petroleum products trading

performed satisfactorily with the improvement in the

construction sector. Sasco is a major distributor in Sabah

and Sarawak of “MML” tiles produced by our Group’s

MML Division. HSOT is well supported by its principal

in the distribution of Shell petroleum products.

During the year 2000/2001, as part of the Group’s

rationalisation exercise, Hap Seng (Oil & Transport) Sdn

Bhd, which was a wholly owned subsidiary of MMB,

and Dewana Sdn Bhd which was a 70% owned

subsidiary of MMB, were restructured to become

subsidiaries of Sasco Sdn Bhd and subsequently, the

entire Trading Division was rationalised under HSCB, a

listed subsidiary in the MMB stable. The disposal of the

Division which includes Sasco Sdn Bhd and all its

subsidiaries namely, Hap Seng (Oil & Transport) Sdn

Bhd and Dewana Sdn Bhd to HSCB which was

approved by the minority shareholders of both MMB

and HSCB on 4 December 2000 was completed on 31

January 2001.

The rationalisation of the Trading Division under HSCB

was to provide a downstream integration for the oil

palm cultivation and processing business of HSCB and

NPK fertilizer distributed by Sasco

Kegiatan perdagangan bahan binaan dan produk

petroleum mencapai prestasi yang memuaskan dengan

pemulihan sektor pembinaan. Sasco adalah pengedar

utama jubin “MML” buatan Bahagian MML Kumpulan di

Sabah dan Sarawak. HSOT juga menerima sokongan

baik daripada prinsipalnya dalam kegiatan pengedaran

produk petroleum Shell.

Pada tahun 2000/2001, Hap Seng (Oil & Transport) Sdn

Bhd yang merupakan syarikat subsidiari milik penuh

MMB, serta Dewana Sdn Bhd yang merupakan syarikat

subsidiari milikan 70% oleh MMB telah disusun semula

menjadi syarikat subsidiari Sasco Sdn Bhd dan

kemudianya seluruh Bahagian Perdagangan telah

disusun semula dan diletak di bawah HSCB, sebuah

syarikat subsidiari tersenarai dalam Kumpulan MMB.

Pelupusan Bahagian Perdagangan yang termasuk Sasco

Sdn Bhd dan kesemua syarikat subsidiarinya, iaitu Hap

Aerial spraying of pesticides over a plantation

page • 49

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

Page 10: PROPERTY DIVISION (cont'd) - I3investor

page • 50

also in line with the Group’s objective to streamline its

businesses for MMB Group (excluding HSCB) to focus

on property development, manufacturing and marketing

of homogeneous ceramic tiles.

Overall, the outlook for the Trading Division in 2001/

2002 is challenging in an environment of low commodity

prices. Sasco is expected to maintain its dominant

market leadership in the supply and distribution of

fertilizers to the plantation industry and will continue to

build upon its own brand of agro products as well as

develop new geographical markets. Building materials

and petroleum products trading is anticipated to improve

with the strengthening of the construction sector.

T R A D I N G D I V I S I O N (cont’d)

Unloading bulk potash fertilizer in progress

A nursery using “Wellmix” Organic fertilizer

Unloading of fertilizer ‘bulk cargo’ onto a lorry, at the port

page • 50

Seng (Oil & Transport) Sdn Bhd dan Dewana Sdn Bhd

kepada HSCB telah diluluskan oleh para pemegang

saham minoriti kedua-dua MMB dan HSCB pada 4

Disember 2000 dan telah disempurnakan pada 31 Januari

2001.

Penyusunan semula Bahagian Perdagangan di

bawah HSCB bertujuan untuk mengintegrasi kegiatan

penanaman kelapa saw i t d engan k eg i a t an

pempro se san HSCB ke sektor hilir dan ianya

juga selaras dengan objektif Kumpulan untuk

memperkemaskan perniagaan Kumpulan MMB (tidak

termasuk HSCB) agar memberi tumpuan kepada

pembangunan hartanah, pembuatan dan pemasaran

jubin seramik homogen.

Secara menyeluruh, prospek bagi Bahagian Perdagangan

pada tahun 2001/2002 adalah mencabar memandangkan

harga minyak sawit mentah yang rendah. Sasco dijangka

akan mengekalkan kedudukannya sebagai pemimpin

pasaran dalam industri bekalan dan pengedaran baja

kepada industri perladangan dan akan terus

membangunkan produk pertanian dengan jenama sendiri

sambil membuka pasaran baru. Perdagangan bahan

binaan dan produk petroleum dijangka akan bertambah

baik berikutan pemulihan sektor pembinaan yang

semakin kukuh.

Page 11: PROPERTY DIVISION (cont'd) - I3investor

page • 51

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

MALAYSIAN MOSAICS BERHAD(Company No. 5371-V)

page • 51

H A P S E N GCONSOLIDATEDB E R H A D ’ SB u s i n e s s A c t i v i t i e s

• 52 - 55 Plantation Activities • 56 - 63

Processing Activities • 64 - 65 Trading

Activities • 66 - 67 Research Activities •

68 Property Activities

• 52 - 55 Aktiviti Perladangan • 56 - 63

Aktiviti Pemerosesan • 64 - 65 Aktiviti

Pe rdagangan • 66 - 67 Ak t i v i t i

Penyelidikan • 68 Aktiviti Hartanah

Page 12: PROPERTY DIVISION (cont'd) - I3investor

page • 52

oil palm plantationsi n S a b a h

page • 52

Page 13: PROPERTY DIVISION (cont'd) - I3investor

page • 53

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

T

Gek Poh Research & Training Centre, Sungai Segama

he Plantation Division consists of four

Groups of Oil Palm Estates in East Sabah

with a total land area of 46,506 hectares (114,917

acres).

Planted Area Total Area

Jeroco Group of Estates 12,754 Ha 14,162 Ha

(JGOE) (31,515 acres) (34,994 acres)

Sungai Segama Group 8,841 Ha 9,906 Ha

of Estates (SSGOE) (21,846acres) (24,478 acres)

Tomanggong Group of 11,427 Ha 13,608 Ha

Estates (TMGOE) (28,236 acres) (33,626 acres)

Tongod 830 Ha 8,830 Ha

(2,051 acres) (21,819 acres)

With the progressive increase in mature areas and

favourable weather conditions the total production of fresh

fruit bunches (FFB) increased by 14.7% to 582,943 metric

tonnes (mt) from 508,095 mt, yielding 121,109 mt of Crude

Palm Oil (CPO) and 26,413 mt of Palm Kernel (PK).

Future Outlook

Overall production of CPO and PK is expected to

increase as large areas of young palms come into

P L A N T A T I O N A C T I V I T I E S

page • 53

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

Bahagian Perladangan terdiri daripada empat

Kumpulan Ladang Kelapa sawit di Sabah

Timur seluas 46,506 hektar (114,917 ekar).

Keluasan Jumlah Tanaman Keluasan

Kumpulan Estet 12,754 hektar 14,162 hektar

Jeroco (JGOE) (31,515 ekar) (34,994 ekar)

Kumpulan Estet 8,841 hektar 9,906 hektar

Sungai Segama (21,846 ekar) (24,478 ekar)

(SSGOE)

Kumpulan Estet 11,427 hektar 13,608 hektar

Tomanggong (28,236 ekar) (33,626 ekar)

(TMGOE)

Tongod 830 hektar 8,830 hektar

(2,051 ekar) (21,819 ekar)

Memandangkan keluasan matang semakin meningkat

serta keadaan cuaca yang baik, maka jumlah

pengeluaran buah tandan baru telah bertambah sebanyak

14.7% kepada 582,943 tan metrik daripada 508,095

tan metrik dan menghasilkan sebanyak 121,109 tan

metrik minyak sawit mentah dan 26,413 tan metrik isirong.

Page 14: PROPERTY DIVISION (cont'd) - I3investor

page • 54

Tomanggong Airport

Rivers 1 ferry over Segama River

Tinjauan Masa Depan

Pengeluaran minyak sawit mentah dan isirong dijangka

meningkat oleh sebab kawasan kelapa sawit muda

semakin matang dan kelapa sawit muda beransur-ansur

mencapai tempoh pengeluaran puncak.

Produktiviti, kualiti hasil tanaman dan keberkesanan kos

dijangka terus bertambah baik pada tahun 2001.

Mulai 2001, Bahagian Perladangan akan melaksanakan

Projek Mencegah Banjir selama 3 tahun dengan tujuan

meningkatkan hasil dari ladang di kawasan rendah

sepanjang tebing Sungai Segama.

Kumpulan River Estates Sdn Berhad (RESB)

Jumlah keluasan tanaman berubah sedikit kepada 20,268

hektar (50,082 ekar) . Lebih kurang 425 hektar ladang

di kawasan rendah dan berhasil rendah sedang

dipertingkatkan dengan Projek Mencegah Banjir tersebut.

Kumpulan Estet Sungai Segama (SSGOE)

Pengeluaran buah tandan baru meningkat sebanyak 40%.

Memandangkan profil umur SSGOE, pengeluaran buah

tandan baru dari ladang-ladang di sini akan terus

meningkat dan memberi sumbangan positif kepada

prestasi menyeluruh RESB.

maturity and young palms are reaching their peak

production period progressively.

Productivity, crop quality and cost efficiency are expected to

continue to improve in 2001.

Commencing 2001, the Division will carry out a three year

Flood Mitigation Project in order to enhance returns from

low lying planted fields along the Segama River.

The River Estates Sdn Berhad Group (RESB)

The total planted area amounted to 20,268 hectares

(50,082 acres). Some 425 hectares of lower lying and

yielding fields are being enhanced with the Flood

Mitigation Project.

Sungai Segama Group of Estates (SSGOE)

FFB production increased by 40%. Given the age profile

of SSGOE, FFB production from the estates will continue

to increase and contribute positively to the overall

performance of RESB.

The Malaysian Palm Oil Board awarded the Bukit Mas

Palm Oil Mill a certificate of excellence for outstanding

Oil Extraction Rate (OER) for 1999.

P L A N T A T I O N A C T I V I T I E S (cont’d)

page • 54

Page 15: PROPERTY DIVISION (cont'd) - I3investor

page • 55

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

AGE OF TREES (YEARS)

LA

ND

AR

EA

(A

CR

ES

)

TONGOD

TOMANGGONG

SUNGAI SEGAMA

JEROCO

12,000

10,000

8,000

6,000

4,000

2,000

0

Immature Mature

HSCB Group - Plantation DivisionAge Profile of Oil Palms

Newly completed Jeroco Airstrip

Tomanggong Group of Estates (TMGOE)

FFB production increased by 6%. Oil Palms are

progressively being replanted which will improve the

growth rate of future FFB production.

Jeroco Plantations Sdn Bhd (JPSB)

FFB production increased by 5%. Some 60% of the

mature oil palms of JPSB are in the peak production age.

The high crop productivity of the Group will continue with

more replantings coming into maturity.

Tongod

Development started on Phase I, comprising 830 hectares

(2,051 acres). This new plantation of 8,830 hectares

(21,819 acres) is scheduled to be fully planted with oil

palm over a period of five years.

Lembaga Minyak Sawit Malaysia telah menganugerahkan

Sijil Kecemerlangan kepada Kilang Minyak Sawit Bukit

Mas kerana mencapai Kadar Penyaringan Minyak (OER)

yang luar biasa pada 1999.

Kumpulan Estet Tomanggong (TMGOE)

Jumlah pengeluaran buah tandan baru meningkat

sebanyak 6%. Pokok sawit tua sedang ditanam semula

secara berperingkat untuk meningkatkan kadar

pengeluaran buah tandan baru pada masa depan.

Jeroco Plantations Sdn Bhd (JPSB)

Jumlah pengeluaran buah tandan baru meningkat

sebanyak 5%. Kira-kira 60% pokok sawit matang di JPSB

kini mencapai umur pengeluaran puncak. Produktiviti hasil

tanaman yang tinggi Kumpulan akan berterusan dengan

lebih kawasan yang ditanam semula mencapai

kematangan.

Tongod

Pembangunan ladang ini bermula dengan Fasa 1 seluas

830 hektar (2,051 ekar). Ladang baru seluas 8,830 hektar

(21,819 ekar) ini dijadual akan ditanam sepenuhnya

dengan kelapa sawit dalam tempoh lima tahun.

P L A N T A T I O N A C T I V I T I E S (cont’d)

page • 55

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

Page 16: PROPERTY DIVISION (cont'd) - I3investor

page • 56

crude palm oilP r o c e s s i n g A c t i v i t i e s

page • 56

Page 17: PROPERTY DIVISION (cont'd) - I3investor

page • 57

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

T

* HSCB* * Lam Soon Thailand*** Paos

he Strategic Development Plans of the Group

via HSCB incorporate downstream integration in

the value chain of crop production through the

production of crude palm oil, refined oils and fats and the

manufacturing of branded industrial as well as retail

packaged consumer products.

Our production reached 121,109 mt of CPO and 26,413

mt of PK from 577,849 mt of FFB. Our Palm Oil Mills are

continuously upgraded so as to improve on the extraction

rates. Our OER improved further to 20.96% from 20.31%

(which compares favourably with the National average

of 18.86%).

During the year, HSCB added to its downstream

integration by investments in Hong Kong [Lam Soon (Hong

Kong) Limited], Malaysia (Paos Holdings Berhad), and

Singapore (Aceford Food Industry Pte Ltd). The new

investments complement HSCB’s existing participation in

Lam Soon (Thailand) Public Company Limited and in Hop

Hing Holdings Limited in Hong Kong. We visualise that in

the future, these investments as well as new ones will

synergize with one another on a regional basis and will

create opportunities and expansion of manufacturing and

distribution in as well as outside the region that will add

strength and value to all the partners.

P R O C E S S I N G A C T I V I T I E S

page • 57

MALAYSIAN MOSAICS BERHAD

(Company No. 5371-V)

Rancangan Pembangunan Strategik Kumpulanmelalui HSCB termasuk penggabungan hilirandalam rantai nilai pengeluaran hasil tanaman

menerusi pengilangan minyak sawit mentah, minyak danlemak bertapis, serta pembuatan produk penggunaindustri dan pakej runcit berjenama.

Jumlah pengeluaran kami mencapai 121,109 tan metrikminyak sawit mentah dan 26,413 tan metrik isirongdiproses dari 577,849 tan metrik buah tandan baru.Kilang minyak sawit kami sentiasa menaikkan taraf untukmeninggikan kadar penyaringan minyak. Kadarpenyaringan minyak kami bertambah baik lagi kepada20.96% daripada 20.31% ( lebih tinggi daripada kadarpurata negara sebanyak 18.86%).

Pada sepanjang tahun, HSCB telah meningkatkanusahanya dalam penggabungan hiliran dengan melaburdi Hong Kong [Lam Soon (Hong Kong) Limited],Malaysia (Paos Holdings Berhad) dan Singapura (AcefordFood Industry Pte Ltd). Pelaburan baru tersebutmelengkapkan penyertaan HSCB di dalam Lam Soon(Thailand) Public Company Limited dan Hop HingHoldings Limited di Hong Kong. Kami menjangkakanbahawa pelaburan tersebut serta pelaburan baru akanmenyumbang terhadap satu sama lain secara serantausambil mewujudkan peluang dan memperkembangkankegiatan pembuatan dan pengedaran mahupun di dalamatau di luar rantau ini, dan justeru meningkatkan kekuatandan nilai kesemua rakan kongsi.

Palm Kernel Oil

FRESH FRUIT BUNCHES*

MILLPROCESS

KERNELS FruitResidues Fuel*CRUDE PALM OIL

CrushingExtraction**

Palm Kernel Meal***Palm Kernel Oil

Blending

Fractionationand Refining Refining Splitting

Refining

RBD PO

MargarinesShorteningsVanaspati

Frying FatsIce Cream

Animal Feed

Soaps

Hydrogenation MargarinesConfectioneries

Filled MilkIce Cream

Biscuit CreamsStearin Olein

H.P.K.O.H.K.O. Olein

ConfectioneriesCoffee Whitener

Filled MilkCoating Fats

MargarinesConfectioneryFats

Fatty Acids Glycerol

FattyAlcoholsAminesAmides

EmulsifiersHumectantsExplosives

Fractionationand Refining

Other Uses BeingResearched

Technical Usessoaps etc

RBDOlein

RBDOlein

FryingCooking

ShorteningsMargarines

ShorteningsMargarines

Palm Mid-Fraction***

Blending

Cocoa ButterEquivalent

Splitting

FattyAcids

SoapsFood Emulsifiers

etc

Soaps

PALM OIL UTILISATION CHART

FRESH FRUIT BUNCHES*

MILLPROCESS

KERNELS FruitResidues Fuel*CRUDE PALM OIL

CrushingExtraction**

Palm Kernel Meal***

Blending

Fractionationand Refining Refining Splitting

Refining

RBD PO

MargarinesShorteningsVanaspati

Frying FatsIce Cream

Animal Feed

Soaps

Hydrogenation MargarinesConfectioneries

Filled MilkIce Cream

Biscuit CreamsStearin Olein

H.P.K.O.H.K.O. Olein

ConfectioneriesCoffee Whitener

Filled MilkCoating Fats

MargarinesConfectioneryFats

Fatty Acids Glycerol

FattyAlcoholsAminesAmides

EmulsifiersHumectantsExplosives

Fractionationand Refining

Other Uses BeingResearched

Technical Usessoaps etc

RBDOlein

RBDOlein

FryingCooking

ShorteningsMargarines

ShorteningsMargarines

Palm Mid-Fraction***

Blending

Cocoa ButterEquivalent

Splitting

FattyAcids

SoapsFood Emulsifiers

etc

Soaps