Annual Report 2020

The second decade as a listed entity started on an even more exciting note. QL was awarded The Edge Billion Ringgit Club 2011 Company of the Year, beating 184 other eligible companies. Toward the tail end of the ten years, QL was included in the MSCI Global Index, testament to our value proposition as an attractive investment based onmarket capitalisation and liquidity levels. These successes are largely made possible by the nature of our business, providing nourishing agro-based products that meet the nourishment needs of many societies around the world and is considered a dietary staple. QL is built on entrepreneurial spirit. Led by farsighted leadership and supported by a team who executes with passion, we anchor ourselves firmly in our culture of integrity and shared value creation. Our values have remained unchanged since our founding – all that we do must benefit all. This immutable value is carried in our name – QL are the initials of quan li ( 全 利 ) which means ‘Benefits for All’, and is etched into everyone in QL. We hold firmly to our philosophy that sustainable business growth is key to long-term success and value creation for shareholders. The united hard work of the directors, management and all level of employees in staying true to our name and keeping on course with our strategy, expanding the value chain of our core businesses have provided the thrust to deliver growth every year. We are pleased that this growth trajectory continued in the financial period that ended 31 March 2020 (FY2020). QL Resources Berhad returned another consecutive year of profitability after weathering through a very challenging business environment, in which our last financial quarter experienced the impact of severe global economic slowdown. We posted double-digit growth in revenue and earnings against a backdrop where global growth was recorded at its weakest pace of 2.9% since a decade ago. Business sentiment remained uncertain as trade barriers continued to rise, while Malaysian palm oil industry battled on in the face of acceptance challenges and stiff competition from other oil crops. Notwithstanding the deceleration of global economy, Malaysia soldiered on, recording a respectable 4.3%GDP expansion in 2019 with the Ringgit hovering at the RM4.06 to RM4.22 mark. The resulting stable domestic market confidence translated to a bolstered private consumption, which however, began to feel the impact of COVID-19 in our last financial quarter. Overall, QL posted a year-on-year 15% revenue growth to RM4.15 billion while the profit after tax and minority interest (PATAMI) rose 10% to RM239 million. The encouraging results are largely attributable to the positive performance of the Marine Products Manufacturing (MPM). Better fish landing following the recovery of the post El-Nino low fish catch cycle, and favourable foreign exchange drove pace at MPM. As we continue on the momentum of building sustainable growth, we are mindful of the uphill trek the coming months may pose as economies battle for survival in the face of the ongoing pandemic. At this moment, Malaysia has fortunately made significant strides forward in halting the virus and reopening the economy, which can improve consumer sentiment and spending. Yet we know nothing can be taken for certain. QL is committed to continuously strengthen internal efficiencies and build capabilities to deliver business growth. Our three-pronged strategy of regional replication, value chain strengthening, and downstream integration has held QL in good stead and laid the path to lead us through the challenging time ahead. We keep abreast of shifts in business environment and adjust our action plan against key economic development, consumer demand and market potential indicators. And, our 3C approach of Conserve, Continue and Core Focus is guiding us well in identifying areas for expansion focus throughout our entire value chain and where QL is capable of growing further. A Milestone on Our Sustainable Growth Journey 25