Annual Report 2020

To power our business going forward, we are turning the focus on three major sustainability initiatives: • Environmental, Social, and Governance (ESG) – channelling resources to further comply with ESG criteria, and meet the United Nations Sustainable Development Goals as we strive to be a good steward of the trust placed in us. • Technology - employment of data analytics, artificial intelligence, automation and cloud technology as a building block of business sustainability. • Talent - transforming our talent management programme by upholding a values-driven culture and an empowering work environment in order to attract and retain high performance talents. On the tail of being included into the MSCI Global Index last financial year, which elevated QL’s attractiveness as an investment while heightening the profile of our portfolio of brands. In our endeavour to create shared value for all, we also are committed to sharing this value with loyal shareholders. Our financial prudence has once again placed us in the position to reward the trust of shareholders with dividends for their continued support. The Board has proposed a final single tier dividend of 4.5 sen per share in respect for the financial year 2020, subject to shareholders’ approval in the upcoming annual general meeting. In addition, a bonus share issuance on the basis of one bonus share for every two QL shares held on an entitlement date to be fixed has also been proposed. Upon approval, total payout will amount to RM73.01 million or 30.51% of our profit for FY2020 as well as 811.22 million bonus shares. FINANCIAL YEAR 2021 PROSPECTS The year 2020 is shaping up to be a very eventful year where dark clouds and storms were aplenty. It is a year of managing risks arising from a volatile external environment as we toil on. COVID-19 delivered shocks to the economy throughout the world, and exacerbated the synchronised slowdown of global economy lingering from2019. The global and domestic economy are projected to head into the worst recession - since the Great Depression and in the nation’s history respectively. With economic contractions come damage to the labour market and buying power. As efforts are made to alleviate the human costs and arrest transmission, it was too a race to attenuate the slide in economy. It is a delicate balance where the stakes are high as nations and populations grapple with the new normal. Adding to the woes is the persisting posturing and recent actions in the contentious relationship between the United States and China that is giving rise to mounting threats that can dissipate the fragile recovery that economies are working hard to forge. Through a gloom and doom situation, there are rays of sunshine where businesses in staples thrive. As an agro-based producer of nourishing food items, QL’s business pillars are classified as an essential service and allowed to operate subject to Standard Operating Procedure (SOP), bar for some FamilyMart outlets which were located in premises that were ordered to close during the Movement Control Order (MCO) period. The produce of our Marine Products Manufacturing and Integrated Livestock Farming are invaluable food sources for the general population. Eggs, surimi and surimi-based products are easily stored and cooked in a variety of ways for consumption, which helps their appeal. This meant while production may have been affected by supply chain disruptions and stringent SOP compliance, demand for our products is ever-present for consumer nourishment. As we trudge through a year filled with the fallouts of crises, and weak sentiment, we are confident of the strong foundation laid as we strive to sustain performance and continue delivering quality that benefit all. CORPORATE GOVERNANCE QL’s corporate governance framework is built on the philosophy of stewardship. As we hunker down for the road ahead, we remain steadfast in our hold on integrity, transparency and accountability. Our corporate governance is underscored by our commitment to our mission of providing nourishing products from agro resources, constantly refining our processes to increase efficiency, and benchmarking our performance via regular analysis. Above all, all stakeholders from Board members to every rank and file within the corporation are guided by ethical practices and hold self answerable in all we are charged with. Annual Report | 2020 QL Resources Berhad 26 Chairman's Statement