Annual Report 2020

Marine Products Manufacturing (MPM) QL’s roots is traced to MPM. QL’s business inMPM flows through the entire value chain fromupstreamrawmaterial to downstream consumers. Our focus is on producing wholesome marine-based products that adds convenience. The five distinct sub-pillars of MPM stretch from source, starting with deep sea fishing and aquaculture farming to the complementary processing of primary material into surimi, snacks, and fishmeal. Inmeeting the needs of modern lifestyles, QL also produces a plethora of seafood-based foods; fromhot favourites such as live cooked shrimps and a wide variety of fishballs for home kitchens and chefs in restaurants to delicious, yummy munchies for kids and adults alike. In FY2020, we again retained our lead as the largest surimi producer in Southeast Asia, as well as the largest manufacturer of surimi-based products, and halal fish- based products in Malaysia. QL is also the biggest fishmeal producer in the country. More than just quantity, we are committed to quality. The experience, expertise and invaluable network of business partners and distribution built over the years have enabled us to uphold the highest standards in our processes andmanufacture products that proudly bear the stamp of made by a QL company. Much is given, much is expected. QL ismindful that wearing the hat of a market leader requires it to hold self to higher accountability. To this end, all our downstream production facilities comply with Hazard Analysis and Critical Control Point (HACCP) certification and the US Federal Department of Agriculture or EU regulations where applicable. Key MPM Developments In order to continue churning out nurturing products to feed an increasing population living busy lifestyles, QL consistently invests into capacity building and improving operational efficiency. After completing the new chilled and frozen surimi-based product plant in March 2018, QL’s Hutan Melintangmarine unit ramped up production capacity in FY2019 courtesy of its newly deployed automation. The annual production capacity at this unit stands at 25,000 metric tonnes for chilled surimi and 35,000 metric tonnes for frozen products. In charting its expansion path to meet strong demands for its products from both overseas and local markets, QL has embarked on another phase of expansion; we are in the process of acquiring a sizeable piece of land adjacent to current plant locale. Annual Report | 2020 QL Resources Berhad 30 Management Discussion & Analysis