Annual Report 2020

Principal Activities A sustainable and scalable multinational agro-food producer, QL has operations in four principal activities: Marine Products Manufacturing, Integrated Livestock Farming, Palm Oil Activities and FamilyMart. We produce resource-efficient proteinsources and foodviaoperational footprints in Malaysia, Indonesia, Vietnam and China. Integrated Livestock Farming With businesses spanning the entire value chain from feed and raw material trade, feed milling, layer farming to broiler integration, QL is a leading operator in integrated livestock farming in Malaysia. Our farms in Malaysia and Indonesia produce approximately 5.8 million eggs per day, 56 million Day Old Chicks (DOC) annually and 22 million broilers per annum. Every year, QL supplies and distributes over 1,000,000 metric tonnes of animal feed raw materials in Malaysia. Please refer to Management Discussion and Analysis on page 28. Marine Products Manufacturing QL specialises in the entire marineproductschain from upstream to downstream activities comprising deep- sea fishing, aquaculture farming, surimi and fishmeal production, and consumer foods. U t i l i s i n g a d v a n c e technology and industry best practices, QL has consistently maintained our leadership position as Malaysia’s largest fishmeal manufacturer, and producer of surimi- based products. We are also the largest surimi producer in Southeast Asia. Two of our consumer foods brands, Mushroom and Figo are distributed across Asia, Europe and North America. Please refer to Management Discussion and Analysis on page 28. Palm Oil Activities Fromowning andmanaging oil palm plantations to milling operations in Malaysia and Indonesia, QL has built up its capabilities in this pillar. QL pioneered a proprietary technology that converts palm waste biomass into high quality, efficient burning fuel that minimises carbon emissions and improves energy efficiencies through industrial boiler systems. Via our two independent Crude Palm Oil (CPO) mills, we service small and mediumsized estates in the Tawau and Kunak districts of Sabah, East Malaysia, while our CPO mill in Northern Kalimantan, Indonesia does the same for its region. QL’s total oil palm estate holding is at 16,000 hectares in Sabah and Eastern Kalimantan, Indonesia. Please refer to Management Discussion and Analysis on page 28. Convenience Store Chain TheFamilyMart convenience store chain is a natural strategic extension to QL’s existing food production and distribution portfolio, that is direct to consumer. Driven on the emphasis of convenience, QL delivers quality and nourishing ready-to-eat food through this scaleable channel. Ensuring that our wide variety of ready-to-eat offerings comply with Shariah requirements, FamilyMart’s central kitchen hold halal certification from Jabatan Kemajuan Islam Malaysia (JAKIM). As the master franchisee in Malaysia, QL operates all FamilyMart stores in the country, which to-date total 184. Please refer to Management Discussion and Analysis on page 28. Annual Report | 2020 QL Resources Berhad 2