INTEGRATED ANNUAL REPORT 2025
03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.1 SECTION 01 ABOUT THIS REPORT 2 About this Report SECTION 02 QL AT A GLANCE 3 Principal Activities 4 2025 Key Highlights 6 Our Presence SECTION 03 CHAIRMAN’S STATEMENT 8 Chairman’s Statement SECTION 04 MANAGEMENT DISCUSSION AND ANALYSIS 12 Group Chief Executive Officer’s Review 14 Strategy 16 Significant Risks & Opportunities 18 Value Creation Business Model 20 Business Review 28 Group Outlook SECTION 06 LEADERSHIP & GOVERNANCE 84 Corporate Information 86 Board of Directors 88 Profile of Board of Directors 102 Key Senior Management 103 Corporate Governance Overview Statement 112 Audit Committee Report 116 Statement on Risk Management and Internal Control 122 Additional Compliance Information 124 Statement of Directors’ Responsibility SECTION 05 SUSTAINABILITY STATEMENT 30 Overview & FY2025 Sustainability Highlights 35 Stakeholder Engagement 37 Materiality Assessment 40 Environmental Responsibility 50 Social Responsibility 69 Governance Responsibility SECTION 07 FINANCIAL STATEMENTS 126 Directors’ Report 134 Statements of Financial Position 136 Statements of Profit or Loss and Other Comprehensive Income 138 Consolidated Statement of Changes in Equity 141 Statement of Changes in Equity 143 Statements of Cash Flows 150 Notes to the Financial Statements 249 Statement by Directors 250 Statutory Declaration 251 Independent Auditors’ Report A dynamic digital line illustration of a hummingbird symbolises agility, adaptability and resilience, reflecting the company’s ability to thrive in an ever-changing business landscape. Just as the hummingbird moves swiftly and efficiently in multiple directions, the company continuously evolves with innovation and leads with cutting-edge technology. Carefully crafted symbols are integrated into the shape of the hummingbird to represent the company’s various business units, valuable resources and advanced technologies. These icons serve as a visual narrative and illustrate the company’s commitment to leveraging technological advances, optimising resources and expanding its market presence with precision and efficiency. The seamless fusion of digital elements and symbolic representations emphasises the company’s forward-thinking approach and its unwavering pursuit of sustainable growth. SECTION 08 APPENDICES 256 List of Properties 258 Shareholders’ Analysis Report 261 Disclosure on Recurrent Related Party Transactions 270 Notice of Annual General Meeting Form of Proxy INSIDE THIS REPORT 28th ANNUAL GENERAL MEETING Venue: Ballroom 1, Level 10, Courtyard by Marriott Setia Alam, No. 6, Jalan Setia Dagang AH U13/AH, Setia Alam, Seksyen U13, 40170 Shah Alam, Selangor Darul Ehsan Date: Thursday, 28 August 2025 Time: 10.00 a.m. COVER RATIONALE Driving Value Through Technology & Innovation NAVIGATION ICON Stakeholders Vendors and suppliers Investors and shareholders Media Regulators and NGOs Employees Community Customers Capital Inputs Human Capital Natural Capital Manufactured Capital Financial Capital Intellectual Capital Social Capital Business Pillars Marine Products Manufacturing (MPM) Integrated Livestock Farming (ILF) Our Growth Strategy Regional Replication Strengthening Value Chain Downstream Integration Sustainably Enhancing Performance Empowering Talents Integrating Technology Enhance Branding & Product Innovation Material Matters Water Security Climate Change Pollution and Resources Occupational Safety and Health Labour Standards Talent Management Supply Chain (Environment) Biodiversity CC PR WS Customer Responsibility Community Contributions Supply Chain (Social) Risk Management Innovation and Technology AntiCorruption Corporate Governance CC CR SCS CG AC RM IT B SCE OSH LS TM VISION To be the preferred global agro-based enterprise. MISSION Create nourishing products from agro resources, leading to benefit for all parties. OUR CORE VALUES Personality • Progressive • Trustworthy • Initiative • Humility Values • Integrity • Win-Win • Teamwork • Innovative Palm Oil and Clean Energy (POCE) Convenience Store Chain (CVS)
04 MANAGEMENT DISCUSSION AND ANALYSIS 05 06 07 08 01 ABOUT THIS REPORT SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.3 03 CHAIRMAN’S STATEMENT 03 CHAIRMAN’S STATEMENT QL AT A GLANCE 05 06 07 08 01 ABOUT THIS REPORT 04 MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.2 QL AT A GLANCE02 PRINCIPAL ACTIVITIES ABOUT THIS REPORT MPM ILF This Integrated Annual Report (IAR) presents material information on QL Resources Berhad (QL), including our business, operating environment, governance structure, as well as risks and opportunities that could affect our ability to create and share value. Our approach to value creation is anchored in our founding philosophy of “Benefit for All” (Quan Li 全 利), ensuring that our business activities generate long-term, positive impact for all stakeholders. We endeavour to provide transparent, consistent and comprehensive disclosure to enable stakeholders to make meaningful comparisons and understand our value creation process for more informed decision-making. This is in line with our commitment to reinforcing trust and our dedication to sustainable growth and responsible business practices. This report is for the financial year 1 April 2024 to 31 March 2025 (FY2025). QL operates integrated, scalable, and resource-efficient value chains that transform agro-based resources into nourishing protein sources to support a growing global population. We contribute to local food security while serving global markets through internationally certified operations in Malaysia, Indonesia and Vietnam. Our business is structured around four synergistic pillars that are complementary and contribute to QL’s economic resilience, operational sustainability and long-term value creation. We produce high-quality, nutritious and convenient marine-based products. Our integrated value chain spans aquaculture, deep-sea fishing, value-added processing, fishmeal, surimi and surimi-based production, and ready-to-cook offerings. QL is recognised as Southeast Asia’s leading producer of surimi-based food products. ILF delivers accessible, affordable, and nutritious protein through a vertically integrated value chain that comprises upstream activities of feed and raw material trading, feed milling, down to layer farming, and broiler integration. We uphold strict biosecurity protocols and adopt best practice to ensure sustainable and responsible production. REPORTING PHILOSOPHY AND PRINCIPLES We aim to provide a holistic and connected view on how we create value over time. Our IAR integrates financial and nonfinancial information, balancing stakeholder interests with our environmental, social, and governance (ESG) priorities. These are embedded into our strategic and operational decisions that drive long-term value creation. The report outlines key risks and opportunities, along with the inputs, outputs and outcomes of our activities. It connects QL’s past achievements, present performance, and future outlook, offering stakeholders insight into how our strategies are being implemented, business landscape and operating performance. Our financial statements are prepared in compliance with the Malaysian Financial Reporting Standards (MFRS) and are independently audited. In line with emerging best practices, we have also begun referencing the International Sustainability Standards Board (ISSB)’s IFRS Sustainability Disclosure Standards and have commenced preparations to report in accordance with IFRS S1 and IFRS S2. REPORTING FRAMEWORK AND GUIDANCE • Bursa Malaysia Securities Berhad Main Market Listing Requirements • Bursa Malaysia Securities Berhad Corporate Governance Guide • Bursa Malaysia Securities Berhad Sustainability Reporting Guide (3rd Edition) • Malaysian Code on Corporate Governance • International Financial Reporting Standards • Malaysian Financial Reporting Standards • Companies Act 2016 • Global Reporting Initiative (GRI) Standards • International Integrated Reporting Council (IIRC) <IR> Framework • Sustainability Accounting Standards Board (SASB) • ISSB IFRS S1 and IFRS S2 Standards • Task Force on Climate-related Financial Disclosures (TCFD) ASSURANCE To uphold the integrity of this report, assurance is provided through the following mechanisms: • Internal controls and management assurance • Internal audit and compliance • Internal assurance (limited) by Group Internal Audit Department on sustainability matters • External audit of financial information by KPMG PLT REPORTING SCOPE AND BOUNDARIES This IAR encompasses financial and nonfinancial performance of QL’s operations in FY2025, providing quantifiable metrics and qualitative outcomes. SUSTAINABILITY STATEMENT We are committed to integrating ESG principles into our strategies, decisions and operations. This report highlights our sustainability goals and progress, alignment with stakeholder expectations, and contribution to the relevant United Nations’ Sustainable Development Goals (SDGs). An internal audit of the Sustainability Statement was conducted and reviewed by the Group Internal Audit Department, resulting in the issuance of a Limited Assurance Statement on page 82. Sustainability aspects of QL’s activities and how ESG considerations affect QL’s stakeholders are disclosed where practicable. Onward reading about our sustainability practices is on pages 30 - 83. FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that reflect our current views and expectations. These statements are subject to change due to risks and uncertainties arising from future events and evolving circumstances and should not be interpreted as guarantees of future performance. Readers are advised not to place undue reliance on these statements as actual outcomes may differ to those expressed in this report. MATERIAL MATTERS QL actively engages with both internal and external stakeholders to identify matters that can materially impact the Group’s ability to create value. These are disclosed in this IAR, with more details of our Materiality Assessment provided on pages 37 - 39. APPROVAL BY THE BOARD QL’s Board of Directors (Board) recognises its duty in upholding the integrity of this IAR. We believe that the report, prepared referencing the International Integrated Reporting <IR> Framework, provides a fair and accurate representation of the Group’s performance, reflecting the material matters that influence QL’s capacity to create, preserve, or erode value over time. This report was approved by the Board on 10 July 2025. Dr. Chia Song Kun Executive Chairman Mr. Chia Song Kooi Group Chief Executive Officer POCE This pillar supports our environmental, social and governance (ESG) ambitions by offering comprehensive climate solutions, including bioenergy, renewable energy, and water treatment. In palm oil, we manage 16,000 hectares of estate land and provide milling services to independent smallholders. CVS Through FamilyMart, we deliver wholesome ready-to-eat (RTE) and readyto-cook (easily prepared) meals tailored to modern preferences. This direct-toconsumer channel enhances our food production and distribution capabilities through innovative formats such as FM Mini vending machines, halal-certified FamiCafés, and FamilyMart stores.
05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE 04 MANAGEMENT DISCUSSION AND ANALYSIS 04 MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 05 06 07 08 01 ABOUT THIS REPORT SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.4 pg.5 03 CHAIRMAN’S STATEMENT 03 CHAIRMAN’S STATEMENT QL AT A GLANCE 2025 KEY HIGHLIGHTS 2025 KEY HIGHLIGHTS Produced 1.50 billion standard protein servings Produced 22.20 million meals Installed 49.1 MWp solar & 3,100 ML water treatment capacity for business customers Derived 41.1% energy from renewable sources Diverted 94.6% waste from landfill Reduced 9.4% GHG intensity from base year Avoided 24,034 tCO2e Mangrove seedlings planted 7,000 since 2022 Obtained Marine Stewardship Council certification Maintained in FTSE4Good Bursa Malaysia Shariah Index Maintained in FTSE4Good Bursa Malaysia Index Two consecutive years Best Managed Company Malaysia, recognition by Deloitte RM17.05 billion market capitalisation Spend on local suppliers 52.1% of total procurement RM665.87 million PBT Uplifted livelihood of 777 fishermen via FFAS RM455.08 million PATAMI Impacted 16,839 lives via Corporate Philanthropy RM7.05 billion revenue Employed 13,460 locals
05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE 04 MANAGEMENT DISCUSSION AND ANALYSIS 04 MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 05 06 07 08 01 ABOUT THIS REPORT SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.6 pg.7 03 CHAIRMAN’S STATEMENT 03 CHAIRMAN’S STATEMENT QL AT A GLANCE OUR PRESENCE OUR PRESENCE 1 QL RESOURCES BERHAD QL AGRIFOODS SDN. BHD. QL FEED SDN. BHD. QL INTERNATIONAL PTE. LTD. No. 16A, Jalan Astaka U8/83, Bukit Jelutong, 40150 Shah Alam, Selangor, Malaysia. Tel : +603 7801 2288 Fax : +603 7801 2222 URL : www.ql.com.my 2 PACIFIC VET GROUP (M) SDN. BHD. QL PACIFIC VET GROUP SDN. BHD. No. 886-C8, Jalan Subang 9, Taman Perindustrian Subang, 47600 Subang Jaya, Selangor, Malaysia. Tel : +603 8024 9508 Fax : +603 8024 9634 Email : pvgmal@pacificvet.com.my 3 QL POULTRY FARMS SDN. BHD. Lot 1338/5, Pajam, 71700 Mantin, Negeri Sembilan, Malaysia. Tel : +606 758 7377 Fax : +606 758 7385 URL : www.qleggs.com 4 QL AGROFOOD SDN. BHD. QL AGROVENTURES SDN. BHD. Mile 6.5, Off Jalan Tuaran, Inanam, 88450 Kota Kinabalu, Sabah, Malaysia. Tel : +6088 422 604 Fax : +6088 421 943 5 QL AGRORESOURCES SDN. BHD. QL LIVESTOCK FARMING SDN. BHD. Tingkat 1, Sublot 2490 Fortune Land, Jalan Rock, 93200 Kuching, Sarawak, Malaysia. Tel : +6082 252 760 Fax : +6082 410 646 6 QL FARMS SDN. BHD. QL BREEDER FARM SDN. BHD. QL TAWAU FEEDMILL SDN. BHD. TB 50 & 51, Mile 5, Apas Road, 91000 Tawau, Sabah, Malaysia. Tel : +6089 917 711/ +6089 917 722/ +6089 917 733 Fax : +6089 912 045/ +6089 913 482 Email : qltawauhq@ql.com.my 7 QL ANSAN POULTRY FARM SDN. BHD. Lot 2053, MK Sidam Kanan, Kg. Paya Union, 09400 Padang Serai, Kedah, Malaysia. Tel : +604 403 2526 Fax : +604 403 4534 Lot 401, Kuala Garing, 48000 Rawang, Selangor, Malaysia. Tel : +603 6092 6193 8 PT. QL FEED INDONESIA PT. QL AGROFOOD JI. Pangkalan VI No. 100 RT. 003/RW 006 Kel. Ciketingudik, Kec. Bantargebang, Bekasi, Jawa Barat, 17153 Indonesia. Tel : +62 21 2296 7444 Fax : +62 21 3396 7437 9 QL VIETNAM AGRORESOURCES LIABILITY LIMITED CO. QL FEEDINGSTUFFS VIETNAM LIMITED LIABILITY CO. QL FARMS (TAY NINH) LIABILITY LIMITED CO. 18 Cong Hoa, Ward 4, Tan Binh District, Ho Chi Minh City (Warehouse No.6), Vietnam. Tel : +84 28384 25131/ +84 28384 28435/ +84 28384 28437 Fax : +84 28384 28434 URL : www.qlvietnam.com.vn INTEGRATED LIVESTOCK FARMING (ILF) 10 QL ECO FARM SDN. BHD. PT 4642, Kg. Sungai Klau, Mukim Gali, 27630 Raub, Pahang, Malaysia. Lot 2484, Jalan Tras, 27600 Raub, Pahang, Malaysia. Tel : +6012 811 9131/ +6017 811 9363 11 LIAN FOO POULTRY FARM SDN. BHD. 21 M/S, Air Hitam Ulu, Masjid Tanah,78300 Melaka, Malaysia. Tel : +606 556 1900 Email : lianfoopoultry@gmail.com 3 QL FIGO (JOHOR) SDN. BHD. Lot 3627, Jalan Harmoni 1, Taman Harmoni, Batu 22, 81000 Kulai, Johor, Malaysia. Tel : +607 663 7388 Fax : +607 663 6780 4 QL LIAN HOE SDN. BHD. No. 4, Jalan Penaga 9, Kawasan Perindustrian Kota Putri, 81750 Masai, Johor Bahru, Malaysia. Tel : +607 387 5745/ +607 387 5700 Fax : +607 386 1629 Email : sales@lian-hoefood.com.my URL : www.lian-hoefood.com.my 5 QL FOODS SDN. BHD. Lot 9120 & 9121, Jalan Tepi Sungai, 36400 Hutan Melintang, Perak, Malaysia. Tel : +605 641 5805/ +605 641 7954 Fax : +605 641 2257 URL : www.qlfoods.com 6 QL FISHMEAL SDN. BHD. Lot 164, 2647 & 3314, Jalan Tepi Sungai, 36400 Hutan Melintang, Perak, Malaysia. Tel : +605 641 2752/ +016 526 7365 Fax : +605 641 1042 7 PT. QL HASIL LAUT JI. Raya Deansdles KM.81.25, Desa Sedayulawas, Kecamatan Brondong-Kabupaten, Lamongan 62263, Jatim-lndonesia. Tel : +62 322 662 828 Fax : +62 322 663 222 8 KEMBANG SUBUR SDN. BHD. 58-1, Jalan Temenggung 13/9, Bandar Mahkota Cheras, 43200 Cheras, Selangor, Malaysia. Tel : +603 9011 9635/8935 Fax : +603 9011 9935 Email : info@kembangsubur.com.my MARINE PRODUCTS MANUFACTURING (MPM) 1 QL MARINE PRODUCTS SDN. BHD. QL AQUAMARINE SDN. BHD. QL DEEP SEA FISHING SDN. BHD. CL045081687, Kampung Bolong 89200 Tuaran, Sabah, Malaysia. Tel : +6088 791 866/ +6088 791 833 Fax : +6088 787 166 URL : www.qlmarine.com.my 2 QL ENDAU MARINE PRODUCTS SDN. BHD. QL ENDAU DEEP SEA FISHING SDN. BHD. QL ENDAU FISHMEAL SDN. BHD. RIKAWAWASAN SDN. BHD. No. 11, Jalan Merlimau, 86900 Endau, Johor, Malaysia. Tel : +607 794 3814/ +607 794 4087 Fax : +607 794 4088 URL : www.qlendau.com.my PALM OIL AND CLEAN ENERGY (POCE) 1 BM GREENTECH BERHAD HEAD OFFICE: Lot 875, Jalan Subang 8, Taman Perindustrian Subang, 47620 Subang Jaya, Selangor Darul Ehsan, Malaysia. Tel : +603 8023 9137 Fax : +603 8023 2127 URL : www.bmgreentech.com 2 PT. PIPIT MUTIARA INDAH JI. Slamet Riady RT, 26/123, Tarakan, Kalimantan Utara. Tel : +62 551 24 328 Fax : +62 551 32 667 3 QL OIL SDN. BHD. QL PLANTATION SDN. BHD. QL TAWAU BIOGAS SDN. BHD. TB 50 & 51, Mile 5, Apas Road, 91000 Tawau, Sabah, Malaysia. Tel : +6089 917 711/ +6089 917 722/ +6089 917 733 Fax : +6089 912 045/ +6089 913 482 Email : qltawauhq@ql.com.my 1 QL CONVENIENCE RETAIL SDN. BHD. QL MAXINCOME SDN. BHD. QL KITCHEN SDN. BHD. QL FRESH CHOICE SEAFOOD SDN. BHD. No. 16A, Jalan Astaka U8/83, Bukit Jelutong, 40150 Shah Alam, Selangor, Malaysia. Tel : +603 7801 2288 Fax : +603 7801 2222 URL : www.ql.com.my CONVENIENCE STORE CHAIN (CVS) MALAYSIA VIETNAM INDONESIA 7 7 2 3 10 11 4 6 5 1 1 6 5 1 2 3 4 1 8 8 2 7 9 3
03 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT 03 CHAIRMAN’S STATEMENT 04 MANAGEMENT DISCUSSION AND ANALYSIS 04 MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.8 pg.9 CHAIRMAN’S STATEMENT Delivering Value Across Business Pillars QL turned in another resilient year for the financial year ended 31 March 2025. Year-on-year (YOY) revenue increased to RM7.05 billion, up RM395.64 million to breach the RM7 billion mark for the maiden time. Profit before tax (PBT) meanwhile was recorded at RM665.87 million, a RM39.34 million increase. The performance underscores our diversified model and integrated value chain. Our four business pillars of MPM, ILF, CVS and POCE are distinct yet complementary, and they enable QL to capture synergies, optimise supply chain efficiencies, and adapt to evolving market conditions. The Business Review section provides a more detailed reading about our strategy execution, operational developments and financial performance by business pillar. In addition to economic metrics, which are important for any business, we take into consideration ESG matters into our overall value creation process. This holistic approach to the value creation process resulted in QL retaining our recognition as one of the Best Managed Companies for the second year running by Deloitte. We were evaluated on four core pillars – strategy, capabilities and innovation, culture and commitment, as well as governance and financials – by a panel of independent and multidisciplinary judges. Strengthening Our Contribution to National Priorities We continue to play our role in national food and energy security. QL produced 1.50 billion standard protein servings and served up 22.20 million meals in FY2025, to help meet daily nutritional needs. We also aligned our actions with the country’s energy transition and climate ambitions. From investing in solar energy capacity at key production sites and expansion of capability offerings to promoting energy-efficient solutions, QL is playing a meaningful role in Malaysia’s journey towards a low-carbon, climate-resilient economy. Through our subsidiary, BM GreenTech Berhad (BM GreenTech), we achieved a record 49 MWp in installed capacity for residential and business customers in FY2025. Advancing Our Sustainability Agenda In FY2025, we made meaningful strides in environmental and social outcomes as we continue to integrate ESG considerations into our operations. We believe that setting targets alone is not enough. It must be followed through by accountability and concrete actions to bring real impact. To this end, we reinforced our sustainability commitments by linking ESG key performance indicator (KPI) targets, specifically greenhouse gas (GHG) intensity and Lost Time Injury Frequency Rate (LTIFR) reduction targets, to executive directors’ and senior management remuneration. This move made ESG core to how we operate and reward performance. Our inclusion in the FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index validated our approach and has encouraged us to push further. We have begun preparations for IFRS S1 and S2 standards to deepen integration of climate-related disclosures and risk management into business decisions, reinforcing our long-term resilience. The integration of ESG and enterprise risk management has helped enhance our ability to anticipate and respond to emerging issues, including supply chain disruptions, regulatory changes, and climaterelated risks. Certifications such as the Marine Stewardship Council certification and the rollout of ILF’s Laboratory Information Management Systems further elevated our product quality, traceability, and compliance with global standards. We made progress in our GHG intensity reduction towards our target, improvement in LTIFR over the previous year, water withdrawal intensity reduction and tCO2e avoidance, among others. Training hours has also exceeded the targets set. Pages 30 - 83 provide the details of our sustainability performance. We are committed to advance in areas such as circularity, waste recovery, and biosecurity as well. The pursuit of responsible and sustainable growth is in step with our name – Quan Li, meaning “value for all”. CHAIRMAN’S STATEMENT DR. CHIA SONG KUN Executive Chairman FY2025 presented another year of both opportunity and challenge. Economic growth globally remained moderate, weighed down by geopolitical tensions, persistent core inflation, tighter monetary policy, uncertain trade flows, volatile commodity prices, and increasingly erratic weather patterns. Navigating this challenging landscape, QL remained focused on being a reliable provider of affordable, high-quality sources of protein to nourish society. Guided by our 4C approach and executing with discipline, we progressed on our promise to deliver value for stakeholders through our integrated value chains. Dear Shareholders,
03 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT 03 CHAIRMAN’S STATEMENT 04 MANAGEMENT DISCUSSION AND ANALYSIS 04 MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.10 pg.11 Strategic Priorities: Efficiency, Access and Innovation We sharpened our focus on key priorities to build long-term value. Central to this is cost discipline, supported by automation, enhanced procurement strategies, and operational excellence. We advanced our structured, threephase digital transformation roadmap with progress across the operations. Key upgrades to enterprise systems and process automation are laying the groundwork for a digital backbone that improves traceability, responsiveness, and decision-making throughout our businesses. ERP system upgrades have begun at MPM and will be extended to ILF too. Concurrently, we are deploying realtime monitoring and streamlined farmto-lab processes to improve livestock management while the upcoming rollout of an upgraded enterprise sales application will boost supply chain responsiveness. Our goal is a fully integrated digital ecosystem capable of supporting future innovations such as generative AI for smarter, more autonomous operations. At QL, acting on foresight with innovation is one of our core strengths. Our expansion into the clean energy sector proved to be a strategic move. In January, BM GreenTech was reclassified under Bursa Securities’ new Renewable Energy subsector, underscoring our commitment to scalable sustainable solutions that align with both environmental and economic objectives. To increase access to nutrition and increase touchpoints to serve a wider customer base, we launched the QL Day 1 Eggs programme, a direct farmto-home initiative. Simultaneously, we are accelerating brand building and visibility efforts. From MPM and ILF to CE, we are strengthening our brand presence while actively defending the strong equity of FamilyMart in CVS through innovative RTE offerings. I am delighted to update that we have teamed up with the world no. 1 badminton doubles pair, Goh Sze Fei and Nur Izzuddin, who are better known as ‘FeiDin’, to boost awareness of our branded eggs. As we ramped up technology integration, we are equally focused on developing and empowering the people behind our success. Talent development, knowledge transfer, and succession planning remained a primary agenda for leadership and business continuity. We structured and formalised our C-level leadership lineup with defined roles, improving the streamlining of business pillars and operations. We invested in capability-building programmes with tertiary institutions, strengthened employee engagement, and continued to foster a safe, inclusive workplace that reflects QL’s values. In FY2025, we introduced the key management share grant scheme to incentivise and retain high-calibre employees aligned with QL’s long-term goals. This structured commensuration prepares QL for the next generation of leadership who will helm our next phase of growth. Governance and Stewardship in a Shifting Landscape The Board continued to provide clear oversight and guidance amid a rapidly evolving regulatory and risk environment. We maintained strong governance practices and actively engaged with management on strategy, risk mitigation, and stakeholder expectations. Acting with honesty and integrity, fulfilling our promises, and staying true to our principles is QL’s foundation for sustainable value creation. In February 2025, we formalised a standalone Conflict of Interest Policy and Procedure applicable to all directors and key senior management across the Group. It outlines a clear framework for the timely identification, disclosure, and management of actual or potential conflicts of interest to safeguard QL’s interests. The Audit Committee reviewed the declarations submitted during the year and confirmed they were in full compliance with the policy. We also reinforced our commitment to managing ESG risks throughout our supply chain. We updated our Code of Business Ethics for Suppliers and Business Associates with clearer expectations on environmental accountability and impact mitigation, as well as resource efficiency. To support implementation, a self-assessment was introduced for identified high-risk suppliers. Progress had also been made in our commitment to advancing workplace safety towards ISO 45001:2018 Occupational Health and Safety (OSH) Management System certification across our operating entities. BM GreenTech became the third entity to now hold ISO 45001:2018 certification through LRQA in FY2025. Effective management of safety risks and opportunities is essential to maintaining a safe and healthy workplace. To this end, QL adopts the Department of Occupational Safety and Health (DOSH) Guidelines for Hazard Identification, Risk Assessment, and Risk Control (HIRARC). Taking a proactive approach to this, HIRARC assessments are conducted regularly for ongoing operations and are mandated prior to new projects, equipment procurement, material or process changes, and major organisational shifts. This ensures potential hazards are identified and mitigated early. Our governance practices can be read on pages 103 - 111. Navigating Forward with Caution and Conviction FY2025 was marked by both macroeconomic headwinds and sectorspecific shifts, including subsidy reform, trade frictions, and currency volatility. These developments tested the resilience of many industries, including ours. The business environment ahead is shaping up to be one filled with challenges and increasing unpredictability. Geopolitical conflicts, evolving consumer behaviours and anticipated tightening of monetary and regulatory policies will continue to test our agility. The complexity of today’s landscape calls not only for acumen, but also for our adaptability, foresight, and focused execution. QL’s business model which is anchored in the production and supply of staple food, proved its resilience. The inelastic demand for basic proteins, combined with our diversified yet integrated operations across regions and segments, enable us to maintain operational stability and meet stakeholder expectations. We will continue to leverage technology, and our strengths in talent, brand, and sustainability as enablers of long-term competitiveness and value creation. Our digital transformation is key to this. By connecting data, systems, and people, we are building the foundation for better execution and more responsive decision-making. Over time, automation, advanced analytics and AI will enhance our ability to scale, adapt and innovate, overall strengthening our operational edge. Navigating forward with caution and conviction means staying disciplined in execution while keeping our eyes firmly on the long view: creating value for all stakeholders. Our integrated model with expansion into adjacent industries such as renewable energy, positions us to better manage cost pressures, and ensure a more stable pricing in the midst of external volatility. Appreciation and Acknowledgments On behalf of the Board, I extend my heartfelt thank you to our board members, management, shareholders, partners, regulators and customers for their continued trust in our shared value creation. In a year of growing complexity, it was our progressive and grounded people who kept us anchored, and I record a special thanks to the dedicated, adaptable and committed employees of QL. On behalf of the Board and management, I would like to record our appreciation to Datin Paduka Setia Dato’ Dr. Aini Binti Ideris, who retired from the Board after completing her nine-year tenure as an Independent Director. We are grateful for her insights, subject-matter expertise, and contribution to expanding QL’s network of talent and knowledge. As we look ahead, our 4C approach in our strategy will be our compass as we continue to act with discipline, responsibility, and shared purpose of nourishing lives sustainably and grow enduring value, true to the spirit of Quan Li. We have begun preparations for IFRS S1 and S2 standards to deepen integration of climaterelated disclosures and risk management into business decisions, reinforcing our long-term resilience. We introduced the key management share grant scheme to incentivise and retain high-calibre employees aligned with QL’s long-term goals. QL produced 1.50 billion standard protein servings and served up 22.20 million meals in FY2025, to help meet daily nutritional needs. CHAIRMAN’S STATEMENT CHAIRMAN’S STATEMENT
03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.12 pg.13 Revenue (RM million) PBT (RM million) 7,047.74 665.87 Staying true to our mission continues to position QL as a trusted name in food security across Southeast Asia. We remain the region’s leading producer of surimi-based food products, a top egg producer in our core markets, and the master franchisee of FamilyMart in Malaysia. We are also building our forte in the ready-to-cook food segment. Each of these businesses play a central role in delivering accessible and nutritious food. Beyond agri-food, we expanded our clean energy capabilities through our subsidiary, BM GreenTech’s strengthened platform to contribute meaningfully to sustainable progress across industries and communities. QL’s business model is deeply aligned with global sustainability goals, and is grounded in responsible resource utilisation and circular economy principles. By integrating operations across the value chain, we minimise waste and extend the lifecycle of resources, turning by-products into new value streams. For example, organic waste from our surimi processing operations is repurposed into fishmeal for aquaculture, while chicken dung from our livestock farming is processed into organic fertiliser. This closedloop approach not only reduces our environmental footprint but also creates economic and social value, reinforcing QL’s resilience and commitment to sustainable agri-food production. Innovation is at the heart of our growth strategy. We continued to invest in technology and research and development (R&D) to enhance our capability to produce higher value products and introduce new product ranges. Differentiated marketing and branding initiatives such as QL Day 1 Eggs, a farm-to-home delivery model, are helping to raise visibility. Meanwhile, our ongoing digitalisation provides us real-time and accurate data for analysis and insights to improve efficiency and resource planning. Through our strong regional presence and synergistic operations, we delivered a resilient performance across all four business pillars. This reflects the robustness of our value chain and adaptability. In the MPM segment, surimi saw good performance despite challenges in upstream activities with headwinds of soft demand and lower selling price. Our continued expansion of ready-to-cook offerings with new production lines, alongside rampedup marketing efforts supported performance. The ILF pillar remained a key earnings contributor, attributable to strong feed trading performance, lower feed costs, and government subsidies in the frame of ceiling price mechanism. The CVS segment continued expanding its FamilyMart network, including halal-certified FamiCafé outlets and FM Mini vending machines while sustaining average daily sales. The POCE segment saw transformative growth through an acquisition that expanded our clean energy capabilities and complementary climate solutions to support Malaysia’s low-carbon transition agenda. Collectively, our performance in FY2025 reflects the strength of QL’s integrated business model, disciplined execution, and targeted investments in innovation and sustainability. As QL continues to evolve with market demands and regional developments, we remain anchored in our purpose of delivering long-term value while contributing to food security, renewable energy adoption, and responsible resource stewardship. GROUP CHIEF EXECUTIVE OFFICER’S REVIEW 6,242.64 6,652.10 7,047.74 FY23 FY24 FY25 480.83 626.53 665.87 FY23 FY24 FY25 MR. CHIA SONG KOOI Group Chief Executive Officer The financial year ended 31 March 2025 unfolded against a backdrop of subdued global economic growth, but with Southeast Asia showing resilience. A busy global election cycle contributed to shifts in market sentiment, while the USD-MYR foreign exchange (forex) volatility bore down on cost structures and revenue conversion. For an agri-food producer such as QL, the environment presented both challenges and opportunities. Throughout FY2025, QL remained committed to our mission to nourish communities by being a reliable provider of affordable, highquality sources of protein. Guided by principles of responsible and integrated production, we navigated a dynamic market landscape while delivering value to consumers, partners, and stakeholders. QL proactively managed costs, mitigated risks, and pursued strategic expansion to achieve a revenue of RM7.05 billion and a PBT of RM665.87 million. Profit after tax and minority interests (PATAMI) reached RM455.08 million, representing a 3.9% YOY increase. GROUP CHIEF EXECUTIVE OFFICER’S REVIEW
03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.14 pg.15 STRATEGY STRATEGY OUR STRATEGY TO DRIVE VALUE THROUGH TECHNOLOGY AND INNOVATION In a world with a growing need for food and energy, QL contributes to these two sectors through continuous innovation and by prioritising talent and technology. These two sectors are age-old businesses with plenty of competition. To stand out, QL is guided by the “purple ocean” concept, which drives us to create new avenues, and niches in our product portfolio to meet growing market needs. Our strategic framework outlines how QL grows and what core competencies will accelerate the plan. We take a long-term view, capitalising on opportunities and mitigating potential risks, as we utilise and manage capitals responsibly to provide nourishing food and climate solutions for society. The outcome is a win-win where value is created and shared. STRATEGIC BUSINESS GROWTH 4C APPROACH STRENGTHENING CORE COMPETENCIES 01 Conserve Consolidate and optimise to unlock and enhance value • Maintain number of fishing vessels • Continue investing in regional ILF operations in Vietnam • Roll out farm management system across ILF • Divest and restructure POA businesses 02 Continue Nurture and expand existing successful businesses • Scale raw materials trading • Streamline and modernise feedmill operations in Malaysia • Identify potential feedmill acquisition in Vietnam • Adopt a new approach for shrimp aquaculture 03 Core Focus Prioritise and invest in core competencies to excel in identified segments and markets • Expand capacity and range of value-added food products • Evolve and grow CVS touchpoints to solidify preference as a truly ‘daily convenience store’ • Expand climate solutions capability and portfolio 04 Cultivate Explore and develop new business opportunities for future growth • Widen food manufacturing integration to increase RTE supply to more channels • Explore synergistic food business • Develop clean energy assets • Build up AI solutions for business use 01 Sustainably Enhancing Performance Embed responsible practices to generate positive value for economy, environment, and society • Continue and strengthen regular biosecurity measures and audits • Integrate farm-to-lab processes for proactive and responsive data-driven actions • Adopt DOSH-recommended HIRARC template across business units for risk management and safe workplaces • Extend the use of renewable energy at operation sites 02 Integrating Technology Leverage digital tools and technology to improve efficiency and decision-making • Roll out ERP system modernisation • Automate data collection to improve data quality • Strengthen data foundation via integrated Data Warehouse for improved reliability • Upgrade and streamline knowledge management applications for information harmonisation and retention 03 Empowering Talents Develop a thriving workforce with a culture of innovation and excellence, grounded in QL values • Evolve organisational structure to pave the way for skills adaptation • Streamline processes to enhance crossfunctional collaboration between teams and operations • Equip employees with analytical and system-specific skills • Promote continuous learning 04 Enhance Branding and Product Innovation Drive innovation through R&D and build trusted, resilient brands through certifications for quality and safety • Maintain food quality and safety certifications • Intensify branding via differentiated approaches • Increase visibility of QL-branded eggs and marine food products • Diversify distribution channels for wider reach • Continuously innovate and expand product range to meet evolving lifestyles 01 Regional Replication Identify and replicate successful core business activities regionally 03 Downstream Integration Expand reach and product portfolio to serve new market segments and consumers directly 02 Strengthening Value Chain Strengthen our competitive advantage by integrating vertically and adjacent value chains We actively pursue new opportunities to broaden our reach and impact guided by our “purple ocean” strategy to drive sustainable growth. We allocate resources to optimise value creation through three growth models that are executed via a 4C Approach. In FY2025, QL invested about RM300 million or 4.3% of revenue to grow our businesses strategically. We continuously improve operational efficiency and risk management to maintain our competitive edge. Our business objectives are facilitated by four key enablers and we focus on reinforcing these enablers for long-term resilience.
03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.16 pg.17 SIGNIFICANT RISKS & OPPORTUNITIES SIGNIFICANT RISKS & OPPORTUNITIES MARKET RISK The risk is driven by events such as trade wars, wars and disputes arising from global, regional and domestic politics. Recently, the level of uncertainties had increased significantly due to the frequent policies changes by U.S which can sometimes be disruptive. This may potentially lead to: • Adverse impact on economy in general • Disruption of global supply chain, hence food insecurity (i.e. shortages & price escalation) • Negative consumer sentiments toward certain business segments affecting their choice of products • Volatile foreign currency fluctuation & commodity pricing environment Mitigation Measures • Close monitoring of global & regional events through various channels and conduct swift assessment and respond where appropriate • Regular management meetings are held to review market data, deliberate on the current events and making commodity trading and currency related decisions • Diversification of market and source of key supplies where necessary • Hedging process is in place to mitigate any impact that may arise from foreign currencies fluctuation Opportunities • Reduced reliance on any single region and leveraging alternative supply sources can lead to long term cost savings and mitigate suppliers concentration risk • Opening up new markets to capture growth opportunities and attract new business partners • Increased adoption of business intelligence (BI) tools, fostering data-driven decision making culture and agile management style that is responsive to changes in the macroenvironment Material Matters Stakeholders Capital Inputs ENVIRONMENTAL RISK Mitigation Measures • Close monitoring and strict compliance with relevant regulations including Environmental Quality Act, 1974 • Continuously reviewing and enhancing fishing vessels’ facility and technology in order to improve the catch rate • Diversifying to alternative ingredients Opportunities • Capitalising on QL’s subsidiary i.e. BM GreenTech’s industry leading capabilities to build & implement environmental solutions internally and for other businesses, expanding into a new revenue stream for QL • Developing new food products range with alternative ingredients to capture new market Material Matters Stakeholders Capital Inputs COMPLIANCE RISK Halal Compliance Halal certification attests that a product manufactured in full compliance with the precepts of Islamic Law. Halal noncompliance will affect the Group’s reputation and lead to loss of business. Bribery However unlikely it is in the industries QL is operating in, any bribery incident risk stiff penalties. In addition, it could have serious impact on Group’s reputation and business growth. Mitigation Measures • Implementation and development of Halal Assurance Management System (HAMS) and adherence to JAKIM requirement • Regular internal reviews and external audits • Halal awareness training are periodically provided to employees • Complying fully with the Group’s Anti-bribery Framework and related regulatory requirements • All the employees including directors are required to acknowledge and abide by the employees code of conduct • Periodic anti-bribery awareness training & communications are provided to all the employees Opportunities • Strengthen market position and expand access in markets that prioritise Halal-certified products including overseas market • Fostering a culture of integrity and ethical behavior leads to better employee engagement and morale Material Matters Stakeholders Capital Inputs FOOD SAFETY RISK Food production processes are exposed to various sources of contamination which may be caused by factors such as hygiene, quality of input material, pest etc. Lack of proper food safety standards could affect the Group’s reputation and lead to sales & financial losses. Mitigation Measures • Adoption of various food quality and safety certifications across industries such as HACCP, GMP, MeSTI, Halal and FSSC 22000, ISO22000, myGAP and Fish Quality Certificate • Regular internal and external audits • The use of technology to minimise human contact as well as to detect potential product contamination Opportunities • Continuous enhancement of food safety standards to retain consumer trust and loyalty • Increased adoption of automation & technology to reduce human contact and minimise contamination further improves operational efficiency and food safety standards Material Matters Stakeholders Capital Inputs RM OPERATIONAL RISK Disease Disease outbreak is an industry risk which may lead to lower productivity, and higher mortality rate, leading to losses in poultry farms and aquaculture. Power Failure Any interruption or loss of electricity supply to major equipment can cause high mortality in chicken houses, leading to losses in poultry business. Public Perception Risk Negative publicity or unfavorable commentary made sensational in the public domain in worst case scenario may lead to unwanted consumer backlash including boycotts of specific brands or products. Mitigation Measures • Robust biosecurity monitoring and response mechanism covering activities such as vaccination, regular serology testing, PCR test on chicken and environment to detect presence of pathogen • Periodic compliance audit to ensure that farms uphold biosecurity procedures • Periodic training to ensure high level of biosecurity awareness and culture among employees • Setup internal standards for electrical system with redundancies to mitigate unplanned outage • Robust preventive maintenance to the electrical system and testing functionality of the power generator • Implementation of periodic drills in order to respond appropriately during emergency • Close monitoring of public news, market trends, internal sales data and customer feedback to enable early detection, intervention and resolution of issues. Also, crisis management framework is in place to minimise impacts during critical events Opportunities • Continually enhancing robust, high-standard biosecurity protocols could establish QL’s unique competitive advantage Material Matters Stakeholders Capital Inputs IT SECURITY RISK Poor IT risk management may introduce vulnerabilities such as data security breaches, operational disruptions, potential intrusion/attacks, (e.g. ransomware, phishing & malware). Thus, adversely affect the Group’s reputation, business and financial loss. Material Matters Stakeholders Capital Inputs Mitigation Measures • Continuous enhancement of Group-wide IT Security governance • Introduction of new ERP system • Implementation of program and initiatives such as intrusion detection & prevention, disaster recovery program & periodic penetration test Opportunities • Robust IT security measures can enhance trust and confidence of stakeholders • Continuously modernising IT infrastructure enhances data analytics and insights, while supporting business growth and future scalability CC SCE CR RM CR IT RM WS PR SCS CC RM SCE CR SCS CG AC RM CR SCS RM Failure to comply with the environmental legislation (e.g., biodiversity impacts, air emissions and waste discharges, etc.) may lead to fines and penalty, reputational damage and adversely impact surrounding environment. In addition, the Group’s fishery units are faced with situation of potential depleting fish resources where occurrences of low fish cycle could be caused by climate change. Note: Climate risk assessment had identified exposure to physical and transition risks which are discussed in the Sustainability Statement’s Climate Change section on page 41.
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