Chairman's Statement

I am pleased to report that QL continues

to deliver a strong performance in 2009.

RESULTS

Turnover of RM1.397 billion (2008 : RM1.306 billion)

up 7% on last year. Pre-tax profit of RM110 million (2008

: RM96 million) up 15% on last year. Earnings

per share were 27 sen (2008 : 24 sen) representing

a growth of 13%.

DIVIDENDS

The board recommended a final dividend of 7 sen

(single tier) per share. (2008 : 6.5 sen - single tier)

This is in line with QL's minimum dividend payout

policy of 25%.

HIGHLIGHT ON GROUP DEVELOPMENT

I would like to highlight some significant developments in

our three core activities during the financial year 2009.

Marine Products Manufacturing (MPM)

We have incorporated a subsidiary in Indonesia `PT QL

Hasil Laut' which is based in Surabaya. The principal

activity is seafood processing and marine products

manufacturing. Although we have received our

Investment Certificate for the Surabaya project,

the construction of the surimi plant will only commence

when all relevant approval has been obtained for the

project.

The Group has completed the acquisition of the following minority interest during the year:

a

20% equity interests in QL Fresh Choice Seafood Trading Sdn Bhd;

b

27.27% equity interests in Figo Food Sdn Bhd;

c

2.4% equity interests in QL Fishmeal Sdn Bhd and QL Foods Sdn Bhd;

We have also increased our equity interests in QL Endau Marine Products Sdn Bhd by 3.57% from 62.32% to

65.89%.

Integrated Livestock Farming (ILF)

During the year we have completed the acquisition of Heap Loong Poultry Farm Sdn Bhd (now known as

QL Ansan Poultry Farm Sdn Bhd). In addition to improve efficiency, we have merged our poultry farms in Rawang and

Kulim. Our effective equity stakes in these farms was also increased by 5% (from 80% to 85%).

Our proposed Vietnam integrated poultry project has been deferred due to the current world-wide economic

slowdown.

Palm Oil Activities (POA)

Due to excessive rainfall (`La Nina'), there is a lagged in our planting program in Indonesia. The planted acreage is

about 13,000 acres as at June 2009 and subject to weather conditions, we shall speed up our planting program.