Sin Heng Chan (Malaya) Berhad (“our Group”) is principally involved in two core business segments. First, the Group is engaged in the cultivation of oil palm plantations and sale of Fresh Fruit Bunches (“FFB”). As at 31 December 2019, our Group has a plantation landbank on mineral soil of approximately 10,997 hectares in Sarawak. For the FY 2019, this business activity accounts for 54% of the Group’s revenue.
The Group’s second core business activity includes the engineering, procurement, and construction of district cooling systems, the supply of cooling energy from district cooling systems and related activities, and the provision of energy and facility management services. It is involved in the supply of chilled water to designated buildings and shared facilities within the Pagoh Education Hub, Johor, and the Dataran Pahlawan Megamall Melaka. For FY 2019, this energy and facility management segment contributed to 46% of the Group’s revenue. This segment provides the Group with a steady and recurring stream of income and reduces the Group’s reliance the current oil palm plantation business, which is cyclical and highly dependent on crude palm oil (“CPO”) prices which are driven by several factors beyond the Group’s control.
Moving forward, our Group continues to prospect for growth opportunities that provide new sustainable income streams, thereby providing value for our esteemed shareholders.