Sarawak Plantation : Annual Report 2023

Cover Rationale

The cover features our

emblematic logo.

The Company navigated

challenges with transparency, embraced sustainability and remained laser-focused on its strategic goals.

02 Corporate Profile

03 Corporate Information

04 Vision

05 Mission

06 Corporate Values

07 5 Years Financial Highlights

08 Corporate Structure

1. Organisational Structure
2. Board Of Directors

16 Conflict Of Interest

18 Key Management Personnel

21 Message To Our Shareholders

25 Management Review & Analysis By The Executive Director

39 Financial Review By

The Chief Financial Officer

45 Sustainability Statement

77 Audit Committee's Report

80 Corporate Governance Overview Statement

88 Statement On Risk Management And Internal Control

1. Statement On Directors' Responsibility For Preparing The Annual Financial Statements
2. Financial Statements

174 Analysis Of Shareholdings

178 Other Compliance Information

182 Top 10 Properties

1. Cautionary Statement Regarding Forward Looking Statements
2. Notice Of Annual General Meeting

189 Form Of Proxy

CORPORATE PROFILE

Sarawak Plantation Berhad ("SPB") was incorporated in Malaysia on 28 October 1997 as a private limited company under the name of Sarawak Plantation Sdn. Bhd. and commenced business in the same year. SPB was converted into a public company on 1 February 2000 and assumed its present name.

The Group is principally engaged in the cultivation and processing of oil palm into crude palm oil and palm kernel. Other businesses include seed production, cattle integration, laboratory services, marketing services and property investment.

SPB is one of the pioneer players in the oil palm industry in Sarawak. Currently the Group has a total land bank of 42,182 hectares ("ha"), with a total plantable area of 35,400 ha and 412 ha (planted 405 ha) under a joint venture development with a government statutory body.

The Group also owns and operates 2 palm oil mills with a total operating capacity of 140 metric tonne per hour ("mt/hour"), located at Niah and Mukah, respectively.

Details of the Group's business and operations are contained in the Management Review & Analysis by the Executive Director section of this Annual Report.

02	SARAWAK PLANTATION BERHAD | ANNUAL REPORT 2023

CORPORATE INFORMATION

BOARD OF DIRECTORS

Executive Chairman

Datuk Amar Abdul Hamed bin Sepawi

Executive Director

Dato Wong Kuo Hea

Non-IndependentNon-Executive Director

Datu Hasmawati binti Sapawi

Independent Non-Executive Directors

Brigadier General Dato' Muhammad Daniel bin Abdullah (Retired)

Dato Chia Chu Fatt

Dato Awang Bemee bin Awang Ali Basah

Company Secretary

Trina Tan Yang Li (0666-KT032)

SSM Practicing Certificate No. 202008004432

Registered Office

8th Floor, Wisma NAIM, 2½ Mile, Rock Road, 93200 Kuching, Sarawak, Malaysia.

Tel: [phone] Fax: [phone]

Email: [e-mail]

Business Office

Wisma SPB, Lot 1174, Block 9,

MCLD Miri Waterfront, Jalan Permaisuri, 98000 Miri, Sarawak, Malaysia.

Tel: [phone] Fax: [phone]

Email: [e-mail]

Company Website

www.spbgroup.com.my

Share Registrar

TRICOR INVESTOR & ISSUING HOUSE SERVICES SDN. BHD.

Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South No.8,

Jalan Kerinchi, 59200 Kuala Lumpur.

Tel: [phone] Fax: [phone]

Email: [e-mail]

Auditors

KPMG PLT (LLP0010081-LCA & AF0758)

Level 2, Lee Onn Building,

Jalan Lapangan Terbang,

93250 Kuching, Sarawak, Malaysia.

Tel: [phone]

Principal Bankers

AMBANK (M) BERHAD

No. 162, 164, 166 & 168,

1st Floor, Jalan Abell, 93100 Kuching P.O. Box 3240, 93762 Kuching, Sarawak, Malaysia.

Tel: [phone]

CIMB BANK BERHAD

1st Floor, Lot 2691-2, Block 10 KLCD, 3rd Mile, Rock Road, 93200 Kuching, Sarawak, Malaysia. Tel: [phone]

Stock Exchange Listing

MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD

on 28 August 2007 Sector: Plantation Stock Code: 5135 Stock Name: SWKPLNT

SARAWAK PLANTATION BERHAD | ANNUAL REPORT 2023

03

Vision

TO BE A FULLY

INTEGRATED HIGH

PERFORMING

ENTERPRISE

WITH DIVERSIFIED

BUSINESSES

04	SARAWAK PLANTATION BERHAD | ANNUAL REPORT 2023

Mission

WE MAXIMISE

STAKEHOLDERS' VALUES THROUGH SUSTAINABLE DEVELOPMENT BY ACTIVELY ENGAGING THE BEST BUSINESS PRACTICES

SARAWAK PLANTATION BERHAD | ANNUAL REPORT 2023

05

CORPORATE VALUES

INTEGRITY…

TRUSTWORTHY AND

ACCOUNTABLE

PROFESSIONALISM...

ETHICAL APPLICATION

OF KNOWLEDGE

EXCELLENCE &

RESULT ORIENTED...

ALWAYS BE DRIVEN TO

ACHIEVE RESULTS

BEYOND STAKEHOLDERS'

EXPECTATIONS

TEAM SPIRIT...

RESPECT AND SHARING

WE STAND BY HIGH MORAL VALUES AND PRINCIPLES, EMPHASISING TRANSPARENCY IN ALL OUR CONDUCT, BEING FAITHFUL AND HONEST, AND BEING ACCOUNTABLE AND TAKING FULL RESPONSIBILITY FOR OUR BUSINESS DECISIONS AND RESULTS.

WE STRESS ON ETHICAL CONDUCT IN THE DISCHARGE OF OUR DUTIES, ENSURING HIGH QUALITY SERVICE BOTH WITHIN AND OUTSIDE THE ORGANISATION.

WE ARE RESULT ORIENTED, SETTING HIGH PERFORMANCE STANDARDS FOR OURSELVES. WE FOCUS ON OUTCOMES AND ACHIEVEMENTS, DELIVERING SUPERIOR PERFORMANCE TO STAKEHOLDERS THROUGH SUSTAINABLE DEVELOPMENT, HENCE BUILDING A SOCIALLY RESPONSIBLE ORGANISATION.

WE RESPECT EACH OTHER AND RECOGNISE CONTRIBUTIONS BY EACH INDIVIDUAL. WE ENCOURAGE EFFECTIVE WORKING RELATIONSHIPS VIA AN ENVIRONMENT WHICH ENCOURAGES MUTUAL SUPPORT AND CARE, CO-OPERATION AND SHARING OF KNOWLEDGE AND EXPERIENCE.

INNOVATIVE...

GROWING THROUGH CHANGE

AND MOVING AHEAD	WE ENCOURAGE CREATIVITY IN OUR BUSINESS
OF THE TIMES	TO PRODUCE SIGNIFICANT ORGANISATIONAL
	IMPROVEMENTS, WE WELCOME NEW IDEAS AND BELIEVE
	IN BEING FORWARD LOOKING IN OUR BUSINESS.

06	SARAWAK PLANTATION BERHAD | ANNUAL REPORT 2023

5 YEARS FINANCIAL HIGHLIGHTS

Year	2023	2022	2021	2020	2019
Revenue (RM'000)	570,677	710,912	790,524	465,750	347,528
Profit before tax (RM'000)	87,443	134,213	168,391	83,055	28,409
Profit attributable to owners
of the Company (RM'000)	64,443	96,713	127,826	61,421	20,918
Total assets (RM'000)	954,664	950,677	974,683	878,007	833,996
Net assets (RM'000)	748,541	712,002	671,095	585,124	552,033
Total equity attributable
to owners of the	748,541	712,002	671,095	585,124	552,033
Company (RM'000)
Total number of shares ('000)	280,000	280,000	280,000	280,000	280,000
Net assets per share (RM)	2.68	2.55	2.40	2.09	1.97
Basic earnings per share (sen)	23.1	34.7	45.8	22.0	7.5
Dividend per share (sen)	10.0	15.0	20.0	10.0	5.0
Gearing (%)	1	2	10	18	22

SARAWAK PLANTATION BERHAD | ANNUAL REPORT 2023

07

CORPORATE STRUCTURE

Investment Holding

100%

100%

100%

SARAWAK PLANTATION AGRICULTURE DEVELOPMENT SDN BHD

Cultivation of oil palm and processing of fresh fruit bunches

SARAWAK PLANTATION PROPERTY HOLDING SDN BHD

Property investment

TELLIANA OIL PALM SDN BHD

(Inactive)

100%

70%

60%

SARAWAK PLANTATION SERVICES SDN BHD

Provision of management,

marketing, agronomic and consultancy services

SPB PPES KARABUNGAN PLANTATION SDN BHD

Cultivation of oil palm

SPB PELITA SUAI

SDN BHD

(Inactive)

08	SARAWAK PLANTATION BERHAD | ANNUAL REPORT 2023