002 - ql.listedcompany.com

1 002 Principal activities 004 Group corporate structure 006 5 years financial summary 007 Corporate information 008 Board of directors 010 Board of directors' profile 017 Key senior management 018 Chairman's statement 021 Management discussion and analysis 028 Audit committee report 031 Corporate governance overview statement 034 Statement of directors' responsibility 035 Statement on risk management and internal control 038 Sustainability statement 055 Additional compliance information 056 Financial statements 148 List of properties 150 Shareholders' analysis report 153 Disclosure on recurrent related party transactions 156 Notice of annual general meeting Form of proxy QL Resources is a sustainable and scalable multinational agro-food corporation that farms and produces some of the most resource-efficient protein and food energy sources.

2 The Group has three principal activities; Integrated Livestock Farming, Marine Products Manufacturing and Palm Oil Activities, and operates in Malaysia, Indonesia, Vietnam and China. Marine Products Manufacturing Organic growth and a series QL has built-up its capabilities in consists of upstream and of strategic acquisitions has palm oil from milling and estate downstream activities including driven QL's rise to become one ownership to biomass clean deep-sea fishing, aquaculture of Malaysia's leading operators energy in a move that expands farming, surimi and fishmeal in animal feed raw materials and the value chain of traditional production and consumer foods. poultry farming. QL is among agriculture. QL has developed Through the use of innovative ASEAN's leading poultry egg proprietary technology that technology and quality practices, producers with a group production converts palm waste biomass QL has achieved industry rate of million eggs per day.

3 Into a high quality burning fuel, leadership positions including Approximately 40 million Day and manufactures industrial being Malaysia's largest fishmeal Old Chicks (DOC) and 20 million boiler systems which convert manufacturer and producer of broilers are produced annually that biomass fuel into energy, surimi-products, and Asean's across poultry farms in Malaysia minimising carbon emissions and largest surimi producer. and Indonesia. In Malaysia, QL improving energy cost efficiencies. Mushroom and Figo, QL's marine- trades over 1,000,000 metric QL has two independent Crude product consumer foods brands, tonnes of animal feed raw Palm Oil (CPO) mills servicing are distributed across Asia, Europe materials annually. small and medium sized estates and North America. in the Tawau and Kunak regions of Sabah, East Malaysia and one CPO mill in Northern Kalimantan, Indonesia.

4 QL owns a 1,200 hectare mature palm oil estate in Sabah, as well as 15,000 hectare plantation (9,000 hectare mature) in Eastern Kalimantan, Indonesia. 2. To be the preferred global agro We create nourishing products based enterprise from agro resources, leading to benefit for all parties PERSONALITY. Progressive Trustworthy Initiative Humility VALUES. Integrity Win-win Teamwork Innovative QL Resources Berhad (428915-X) Annual Report 2018 3. GROUP CORPORATE STRUCTURE. As at 30 June 2018. 100% QL Feedingstuffs Sdn. Bhd. 100% QL Fishery Sdn. Bhd. 100% Chingsan Development Sdn. Bhd. 100% QL Figo Foods Sdn. Bhd. 100% QL Feed Sdn. Bhd. 100% QL Marine Products Sdn. Bhd. 90% Pacific Vet Group (M) Sdn. Bhd. 100% Icon Blitz Sdn. Bhd. 100% QL Pacific Vet Group Sdn. Bhd. 100% QL Deep Sea Fishing Sdn. Bhd. 100% QL Agroventures Sdn. Bhd. 100% QL Fresh Choice Seafood Sdn.

5 Bhd. 100% QL Agrofood Sdn. Bhd. QL Endau Marine Products Sdn. Bhd. 95% QL AgroResources Sdn. Bhd. 100% QL Endau Deep Sea Fishing Sdn. Bhd. 100% QL Livestock Farming Sdn. Bhd. 100% QL Endau Fishmeal Sdn. Bhd. 100% Gelombang Elit (M) Sdn. Bhd. 100% Rikawawasan Sdn. Bhd. 51% QL TP Fertilizer Sdn. Bhd. 100% Pilihan Mahir Sdn. Bhd. 100% QL Tawau Feedmill Sdn. Bhd. 100% QL Foods Sdn. Bhd. 100% QL Farms Sdn. Bhd. 100% QL Aquaculture Sdn. Bhd. 100% Adequate Triumph Sdn. Bhd. 100% QL Aquamarine Sdn. Bhd. 100% QL Breeder Farm Sdn. Bhd. 100% QL Fishmeal Sdn. Bhd. 100% QL Inter-Food Sdn. Bhd. PT. QL Hasil Laut 1%. 100% Merkaya Sdn. Bhd. 99% PT. QLNutri Foods Indonesia 100% QL Agrobio Sdn. Bhd. 82% QL Lian Hoe Sdn. Bhd. 90% QL Ansan Poultry Farm Sdn. Bhd. 100% QL Lian Hoe (S) Pte. Ltd. 100% QL Rawang Poultry Farm Sdn. Bhd. 100% Zhongshan True Taste Food Industrial 100% QL Eco Farm Sdn.

6 Bhd. Co. Ltd. (fka: Hybrid Figures Sdn. Bhd.) 100% Kuala Kedah Fish Meal Sendirian Berhad 100% QL Poultry Farms Sdn. Bhd. 100% QL Figo (Johor) Sdn. Bhd. Haji Hussin Markom Sdn. Bhd. Kembang Subur Sdn. Bhd. 100% QL Realty Sdn. Bhd. 100% KS Pekan Hatchery Sdn. Bhd. 90% PT. QL Trimitra 55% Kembang Subur (Perak) Sdn. Bhd. 1%. 99% PT. QL Agrofood 51% Kembang Subur International Ltd. 100% QL Vietnam AgroResources Liability 100% Nam Duong Vietnam Aquatic Limited Company Hatchery Co., Ltd. 100% QL International Pte. Ltd. 100% KS Galah Sdn. Bhd. PT. QL Feed Indonesia 100% KS Monodon Sdn. Bhd. 90% QL Palm Pellet Sdn. Bhd. 100% QL Feedingstuffs Vietnam Limited Liability Company 100% QL Farms (Tay Ninh) Liability Limited Company 4. GROUP CORPORATE STRUCTURE (CONT'D). As at 30 June 2018. 100% QL Oil Sdn. Bhd. 100% QL BioEnergy Sdn. Bhd. QL Mutiara (S) Pte.

7 Ltd. 95% PT. Pipit Mutiara Indah 100% QL Plantation Sdn. Bhd. 100% QL Tawau Biogas Sdn. Bhd. 100 % QL Green Resources Sdn. Bhd. 100% QL Tawau Palm Pellet Sdn. Bhd. 100% QL NatureCo Sdn. Bhd. Leisure Pyramid Sdn. Bhd. 100% QL ESCO Sdn. Bhd. 100% QL IPC Sdn. Bhd. 100% QL Corporate Services Sdn. Bhd. 100% QL Carbon Sdn. Bhd. 100% Maxincome Resources Sdn. Bhd. 100% QL Kitchen Sdn. Bhd. QL Resources Berhad (428915-X) Annual Report 2018 5. 5 YEARS FINANCIAL SUMMARY. TURNOVER PROFIT BEFORE TAX. (RM MILLION) (RM MILLION). 3500 3, 300. 3, 3000 2, 2, 250. 2, 2500. 200. 2000. 150. 1500. 1000 100. 500 50. 0 0. 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018. PROFIT AFTER TAX AFTER MINORITY INTEREST TOTAL ASSETS. (RM MILLION) (RM MILLION). 3, 200 3500 3, 3000 2, 2, 150 2500 2, 2000. 100. 1500. 50 1000. 500. 0 0. 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018.

8 NET TANGIBLE ASSETS PAID UP SHARE CAPITAL. (RM MILLION) (RM MILLION). 2000 1, 800. 1, 1, 700 1500 1, 600. 1, 500. 1000 400 300. 500 200. 100. 0 0. 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018. 2014 2015 2016 2017 2018. RM MIL RM MIL RM MIL RM MIL RM MIL. Turnover 2, 2, 2, 3, 3, Profit Before Tax Profit After Tax After Minority Interest Total Assets 2, 2, 2, 3, 3, Net Tangible Assets 1, 1, 1, 1, 1, Profit as % of Turnover Before Tax After Tax Earnings Per Share (sen)-Basic^ 10 12 12 12 13. Net Tangible Assets Per Share (sen) Paid-up Share Capital * #. No. of Shares in Issue (million) 1, 1, 1, 1, 1, * Included in the paid-up share capital is million which is transferred from share premium in accordance with Section 618(2) of the Companies Act 2016. # Included in the paid-up share capital is million which is transferred from share premium in accordance with Section 618(2) of the Companies Act 2016.

9 ^ Adjusted for bonus issue in 2018. 6. CORPORATE INFORMATION. BOARD OF DIRECTORS. YM Tengku Dato' Zainal Rashid Mr. Cheah Juw Teck Mr. Tan Bun Poo, Robert Bin Tengku Mahmood Executive Director Independent Non-Executive Director Chairman/Independent Non-Executive Director Mr. Chia Seong Pow Prof. Datin Paduka Dato' Dr. Aini (Retired on 1 April 2018) (Alternate Director to Chia Seong Fatt) Binti Ideris (Re-designated on 1 April 2018) Independent Non-Executive Director Dr. Chia Song Kun Executive Chairman Mr. Chia Song Swa Ms. Kow Poh Gek (Re-designated on 1 April 2018) (Alternate Director to Chia Mak Hooi) Independent Non-Executive Director (Re-designated on 1 April 2018) (Appointed on 1 April 2018). Mr. Chia Song Kooi Group Managing Director Mr. Chia Lik Khai Ms. Chan Wai Yen, Millie (Re-designated on 1 April 2018) (Alternate Director to Cheah Juw Teck) Independent Non-Executive Director (Re-designated on 1 April 2018) (Appointed on 1 April 2018).

10 Mr. Chia Seong Fatt Executive Director Mr. Chieng Ing Huong, Eddy Ms. Cynthia Toh Mei Lee Senior Independent Non-Executive Independent Non-Executive Director Mr. Chia Mak Hooi Director (Appointed on 1 April 2018). Executive Director COMPANY SECRETARY STOCK EXCHANGE LISTING PRINCIPAL BANKERS. Ms. Ng Geok Ping Main Market of Alliance Bank Malaysia Berhad MAICSA 7013090 Bursa Malaysia Securities Berhad Alliance Islamic Bank Berhad Stock Name : QL AmBank (M) Berhad AUDITORS Stock Code : 7084 Hong Leong Bank Berhad HSBC Amanah Malaysia Berhad KPMG PLT INVESTOR RELATION HSBC Bank Malaysia Berhad Chartered Accountants Malayan Banking Berhad Level 10, KPMG Tower Freddie Yap Standard Chartered Bank Malaysia 8, First Avenue Tel : 03-78012288 Berhad Bandar Utama Fax : 03-78012222 RHB Bank Berhad 47800 Petaling Jaya Email : United Overseas Bank (Malaysia).