Mkh Oil Palm (East Kalimantan) Berhad (Malaysia)

The Company was incorporated on 10 August 2004.
The Company s principal activity are investment holding and management services company. Through our subsidiaries, we are principally involved in the cultivation of oil palm and production and sale of CPO and PK.
As part of MKH's plan to venture into oil palm plantation business, on 18 January 2008, our Company acquired the entire equity interest in SJL Utama Pte Ltd (“SJL”), a company incorporated in Labuan, Malaysia which had a 94.998 -owned subsidiary named PT MKH, with the remaining equity interests held by PT Khaleda Anugerah Utama (“PT Khaleda”) (4.998 ), Ong Khek Gee (0.002 ) and Juhni Mirza (0.002 ). PT MKH owned approximately 15,942.6 Ha of plantation land located in East Kalimantan, Indonesia. Before the acquisition of the entire equity interest in SJL, our Company had remained dormant since the acquisition by MKH.
On 1 July 2009, our Company acquired 94.998 equity interest in PT MKH from SJL, resulting in PT MKH becoming our directly-owned subsidiary. This was in preparation of the cessation of SJL's business to streamline the corporate structure of MKH, whereby SJL was subsequently struck off from the register of Labuan Financial Services Authority with effect from 15 November 2011. On the same date, another subsidiary under MKH, namely Metro Kajang (Oversea), acquired 0.002 equity interest in PT MKH from Ong Khek Gee.
Between 2015 and 2018, PT MKH undertook 3 allotments of shares to its shareholders, namely PT Khaleda, Juhni Mirza and Metro Kajang (Oversea); and on 7 February 2018, Juhni Mirza disposed his entire equity interest to PT Khaleda; which resulted in Metro Kajang (Oversea) owning 0.67 equity interest, PT Khaleda owning 5.00 equity interest, and our Company owning the remaining 94.33 equity interest in PT MKH.
On 27 March 2017, as part of our expansion plans, MKH Plantation, a wholly-owned subsidiary of MKH, acquired 75.00 equity interest in PT SPS, with the remaining equity interest held by Ivakijaya (20.00 ) and PT Khaleda (5.00 ). PT SPS owned approximately 2,445.5 Ha of plantation land located adjacent to the plantation land owned by PT MKH.
In 2021 and 2022, PT Khaleda transferred all of its equity interest in PT MKH (5.00 ) to PT Hikmat, resulting in PT Hikmat owning 5.00 equity interest, Metro Kajang (Oversea) owning 0.67 equity interest, and our Company owning the remaining 94.33 equity interest in PT MKH. Over the same period, PT Khaleda transferred all of its equity interest in PT SPS (5.00 ) to PT Hikmat, resulting in PT Hikmat owning 5.00 equity interest, Ivakijaya owning 20.00 equity interest, and MKH Plantation owning the remaining 75.00 equity interest in PT SPS.
As part of the Pre-IPO Reorganisation and in preparation for our Listing, our Company has undertaken the Acquisition of PT MKH and Acquisition of PT SPS to acquire the remaining 5.67 equity interest in PT MKH that are owned by PT Hikmat (5.00 ) and Metro Kajang (Oversea) (0.67 ); as well as the entire equity interest in PT SPS that are owned by PT Hikmat (5.00 ), Ivakijaya (20.00 ), and MKH Plantation (75.00 ). The Acquisition of PT MKH and the Acquisition of PT SPS were completed on 20 December 2023, and PT MKH and PT SPS became our wholly-owned subsidiaries.
Upon the acquisition of SJL in 2008, the company purchased oil palm seedlings from third party suppliers and commenced the cultivation of seedlings by setting up a nursery on the plantation land. By end of 2008, the company had planted oil palms on approximately 20.0 of the total plantation land; and by end of 2009, we had planted oil palms on approximately 55.0 of the total plantation land. By end of 2010, approximately 90.0 of the plantation land was planted with oil palms.
In January 2011, the company began to harvest FFB and commenced sale of FFB to third party palm oil mills. In October 2011, the company completed the construction of a palm oil mill with a processing capacity of 60 MT FFB per hour, on the plantation estate owned by PT MKH, to commence the processing of FFB harvested from our plantation estate to produce CPO and extract PK. With this, we ceased selling FFB to third party palm oil mills as the company began processing all FFB harvested from our plantation estate in our palm oil mill, except during periods where our palm oil mill undergoes annual major maintenance.
With the aim to increase the operational capacity of our palm oil mill as part of our expansion plan and to meet our rising FFB production, in July 2014, the company upgraded our palm oil mill to a capacity of 90 MT FFB per hour.
Upon the acquisition of PT SPS in 2017, the total area of our oil palm plantation land increased to 18,388.1 Ha. At the point of acquisition, approximately 70.0 of the plantation land of PT SPS was already planted with oil palms.
On 4 April 2017, PT MKH obtained the ISPO certification from PT SGS Indonesia, an accredited certification body of ISPO as a testament to the sustainability of our plantation practices and in recognition of our compliance with the relevant laws and regulations in Indonesia. On 27 July 2022, PT SPS obtained the ISPO certification from PT Global Inspeksi Sertifikasi, an accredited certification body of ISPO.
As our oil palms began entering the prime mature stage with peak FFB harvest, the company recognised the importance of enhancing the productivity in our plantation estates. In 2018, we purchased and commissioned over 100 units of powered wheelbarrows to replace some of our conventional wheelbarrows for the collection of FFB, thus increasing our in-field mobility and operational efficiency in FFB collection. Further, the comapny began implementing more mechanisation processes and adopted more technology to enhance the productivity and efficiency of FFB collection in our plantation estates.
On October 2018, our Group began to undertake the building materials trading business in Malaysia, together with another subsidiary under MKH, namely MKH Building Materials Sdn Bhd. Subsequently in 2021, our Group had ceased the building materials trading business since 1 January 2021 for the preparation of our Listing.