CHAIRMAN’S STATEMENT

Dear Shareholders,

On behalf of the Board of Directors, it is my pleasure to present the Annual Report and the Audited Financial Statements of Mentiga Corporation Berhad and its subsidiaries (“the Group”) for the financial year ended 31 December 2011.

Economic Landscape

As Malaysia progresses to become a high income nation by 2020, the Government has identified four initiatives of advancement as the foundation for growth and the transformation of Malaysia into a developed economy. These four initiatives of advancement are the 1Malaysia concept, the Government Transformation Programme, the Economic Transformation Programme and the Tenth Malaysia Plan. 

The steadfast Government initiatives coupled with strong domestic demand will continue to drive the Malaysian economy forward. Indeed, the nation’s economy has delivered a resilient growth at 5.1% of Gross Domestic Product (GDP) for the full year despite broader global economic uncertainty. We are confident that the Group is wellpositioned for the long haul. Our primary focus will be to deliver growth with our strength in a challenging business environment for the benefit of both the present and future generations.


Group’s Performance


During the year under review, the Group recorded revenue of RM18,384,740 and profit after taxation of RM4,454,514 compared to revenue of RM10,658,800 and loss after taxation of RM7,417,884 in the previous financial year. There is a significant improvement in the shareholders’ value through the increase of earnings to 7.36 sen per share from loss of earnings of 12.36 sen per share in the previous financial year.

The increase in revenue for the current financial year was mainly due to the increase in sale of fellable timber, sale of iron ore and increase production of Fresh Fruit Bunches (‘‘FFB”) and higher commodity price of CPO. Our wholly-owned subsidiaries namely, Mentiga Plantation Sdn Bhd and Mentiga Mining Sdn Bhd had recorded profit after taxation of RM1,780,129 and RM3,938,025 respectively due to increase in production and better prices of both palm oil and iron ore in the financial year under review.      


Prospects

The Group will continue exploring for new areas of growth and opportunities. The board is constantly working towards improving the Group’s efficiency and productivity to achieve and realize the full potential of the Group’s resources. At the same time, the Group will focus on its core activities in timber extraction and trading in timber related products. Mining activity is expected to generate a significant source of revenue to the Group in the coming years.

The Group will be developing a new area for oil palm totaling 13,112 acres located at Mukim Ulu Lepar and Penor in the District of Kuantan and at Mukim Hulu Cheka in the District of Jerantut, Pahang Darul Makmur to increase the planted acreage. This is in line with our existing growth strategy to be a medium size plantation company. The new area will be developed in stages and clearing of the land in preparation for new planting would commence by the 3rd Quarter of 2012. The Group is confident of achieving a set of positive financial results for the ensuing year 2012.


Dividend


The Board of Directors is glad to recommend the payment of a first and final dividend of 2 sen per share on 70,0000,000 ordinary shares, less income tax of 25% totaling RM1,050,000 (2010: Nil) for the financial year ended 31 December 2011. The proposed first and final dividend will be subject to the approval of shareholders at the forthcoming Annual General Meeting (“AGM”) and shall be paid on 10 August 2012


Acknowledgement


On behalf of the Board, I would like to extend my sincere appreciation to the management and all employees of the Group for their tireless efforts and invaluable contributions in the past financial year. I would also extend my sincere thanks and appreciation to the State Government of Pahang and the other authorities for their continuous support, guidance and invaluable assistance to the Group.

Our appreciation also extended to the shareholders, customers, suppliers, bankers and business associates for their continuing confidence in our Group.

Lastly, I would like to thank all my colleagues of the Board, for their prudent counsel, commitment and guidance that would accelerate the advancement of the Group.

Wassalam,

Dato’ Sri Haji Adnan bin Haji Yaakob SSAP., DSAP., DGSM.
Chairman

 

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