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A commitment to real Entrapreneur capabilities and management talent among employees lead us to establish Kulim’s Intrapreneur Venture (“IV”) Division. The Division is entrusted to create an ecosystem that encourages value-adding initiatives across a diverse range of businesses, optimising performance and returns in plantation support operations, biofertilizer, agricultural machinery, oil palm nursery, training and OSH related services, as well as IT-related and insurance broking services. Altogether, there are eight (8) active companies with equity participation by Entrepreneurs and Corporate Intrapreneurs. In light of the volatile economic environment, Kulim has been reassessing the performance of its IV companies. Companies with potential and profit growth have been nurtured and expanded, while companies that experienced setbacks have either been reviewed, restructured or merged. Viable plans and strategies have also been laid down to meet the challenges of an ever changing market environment.

FINANCIAL PERFORMANCE

In 2019, the IV Division recorded revenue of RM37.63 million, a decreased of 21.49% compared with RM47.93 million posted the preceding year. The Division recorded a PBT of RM0.25 million in 2019 from RM1.24 million registered previously. Extreme Edge Sdn Bhd (“EESB”) Group was the most profitable company within the Division, generating PBT of RM1.04 million. Other companies that recorded satisfactory performance including Kulim Safety Training and Services Sdn Bhd (“KSTS”), MIT Insurance Brokers Sdn Bhd (“MIT”) and Perfect Synergy Trading Sdn Bhd (“PSTSB”).

CORPORATE DEVELOPMENTS

During the year under review, Kulim undertook several measures to strengthen its IV business with the aim to provide an operational base that would create value. These measures includes, the cessation of loss-making operations or companies, revising company business models, merging and disposing of under-performing companies or no longer fit in the Group’s strategic vision, diversification, and outsourcing of certain businesses and activities.
Accordingly, EPASA Shipping Agency Sdn Bhd (“EPASA ”) and Special Appearance Sdn Bhd (“SAS B”) had ceased their operations on 1 May 2019 and 31 December 2019, respectively. EPASA became dormant on the same date of its ceased operations, while SASB will follow suit by 2020. Meanwhile, KSTS acquired Optimum Status Sdn Bhd (“OSSB”) from EPA Management Sdn Bhd (‘’EPA”) effective on 13 February 2019.

EXTREME EDGE SDN BHD

EESB was incorporated on 1 January 2010, and since then, it has set its sights on becoming a premier information technology solution integrator and business performance enhancer in Malaysia’s competitive Information Communications Technology (“ICT”) business landscape. EESB is a one-stop solutions centre which focuses on providing networking and communications, backup and recovery, project management and consultation, managers services of hardware, website design, web application development, and business applications.
For the financial year under review, EESB Group recorded a revenue of RM18.20 million, an increased of 37.88% as compared to RM13.20 million posted in 2018. This was due to an increase in supplies of hardware and software, as well as maintenance contracts with Kulim and securing new external projects. However, stiff competition in the market, which lead to a decreased in EESB’s PBT margin of 57.55% to RM1.04 million in 2019, down from RM2.45 million recorded in the previous year.

KULIM SAFETY TRAINING AND SERVICES SDN BHD

KSTS was incorporated on 1 January 2013 as a subsidiary of Kulim’s wholly -owned EPA. Guided by its motto, “Safety Makes a Difference”, KSTS specialises in Occupational, Safety and Health (“OSH”) services, with emphasis on OSH training, human resource development, and motivational activities. KSTS also provides advisory services on matters related to Occupational, Health and Safety Management Systems (“OHSAS 1800”) and ISO Quality Management Systems. It undertakes auditing, inspection and look into cases related to deaths, accidents and dangerous occurrences at the workplace and make recommendations for improvements.
Other services provided includes health screening (medical surveillance), noise monitoring and gas testing, administering urine and drugs tests as well as fire safety. KSTS also provides on-site medical officer visitations and medical screenings for foreign workers on behalf of the Foreign Workers Medical Examination Monitoring Agency (“FOMEMA”).
During the financial year under review, KSTS generated a revenue of RM3.96 million, representing an increased of 4.49% from RM3.79 million posted in 2018. Meanwhile, PBT decreased by 20.51% to RM0.62 million compared to the previous year at RM0.78 million.

MIT INSURANCE BROKERS SDN BHD

MIT prides itself on being “World Class, Home Grown”. Established in 1973, the company has evolved to be a significant player with the capabilities and track record to deliver quality insurance solutions. Apart from offering conventional insurance to a growing client base, MIT is also a licensed takaful broker.
MIT is venturing into Captive Insurance to diversify its earnings base. A ‘captive’ is an insurance company that is set up and wholly-owned by one or more non-insurance companies to insure the risks of its owners. Presently, MIT has established its captive insurance company, MIT Captive, on the island of Labuan, offshore Sabah, which has a well-established reputation as a captive domicile.
During the financial year under review, MIT generated a revenue of RM7.39 million, representing an increased of 8.20% up from RM6.83 million posted in 2018. The company has recovered from its losses of RM0.25 million recorded in 2018 to PBT of RM0.89 million in 2019 due to increase in its brokerage fees. In 2019, gross premiums handled by MIT amounted to RM59.59 million, a decreased of 1.88% from RM60.73 million recorded the year before.

PERFECT SYNERGY TRADING SDN BHD

PSTSB was established on 8 July 2010 as a distributor and supplier of fertilizers and chemicals based in Kota Tinggi’s Industrial Area in Johor. The Company is dedicated to providing efficient and customer friendly services to their clients. Its main clients consist of estates within JCorp Group and the Kulim Group. PSTSB’s products meet the stringent requirements set by the Malaysia Standards Department and are also certified with MS ISO/IEC 17025:2005 under the Malaysia Laboratory Accreditation Scheme (“MLAS ”) for assurance of quality.
During the financial year under review, PSTSB’s revenue in 2019 was decreased by 3.13% to RM8.66 million compared to RM8.94 million in 2018. Concurrently, PBT decreased by 61.11% to RM0.21 million compared to the previous year which earned RM0.54 million. PSTSB has planned for business diversification to ensure its continuity and sustainability.