MKH Berhad 19 For FY2022, the Plantation Division recorded a higher revenue by 7.3% to RM315.8 million (FY2021: RM294.5 million) mainly attributable to higher average crude palm oil (“CPO”) price of RM3,847 per metric ton (MT) in FY2022 as compared to RM2,945 per MT in FY2021. This division’s PBT decreased by 24.8% to RM76.6 million (FY2021: RM101.9 million) mainly due to higher average production cost incurred as a result of lower production of fresh fruit bunches (“FFB”) arising from the La-Nina wet weather effect and higher fertiliser cost. In recognising the importance of innovation in value creation for our businesses, our oil palm plantation located in East Kalimantan, Indonesia continues to expand on the use of mechanical assisted collection of FFB and the use of software apps for monitoring. The Plantation Division has also developed new apps namely Plantation & Mill Management System to track evacuation of FFB from field to the mill and Contractor Management System to monitor contractors' trucks for a more efficient FFB crop evacuation. The Plantation Division also utilises drones to enhance good agriculture practices and monitoring. The combined program assists management to analyse field condition and palm growth; conduct palm census; monitor road access and water flows which contribute towards good estate management. We will continue to focus on our efforts to maximise CPO production and operation efficiency. The Indonesian Government has commenced the construction of the new administrative capital of Indonesia (Ibu Kota Negara) Nusantara in East Kalimantan. This augers well for us as it will accelerate the economic and infrastructure development in East Kalimantan where our plantation is located. Our Building Materials Trading Division has also established its own 2 trademarked ironmongeries EGON and sanitary fittings, CASCADA to fit the aesthetically needs of modern residential and commercial projects that can enhance the prestige of the property. Maintaining its success in the trading industry, our Building Materials Trading Division also supply ready-mix concrete to our MKH Boulevard II and MIRAI Residences projects. As a responsible and caring corporate citizen, MKH holds Corporate Social Responsibility (“CSR”) close to its heart. During the financial year, the Group contributed approximately RM597,009 in community engagement that benefited 32 educational institutions, community clubs and charitable organisations. MKH’s sustainability progress is further detailed in the section on “Sustainability Report” of this Annual Report, from page 31 to page 44. For FY2022, a first interim dividend of 4.0 sen per ordinary share amounting to approximately RM23.1 million was declared on 29 November 2022 and paid on 6 January 2023. This represents a distribution of approximately 20.6% of the Group’s net profit attributable to shareholders. Moving forward, we are confident that the Group is in a better position to create sustainable businesses with our TOD model. While the Klang Valley residential market in general is foreseen to remain challenging, we are confident that our strategy of building affordable housing at good location with TOD concept will continue to receive good take up rate. Bountiful harvested FFB being transported by lorries to our CPO mill FFB being transferred from the powered wheelbarrow to the collection bin to be transported to our CPO mill
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