These efforts have contributed to an increase in FFB production and OER for FY2023, enabling our Plantation Division to record a 7% growth in revenue for FY2023. As the weather normalizes, we expect further increases in FFB production and OER, which will positively contribute to our revenue and profit. As at 30 September 2023, the total area planted for this division was approximately 17,009 hectares and all of these plantations have reached the mature age for harvest. Specifically, PT MKH has 15,013 hectares of oil palm trees planted aged between 12 to 15 years old, while PT SPS has 1,996 hectares of oil palm trees planted between 3 to 12 years old. Hotel and Property Investment For FY2023, this division recorded a higher revenue of RM32.5 million (FY2022: RM30.0 million) and PBT of RM10.5 million (FY2022: RM10.5 million) mainly due to inclusion of fair value gain on transfer from property, plant and equipment to investment properties of RM2.8 million and net changes in fair value loss on investment properties of RM0.9 million in the current year (FY2022: net changes in fair value gain on investment properties of RM2.4 million). MANAGEMENT DISCUSSION AND ANALYSIS REPORT Field training with Estate Managers and Assistant Managers on the harvesting standards of FFB Convenience and comfort at RHR Hotel @ Kajang, situated in the heart of Kajang town Plantation (Cont’d) MKH BERHAD | ANNUAL REPORT 2023 31
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