KUALA LUMPUR, March 31 — Compugates Holdings Bhd has proposed to diversify its existing business to include property development and agarwood plantation.
In a filing with Bursa Malaysia today, the group said its core business activities currently comprise trading, services and property development, as well as agriculture.
However, it also noted that the “revenue contribution from the group’s trading, services and property development segment were derived wholly from its trading and services business, and that the group did not record any revenue contribution from property development-related activities”.
The filing said that its 70 per cent-owned subsidiary Compugates Development and Mining Sdn Bhd (CDMSB) owns 25.09 hectares (ha) and 14.16ha in Cybersouth, Dengkil, Selangor and that it would like to “reduce its reliance on” trading and services business.
Following a joint venture agreement between CDMSB and Jade Classic Sdn Bhd (JCSB) on Nov 28, 2017, they have agreed to undertake a development project on the 25.09-ha site with JCSB as the developer and CDMSB having a share of the gross development value (GDV), or RM46 million from phase 1 (GDV: RM230 million). There will be five phases.
Sales are expected to commence in the second half of 2023 and the group may begin receiving its share of profit by the end of 2023, it noted.
Its proposed diversification into agarwood plantation will enable it to expand its existing agriculture segment by providing inoculation services and/or sale of agarwood resin and other derivatives, thereby diversifying and creating an additional income stream.
Its agriculture segment currently comprises a 21.85-ha agarwood plantation in Kuala Kangsar, Perak with 20,312 trees. — Bernama
