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The Company’s business activities are involved in the following industries:

Palm Oil Industry
The growth of the palm oil industry in Malaysia has been phenomenal over the last 46 years. The palm oil estates have increased from a mere 54,000 hectares in 1960 to 4 million hectares in 2005, resulting in the processing of 74 million tonnes of fresh fruit bunches (“FFB”) from which crude palm oil (“CPO”) is extracted. In tandem with this growth, a large amount of waste, comprising EFB (22%), palm oil mill effluents (72%) and decanter sludge (3%), is generated during the extraction of CPO in the palm oil mills.

Due to the remote location of most palm oil mills, these wastes (especially palm oil mill effluents which have an extremely high content of degradable organic matter) are generally not treated properly and as a result pollute the environment such as the release of greenhouse gases, soil erosion and water pollution.

The Company’s BOO model allows palm oil millers to have access to a complete waste treatment system at “zero” cost (i.e. no cash investments required from these palm oil millers). The adoption of the Company’s Inno-Works scheme to treat palm oil waste will go a long way to support the sustainable resource management of the palm oil industry and will assist in changing the negative perception that the current palm oil mills are damaging the environment due to its archaic waste disposal practices.

Chemical and mineral fertilizers represent a major cost item in the production of crude palm oil as they are heavily relied upon as the key fertilization regime to improve or maintain the yield of Fresh Fruit Bunches. Furthermore, palm oil millers also face escalating costs of chemical and mineral fertilizers as well as the transportation costs in transporting these imported chemical and mineral fertilizers to the estates which could be located in far remote areas. Although it is common knowledge that BOF is as equally effective as (if not better than) the conventional chemical fertilizers, most plantations have not adopted the use of BOF due to the lack of supply and inconsistent quality of the BOF produced so far.

The BOF produced under the Company’s Inno-Works scheme serves to address these industry concerns by ensuring a steady and consistent supply of high quality BOF at a lower cost. Apart from reducing ground water pollutant due to seepage and improving soil management, fruit yield and plant health, the reduced dependency on imported chemical and mineral fertilizers also mitigates the palm oil millers’ exposure to foreign exchange risks and fluctuation in fertilization costs.

Waste Management Industry
In the bio-industrial sector, there is a general concerted effort by the government and the private sectors to encourage the industries to adopt an environmentally friendly waste treatment approach. The Company believes that the in-vessel composting integrated bio-technology will have broader scope and application in other industrial organic waste treatment apart from that in the palm oil sector, for example the municipal waste, farm animal waste, rice husks etc. The Company’s long term direction is to expand into these other sectors in Malaysia and the Asia Pacific region.

Agro-based Industry
In the agro-based sector, the myriad of potential applications of various blends of BOF present a latent demand for BOF produced by the Company. For example, the Company’s flexible bio-formulation production would fulfill the needs of health supplement for plants and vegetation. The application of BOF in organic food production and cash crops has an edge over chemical fertilizers, the prolonged use of which will result in the deterioration of soil conditions, chemical leachate into the water ways and chemical trace elements in food productions that may affect the health of our people. Despite the demand, there is currently no prominent/ consistent producer of BOF with a proven capacity of more than 100,000 MT per year in Malaysia. Therefore, the Company also believes that there exists much higher demand and as such, a premium market for high grade green BOF which is produced by the Company.