INTEGRATED poultry farmer farmer-cum-food producer CAB Cakaran Corp Bhd has sparked the curiosity of the Minority Shareholders Watch Group (MSWG) for sealing a joint venture (JV) deal with MATA Aerotech Sdn Bhd to diversify its principal activities to include the provision of drone-related services for the agriculture industry.
In the agreement dated Jan 26 this year, CAB Cakaran said it is desirous to jointly undertake the drone business at the invitation of MATA.
“How was the company introduced to MATA? What was the level of due diligence carried out by the board on MATA and in the new drone business venture?” asked the shareholders’ activism group in conjunction with CAB Cakaran’s forthcoming extraordinary general meeting (EGM).
“To what extent has the company conducted research or feasibility study on the drone business venture?”
CAB Cakaran will convene its physical EGM on March 24 (Thursday) at 11.30am soon after its 12th annual general meeting (AGM) at 10.30am on the same day at its corporate office in Seberang Jaya Industrial Park, Penang.
In a related development, MSWG will also query CAB Cakaran at its AGM as to why the group’s gross profit had decreased significantly to RM86.25 mil in its FY9/2021 (FY9/2020: RM113.79 mil).
The company has justified that an increase in the cost of feed, which accounted for almost 65% of its total production cost of chicken since October 2020 by circa 40%, has resulted in the group’s profit margin being eroded significantly.
“With the recently announced Government’s subsidies to the poultry industry, is the company a beneficiary of such subsidies? To what extent will this help to cushion the impact of escalating price of raw materials for poultry feed?” asked the shareholders’ activism group.
“Should the price of corn and soybean meal continue to spike, does the group have alternative plans to control its cost of production?”
Elsewhere, MSWG also seeks feedback from Eco World International Bhd as to why the group’s administrative and general expenses rose by RM16.6 mil or 42.2 % from RM39.3 mil in FY2020 to RM55.9 mil in FY2021.
However, the group’s revenue decreased by RM100 mil or 14.9% from RM673 mil in FY2020 to RM573 mil in FY2021.
“Please explain the high administrative and general expenses in FY2021 as it does not commensurate with the reduction in the group’s revenue in FY2021?” requested MSWG. “Please name the expenses that recorded a higher increase in FY2021 as compared to FY2020.”
Eco World International will hold its eighth AGM virtually on March 24 (Thursday) at 10.30am from its broadcast venue at the Bukit Bintang City Centre Sales Gallery in Kuala Lumpur. – March 18, 2022
