ANNUAL REPORT

The Group's integrated livestock farming division (upstream division) is mainly divided into two (2) segments, namely Laag and Broiler. The Group's food manufacturing division (downstream division) is mainly divided into two (2) segments, namely processed chicken products and pasteurized liquid egg.

MANAGEMENT DISCUSSION AND ANALySIS

RETAIL BUSINESS

ANTICIPATED OR KNOWN RISKS

ANTICIPATED OR KNOWN RISKS (CONT’D) Foreign Currencies Risk

DIVIDEND

ACKNOWLEDGEMENT AND APPRECIATION

DATO’ YAP HOONG CHAI

DATO’ YEAP WENG HONG

DIRECTOR’S PROFILE

DATO’ YAP CHOR HOW

NG KIM TIAN

YEAP FOCK HOONG

GAN LIAN PENG

TAN CHEE HAU

LIM TECK SENG

TADAAKI ITO

YASUHITO IGARASHI

YAP CHOR WEN

BONG KIM FUI

KEy SENIOR MANAGEMENT

SENIOR MANAGEMENT KEy

WONG YEN TIEN

ONG YONG THYE

CHAN WEI KHUEN

SUSTAINAbILITy STATEMENT

OUR SCOPE OF REPORTING

SUSTAINABILITY GOVERNANCE Vision, Mission and Core Value

SUSTAINABILITY GOVERNANCE (CONT’D) Corporate Governance

STAKEHOLDERS ENGAGEMENT

MATERIAL SUSTAINABILITY MATTERS Economic

MATERIAL SUSTAINABILITY MATTERS (CONT’D) Economic (Cont’d)

MATERIAL SUSTAINABILITY MATTERS (CONT’D) Environment

MATERIAL SUSTAINABILITY MATTERS (CONT’D) Social

MATERIAL SUSTAINABILITY MATTERS (CONT’D) Social (Cont’d)

CORPORATE GOVERNANCE OVERVIEW REPORT

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (a) BOARD RESPONSIBILITIES

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) (a) BOARD RESPONSIBILITIES (Cont’d)

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) (b) BOARD COMPOSITION

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) (c) REMUNERATION (Cont’d)

PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT (a) AUDIT COMMITTEE

PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) (b) RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK

PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS

MEMBERS OF AUDIT COMMITTEE

SECRETARY

TERMS OF REFERENCE

MEETINGS AND MINUTES

AUDIT COMMITTEE REPORT

MEETINGS AND MINUTES (CONT’D) Meetings

SUMMARY OF ACTIVITIES

SUMMARY OF ACTIVITIES (CONT’D) b. Financial Reporting

SUMMARY OF ACTIVITIES (CONT’D)

CG PRACTICES

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

INTRODUCTION

BOARD’S RESPONSIBILITY

RISK MANAGEMENT FRAMEWORK

INTERNAL CONTROL

INTERNAL CONTROL (CONT’D)

REVIEW BY THE EXTERNAL AUDITORS

CONCLUSION

ADDITIONAL COMPLIANCE INFORMATION

STATEMENT OF DIRECTORS’ RESPONSIbILITy IN RELATION TO THE FINANCIAL STATEMENTS

StAteMeNtS

The directors present their report and the audited financial statements of the Group and the Company for the year ended 31 March 2021.

PRINCIPAL ACTIVITIES

RESULTS

RESERVES AND PROVISIONS

ISSUE OF SHARES AND DEBENTURES

DIRECTORS’

REPORT

INDEMNIFYING DIRECTORS, OFFICERS OR AUDITORS

DIRECTORS

SHARE ISSUANCE SCHEME

DIRECTORS’ INTEREST

DIRECTORS’ BENEFITS

OTHER STATUTORY INFORMATION

SIGNIFICANT EVENTS DURING AND AFTER THE REPORTING DATE

AUDITORS

INDEPENDENT

AUDITORS’ REPORT

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion

INDEPENDENT AUDITORS’ REPORT

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D)

Therefore, we defined the book value of tangible fixed assets as a key audit issue, as the revaluation will be performed at the end of the reporting date. We took into account the competence, ability and objectivity of the independent evaluators engaged by the management. We also learned about the methodology adopted by independent appraisers and management in assessing the fair value of tangible fixed assets.

As part of our evaluation of the fair values of property, plant and equipment, we reviewed the valuation report prepared by the independent appraisers and spoke with management to understand the property-related data used as input to the valuation model.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS’ REPORT THEREON The directors of the Company are responsible for the other information. The other information comprises the

Valuation of property, plant and equipment Our audit work in this area includes the book value of real estate as of March 31, 2021. In the current financial year, the Group engaged independent appraisers to determine the fair value of the tangible fixed assets on the balance sheet date. Fair value is determined on the basis of market-based evidence through a valuation carried out by professional appraisers and using a high degree of judgment.

INFORMATION OTHER THAN THE ACCOUNTING STATEMENTS AND THE AUDIT REPORT THEREON Other information is the responsibility of the directors of the company.

RESPONSIBILITIES OF THE DIRECTORS FOR THE FINANCIAL STATEMENTS

AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D)

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

OTHER MATTERS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

STATEMENT OF FINANCIAL POSITION

STATEMENT OF

FINANCIAL POSITION

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Diluted earnings are not presented per share, as there are no potential dilutive ordinary shares at the end of the financial year.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF CHANGES IN EQUITy

CHANGES IN EQUITy

CONSOLIDATED STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS

NOTES TO

THE FINANCIAL STATEMENTS

GENERAL INFORMATION

BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS 1 Statement of Compliance

NOTES TO THE FINANCIAL STATEMENTS

BASIS OF PREPARATION (CONT’D) 1 Statement of Compliance (Cont’d)

BASIS OF PREPARATION (CONT’D) 2 Basis of Measurement

Functional and Presentation Currency
Use of Estimates and Judgments

BASIS OF PREPARATION (CONT’D)

Use of Estimates and Judgments (Cont’d) (c) Measurement of Income Taxes
Use of Estimates and Judgments (Cont’d) Significant management judgement

The following are significant management judgments in the application of the Group's accounting policies that have a significant effect on the financial statements. To distinguish each phase of the research-type project from the development phase, it is the Group's accounting policy to also require a detailed forecast of the sales or cost savings expected to be generated by the intangible asset. The forecast is included in the Group's overall budget forecast when capitalization of development costs begins.

The Group's management also monitors whether the accountability requirements for development costs are still met.

SIGNIFICANT ACCOUNTING POLICIES 1 Equity Instruments

Basis of Consolidation

Initial capitalization of costs is based on management's judgment that ingredient uses, processes and economic feasibility are confirmed, usually when a product development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalized, management makes assumptions regarding the expected future cash generation of the project, discount rates to be applied and the expected period of benefits. Development costs are recognized as an asset when all the criteria are met, while research costs are incurred as expenses.

This ensures that management accounting, impairment testing procedures and accounting for internally generated intangible assets are based on the same data.

SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 2 Basis of Consolidation (Cont’d)

SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 3 Subsidiary Companies

Associates

SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Intangible Assets (a) Goodwill

SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 6 Property, Plant and Equipment

Investment Property
Income Taxes (a) Current tax
Income Taxes (Cont’d) (b) Deferred tax
Provision
Cash and Cash Equivalents

Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the tax authorities. Current taxes are recognized in the result, except to the extent that the tax relates to items recognized outside the result, either in other comprehensive income or directly in equity. The carrying amount of deferred tax assets is reviewed on each accounting day and reduced to the extent that it is no longer likely that there will be sufficient taxable income to make it possible to utilize all or part of the deferred tax asset.

Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be utilised.

SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 11 Biological assets

Inventories
Non-current assets held for sale

SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 13 Non-current assets held for sale (Cont’d)

Leases
Leases (Cont’d)
Impairment
Impairment (Cont’d) (b) Non-financial assets
Employee Benefit Costs (a) Short term benefits
Employee Benefit Costs (Cont’d) (b) Defined contribution plan
Foreign Currency Transactions

The assessment of whether the Group and the Company are reasonably certain to exercise such options affects the term of the lease, which significantly affects the amount of the right-of-use asset is reduced to zero. With the exception of trade receivables, a 12-month ECL is recognized in profit or loss on the date of origination or acquisition of the financial asset. At the end of each reporting period, the Group and the Company assess whether there has been a significant increase in the credit risk of a financial asset since its initial recognition or at the end of the previous period.

The individual financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”).

SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 18 Revenue Recognition

Financial Instruments
Financial Instruments (Cont’d) (d) Financial Assets
Financial Instruments (Cont’d) (f) Fair Value Measurement
Borrowing Costs
Contingencies

The Group and the Company recognize a financial asset or a financial liability (including derivative instruments) in the statement of financial position when, and only when, an entity in the Group or the Company is a party to the contractual provisions of the become instrument. The classification is based on the Group's and the Company's business model objective for managing the financial assets and the contractual cash flow characteristics of the financial instruments. A gain or loss is only recognized in profit or loss when the financial asset or financial liability is derecognised or impaired, and through the amortization process of the instrument.

Contingent liabilities and assets are not included in the statements of financial position of the Group and the Company.

SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 22 Fair Value Measurements

Segment Information
Related Parties

SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 24 Related Parties (Cont’d)

PRINCIPAL ACTIVITIES

The Group and the Company have leased their facilities, machinery and motor vehicles under the lease agreement.

PROPERTY, PLANT AND EQUIPMENT (CONT’D) Valuation

PROPERTY, PLANT AND EQUIPMENT (CONT’D) Valuation (Cont’d)

INVESTMENT PROPERTIES

INVESTMENT PROPERTIES (CONT’D)

SUBSIDIARY COMPANIES A. INVESTMENT IN SUBSIDIARIES

In 2020, the Company acquired an additional 147,000 ordinary shares in EOF for a total cash consideration of RM1, increasing the Group's effective ownership interest in the said subsidiary from 92.7% to 100%. A summary of the financial information on subsidiaries that have significant intra-group NCI before demerger is as follows:-.

AMOUNT DUE FROM/(TO) SUBSIDIARIES

ASSOCIATED COMPANY

The amount due from subsidiaries amounting to RM RM is subordinated to financial institutions as securities for credit facilities granted to certain subsidiary companies as disclosed in Note 20.

INVESTMENT IN AN ASSOCIATE

The company has no material contingent liabilities or capital commitments at the reporting date.

AMOUNT DUE FROM/(TO) AN ASSOCIATE

OTHER INVESTMENTS
INTANGIBLE ASSETS
INTANGIBLE ASSETS (CONT’D)
BIOLOGICAL ASSETS
BIOLOGICAL ASSETS (CONT’D)
INVENTORIES
INVENTORIES (CONT’D)
TRADE RECEIVABLES
OTHER RECEIVABLES
DEPOSITS WITH A LICENSED BANK Group
CASH AND BANK BALANCES
NON-CURRENT ASSETS HELD FOR SALE
NON-CURRENT ASSETS HELD FOR SALE (CONT’D) Impairment assessment of asset held for disposal
SHARE CAPITAL
SHARE CAPITAL (CONT’D)
SHARE CAPITAL (CONT’D) Warrants 2016/2021 (Cont’d)
RESERVES
BORROWINGS
BORROWINGS (CONT’D)

Lease liabilities
Term loans

BORROWINGS (CONT’D) Securities
OTHER PAYABLES
DEFERRED TAX LIABILITIES
DEFERRED TAX LIABILITIES (CONT’D)
TRADE PAYABLES
REVENUE
EMPLOYEE BENEFITS EXPENSES
TAXATION
EARNINGS PER ORDINARY SHARE Basic earnings per ordinary share :-
DIVIDEND
RELATED PARTY DISCLOSURES Significant Related Party Transactions
RELATED PARTY DISCLOSURES (CONT’D) Compensation of the key management personnel
SEGMENTAL REPORTING
SEGMENTAL REPORTING (CONT’D) Integrated
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS (CONT’D)
FINANCIAL INSTRUMENTS (CONT’D) (b) Fair Values of Financial Instruments
FINANCIAL INSTRUMENTS (CONT’D) (d) Classification of Financial Instruments
CAPITAL COMMITMENT
CONTINGENT LIABILITIES

The Group and the Company have classified their biological assets measured at fair value within level 3 in the fair value hierarchy. If the estimated expected sales prices for the group's and the company's biological assets had been 5%. The Group's and the Company's exposure to liquidity risk arises primarily as a result of mismatching maturities on financial assets and liabilities.

None of the Group's and the Company's trade receivables that are neither past due nor impaired have been renegotiated during the financial year.

GUARANTEES

MATERIAL OUTSTANDING LITIGATION

MATERIAL OUTSTANDING LITIGATION (CONT’D)

SIGNIFICANT EVENTS DURING AND AFTER THE REPORTING DATE
CAPITAL MANAGEMENT
COMPARATIVE FIGURES

The Group's and the Company's primary objective in managing their capital is to maximize value by optimizing the capital structure and improving capital efficiency, while maintaining an adequate level of liquidity. The Group and the Company strive for a capital structure with an optimal mix of debt and equity to achieve efficient costs of capital with a view to maintaining financial flexibility for their business needs and investing in future growth. The Group and the Company regularly review and manage their capital structure in accordance with changes in economic conditions and its future business plan.

The debt ratio at the end of the accounting period was as follows.

STATUTORy DECLARATION

STATEMENT by DIRECTORS

ANALySIS OF

SHAREHOLDINGS

30 LARGEST SECURITIES ACCOUNT HOLDERS (BASED ON THE RECORD OF DEPOSITORS) (WITHOUT AGGREGATING SECURITIES FROM DIFFERENT SECURITIES ACCOUNT BELONGING TO THE SAME PERSON)

KENANGA NOMINEES (TEMPATAN) SDN. BHD

AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD

CGS-CIMB NOMINEES (TEMPATAN) SDN. BHD

AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD

UOB KAY HIAN NOMINEES (ASING) SDN. BHD

PUBLIC NOMINEES (TEMPATAN) SDN. BHD

30 LARGEST SECURITIES ACCOUNT HOLDERS (BASED ON THE RECORD OF DEPOSITORS) (CONT’D) (WITHOUT AGGREGATING SECURITIES FROM DIFFERENT SECURITIES ACCOUNT BELONGING TO THE SAME PERSON)

MAYBANK NOMINEES (TEMPATAN) SDN. BHD

SHAREHOLDINGS DISTRIBUTION SCHEDULE (BASED ON THE RECORD OF DEPOSITORS)

ANALySIS OF SHAREHOLDINGS

LIST OF SUBSTANTIAL SHAREHOLDERS (BASED ON THE REGISTER OF SUBSTANTIAL SHAREHOLDERS) NO. OF SHARES HELD

LIST OF DIRECTORS’ SHAREHOLDINGS (BASED ON THE REGISTER OF DIRECTORS’ SHAREHOLDINGS) NAME OF DIRECTORS

ANALySIS OF WARRANTS HOLDINGS

30 LARGEST WARRANT ACCOUNT HOLDERS (BASED ON THE RECORD OF DEPOSITORS)

TA NOMINEES (TEMPATAN) SDN. BHD

CGS-CIMB NOMINEES (TEMPATAN) SDN. BHD

WARRANTS HOLDINGS

30 LARGEST WARRANT ACCOUNT HOLDERS (BASED ON THE RECORD OF DEPOSITORS) (CONT’D) (WITHOUT AGGREGATING WARRANT FROM DIFFERENT WARRANT ACCOUNTS BELONGING TO THE SAME REGISTERED WARRANT

LIST OF

TOP TEN PROPERTIES

NOTICE OF ANNUAL GENERAL MEETING

ORDINARY BUSINESS

SPECIAL BUSINESS

This disclosure is made in the annual report on the breakdown of the total value of all transactions carried out pursuant to the proposed renewal of the mandate of the existing shareholders during the financial year based on the following information:-. AND THAT the Directors of the Company are hereby authorized to complete and perform all such acts and things as they shall deem fit or necessary to give effect to this Ordinary Resolution.” THAT the directors are authorized in accordance with sections 75 and 76 of the CA 2016 and subject to the approval of the relevant governmental and/or regulatory authorities to issue and allot shares in the company from time to time and on such terms and conditions and for such purposes as the directors think fit, provided always that the total number of shares issued pursuant to this resolution shall not exceed twenty percent (20%) of the total number of issued shares of the Company that are currently to be used. until 31 December 2021 as authorized by Bursa Securities pursuant to Bursa Malaysia Berhad's letter dated 16 April 2020 to grant additional provisional measures to listed issuers and thereafter not exceeding ten percent (10%) of the total of the number of issued shares of the company for the time of issue and such authorization pursuant to this resolution shall remain in effect until the conclusion of the 38th general meeting or when required by law, whichever occurs first, AND THAT the directors are authorized to obtain approval for the listing and listing of additional shares issued on Bursa Securities.".

To carry out any other business for which due notice must be given in accordance with the company's articles of association and/or CA 2016.

NOTICE OF

ANNUAL GENERAL MEETING

A proxy may, but need not, be a member and there shall be no limitation as to the qualification of the proxy. This authorization will, unless it is revoked or changed by the Company's general meeting, expire at the Company's next general meeting. Refer to section 2.4 of the circular to shareholders of 30 July 2021 for more information.

The proposed ordinary resolution 8 is proposed for the purpose of renewing the general mandate for the issuance of shares by the Company according to articles 75 and 76 of CA 2016.

LAY HONG BERHAD

A member of the company who has the right to participate and vote has the right to appoint another person as his proxy, who exercises all or some of his rights to participate, participate, speak and vote instead. A member of the company may appoint a maximum of two (2) proxies to attend the general meeting, provided that the member determines the proportion of members' shares represented by each proxy, otherwise the appointments are invalid. If a member is an authorized agent as defined in the Securities Industry (Central Depositories) Act 1991, it may appoint at least one agent for each securities account it holds with ordinary shares of the company in the credit of the said securities account. .

Where a member of the Company is an authorized exempt nominee who holds common shares in the Company for multiple beneficial owners in a securities account ("omnibus account"), there shall be no limit on the number of proxies that the exempt authorized nominee may assign in respect of any omnibus account it maintains.

ANNUAL REPORT