732762-T - teo seng capital berhad

732762-T

• Corporate Structure
• Key Milestones
• Board of Directors
• Business Model
• Key Competencies
• Competitors
• Financial Data (2006 – 2010)
• Listing Details

CORPORATE STRUCTURE
LAYER FARMING
EGG TRAYS FEEDMILL ANIMAL HEALTH
PRODUCTS

KEY MILESTONES
Date
Description of Events
1978 Our Group began with the rearing of broiler chickens in Batu Pahat, Johor under a sole proprietorship
1984 Expanded our poultry farming business in Yong Peng, Johor by acquiring a broiler farm of 60,000 chickens and
later increasing it to 90,000 chickens within one (1) year
1992 Ceased broiler farming operations in all of our farms
Converted the existing three (3) broiler farms in Yong Peng into pullet farms
Commenced layer farming and constructed our 1 st layer farm for 120,000 chickens
1994 Original founders sold 51% equity stake to Leong Hup Holdings Berhad (“LHH”)
1995 Started testing chicken farming under the Closed House System (“CHS”) and later converted all of the layer
farms into the CHS of layer farming
Commenced operations in the manufacturing and marketing of paper egg trays
1998 Our Group successfully created our own premium eggs, under the brand name “Happy Egg”
2001/2002 Commenced operations in the manufacturing and marketing of animal feeds, using automated and
computerised auto-mixing technology
2005 Acquired Ritma in the distribution of animal health products. Obtained the sole distribution rights from Bayer
Thai Company Ltd to distribute some of its animal health products in Malaysia, Singapore, and Brunei
Successfully obtained import approval status from the AVA and penetrated the Singapore market to export eggs
Entered into a contract farming agreement with Success Century to produce eggs under contract
2006 Awarded the Award for Excellent Business Achievement by Bayer Thai Company Ltd
2007 Awarded Outstanding Emerging Livestock Award in the 4 th Livestock Asia 2007 Expo & Forum
Ritma obtained the sole distributorship rights from Vetpharm Laboratories (S) Pte Ltd in Malaysia to promote
and executing transaction related to products of Veterinary Pharmaceuticals
2008 TSF was acknowledged by DVS Johor for Maintaining Good Performance in Farming Practice for SALT
Certificates
Ritma was awarded Silver Sales Achievement Award 2007 by Bayer Co. (M) Sdn Bhd- Bayer Environmental
Science
The Company was successfully listed on the Second Board of Bursa Malaysia on 29 October 2008
Acquired Success Century in conjunction with the listing scheme

KEY MILESTONES
Date
Description of Events
2009 Awarded Outstanding Layer Farm Award in the 5 th Livestock Asia 2009 Expo & Forum .
Ritma Prestasi Sdn Bhd (“Ritma”) obtained the distribution rights from Lohmann Animal Health (Malaysia) Sdn
Bhd. (formerly known as Lee Vet Enterprise Sdn. Bhd.) to sell the contracted poultry vaccine products in
Malaysia.
2010 Acquired the indirect subsidiary company, Biotech Consortium Sdn Bhd (“Biotech”) through Ritma, a wholly
owned subsidiary, of Teo Seng Capital Berhad. Biotech is currently dormant.
Acquired the wholly owned subsidiary, Liberal Energy Sdn Bhd (“Liberal”). Liberal is currently dormant.

BOARD OF DIRECTORS
Non-Executive Chairman – Lau Jui Peng
Managing Director – Nam Yok San
Executive Director – Na Yok Chee
Non-Independent Non-Executive Director – Tan Sri Lau Tuang Nguang
(Appointed on 19/11/2009)
Non-Independent Non-Executive Director – Dato’Zainal Bin Hassan
(Appointed on 19/11/2009)
Non - Executive Director – Lau Joo Han
Non- Executive Director – Loh Wee Ching
Independent Non-Executive Director – Choong Keen Shian
Independent Non-Executive Director – Frederick Ng Yong Chiang
Independent Non-Executive Director – Dato’Koh Low @ Koh Kim Toon
(Appointed on 19/11/2009)

BUSINESS
MODEL
since 1992
LAYER
FARMS
TEO SENG
PAPER EGG
TRAY PLANT
INTEGRATED
EGG
PRODUCER
ANIMAL HEALTH
PRODUCTS
since 1995
TEO SENG
FEEDMILL
PLANT
since 2005
since 2001

Layer Farming Process
Purchase of feed for
brooding chickens
Arrival of DOC from Breeder Farm
AUTOMATIC EGG COLLECTION
CONVEYOR BELTS
BROODING FARM
(DOC – 4 weeks old)
Animal health
products
Sale of chicken
manure
PULLET FARM
(5 weeks old to 16 weeks old)
In-house
feedmill
Sale of
old chicken
LAYER FARM
(17 weeks old to 75 weeks old)
Un-graded eggs
In-house
paper mill
AUTO FEEDERS &
NIPPLE DRINKERS
CLOSED - HOUSE SYSTEM
CENTRAL PACKING STATION
(Grading and Packaging)
Fresh Eggs
Premium Eggs
(Happy Egg)
Retail/Wholesale Egg Dealer,
Supermarket/Hypermarket & etc.

Three Stages To The Lifespan of Chickens
Age (weeks) Stage Farm House
0 to 4 weeks (Brooding chicken) Brooding period 2 Brooding farms
5 to 16 weeks (Pullet chicken) Growing period 5 Pullet farms
17 to 75 weeks (Layer chicken) Laying period 10 Layer farms
>75 weeks (Old chicken) Old chicken -
TEO SENG GROUP
• Teo Seng currently producing approximately 1.8 million eggs daily
• Total of 17 farms scatter in Johor

Paper Egg Trays and Environmental Concern
We firstly integrated a plant for
producing environmentally friendly
paper egg trays.
This plant serves to recycle old
newspapers and old magazines,
which would otherwise cause
congestions in the limited dumpsites
around the country.
Hence it not only provides the
packaging needs for our eggs, but
also helps preserving a greener
environment for the future
generations.

Quality Feed Production for Generic and Premium Eggs
Because we know that only healthy chickens lay eggs with better quality
and higher nutritional content, we then set up our own feedmill plant to
produce feed based on our own formulations.
Besides generic eggs, we also produce our premium ‘Happy Eggs’ based
on special formulation.

Supplies of Animal Health Products
E
The acquisition of Ritma Prestasi Sdn
Bhd was done with the goal of providing
the Group with a dedicated subsidiary to
source and supply animal health
products required for the Group’s
operations.
Hence it affords the Group better
control over the supply of animal health
products.

ALL-IN
ALL-OUT
SYSTEM
E
QUALITY
FEED
PRODUCTION
CLOSED
HOUSED
SYSTEM
KEY COMPETENCIES
QUALITY
CONTROL &
QUALITY
PRACTISES
AUTOMATED
TECHNOLOGY
S.A.L.T.
SCHEME

Scattered Farms and All-In-All-Out (AIAO) System
With the belief that there is always an ideal equilibrium for living beings and
the environment in the nature, we embrace the concept of harmony for our
chickens and their surroundings.
This means that we always strive for reaching an optimal proportion of
chickens in a particular territory. And this answers to the question why we
have a total of 17 scattered farms in Johor, instead of having millions of
chickens in only one farm!
What proves this theory practical and beneficial is the concept of All-In-All-
Out System, which has been adopted in the poultry industry world-wide, but
is still an unfamiliar approach to many farmers in Malaysia.

Closed-House System
Despite the success of AIAO
system, we do not spare the
chance to keep improving our
farm management.
Here it comes the idea of
Closed-House System, where
the farms are fully covered,
isolating our chickens from
other predators and rodents,
such as snakes, rats and wild
birds, which can be the
disease carriers, and are
harmful to the chickens and
eggs.

Good Farming Practices Scheme (SALT)
How is our excellent farm
management being justified? It must
be carried out by some national
authorities.
Rest assured that our farms are
certified with the Good Farming
Practices Scheme (SALT) by the
Department of Veterinary Services
Malaysia.
SALT is awarded to us for producing
quality and safe eggs for
consumption based on the good
animal health management, good
bio-security management, good
infrastructure, and prudent use of
drugs.

Traditional Business with Advanced Technology
In addition to the AIAO and Closed-House systems, we
also adopt several types of machinery in order to
achieve greater efficiency, as well as to enhance
productivity.
These includes the auto-feeders and auto egg
conveyors in the farms, grading and packing machines
in the packing stations, paper forming machine in
paper egg tray plant, and auto miller and mixer in
feedmill plant.

Quality Control & Quality Practices at Farms
Shower Rooms
• Good
Husbandry
Management
• Bio-Security
Environment
Vehicle Wheel-dip and Spray

Quality Control & Quality Practices at Packing Stations
• Quality Control – Egg Grading Process
Egg Grading- UV Disinfection
• Short Product Delivery Cycles
Central Packing Stations
Egg Grading- QC Control

COMPETITORS
LISTED COMPANIES
SUBSIDIARIES OF
LISTED COMPANIES
PRIVATE COMPANIES
LAY HONG BERHAD
LTKM BERHAD
QL FEEDINGSTUFFS
SDN BHD
SINMAH POULTRY
FARM SDN BHD
CHUAN HONG POULTRY
FARM SDN BHD
LIAN FOO POULTRY
FARM SDN BHD
TPC PLUS BERHAD
FFM FARMS SDN BHD

FINANCIAL DATA (2006 – 2010)
Proforma Group
Basis
Financial Year (31.03)
2006 2007 2008 2009 2010
RM’000 RM’000 RM’000 RM’000 RM’000
Revenue 101,264 112,641 159,343 181,342 167,961
PBT 13,270 11,202 14,870 14,418 18,752
PAT 9,962 8,950 12,527 12,618 15,157
Paid-up Capital of
Proforma Group
(‘000)
200,000 200,000 200,000 200,000 200,000
Gross EPS (sen)* 6.64 5.60 7.44 7.21 9.38
Net EPS (sen)* 4.98 4.48 6.26 6.31 7.58
*Note: Calculated based on paid-up capital of Proforma Group of 200,000,000 shares

LISTING DETAILS
Issuer
Stock Name
/Code
Listing
Teo Seng Capital Berhad
Teo Seng, 7252
Bursa Malaysia Securities Berhad, Main Market
Enlarged Share
Capital
200,000,000 shares at par value of RM0.20 each
Date of Listing
29 October 2008

24.09.2010