Reference is made to the Company's first announcement dated 23 June 2022 and the latest quarterly update announcement dated 28 May 2026 in relation to the MOU entered into between GGSB and MCB.
The Board of Directors of the Company wishes to provide the following additional information on the status of the MOU.
The MOU officially expired on 22 June 2025. Following its expiry, the Company and MCB have held several meetings regarding the continuation of their collaboration. Both parties were aware of the expiry of the MOU. However, discussions on the renewal or replacement of the MOU were deferred as MCB was undergoing a transition in its top management, including the appointment of a new Ketua Pengarah and Timbalan Ketua Pengarah.
Notwithstanding the expiry of the MOU, MCB has continued to provide support to the Company through its working and technical committee. MCB has also appointed a new officer to oversee matters relating to GGSB and to serve as the main contact person for technical support, coordination, and cocoa development activities. The Company has been enrolled in MCB's "Program Galakan Tanaman Koko Sektor Perladangan", under which MCB will provide 5,000 cocoa seedlings for planting.
Pending the finalisation of MCB's new management structure, MCB's technical committee remains committed to providing technical assistance and agronomic support and advisory relating to cocoa cultivation.
In April 2026, an official meeting titled "Mesyuarat Penilaian Impak & Hala Tuju Pasca-MOU Projek Pembangunan Ladang Koko, Ladang Bukit Gangis, Mantin, Negeri Sembilan" was held to evaluate the progress of the project and to discuss the future direction of the Company's cocoa plantation development following the expiry of the initial MOU, taking into consideration prevailing industry conditions and global challenges.
Moving forward, the Company intends to focus on the production of cocoa seedling rootstocks for short term which are currently in strong market demand and cocoa planting in long term. This initiative is expected to support MCB's target of producing 1 million cocoa seedlings in 2026 while generating sustainable cash flow for the Company.
There is no material financial impact on the Group arising from the expiry of the MOU, as all costs and expenditures relating to the cocoa plantation project have been borne by the Group. MCB's role has primarily been to provide technical expertise, agronomic guidance, and other non-financial support.
There is also no significant operational impact on the Group, as MCB continues to provide technical assistance and support through its working and technical committees while discussions on future collaboration are ongoing. Furthermore, the Company remains eligible to participate in MCB's cocoa development programmes and initiatives.
The Company will announce further development pertaining to the MOU as and when necessary.
This announcement is dated 3 June 2026.