DR CHIA SONG KUN and family
Flagship: QL Resources Bhd
Net worth: RM3bil
FORMER mathematics lecturer-turned-entrepreneur Chia, 67, is upping the game for QL Resources Bhd with a foray into the consumer market.
In April last year, QL Resources announced its tie-up with Japan’s FamilyMart convenience store chain as part of a “long-term investment” to expand its food business amid regional economic integration.
The agro-food major is now the master franchisee of FamilyMart in Malaysia for the next 20 years and plans to build 60 stores annually between now and 2021,
To date, QL Resources has opened two FamilyMart convenience store outlets in Wisma Lim Foo Yong, Kuala Lumpur, and Mid Valley City, with two more scheduled for opening in Taman Tun Dr Ismail and KLIA2.
Management has guided that each store has a capital expenditure requirement of RM250,000-RM350,000 and it has earmarked up to RM20mil a year for store expansion.
The company looks to differentiate itself from its peers by focusing on ready-to-eat meals, currently only available at selected stores in the cities.
While the venture opens up bigger growth opportunities in the consumer market for the group, it will take several years of gestation before turning profitable.
Established in 1987, QL Resources is the largest “surimi” fish-paste maker in Asia, producing 35,000 tonnes annually. The product is used widely in processed food. It also operates one of the largest poultry farms in South-East Asia, producing 4.5 million eggs daily and 40 million day-old chicks a year.
Both marine products and livestock farming account close to 90% of total sales, with the rest coming from its palm oil business via 42.5%-associate Boilermech Holdings Bhd.
The Chia family controls 42.07% of QL Resources through privately-held CBG Holdings Sdn Bhd, with Farsathy Holdings owning another 12.08%.
The company is noted to be well run with stable earnings.
QL Resources, via Ruby Technique Sdn Bhd, also has a 5.05% stake in property developer Sunsuria Bhd.
The family’s wealth in 2016 was estimated at RM3.1bil.
Source: The Star