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1.0 BACKGROUND OF COMPANY
1.1 HUPSHENG INDUSTRIES BERHAD
Hupsheng Industries Berhad is an industrial company, along with its subsidiaries, engaged
in the manufacture and sale of biscuits and other related products principally in Malaysia. The
company was established in year 1958. The registered headquarters of the company is located in
Batu Pahat, Johor. The company is publicy traded on the Kuala Lumpur stock exchange under the
ticker symbol HUPSHENG. Hupsheng is one of Malaysia’s leading biscuits manufactures. The
company’s products include cream crackers, Marie biscuits, sandwich, cookies and assorted
biscuits under the brand name Kerk, Ping Pong, In-Comix, Ong San Yong and Wang Wang. The
company is ISO 9001:2000 certified to quality management system. It markets its products in Asia,
Africa, Oceania, Europe and North America. Hupsheng operates as a parent company of
HupshengHoon Yong Brothers Sdn Bhd., which is engaged in sales and distribution of biscuits,
confectionery and other food stuff, Hupsheng Perusahaan Makanan Sdn.Bhd., which is involved
in the manufacturing of all its products from a factory located in Tongkang Pecah, Batu Pahat,
Johor.
1.1.1 BUSINESS SUMMARY
The principal activity of the company is investment holding. The principal activities of the
subsidiaries are the manufacture and sale of biscuits and confectionery products.
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1.1.2 DESCRIPTION AND HISTORY
The group is one of the leading players in the biscuits market in West Malaysia. The group,
which is was founded by four brothers, was awarded the ISO 9002 certification in 1995. Its
subsidiary, Hupsheng Perusahaan Makanan (M) Sdn. Bhd. (HSPM), manufactures all its products
from a factory located in Tongkang Pecah, Batu Pahat, Johor. All the main raw materials (flour,
sugar, refined bleached deodorized palm (RBD) olein, RBD palm oil, biscuit tins, biscuits
wrappers and cartoons) are sourced locally. The factory has six production lines with combined
annual output of 30,622 m/t and production capacity of 53,022 m/t in year 2001. The Group’s
products are distributed locally by HupshengHoon Yong Brothers Sdn.Bhd. (HSHY), covering the
Klang Valley, Kota Bharu, Kuantan, Ipoh, Butterworth and Alor Star. Other distributors are
located in West Malaysia (Kuala Lumpur) and East Malaysia (Tawau, Sandakan, Kuching,
Bintulu, Miri and Sibu). The Group also has a network of 69 agents in 40 countries to market its
products. For the financial year ended on December 12, 2001, approximately 27% of the Group’s
products were exported. The sweetened and unsweetened biscuits manufactured are marketed
under the trademarks ‘Kerk’ and ‘Cap Ping Pong’.
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1.2 HWA TAI INDUSTRIES BERHAD
Hwa Tai Industries Berhad is one of the premier and longest established biscuit
manufacturers in Malaysia. Established in 1962 and listed on the Stock Exchange Malaysia in
1992. Since then, this fast expanding company has grown to be one of the largest players in the
biscuits industry in the country and produces a fine, wide range of superior quality biscuits.
The company operates through the manufacturing and trading segments. Its products include crackers,
cookies, assorted biscuits, cakes, and cream sandwich, which are marketed under the brand name of Hwa
Tai and Luxury. The company was founded in 1962 and is headquartered in Seri Kembangan, Malaysia.
Hwa Tai Industries Berhad is one in all the premier and longest established biscuit makers in Asian
country. Established in 1962 and stand with a name of Hwa Tai Food Industries Sdn Bhd which
existed until 1974 and listed on the exchange Asian country on 1992. The registered
headquarters of the company is located in Balakong, Selangor Darul Ehsan. The company is
publicly traded on the Kuala Lumpur Stock Exchange under the ticker symbol HWATAI. Since
then, this quick increasing company has big to be the most important players within the biscuits
business within the country and manufacture a fine, big selection of superior quality biscuits.
The company’s product is found domestically from little sundry retailers to huge
hypermarkets, fast-food chains, airlines and alternative mass consumption industries beneath
the logos Hwa Tai, Luxury, Lucia, Palmers, Organic Luxury, D-Layer, Cracker and, Cream
Sandwich Biscuits, crisp fatless, D’Licious Cookies, World & Generation and Oatmeal Cookies.
Hwa Tai is additionally concerned within the commercialism of confectioneries, the
availability of construction and insurance agency services, and property holding activities. The
corporate has distribution sites placed in Kelantan, Perak, Selangor, Kuala Lumpur, Johor, Pahang
& Terengganu, Perlis, and Kedah & Penang. It exports its merchandise in North America, North
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East Asia, Africa, Oceannia, West Asia, South East Asia, South Asia and Europe. The corporate
also has absolutely integrated ISO 9001:2000 and MS ISO 9002 certification for food and safety
quality management. It operates below the supervising and management of Soo Thien Ming,
Chairman. Hwa Tai Industries Berhad pride of it wonderful innovation and prime quality product
that have firmly entrenched us not solely in Asian country however conjointly in over 50 countries
round the world. It keenly concerned within the integrated provide chain of their product, from
