Compugates enters collaborative agreement for agarwood business

COMPUGATES Holdings Bhd’s indirect wholly owned subsidiary, Compugates Perak Sdn Bhd (CPSB), has today entered into a collaboration agreement for the development, marketing and promotion of the agarwood business in Malaysia.

It told Bursa Malaysia in a filing today that CPSB is partnering Mega Agarwood Trading (M) Sdn Bhd, the major shareholders of Mega Agarwood Trading KY Loh and TK Yeo, a business agent for agarwood dealing. 

CPSB shall appoint Mega Agarwood Trading to be the technical party to inoculate, harvest and distillate the agarwood trees, while Loh shall be fully responsible for the sales and operation of CPSB.

The profit-sharing scheme based on profit before tax shows CPSB taking 70% of the earnings, while Loh and Yeo take 25% and 5% respectively.

The collaboration agreement is renewable on a year-to-year basis.

Compugates said the collaboration agreement is expected to have positive financial impact on the future earnings of the group as it will enable it to have access to a large customer base which in turn will generate revenue for the group. — TMR / pic source: anti-dna.com