PETALING JAYA: Xian Leng Holdings Bhd has proposed to diversify its existing business to include the trading and distribution of edible bird’s nest.
The new business is to be carried out by wholly owned subsidiary, Xian Leng EBN Trading Sdn Bhd.
Xian Leng EBN today entered into a management service agreement with edible bird’s nest industry expert Tan Wei Chun for the provision of management services to facilitate the day-to-day business operations of Xian Leng EBN.
At present, Xian Leng and its subsidiaries are principally involved in the commercial captive breeding of Asian Arowanas, stingrays and other ornamental fishes, which are the main revenue driver for the group.
However, the unpredictable weather conditions in Malaysia such as extremely hot weather and occurrence of a tropical depression in recent years have impacted the productivity of the group’s fish-breeding activities, with revenue generated from the fish-farming activities declining 31.6% in FY2019.
Xian Leng anticipates the proposed diversification would be one of the major contributors of the group’s revenue in the future.
It is seeking prior approval from its shareholders for the proposed diversification at an EGM to be convened.
The global market for edible bird’s nest estimated to be worth RM10.2 billion annually, and Malaysia is currently the second-largest producer with RM1.5 billion in sales.
