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MG AGRIWORKS

Creating technology to profit from DURIAN

COMPANY DETAILS

Summary

Technological Breakthrough – Immunotherapy is a type of cancer treatment that triggers our immune system to fight cancer. At MG AgriWorks, we use immunotherapy to treat the deadliest diseases impacting durian crop yields and successfully address the pain point facing the industry.

After making oil palm a success story, the Malaysia Government is shaping durian towards another major commodity export for the country. Today, the durian sector in Malaysia is the jewel in the crown.

MG AgriWorks is a biotech company focussing on durian. We aim to improve durian crop yields through applications of biotech. Our vision is to build the most valuable technology-based company in the durian industry.

As a biotech company specializing in durian, we are unique.

We are a wholly-owned subsidiary of Virgin Greens X which is a BioNexus Status company in crop biotechnology since 2015. BioNexus Status is a special status awarded by the Malaysia Government to qualified international and local companies that participate in and undertake value-added biotechnology activities.

We have both the software (people) and hardware (research facilities) to support our growth in the multi-billion durian market. Our team has more than 20 years of experience in agricultural biotech and is supported by technical personnel including biotechnologists, microbiologists and agronomists.

By leveraging our proprietary technology to address the pain points facing the industry when trying to boost durian crop yields, we have grown our customer base since our inception in 2020 and the Company is already generating revenue and breaking even. We have formed a strategic partnership with Pahang Fruit Farmers Association and have made major inroads into Pahang including Raub, which is dubbed the “Home of Musang King”.

We are now raising RM3,000,000 to fuel our expansion plans and taking the Company to the next level. We will utilize the funds mainly in marketing, business development and ongoing R&D activities:

  • Further to our presence in Peninsular Malaysia, we plan to enter East Malaysia and markets overseas.
  • Capitalizing on our proprietary technology, we are preparing the Company to participate in durian farming.
  • As a tech company, continuous product development is the key to success.

MG AgriWorks provides an excellent opportunity to invest in agricultural biotech and profit from the exponential growth of the highly lucrative durian market.

Problem

There are 3 main problems affecting durian crop yields: 

First, severe diseases caused by Phytophthora palmivora (Pp-pathogen) are likened to cancer when it comes to durian farming as these diseases contribute to a high mortality rate and result in more than 30% yield loss. Pp-pathogen is considered the most destructive and the No.1 killer in durian farming. 

Second, incorrect fertilization leads to lower crop yields, more tree diseases and poor fruit quality. 

Third, durian trees grown in mixed orchards have many insect pest issues such as attacks of fruit borers.

Solution

Our solution is the range of proprietary biotech products that we developed for addressing the problems affecting durian crop yields. It consists of the following: 

▪ MG BioFormula™No.2 triggers the immune system of durian trees to fight diseases caused by Pp-pathogen. 

▪ MG BioGuard®3.0 is specifically formulated to meet the nutrient requirements of durian.

▪ MG PestGuard® provides a 100% organic solution to insect pest control in durian farming. 

The technology behind MG BioFormula™No.2: 

▪ Durian trees have the ability to recognize the microbial activities induced by the multi-strain microbial inoculants contained in MG BioFormula™No.2 and trigger an immune response.

▪ This phenomenon is called systemic acquired resistance or SAR that helps durian trees resist or recover from diseases caused by Pp-pathogen. 

▪ Once an infected tree is treated with MG BioFormula™No.2, interaction occurs as the microbial inoculants release numerous functional substances which induce the tree’s SAR  and activate its defense system. 

▪ As a result of activation, durian trees will produce enzymes that directly suppress Pp pathogen.

Product

The three proprietary biotech products, namely MG BioFormula™No.2, MG BioGuard®3.0 and MG  PestGuard® are collectively referred to as “3 Keys” by us, meaning “3 Keys to fruitful durian farming”. With the proprietary “3 Keys” technology, we target to boost durian crop yields by 50%.

1st Key - MG BioFormula™No.2 is a multi-strain microbial formulation designed to treat severe diseases of durian trees caused by Pp-pathogen by inducing microbial activities that can be recognized by durian trees and trigger an immune response. 

2nd Key - MG BioGuard®3.0 serves three main functions: 

▪ It is formulated with a cocktail of selected microorganisms that control the growth of pathogens.  

▪ It is also formulated with NPK bacteria that help durian trees absorb nitrogen, phosphorus and potassium better.  

▪ It contains both humic and fulvic acids that improve soil structure and help healthy tree growth. 

3rd Key - MG PestGuard® is a microbial-based product for broad-spectrum pest control in an organic way by working biologically to increase the natural resistance of plants to pests. The formulation contains biological substances and performs various functions including antifeedant or antinutrition,  insecticidal and repellent.

Traction

We have both the software (people) and hardware (research facilities) to support our growth in the multi-billion durian market. Our team has more than 20 years of experience in agricultural biotec and is supported by technical personnel including biotechnologists, microbiologists and agronomists. 

Through a Licence Agreement with Virgin Greens X, we have been granted the rights to exclusively manufacture a range of biotech products targeting durian crop yields by addressing the pain points facing the industry, exclusively market the range of products to the durian farming community worldwide, and engage our R&D to further improve the existing technology and create more intellectual property (IP).

Our mission to boost durian crop yields is a big deal considering that durian farming is the jewel in the crown when it comes to agriculture in Malaysia these days. 

▪ From the 2020 Crop Statistics released by the Malaysian Government, nearly half of the total fruit crop area is planted with durian, i.e. 76,895 hectares or 190,012 acres. 

▪ Based on the same data source, the average yield per acre per year works out to be around  2,500 kg. 

▪ Assuming RM 35 per kg, an acre can contribute RM 87,500 per year. The assumption is reasonable considering that the price of Musang King durian reached over RM100 per kg in  2017. 

▪ By applying our proprietary technology, we target to increase the average yield per acre per year by 50% to 3,750 kg or RM 131,250. 

By leveraging our proprietary “3 Keys” technology, we have grown our customer base since our inception in 2020 and the company is already generating revenue and breaking even. We look forward to growing the company rapidly on the back of the exponential growth of the durian market.

We have formed a strategic partnership with the Pahang Fruit Farmers Association as the State of Pahang is important when it comes to durian farming in Malaysia. We have made major inroads into various districts of Pahang including Bentong, Jerantut as well as Raub, which is dubbed the “Home of Musang King”.  

As a biotech company established to focus on durian, we are unique.

Customers

We build our customer base from the durian farming community. We have so far focussed on  Peninsular Malaysia and are planning to enter East Malaysia and markets overseas. Many farmers in  Malaysia are now turning their land into planting durian because it is more lucrative and the global consumption demand is there. Compared with oil palm, a hectare of Musing King trees can yield much more in monetary terms.

Business Model

We generate revenues and make profits from two sources: 

▪ Product sale - Market our proprietary “3 Keys” technology to the durian farming community for  boosting crop yields; and 

▪ Biotech farming - Participate in durian farming by leveraging our “3 Keys” technology and sell the fruit in the open market. We will either acquire durian orchards or work with orchard owners.

Market

Global trade for durian is expected to grow to US$ 25 billion by 2030, driven primarily by demand from China. (Source: UPM) 

Malaysian durian exports grew by 143% between 2012 and 2017 and in the same period, the price increased by 530%. (Source: UPM) 

Thailand exported 402 million kg of durian in 2016 accounting for 95% of global trade, followed by  Malaysia at 4%. (Source: UPM) 

In the five years since 2016, the value of durian exports abroad has grown by RM74.8 million or 107 percent, said Deputy Agriculture and Food Industries Minister I Datuk Seri Ahmad Hamzah. (Source:  The Star) 

Malaysian durians had been successfully exported to 22 countries/territories with five recording the highest exports, namely Hong Kong, China, Singapore, the United States and Australia based on the  2020 records. (Source: The Star) 

Competition 

Among various issues affecting durian crop yields, diseases caused by Pp-pathogen are considered most challenging. 

After years of application of chemical fungicides (such as Bayer’s Aliette, Syngenta’s Ridomil) for controlling diseases caused by Pp-pathogen, durian farmers have found the efficacy of such products materially short of their expectations. 

Problem Statement by UPM:  

“Stem canker caused by P. palmivora is one of the most important disease of durian (Durio zibethinus  Murr.) in Malaysia and has a worldwide distribution. Incidence and severity are high due to the planting of highly susceptible clonal materials, high rainfall and poor agronomic practices. Durio zibethinus Murr. is susceptible to attacks by pests and disease-causing microorganisms at all stages of the crop phenology. Farmers routinely use various chemical fungicides to control soilborne pathogens, but they are not very effective. Realizing these facts, a new effective biological fungicide  to control soilborne pathogens is needed in the local market.”

UPM’s problem statement above has highlighted the unsatisfactory performance of chemical-based products for treating Pp-pathogen and the urgent need of an effective biological product to tackle the problem. 

Why “3 Keys” can stand out: 

▪ Our proprietary “3 Keys” technology consisting of MG BioFormula™No.2, MG BioGuard®3.0  and MG PestGuard® is bio-based and performs better. 

▪ The products under “3 Keys” are all 100% organic and conform to MyGAP.

▪ MyGAP is the Malaysian version of the United Nations (UN) certification program called  Good Agricultural Practices (GAP) which regulates the use of chemicals and plays an important role in export of agricultural products among countries. 

▪ “3 Keys” stands out from the chemicals and has huge market potential as apart from being more effective, GAP promoted by the UN is generally agreed to be the future of farming.

 

Funding

We expect to raise RM 3,000,000 in this round of equity crowdfunding exercise for our expansion plans.

We target to prepare for an initial public offering (IPO) in the 4th quarter of 2025. 

Pre-Live Incentives 

Utilization of Proceeds

(NB Any shortfall or excess in funds allocated for the estimated fundraising expenses will be funded from or used for working capital of the Company.)

Mission

To improve durian crop yields through continuous technological advancements

Vision

To build the most valuable technology-based company in the durian industry 

The Company

Founders and Team

ERIC CHUNG 

Chief Executive Officer 

  • Eric is an agritech entrepreneur and the founder CEO of Virgin Greens X, a BioNexus Status company in crop biotechnology. 
  • He oversees the research and development function of the Company and is responsible for its business strategy and direction. 
  • Since 2002 he has invested and participated in various agricultural projects and filed three agritech-related patents. 
  • Before that, he was with a Fortune 500 multinational chemical company.
  • He holds a Bachelor of Science degree and a Bachelor of Economics degree from Australian  National University and is a member of CPA Australia. 
  • In 2017 he received the Entrepreneur Award in the Category of Business Foresight under  SME & Entrepreneurship Business Award: Premier Edition 2017/2018.  
  • In 2018 he received the Most Influential Sustainable Entrepreneur Award acknowledging remarkable individuals who advocate and practice the Sustainable Development Goals adopted by the United Nations.

YAP POH YEE 

Chief Operating Officer 

▪ Poh Yee is the co-founder and COO of Virgin Greens X, a BioNexus Status company in crop biotechnology. 

▪ She oversees operations, human resources, financials, reporting and compliance of the  Company. 

▪ She has over fifteen years of experience in the field of agricultural biotech.

▪ Prior to involving in agricultural biotech, she was with an information technology company listed on the Main Market of Bursa Malaysia. 

▪ Before that, she was with a construction company listed on the Main Market of Bursa  Malaysia.

Press

Top 10 Of Asia – https://virgingreensx.com 

The Star : STARBIZ – https://virgingreensx.com 

Interview with Hong Kong Institute of Certified Public Accountants – https://virgingreensx.com

Disclaimers

“No shares will be allotted or issued based on this document after six months from the closing of the offer  period.” 

“This issue, offer or invitation for the offering is a proposal not requiring authorization of the Securities  Commission under section 212(8) of the CMSA 2007.” 

“This document has not been reviewed by the Securities Commission Malaysia. The Securities  Commission does not recommend nor assumes responsibility for any information including any statement, opinion or report disclosed in relation to this fundraising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any  liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the  information disclosed.”

 

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