Life Water Berhad (Malaysia)

The Company was incorporated in Malaysia under the Companies Act 2016 on 20 January 2023.
The Company is principally engaged in investment holding activities and through subsidiaries, the company are principally a manufacturer of beverages namely drinking water and carbonated drinks.
2001 - Liaw Hen Kong, Chin Lee Ling, Tan Hwong Kuen and Lim Young Piau collectively acquired the entire shareholding in Life Water Industries in 2001.
2002 - Life Water Industries commenced operations as a manufacturer of drinking water in Megah Light Industrial Estate, Sandakan (“Sandakan Megah Plant”), a rented premises. The company started first drinking water manufacturing line at Sandakan Megah Plant. In first calendar year of operation, the compamy produced approximately 7 million litres of drinking water under “K2” brand. The company had PET blow moulding machines for the manufacture of plastic bottles for drinking water. The company also commenced contract manufacturing of drinking water for Gentingmas Sdn Bhd, a supermarket in Sandakan under private label brands.
2003 - The company expanded portfolio of beverages to carbonated drinks and purchased first carbonated drinks manufacturing line at the Sandakan Megah Plant with an annual production capacity of approximately 3 million litres. This was to complement drinking water products. The company launched “K2” brand of flavoured carbonated drinks.
2006 - The company acquired a 1.93-acre land together with a single storey building and a store structure located along Jalan Lintas Sibuga, Sandakan (“CL No. 075356375”) to set-up second manufacturing facility which is later referred to as Sandakan Sibuga Plant 1.
2008 - To cater to the growth in demand, the company purchased a semi-automated drinking water manufacturing line for Sandakan Megah Plant with an annual production capacity of drinking water of approximately 29 million litres. The company also set-up distribution centres in Lahad Datu i.e. Lahad Datu DC 1 and Inanam, Kota Kinabalu to cater to the growth in demand in these areas.
2009 - The company commenced renovation on the existing buildings at CL No. 075356375 to transform into a factory building and office i.e. Sandakan Sibuga Plant 1. The company launched “Sasa” brand of drinking water as part of strategy to penetrate the Kota Kinabalu market for drinking water. Life Water Marketing, Syarikat Maju Sasa, and Syarikat Rasa Kool commenced operations as the sales and marketing arm of our Group. Since 1 July 2023, the business activities of Syarikat Maju Sasa and Syarikat Rasa Kool has been transferred to Life Water Marketing as part of our Group's strategy to streamline sales and marketing operations.
2010 - The company completed the renovations of Sandakan Sibuga Plant 1 and commenced relocation of carbonated drinks manufacturing line from Sandakan Megah Plant to this said plant. The company acquired another piece of land measuring 2.34 acres along with a single storey store building at CL No. 075356366 next to CL No. 075356375 for future expansion of Sandakan Sibuga Plant 1. Green Borneo Industries, subsidiary, was incorporated to carry out the manufacture of drinking water in Kota Kinabalu. As part of expansion plans in Kota Kinabalu, the company acquired a 2-storey office building and single storey warehouse on a 2-acre land in KKIP Industrial Zone 4 i.e. KK IZ4 Plant and purchased a fully automated manufacturing line for drinking water with an annual production capacity of approximately 66 million litres.
2013 - The company completed the relocation of carbonated drinks manufacturing line from Sandakan Megah Plant to Sandakan Sibuga Plant 1. Since then, the company have expanded Sandakan Sibuga Plant 1 and as at the LPD, Sandakan Sibuga Plant 1 is our head office and manufacturing facility for drinking water and carbonated drinks. The company purchased an additional fully automated drinking water manufacturing line at our Sandakan Sibuga Plant 1 with an annual production capacity of approximately 77 million litres. As at the LPD, the company have two fully automated drinking water manufacturing lines at Sandakan Sibuga Plant 1 with total annual production capacity of approximately 117 million litres. The company purchased a PET preform injection moulding machine and commenced the manufacture of own PET preforms which will be blow moulded into plastic bottles at Sandakan Sibuga Plant 1.
2014 - The company launched an additional range of carbonated drink, namely an isotonic drink under the “TRITONiC” brand. As an effort to reposition our flavoured carbonated drinks, the company rebranded flavoured carbonated drinks from “K2” to “2more”. The company relocated distribution centre in Kota Kinabalu from rented premises in Inanam tour KK IZ4 Plant. The company acquired a 5-acre piece of vacant land at KKIP Industrial Zone 8 with the intention of expanding our manufacturing facilities, which is later referred to as KK IZ8 Plant 1. The company purchased a new fully automated carbonated drinks line at Sandakan Sibuga Plant 1 with an annual production capacity of approximately 37 million litres replacing the previous production line.
2016 - To meet the increase in demand, the company purchased another drinking water manufacturing line at KK IZ4 Plant with an annual production capacity of 104 million litres. As at the LPD, the company have two fully automated drinking water manufacturing lines at KK IZ4 Plant with total annual production capacity of approximately 109 million litres.
2018 - The company upgraded carbonated drinks manufacturing line to produce fruit drinks. This is for the launch of our calamansi fruit drink under the “kiTZAi” brand. We entered into a contract with Shell Timur Sdn Bhd to contract manufacture bottled drinking water under its “Water2go” private label brand for the Sabah market which is a subsisting agreement. The company commenced the construction of Phase 1 of KK IZ8 Plant 1 comprising a factory building.
2019 - The company completed the construction of Phase 1 KK IZ8 Plant 1 and purchased a PET preform injection moulding machine. As at the LPD, the company have consolidated the manufacturing of PET preforms at KK IZ8 Plant 1. The company started the construction of Phase 2 of KK IZ8 Plant 1 comprising a factory building. The company entered into a contract with Petronas Dagangan Berhad to contract manufacture bottled drinking water under its “Mesra” private label brand for the Sabah market which is a subsisting agreement.
2020 - The company launched K2 Green, new bottle of drinking water which uses recycled plastic resin. With the intention to set-up first drinking water manufacturing facility in the Interior Division of Sabah, the company acquired 2 units of buildings at Borneo Commercial Centre, Keningau in 2020 and 2021, respectively, which is later referred to as Keningau Plant.
2021 - K2 Water, incorporated in 2014, commenced operations as a provider of transportation services solely for Group's distribution of beverages throughout Sabah. This business activity was initially carried out by subsidiary, Life Water Industries, before it was transferred to K2 Water in 2021.
2022 - Upon the completion of construction of Phase 2 KK IZ8 Plant 1 and set up of the manufacturing line in 2021, the company commenced manufacturing of PET preform. Then purchased a drinking water manufacturing line in 2022 and commenced
manufacturing of drinking water activities with an annual production capacity of approximately 134 million litres. Pursuant to the set-up of this additional drinking water production line, Group's total drinking water annual production capacity increased to 389 million litres, as at the LPD. The company commence the construction of Phase 3 of KK IZ8 Plant 1 comprising a warehouse building which was completed in 2023. The company carried out renovations to extend Keningau Plant which was completed in 2023. As at the LPD, the company have obtained the CCC for the building, as well as completed the installation, testing and commissioning of the drinking water manufacturing line. The plant is expected to be operational by December 2024 pending the drinking water licence from MOH. Upon the commencement of the Keningau Plant, Group's total annual production capacity for drinking water is expected to increase by 59 million litres to 448 million litres. The company acquired a warehouse in Lahad Datu i.e. Lahad Datu DC 2 and a warehouse in Sandakan i.e. Sandakan Sibuga DC 1.
2023 - The company purchased an injection moulding machine to manufacture bottle caps for internal use and this commenced operations at KK IZ8 Plant 1 in May 2023. As part of expansion plans in Sandakan, the company acquired 2 pieces of land along Jalan Lintas Sibuga in Sandakan measuring 3.57 acres and 5.82 acres which are intended for future expansion including manufacturing facility, warehouse as well as depot for our trucks which are later referred to as Sandakan Sibuga DC 2 and Sandakan Sibuga Plant.
2024 - As part of expansion plans in Kota Kinabalu, the company acquired a piece of land in Industrial Zone 8 in KKIP measuring 8.16 acres which is intended for future expansion including manufacturing facility and warehouse which are later referred to as KK IZ8 Plant 2. As part of expansion plans in Tawau, the company acquired a piece of land with building in Tawau measuring 1.98 acres which is intended for future expansion including a distribution centre which are later referred to as Tawau DC.
On 8 February 2022, GBI entered into a sale and purchase agreement (“SPA”) with a third party for the purchase of one (1) parcel of land held under CL No. 015586562, District of Kota Kinabalu, Sabah, for a total purchase consideration of RM11.70 million. Subsequently, the parties agreed to renegotiate the deal due to additional time and costs required to comply with the conditions precedent. The total purchase consideration had been revised to RM12.85 million upon supplementary agreement dated 17 July 2023. The transaction was completed on 2 November 2023.
On 8 February 2022, GBI entered into an SPA with a third party for the purchase of one (1) parcel of land held under CL No. 015586571, District of Kota Kinabalu, Sabah, for a total purchase consideration of RM7.00 million. Subsequently, the parties agreed to renegotiate the deal due to additional time and costs required to comply with the conditions precedent. The total purchase consideration had been revised to RM8.15 million upon supplementary agreement dated 17 July 2023. The transaction was completed on 2 November 2023.
On 4 August 2022, LWI entered into an SPA with a third party for the purchase of one (1) parcel of land held under CL No. 075323894, District of Sandakan, Sabah for a total purchase consideration of RM4.00 million. The transaction was completed on 10 February 2023.
On 14 September 2022, LWI entered into an SPA with a third party for the purchase of one (1) parcel of land held under CL No. 075099464, District of Sandakan, Sabah, for a total purchase consideration of RM3.87 million. The transaction was completed on 19 January 2023.
On 30 June 2023, SMS has ceased operations due to changes in future business plan. The company remained dormant as at the date of this combined financial statements.
On 21 November 2023, LWI entered into an SPA with a third party for the purchase of one (1) parcel of land held under CL No. 015582153, District of Kota Kinabalu, Sabah, for a total purchase consideration of RM18.48 million. The transaction was completed on 19 March 2024.
In conjunction with the listing of and quotation for the entire enlarged issued share capital
of the Company on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”)
(“Listing”), the Company had entered into the following conditional share sale agreements
(“SSA”):
a) on 26 November 2023, the Company entered into the LWI SSA for the acquisition of 100 of the ordinary shares of LWI for a total consideration of approximately RM50.92 million, which was fully satisfied by the issuance of 203,690,960 new shares at an issue price of RM0.25 each. The total purchase consideration for the LWI acquisition was arrived at after taking into consideration the audited net assets (“NA”) of LWI as at 30 June 2023 of RM51.19 million. The transaction was completed on 25 September 2024;
b) on 26 November 2023, the Company entered into the GBI SSA for the acquisition of 100 of the ordinary shares of GBI for a total consideration of approximately RM22.82 million, which was fully satisfied by the issuance of 91,298,280 new shares at an issue price of RM0.25 each. The total purchase consideration for the GBI acquisition was arrived at after taking into consideration the audited NA of GBI as at 30 June 2023 of RM22.94 million. The transaction was completed on 25 September
2024;
c) on 26 November 2023, the Company entered into the LWM SSA for the acquisition of 100 of the ordinary shares of LWM for a total consideration of approximately RM12.66 million, which was fully satisfied by the issuance of 50,623,796 new shares
at an issue price of RM0.25 each. The total purchase consideration for the LWM acquisition was arrived at after taking into consideration the audited NA of LWM as at 30 June 2023 of RM12.72 million. The transaction was completed on 25 September
2024;
d) on 26 November 2023, the Company entered into the SMS SSA for the acquisition of 100 of the ordinary shares of SMS for a total consideration of approximately RM2.36 million, which was fully satisfied by the issuance of 9,454,172 new shares at an issue price of RM0.25 each. The total purchase consideration for the SMS acquisition was arrived at after taking into consideration the audited NA of SMS as at 30 June 2023 of RM2.38 million. The transaction was completed on 25 September 2024;
e) on 26 November 2023, the Company entered into the SRK SSA for the acquisition of 100 of the ordinary shares of SRK for a total consideration of approximately RM3.68 million, which was fully satisfied by the issuance of 14,730,020 new shares at an issue price of RM0.25 each. The total purchase consideration for the SRK acquisition was arrived at after taking into consideration the audited NA of SRK as at 30 June 2023 of RM3.70 million. The transaction was completed on 25 September 2024
f) on 26 November 2023, the Company entered into the K2W SSA for the acquisition of 100 of the ordinary shares of K2W for a total consideration of approximately RM1.42 million, which was fully satisfied by the issuance of 5,693,900 new shares at an issue price of RM0.25 each. The total purchase consideration for the K2W acquisition was arrived at after taking into consideration the audited NA of K2W as at 30 June 2023 of RM1.43 million. The transaction was completed on 25 September 2024; and
g) on 26 November 2023, the Company entered into the CISB SSA for the acquisition of 100 of the ordinary shares of CISB for a total consideration of approximately RM0.03 million, which was fully satisfied by the issuance of 124,872 new shares at an issue price of RM0.25 each. The total purchase consideration for the CISB acquisition was arrived at after taking into consideration the audited NA of CISB as at 30 June 2023 of RM0.03 million. The transaction was completed on 25 September 2024.
On 7 February 2024, GBI entered into an SPA with a third party for the purchase of one (1) parcel of land held under CL No. 105244442, District of Tawau, Sabah, for a total purchase consideration of RM3.98 million. The transaction was completed on 10 June 2024.
On 10 June 2024, GBI entered into an SPA with a third party for the purchase of one (1) parcel of land held under CL No. 105244451, District of Tawau, Sabah, for a total purchase consideration of RM2.55 million. The transaction was not completed as at reporting date.