Businessweek

Prime Global Capital Group Incorporated, through its subsidiaries, engages in the operation of a palm oil plantation, trading castor oil seeding, and the provision of IT consulting, programming, and Website development services. The company’s m-commerce and consumer distribution products businesses are operated through Union Hub Technology Sdn. Bhd. Its oilseeds business is operated through Virtual Setup Sdn. Bhd. (VSSB) and Shenzhen Max Trend Green Energy Co. Ltd. Its real estate business is operated through PGCG Assets Holdings Sdn. Bhd. Real Estate Business In 2012, the company began its real estate business operations, which consist of the acquisition, development, management, operation, and sale of commercial and residential real estate properties located in Malaysia, primarily in Kuala Lumpur and Selangor. It engages in the sale of developed properties and commercial properties. Developed property sales could include condominium units, individual villas, and bungalows at its future Shah Alam 2 Eco Residential Development project and Bandar Sungai Long High Grade Villas development projects located in Selangor, Malaysia. The company might also sell properties under development, undeveloped properties, or commercial properties. Oilseeds Business VSSB manages and operates the company’s palm oil plantation in Malaysia. Its plantation cultivates and distributes fresh fruit bunches to third party oilseed processors located in Malaysia that extract, refine, and resell palm oil. The byproducts of the refinery process are sold to other manufacturers further downstream to produce various derivative products. The company also intends to manage and operate castor seed operations. Customers and Distribution The company’s consumer goods are sold to customers located outside of Malaysia. Customers of its oilseeds business principally consist of oilseed processors, refineries, and oilseed product manufacturers. Its products are distributed in bulk from its plantations directly to its customers’ facilities. Each of the company’s software products and services, and oilseeds businesses are sold to customers located primarily in Malaysia and Singapore. During the year ended October 31, 2012, the company’s customers included Mike Ouah; William Liew; Liling SunShine Agricultural Development; and Beijing Pulin Gaobo New Energy Technology Dept. Co. Ltd. Suppliers During the year ended October 31, 2012, the company’s suppliers included Persiaran Abadi Sdn. Bhd.; Zibo Research Centre; AC Plantations Enterprise; and Fortesys Intergration Sdn Bhd. Acquisitions In July 2012, PGCG Assets Holdings Sdn. Bhd. (a wholly owned subsidiary of the company’s wholly owned subsidiary, Union Hub Technology Sdn. Bhd.) consummated the purchase of 21.8921 hectares (54.10 acres) of vacant development land located in Selangor, Malaysia, or the land. In October 2012, the company consummated the acquisition of Dunford Corporation Sdn. Bhd. (Dunford). Dunford’s primary assets consist of 2 parcels of undeveloped land located in Selangor, Malaysia aggregating approximately 31 acres (the ‘Dunford Parcels’). The company intends to develop the Dunford Parcels land for commercial and residential purposes. In December 2012, the company consummated the purchase a 15 story commercial building located at Geran 10010, Lot 238 Section 43, Town and District of Kuala Lumpur, Wilayah Persekutuan, Kuala Lumpur, Malaysia. Dispositions As of October 31, 2012, the company disposed of Dunford’s prior insurance agency and secretarial services businesses. Government Regulation The company is subject to the Land Acquisition Act of 1960, which specifies the conditions under which the Malaysian government might acquire by eminent domain private land (including its palm oil plantation) to pursue its social policies. It is also subject to various environmental laws, including the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1987, which governs land clearing, air emissions, waste water discharges, and other similar matters; the Workers’ Minimum Standard of Housing & Amenities Act 1990, which requires the company to provide its plantation workers with reasonable housing and amenities, water, electricity, and addresses other sanitation related matters, other labor laws governing minimum wages, wage increases, and occupational health and safety; the Pesticides Act 1974 (Pesticides Registration) Rules 1988, Pesticides (Licensing for sale and storage) Rules 1988 and Pesticides (Labeling) Regulations 1984, which govern the registration, use, labeling, and storage of pesticide; and the Protection of Wildlife Act 1972, which governs the capture and destruction of certain protected wildlife.