Lotus Circular’s operations commenced under its former subsidiary of Maintenance Engineering Sdn. Bhd. in 1971 as a trading company, involved in engineering and supplies business. Subsequently, Lotus Circular diversified its direction from trading to construction. Prior to the Group discontinuing the engineering and construction business, the Engineering Division’s range of services covered all facets of its business developments; from survey to detailed design, from material procurement to construction, from commissioning to maintenance and overall project management.

Lotus Circular via Maintenance Engineering Sdn. Bhd. and other former subsidiaries, namely Dynamic Communication Link Sdn. Bhd. and MESB Development Sdn. Bhd. have successfully executed over RM800million worth of contracts. A total of approximately 3,500km of overhead transmission lines from 33kV up to 500kV have been commissioned and erected a total of 1,000 units of transmission towers and 50 base stations in state of Melaka.

To mitigate its reliance on the Engineering and Construction business, Lotus Circular has to diversify into the retailing business, particularly in the areas of mass retailing of high quality fashion leatherwares and via acquisition of Miroza Leather (M) Sdn. Bhd. (“MIROZA”) on 16 July 2004.

MIROZA is principally engaged in business activities relating to retail industry, particularly in the area of retailing high-quality leather products, apparel and accessories through various retail channels in Malaysia, under several distinct brands, including Alain Delon, Pierre Cardin, Giossardi, Giamax, Ducati, Féraud, Tocco Toscano, and Crocodile. In addition, MIROZA has also established its in-house brands, namely Giossardi and Giamax.

On 11 July 2005, Lotus Circular has expanded its retailing business into marketing of quality men’s wear through acquisition of A.D. Trends Sdn. Bhd. (“ADTSB”).

ADTSB had signed exclusive distributorship agreements with PF1 International Limited (“PF1IL”), a Hong Kong based licensed manufacturer and owner of Alain Delon trade mark, where ADTSB is granted the rights to distribute men’s wear under the Alain Delon brand name in Malaysia. Apart from Alain Delon, Pierre Balmain and Bods, Bodynits are the other major brands sold at some of the boutiques and outlets.

Since commencement of ADTSB’s operations in Lotus Circular Group, ADTSB grew from an annual turnover of less than RM17 million to an annual turnover of more than RM30 million.

After disposed of its equity in ADTSB by Lotus Circular on 5 January 2010, Lotus Circular had acquired a new subsidiary company, namely Active Fit Sdn. Bhd. (“AFSB”) on 15 October 2015, the principal activity of AFSB is engaged in brand building, concept development, fashion designing, sourcing, marketing, distribution and retailing of casual apparels and accessories.

Crystal United Sdn. Bhd., a dormant subsidiary of the Company, had on 15 June 2020 applied to the Companies Commission o Malaysia (“CCM”), for striking its name off from CCM pursuant to Section 550 of the Companies Act 2016.

MESB Resources Sdn. Bhd. (“MRSB”) was incorporated on 5 February 2021. MRSB includes collecting, sorting, recycling and distribution of scrap and waste materials, such as wastepaper, plastics scrap and scrap ferrous metal. The sorted and recycled materials are distributed to plastic resin and paper manufacturers, as well as other large second-hand scrap dealers.

Lotus Circular also owned a semi-active subsidiary namely, MESB Capital & Development Sdn. Bhd. (“MCD”) This company is principally engaged in investment holding business.

The Board is of the view that there is an opportunity for the Company to unlock and realise part of its investment in the Retailing Segment, and has decided to expand into the Recycling Business with the aim of bolstering its earnings stream and market share in this business segment, in line with the business diversification strategy pursued by Lotus Circular.

On 16 June 2023, Lotus Circular had disposed the retailing segment which included 45% of MIROZA Leather (M) Sdn. Bhd. and 100% of Active Fit Sdn. Bhd. (“AFSB”). Furthermore, the semi-active subsidiary, MESB Capital & Development Sdn. Bhd. (“MCD”) had disposed 100% on the same date. Meanwhile, Lotus Circular had acquired 3 (three) new subsidiaries which included N.U. Recycle Sdn. Bhd. (“NUR”), Waier Trading Sdn. Bhd. (“Waier”) and Formidex Sdn. Bhd. (“Formidex”). The principal activity of NUR is engaged in the provision of slitting service and trim waste sales. Whereas, Waier & Formidex’s principal activity mainly involve recycling materials.

The Company is principally engaged in the business of investment holding and its subsidiaries are involved in the business of trading in leather and apparel products, waste recycling and investment holdings.

Retailing

55% owned in Miroza Leather (M) Sdn. Bhd. (“MIROZA”)
Established in the 1980’s has evolved into a leading marketer of quality leatherware in Malaysia. MIROZA’s wide range of high-quality personal essentials is well-known in the industry. The company holds licenses to design, source, and market international brands such as Alain Delon, Pierre Cardin, Ducati, Tocco Toscano, Crocodile, and Féraud. In addition, MIROZA has also established its own in-house brands, namely Giossardi and Giamax.

Recycling

• 100% owned in Formidex Sdn. Bhd.
  Incorporated in Malaysia on 25 June 2014 as a private limited company under the Act. It is principally involved in the provision of slitting service and trim waste sales.
• 100% owned in N.U. Recycle Sdn. Bhd.
  Incorporated in Malaysia on 20 November 2007 as a private limited company under the Act. It is principally engaged in the sales and purchase of recycling materials.
• 100% owned in Waier Trading Sdn. Bhd.
  Incorporated in Malaysia on 27 December 2002 as a private limited company under the Act. It is principally involved in the business of recycling materials.
• 100% owned in MESB Resources Sdn. Bhd.
  Incorporated on 5 February 2021 as a private limited company under the Act. It is principally involved in the collection, sorting, recycling, and distribution of scrap and waste materials, such as wastepaper, plastic scrap, and scrap ferrous metal. The sorted and recycled materials are distributed to plastic resin and paper manufacturers, as well as other large second-hand scrap dealers.