KUALA LUMPUR (Oct 3): Cansino Biologics (Hong Kong) Ltd has emerged as the second largest shareholder of Solution Group Bhd, with a 9.09% stake.

This was after Cansino Biologics (Hong Kong)  subscribed to 43.968 million Solution Group shares at 19.5 sen or RM8.57 million via private placement, Solution Group’s filings showed.

Cansino Biologics (Hong Kong) is a 100%-owned research and development unit of China-based vaccine producer CanSino Biologics Inc (CanSino), according to the CanSino’s 2022 annual report.

Solution Group is the local manufacturing partner of CanSino to develop, manufacture and commercialise the CanSino’s Covid-19 vaccine in the Asean market.

In February, Solution Group said it is ready to conduct the first local and finish of the single dose Covidecia vaccine.

However, it said in its annual report a month later that it was not able to sell Covid-19 vaccines in the country in 2022, following the pandemic recovery.

“This may be a temporary set-back as the company, together with CanSino, is planning to introduce a few more products into the market,” it said in the report.

Solution Group has been dealing with CanSino since the pandemic, beginning with an agreement in September 2020 to market and distribute CanSino’s Covid-19 vaccine in Malaysia.

It received regulatory approval last year to formulate, fill and finish the CanSino vaccine in the country, followed by approval for the clinical trial of an inhalable version of the vaccine here.

Solution Group’s largest shareholder is its group managing director Lim Yong Hew, who holds 13.92% direct and 4.08% indirect stake in the company.

In terms of contribution, the group’s biggest operating segment is the industrial automation and plant construction segment, followed by sale of engineering equipment for education purposes, as well as rooftop solar installation.  

In the six months ended June 30, 2023, Solution Group’s net loss narrowed to RM1.24 million from RM4.48 million in the same period the year before, as revenue more than quadrupled to RM56.69 million, from RM13.06 million.

Shares of Solution Group closed half a sen or 2.13% lower at 23 sen on Tuesday, giving it a market capitalisation of RM111.69 million. The counter has fallen by 24.59% this year.