Monday 22 Apr 2024
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KUALA LUMPUR (Jan 5): Loss-making copper product maker Ta Win Holdings Bhd has proposed to team up with China-based energy cable manufacturing company Ningbo Kibor Wire & Cable Co Ltd to manufacture solar cables, tinned coated wires and other cable wire products.

The collaboration will take the form of a joint venture (JV) company named Cyprium Kibor Tech Sdn Bhd, with Cyprium Capital Sdn Bhd (Ta Win’s wholly-owned unit) and Ningbo Kibor holding a 50% stake each.

Total investment for the JV company is set to reach up to RM15 million, and will be financed through a combination of debt and equity, said Ta Win in a bourse filing.

Cyprium Capital will facilitate the JV company by utilising the Electron Beam Plant, owned by its 66%-subsidiary Cyprium Wire Technology Sdn Bhd.

Meanwhile, Ningbo Kibor agreed to source the service from Cyprium Wire Technology and supply the necessary copper wires to the JV company at an arm’s length market rate.

“With more E-Beam product development under the proposed JV, Ta Win Group will be able to offer new products to other industries differ from existing customer base," said Ta Win.

“The company's return on investment potential is determined by the benefits of future returns from the proposed JV, which include dividends and capital gains,” the company added.

For the first quarter ended Sept 30, 2023, Ta Win narrowed its net loss to RM4.17 million, from RM6.37 million a year earlier, on lower operating loss. This was despite revenue decreasing by 12.2% to RM160.79 million from RM183.13 million on lower contributions from all business segments, except for the cable and wire segment.

As at end-September, Ta Win had RM98.42 million short-term borrowings and RM27.43 million long-term borrowings.

Shares of Ta Win closed unchanged at four sen on Friday, giving it a market value of RM120.23 million.

Edited ByS Kanagaraju
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