KUALA LUMPUR (Dec 2): Automotive batteries manufacturer Joe Holding Bhd (KL:JOE) has proposed a share capital reduction to wipe out RM80.4 million of its accumulated losses.
The group said the exercise will accurately reflect its financial position by eliminating the accumulated losses via the cancellation of its issued share capital, Joe Holding said in a bourse filing on Monday.
Joe Holding had unaudited accumulated losses of RM79.82 million as at Sept 30, 2024, and audited accumulated losses of RM112.01 million as at March 31, 2024.
“The proposed share capital reduction will also enhance the company’s ability to declare and pay dividends out of the retained earnings in the future and provide a better financial platform for the group’s future growth moving forward,” it added in a bourse filing on Monday.
As of Nov 25, Joe Holding's share capital stood at RM212.96 million, comprising 305.91 million shares. Joe Holding also has 61.18 million outstanding warrants, which are exercisable into an equivalent number of new shares at an exercise price of 60 sen per share.
Last week, Joe Holding reported another net loss of RM6.86 million for the second quarter (2Q) ended Sept 30, 2024, from RM214,000 a year earlier, as the net fair value loss of the group's quoted investments widened to RM6.69 million from RM210,000.
Quarterly revenue dropped 25% year-on-year to RM4.84 million from RM6.46 million mainly due to the disposal of GP Products Sdn Bhd. The company has indicated that, barring any unforeseen circumstances, the reduction is expected to be completed in 2Q of 2025.
Two years aso, Joe Holding, formerly GPA Holdings Bhd, ventured into the rubber glove business. It recently acquired four rubber powder-free double former dipping lines from Fintec Glove Sdn Bhd. However, the commencement of operational testing remains on hold, pending the completion of the power supply infrastructure.
Joe Holding's share price closed unchanged at 12 sen on Monday, valuing the group at RM36.7 million. Year-to-date, stock has gained 33.33%.