KUALA LUMPUR (Dec 26): Chinese national Huang YongKang has emerged as Asia Poly Holdings Bhd's (KL:ASIAPLY) second biggest shareholder after taking up the entire 95.85 million shares issued under a private placement.
The shares represent a 9.09% stake in the Klang-based cast acrylic sheets manufacturer.
Asia Poly's biggest shareholder is its executive chairman, Yeo Boon Leong, who holds 189.86 million shares, representing a 18.01% stake after the placement.
Huang is a shareholder of Zhen Xing Plastic Sdn Bhd, in which Asia Poly acquired a 35% stake for RM7.5 million in September. Zhen Xing is a local recycling company involved in the manufacturing of depolymerised methyl methacrylate monomer (green MMA).
According to Asia Poly's bourse filing on Friday, Huang acquired the placement shares on Dec 23. The transaction value was not provided, but the stake would have cost at RM6.71 million based on the price of seven sen per share announced by the company in September for the placement shares.
The company had also announced that RM5 million of the proceeds of the private placement will be used for the repayment of bank overdrafts. Another RM942,000 will be allocated for working capital, including the purchase of raw materials for the manufacturing of cast acrylic.
Asia Poly's net loss almost tripled to RM11.85 million for the nine months ended Sept 30, 2024 (9MFY2024), from RM4.21 million a year earlier. This was due to the bigger loss posted in the manufacturing segment due to higher production costs, as well as the loss reported in the investment holdings and other sectors.
The revenue for the nine-month period, however, rose 8.8% year-on-year to RM88.3 million from RM81.13 million.
Asia Poly’s share price, which has fallen 18% year-to-date, closed unchanged at seven sen on Friday, valuing the company at RM74 million.