KUALA LUMPUR (Jan 3): Velocity Capital Partner Bhd (KL:VELOCITY) has made its new largest shareholder Datuk Fam Chee Way its non-independent and non-executive director, effective Friday.

On the same day, executive director Tan Yip Jiun resigned from his post "to pursue other interests", according to the hauling and money lending firm's bourse filings on Friday. His resignation comes a day after he disposed of his entire 12.17% stake in the company to Fam.

Fam, who has acquired another 16.61% stake in Velocity Capital from Datuk Liu Han Ming, now holds a 28.79% stake in the group.

Velocity Capital, formerly known as CSH Alliance Bhd, described Fam as an "experienced entrepreneur and business consultant with a career spanning various industries" that includes expertise in "chemical manufacturing, agriculture, timber trading, and finance." 

"Known for his ability to identify opportunities and navigate complex challenges, Fam has been a trusted adviser in both established and emerging markets," it said.

Tan's departure from Velocity Capital's board comes nearly four years after his appointment as ED back in March 2021, shortly after emerging as a substantial shareholder of the group.

Velocity Capital, which is also involved in the manufacturing and retail of ceramics, posted a net loss of RM1.48 million for the first quarter ended Sept 30, 2024 (1QFY2025) versus a net profit of RM1.14 million in the same period a year earlier, dragged by its loss-making ceramic and logistics divisions. Quarterly topline fell 30% to RM11.15 million from RM15.93 million. 

As of end-September 2024, Velocity Capital's cash balance stood at RM8.8 million, down sharply from RM112.7 million as at June 30, 2022.

Shares in Velocity Capital ended half a sen or 7.69% higher at seven sen on Friday, valuing the company at RM96.7 million.