KUALA LUMPUR (March 11): Erdasan Group Bhd (KL:ERDASAN), formerly known as AT Systematization Bhd, has suspended its executive director, Mak Siew Wei, pending an investigation into possible questionable transactions that occurred in 2020 and 2021.

Mak, who has been on the board since 2013, holds a significant 7.835% stake in Erdasan.

As a result of his suspension, Mak has been relieved of all duties, powers and obligations as executive director of Erdasan and its subsidiaries.

The company, which operates in various sectors including industrial and engineering part fabrication, industrial automation system design and manufacturing, renewable energy and property leasing, has engaged legal counsel Eric Tan from Messrs Ong Kok Bin & Co to advise on the next steps.

Mak had previously served in executive director roles at Pasukhas Group Bhd, AE Multi Holdings Bhd and Trive Property Group Bhd, stepping down from each role late last year.

Erdasan has been struggling with financial losses since 2016.

For the nine months ended Dec 31, 2024 (9MFY2025), the group reported a widened net loss of RM17.92 million with a 17% decline in revenue to RM22.98 million from RM27.72 million.

The revenue drop was attributed to a reduction in sales from its fabrication and automation segment coupled with the discontinuation of its glove-making operations.

As of the end of January 2025, the company had cash and cash equivalents of RM74.99 million which represents an 18.91% decline compared to RM92.48 million a year earlier. Meanwhile, its retained earnings stood at RM279.27 million.

Erdasan's shares dropped by 0.5 sen or 5.9%, closing at eight sen, giving the company a market capitalisation of RM18 million. The stock has fallen by 42.86% year-to-date.

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