KUALA LUMPUR (Sept 7): Bursa Malaysia has questioned Techna-X Bhd’s (KL:TECHNAX) proposed sale of its stake in loss-making Hong Kong-based battery maker HK Aerospace Beidou New Energy Technology Co Ltd (HKAB), following contradictory disclosures about its ownership in the company.

This came after Techna-X announced last Thursday it was selling its entire 50% stake in HKAB to Tess Global Sdn Bhd for RM45 million cash, which was easily five times the group's market capitalisation of RM8.82 million then, based on its three sen closing price.

In a query to the company, Bursa Securities flagged that Techna-X had, in its audited financial statements for the year ended Dec 31, 2025, stated it had no effective ownership or voting interest in HKAB, following an agreement to sell the same 100,000 shares on Dec 30 that same year.

Bursa questioned how Techna-X was able to enter into a new share sale agreement with Tess Global on Sept 3 to dispose of the same shares.

In its reply, Techna-X clarified it remained the legal and beneficial owner of the 50% stake in HKAB as the previous purchaser had defaulted on the December 2025 agreement. That deal was subsequently terminated on July 10 this year after the breach was not remedied.

“As completion of the December 2025 share sale did not take place, no transfer of the said shares was effected and the legal and beneficial ownership of the said shares remained with Techna-X,” the company said.

Techna-X added that the “–” disclosed under effective ownership and voting interest in its audited financial statements reflected the group’s accounting treatment for HKAB and its subsidiaries and associates, and did not mean it had ceased to legally own the shares.

On the RM45 million disposal consideration, Techna-X said it was agreed on a willing-buyer, willing-seller basis, and that it was not privy to Tess Global’s internal evaluation of HKAB’s future potential.

Nevertheless, Techna-X said it intends to have HKAB independently valued.

The group added that the proposed disposal would not result in Techna-X triggering the criteria for a cash company under Bursa listing rules related to inadequate level of operations, or financial distress.

Shares of Techna-X slipped half a sen to close at 2.5 sen on Monday, trimming the group's market capitalisation to RM7.3 million.