KUALA LUMPUR (Sept 30): Chin Hin Group Property Bhd (KL:CHGP) is selling its entire equity interest in four loss-making subsidiaries involved in the commercial vehicle and bodyworks business for a combined RM62 million in cash, to focus on its property development business.

In a bourse filing on Wednesday, CHGP said it entered into a share sale agreement with HSG Sdn Bhd for the disposal of Boon Koon Vehicles Industries Sdn Bhd, BKCV Sdn Bhd, Boon Koon Fleet Management Sdn Bhd and BK Fleet Management Sdn Bhd.

The purchaser, HSG, is a holding company owned equally by four brothers — Datuk Seri Teoh Hai Hin, Teoh Hai Peng, Datuk Teoh Hai Bim and Teoh Hai Seng — each with a 25% stake.

Hai Hin is notably the former managing director and substantial shareholder of Aimax Bhd (KL:AIMAX), which was formerly known as Hong Seng Consolidated Bhd. He stepped down from the board in July 2023 and subsequently ceased to be a substantial shareholder. In 2024, Chin Hin Group Bhd  (KL:CHINHIN) acquired a block of shares in Signature International Bhd (KL:SIGN) from Hai Hin, which led to a mandatory general offer for the kitchen cabinet maker. 

On completion of the disposals, CHGP will no longer be involved in the commercial vehicle and bodyworks business. It does not expect this to adversely impact its financial performance.

The four companies collectively recorded an unaudited loss after tax of RM4.2 million for the eight months ended Aug 31, 2026.

The disposals are expected to result in a loss before tax of about RM4.6 million.

The consideration was based on the adjusted unaudited net asset value of the target companies of RM2 million as at June 30, 2026, together with agreed values of RM60 million for five properties in Nibong Tebal, Seberang Perai Selantan in Penang.

Of the disposal proceeds, RM55.7 million will be allocated for working capital, mainly to fund ongoing property development costs, with RM35.7 million earmarked for the Divine KLCC project and RM20 million for the Ophira project.

Another RM6.2 million has been earmarked for repayment of intercompany balances and RM100,000 for the expenses for the proposed disposals.

The group expects the disposals to be completed by the fourth quarter of 2026.

CHGP's share price closed unchanged at 98 sen on Wednesday, giving the group a market capitalisation of RM1.36 billion.