KUALA LUMPUR (Sept 8): Ceramic and tiles manufacturer Yi-Lai Bhd is venturing into the information technology (IT) solutions business in partnership with TechBase Solution Sdn Bhd, a company controlled by its newly-appointed executive director Au Yee Boon.
Yi-Lai said it has entered into an agreement with TechBase to collaborate for the purpose of establishing its new IT solutions business, which specialises in the provision of blockchain and system integration services.
“The new business is expected to generate additional sources of income to the group, as well as to diversify and expand its earnings base,” the company said in a filing with Bursa Malaysia.
Both companies intend to set up a joint venture firm to run the new business, with Yi-Lai holding a 49% equity interest and TechBase the remaining 51%.
Yi-Lai said it will provide funding to meet the financing conditions for the new business up to a commitment amount of RM9.5 million,
As at June 30, Yi-Lai’s cash and bank balance stood at RM50.73 million.
Its board expects the new business to contribute 25% or more of the group’s net profits or net assets moving forward, barring any unforeseen circumstances.
Notwithstanding the proposed diversification, the board intends to continue with its existing principal activities in the same manner. Yi-Lai is principally involved in the manufacture and sale of ceramic and homogeneous tiles, trading and distribution of tiles.
The company has been loss-making since 2017. For the six months ended June 30, 2020, the company reported a net loss of RM9.75 million, compared with a net loss of RM5.01 million a year ago.
Shares of Yi-Lai closed one sen or 1.11% lower at 89 sen today, valuing the company at RM129.13 million.
Source: https://www.theedgemarkets.com/article/ceramic-maker-yilai-ventures-it-solutions-business