JOHAN Holdings Bhd’s glove production venture is coming under scrutiny of the Minority Shareholders Watch Group (MSWG) who is keen to know at its forthcoming annual general meeting (AGM) whether its 60%-owned subsidiary Dynacare Sdn Bhd has begun to contribute financially to the group.
Johan has targeted to commence the commercial production of a glove manufacturing plant in Perak by end-November 2021.
“To whom will Dynacare sell its gloves to? How does it compete with other glove producers amid the current lower average selling prices and influx of gloves supply in the market?” asked MSWG.
Johan will stage its 96th annual general meeting (AGM) virtually on Jan 20 (Thursday) at 11am.
The shareholder activism group is also curious as to how much Johan has invested in the glove business as preliminary reports stated that its manufacturing plant would cost RM624.1 mil which upon completion would house 42 production lines.
“Does Johan plan to tap into equity financing to fund the new business? To recap, Johan had completed a rights issue exercise in July 2021 and raised RM38.93 mil to fund the glove business,” asked MSWG.
“How long will it take for Dynacare to achieve breakeven from its investment?”
Elsewhere, MSWG is also gauging the success of Fraser & Neave Holdings Bhd’s (F&N Malaysia) e-commerce business.
This is because F&N Malaysia has stated that one of the key focus areas of its F&B Malaysia (Food & Beverages Malaysia) and F&B Thailand (Food and Beverages Thailand) segments is to accelerate the group’s online presence to connect more effectively with consumers.
“How successful is the group’s e-commerce business such as F&N Life, online stores on Shopee and Lazada in Malaysia, and nom aroi in Thailand? How much e-commerce sales accounted for the group’s total revenue in FY2021?” asked the shareholder activism group.
“What are the plans to further expand e-commerce business? What are the metrics used by the board to track the group’s e-commerce progress in Malaysia and Thailand?”
F&N Malaysia is scheduled to hold its 60th AGM virtually tomorrow (Jan 17) at 10am. — Jan 16, 2022
