MAIN MARKET-listed apparel maker Prolexus Bhd is entering a new era with the guidance of a newly-realigned boardroom as its veteran leader Lau Mong Ying resigned from his role as the group managing director.
Mong Ying will take leave from the board after nearly three decades by moving to an advisory role instead. His appointment as the group’s advisor will add value to Prolexus given his leadership skills, knowledge and vast experience in the industry.
Mong Ying’s brother, Mong Fah (non-independent non-executive director) and Boo Chin Liong (independent non-executive director) have also resigned from the board. Meanwhile, Tan Eik Huang, who also sits on the board of tiles maker YB Ventures Bhd has been re-designated as the group’s executive director.
Tan’s appointment suggests that Prolexus is ready to move on to the next phase of growth under a new leadership with the emergence of YB Ventures as the group’s substantial shareholder (with indirect stake of 18.3%).
“We are excited to take on this new growth phase with Prolexus. I wanted to take this opportunity to thank the Lau’s family for their commitment to the group,” commented Tan.
“Particularly, Mong Ying has played an important role to drive sustainable growth within the company for nearly three decades. The economic moat demonstrates the leadership skill that he has built for the group.
“We are honoured that he has agreed to remain as the group’s advisor. His experience in running Prolexus will play an important role to help the new leadership team to take on the baton from him.”
According to Tan, the group’s first agenda is to streamline the manufacturing process within Prolexus by harnessing synergistic strength that could result in potential economies of scale.
“Both Prolexus and YB Ventures have very strong and dynamic manufacturing capabilities that put us in a good position to leverage on our strength,” he pointed out.
“It is important for us to streamline our manufacturing processes and take advantage of our manufacturing capabilities to harness synergistic strength going forward and to mitigate the risks in an inflationary environment.”
With the expected surge in inflation amid geopolitical tension, shortage of labour, logistic bottlenecks and other disruptions in the post-COVID world, Prolexus will focus on the synergy with YB Ventures.
According to Tan, this will help the group to withstand the surge in costs, hence maintain its profitability.
“Our main objective is to add value to our shareholders by enhancing the group’s manufacturing capabilities and efficiency. We are confident that by building strong fundamentals, our expansion and growth trajectory will materialise in the near-term,” he added.
At the close of today’s trading, Prolexus was down 4.5 sen or 6.16% to 68.5 sen with 15.22 million shares traded, thus valuing the company at RM190 mil. – April 8, 2022
