RECENTLY, the COVID-19 vaccine trade has somehow stole the thunder away from the glove-cum-personal protective equipment (PPE) venture. But that does not mean the latter has lost its lustre.
Yesterday, Hong Seng Consolidated Bhd issued a circular to seek the approval from its shareholders on the company’s transformation into a conglomerate that includes various businesses such as manufacturing and trading of gloves and other PPE products, supply of healthcare products and services (in addition to hire purchase).
The company will stage a virtual extraordinary general meeting on Dec 15 at 10.30am for the purpose.
In the pipeline is a RM59.4 mil turnkey agreement which entails the engaging of Howellcare Industries Sdn Bhd to plan, design, supply, install and commission its glove production plant as well as undertake all marketing and sale of the nitrile butadiene rubber gloves for the group during the initial stage.
“The business diversification will provide additional income streams to the group and reduce over-reliance on its existing businesses in the search and advertising as well as the information technology segments,” noted Hong Seng with regard to its proposed business diversification.
“This will also help to improve the group’s financial performance and enhance its prospect.”
Moreover, the proposed diversification into manufacturing and trading of gloves and other PPE provides an opportunity for Hong Seng to tap a growing industry with foreseeable sustainable demand given the current healthcare condition that enforces the usage of PPE in a global context.
On the healthcare segment, the company’s wholly-owned subsidiary, HS Bio Supplies Sdn Bhd, intends to venture into the healthcare-related services through eMedAsia Sdn Bhd via leveraging the expertise and network of Koperasi Persatuan Perubatan Malaysia Bhd.
KOOP MMA is an investment vehicle of the Malaysian Medical Association’s (MMA) members. MMA has approximately 14,000 registered doctors in its association and 35,000 doctors on its continuing professional development platform.
The funding for its healthcare-related business in addition to the provision of supply chain management services will be from the proceeds to be raised via the a private placement exercise of up to RM128.31 mil, added Hong Seng. – Nov 28, 2020
