KUALA LUMPUR: Power supply cord set producer Ho Wah Genting Bhd (HWGB) plans to diversify into the healthcare-related industry including the dietary supplement, biotechnology and healthcare technology sub-segments.
HWGB, which was recently appointed by a China-based company as sales agent to distribute Covid-19 diagnostic products in Southeast Asia, said the company had plans to venture into other businesses with positive earnings outlook to diversify its revenue streams and reduce its dependency on the manufacturing segment.
“The Covid-19 outbreak is also one of the key consideration factors for the company’s decision to venture into the new business in order to soften the impact of the disease on its businesses, which was notably felt by its second largest revenue contributing business segment, travelling services,” it said in a filing with Bursa Malaysia today.
It said the board of directors is optimistic that the company would be able to venture into the biotechnology segment of the healthcare industry and participate in the nation’s efforts to contain the further spread of Covid-19 through the supply of Covid-19 test kits to the public, subject to the approval of the Health Ministry (MOH).
It said this follows an announcement on March 18 on the appointment of HWGB as the designated sales agent abroad of Xiamen AmonMed Biotechnology Co Ltd for the distribution of Covid-19 diagnostic products in Malaysia, Singapore, Indonesia and Thailand.
“The diagnostic products are pending approval from the MOH,” it added.
It said the diversification proposal was also made in relation to its Feb 21 appointment of US-based Guardion Health Sciences, Inc to design and manufacture an exclusive custom immune support nutraceutical formula for HWGB.
“The company is working with Guardion to finalise the design for the eventual commercialisation of the formulation,” it said.
HWGB said the group’s healthcare-related segment would be spearheaded by managing director and CEO Datuk Lim Ooi Hong and supported by the existing management team.
“The company is engaging a suitable candidate with the relevant healthcare industry experience to oversee the day-to-day operation and management of the new healthcare-related business segment,” it added.
Presently, HWGB is mainly involved in the manufacture and trading of wires and cables, moulded power supply cord sets and cable assemblies for electrical and electronic devices and equipment as well as in travel agent and tour-related services.
It reported an unaudited net loss of RM6.99 mil for the financial year ended Dec 31, 2019, an improvement from a loss of RM32.99 mil in the preceding year. – March 25, 2020, Bernama
