Techna-X Berhad which is involved in multiple business including digital, minerals, f&b and others has indicated that it will halt its metallurgical coke business operations end of this year until the business improves and has a clearer visibility on the prospects.
The Group’s coke business which has been classified as “discontinuing operation”, remains in dire situation as it recorded a cumulative net loss of approximately RM59.1 million for the 6-months period ending June.
Chairman Tunku Naquiyuddin believes the temporary cessation will immediately address the ongoing operational losses as well as to stem the continuous extensive financial strain on the company. Its metallurgical coke business has been suffering significant losses over the past few years with losses of approximately RMB308 million in FY2019, RMB 265 million in FY2020 and had already clocked-up about RMB100 million for the first half of FY2021. Such trend is expected to continue for the remaining second half of the current year. The industrial coke division continues to have limited visibility of recovery as the coke industry (especially for independent coke producers) is expected to continue to face many challenges moving forward.
Premised on the above, the Group underwent a strategic transformation over 20 months and has re-grouped its new businesses into two key streams ~ Technology Driven Food & Beverage Business and Digital & Technology Business. Both these business segments have shown an upward trend in performance and in delivering profit levels amidst operating under challenging global environment.
Techna-X’s other business activities, namely that of the digital technology which have started to gain traction, will continue to be viable to sustain the Group, moving forward. In this aspect, as soon as the Group is able to dispose of the continued loss-making coke business, more resources and efforts will be channelled towards building up the promising technology and digital transformation businesses for growth and value creation.
