Systech Bhd has proposed a RM40 million reduction in its issued share capital as part of a corporate restructuring exercise aimed at eliminating accumulated losses and strengthening its financial position as it continues its transition into a broader digital technology group.
The proposed share capital reduction, undertaken under Section 117 of the Companies Act 2016, is expected to convert the group’s accumulated losses into positive retained earnings of approximately RM3.07 million at the group level, based on its unaudited financials as at March 31, 2026, after accounting for estimated expenses.
Systech Managing Director Dr Low Min Yew said the exercise is purely an accounting adjustment and will not impact its share price, number of issued shares, shareholders’ equity holdings, net assets or cash position, nor will it affect the terms of its outstanding warrants.
He added that the share capital reduction will enhance the group’s balance sheet representation and improve its standing with financiers, customers, suppliers and investors as it pursues future growth opportunities.
Low also revealed that the group is also proposed a change of name to WTS Capital Bhd to reflect its strategic shift beyond traditional operations into higher-value digital technology segments including artificial intelligence, enterprise resource planning, human capital management, Internet of Things and digital infrastructure solutions.
Both proposals are subject to shareholder approval at an upcoming AGM. The share capital reduction is targeted for completion by the fourth quarter of 2026, while the name change will take effect upon approval by the Companies Commission of Malaysia.
