KUALA LUMPUR (January 7): Engineering services company Minetech Resources Bhd is partnering with a local private company to import and market processed food products from South Korean manufacturer Samyang Food Co Ltd.
In a stock exchange file, Minetech said that its wholly-owned subsidiary Diman KS Chin Sdn Bhd (DKSCSB) signed a partnership agreement with Vitamin 2U Sdn Bhd (V2SB) on Friday, January 7, for commercial activity.
As such, it proposes to diversify into the food and drink (F&B) trade.
Under the agreement, the DKSCSB will be primarily responsible for selling the products to local wholesalers and / or retailers. VS2B, on the other hand, will handle the day-to-day operations which include the sale, marketing and delivery of products, submission of purchase orders, as well as liaison with the supplier and relevant authorities.
V2SB is mainly involved in the trade and distribution of goods and services. Its sole shareholder Lee Byoung Jin is from South Korea.
“The execution of the association agreement with V2SB also offers the Minetech group (with) an additional opportunity to venture into the F&B industry, in order to reduce its dependence on a segment of particular activity and create an additional source of income for the group in the future, ”Minetech said.
The board of directors expects the new company to contribute 25% or more of the group’s net profit or net assets in the future.
Minetech’s fiscal year ends March 31. The company has been in deficit for five years between fiscal year 2016 and fiscal year 20. It managed to recover in fiscal year 21 with net profit of RM916,000, on turnover of 95.02 million RM.
However, for the six-month period ended September 30, 2021 (6MFY22), the company recorded a larger net loss of RM 7.14 million, compared to a net loss of RM 4.29 million a year ago, driven by higher selling costs, administrative expenses, as well as sales and marketing expenses.
Minetech shares closed at 10 sen each on Friday, valuing the company at RM 117 million.