KUALA LUMPUR (Oct 20): Astral Asia Bhd (AAB) has proposed to diversify its core companies to incorporate e-commerce and associated actions with a complete estimated preliminary funding of RM500,000.
AAB mentioned the RM500,000 funding can be used for web site setup, storage tools and and many others, stock price in addition to advertising and marketing price corresponding to digital advertisements, social media administration.
“The corporate intends to fund the above estimated monetary dedication by way of a mixture of internally-generated funds and financial institution borrowings,” it mentioned in a submitting with Bursa Malaysia as we speak.
It mentioned the proposed diversification supplies a chance for the corporate to enterprise into the e-commerce enterprise and diversify its earnings base by offering a further earnings stream, thus decreasing dependency on its present companies.
“The board is of the view that the proposed diversification will add worth and contribute positively to the earnings of the corporate, thereby enhancing worth to its shareholders,” it mentioned.
It famous that the COVID-19 pandemic has led to main shifts in enterprise situations and likewise modified the each day habits and consumption patterns of customers, leading to a rise in demand for on-line providers throughout numerous enterprise segments.
“Extra customers are shifting their purchases on-line and in consequence, e-commerce companies are anticipated to expertise sizable development,” it added.
It mentioned the proposed diversification would take fast impact upon acquiring the approval from the shareholders of the corporate at a unprecedented common assembly to be convened.
AAB mentioned Ray Lim Kuan Hwang, a director of its wholly-owned unit, Clear Hyperlink and Tasja Improvement Sdn Bhd, has been recognized as the important thing administration personnel to steer and oversee the operations pertaining to the group’s e-commerce enterprise and different associated actions shifting ahead.
“He was concerned within the innovation and operation of latest companies and thus far, he has based and operated greater than 5 new enterprise ventures outdoors the corporate,” it mentioned.
In the meantime, AAB mentioned its earnings have been declining in current monetary years due primarily to decrease crude palm oil (CPO) commodity costs and decrease manufacturing of recent fruit bunches (FFB).
“The administration expects the slowdown within the firm’s plantation enterprise to proceed as world demand for palm oil is more likely to decline because of the anticipated weaker world economic system in yr 2020. The CPO commodity worth can be anticipated to stay risky in yr 2020,” it mentioned.
AAB is concerned within the operations of oil palm estates, funding holding and improvement, civil engineering and constructing building.