Maxland scraps land deals for data centre, district cooling system ventures in Kedah

KUALA LUMPUR (May 15): Maxland Bhd (KL:MAXLAND) has scrapped two planned land leases in Kedah for a proposed data centre and district cooling system after revising its business strategy.

Its indirect wholly owned unit, Maxland Data Sdn Bhd, had in December 2024 entered into a 60-year lease agreement with Kulim Technology Park Corporation Sdn Bhd (KTPC) for a 4.57-acre parcel in Industrial Zone Phase 2 of Kulim Hi-Tech Park for RM9.95 million for the data centre project.

The second deal involved its wholly owned unit, Maxland Kool Sdn Bhd, and an agreement in February 2025 with KTPC to lease a 4.85-acre parcel within the same industrial zone for RM10.57 million, was for the district cooling system project.

In filings on Thursday, Maxland said both subsidiaries had entered into deeds of revocation with KTPC on Thursday, to mutually rescind the respective lease agreements.

In separate filings, Maxland said its board decided to cancel the land leases in the best interest of the group after a strategic review found that the land no longer fits its investment plans. The move is part of the group’s revised business strategy and efforts to better allocate resources and investments.

Maxland will receive partial refunds after cancelling two Kedah land leases linked to its proposed data centre and district cooling system projects. After deductions and charges, the group expects to recover about RM652,745 and RM743,717 from the two deals, and said the cancellations are not expected to materially impact its financial year 2026 earnings.

Formerly known as Priceworth International Bhd, Maxland is principally involved in the sale of processed timber products as well as shipbuilding and repair services.

Maxland’s external auditor flagged a material uncertainty over the group’s ability to continue as a going concern after it recorded a net loss of RM10.9 million and net current liabilities of RM29.5 million for the financial period ended Nov 30, 2025. The group said it plans to improve its financial position through fund-raising exercises, including warrant conversions and a rights issue, alongside operational improvements, noting that net losses and liabilities have already narrowed significantly from the previous year.

As at end-February, the group had cash and bank balances of RM1.36 million against total borrowings of RM16.95 million.

For the first quarter ended Feb 28, 2026, it posted a net loss of RM2.72 million on a revenue of RM12.41 million, primarily due to the low production volume and lower selling price amidst the unfavourable timber market.

Shares of Maxland closed unchanged at 2.5 sen on Thursday, giving it a market capitalisation of RM40.09 million.

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