YLI to dispose of Penang industrial land for RM28.5 mil, book RM6.8 mil gain

KUALA LUMPUR (June 4): Pipe manufacturer YLI Holdings Bhd (KL:YLI) is selling two industrial land parcels in Prai, Penang, for RM28.5 million cash, with the disposal expected to generate a net gain of about RM6.83 million and help reduce the group's losses.

As at March 31, 2025, the two land parcels had a combined book valuation of RM15.9 million.

The disposal will be undertaken by YLI’s wholly owned subsidiary Yew Lean Foundry & Co Sdn Bhd, which has entered into a sale and purchase agreement with Trilight Optics (Malaysia) Sdn Bhd, according to the group’s Bursa Malaysia filing on Wednesday.

The assets comprise two leasehold industrial land parcels in Prai Industrial Estate together with a 33kV electrical system and substation erected on the properties.

YLI said the proceeds will be used for working capital and to reduce bank borrowings.

For illustrative purposes, YLI said the disposal would reduce the group’s loss attributable to shareholders for the financial year ended March 31, 2025 (FY2025) to RM48.34 million from RM55.17 million previously, while net assets per share would improve to RM1.42 from RM1.35.

The calculation is based on the latest audited consolidated financial statements for FY2025 and assumes the disposal had been completed at the beginning of the financial year.

The disposal is expected to be completed by the fourth quarter of 2026, subject to approvals from the Penang Development Corporation and state authorities.

YLI’s shares were not traded on Wednesday. It last closed at 24 sen with a market capitalisation of RM27.1 million.

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