Since its listing in 2007, the Group has been operating only
in China and relying on a single source of business, ie that of manufacturing and sale
of metallurgical coke and its by-products. The strategy of sole reliance on a single
business source which is highly dependent on the steel industry, has over the years
caused the Group to operate in challenging business environment and industry landscape
and these had accordingly caused the Group’s financial position to be quite volatile. To
a large extent, the Group’s financials were subjected to the vagaries of the market at
large which dictates the dynamics of the commodity prices, in particular that of
metallurgical coke and coking coal, both of which prices cannot be controlled by the
Group.
Premised on the above, the Board has developed a sustainable business strategy for the
Group moving forward by proposing to venture into other areas of business in an effort
to mitigate the risks of solely relying on only one business source which in turn is
heavily dependent on a single industry, ie the steel industry. Additionally, this said
strategy is envisaged to provide the Group with a diversified income stream, from which
it can derive alternative source of revenue and profits in the future to supplement that
of its existing metallurgical coke business.
In addition to the above, the Group had all this while been operating only in China and
does not have any business presence in Malaysia, despite it being a listed entity in
Malaysia. As such, the Board sees this business repositioning strategy as also an
opportunity to establish its footprint in Malaysia where it is listed, so that our
investors/shareholders can have a better appreciation of the Group.
Towards this objective, the Board is pleased to announce its entry into the
tech-enabling business via the acquisition of a 51% stake in the “TouchPoint Group”. The
“TouchPoint Group” has two main related businesses, being (i) Industrial Wireless
Sensors and Internet of Things; and (ii) Enterprise mobile development applications with
the main objective of providing enabling technological solutions to drive intelligent
automation and connecting communities through the use of technology via a common
platform. A second acquisition is in relation to a more traditional brick and mortar
consumer business in the Food and Beverage industry via the acquisition of 100% of
Bistromalones (PJ) Sdn Bhd. The acquisition will form part of the anchor merchants for
the community platform by the TouchPoint Group and will also be the showcase for how
traditional businesses can use technology to enable better access to market and
operational efficiencies.
Premised on the above, the Board of Directors of Sino wishes to announce that the
Company had on 22 November 2018 entered into two (2) separate term sheets in relation to
the following:
(I) proposed acquisiiton of 51% equity interest in Touchpoint International Sdn Bhd and
Wavetree LLP ("TouchPoint Group") from Ng Chee Seng, Amiruddin Bin Yahaya and Cindy Wong
Ling Ping for a total purchase consideration of RM20.0 millon; and
(II) proposed acquisition of the entire equity interest in Bistromalones (PJ) Sdn Bhd
from Chaswood Resources Sdn Bhd for a total purchase consideration of RM8.0 million.
Please refer to the attachments for details of the announcement.
This announcement is dated 22 November 2018.
