YLI to sell Prai factory land for RM18 mil cash to pare borrowings

• Its wholly-owned Yew Lean Foundry & Co Sdn Bhd has entered into a sale and purchase agreement with Hong Kuan Metals Recycle Sdn Bhd for the disposal of the property, the group said in a bourse filing Wednesday.

KUALA LUMPUR (Sept 17): Pipe manufacturer YLI Holdings Bhd (KL:YLI) is disposing of a piece of industrial land in Prai, Penang, together with a factory building, for RM18 million cash, to strengthen its working capital and reduce borrowings.

Its wholly-owned Yew Lean Foundry & Co Sdn Bhd has entered into a sale and purchase agreement with Hong Kuan Metals Recycle Sdn Bhd for the disposal of the property, the group said in a bourse filing Wednesday. Hong Kuan Metals Recycle, incorporated in 2005, is engaged in the recycling, refining and manufacturing of metals, as well as providing transport and machinery rental services. It is controlled by directors and shareholders Ng Boon Pin and Ng Kok Keong.

The property, measuring 12,226 sq m, is currently used for storage and office purposes. It had been valued at RM14 million as at March 28 this year, comprising RM7.4 million for the land and RM6.6 million for the building. YLI’s original investment cost was RM4.6 million.

The group expects to book a net gain of about RM1.5 million from the disposal, after accounting for real property gains tax and related expenses. YLI said proceeds from the disposal will be channelled towards working capital requirements and to lower its gearing, which the group said will improve reserves and overall financial performance.

As at June 30, 2025, YLI had total borrowings of RM25.61 million, consisting of RM15.65 million in long-term borrowings and RM10 million in short-term borrowings. Its gearing ratio stood at 0.18 times, based on total equity of RM155.69 million.

Barring unforeseen circumstances, YLI expects the proposed disposal to be completed by the first quarter of 2026.

YLI’s shares were not traded on Wednesday. It last closed at 29 sen with a market capitalisation of RM32.76 million.

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