AsiaBio expects better results for FY16

KUALA LUMPUR: Business incubator Asia Bioenergy Technologies Bhd (AsiaBio) expects to better its performance in the current financial year ending March 31, 2016, as the group is actively managing its investments.
AsiaBio, which focuses on incubating start-up technology companies, particularly in the bio-energy sector, currently holds investments in Vsolar Group Bhd, Focus Dynamics Technologies Bhd, NetX Holdings Bhd and Carimin Petroleum Bhd.
“We have already reached our maximum in terms of investing in these companies. Right now we are looking at managing the investments, rather than making a new investment,” its executive director Steve Tan Sik Eek told reporters after its EGM yesterday.
“We are planning to turn them (the companies) around or at least give them an additional boost for the coming year. The plan is to move the companies to the next level, but it is hard to say on how well we will be doing going forward,” he added.
Given the current market scenario, Tan said it is a good time to look at recalibrating some of the strategies of the companies and cleaning up its business.
On prospects, Tan said he expects this year to be very challenging given the volatility of the market and current economic conditions.
“However we still think that the government’s commitment on the renewable energy sector is actually a very positive outlook,” Tan added.
AsiaBio registered a net loss of RM15.13 million for the second quarter ended Sept 30, 2015 (Q2FY16), with a revenue of RM10,000.
For the first six months, the group reported a net loss of RM25.32 million, with a revenue of RM6.48 million.
At the EGM, shareholders approved the company’s proposed reduction of its issued and paid-up share capital, through the cancellation of 5 sen of the par value of the ordinary shares of 10 sen each in the company to 5 sen each.
Shareholders also approved its proposed ratification for the utilisation of proceeds from the rights issue which was completed on April 28, 2014.