Central Global Berhad Archives

Central Global Bhd Signs MoU with Smart Sabah for Construction of State Ministry of Finance’s Dashboard

Central Global Berhad’s (Central Global or Company) wholly-owned subsidiary, Central Global Technology Sdn. Bhd. (CGTSB) has signed a memorandum of understanding (MoU) with Smart Sabah Corporation Sdn. Bhd. (Smart Sabah) to discuss the set-up of a joint venture (JV) for the construction of a dashboard for Sabah’s Ministry of Finance.

Central Global executive chairman Dato’ Faisal Zelman

The MoU, which is valid for six months from the signing, will be the framework from which CGTSB and Smart Sabah explore collaboration leading to a JV for the dashboard’s planning, design, development, implementation and maintenance.

Central Global is a producer of industrial masking tapes and label stocks as well as general building contractor while Smart Sabah is a state-owned company offering information, communication and technology services as well as other related management and security consultancy services.

Executive Chairman of Central Global, Dato’ Faisal Zelman said: “We welcome the discussions on the feasibility of working with Smart Sabah for the construction of the dashboard for the state’s Ministry of Finance. We look forward to having fruitful discussions on this project and will announce accordingly if there are any updates or progress”.

“We continue to explore business opportunities for the Company’s construction arm while finalising the purchase of machinery that will increase our masking tapes production capacity by 250%. These initiatives and discussions are ongoing and will ensure the sustainability of our business despite the challenges of the past year-and-a-half.”

Contact:
Hakim Juraimi
Email: h.juraimi@swanconsultancy.biz

Central Global Berhad Increases Production Capacity by 250% to Meet Fresh Demand

Machinery purchases increase tape manufacturing capacity from 20 mil to 70 mil sqm
Potential order book at 30 mil sqm

Central Global Berhad (Central Global or Group), a producer of industrial masking tapes and label stocks as well as general building contractor, is in the midst of finalizing the purchase of machinery that will triple the Group’s manufacturing arm’s capacity to produce industrial masking tapes.

With the purchase of the new machinery, the Group’s factory in Kuala Muda, Kedah, will have a capacity to produce up to 70 million square metres (“sqm”) per year of tapes from 20 million sqm of tapes per year from the old machinery.

Central Global executive chairman Dato’ Faisal Zelman said, “This is perfect timing for us as we currently have new potential orders of up to 30 million sqm of masking tape orders from existing customers. The new machinery will make us even more productive and efficient while allowing us the capacity to grow the business.”

“We are also able to fulfil backlog orders worth RM10.0 million from July and August that had been delayed due to the enhanced movement control order that was extended by two weeks in parts of Kuala Muda to the end of July. We were only able to restart operations from 2 August 2021 and only at 60% capacity for employees, but we are pleased to announce that all our employees will be fully vaccinated by 23 August 2021.”

The purchase of new machinery for the Group’s factory in Kuala Muda will be partly financed through a private placement exercise of 18 million new shares which is expected to raise approximately RM26.0 million, which included financing for a construction project in Penang.

The production expansion of the Group’s manufacturing arm is in conjunction with Central Global’s growth initiatives for its construction segment. The Group signed an MoU in early June with Multi Scopes Engineering Sdn Bhd to form a joint venture to bid for building a RM250.0 million sewage treatment plant in Kwasa Damansara, Selangor and was awarded an RM101.0 million construction project in April 2021 to upgrade the water supply system in Lahad Datu, Sabah.

Contact:
Hakim Juraimi
Email: h.juraimi@swanconsultancy.biz

Central Global Continues with Proactive Business Sustainability Measures Despite Lockdown

Group’s factory operations will remain closed until 1 August 2021 due to government orders
Substantial backlog of orders will keep factory busy until yearend

Central Global Berhad (Central Global or Group), a producer of industrial masking tapes and label stocks as well as general building contractor, will continue to keep a tight rein on cashflow in order to ensure business sustainability following the government’s decision to lengthen the extended movement control order (EMCO) in certain areas of Kuala Muda, Kedah where the Group’s factory is located by a further two weeks to 1 August 2021.

Central Global’s factory, which produces masking tapes and label stocks, has been closed since 5th July 2021 given its location in Kuala Muda which is currently under the EMCO. The factory employs almost entirely locals, with several among the 170 employees having been with the Group for more than four decades.

Central Global executive chairman Dato’ Faisal Zelman said: “We have always been cautious about the outlook for this year given the uncertainties of further COVID-19 outbreaks and while we will continue to tap into opportunities arising from a more fragmented regional competition landscape and the sporadic local supply-chain disruption, we are also mindful of the risks.”

“We have backlog orders to fulfil which will keep factory busy until year end, but operations have been affected due to the EMCO. We are consistently in discussion with the authorities despite of the lock down measures which has been imposed in the EMCO zones. We managed to obtain permission to operate on a partial basis being categorised as an Essential Industry (Packaging) during the period of the MCO 1.0 and we hope that the government will consider applying the similar regulations for the current EMCO as well. At the same time, we want to reassure all stakeholders that the management will do all it can to ensure that business sustains and maintain operational efficiency and quality.”

Central Global has two scheduled meetings annually to review the Group’s manufacturing operations’ internal controls and risk management under a risk management framework to mitigate business and operational risks. The Group’s lean manufacturing process ensures that costs are kept under scrutiny while driving productivity and quality through employee suggestion programmes and reward schemes.

“We will monitor the situation and continue to adhere to all standard operating procedures as laid out by the National Security Council and Ministry of Health guidelines to ensure the safety and health of employees and vendors. In the meantime, we have to manage our customers’ expectation in fulfilling their orders,” Faisal concluded.

For more information, please contact Hakim J. Munif at +60 12-318 5410 or h.juraimi@swanconsultancy.biz.

Central Global Berhad Makes Two Board Appointments

KUALA LUMPUR, June 24, 2021 – (ACN Newswire) – Main Market-listed Central Global Berhad (“Central Global”) is pleased to announce the appointments of Yang Hormat Mulia (“YHM”) Tengku Dato’ Indera Abu Bakar Ahmad (“Tengku Abu Bakar”) and Encik Shaharuddin bin Abdullah (“Encik Shaharuddin”) as non-executive directors of the Group.

YHM Tengku Abu Bakar, 36, has a background in strategic planning, specialising in health-related, e-commerce and information technology businesses. He is currently chairman of Fomema Sdn Bhd, which operates a foreign workers’ medical examination screening system in Peninsular Malaysia, as well as chairman of several other related companies. He is also a director of Bookdoc Holdings Sdn Bhd, which operates a mobile application connecting patients with medical professionals.

Tengku Abu Bakar holds a Bachelor of Business in Accounting from Swinburne University of Technology, Hawthorne, Australia. He has also throughout his career accumulated experience in dealing with multinational companies while providing guidance and support in the companies where he is a member of the board of directors.

Encik Shaharuddin, 60, spent his entire career in the Royal Malaysian Police and retired as an Assistant Commissioner of Police where his last posting was as Head of Administration for the Human Resources Department (Policy). He holds a Master in Social Science from University Kebangsaan Malaysia and a Diploma in Forensic Investigation from University Malaya.

Please contact the below for more information:
Muhammad Hakim
h.juraimi@swanconsultancy.biz

Central Global Berhad Seeks Strategic Partnerships for Construction Projects

Group’s shareholders passed all resolutions at AGM

Main Market-listed Central Global Berhad’s (Central Global) shareholders have passed all the resolutions at the Group’s AGM for the financial year ended 31 December 2021 held virtually today.

CGB executive chairman Dato’ Faisal Zelman

Central Global shareholders passed resolutions to re-elect executive chairman Dato’ Faisal Zelman, executive director Mr. Tobby Tan and independent director Mr. Lee King Loon to the board of directors. All three were appointed to the board on 26 February 2021. Shareholders also passed the resolution to appoint Baker Tilly Monteiro Heng PLT as the Group’s auditors in place of the retiring auditors, KPMG PLT.

Central Global executive chairman Dato’ Faisal Zelman said: “We are pleased that the virtual AGM went smoothly without any technical hiccups. We fielded questions from shareholders on the Group’s outlook and prospects as well as our ongoing plans to expand the manufacturing and construction businesses.”

“We shared at the AGM that the board is seeking opportunities for the construction arm through strategic partnerships as we believe that the landscape for the construction business is changing and that such partnerships are the way forward for us. We also spoke to shareholders about our plans to upgrade the machinery of the manufacturing arm in order to make the processes more productive and cost-efficient.”

“We remain cautiously optimistic and will continue to monitor the changing outcomes of the COVID-19 pandemic and make changes to daily operations accordingly with as little disruption as possible to the business. We are confident that the plans we are implementing will benefit the Group in the long-run.”

Among Central Global’s plans is an approved private placement of 18 million new shares to fund an upgrade of the manufacturing arm’s capacity as well as funding for an existing construction project in Penang. Central Global was also awarded a construction project located in Lahad Datu, Sabah valued at RM101 million. The Group is currently in discussions for several construction projects.

Clarification Regarding Central Global Bhd’s MoU with China’s Huobi Mall for the Development of a Global Data Centre in Malaysia

Main Market-listed Central Global Berhad (CGB) wishes to clarify that the information published in several news journals in China regarding a strategic partnership/Memorandum of Understanding (MoU) between the Company and/or its subsidiary, CIC Construction Sdn Bhd and Huobi Mall to build a Global Data Base Collection Centre in Malaysia is inaccurate.

CGB’s Executive Chairman Dato’ Faisal Zelman said: “We are indeed in discussion with Huobi Mall on the possibility of collaborating on the construction of a proposed data base collection centre in Malaysia. However, we are still in the midst of evaluating the viability of the aforesaid project and have yet to sign a MoU or any other forms of agreement with Huobi Mall in this regard. We will make further announcements as and when there are any significant developments on this matter.”

Central Global Berhad is principally involved in manufacturing and construction. The company is a specialist in industrial tapes and label stock manufacturing as well as a one-stop solution provider for crepe-paper masking. Its construction division was established in 2009 and is mostly active in the northern region of Peninsular Malaysia.

Please contact the below for more information:
Fintan Ng
Tel: +60 12-233 6986
Email: f.ng@swanconsultancy.biz

Central Global Bhd Signs MoU for JV to Build RM250M Kwasa Damansara Sewage Treatment Plant

Main Market-listed Central Global Berhad’s (CGB) construction arm, Proventus Bina Sdn Bhd (PBSB), has signed a Memorandum of Understanding (MoU) to explore a proposed joint venture (JV) with Multi Scopes Sdn Bhd (MSSB) for a sewage treatment plant in Selangor.

The scope of the proposed JV, in which PBSB would have a 70% effective stake and MSSB an effective 30% stake, would be the engineering, procurement, construction, commissioning, operation and handover of Employees Provident Fund’s wholly-owned subsidiary Kwasa Land Sdn Bhd’s sewage treatment plant in Petaling Jaya, Selangor.

Chief Business Officer of CGB and Director of PBSB Anson Lim said: “For this project, MSSB will manage the technical aspects of the project as they are the technical experts in sewage treatment plants while PBSB will handle the infrastructure part of the project.”

CGB executive chairman Dato’ Faisal Zelman said: “The proposed JV we are exploring through the MoU is another step in the plans we have to expand our construction business. We believe that the sewage treatment plant project would not only enable us to expand our portfolio of construction projects and orderbook but also provide us with consistent revenue for the next five years in Selangor.”

We continue to explore opportunities to grow both the manufacturing and construction businesses of the Group. We have since the beginning of the year won a project worth RM100.5 million for the upgrade of a water supply system in Lahad Datu, Sabah and have had our proposed private placement of 18 million new shares approved by Bursa Malaysia Securities Berhad. Proceeds from the private placement would be used to upgrade the manufacturing arm’s capacity and fund a property project in Penang.”

As of 31 March, 2021, the Group’s construction arm has an orderbook of RM130 million comprising of the Lahad Datu project and the Montage condominium project in Bayan Lepas, Penang.

Please contact the below for more information:
Hakim Juraimi
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz

Central Global Berhad Posts 25% Rise in Revenue

– Manufacturing arm sees 48% revenue increase due to trading activities
– Construction segment up 10.7% over previous period

Main Market-listed Central Global Berhad (CGB) recorded a 25.42% increase in revenue to RM37.56 million for the first quarter ended 31 March 2021 (1Q2021) compared to RM29.95 million recorded in the same quarter of the previous year.

The Group registered a loss before tax (“LBT”) of RM1.03 million for 1Q2021 compared to a profit before tax (“PBT”) of RM760,000 in the corresponding quarter of the previous year. On a segmental basis, CGB’s manufacturing arm recorded a 48.3% increase in revenue to RM17.36 million compared to the RM11.7 million recorded in the same quarter of the previous year while the construction arm registered a 10.7% increase in revenue to RM20.2 million compared to the RM18.24 million recorded in the corresponding quarter of the previous year.

For 1Q2021, CGB’s manufacturing arm registered RM510,000 in PBT from LBT of RM139,000 in the corresponding quarter of the previous year due mainly to higher revenue contribution from trading of industrial tapes and label stocks. For the quarter under review, the construction arm recorded LBT of RM938,000 compared to PBT of RM1.05 million in the same quarter of the previous year mainly due to lower contribution from two projects located in Penang that were completed and handed over in 1Q2021.

CGB executive chairman Dato’ Faisal Zelman said: “We continue to be upbeat about the Group’s outlook despite the challenges posed by the rise in COVID-19 infections and its impact on business sentiment. The plans that we shared publicly are being implemented and we are confident that these plans will benefit the Group.”

“The approval by Bursa Malaysia Securities Berhad of our proposed private placement of 18 million new shares in late April will help these plans along. As we have shared, we intend to upgrade our manufacturing arm’s capacity as well as fund an existing construction project in Penang. We have also clinched an RM101 million construction project in Lahad Datu, Sabah that will substantially boost the construction arm’s contribution to financial performance in the coming quarters. The manufacturing arm continues to take advantage of the change in market structure arising from a more fragmented competition landscape while the continued supply-chain disruption arising from pandemic lockdowns has given us the opportunity to penetrate the domestic market further.”

“The surge of COVID-19 infections has certainly been worrying and we are monitoring the situation as it unfolds. We continue to adhere to all standard operating procedures to ensure the safety and health of our employees, vendors and customers.”

Please contact below for more information:
Hakim Juraimi
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz

Central Global Berhad’s Proposed Private Placement Approved by Bursa Securities

Proposed private placement of up to 18 million new shares may be issued in several tranches with price-fixing dates to determine issue prices

Central Global Berhad’s (CGB) proposed private placement of up to 18 million new ordinary shares has been approved by Bursa Malaysia Securities Berhad (Bursa Securities).

CGB is a manufacturer of specialised industrial tapes and label stocks that pioneered industrial hi-temp masking tapes manufacturing and is a one-stop solution provider for crepe paper masking. The Group’s other business is construction, where it recently won a subcontract valued at RM100.54 million to upgrade water supply infrastructure in Lahad Datu, Sabah.

A letter from Bursa Securities dated 22 April 2021 was received by TA Securities Holdings Berhad (“TA Securities”), the advisor and placement agent for CGB, informing of the approval for the listing and quotation of up to 18 million new ordinary shares to be issued pursuant to the proposed private placement.

The proposed private placement is subject to CGB and TA Securities fully complying with the relevant provisions under the Main Market Listing Requirements of the proposed private placement; that CGB and TA Securities inform Bursa Securities upon completion of the proposed private placement; that CGB furnishes Bursa Securities with a written confirmation of the Group’s compliance with the terms and conditions of Bursa Securities’ approval once the proposed private placement is completed; and, in the event the proposed private placement is not completed before the next annual general meeting (“AGM”), that CGB furnishes a certified true copy of the resolution passed by shareholders for a general mandate under Sections 75 and 76 of the Companies Act, 2016 at the Group’s forthcoming AGM.

CGB executive chairman Dato’ Faisal Zelman said, “We are glad for the approval as we have plans in the pipeline to expand our manufacturing and construction businesses. We need new machinery that is more efficient and cost-effective for our manufacturing operations and we will use part of the proceeds to fund a construction project in Pulau Pinang.”

“As we have plans beyond the immediate ones for both the manufacturing and construction businesses, we are also allocating a portion of the proceeds for future growth as well as having a portion for working capital purposes.”

For more information, please contact:
Hakim Juraimi
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz

Central Global Berhad Proposes Private Placement of up to 18 Million New Shares

Proceeds of private placement to be used for new machinery and construction project funding

Main Market-listed Central Global Berhad (CGB) has proposed a private placement of up to 18 million new shares representing not more than 20% of the Group’s total number of issued shares to qualified third-party investors to be identified at a later date.

Central Global Berhad’s factory in Sungai Petani, Kedah

CGB is a manufacturer of specialised industrial tapes and label stocks that pioneered industrial hi-temp masking tapes manufacturing and is a one-stop solution provider for crepe paper masking. The Group’s other business is construction, where it is currently mostly active in the northern region of Peninsular Malaysia.

The proposed placement may be implemented in several tranches within six months from the date of approval from Bursa Malaysia Securities Berhad (“Bursa Securities”), with there being potentially several price-fixing dates and issue prices of the placement shares to be determined separately and fixed by the Board of Directors of CGB after the approval from Bursa Securities. These new shares[1] will carry the same rights as the existing issued shares.

The proceeds from the private placement will be used for a new masking tape coater production line, funding for an existing construction project, working capital and, estimated expenses related to the private placement exercise.

The Group’s Board of Directors have laid out plans to fortify the manufacturing business while at the same time expand the construction business through more contracts.

CGB executive chairman Dato’ Faisal Zelman said, “The private placement exercise is in line with our plans for the production of masking tapes in the Group’s manufacturing business. We want to focus on keeping critical production volumes up, undertake efforts to drive efficiencies in production that can minimise wastage as well as ensure consistency in product quality, which is key to recurring orders especially for our export orders.”

“We are also using the proceeds to fund a project in Pulau Pinang from our construction business. We were awarded this project in January 2020 and work commenced in July 2020. We will continue to undertake construction projects and have tendered for several projects. A portion of the proceeds from the private placement exercise will also be used for working capital purposes as well as accelerating future business expansion.”

TA Securities Holdings Berhad has been appointed the advisor and the placement agent for the proposed private placement.

[1] Such new shares will not be entitled to any dividends, rights, allotments and/or any other distributions which may be declared, made or paid to the Company’s shareholders unless such new shares were allotted and issued on or before the entitlement date of such rights, allotments and/or other distributions.

For more information, please contact:
Hakim Juraimi
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz