KUALA LUMPUR, Pipe manufacturer YLI Holdings Bhd (KL:YLI) has announced plans to dispose of an industrial land parcel in Prai, Penang, together with a factory building, for RM18 million in cash as part of efforts to strengthen its working capital and pare down borrowings.
In a filing with Bursa Malaysia, the group said its wholly-owned subsidiary, Yew Lean Foundry & Co Sdn Bhd, has signed a sale and purchase agreement with Hong Kuan Metals Recycle Sdn Bhd for the disposal.
Hong Kuan Metals Recycle, established in 2005, is involved in metal recycling, refining and manufacturing, as well as transport and machinery rental. The company is controlled by directors and shareholders Ng Boon Pin and Ng Kok Keong.
The property, which measures 12,226 sq m, is currently utilised for storage and office operations. An independent valuation carried out on March 28 this year placed the property’s worth at RM14 million — RM7.4 million for the land and RM6.6 million for the building. YLI originally acquired the asset at a cost of RM4.6 million.
From the disposal, YLI expects to record a net gain of about RM1.5 million after deducting real property gains tax and related expenses. Proceeds will be allocated to meet working capital requirements and reduce borrowings, which the group said would improve its reserves and overall financial position.
As of June 30, 2025, YLI carried total borrowings of RM25.61 million, comprising RM15.65 million in long-term debt and RM10 million in short-term obligations. Its gearing ratio stood at 0.18 times, based on total equity of RM155.69 million. Barring unforeseen circumstances, the group expects the disposal to be completed by the first quarter of 2026. YLI’s shares were unchanged on Wednesday, last closing at 29 sen, valuing the group at RM32.76 million.
