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Fu Yu provides updates on probe into its supply chain arm
Investigations clarify that the unit&rsquo s US$3 million payment to a third party was made for trades that were conducted on its behalf
[SINGAPORE] Fu Yu Corporation has confirmed that its unit&rsquo s US$3 million payment to a third party, that has been the subject of a probe, was made for services that were rendered.
In February, investigations into the affairs of its subsidiary Fu Yu Supply Chain Solutions (FYSCS) revealed that the unit made unverifiable arrangements concerning a payment of around US$3 million, for which services did not appear to have been received.
In a Monday (Sep 1) update on an ongoing probe into FYSCS&rsquo activities, parent company Fu Yu Corp said that investigations have confirmed that the services underlying its unit&rsquo s payment to KWW Consultancy were rendered.
These services were trades executed by KWW Consultancy on FYSCS&rsquo behalf, that the unit profited from. KWW Consultancy is a company owned by Wong Ka Wing, a FYSCS employee. Wong and KWW Consultancy&rsquo s director Tan Xin Yi are friends with Victor Lim &ndash Fu Yu Corp&rsquo s largest shareholder who is involved in the probe.
The two parties entered an agreement in July 2022, whereby KWW Consultancy agreed to make trades on FYSCS&rsquo behalf.
The investigation further revealed that the payment was made to a third party entity, Arc International Energy, which appears unrelated to either party.
KWW Consultancy had assigned Arc International Energy to receive the payment through a deed of assignment and indemnity deed dated Nov 9, 2022, but the investigations were &ldquo unable to conclusively state what the commercial rationale&rdquo of this arrangement was.
Alleged misuse of resources and e-mail
Other matters raised in the probe, such as the potential misuse of FYSCS&rsquo resources and an e-mail account, were also addressed in the findings.
Regarding the matter of the unauthorised use of an e-mail by third parties, the investigations revealed that Lim&rsquo s girlfriend Hazel Cai had used it to source for and negotiate deals on behalf of FYSCS.
This was done on a purported &ldquo goodwill basis&rdquo and Cai was not found to have been paid, the findings noted.
Lim and Cai are among the six individuals that Fu Yu said it was pursuing claims against, over the probe.
Other employees also had access to the e-mail account.
The investigation could not ascertain if reimbursement claims Lim made during his tenure as FYSCS&rsquo director of strategy were solely for the unit&rsquo s benefit.
These claims totalled S$9,427.76.
The investigation found that some expenses were incurred with persons who did not have commercial ties to FYSCS at the time they were recorded.
However, it could not rule out the possibility that these were prospective clients or suppliers, as the company does not keep records of its prospects.
Acquisition of FYSCS
Concerns about Lim&rsquo s alleged influence over Fu Yu Corp&rsquo s decision to acquire FYSCS was another matter raised under the probe.
These concerns arose as some employers of the supply chain unit &ndash which was called Avantgarde Enterprise before Fu Yu acquired it &ndash were formerly staff at Aeturnum Energy International, a company that Lim used to be the managing director of.
The investigation found &ldquo no basis to determine that (Fu Yu&rsquo s) board (at the time) was misled or improperly influenced in causing the company to enter the FYSCS acquisition&rdquo .
Lim&rsquo s involvement in the acquisition &ldquo appears to have ended when a board memorandum dated May 24, 2021, was presented to the then board&rdquo , it said.
The board was assisted by legal and financial due diligence conducted by independent professionals, the investigation added.
Board dispute
The probe&rsquo s findings come to light in the wake of a board dispute within Fu Yu Corp.
Three former independent directors of the company resigned in June amid repeated attempts by Lim to oust two of them.
Lim had called for an extraordinary general meeting (EGM) on Jan 9, to remove Royston Tan and Christopher Huang from Fu Yu&rsquo s board, citing the need for a &ldquo strategic reset&rdquo of the company amid what he described as its poor performance.
After this attempt failed, Lim reiterated his call for an EGM to vote on ousting Tan and Huang on Feb 5.
On Mar 11, Lim made a third request to table resolutions to oust Tan and Huang at Fu Yu&rsquo s upcoming annual general meeting, set to take place on Jun 27. The company agreed to Lim&rsquo s request.
On Jun 15, Fu Yu announced that Tan, Huang and a third director Daniel Poh, had resigned.
Always guidance a lost. Just profit guidance its share price drop so much, if the real result come out drop below 10cents. In this case delist will be the good choice.
money4life ( Date: 28-Jul-2025 12:05) Posted:
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I think is better to distribute the cash back to shareholders, similar industry already doing so well. I think good to change a CEO that can help shareholders to make money.
Accelerating the growth of their MedTech/Bio/Pharma segment, however, it may take some time due to the long gestation period.
sengkang ( Date: 30-Jun-2025 22:59) Posted:
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Fool you - can or cannot make it?
When will things get better after all the firefighting and rejigging of BOD?
What is the revamped business plan ahead?
What is the revamped business plan ahead?
Fu Yu appoints new independent directors at AGM following shareholder&rsquo s request
Fu Yu Corporation&rsquo s shareholders have appointed four new independent non-executive directors to the company at their latest annual general meeting (AGM) held on June 27.
The new directors are: Gilbert L. Rodrigues, Ralf Pilarczyk, Yang Zhenrong and Haytham T KH Al Essa. All four were appointed at the AGM by a resolution tabled under a requisition by Lim Wei De, Victor, under Section 183 of the Companies Act 1967.
Fu Yu had appointed Asian Corporate Advisors (ACA) to assess the directors&rsquo suitability and independence. Fu Yu, on June 20, announced that ACA had found nothing that would make the directors unsuitable to be appointed as the company&rsquo s independent non-executive directors. The board saw no reason to disagree with the assessment.
On Jan 9, Fu Yu announced that Lim had called for an extraordinary general meeting (EGM) to remove two of the company&rsquo s directors at the time, citing its deteriorating performance. In his requisition letter, Lim noted the company&rsquo s drop in earnings from $17.58 million in FY2021 to a loss of $10.11 million in FY2023. The company&rsquo s share price also fell from 33 cents in 2021 to 13 cents as of Jan 9. Lim holds 29.45% of Fu Yu&rsquo s shares and is the largest shareholder of the company.
In his January letter, Lim also proposed the appointment of three independent directors, Rodrigues, Pilarczyk and Yang. Al Essa was included in the list in Lim&rsquo s follow-up letter dated March 11.
Rodrigues, Pilarczyk and Yang received approvals of over 92% each while Al Essa received an approval rate of 80.86%. Al Essa was previously an independent non-executive director of Fu Yu from Jan 18, 2021, to Oct 31, 2021. He had tendered his resignation on Oct 27, 2021, citing personal reasons behind his departure.
Four candidates assessed for Fu Yu&rsquo s board, with no findings against suitability
The company also says that its day-to-day operations are unaffected by the recent resignation of all its independent directors
[SINGAPORE] Four proposed directors for Fu Yu Corporation have been assessed by an independent party, with no findings made against their suitability for the role, said the company on Friday (Jun 20) evening.
Fu Yu currently only has one director &ndash chief executive David Seow &ndash after all three of its independent directors resigned on Jun 15.
The company has since appointed Asian Corporate Advisors (ACA) to assess four candidates proposed as independent directors: Gilbert Rodrigues, Ralf Pilarczyk, Yang Zhenrong and Haytham Al Essa.
In its bourse filing, Fu Yu said that &ldquo nothing has come to (ACA&rsquo s) attention that the proposed new independent directors may not be deemed suitable&rdquo , and that its board &ldquo sees no reason to disagree&rdquo .
&ldquo To the best of the current board&rsquo s knowledge, the proposed new (directors) are not involved in matters relating to FYSCS,&rdquo the company added, in reference to its unit Fu Yu Supply Chain Solutions, which has been under investigation.
The update comes ahead of Fu Yu&rsquo s annual general meeting (AGM) on Jun 27.
In an earlier filing on Friday, the company addressed questions from the Securities Investors Association (Singapore), or Sias, as well as shareholders.
Fu Yu said that its &ldquo day-to-day operations and decision-making processes remain unaffected&rdquo by the resignation of all its previous independent directors &ndash Royston Tan, Christopher Huang and Daniel Poh.
It also addressed queries on its ongoing investigations into FYSCS &ndash relating to Fu Yu&rsquo s acquisition of the unit, purported misuse of the FYSCS&rsquo resources and a pre-paid commission.
&ldquo Currently, no fraud (in the legal sense) has been uncovered,&rdquo said Fu Yu, adding that there was no potential liability arising from the transactions in question, &ldquo as well as FYSCS in general&rdquo .
Asked by Sias if it would release findings by Rajah & Tann and PwC Risk Services ahead of the AGM, Fu Yu said that it would first conduct a &ldquo full Maxwellisation process&rdquo relating to the people mentioned in the report, which could take between four to six weeks.
Maxwellisation is a legal procedure in which those subject to potential criticism are given an opportunity to respond.
&ldquo The company (will) seek legal advice and will deliberate on its next steps after considering the information obtained through the Maxwellisation process, and will update shareholders thereafter,&rdquo said Fu Yu.
In June last year, FYSCS also received a letter of demand for US$925,773.57 in compensation from another company, Evertree Hongkong. On Jun 5 this year, an arbitral tribunal ruled in favour of Evertree, with Fu Yu required to pay S$1.67 million.
Asked about the matter, Fu Yu said that FYSCS had fulfilled its payment obligations on Jun 9 and is solvent.
Fu Yu provides updates on internal probe no court-ordered EGM after agreement with shareholder
Law firm Rajah & Tann has completed its report pertaining to the investigations over the ongoing probe of its subsidiary unit Fu Yu Supply Chain Solutions, announced Fu Yu Corporationon the evening of June 17.
The report is finalised but has not gone through the Maxwellisation process, where individuals or organisations criticised in an official report are given the chance to report before publication. Fu Yu said it will conduct a full Maxwellisation process, which is expected to take between four to six weeks.
According to the company, the report does not highlight any new transactions that require further scrutiny. The report touches on Fu Yu&rsquo s acquisition of Avantgarde Enterprise, now Fu Yu Supply Chain Solutions, the alleged misuse of the subsidiary&rsquo s resources and the payment of a pre-paid commission of US$2.98 million ($3.8 million).
The report also touches on Evertree Hong Kong&rsquo s claim of US$925,773.57 as compensation for services rendered under an alleged profit sharing agreement with Fu Yu Supply Chain Solutions dated Sept 1, 2023.
The June 17 statement also said the court application to convene an extraordinary general meeting (EGM) has come to an end. The request was made by Victor Lim Wei De, who has been working as director of strategy in the company and is the company&rsquo s largest shareholder.
The EGM call was rejected by Fu Yu, said the company on Jan 31.
In a separate statement, Fu Yu said it was &ldquo actively seeking&rdquo to appoint &ldquo experienced independent non-executive directors&rdquo to its board and has reached out to the Singapore Institute of Directors to invite suitable individuals who may be interested.
On June 15, Fu Yu announced that all three of its independent directors had resigned with effect from June 11, leaving executive director and CEO David Seow as the sole remaining board member.
Two of the directors who quit cited the persistent attempts to remove them as well as the differences in opinion over the probe in Fu Yu Supply Chain Solutions.
Amid ongoing investigations into its supply chain unit, how did Fu Yu&rsquo s board end up with only one director?
Personnel exits leave the board with no independent directors CEO David Seow remains as sole director
[SINGAPORE] A board dispute has left components manufacturer Fu Yu Corporation with no independent directors and only one executive director.
Three independent directors, Royston Tan, Christopher Huang and Daniel Poh resigned last week amid relentless efforts of its largest shareholder to have Tan and Huang ousted.
Tan and Huang resigned on Jun 11 after persistent attempts by the group&rsquo s largest shareholder and former director of strategy Victor Lim &ndash who owned some 29.5 per cent of Fu Yu shares as at Jan 9 &ndash to remove them from the board.
Poh resigned the same day, citing differences in opinion over Fu Yu&rsquo s direction on matters unrelated to the company&rsquo s day-to-day business as his reason for leaving. Tan and Huang gave the same reason for resigning.
Their exits leave the group&rsquo s chief executive officer David Seow as the sole director of Fu Yu, which has a market capitalisation of around S$72.4 million and a share price of S$0.095, as at market close on Monday (Jun 16).
It also puts Fu Yu at risk of breaching the Singapore Exchange&rsquo s (SGX) mainboard listing rules, which require at least one-third of the board to be independent and that the group has at least two independent non-executive directors.
Apart from Fu Yu&rsquo s boardroom troubles, the company is seeking claims from six individuals, including Lim.
This relates to a probe into the group&rsquo s supply chain arm, Fu Yu Supply Chain Solutions (FYSCS) over unverifiable arrangements for a payment of millions made by the unit.
The Business Times takes a closer look at Fu Yu&rsquo s boardroom woes.
Aug 7, 2024: The board of Fu Yu receives an internal audit report, dated Jul 26, saying that there is &ldquo cause for considerable concern&rdquo at its unit FYSCS.
&ldquo Significant weaknesses&rdquo in FYSCS&rsquo risk management process could expose it to unacceptable risk levels if left uncorrected, indicates the report. Further risks beyond the report&rsquo s initial scope are also identified.
Oct 8, 2024: In response to the internal audit&rsquo s findings, Fu Yu&rsquo s board engages law firm Damodara Ong to investigate FYSCS&rsquo affairs.
Nov 22, 2024: Victor Lim becomes the sole shareholder of a fund holding a controlling 29.8 per cent stake in Fu Yu. He winds down the fund on Dec 11.
Dec 19, 2024: Fu Yu says that Lim applied to join its board.
Dec 26, 2024: The board rejects Lim&rsquo s directorship application.
First call for EGM to oust directors FYSCS probe comes to light
Jan 9, 2025: Lim makes his first requisition for an extraordinary general meeting (EGM) to oust Tan and Huang, who at that point are still independent directors of Fu Yu, from the board. He cites the need for a &ldquo strategic reset&rdquo of Fu Yu amid what he describes as its poor performance and falling shareholder value.
Lim points to the group&rsquo s share price falling more than 60 per cent, from S$0.33 in 2021 to S$0.13 as at Jan 9, 2025, as well as its earnings deteriorating from a S$17.6 million net profit in 2021 to a S$10.1 million net loss in 2023.
He claims that &ldquo substantial shareholder value has been erased&rdquo since Tan and then non-executive chairman Huang joined the board.
This comes even as Fu Yu swung into the black with a S$72,000 net profit for its first half ended Jun 30, 2024, reversing a S$3.9 million loss in the year-ago period.
Lim&rsquo s requisition aims to table five resolutions in total. The first two seek to remove Tan and Huang as directors, and the others seek to appoint three individuals &ndash Gilbert Rodrigues, Ralf Pilarczyk and Yang Zhenrong &ndash as independent, non-executive directors of the group.
In response to Lim&rsquo s letter, Fu Yu says its board will convene an EGM in due course.
Jan 13, 2025: In his response, Tan expresses surprise that Lim is seeking the removal of independent directors on the basis of the Fu Yu&rsquo s performance, as the company&rsquo s financial performance is typically tied to the executive team Huang says that any strategic reset entails a company&rsquo s performance following a &ldquo J curve&rdquo pattern where it initially dips before the company recalibrates to a growth path.
Fu Yu says it has appointed lawyers to advise it on requisitioning an EGM. The group and the board reiterate that as independent directors, Tan and Huang are uninvolved in the group&rsquo s day-to-day operations.
Jan 16, 2025: The Securities Investors Association (Singapore), or Sias, questions Fu Yu&rsquo s board about Lim&rsquo s bid to oust the two directors, asking it to substantiate his claim that Tan and Huang should be removed due to Fu Yu&rsquo s performance.
Sias further asks whether the board actively engaged Lim on Fu Yu&rsquo s strategic direction, and if there had been disagreements between the board and the company&rsquo s management of its strategy.
Jan 24, 2025: Fu Yu says its reason for rejecting Lim&rsquo s bid to become a director was due to potential non-conformance to the &ldquo directors&rsquo integrity requirements&rdquo set out by the Singapore Exchange (SGX).
The company says it is open to engaging Lim and has instructed its legal advisers to reach out to him for information and documents concerning the requisition.
Feb 1, 2025: Fu Yu&rsquo s board declines to convene the EGM Lim requisitioned, stating that it obtained legal advice that the requisition failed to meet the legal requirements, being insufficient to invoke Section 176 of the Companies Act.
The group says that the probe into FYSCS&rsquo affairs is ongoing, with the board awaiting updates.
Second and third attempts to oust directors
Feb 6, 2025: The group says it received a second letter from Lim, dated Feb 5, reiterating his request for an EGM to vote on removing Tan and Huang as directors and on appointing the same three individuals he had named in his first requisition as directors.
It says it is reviewing Lim&rsquo s second letter and is seeking legal advice on requisitioning an EGM.
A report dated Feb 5 from law firm Damodara Ong provides an update saying that the investigations into FYSCS&rsquo affairs revealed that the unit made one or more unverifiable arrangements in respect of a payment of around US$3 million to a third party, for which services did not appear to have been rendered.
The probe also uncovered unauthorised use of the e-mail account [email protected] by third parties.
The report raised questions about the secondment of an individual to FYSCS as its general manager from May 2023 to May 2024 and about the said individual&rsquo s conduct.
Expense claims made to FYSCS by a former employee for herself and on behalf of a current employee of Fu Yu appeared to be from &ldquo irregular&rdquo documents, the report also found.
Separate from the investigation, FYSCS directors raised concerns about potential compliance issues linked to the internal audit report dated Jul 26, 2024, to Fu Yu&rsquo s audit committee chairperson. The group said the committee was looking into the matter.
Feb 14, 2025: In a profit warning, Fu Yu says it expects a net loss for the financial year ended Dec 2024 due to two one-off impairments totalling S$3.8 million.
The first is a one-off non-cash impairment of the remaining goodwill of S$3.3 million in connection with the group&rsquo s investment in FYSCS, primarily due to the cessation of all business activities of FYSCS in Q4 FY2024.
The second is a one-off non-cash impairment of around S$500,000 on the property, plant and equipment of a China subsidiary due to its recoverable amount being under its carrying value.
Feb 26, 2025: Fu Yu rejects Lim&rsquo s second call to convene an EGM, stating that this attempt did not meet the necessary requirements as he did not serve the required special notices to Tan and Huang.
The board says Lim did not explain how his proposed director replacements would improve the group&rsquo s share price and performance.
It adds that it will appoint independent professionals to assess the suitability and independence of Lim&rsquo s proposed appointees to comply with the Singapore Exchange Regulation&rsquo s (SGX RegCo) directive given on Feb 11.
In an update on the FYSCS probe, the group says that Lim, as well as former and current FYSCS employees, had attended interviews.
It adds that professionals appointed by the company are reviewing and evaluating the information from the interviews to advise the board on potential next steps, as well as conducting forensic analysis of electronic data to uncover evidence.
Mar 11, 2025: Lim made a third request to table resolutions to oust and appoint directors to Fu Yu&rsquo s board at its upcoming annual general meeting set to take place on Jun 27.
Fu Yu begins claims against Lim and five others
Apr 2: Fu Yu says it is pursuing claims against six individuals, including Lim, over the FYSCS probe. It adds that the claims are for its acquisition of FYSCS, the purported misuse of the unit&rsquo s resources, and the payment of a pre-paid commission of around US$3 million.
The group sent letters of demand against the individuals it is seeking claims from, to commence the pursuit of claims. They are: Victor Lim, Frank Zhang, Hazel Cai, Yasmin Lim, Wong Ka Wing and Tan Xin Yi.
Its claims against Victor Lim and Zhang are over the acquisition of FYSCS &ndash formerly known as Avantgarde Enterprise &ndash as it alleges that there was a &ldquo breach of duties, misrepresentation, and a conspiracy to cause loss&rdquo to the company.
Its claims against Victor Lim, Cai and Yasmin Lim are linked to the misuse of FYSCS resources, while its claims against Victor Lim, Cai, Wong, Tan and Yasmin Lim are over the pre-paid commission, as it alleges that there was a breach of duties and a &ldquo conspiracy to cause loss to FYSCS&rdquo .
Jun 15, 2025: Fu Yu announces that all of the three independent directors, Tan, Huang and Poh, have resigned from its board, leaving its CEO as the sole executive director.
Rule 210(5)(c) of the SGX mainboard&rsquo s listing rules stipulate that boards must have at least two non-executive independent directors and that independent directors must comprise minimally one-third of a company&rsquo s board.
Given this, Fu Yu must fill deficiencies in its number of independent directors within two months or no later than three months, an SGX RegCo spokesperson said.
The SGX RegCo spokesperson noted that a shareholder of Fu Yu had proposed certain individuals to be appointed as directors at the group&rsquo s upcoming annual general meeting set to be held on Jun 27.
In response to queries from BT, Fu Yu said that it would make announcements when there are material developments.
Jun 17, 2025: Fu Yu says that it has agreed to table resolutions for the removal and appointment of directors in response to Lim&rsquo s Mar 11 request that it do so, having been legally advised that the request is valid and must be acted upon.
It adds that it is searching for independent, non-executive directors and has reached out to the Singapore Institute of Directors to invite suitable candidates to apply.
Fu Yu seeks claims against six individuals including Victor Lim in relation to probe into subsidiary
Its largest shareholder, who attempted to oust directors and made a failed directorship bid himself, is among the six
[SINGAPORE] Components manufacturer Fu Yu : F13 +1.04% is pursuing claims against six individuals, including its largest shareholder Victor Lim, over a probe into its unit that made unverifiable arrangements for a payment worth millions.
Fu Yu Supply Chain Solutions (FYSCS), a wholly owned subsidiary of the company, was put under investigation after an internal audit revealed that it had made one or more unverifiable arrangements for a payment of around US$3 million to a third party, for which services did not appear to have been rendered, the company said in February.
Lim, one of the six, previously made several unsuccessful bids to oust Fu Yu directors and appoint new names to the company&rsquo s board, citing the group&rsquo s &ldquo poor performance&rdquo as his reasons.
A substantial shareholder of Fu Yu who owned some 29.45 per cent of its shares as at Jan 9, Lim also made a failed attempt to join the board in December 2024. He was formerly director of strategy at the precision plastics manufacturer for the past four years, but left the company in March.
On Tuesday (Apr 1), Fu Yu said that the claims are for its acquisition of FYSCS, the purported misuse of FYSCS&rsquo resources, and the payment of a pre-paid commission of around US$3 million.
The company has sent letters of demand against the persons it is seeking claims from, through its legal adviser Nine Yards Chambers, to commence the process of pursuing the claims.
The six individuals are: Victor Lim, Frank Zhang, Hazel Cai, Yasmin Lim, Wong Ka Wing and Tan Xin Yi.
It is making claims against Victor Lim and Zhang over the acquisition of FYSCS &ndash formerly known as Avantgarde Enterprise &ndash as it alleges that there has been a &ldquo breach of duties, misrepresentation, and a conspiracy to cause loss&rdquo to the company.
It is also seeking claims against Victor Lim, Cai and Yasmin Lim in relation to the misuse of FYSCS resources, as well as pursuing claims against Victor Lim, Cai, Wong, Tan and Yasmin Lim over the pre-paid commission, as it alleges that there was a breach of duties and a &ldquo conspiracy to cause loss to FYSCS&rdquo .
In response to the Fu Yu&rsquo s announcement, Victor Lim said that he was &ldquo disappointed but not surprised&rdquo at what he called the company&rsquo s &ldquo latest attempt to deflect attention from the real issues that need to be addressed, such as reduced revenues in our core manufacturing business&rdquo .
&ldquo I firmly deny any and all allegations of wrongdoing that the current board has seen fit to publicise even as the investigations are ongoing. I am confident of my position and am prepared to defend myself in court if the current board should cause the company to take legal action against me,&rdquo he added.
The company said it would update its shareholders if there are further developments, as and when necessary. It added that it would remain focused on carrying on with business as usual.
It urged shareholders to exercise caution when dealing with its shares.
Fu Yu&rsquo s largest shareholder makes new request to table motion to oust directors at AGM
Victor Lim previously made two unsuccessful bids to convene EGMs over director appointments and removals
[SINGAPORE] Fu Yu Corporation : F13 -3% said on Thursday (Mar 20) that it had received a new request from its largest shareholder Victor Lim to table resolutions to oust and appoint directors to the company&rsquo s board at its upcoming annual general meeting (AGM).
The component maker said the fresh request came on Mar 11, pursuant to Section 183 of the Companies Act, to table resolutions for the removal and appointment of directors.
Fu Yu said its board is taking legal advice on the validity of Lim&rsquo s request under Section 183, and will update its shareholders if there are material developments. It also urged investor caution in dealing with its shares.
Lim, who owned some 29.45 per cent of Fu Yu shares as at Jan 9, had made two previous unsuccessful attempts to requisition extraordinary general meetings (EGMs) on the appointment and removal of directors.
In his first attempt on Jan 9, he said he was requisitioning an EGM because of the company&rsquo s poor performance and falling share price. In a letter dated that day, he said that &ldquo substantial shareholder value has been erased&rdquo since the directors he proposed ousting were elected to the board.
He noted that the company&rsquo s share price &ldquo dropped steadily&rdquo from S$0.33 in 2021 to S$0.13 as at Jan 9, a fall of more than 60 per cent. He added that the company&rsquo s performance had &ldquo deteriorated&rdquo , going from its 2021 booking of a net profit of S$17.6 million to a net loss of S$10.1 million in 2023.
His Jan 9 letter requisitioning for the first EGM called for five resolutions to be passed. These included removing two independent, non-executive directors, Christopher Huang and Royston Tan, as well as appointing Gilbert Rodrigues, Ralf Pilarczyk and Yang Zhenrong as independent, non-executive directors.
Fu Yu&rsquo s board of directors on Jan 31 said the company would not convene the EGM as it had obtained legal advice stating that Lim&rsquo s requisition did not meet the legal requirements.
He made another attempt to call for an EGM on Feb 5, also on the grounds of the company&rsquo s poor performance. On Feb 26, Fu Yu said it rejected this push for a meeting because it did not meet the necessary requirements specifically, it said its board had been given legal advice that Lim had failed to serve the required special notice to the two directors he proposed ousting when he made the request for the EGM.
This has been burning cash for the past few years due to unprofitability.
No matter how much cash it has, as long as it is not profitable, debt or no debt it is heading towards zero
asco88 ( Date: 10-Mar-2025 09:41) Posted:
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needs 1-12 bears to surrender for cheap entry 
the mgt and substantial shareholder issue is weighty. however, to the contrary, mgt was presenting turnaround progress in line with their early transformation strategy. and how is high net cash/no unsecured loans a bad thing? is high debt preferred??
anyways, looking to nibble small some and keep for fun. have made nice percentages on this type over the years.
the mgt and substantial shareholder issue is weighty. however, to the contrary, mgt was presenting turnaround progress in line with their early transformation strategy. and how is high net cash/no unsecured loans a bad thing? is high debt preferred??
anyways, looking to nibble small some and keep for fun. have made nice percentages on this type over the years.
MrBear12 ( Date: 10-Mar-2025 07:46) Posted:
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Its below ten cents because of poor results. Making losses year on year.
no turn around in sight.
cancelling egm? Why you dont like shareholders?
another nav and cash trap company in the making.
dont be fooled!
trade with wisdom and discernnment
no turn around in sight.
cancelling egm? Why you dont like shareholders?
another nav and cash trap company in the making.
dont be fooled!
trade with wisdom and discernnment
asco88 ( Date: 10-Mar-2025 07:36) Posted:
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share price sure got weighed down by some boardroom drama. actually, was told during the management call co has added approx 25 new clients and looking to increase ' sticky' business in eg biomedical sector. interestingly, they also cleared their remaining bank loan of 3.3mil and now have zero unsecured bank loans.
company does looks like a value buy at 9.5c when their audited net cash is at 7.3c per share and NAV at 18c. approx 50% disc to NAV and net cash at 77% of market cap looks cheap. if net cash were pegged to a more reasonable 50% of mkt cap, that would imply a share price of 14.6c or upside of just over 50%!
https://links.sgx.com/1.0.0/corporate-announcements/UOXITQYUM36L2ACF/835948_Fu%20Yu%20FY2024%20Results%20Briefing.pdf
company does looks like a value buy at 9.5c when their audited net cash is at 7.3c per share and NAV at 18c. approx 50% disc to NAV and net cash at 77% of market cap looks cheap. if net cash were pegged to a more reasonable 50% of mkt cap, that would imply a share price of 14.6c or upside of just over 50%!
https://links.sgx.com/1.0.0/corporate-announcements/UOXITQYUM36L2ACF/835948_Fu%20Yu%20FY2024%20Results%20Briefing.pdf
iinvestor ( Date: 04-Mar-2025 20:36) Posted:
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Recently a lot of boardroom fights.....so drama. Like taiwan hee.
Make money lah...not war.
Shame lah FUYU management. The management try to ignore the purpose of why listed company need to appoint the independent directors. Last year made less than a million this management felt like very proud, such a funny management. Really sympathy to the poor biggest share holder.
Joelton ( Date: 15-Feb-2025 13:33) Posted:
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Fu Yu warns of FY2024 loss due to nearly S$4 million in non-cash impairments
Excluding these, the group expects to post an operating profit and an improvement in financial performance for the fiscal year
MAINBOARD-LISTED plastic parts manufacturer Fu Yu : F13 -1.79% warned on Friday (Feb 14) that it expected to report a net loss for its financial year ended Dec 31, 2024, as a result of two one-off impairments totalling S$3.8 million.
The first relates to S$3.3 million of remaining goodwill in connection with the group&rsquo s FY2021 investment in Fu Yu Supply Chain Solutions (FYSCS). This non-cash impairment is due primarily to the cessation of the business unit&rsquo s activities in the final quarter of FY2024.
The second non-cash impairment involves some S$0.5 million on the property, plant and equipment of a subsidiary in China, with the recoverable amount falling below the carrying value.
Excluding these one-off impairments, Fu Yu expects to post an operating profit as well as an improvement in financial performance for FY2024.
It intends to release its financial results on or before Feb 28, alongside further details on its performance and forward strategies.
The group also said that an ongoing inquiry into the affairs of FYSCS is &ldquo isolated&rdquo to that business unit, and does not impact its core manufacturing division.
FYSCS was found to have made one or more unverifiable arrangements involving a payment of about US$3 million to a third party, which did not appear to have provided any services. There were also potential conflict-of-interest issues in the arrangement.
Separately, on Jan 10, Fu Yu&rsquo s largest shareholder Victor Lim called for an extraordinary general meeting (EGM) to remove two directors amid falling shareholder value and what he described as the company&rsquo s poor performance.
The same month, Fu Yu declined to convene the EGM, saying it had obtained legal advice stating that the requisition did not meet the legal requirements and was insufficient to invoke Section 176 of the Companies Act. The board also rejected Lim&rsquo s earlier bid for a board seat.
On Feb 6, the group received a second letter from Lim with similar demands.
Hopefully the authority can help to investigate, something wrong here.
TA_Expert ( Date: 10-Feb-2025 23:55) Posted:
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