Mainboard-listed Lion Asiapac Holdings expects to make a net loss in its 2QFY2025 ended Dec 31, 2024 earnings, extending from the loss of $143,000 reported in 1QFY2025.

 

The group explains that the loss is primarily attributable to lower orders from the trading business. 

 

Further details on the group&rsquo s performance will be revealed when the group releases its results.

 

Lion Asiapac is expecting to report a net loss for 1QFY2025 ended September, it says in a profit guidance filing. 

 

The group says this comes on the back of lower orders from its trading business. 

 

According to the filing, the company says further details will be disclosed in its financial results. 

 

For its 4QFY2024, the group reported a net profit of $0.8 million, reversing from a loss of $0.6 million in 4QFY2023. The group&rsquo s revenue was also up 101% at $11.1 million in 4QFY2024, due to contributions from roofing supplies, lime sales and trading. 

has entered a conditional agreement to sell its limestone processing subsidiary, Compact Energy, for RM49 million (S$14.3 million) in cash.

 

The buyer is an investment holding company of Graymont, a Canada-based lime and limestone solutions firm.

 

Incorporated in 2004, Compact Energy specialises in limestone processing and steel consumables trading. Its lime plant is the largest producer of quicklime in Malaysia, with an annual production capacity of 390,000 metric tonnes.

 

For FY23 ended Jun 30, net loss attributable to Compact Energy was RM10.9 million. Its book value and net tangible asset value stood at RM37.9 million as at Jun 30. This translates to a gain on disposal of RM11.1 million.

 

In a bourse filing on Friday (Sep 1), Lion Asiapac said its core business of lime sales has been loss-making for some years due to &ldquo escalating&rdquo production and energy costs. The positive cash inflow of about RM48 million would improve the company&rsquo s liquidity.

 

&ldquo This would also allow the group to reallocate its resources into expanding its other existing businesses of trading and investment holdings, including the business of Semangat Meriah which the company recently acquired,&rdquo Lion Asiapac said.

 

The proceeds would also improve and optimise the utilisation of assets held by Semangat Meriah, while funding other profitable projects that Lion Asiapac is exploring, the company added.

 

The sale is considered a major transaction under listing rules and will require shareholders&rsquo approval at a general meeting. Lion Asiapac will dispatch a notice for the meeting and a circular with more information in due course.