BY TEE LIN SAY
PETALING JAYA: Spring Gallery Bhd, the ceramics company formerly known as PFCE Bhd, is venturing into the property development sector.
The company that has seen some boardroom changes last month, is poised to get its maiden public private partnership project worth RM200mil in Terengganu, said sources.
The entrance of its new substantial shareholder and executive director Kuan Poh Huat is the catalyst behind this business transformation.
Kuan emerged in the company after he took up a 10% private placement in April.
Back then, the company placed out 9.5 million new shares at 52.2 sen to Kuan, and raised some RM4.96mil. The bulk of the proceeds from this will be utilised for working capital purposes.
Kuan was appointed as executive director of Spring Gallery on May 6. He is now the second largest shareholder with a 9.69% stake in the company.
Kuan is presently the Johor Baru MCA treasurer and a Johor Baru councillor.
Greenfield Hills Sdn Bhd is the largest shareholder of Spring Gallery with 30.91% of the company. Greenfield Hills is believed to be a friendly party to Kuan.
Another appointee with some political links appears to be Tang Nai Soon, who was appointed as independent and non-executive director on May 7.
He was the Pekan Nenas Johor state assemblyman from MCA between 2008 and 2013.
With the new shareholders and directors, it is very likely that Spring Gallery’s business will be diversifying away from ceramics and pottery. The company changed its name to Spring Gallery from PFCE at the end of last year.
An indication of the company’s aspirations to enter into property development was the filing it made with Bursa on May 28, when it said it was acquiring an RM2 company, Profit Sunland Sdn Bhd.
Profit Sunland was incorporated on May 7 with an authorised share capital of RM400,000.
“Profit Sunland is presently dormant and the intended principal activities are property development, property investment and general trading,” said Spring Gallery.
Meanwhile, Spring Gallery has undergone quite a few boardroom changes.
As PFCE, it was once an oil and gas fabricator that was controlled by Datuk Abu Talib Mohamed, the brother of Tan Sri Abu Sahid Mohamed of Maju Group.
Back in 2011, Abu Talib took control of APP Industries Bhd and renamed it PFCE. At that time, he controlled 40% of the company.
Subsequently, Abu Talib and his son Muammar Gadaffi Abu Talib sold off their stake in the company, and ceased to be substantial shareholders by April 2014. Since then, the company had been undergoing business changes.
Interestingly, Lim Beng Guan, one of the founding partners of ZJ Advisory Sdn Bhd owns a 1.76% stake in Spring Gallery.
His interest likely came about from the PFCE days, as ZJ was the advisor of Abu Sahid. PFCE was orginally controlled by Abu Talib, before he sold his stake last April.
Meanwhile, the company is already profitable,
For the third quarter to March 31, 2015, Spring Gallery recorded a net profit of RM2.18mil on the back of RM9.75mil in revenue. For the nine month period, it recorded net profit of RM3.72mil on the back of RM19.92mil in revenue. The company has cash of RM4.51mil.
The current quarter was a peak season for the ceramic business and resulted in increased export sales,” the company said in its notes.
The group has changed its financial year end from Dec 31 to 30 June. The first financial statements that made up to 30 June was for a 18-month period ended 30 June 2014.
So there are no comparative figures presented for the current quarter under review and cumulative period.
