Lion Asiapac Limited AGM 2025: Key Highlights, Strategic Updates, and Shareholder Insights

Overview of the AGM

Lion Asiapac Limited (“the Company”) convened its 55th Annual General Meeting (AGM) on 30 October 2025 at Crowne Plaza Changi Airport, Singapore. The meeting was chaired by Mr Chai Woon Chew, with full attendance from Board members (except Datuk Koong Lin Loong) and representatives from RSM SG Assurance LLP, the Company’s auditors, and Complete Corporate Services Pte Ltd and B.A.C.S. Private Limited, the appointed polling agent and scrutineer, respectively.

Key Resolutions Passed

• Adoption of Directors’ Statement and Audited Financial Statements: Approved by 99.99% of votes cast.
• Re-election of Directors: Mr Chai Woon Chew and Tan Sri Cheng Heng Jem were re-elected with over 99.5% support.
• Approval of Directors’ Fees: S\$157,000 approved for FY2025, reflecting board expansion, increased meeting frequency, and revised fee structure.
• Re-appointment of Auditors: RSM SG Assurance LLP re-appointed with 99.98% approval.
• Share Issue Mandate: Passed with 99.62% support, granting directors authority to issue new shares up to 50% of issued capital, including up to 20% non-pro-rata.
• Renewal of Interested Person Transactions (IPT) Mandate: Approved by 93.28%, allowing efficient dealings with related parties under Audit Committee oversight.

Financial and Strategic Developments

Disposal of Compact Energy Sdn Bhd (CESB)

The Company has successfully completed the disposal of CESB, an underperforming segment. Shareholders received a cash distribution from the proceeds. This strategic exit is expected to improve overall financial performance by focusing on more promising segments.

Current Business Focus and Growth Plans

• Roofing Solutions: The Group is prioritizing the growth of its roofing business. Plans include expanding production facilities to drive revenue and profitability.
• Trading Segments: The trading of steel consumables and mining equipment remains core, with both segments delivering positive gross margins.
• Investment Holdings: This segment holds a minority stake in Mindax Limited and bears operating costs such as professional fees and regulatory expenses associated with maintaining the listing.
• New Business Exploration: The Board is actively evaluating opportunities for diversification, including strategic investments in emerging sectors to generate recurring revenue and profits. A cautious approach is adopted due to prevailing economic uncertainties.

Financial Performance and Challenges

All business segments recorded losses in FY2024 and FY2025, leading to regular profit warnings. The investment holding segment continues to incur substantial losses due to operating costs and the minority equity stake in Mindax Limited.

Capital Structure and Funding

• Share Issue Mandate: Despite a strong cash position (S\$37.7 million at bank), the Company sought and received approval for a general mandate to issue new shares, providing flexibility for rapid capital raising to support future expansion.
• Borrowings: The S\$4.6 million borrowings relate to banking facilities for Swissma Building Technologies Sdn Bhd (SBTSB), used for working capital.

Directors’ Fees

The increase in directors’ fees for FY2025 is attributed to the expansion of the Board to six members, revised fee adjustments for non-independent and non-executive directors and committee roles, and a higher number of meetings. This adjustment ensures competitiveness and proper compensation for increased responsibilities.

Interested Person Transactions (IPT)

• The renewal of the IPT mandate allows the Group to transact with related parties efficiently, subject to Audit Committee oversight and strict internal controls. These transactions have historically supported the Group and generated positive margins, conducted on normal commercial terms.
• With the disposal of CESB, the volume of IPTs is expected to decrease. Importantly, there are no impairments recognized on IPT receivables.

Shareholder Implications and Price-Sensitive Information

• Strategic Refocusing: The exit from CESB and the shift toward roofing, trading, and potential new sectors may impact future profitability and growth prospects.
• Losses and Profit Warnings: Continued losses across segments and quarterly profit warnings may weigh on investor sentiment and share price.
• Potential for Capital Raising: The approval of the share issue mandate, despite ample cash reserves, signals readiness for expansion or acquisition; any announcement of a major investment or fundraising could be price-sensitive.
• IPT Mandate Renewal: Lower IPTs post-CESB disposal, with no payment issues, indicate reduced related party risk.
• Director Fee Adjustment: Board expansion and fee increases reflect increased governance and oversight, which may be taken positively or negatively by shareholders depending on perceived value addition.

Poll Results Summary

Conclusion

The 2025 AGM of Lion Asiapac Limited delivered several key updates relevant to investors. The strategic exit from CESB, continued focus on roofing and trading, pursuit of new business opportunities, and readiness for expansion through possible equity fundraising are significant developments. However, ongoing losses and quarterly profit warnings remain a concern. The Board’s actions and future announcements on new investments or sector diversification should be closely monitored for potential impact on share price.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information herein is based on the official minutes and responses from Lion Asiapac Limited’s 2025 AGM and may be subject to change.

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