KUALA LUMPUR: Techna-X Bhd, which has been building up its energy storage and digital transformation businesses, will temporarily cease its loss-making metallurgical coke business operations by Dec 31, 2021.

       The company said wholly-owned Linyi Yehua Coking Co had decided to suspend its coke operations until such time when the business improved and a clearer visibility on the way forward could be established.

       In a statement, Techna-X said its coke business, which has been classified as “discontinuing operation”, remained in dire situation as it recorded a cumulative net loss of RM59.1mil for the six-month period ended June 30, 2021.

       “The temporary cessation will immediately address the ongoing operational losses as well as to stem the continuous extensive financial strain on the group,” it said.

       Executive chairman Tunku Naquiyuddin Tuanku Ja’afar said the board’s decision to temporary cease the business was an attempt to safeguard its shareholders’ value and to preserve the financial position of the group from deterioration further pending the completion of the proposed disposal of the metallurgical coke business.

       On Nov 11, 2020, the company signed a conditional agreement with Hua Fei Investment Ltd to dispose of its direct stake in wholly-owned subsidiary PIPO Overseas Ltd, and in turn its entire indirect interest in Linyi Yehua Coking Co, for RM54mil.

       The group’s metallurgical coke business has been suffering significant losses over the past few years. — Bernama