KUALA LUMPUR (May 14): Cypark Resources Bhd (KL:CYPARK) group chief executive officer Datuk Daud Ahmad has resigned from his post, effective from Tuesday.

Daud, a co-founder and substantial shareholder, stepped down from the role to “provide the opportunity for Cypark to transition into its next phase as Malaysia’s leading Bumiputera-led renewable energy company”, Cypark said in a filing with Bursa Malaysia.

“Executive chair Datuk Ami Moris and executive director Muhammad Ashraf will lead the company through a leadership transition over the next 12 months, in concert with the ongoing strategic review the company has embarked upon,” it added.

Daud did not respond at press time when contacted.

Daud’s departure as Cypark's CEO comes after the company started its ongoing strategic review of its business in February.

Selected key management officers, including Daud, were requested to go on unrecorded leave in late March to enable an independent and transparent review.

For the third quarter ended Jan 31, 2024 (3QFY2024), the group reported a net loss of RM27.98 million, on a revenue of RM35.89 million. There is no year-on-year comparison, as Cypark changed its financial year end last year to April 30 from Oct 30.

The net loss was due to a rise in amortisation to RM21 million, as a result of a policy revision by the company's new audit committee, which appeared to disagree with the extension of its waste-to-energy plant's useful life.

As at Jan 31, the group’s total borrowings stood at RM1.47 billion and assets at RM2.93 billion, including intangible assets of RM929.09 million and receivables of RM101.45 million.

Daud was not re-elected as a non-independent executive director in the company's 18th annual general meeting in October last year.

Even as Daud relinquishes his managerial role, he remains Cypark’s second-largest shareholder with an 8.37% stake, after major shareholder Jakel Group with a 21.47% stake. Other substantial shareholders include the Social Security Organisation (Socso) with a 6.66% stake, and Chung Chee Yang with 5.62%.

Daud obtained 14 million shares, or a 1.7% stake, via an employees’ share option scheme at an exercise price of 38 sen per share.

Shares in Cypark ended unchanged at 93.5 sen on Tuesday, giving the group a market capitalisation of RM765.21 million.