KUALA LUMPUR (April 12): HIL Industries Bhd said its wholly-owned subsidiary in China is to cease business operations after suffering losses due to the US-China trade war.
The subsidiary, Hil Precision Plastic Technology (Suzhou) Co Ltd (HPPT), was established in Suzhou, Jiangsu Province, and manufactures precision moulds and relevant plastic products.
“The group has decided to cease the business operations of HPPT, as it is highly dependent on our US-based customers which have restructured their operations in China arising from the US-China trade war, hence resulting in us losing our business,” HIL said in an exchange filing.
The subsidiary posted an operating revenue of RM3.31 million, gross loss of RM413,498, and loss before tax of RM3.55 million, for the financial year ended 31 December 2022.
The setting up of the Suzhou plant in 2006 was HIL's first foray into the overseas market, according to its annual report.
With over 12,000 square metres of built up factory, the plant was involved in mould making, injection moulding, spray painting and various unique decoration technologies as well as sub-assemblies.
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84 comment(s).Last comment by IDQWE001 2023-05-02 18:32
I will say it is not possible to change the world trend already. The world trend is multi polarity and BRICS+ rising and more and more important. Everyone in the global south can see it....except those who wish CCP ill.
China's achilles heel at the moment is chips and chips self reliance but since high end chips is only 2% of all chips consumed in the world, its not a fatal weakness and it too will be solved within 5 years.
Investment shall follow the flows and must understand the international affairs.
CCP lost his The Most Favour Nation and Developing Country status, high tariff will be imposed by the Western. With Global Supply Chain Realignment take place all currencies investment in ASEAN countries will boost the economy, in coming 10 years ASEAN countries rise are foreseen. But don't be silly to challenge the global trends.
Thucydides trap...China is calmly solving the problems and will come out stronger. As for America politicians and media, they were unable to rise up above thucidides trap...but nevermind, China is spending time and money to promote brics+ and a new world order......Malaysians who cheer for America unipolarity and China/ Ccp ill are i.diots .....it's good to see Malaysia Anwar making all the right statements
Latin America, Africa, middle east, central Asia, ASEAN countries.....everyone is behind the project of multipolarity...no one wants to remain as slaves of American unipolarity
Economically , America has lost it already...what America has is its military unipolarity and a comforming corporate media working together with their military complex.. .. .but China and brics+ and global south will win
And if apple choose to leave China completely, let them do it la....it will be devastating for apple and very miminum impact on China....better still Chinese consumers can buy cheaper Huawei and forget about Apple
Latest trade and FDI statistics from China....explosive growth in China in q1 .... analysts imf and everyone revising upwards their expectations for China in 2023
Alibaba's Hong Kong shares slump on SoftBank's stake sale report
TOKYO, April 13 (Reuters) - Japanese technology investor SoftBank Group Corp (9984.T) has moved to sell almost all of its remaining shares in Alibaba Group Holding Ltd (9988.HK), , the Financial Times reported, sending the Chinese e-commerce giant's Hong Kong-listed shares lower.
The sale would come as valuations of China's big tech firms have started recovering this year after an end to two years of heightened regulatory scrutiny, providing a window for long-time investors such as SoftBank to reduce exposure to an economy battered by strict pandemic policies and Sino-U.S. tension.
SoftBank's share price closed down 1% on Thursday, versus a 0.3% rise in the broader market (.N225). Alibaba, one of the most valuable assets in SoftBank's portfolio, tumbled as much as 5.2% in Hong Kong and closed down about 2%.
Tencent Holdings Ltd's (0700.HK) shares plunged on Wednesday after the social media giant's top shareholder Prosus NV (PRX.AS) said it may sell more of its shares, underscoring selling pressure on Chinese tech names.
SoftBank has been seeking ways to monetise its stake in Alibaba, which the Japanese conglomerate bought into more than two decades ago by spending just $20 million.
"They have been clear that ... they need to monetise profitable holdings," Jon Withaar, head of Asia special situations at Pictet Asset Management, said of SoftBank.
"Perhaps some expected that they may slow the pace of their selling in now that their Arm IPO is moving closer to completion, but ultimately everything they are doing is within the scope of what they have told the market."
Neither SoftBank nor Alibaba responded to Reuters' requests for comment.
SoftBank aims to list British chip designer Arm this year in an initial public offering (IPO) that would raise at least $8 billion, people familiar with the deal told Reuters last month.
On Wednesday, the FT said forward sales based on filings at the U.S. Securities and Exchange Commission showed SoftBank's Alibaba stake would eventually fall to 3.8% from almost 15%.
"The positions were already hedged when forward contracts were signed, so there is no more impact on public market," 86Research analyst Xiaoyan Wang said.
The Japanese group, led by billionaire founder Masayoshi Son, has sold about $7.2 billion worth of Alibaba shares this year through prepaid forward contracts, the newspaper said.
SoftBank said the transactions reflected a shift to "defensive mode" to address an uncertain business environment and that it would provide details in its quarterly earnings results announcement in May, the British newspaper reported.
"China's regulatory environment in the internet sector turned drastically tougher in recent years, and this is SoftBank simply responding to the changing environment, as it has already been doing," said SBI Securities analyst Shinji Moriyuki. "It is well within the realms of expectations that the proportion of Chinese shares among its total investment will shrink further."
SoftBank booked a $34 billion gain last year by cutting its Alibaba stake to 14.6% from 23.7%, as the firm sought to shore up cash reserves amid steep losses incurred by its Vision Fund.
Vision Fund, which upended the tech world with big bets on startups, posted a staggering 8 trillion yen ($60.45 billion)loss in calendar 2022 as market turmoil slashed portfolio firms' valuations, prompting SoftBank to raise cash.
At the time, it also used prepaid forward contracts - a type of derivative contract that allows investors to hedge risk.
In New York, Alibaba's shares were up 3% as analysts noted that the stake sale was more due to SoftBank's circumstances.
Alibaba has lost more than two-thirds of its value from highs touched in late 2020, hit by increased regulatory action in the technology sector that included a hefty fine on Alibaba and scrutiny of founder Jack Ma's business empire.
The Chinese firm plans to split into six units and explore fundraisings or listings for most of them, marking the biggest restructuring in its 24-year history.
Then evil supporters start shouting i.diot, telling lies, traitors etc. showing them a very pity and hopeless because they know you are telling the truth with facts and figures but they don't know how to answer ...
Question: If a person not work for the evil factory why can't he tell the truth ? or If a person work for the evil factory why can't he tell the truth ? very very pity it shows that the evil sopporter is hopeless and anxious. He knows that it was a truth but have to deny it because he can't answer it.
Xi jinping has given up on American coming to it's senses and trying to stop China's development.....in Xi jinping view, America is practically ungovernable except in it's unity in suppressing China's rightful development....but Xi jinping and CPC wishes to declare that China will continue it's reform path, that China will be open for business, ....that China will promote shared destiny for mankind to solve common problems facing mankind.
As far as Xi jinping is concerned, the unipolar moment when America is the only top dog in town ie 1990 to 2010 is over. The world is moving towards multi polarity and whether America like it or not, they cannot stop it .
Question: If a person not work for the evil factory why can't ..........
Obviously foreign funds will flow to ASEAN countries from now, a dynamic economy system due to supply chain realignment, Malaysia will get all currencies funds and benefit from that. Apple advised their suppliers to extend their productions in India, Vietnam, Thailand etc. Malaysia has strong E & E sectors, if work harder increase $1000+ GDP per capital then will be on par with CCP. Finally Malaysia win.
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Posted by IDQWE001 > 2023-04-13 09:04 | Report Abuse
KUALA LUMPUR (April 12): HIL Industries Bhd said its wholly-owned subsidiary in China is to cease business operations after suffering losses due to the US-China trade war. The subsidiary, Hil Precision Plastic Technology (Suzhou) Co Ltd (HPPT), was established in Suzhou, Jiangsu Province, and manufactures precision moulds and relevant plastic products. “The group has decided to cease the business operations of HPPT, as it is highly dependent on our US-based customers which have restructured their operations in China arising from the US-China trade war, hence resulting in us losing our business,” HIL said in an exchange filing. The subsidiary posted an operating revenue of RM3.31 million, gross loss of RM413,498, and loss before tax of RM3.55 million, for the financial year ended 31 December 2022. The setting up of the Suzhou plant in 2006 was HIL's first foray into the overseas market, according to its annual report. With over 12,000 square metres of built up factory, the plant was involved in mould making, injection moulding, spray painting and various unique decoration technologies as well as sub-assemblies.