KUALA LUMPUR: Sunzen Biotech Bhd plans to divest its land and factory in Kota Kemuning, Shah Alam, Selangor, with a market value estimated between RM16 million and RM18 million.

Executive chairman Ching Chee Pun said the company aims to raise additional capital to support its subsidiaries' expansion in human health products (Ecolite) and financial services (Finsource Credit).

"At this point, we need more capital to expand our business, which is why we plan to sell one of the factory units due to the discontinuation of our animal healthcare business.

"The factory is valued at approximately RM16 million to RM18 million. Should we proceed with the sale, the proceeds will be invested in our money lending business," he said during a media briefing following the company's extraordinary general meeting (EGM) today.

Sunzen Biotech is primarily involved in the manufacturing and sale of human healthcare products and also operates a money lending business, focusing on loans for small and medium enterprises.

On Aug 29, Sunzen Biotech notified Bursa Malaysia that the Board approved the valuation report for properties held by its subsidiaries on Aug 28, 2024. The revaluation surplus of RM9.87 million will be incorporated into the Group's unaudited financial results for the quarter ended June 30, 2024.