KUALA LUMPUR: Ceramic tile maker Yi-Lai Bhd is venturing into the information technology (IT) business in partnership with a company controlled by its new executive director and major shareholder Au Yee Boon.
Yi-Lai, in a filing with Bursa Malaysia today, said it has on Sept 8 entered into a joint venture agreement with Au’s TechBase Solution Sdn Bhd to pursue new business in the field of blockchain and system integration.
Yi-Lai said it would take a 49% stake in the proposed joint venture, with Techbase holding the remaining 51% majority stake.
“The Group intends to diversify its existing businesses to include the provision of IT Solutions, namely in the provision of blockchain technology and system integration services,” it said.
“The New Business is expected to generate additional source of income to the Group, as well as to diversify and expand its earnings base,” it added.
For the first six-month ended June 30, Yi-Lai reported a loss of RM9.7mil on revenue of RM32.7mil.
The company had been making annual losses since 2017.
Au was appointed as an executive director at Yi-Lai on Aug 27 after he emerged as the single largest shareholder in the company.