KUALA LUMPUR (Nov 18): Trive Property Group Bhd (KL:TRIVE) has proposed a share capital reduction to wipe out RM85 million of the company’s accumulated losses, in a move designed to better align its financial position with its actual asset base.

This step, according to a bourse filing on Monday, is intended to enhance the credibility of the group with its bankers, investors, customers, and other stakeholders.

As of Nov 8, 2024, Trive has an issued share capital of RM196 million, consisting of 1.26 billion ordinary shares and 505.45 million outstanding warrants. These warrants are exercisable into an equivalent number of new shares at an exercise price of five sen per share.

Accumulated losses stood at RM82.06 million at the end of its 12 months ended July 31, 2024 (FY2024).

Trive Property has been loss-making in seven of its eight past financial years.

In FY2024, net loss narrowed to RM5.05 million, from RM17.46 million in FY2023, as revenue grew 7.5% to RM9.84 million, from RM9.14 million.

The proposed share capital reduction is subject to approval by Trive’s shareholders, as well as a court order from the High Court of Malaya, confirming the capital reduction, in accordance with Section 116 of the Companies Act 2016.

The company has indicated that, barring any unforeseen circumstances, the reduction is expected to be completed in the first half of 2025.

M&A Securities has been appointed as the principal adviser to Trive for the proposed share capital reduction.

Trive, through its subsidiaries, is involved in the research, development, design, and marketing of battery management systems for rechargeable energy storage solutions.

This segment provided 77% or RM7.58 million of its revenue in FY2024, and posted an after-tax loss of RM1.46 million that year.

Meanwhile, its property investment segment provided the remaining revenue of RM2.26 million, and posted RM1.25 million in after-tax profit in the year.

Separately, the group also operates in construction and property development. Geographically, Trive has a presence in Malaysia, Hong Kong, and Singapore.

Trive shares closed unchanged at four sen, giving it a market capitalisation of RM51 million.