KUALA LUMPUR: Sunzen Biotech Bhd
has announced it is shutting down its loss-making animal health division as part of efforts to bring up the group's financial performance.
In a filing with Bursa Malaysia, the group noted that the animal health unit had incurred losses over the past five financial years amid a challenging business environment.
In the financial year ended Dec 31, 2022 (FY22), the division made a revenue contribution of RM5.84mil, representing 6.01% of the group's revenue on a consolidated basis, while pre-tax loss stood at RM4.67mil.
That same year, the group registered a net profit of RM3.64mil on revenue of RM97.1mil.
"Going forward, the company would focus its resources on the existing business in human health and loan financing of which had respectively contributed 84.19% and 9.8% for the total revenue of the company for the financial year ended Dec 31, 2022," said Sunzen Biotech.
"The company and its board of directors are of the view that animal health division is no longer commercially sustainable and consider that the cessation of the business operations of animal health division is in the best interest of the company and the shareholders as a whole."
It said the cessation of operations of the animal health division will not have any material effect on the operations and financial performance of the company for the financial year ending June 30, 2024.
As at the lunch break, shares in Sunzen Biotech were unchanged at 33.5 sen a share on 723,800 units changing hands.
