KUALA LUMPUR: Penang-based Oriental Holdings Bhd is seeing a third generation taking over with a slew of boardroom changes with the retirement of chairman and executive director Datuk Seri Loh Cheng Yean. 

The retirement of Cheng Yean, 71, will be effective on Dec 31, the group told Bursa Malaysia yesterday. She has been a director of Oriental Holdings since 1987 and group chairman since 1995.

She will be replaced by her nephew, Datuk Loh Kian Chong. Kian Chong is the grandson of the late Tan Sri Loh Boon Siew, the founder of Boon Siew Group and more notably known as Malaysia’s Honda King. Kian Chong’s father Loh Kar Bee is the eldest and only surviving son of Boon Siew.

Effective Jan 1 next year, Kian Chong will be redesignated as chairman and executive director from deputy chairman previously. At only 38, he is on Forbes Malaysia’s 50 richest list, with a net worth of US$410 million as at February this year.

According to Oriental Holdings’ filing with Bursa on Dec 4, Kian Chong’s deemed interest in the group was 57.06%, compared with 56.54% as at April 17. He has deemed interest in the group via Boon Siew Sdn Bhd, among other privately-owned companies. Property developer Boon Siew is Oriental Holdings’ largest shareholder, with a direct 43% stake and a 12.34% indirect stake.

Cheng Yean’s daughter, Tan Kheng Hwee, 48, was appointed executive director. Kheng Hwee, the cousin of Kian Chong, will cease to be an alternate director to Cheng Yean following her retirement as chairman and executive director on Dec 31. 

Kheng Hwee is the niece of Datuk Robert Wong Lum Kong, group managing director of Oriental Holdings as well as the person who was in charge of the automotive division for Honda distributorship in Malaysia (until 2001) and Hyundai. Wong, now 73, is still on the board of Oriental Holdings.

Additionally, Datuk Seri Tan Hui Jing, 33, was redesignated as executive director from non-independent non-executive director, effective Jan 1 next year. Hui Jing, who is the son of Datuk Dr Tan Chong Siang and also nephew of Cheng Yean, is currently the chief sales and marketing officer and deputy chairman of Boon Siew Honda Sdn Bhd.

Oriental Holdings was first established on Dec 24, 1963, and has been listed on the Main Market of Bursa since March 10, 1964. Its businesses include automotive (it owns the distributorship of Honda), hotels and resorts, plastic products, plantation, financial services, investment properties, and the trading of building material products and healthcare.

Its net profit dipped 31.5% from RM270.7 million in 2009 to RM185.4 million in 2013, while its revenue declined by 20% from RM3.44 billion to RM2.75 billion in the same period.

For the first nine months ended Sept 30, 2014 (9MFY14), its net profit rose 88% to RM212.92 million from RM113.26 million in the previous corresponding period. Revenue was 25% higher at RM2.5 billion from RM2 billion in 9MFY13.

As at Sept 30, the group had total assets worth RM6.63 billion against total liabilities of RM934.3 million.

The counter closed up two sen or 0.29% yesterday to RM6.88, giving it a market capitalisation of RM4.26 billion.

This article first appeared in The Edge Financial Daily, on December 30, 2014.