LKL’s new chairman Chen Chaw Min quits after less than a month on the job, Seacera CEO joins board

LKL’s new chairman Chen Chaw Min quits after less than a month on the job, Seacera CEO joins board
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KUALA LUMPUR (March 29): LKL International Bhd’s non-executive chairman Datuk Seri Dr Chen Chaw Min, who was appointed just less than a month ago, has resigned from his post, citing other personal commitments.

The 60-year-old was appointed to the group's board on March 1.

According to the group’s website, Chen is also currently the chairman of ProtectHealth Malaysia. He also sits on the boards of the National Heart Institute (IJN), the National Kenaf & Tobacco Board, the Clinical Research Malaysia (CRM) and ProtectHealth Corp.

Meanwhile, LKL announced it would be appointing Zulkarnin Ariffin, 48, as its executive director. Zulkarnin is currently the chief executive officer (CEO) of Seacera Group Bhd.

LKL also said it will be appointing additional independent directors within three months to comply with Bursa Malaysia’s listing requirements for the ACE market.

This is the second departure of an independent director from the group this month. Just last week, on March 23, Kong Weng Kiat, 35, resigned as an independent and non-executive director, also citing other personal commitments.

A day before that, on March 22, independent director Datuk Chong Loong Men, 42, was redesignated as the group's non-independent director.

The boardroom changes came a few days after Focus Dynamics Group Bhd announced on March 19 that it was spending RM37.5 million for a 30% stake in LKL, to establish Focus Dynamics’ medical arm, which will allow it to expand its list of medical-related products via LKL’s supplier network.

For the third quarter ended Jan 31, 2021 (3QFY21), LKL was back in the black with a net profit of RM59,000, from a net loss of RM1.01 million in the immediate preceding quarter of 2QFY21, on higher sales with a more favourable product mix. Quarterly revenue rose 20.46% to RM11.59 million from RM9.62 million. For the nine months ended Jan 31, 2021 (9MFY21), LKL's cumulative net profit slumped to RM293,000, from RM1.17 million in the corresponding nine months in FY20, despite a 20.86% increase in revenue to RM40.49 million from RM33.5 million, as it recorded higher expenses.

Shares in LKL closed 5.06% or two sen lower at 37.5 sen, valuing it at RM188.03 million. It saw 23.15 million shares done.

Tan Choe Choe