KUALA LUMPUR (Sept 27): ACE Market-listed financial technology (fintech) solution provider TFP Solutions Bhd, whose share price trended upwards in the last two months but experienced a sharp fall recently, told Bursa Malaysia that it is not aware of the reason behind the unusual market activity (UMA).
At the closing bell on Monday, the counter settled 4.55% or half a sen higher at 11.5 sen with some 42.42 million shares changing hands.
However, the loss-making company's share price, which climbed 10 sen or 81% from early July to as high as 23.5 sen on Sept 7, has since pared more than the gains it made after dropping 12 sen or 51%.
TFP Solutions said there is no other corporate development relating to the group's business and affairs that has not been previously announced that might account for the trading activity, including those in the stage of negotiation/discussion, except for the following:
• A memorandum of understanding (MOU) between its 75% indirectly owned subsidiary Jejak Semangat Sdn Bhd (JS) with special purpose company Landasan Salam Sdn Bhd (LSSB) for the implementation of the "fiber-to-the-home & 5G" project. Both JS and LSSB had mutually agreed to extend the exclusivity period of the MOU for an additional one month up to Oct 14, 2021.
• The acquisition of approximately 10% of the share capital of Ace Innovate Asia Bhd (AIAB) to diversify the existing businesses of TFP Group to include mobile fintech-related business. TFP and the vendors of AIAB had mutually agreed to extend the completion date by another 20 business days to complete the share sale agreements.
According to the group's filing with Bursa Malaysia on Monday, the board is not aware of any rumour or report concerning the business and affairs of the group or any other possible explanation that might account for the trading activity.
Separately, in its latest financial result for the quarter ended June 30, 2021 (2QFY21), its net loss widened to RM1.82 million compared with RM1.25 million a year ago due to additional payroll costs and increased consultancy fees by hiring additional business development consultants and staff for the fintech segment.
Quarterly revenue fell 20.93% to RM1.24 million from RM1.57 million on lower sales of hardware of the business management solutions segment, despite increase in the quantity of Mobile Airtime Reload sold.
Looking ahead, in view of the continuous efforts by the government to boost digitalisation activities, TFP anticipates that this will provide opportunities for the group to grow the fintech segment through brand awareness, brand loyalty and subscriber-retention initiatives.
"Furthermore, the group intends to undertake long-term enhancement and development of system upgrade as well as market research analysis and marketing efforts on potential new users and targeted markets such as rural communities in Pahang and Sabah, through collaboration with government agencies for fintech segment. The management is currently exploring and identifying other fintech-related products and services, which may include mobile payments and other further expansion of fintech-related business in the medium to longer term," it added.
The company has been loss-making since FY16.