KUALA LUMPUR (April 16): Trading in China-based casual and sports shoemaker Xidelang Holdings Ltd shares spiked this morning after it had announced its plans to venture into the reusable face mask business.
At 11.16am, volume traded in the counter surged to as high as 94.35 million shares, versus its 200-day average volume of 18.83 million shares. On Bursa Malaysia, at the time of writing, it is the fourth most actively traded counter.
The stock rose as much as 21% before it pared some of its gains, rising one sen or 14.29% to eight sen, bringing its market capitalisation to RM144.39 million.
Yesterday, in a filing to the local bourse, Xidelang said it will be setting up a new material technology division for this venture, and it will be sourcing the necessary material and technology for the products from BiTiChong, the company said in a press statement today.
BiTiChong is principally involved in the development and production of baby and healthcare products, including medical-use and regular-use face masks, it said.
Positive on the new venture, Xidelang also said both parties inked a collaboration agreement on April 13 for the new venture, under which Xidelang will be in charge of manufacture and sale of the masks.