The largest shareholder of manufacturer Fu Yu Corp is calling for an EGM to remove two out of the four company directors, citing its deteriorating performance.
Victor Lim Wei De, who holds 29.45% of Fu Yu shares, states in his requisition letter that the company's earnings had dropped from $17.58 million in FY2021 to a loss of $10.11 million in FY2023. The share price has dropped from 33 cents in 2021 to 13 cents as of Jan 9.
Lim wants to remove chairman Christopher Huang Junlin and another independent director Royston Tan Tong Loong, but not the other two directors, CEO David Seow Jun Hao and Daniel Poh Kai Ren.
All four directors were appointed to their roles in Fu Yu between 2021 and 2022.
In their place, Lim wants to appoint three independent directors. They are Gilbert L Rodrigues, Ralf Pilarczyk and Yang Zhenrong.
"A strategic reset of the company and reorganisation of the board will be required," says Lim in his requisition letter.
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Lim, according to Fu Yu, has been employed by the company since 2021 as director of strategy.
In its more recent 1HFY2024 ended June 2024, the company eked out earnings of $0.1 million, reversing from a loss of $3.9 million in the year earlier. Revenue in the same period was up 78% y-o-y to $126.7 million.
As indicated in its 9MFY2024 ended Sept 2024 business update, Fu Yu has improved its revenue by 55.2% to $162 million and eked out an operating profit of $0.8 million, versus an operating loss of $6.5 million.
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According to Fu Yu's Dec 19 filing with SGX, Lim previously held shares in the company via a fund but the fund has been wound down and Lim now holds the shares directly.
