KUALA LUMPUR, MY / ACCESS Newswire / October 11, 2025 / Ge-Shen Corporation Berhad ("Ge-Shen" or the "Group"), an established service provider of precision engineering and manufacturing solutions, specialising in high-quality plastic, printed circuit board assembly ("PCBA"), liquid silicone rubber and complete assembly for diverse industries, today announced a series of strategic corporate proposals aimed at strengthening its position in the electronic manufacturing services ("EMS") sector and supporting long-term growth.

The proposals include a proposed acquisition of an additional 40% equity interest in Local Assembly Sdn. Bhd. ("Local Assembly") for a total purchase consideration of RM52.00 million, to be satisfied via a combination of RM39.00 million in cash and RM13.00 million through the issuance of 8.67 million new shares. Upon completion, Local Assembly will become an 80%-owned subsidiary of Ge-Shen, enabling greater control and earnings consolidation.

Local Assembly's operations are segmented into two core divisions; assembly of electrical and electronic connectors and assembly of bicycle components and plastic moulding. The company serves multinational clients across Malaysia and Singapore and has demonstrated consistent profitability over the years. Notably, for the nine-month financial period ended 30 September 2025 ("FPE 2025"), Local Assembly recorded a profit after tax ("PAT") of RM8.59 million, surpassing its full-year PAT of RM7.87 million in the financial year ended 31 December 2024 ("FYE 2024"). This strong performance underscores the company's operational resilience and growth potential, particularly in the high-value EMS segment.

To support its strategic expansion, Ge-Shen has proposed two private placements. The first private placement involves the issuance of up to 41.40 million new ordinary shares, representing up to 10.00% of the total issued shares of the Company. The proceeds from this exercise, estimated at up to RM60.02 million, will be utilised primarily for working capital, repayment of bank borrowings, and expenses for the proposed private placement.

Separately, the second private placement entails the issuance of up to 30.16 million new shares, representing up to 6.50% of the total issued shares. This placement is expected to raise up to RM43.73 million in gross proceeds, which will be used to partially fund the cash consideration for the proposed acquisition of Local Assembly, as well as for working capital and associated expenses.

Dr. Adrian Foong Hong Nian, Chief Executive Officer/ Executive Director of Ge-Shen

Dr. Adrian Foong Hong Nian, Chief Executive Officer cum Executive Director of Ge-Shen said, "This acquisition marks a significant milestone in our transformation journey. Local Assembly has demonstrated strong capabilities in connector assembly, plastic injection moulding, and sub-contract assembly for electrical appliances. By increasing our stake, we are consolidating earnings and enhancing our ability to drive strategic direction and operational execution. The private placements will provide us with the financial flexibility to support expansion, optimise our capital structure, and pursue new opportunities in high-growth sectors such as Artificial Intelligence ("AI"), data centres, and industrial electronics."

The acquisition is expected to contribute positively to the Group's future earnings and is aligned with Ge-Shen's vision to be a globally recognised engineering and manufacturing solutions provider. Local Assembly has recorded consistent profitability and is well-positioned to capitalise on the growing demand for high-speed data transmission products and AI infrastructure. The Group's recent acquisitions of Amity Technical Services & Consultancy (M) Sdn. Bhd. and Amity Research & Development Sdn. Bhd. have further strengthened its capabilities in engineering services and technical innovation.

Ge-Shen continues to prioritise business development and new product introduction projects to meet customer demand and drive revenue growth, particularly in the medical, industrial, consumer electronics, AI, and data centre infrastructure markets. The Group has expanded its production capacity through factory expansions in Kedah, Penang, and Vietnam, enabling it to handle larger volumes and products with new specifications. The proposals are expected to be completed by the first quarter of 2026, subject to regulatory and shareholder approvals.

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ABOUT GE-SHEN CORPORATION BERHAD

GE-Shen Corporation Berhad ("Ge-Shen" or the "Group") is a leading provider of precision engineering and manufacturing solutions. With operations in Malaysia, Vietnam, and Singapore, Ge-Shen specialises in the production of high-quality plastic, printed circuit board assembly ("PCBA"), liquid silicone rubber and complete assembly for industries including medical, electronics, and industrial manufacturing. The Group continuously invests in technological advancements to drive operational excellence and sustainable growth.

For more information, visit www.gscorp.com.my

Issued By: Swan Consultancy Sdn. Bhd. on behalf of Ge-Shen Corporation Berhad

For more information, please contact:

Jazzmin Wan
Email: j.wan@swanconsultancy.biz

Xinyi Ching
Email: x.ching@swanconsultancy.biz

SOURCE: Ge-Shen Corporation Berhad