MClean Technologies Berhad (“MClean Technologies” or the “Company”), an established provider of precision cleaning and surface treatment solutions, today announced a change in the shareholding structure of its 55.0%-owned subsidiary, DWZ Industries Sdn. Bhd. (“DWZ”). This follows a sale and purchase agreement between Decor Industries Pte Ltd (“Decor”) and Dufu Technology Corp. Berhad (“Dufu”), where Decor will be selling a 25.0% stake in DWZ to Dufu.
Following the completion of this transaction, MClean Technologies’ shareholding in DWZ remains unchanged at 55.0%, while Dufu will become a new shareholder with a 25.0% stake, and Decor’s shareholding will be reduced to 20.0% from the previous 45.0%.
DWZ is principally engaged in the surface treatment and finishing of metal parts, a key segment that complements MClean Technologies’s core business in precision cleaning and treatment solutions. The involvement of Dufu, a reputable company in the technology and engineering sector, is expected to further enhance DWZ’s growth potential through strategic collaboration and operational synergies.
This transaction follows a period of strong financial performance for MClean Technologies. The Company recently announced its fourth consecutive profitable quarter in FYE2024, reflecting continued business momentum and successful cost-optimisation efforts. For FYE2024, MClean achieved revenue of RM61.3 million, a 28.2% increase from the previous year, while profit before tax (“PBT”) surged to RM6.37 million, a significant turnaround from the loss before tax of RM5.33 million in FY2023. This sustained profitability demonstrates MClean Technologies’ ability to capture growing market demand, particularly in the Hard Disk Drive (“HDD”) and consumer electronics sectors.
Additionally, MClean Technologies has made strategic moves to expand its revenue streams, including the acquisition of We Total Engineering Sdn. Bhd. (“WTE”), a plastic injection moulding business. Acquired at its net book value of RM6.04 million, WTE is expected to diversify MClean Technologies’s income streams and create synergies with its existing operations. The expansion into the plastic injection moulding industry aligns with MClean Technologies’s long-term strategy to broaden its service offerings and cater to high-growth sectors such as automotive, electronics, oil and gas, and medical devices.
Dato Dr. Terence Tea Yeok Kian, Executive Chairman and Executive Director of MClean Technologies commented, “We welcome Dufu as a new shareholder in DWZ. Their presence will bring additional expertise and strategic value to the business, possibly generating a potential growth of around 15% in the short term, and more in the longer term. This partnership reflects our commitment to expanding our capabilities and leveraging strategic collaborations to unlock new growth opportunities. With our sustained profitability and expansion into plastic injection moulding, we are confident in MClean Technologies’ future growth trajectory and ability to deliver long-term value to our shareholders.”
