SINGAPORE - Catalist-listed Craft Print International is venturing into chemicals and investments as it diversifies from its loss-making printing business.
It is also proposing to change its name to Abundance International Limited to reflect its new business focus.
In an announcement on Tuesday, Craft Print said it will diversify into chemicals manufacturing, trading, storage and/or the manufacture or trading of equipment, accessories, consumables or peripherals used in the chemical industry and other related business; and investing in companies and other entities.
The company has set up a joint venture company Orient-Salt Chemicals (OSC) in which it will hold a 51 per cent controlling stake, with the rest held by an individual named Jiang Hao. OSC will manufacture and trade chemicals.
Mr Jiang, currently the general manager of chemicals distributor Shanghai Orient-Salt Chemical, has many years of experience in the industry, said Craft Print. Shanghai Orient-Salt deals in chemicals related to paints, ink, medicine and polymer resin, and has a sales network across China.
Craft Print International has granted Mr Jiang put and call options relating to a total of 69.2 million Craft Print shares, subject to the profitability of OSC until December 2018, for which Mr Jiang will have to transfer shares in OSC to Craft Print. Assuming all the options are exercised, OSC will eventually become a wholly-owned subsidiary of Craft Print.
In line with the new focus, Craft Print International intends to transfer its commercial printing business to its wholly-owned subsidiary Craft Print, to allow the group to organise its current and new businesses separately.
The company said it will seek approval for its business diversification plan from shareholders at an extraordinary general meeting (EGM).
The firm will also change its financial year-end from Sept 30 to Dec 31. The current financial year will therefore cover 15 months from Sept 30, 2014, to Dec 31, 2015.
Pending commencement of its business operations, the incorporation of OSC is not expected to have any material impact on the earnings per share or net tangible assets per share of the group for the current financial year.