KUALA LUMPUR: Khee San Berhad (KSB), a well-established Malaysian candy confectionery manufacturer and distributor, is set to chart a path to recovery as shareholders today approved its Proposed Regularisation Plan at an Extraordinary General Meeting (EGM).
The Group demonstrated resilience by recording seven consecutive quarters of profitability, laying a strong foundation to uplift its PN17 status.
The comprehensive regularisation plan includes a proposed rights issue with warrants, a scheme of arrangement with creditors, and a share capital reduction. These measures are expected to strengthen the company’s financial position, ensuring its ability to meet obligations and pursue growth opportunities.
The rights issue is expected to raise up to RM96 million, which will be used to fund the Group’s restructuring efforts and restore financial stability. KSB will also introduce an Employees’ Share Scheme as part of the regularisation plan, aimed at attracting and retaining key talent to support its future growth.
Following its PN17 status, KSB has already taken steps to achieve a turnaround, with new majority shareholders and the finalisation of the regularisation plan laying the groundwork for sustained profitability and growth.
Since then, KSB has actively tapped into opportunities to expand its distribution channels and product range to boost revenue growth. Alongside securing new retail channels in Malaysia, the Group has also penetrated new export markets including New Zealand, Mauritius and Taiwan through distribution partners. KSB has also modernised its market approach by launching its ‘Candy Kingdom’ social media platform and establishing a presence on e-commerce platforms.
Meanwhile, as part of its product development efforts, KSB introduced new additions to its popular Fruit Plus range, as well as launching Beyond Fruit Plus, a new range of vegan and gluten-free candy products, catering to growing consumer demand for more health-conscious confectionery options.
Looking ahead, Malaysia's sugar confectionery retail sales is expected to grow to RM485 million by 2026. To tap into opportunities, KSB has outlined robust expansion plans, including investment in a new high-speed production line to increase manufacturing capacity, entry into additional new export markets, as well as continued product development.
KSB executive chairman, Yong Loong Chen said, “Since our establishment in 1976, we have a strong track record of 48 years of experience in manufacturing high quality and diversified candy products. We have built recognisable and enduring brands across different geographies and target markets. We will continue to build on this in order to position the Group for sustained growth in the competitive confectionery market.”
“Towards this end, the approval of the regularisation plan is a significant step forward for Khee San. With a solid plan for financial recovery, we are confident that the Group is on the right path toward long-term success,” concluded Yong.
