KUALA LUMPUR (Nov 13): Gets Global Bhd, whose share price rocketed to RM3.17 from barely nine sen at end-July, announced that its subsidiaries were served with a summons and claims of RM385,570 from Sinotek Autoparts Sdn Bhd (SASB).
The claims are in respect of the alleged outstanding payments for the supply of bus spare tyres by SASB to Gets Global’s wholly-owned subsidiary Super Coach Assembly Plant Sdn Bhd (SCAP) and its 79.99%-owned subsidiary Pengangkutan Awam Putrajaya Travel & Tours Sdn Bhd (PAPTT), according to Gets Global’s filing with Bursa Malaysia.
For the case against SCAP, Gets Global said the outstanding sum was RM229,303 and was overdue as at Aug 31, 2019 in respect of the supply of bus spare tyres for the period between June and Nov 2018.
“Should the judgment be granted by the court a further liability (that) will be incurred by SCAP is limited to the interest charges and costs to date of settlement,” it said, adding that there is no operational impact.
In the case against PAPTT, Gets Global said the financial impact of the litigation will result in cash outflow of RM155,267 and further liability (that) will be incurred is limited to RM1,000 additional claims, on top of the interest charges and costs granted.
The interest rate on the amount claimed for both cases is 5% per annum.
The bus operator has been in a loss-making position since FY14. For the cumulative 12 months ended June 30, 2020 (FY20), it posted a net loss of RM18.36 million, wider than the RM9.67 million recorded a year ago.
Higher loss recorded during the period was mainly due to lower revenue and provision for impairment of properties, plants and equipment, and written down inventories and receivables totalling RM15 million.
In September, the company announced its plan to venture into the manufacturing of gloves, following the emergence of a new substantial shareholder Teong Lian Aik.
Gets Global's shares price has been on a steep upward trend since early August when it was traded at around 10 sen. Since then, the company had been slapped with unusual market activity (UMA) queries by Bursa three times on Aug 26, Oct 20 and Nov 12.
The stock closed unchanged at RM3.17, after some 3.7 million shares were traded. At RM3.17, it has a market capitalisation of RM399.42 million.