Systech Bhd. (“Systech”), a Malaysian digital technology company with core offerings in AI-powered enterprise platforms and digital transformation solutions, today announced two strategic corporate proposals aimed at strengthening its financial position and reinforcing its corporate identity as the Group continues to execute its transformation strategy.
The proposals comprise:
- a proposed reduction of 00 millionof the Company’s issued share capital pursuant to Section 117 of the Companies Act 2016 (“Proposed Share Capital Reduction”); and
- a proposed change of the Company’s name from Systech Bhd.to WTS Capital Berhad (“Proposed Change of Name”).
The Proposed Share Capital Reduction will enable the Company to eliminate its accumulated losses through the cancellation of a portion of its issued share capital that is lost or unrepresented by available assets.
Based on the Group’s unaudited financial statements as at 31 March 2026, the exercise is expected to convert accumulated losses into positive retained earnings of approximately RM3.07 million at the Group level, after taking into account the estimated expenses of the proposals.
Importantly, the Proposed Share Capital Reduction is purely an accounting exercise and will not result in any adjustment to the Company’s share price, the number of issued shares, shareholders’ percentage holdings, net assets or cash position, apart from the estimated expenses incurred for the proposals. There will also be no impact on the exercise price or entitlement of the Company’s outstanding Warrants A.
The Proposed Change of Name to WTS Capital Berhad reflects the Group’s evolving corporate identity and better aligns with its expanding business focus. The new name underscores the Company’s strategic transformation beyond its traditional operations into higher-value digital technology solutions, including Artificial Intelligence (“AI”), Enterprise Resource Planning (“ERP”), Human Capital Management (“HCM”), Internet of Things (“IoT”), digital infrastructure solutions and other technology-driven businesses.
Managing Director of Systech Bhd., Dr Low Min Yew, said,
“These proposals represent another important milestone in Systech’s transformation journey. Following the significant growth achieved in FY2026, we are now taking steps to further strengthen the Group’s financial foundation while aligning our corporate identity with the direction of our business.
The proposed share capital reduction will allow us to eliminate our accumulated losses and restore positive retained earnings without affecting shareholders’ equity ownership or the Company’s cash position.
This places the Group in a stronger financial position and enhances our standing with financiers, customers, suppliers and investors as we pursue future growth opportunities.”
Commenting on the proposed name change, Dr Low said,
“The proposed name, WTS Capital Berhad, reflects the evolution of our business and our long-term vision as a technology-driven group. As we continue expanding our AI, digital transformation and enterprise solutions businesses, we believe the new corporate identity better represents who we are today and where we are heading in the future.”
The Board believes the Proposed Share Capital Reduction will strengthen the Group’s financial position by enabling its balance sheet to more accurately reflect the value of its underlying assets while providing greater flexibility to pursue future business opportunities, corporate exercises and funding initiatives to support long-term growth.
Both proposals are subject to the approval of shareholders at a forthcoming general meeting. Barring any unforeseen circumstances and subject to the necessary approvals being obtained, the Proposed Share Capital Reduction is expected to be completed by the fourth quarter of 2026, while the Proposed Change of Name will take effect upon the issuance of the Notice of Registration of New Name by the Companies Commission of Malaysia.
For more information, visit https://www.systech.asia/
