KUALA LUMPUR (Sept 17): Formosa Prosonic Industries Bhd’s (KL:FPI) group managing director Shih Chao Yuan has become the largest shareholder of the speaker system producer after acquiring a 24.5% stake from Taiwan-based electronics manufacturer Wistron Corp last week.

According to a bourse filing on Wednesday, a total of 62.86 million shares were acquired via a direct business transaction on Sept 12 by Shih, his wife Wu Swee Ngor, and his private vehicle Formosa Prosonic Holdings Sdn Bhd.

The shares were purchased at RM1.14 apiece — a 12.3% discount to FPI’s closing price of RM1.30 on Sept 12 — for a total consideration of RM71.66 million.

Following the acquisition, Shih now holds a 6.55% direct stake and a 22.9% indirect stake in the group.

Wistron, meanwhile, has exited FPI after an 11-year investment. The Taiwanese company first became a shareholder in March 2014 when it acquired a 28% stake for 80 sen per share, or RM55.41 million.

Wistron had kept its stake unchanged until June 5 this year, when it began paring down its holdings as FPI’s share price slipped to its lowest since March 2020, before eventually exiting the group.

FPI shares hit a record low of RM1.21 on July 29, but have since rebounded, ending 15 sen or 11.5% higher at RM1.45 on Wednesday. Still, the counter has fallen more than 48% year to date, valuing the group at RM374.3 million.

FPI’s earnings have been declining since last year and the company slipped into the red in the second quarter ended June 30, 2025, recording a net loss of RM819,000 compared to a net profit of RM23.1 million a year earlier.

The downturn was attributed to lower sales volume and rising operating expenses amid weaker global demand, excess capacity, and tariff-related headwinds.

Quarterly revenue fell more than 40% to RM109.8 million from RM185 million.

For the six months ended June 30, 2025, FPI posted a net profit of RM9.85 million, down nearly 81% from RM51.7 million a year earlier. Revenue fell 38% year-on-year to RM207.3 million from RM334.2 million.

Looking ahead, FPI flagged a challenging operating environment as global uncertainties, trade protectionism, and geopolitical tensions continue to weigh on demand and disrupt supply chains. The group said it will remain vigilant and take steps to minimise risks while optimising operations.