Fu Yu Corporation- Former Super Hero Cash Cow Became Bleeding Cow.

What a change of fortune for Fu Yu Corporation ("Fu Yu Corp") since the original owners sold off the business to the new owner.  Fu Yu Corporation was sold by its founding shareholders-Ching Heng Yang, Tam Wai, Ho Nee Kit, and Hew Lien Lee- to a fund managed by Pilgrim Partners on 18 January 2021. On that date, Pilgrim Partners’ vehicle acquired approximately 29.8% of the company (around 224 million shares) at S$0.26 per share, in a deal valued at roughly S$58.3 million. From a former superhero dividend cash cow generator, Fu Yu Corp has unfortunately became a shadow of its former self. 

1.  Opening of Smart Factory and Venture into Bio-medical Market Segment

Apparently, the opening of the smart factory which have state of the art technologies such as 3D printing and automation in Singapore as well as the new strategic growth into bio-tech sector, did not boost revenue and net profit. Worse still, the business performance went opposite and is now operating in a net loss position. 

2. Recent New Woes- Infighting Among Internal Stakeholders

Victor Lim, one of the substantial shareholders wanted a board seat with executive power to push forward a strategic reset for Fu Yu Corp. The crash between the senior managmenet team and Victor Lim has been onging since 2024. This does not bode well for the entire business when its leadership team is distracted from running the business. Saying that, my personal thoughts are that Victor does have valid concerns on the current direction of the business which is clearly not working out as one can see from the losses suffered since the exit of the founding shareholders.

3. Corporate Governance Issues

The fiasco of the USD3Mil in unverified payments and email irregularities in Fu Yu Supply Chain Solutions seems to be unresolved and investigation are still ongoing.

Parting Thoughts

As of 18 June 2025, its share price is traded at S$0.09 per share. This is a far cry from its glorious days of S$0.25 to S$0.30 per share range before the exit of the founding shareholders. Hope that most retail shareholders had already exited last year before the crash to below 10 cents a share.