There is no indication anywhere GCB get loans from foreign banks or institutions. All indications show GCB rely primarily on Malaysian financing e.g. Sukuk Wakalah Programme (RM800 million, rated AA-IS by MARC), bank loans (RM3.4 billion in 1H2024, likely from a mix of Malaysian banks and working capital facilities).

There is news that Ivory Coast aims for 50% local cocoa processing within 2 years. Ghana/Ivory Coast has this Government Price Controls in place (This is like OPEC & US Strategic Petroleum Reserves). Guan Chong Berhad (GCB) has actively pursued initiatives to capitalize on this.
1 GCB’s Singapore subsidiary acquired a 25% stake in Transcao Côte d’Ivoire (Transcao CI) for €28.08 million (RM130.1 million), partnering with the Ivorian Coffee and Cocoa Council (CCC) to boost local processing. Transcao CI operates a 50,000-ton plant, with a second facility (total capacity: 190,000 tons) planned by end-2024.
2 San Pedro Plant: Inaugurated in 2023 with 60,000-ton capacity, set to scale to 240,000 tons across four phases.
3 Abidjan Plant: Partnered with CCC to inaugurate a 50,000-ton facility (scalable to 110,000 tons), featuring the world’s largest single-site cocoa storage (150,000 tons).

GCB is a key player in Ivory Coast’s 50% processing target, combining local partnerships, infrastructure investments, and global market access.
We see GCB’s Ivorian ventures signal their initiatives to reduced bean procurement costs and revenue diversification (value-added exports).

Prospect looks good. Cocoa future price rebounds and trading at previous low USD7,200 to USD 8,200 and as at today, USD 8,440.

Cocoa price shoots to the roof from USD2000++ in 2023 to as high as USD12000 and trading at USD7500 to 8200 as at now. Weather is unpredictable BUT cocoa farming is a concern e.g aging trees, deforestation laws, government price control, and rising chocolate consumption in China and India and effect on La Nina. I think GCB saw this coming and acquire grinding companies in other countries e.g. Indonesia, Ivory Coast, US and Germany. GCB is Asia’s largest cocoa processor and the world’s fourth-largest by capacity, with annual grinding volumes exceeding 450,000 metric tons. They are expanding their grinding facilities e.g. Ivory Coast Phase2 & Schokinag’s. Their lower profit attributes to the hedges losses-unrealized loss on forward contracts and finance cost 67% YoY due to working capital needs for bean procurement.
Keep our finger cross.

I am afraid of this. Whenever you takeover a new company, they should focus and give their attention on building that company. Whenever this happens, this shows the new owner has no intention on GTronic growth. They are in this for the money. They bought a logistic company. Logistic company business in Malaysia is limited e.g. SWIFT and etc. Why? Malaysia is small. And Logistic business associates itself with illegal activities e.g. human trafficking, drug trafficking, Scrap metals, waste transport (you do a lot of illegal things with this business)...
I guess the TATA Electronics business is OFF the table, then? WTH is he thinking?

For people like us, we should know what kind of risks we are taking. NATGATE seems to have some issues with business ethics, poor accounting practices, transparency and ambitious. There will be more of this sort of incidents in future. Its not going to be a smooth sailing. There are many instances like this e.g. ZETRIX, Lagenda and many more.
There are many level of employees 1 Top Management 2 Middle level Management 3 Skilled workers 4 Administration staffs 5 Generel workers. If you look at their shareholders, they are not born rich. They have been accumulating wealth by any means necessary and thats where they are now.
Employees who work there obviously don't have a slightest clue what is going on in their workplace such as this scrap metal thing. Very often, their management portrays their version of the story and give assurance that the issue is overly exaggerated. But there are few among them think otherwise. These few are the smart ones. These few that the management is very concern. And the management will do all the can to ensure their workers believe in whatever they are told.
Thats why they stay.

Mr. Lee Kim San, the company's Chief Operating Officer (COO), also a director who sold 300,000 shares on July 15, 2025 at RM1.680, totaling RM504,000. Timing: The sale occurred amid the MACC investigation into NationGate’s scrap metal subsidiary raising insider trading concerns. Prolonged legal scrutiny could harm its reputation. MACC’s focus on tax evasion and corruption suggests severe penalties if guilt is established.

uikkkssss....
Make or break

MACC raided NationGate Solution (M) Sdn Bhd, a subsidiary of NationGate Holdings, on July 14, 2025, as part of an investigation into scrap metal smuggling syndicates across five states (Penang, Selangor, Negeri Sembilan, Johor, and Kedah).

The raids ("Op Metal") targeted 19 locations, uncovering a syndicate accused of bribing enforcement officers to evade a 15% export tax, causing an estimated RM950 million tax loss over six years. The MACC probe focuses on undeclared scrap metal exports (e.g., to China, India) disguised as non-taxable goods smuggling high-value metals (like copper) could exploit price disparities from global tariffs. Rising copper prices may incentivize illegal scrap metal trade to bypass taxes and capitalize on demand.

The raid follows a March 2025 sell-off (linked to unrelated fraud allegations), eroding market confidence.
If proven, NationGate could face fines, reputational damage, or loss of contracts (e.g., NVIDIA partnerships).
If bribery is proven, the company could face:
A fine of 10 times the bribe amount or RM1 million (whichever is higher).
Directors/managers may also face up to 20 years’ imprisonment if culpability is established 9.

Tax Evasion (Customs Act/Income Tax Act)
The alleged RM950 million tax loss suggests potential fines linked to unpaid export taxes (15% rate) and penalties for false declarations.
While exact fines remain uncertain until the investigation concludes, NationGate could face multi-million-ringgit penalties if found guilty of tax evasion, money laundering, or bribery. The RM950 million tax loss figure indicates the scale of potential liabilities.

BUCKLE UP, GUYS!!! HERE WE GO

(Bloomberg) -- Shell Plc, one of the biggest traders of oil and natural gas, has contingency plans in case the conflict between Israel and Iran disrupts flows from the region, warning that a potential blockage of the Strait of Hormuz could deliver a substantial shock.
“If that artery is blocked, for whatever reason, it has a huge impact on global trade,” Chief Executive Officer Wael Sawan said..
The global energy market has been transfixed by the conflict between Israel and Iran, including the possibility the US may decide to join the assault.
About a quarter of the world’s oil trade passes through the Strait of Hormuz, which links the Persian Gulf to the Indian Ocean. In the past, Iran has targeted ships traversing the chokepoint, and has threatened to block the waterway. In recent days, ships’ signals have been jammed.
“Direct US entry into this conflict could be a catalyst for more direct disruptive actions against tankers and critical infrastructure in the region.”