GEORGE TOWN (Sept 30): Asia File Corp Bhd (KL:ASIAFLE) is planning to deploy its growing war chest of cash for acquisitions as the debt-free stationery maker turns around financially.

“We are not necessarily seeking businesses related to the group’s core activities,” Asia File’s executive chairman Datuk Lim Soon Huat told The Edge on Tuesday (Sept 30). “So long as the businesses have growth potential and are profitable, we will consider.”

However, the Penang-based company does not have any potential deals on the table so far, he noted.

Asia File, which manufactures various filing and stationery items, has more than RM350 million in cash, cash equivalents and short-term funds at the close of its latest financial year.

The company has already returned to the black in the quarter ended June 31, 2025 (1QFY2026), from a net loss of RM45 million registered in the immediate preceding quarter due to impairment at associate company Muda Holdings Bhd (KL:MUDA).

Muda, a paper packaging company in which Asia File owns about 23%, has appropriate plans to turn around, Lim said, noting that it was the first time Asia File incurred losses due to an associate company’s performance.

For now, Asia File will strengthen its mainstay business and its other segment that makes consumer and foodware products such as plastic lunch boxes, paper bowls and paper cups.

“We will expand our e-commerce and digital marketing initiatives to enhance visibility and customer engagement,” Lim said. “The group will also launch new products across the retail and online platforms, enhance operational efficiencies and leverage a strong balance sheet.”

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