Deep Dive

In the early years, Lion Group was built on modest beginnings in metal fabrication, where its founder William Cheng operated a small manufacturing business producing steel and metal products. The strategic pivot towards steel production would later define the group long-term industrial direction.

In 1972, the group made a decisive move into steel manufacturing with investments in Indonesia, while simultaneously expanding its regional trading network. This expansion coincided with government driven industrialisation policies across Southeast Asia, where steel became a critical backbone industry. The group leveraged this shift to scale production and integrate family controlled resources into a cohesive industrial platform.

In the 1980s, Lion Group emerged as one of Malaysia largest steel producers, manufacturing hot rolled coils, cold rolled coils, steel bars, and wire rods. Its domestic market share approached 60% at its peak. Steel operations became the group most reliable source of cash flow, providing the financial base for future diversification. During this period, William Cheng earned the reputation as the Steel King within the industry.

From the mid 1980s onwards, the group began leveraging capital markets to accelerate expansion. It established multiple listed entities including Lion Industries Corporation Berhad, Lion Corporation Berhad, Lion Diversified Holdings Berhad, Lion Forest Industries Berhad, and ACB Resources Berhad. These listed platforms enabled the group to raise capital efficiently while structuring its businesses across different sectors, forming a complex but scalable corporate network.

In 1987, the group made a significant strategic shift by entering the retail sector through the establishment of Parkson Holdings. Its first department store was opened in Sungai Wang Plaza in Kuala Lumpur. This marked a transition from purely industrial operations into consumer facing businesses. The Parkson brand expanded rapidly and later entered China in the 1990s, becoming one of the earliest Southeast Asian retailers to establish a presence in the Chinese department store market.

From the early 1990s to the mid 1990s, Lion Group underwent aggressive diversification. Its portfolio expanded into tyre manufacturing, automotive components, forestry, property development, and mining. The Silverstone tyre brand gained regional recognition during this period. Through the combination of industrial scale and capital market access, the group at one point controlled as many as 13 listed companies, making it one of Malaysia most prominent conglomerates.

In 1997, the Asian financial crisis marked a turning point. The group previous expansion had been supported by relatively high leverage, which became unsustainable as financial markets tightened and steel prices declined. Several business units came under pressure, forcing restructuring and asset rationalisation. The crisis exposed vulnerabilities in the group capital structure and marked the end of its most aggressive expansion phase.

From 1998 to the late 2000s, Lion Group undertook a gradual consolidation strategy. Non core assets were divested or merged, and the group refocused on its core segments of steel, retail, and property. This period was characterised by financial discipline and efforts to stabilise operations after the crisis.

In the 2000s, the steel division continued under key operations such as Amsteel Mills and Megasteel, while retail remained anchored by Parkson Holdings, particularly through its expansion in China. The group maintained a relatively diversified structure, though no longer at the scale seen in the 1990s.

From the 2010s onwards, structural challenges began to intensify. The global steel industry faced persistent overcapacity and pricing pressure, while traditional department stores encountered competition from e commerce platforms and shifting consumer behaviour. These trends placed sustained pressure on the group core businesses, limiting growth momentum.

In recent years, Lion Group has remained active across its core sectors but operates within a more constrained environment. Its trajectory reflects the broader evolution of industrial conglomerates that rose during periods of rapid industrialisation but later faced structural transformation across both manufacturing and retail sectors.