Because company making losses.

It is capital reduction aka wipe out the capital, not price reduction.

Just like a share par value is Rm1.00 initially, which everyone put Rm1.00 as initial capital but due to company loss continously, the initial capital need to be wiped out, aka previously initial capital you put it as Rm1.00, now become Rm0.16.

But this doesn't related to share price reduction. Instead, after capital reduction, share price will be adjusted up, because previously you hold 100 lots now become 16 lots only, so share price will be adjusted upwards af the capital reduction.