KUALA LUMPUR (June 12): Sern Kou Resources Bhd has announced that 90 employees in its wholly-owned subsidiary Sern Kou Furniture Industries Sdn Bhd have been tested Covid-19 positive in Muar.

In a filing with Bursa Malaysia, the furniture maker said 12 foreign employees of its subsidiary were first confirmed to be infected on Wednesday, June 9.

An additional 78 foreign employees were tested Covid-19 positive after the group voluntarily underwent Covid-19 mass-screening test for all its foreign workers at its dormitories located in Bukit Bakri in Muar, Johor on Thursday, June 10.

All foreign employees are currently placed under quarantine and isolation, it added.

“Despite the group has not been operating since the inception of Full Movement Control Order (FMCO), the group was further instructed by Kementerian Kesihatan Malaysia (KKM) to temporarily stop its operations from June 11 until June 17, 2021, unless it receives further advice or instruction from KKM,” it said.

Sern Kou is expected to resume its operations in stages after the end of the FMCO period, by strictly adhering to KKM’s guidelines and Covid-19 preventive standard operating procedures (SOPs).

Meanwhile, other unaffected production facilities at different locations in Malaysia will continue to remain in full operation except during the FMCO period, it added.

“The temporary cessation of business is expected to result in delay for the shipment of several orders to its customers. The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for these orders and expects that there will not be any adverse impact to the group,” it said.

The group expects to increase production with extended shifts upon re-commencement of manufacturing activities.

Nonetheless, the group does not expect any material impact to its financial performance, other than the cost incurred for the Covid-19 test and disinfection cost.

Sern Kou shares price fell 4.5 sen or 6.8% at 62 sen yesterday, for a market capitalisation of RM489 million. There were 13.38 million shares traded.

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