MKH to sell China furniture unit for RM49.5 mil

• The group has entered into a deal to sell Vast Furniture Manufacturing (Kunshan) Co Ltd to Kunshan Meiao New Energy Technology Co for 84 million yuan (RM49.53 million) in cash, according to a bourse filing on Wednesday.

KUALA LUMPUR (Sept 17): MKH Bhd (KL:MKH) has proposed to dispose of its furniture manufacturing subsidiary in China to focus on its property and plantation business.

The group has entered into a deal to sell Vast Furniture Manufacturing (Kunshan) Co Ltd to Kunshan Meiao New Energy Technology Co for 84 million yuan (RM49.53 million) in cash, according to a bourse filing on Wednesday.

The assets covered under the disposal include a piece of land measuring 40,140 sq m together with six industrial buildings and other buildings and utilities infrastructure as well as machinery, office equipment and vehicles.

MKH said the disposal is expected to result in a gain of RM26.55 million from the disposal.

"The proposed disposal is in line with the group’s direction to focus on its core business in property development and construction, oil palm plantation and property investment," the group said.

It added that the disposal is expected to be completed by Dec 31 and will not have a material impact on the group’s earnings for the financial year ending Sept 30, 2025.

MKH shares fell one sen or 0.99% to RM1, giving the group a market capitalisation of RM650 million.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.