K-Star Sports wants time extension for Fujian Dixing

KUALA LUMPUR: K-Star Sports Ltd is applying for an extension of time for its unit Fujian Dixing Shoes Plastics Co Ltd to obtain its land-use-rights and property ownership certificates from the People's Republic of China (PRC) authorities on two pieces of land.

In a filing to Bursa Malaysia on Monday, July 5, the company said its adviser Public Investment Bank Bhd had submitted an application to Securities Commission for an extension of time for a period of six months from July 20 this year to Jan 19, 2011 in obtaining the land-use-rights.

According to the company's prospectus on May 11 this year, Fujian Dixing is required to obtain the land-use-rights and property ownership certificates for its Factory A Land and Factory B Land within six months from the letter of approval dated Jan 20 this year.

Factory A land is a 6-storey factory cum warehouse building together with parts of the 6-storey staff dormitory cum office building, the 7-storey staff dormitory building and the 9-storey administrative cum staff dormitory building.

With a land area of 2,581 sq m (27,781 sq ft) and built-up of 12,000 sq m (129,166 sq ft), the land is currently used for Fujian Dixing's production operations and housing two of its production lines and catering for approximately 55% of its production capacity (excluding subcontracts).

Meanwhile, factory B land has three buildings comprising a 2-storey staff dormitory building, a 2-storey factory building and a 1-storey ancillary factory building. It is presently used for Fujian Dixing's production operations and housing one of its production lines and catering for approximately 20% of its production capacity (excluding subcontracts). It has a land area of 3,100 sq m (33,368 sq ft) and built-up of 4,200 sq m (45,208 sq ft).

The rationale of the extension is due to the process that involves the consent or approval of various PRC authorities, the time-consuming administrative procedures and no further development on the previous applications as at June 29.