K-Star to sell land in China for RM14m

PETALING JAYA: K-Star Sports Limited's wholly-owned subsidiary company, Fujian Dixing is disposing of a piece of vacant industrial land measuring 26,973 square metres in Fujian Province, China for RMB22.5 million (RM14.28 million) cash.

The disposal will result in an estimated loss on disposal of RMB1.64 million (RM1.04 million) to the group based on the audited net book value of the land as at Dec 31, 2016.

Fujian Dixing is principally engaged in the design, manufacture and distribution of sports footwear, sports apparel and accessories under K-Star's own proprietary brands.

Fujian Dixing had entered into a sale and purchase agreement (SPA) with purchaser Ding Jindian for the exercise.

The proceed from the disposal is expected to be fully utilised by K-Star and its subsidiary companies for repayment of borrowings and working capital.

“The disposal is part of the group's streamlining exercise to improve the assets utilisation and overall financial position of the group. The board is of the opinion that the disposal will improve the group's overall financial condition as the proceed from the disposal is to be utilised for repayment of borrowings and general working capital, together with the the expected nominal finance costs saving of RMB2.64 million per year,” K-Star said in a stock exchange filing.

The disposal is expected to be completed by the third quarter of 2017. K-Star closed 5.88% lower at 8 sen, with 762,200 shares traded.


Westports’ net profit declines 6.9% in Q2 on lower container throughput, declares 6.37 sen dividend

PETALING JAYA: Westports Holdings Bhd saw a 6.9% drop in net profit to RM148.82 million for the second quarter ended June 30, 2017 against RM159.87 million in the same period a year ago, due to lower container throughput.

Its revenue also dropped 4.1% from RM522.63 million to RM501.44 million.

Westports has proposed to declared an interim dividend of 6.37 sen per share.

The group told Bursa Malaysia that its second-quarter container throughput was down by 11% to 2.23 million Twenty-foot Equivalent Units (TEUs) compared with 2.5 million TEUs recorded for the corresponding quarter last year.

Due to the ongoing changes in the container shipping industry, Westports expects its container throughput to be 7% to 12% lower in 2017 compared with 2016.

It noted that the second phase of Container Terminal 8, consisting of a 300-metre wharf and supporting terminal operating equipment and facilities, has just been completed and is expected to be operational soon.

“The total terminal handling capacity would then be increased to 12.5 million TEUs,” it said.

Meanwhile, construction work continues at the first phase of Container Terminal 9, consisting of a 600-metre wharf. It is expected to be completed by December 2017.

Westports' first-half net profit declined 12.5% from RM330.95 million to RM289.71 million, on the back of a 3.5% rise in revenue from RM987.34 million to RM1.02 billion.

At 12.30pm, the counter fell two sen to RM3.65 on some 167,900 shares done, giving it a market capitalisation of RM12.45 billion.