KUALA LUMPUR (Dec 12): Sinotop Holdings Bhd has proposed to dispose of its Chinese assets involved in fabric production via an open tender to fund its other existing business.

In an exchange filing today, the group said these assets comprise its investments in its wholly-owned subsidiary Be Top Group Ltd and Be Top’s unit, Top Textile (Suzhou) Co Ltd.

“The proceeds from the proposed disposal will be mainly utilised for working capital purposes by Sinotop and its remaining wholly-owned subsidiary Gorgeous Goldhill Sdn Bhd to enhance and strengthen its existing project management services and infrastructure construction business to generate earnings for the group,” read the filing today.

Sinotop said its original cost of investment totalled 142.22 million renminbi, or RM67.17 million.

“Based on the deteriorating financial performance of the foreign assets, eroding profit margin and the competitive business environment, the board is proposing to dispose of its foreign assets. Upon completion of the proposed disposal, the project management services and infrastructure construction business will be the sole core business of Sinotop group,” it said.

The proposed disposal, which is subject to shareholders’ approvals, is expected to be completed by the second quarter of next year.

Shares in Sinotop closed one sen or 3.7% higher today at 28 sen, valuing the group at RM110.57 million.