KUALA LUMPUR (Apr 17): Taliworks Corp Bhd said it will make a provision of RMB4.66 million (RM2.79 million), thus reducing the group's profit accordingly by the same amount for its financial year ending Dec 31, 2015 (FY15).

This follows an arbitral award by the China International Economic and Trade Arbitration Commission (CIETAC) on April 15, 2015 which had ordered Taliworks' Chinese subsidiary Ningxia Eco Wastewater Treatment Co Ltd to pay RMB4.66 million Hua Sheng Construction Group Co Ltd in a dispute.

In a filing with Bursa Malaysia today, Taliworks (valuation: 2.4; fundamental 1.5) said CIETAC had ordered Ningxia Eco to pay a lower penalty amount of RMB4.37 million as opposed to Hua Sheng’s claim of RMB11.3 million after losing in the arbitration.

Ningxia Eco is also required to bear Hua Sheng’s legal cost of RMB200,000 and property preservation fee of RMB5,000, as well as pay half of the arbitration cost or RMB78,495 to Hua Sheng.
 
"There will be no material impact to the net assets per share of the group," said Taliworks.

Taliworks shares closed up 0.44% at RM2.29 today, bringing a market capitalisation of RM999.68 million.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)