KUALA LUMPUR (Nov 23): Kanger International Bhd’s wholly-owned China-based unit YanShan (Country) Kanger Bamboo Industry Co Ltd (YanShan Kanger) has been directed by the YanShan County’s to cease its factory operations until further notice.

In a filing with Bursa Malaysia today, Kanger said YanShan Kanger is recommended to temporarily stop operations or transfer its factory under the directive of the YanShan County, in respect of expediting the county’s development and beautification of the environment.

“The Group is currently engaging in active dialogue with the relevant local authorities on this issue, including seeking reasonable compensation caused by the stop operations,” Kanger said, adding that the group is waiting the reply from the relevant local authorities and will make further announcement on the development with regards to the above matter as and when necessary.

Based on the audited accounts of YanShan Kanger for the financial year ended Dec 31, 2017, the total revenue contributed by YanShan Kanger to the Group was approximately 9.84%, Kanger said.

According to its Annual report 2017, YanShan Kanger is involved in the trading of bamboo flooring and related products.

Shares of Kanger closed half a sen or 7.14% at 6.5 sen, valuing it at RM57.94 million. Year-to-date, the stock fell as much as 67.5% from 20.5 sen.