KUALA LUMPUR (Nov 26): Ceramic tile manufacturer Kim Hin Industry Bhd has agreed to accept the 60.18 million yuan (RM35.79 million) compensation offered for the relocation of its properties in Zhujing Development Area in Shanghai.
The acceptance, it said, is in accordance with the compulsory requisition of the affected area of Kim Hin Ceramic (Shanghai) Co Ltd’s land by JinShan District for a development project.
The Chinese subsidiary needs to surrender the affected buildings by Dec 31 or will be charged interest for each day of delay, the group said in a filing with Bursa Malaysia.
Kim Hin said the compensation money will be utilized partially to fund the reconstruction costs of the affected buildings and facilities and the related relocation costs. The excess will be kept for future investment purposes.
“As the acceptance of relocation compensation is expected to be finalized only in the first half of year 2020, it shall contribute positively to the net assets and earnings per shares of the group for the financial year ending Dec 31, 2020,” the group said.
Kim Hin’s shares closed at RM1.03 today, down five sen or 4.63% from yesterday, bringing the group a market capitalisation of RM144.45 million.