KUALA LUMPUR (Nov 4): Latitude Tree Holdings Bhd’s share price rose by as much as 7.59% or 22 sen to RM3.12, after the company said its indirect wholly-owned subsidiary RK Resources Co Ltd (RKR) had received a final insurance compensation of VND42.6 billion (approximately RM7.7 million) relating to a fire incident in April 2018.
At 2.53pm, Latitude shares pared gains to trade up 19 sen or 6.6% at RM3.09, translating to a market capitalisation of RM300.37 million. A total of 156,400 shares were traded.
In a filing with the bourse, the company said RKR had agreed to a full and final settlement totalling VND57.6 billion (approximately RM10.4 million) from the insurer for the fire incident, and that RKR had received an interim payment of VND15 billion (RM2.7 million) on Feb 13, which was recognised as "other income" in the financial year ended June 30, 2020.
“RKR received the final insurance compensation of VND42.6 billion (approximately RM7.7 million) on Nov 3, 2020, and will recognise the compensation as ‘other income’ in the second quarter ending Dec 31, 2020,” it said.
On April 5, 2018, the company said a factory building belonging to RKR, located within the subsidiary’s manufacturing facilities in Binh Duong province, Vietnam, caught fire.
The building houses the assembly and packing line, inventories of work-in-progress and finished goods.
It previously said the estimated loss of the fire incident was US$5.5 million (equivalent to approximately RM21.45 million at the time), comprising losses of US$3 million in inventories, US$2 million for the building and US$500,000 on machinery.