EKSONS

0.520

(%)

OTHERS EKSONS CORPORATION BERHAD ("EKSONS" OR "THE COMPANY") - TENANCY AGREEMENT ENTERED BETWEEN RAJANG PLYWOOD (SABAH) SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY AND SL WOOD PRODUCTS SDN. BHD. ("TENANCY AGREEMENT")

EKSONS CORPORATION BERHAD

Type Announcement
Subject OTHERS
Description
EKSONS CORPORATION BERHAD ("EKSONS" OR "THE COMPANY") - TENANCY AGREEMENT ENTERED BETWEEN RAJANG PLYWOOD (SABAH) SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY AND SL WOOD PRODUCTS SDN. BHD. ("TENANCY AGREEMENT")
Reference is made to the Company's announcement dated 23 December 2022 (“Previous Announcement”). Unless otherwise stated, the terms used herein shall have the same meanings stated in the Previous Announcement.

The Board of Directors of EKSONS wishes to disclose the following additional information in respect of the Tenancy Agreement:-

1. Financial and Operation Impact in relation to the leasing of the Demised Premises

The leasing of the Demised Premises will generate a recurring revenue of RM 25,000 per month, with a potential upside from the variable rate in excess of one thousand (1,000) metric tonnes of the monthly gross production. The operational cost on the leasing of the Demised Premises will primarily be the insurance cover for factory and machineries leased. Barring any unforeseen circumstances, we do not foresee a major financial impact from the leasing of the Demised Premises.

2.  Financial impact on the discontinuation of the plywood business

The plywood division still holds a substantial amount of inventory in plywood and sales of the plywood would continue into the foreseeable future, with expectation of beyond a one (1) year period. The discontinuation of the plywood business will result in Cost savings on direct labour of RM 4.0 million per annum and Cost savings on repairs and maintenance of RM 0.6 million per annum. Barring any unforeseen circumstances, we do not foresee a major financial impact from the discontinuation of the plywood business.

3.  Segmental Profit from each business segments including plywood business based on Audited Financial Statement and Quarter Report

Based on the Audited Financial Statement as at 31 March 2022, the plywood division contributed to a loss after taxation of RM 10.6 million, while the property development division contributed to a profit after tax of RM 2.5 million. For the first half of the financial year 2023 reporting, the plywood division contributed to a loss after taxation of RM 0.2 million, which included a gain on disposal of property, plant and equipment amounting to RM 1.9 million while the property development division contributed to a profit after tax of RM 2.2 million.  


This announcement is dated 29 December 2022.





Announcement Info

Company Name EKSONS CORPORATION BERHAD
Stock Name EKSONS
Date Announced 29 Dec 2022
Category General Announcement for PLC
Reference Number GA1-29122022-00008