PETALING JAYA: Sern Kou Resources Bhd
(SKRB) has announced that its 51%-owned subsidiary, Sern Kou Plywood Sdn Bhd (SKPW), has decided to cease its plywood manufacturing operations.
In a filing with Bursa Malaysia, the company said SKPW has been incurring continuous losses since financial year 2024 (FY24), adding that there is no reasonable expectation that its financial performance will improve in the foreseeable future It added that SKPW will progressively undertake the necessary winding-down activities, including the realisation of inventories, collection of receivables, settlement of liabilities and contractual commitments, handling of property, plant and equipment (PPE) and employee-related matters.
“The PPE may be leased or disposed of based on an internal review, the estimated impairment amounts to approximately RM338,000. The Cessation will affect 88 employees, comprising 14 local employees and 74 foreign workers. “A small number may be retained for winding-down functions, while the remaining employees will be retrenched and/or transferred within the group, where applicable.” SKRB said the estimated retrenchment cost is RM200,000, subject to final computation.
“The cessation will only affect SKPW’s manufacturing operations and will not have any impact on the group’s other manufacturing businesses, including furniture manufacturing and sawmill operations.
“As such, SKPW’s manufacturing operations do not constitute a major business or operations of the group as the revenue contribution of SKPW amounts to approximately 3.57% of the group’s total revenue for FY25.”
