TAFI Industries unit disposes of Muar property for RM12 mil

• TAFI said its TAFPSB has entered into a sale and purchase agreement with Comfy Factor Sdn Bhd & NNST Capital Sdn Bhd for the disposal, which will realise a gain after Real Property Gains Tax (RPGT) of some RM8.1 million, based on the net book value of RM3.1 million as at March 31, 2024.

KUALA LUMPUR (June 3): TAFI Industries Bhd's (KL:TAFI) wholly-owned unit, TA Furniture & Projects Sdn Bhd (TAFPSB) is disposing of one of its industrial premises comprising a factory annexed with a storey office in Muar, Johor for RM12 million.

In a statement, TAFI said its TAFPSB has entered into a sale and purchase agreement with Comfy Factor Sdn Bhd & NNST Capital Sdn Bhd for the disposal, which will realise a gain after Real Property Gains Tax (RPGT) of some RM8.1 million, based on the net book value of RM3.1 million as at March 31, 2024.

The single storey detached factory was primarily used for furniture manufacturing.

TAFI Group had decided to dispose of the said property, which was primarily used for furniture manufacturing, as it plans to achieve cost-efficiency by sub-contracting out certain manufacturing processes.

The disposal of the said property will not affect the group’s furniture production capacity which are mainly carried out at TAFI Group’s main factory by centralising manufacturing control in one factory.

TAFI Group chief executive officer Datuk Seri Bryan Wong said that the decision to dispose of the factory was part of management’s strategy to streamline its operations while contributing positively towards its cash flow and working capital.

“Our continuing and ongoing efforts to streamline and increase efficiency of the group’s business operations have begun to show positive results whereby TAFI Group continue to be profitable for three consecutive financial years since financial year 2021”, says Wong.

“Barring unforeseen circumstances, we are confident that TAFI Group will continue to report increasing profits for our furniture as well as our property development and construction businesses in future”, he added.

TAFI shares fell half a sen or 0.9% to 58.5 sen at the closing bell, valuing it at RM222 million.

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