KUALA LUMPUR: Tafi Industries Bhd is expected to realise a gain before tax of approximately RM5.71mil following the disposal of a factory by its wholly owned unit, T.A. Furniture Industries Sdn Bhd (TAFISB).

       In a filing with Bursa Malaysia, TAFI said TAFISB had entered into a sale and purchase agreement to dispose of one of its industrial premises in Muar, Johor to Duthai Trading Sdn Bhd for a cash consideration of RM9mil.

       It said the disposal would realise a gain before tax of approximately RM5.71mil for TAFI Group based on the next book value of RM3.29mil as at Dec 31, 2021.

       TAFI said the single-storey detached factory was primarily used for laminating process and storage of boards which are raw materials for furniture manufacturing operations.

       “TAFI Group had decided to dispose of the said factory as it will be more economical and cost efficient to purchase the finished laminated boards or to sub-contract out the lamination process.

       “The disposal of the said factory will not affect the group’s furniture production capacity of furniture which are being carried out at TAFI Group’s other factories,” it said.

       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 and increase the efficiency of the group’s business operations.

       “The disposal of the factory at RM9mil will realise a gain before tax of RM5.71mil for TAFI Group and will contribute positively towards its cashflow and working capital position,” he said.