Sinjia Land completes disposal of unit to KH Investment Group

SINJIA Land on Friday said it has completed the disposal of its subsidiary HLN Rubber Products to KH Investment Group Limited.

The disposal of Sinjia's integrated mechanical components manufacturing businesses, consisting of HLN Rubber Products and three other subsidiaries forming the HLN Group, was announced in October 2017.

Sinjia received the second tranche of the consideration for HLN Rubber Products, amounting to S$476,000, on Jan 21, 2019, and the final tranche of US$1.05 million on Jan 16, 2020.

Following an independent valuation, the group fixed assets consideration was set at S$1.00 with agreement from both parties, as the reinstatement costs are higher than the aggregate market value of the group fixed assets, Sinjia said. As a result, it will recognise S$928,000 of impairment of group fixed assets to its profit and loss accounts for FY2019.

The board is of the view that the decision is consistent and in accordance with the terms of the sales-and-purchase agreement approved by shareholders for the disposal.

Sinjia also updated in the same announcement that a trade debts sum of S$4.68 million was repaid in December 2017.

With the disposal completed, HLN Rubber Products has ceased to be a subsidiary of Sinjia Land.

Sinjia Land shares last traded on Thursday, closing flat at S$0.018.