KANGER (0170) - Kanger eyes up to 30% sales growth in 2015
Tuesday, 7 April 2015
KUALA LUMPUR: Kanger International Bhd, China's bamboo flooring manufacturer, is eyeing up to 30% sales growth this year from RM66.72 million last year.
Managing director Leng Xingmin said in an effort to achieve the target, the company planned to widen its distribution network in China to 80 from 30 at present.
"The group is also looking at expanding its product line into bamboo-based furniture in the near term as there is demand from both local and export markets," he told reporters after Kanger International's extraordinary general meeting (EGM) here today.
At the EGM, shareholders approved the proposed diversification of principal activities to include property investment and management, and issuance of redeemable convertible note (RCN) programme of up to RM100 million.
Leng said RM22.5 million of the RCN proceeds would be utilised for construction of a commercial building, expansion of dealership (RM13.5 million), acquisition of land (RM30 million), business expansion and working capital (RM27.4 million), and expenses of proposals (RM6.6 million).
On the property investment, he said the group planned to build a 19-storey commercial building on a 1,039 square-metre site in Jiang Xi Province, China, of which the construction is expected to start in the first half of 2015 and completed within 24 months.
Leng said upon completion, the building would be leased to a Vienna Hotel chain to provide the company with a stable recurring income.
As for business operations in Malaysia, he said the group is still at the preliminary stage of building a manufacturing plant and investing up to RM8 million to open a distribution outlet.
Kanger is no longer facing a strong competition as a large number of companies had collapsed, he said, adding that the company hoped to pay dividend by 2017.
The company exports 60% of its products to the US, the Netherlands, Russia and Iran, and the rest to China. - Bernama
Tuesday, 7 April 2015
KUALA LUMPUR: Kanger International Bhd, China's bamboo flooring manufacturer, is eyeing up to 30% sales growth this year from RM66.72 million last year.
Managing director Leng Xingmin said in an effort to achieve the target, the company planned to widen its distribution network in China to 80 from 30 at present.
"The group is also looking at expanding its product line into bamboo-based furniture in the near term as there is demand from both local and export markets," he told reporters after Kanger International's extraordinary general meeting (EGM) here today.
At the EGM, shareholders approved the proposed diversification of principal activities to include property investment and management, and issuance of redeemable convertible note (RCN) programme of up to RM100 million.
Leng said RM22.5 million of the RCN proceeds would be utilised for construction of a commercial building, expansion of dealership (RM13.5 million), acquisition of land (RM30 million), business expansion and working capital (RM27.4 million), and expenses of proposals (RM6.6 million).
On the property investment, he said the group planned to build a 19-storey commercial building on a 1,039 square-metre site in Jiang Xi Province, China, of which the construction is expected to start in the first half of 2015 and completed within 24 months.
Leng said upon completion, the building would be leased to a Vienna Hotel chain to provide the company with a stable recurring income.
As for business operations in Malaysia, he said the group is still at the preliminary stage of building a manufacturing plant and investing up to RM8 million to open a distribution outlet.
Kanger is no longer facing a strong competition as a large number of companies had collapsed, he said, adding that the company hoped to pay dividend by 2017.
The company exports 60% of its products to the US, the Netherlands, Russia and Iran, and the rest to China. - Bernama
