Sern Kou Resources Berhad announced that its wholly owned subsidiary, Valued Products (M) Sdn Bhd, has obtained a new RM7 million financing facility from CIMB Islamic Bank Berhad. This increases the subsidiary’s total banking facilities with the bank from RM9.5 million to RM16.5 million. If the new facility is fully utilized, the group’s gearing ratio is expected to rise only slightly from 0.55 times to 0.58 times, based on its latest audited financial statements for the financial year ended 30 June 2025.

The company’s two core segments delivered mixed results, with Furniture facing major challenges while the Wood division remained marginally profitable.

The Manufacturing & Trading of Furniture segment recorded a loss before tax of RM4.8 million, mainly due to high ocean freight costs, geopolitical uncertainties, and the strengthening of the Ringgit against the US Dollar, which reduced export profitability.

Sern Kou to dispose of Johor land for RM4mil

Sern Kou said the proposed disposal will allow the group to strengthen its liquidity and cash flow position by raising total net cash proceeds of RM3.67mil, which will be utilised as working capital.