Spring Gallery to diversify into property

PETALING JAYA: Ceramics and pottery products manufacturer Spring Gallery Bhd proposes to diversify into the property investment and development business, which will potentially contribute at least 25% to the company’s net profit.
Currently, it is principally involved in the business of manufacturing and trading of ceramic wares, marketing of pottery and porcelain products, ceramic wares and ornaments retail, trading and wholesale of clay and porcelain products as well as property construction.
In a filing with Bursa Malaysia yesterday, the group said it believes that the diversification would contribute positively to its future earnings, improving its financial position and complementing its existing construction business.
It added that the additional revenue contribution from the new segment is expected to enhance its profitability and returns on shareholders’ funds.
Spring Gallery said the group believes that it has the capacity, capabilities and resources to diversify into the new business after taking into consideration the competency and experience of its executive directors.
The group said it intends to venture into property development through a residential development project in Kuala Lumpur, whereby it had on April 22 entered into a heads of agreement to acquire an 80% stake in Klasik Ikhtiar Sdn Bhd for RM3.5 million.