KFM KINGDOM (03816) announced that on September 29, 2025 (after trading hours), the company's wholly-owned subsidiary KPM Malaysia entered into a sale and purchase agreement with KBT regarding the disposal transaction, with a total consideration of RM2.1081 million.

According to the announcement, KPM Malaysia is primarily engaged in precision metal manufacturing business, with metal stamping machines being the main equipment used. As mentioned, these machines have been previously utilized by KPM Malaysia to serve the group's clients in the medical and testing equipment industry.

Over the past two years, demand from the group's clients in the medical and testing equipment industry has declined, while demand from clients in the network and data storage industry has increased due to rising demand driven by global artificial intelligence development.

Given that the machines are currently idle, the company intends to sell the machines to KBT, which is primarily engaged in CNC production, enabling the group to expand its metal stamping production capacity and focus on providing metal stamping production services to clients in the network and data storage industry.

The disposal transaction is expected to generate net proceeds of RM2.1081 million, thereby enhancing the group's working capital.