Texchem Q2 losses almost double on Tim Ho Wan closure

PETALING JAYA: Texchem Resources Bhd, which saw its losses almost double in the second quarter, said the RM5.3 million closure costs from the Dim Sum Delight Sdn Bhd business, the operator of Tim Ho Wan restaurants in Malaysia, were provided for in the second quarter of 2017.
"As Dim Sum Delight is a 51% subsidiary of the company, the impact to profit after tax and non-controlling interests is RM2.7 million. There is no impact on the share capital and substantial shareholders' shareholdings, earnings and earnings per share and net assets and gearing for the group for the financial year ending Dec 31, 2017," Texchem said in a stock exchange filing.
It added that the closure of Dim Sum Delight and the subsequent appointment of interim liquidator do not have operational impact on the group.
Early this month, Dim Sum Delight ceased operations of its two restaurants in Malaysia to minimise losses. It had incurred losses for the year of RM895,642 amid the soft and competitive retail market.
For the second quarter ended June 30, 2017, Texchem saw its net loss widen to RM6.11 million from a net loss of RM3.52 million a year ago, mainly due to its restaurant division.
Its revenue rose 9% to RM270.93 million compared with RM248.47 million in the previous corresponding quarter.
For the six month period, Texchem's net loss also widened to RM6.69 million from a net loss of RM5.73 million a year ago, while it posted a revenue of RM541.91 million compared with a negative revenue of RM505.30 million in the previous year.
Texchem closed unchanged at RM1.29, with 6,900 shares traded.