PETALING JAYA: Zhulian Corp Bhd reported a net profit of RM11.36 million for its second quarter ended May 31, a 41.8% drop from the previous corresponding quarter’s RM19.53 million, attributable mainly to the movement restriction order (MCO) which mandated the group to stop all production, hence affecting its ability to fulfil sales orders.
Zhulian said its share of profit of equity accounted investee of RM6.7 million was RM6 million lower than last year’s corresponding period of RM12.7 million, due to the impairment of investment cost in a property development project.
“The management of the equity accounted investee had decided to defer construction due to unfavourable market condition and forecast. Notwithstanding our share of this impairment loss, the direct marketing operation of the equity accounted investee had generated higher profit than last year corresponding period,” it said.
Revenue for the quarter was lower at RM39.5 million, from RM52.32 million.
For the six-month period, Zhulian posted net profit and revenue of RM22.23 million and RM84.34 million respectively, down from RM30.32 million and RM91.78 million a year before.
Looking ahead, the group said its business is closely linked to the sentiments of the general consumer market and the fluctuating foreign currency exchange. As such, any strengthening or weakening of the ringgit against the US dollar will have an impact on the group’s performance as all export revenues are transacted in US dollars.
“The group ensures its business long-term survival by adapting to the constant market demand change wherever possible, while remain cautious to potential reverberation from the economic impact already caused by Covid-19 pandemic.
“The group is committed to continuously improve its business operational efficiency and maintain sufficient cash flows in the year 2020,” it said.
