PETALING JAYA: Zhulian Corp Bhd reported a net profit of RM10.79 million for the first quarter ended Feb 28, a 19.7% increase from RM9.02 million reported in the corresponding quarter last year, underpinned by tighter control on operating costs as well as increase in share of profit from the associate.
Its revenue, however, declined 9% to RM39.45 million from RM43.34 million, due to incentive paid to customers amounting to RM3.6 million. This was treated as a reduction in transaction price, in compliance with Malaysian Financial Reporting Standards 15 (MRSF 15).
Zhulian reported an increase in sales in the Malaysian and Thai markets, while sales in Myanmar have dropped since the government there prohibited multi-level marketing (MLM) in September last year.
Zhulian has declared an interim dividend of 2 sen per share for the quarter under review.
Commenting on prospects, the group said its business is closely linked to the sentiments of general consumer market and the fluctuating currency.
“Strengthening or weakening of ringgit against US dollar will have an impact on the group’s performance as all the export revenue are transacted in US dollar,” it said
Zhulian said the group is committed to taking advantage of the positive market sentiments so as to be more competitive in the MLM market both locally and abroad.