KUALA LUMPUR (April 18): Zhulian Corp Bhd's net profit for the first quarter ended Feb 28, 2018 (1QFY18) fell 38.05% to RM9.02 million or 1.96 sen per share, partly because of smaller foreign exchange gains.

In the same period last year, it had posted earnings of RM14.56 million or 3.16 sen per share.

Even so, the group has declared a first interim dividend of two sen per share for the financial year ending Nov 30, 2018 (FY18), payable on June 8.

Zhulian's revenue for the quarter declined 10.42% to RM43.34 million, from RM48.38 million in 1QFY17.

The group is expecting a more challenging business environment this year, influenced by various factors such as weak consumer sentiment in regional markets and the fluctuating ringgit.

"The progressive decline of the US dollar against ringgit has adversely impacted the group's profit margin as all the export revenue is transacted in US dollars. The market will continue to remain competitive," the multi-level marketing player said in a bourse filing.

Zhulian said the group will take steps to ensure the quantitative targets are well supported, concentrating both on brand building and network strengthening strategies in order to maintain its market position in local and overseas regions.

The group will continue with its efforts to further improve the operational efficiency and productivity of its products to achieve a satisfactory financial performance in 2018.

At 5pm, Zhulian shares closed two sen or 1.34% lower at RM1.47, giving it a market capitalisation of RM676.2 million.