KUALA LUMPUR (July 14): Hit by the pandemic, multi-level marketing company Zhulian Corporation Bhd’s net profit fell 9.36% to RM10.3 million for the second quarter ended May 31, 2021, from RM11.36 million a year ago.

Revenue slipped 3.93% to RM37.94 million, from RM39.5 million, as Covid-19 caused severe social and economic disruptions and uncertainties, including in markets where the group operates, the group said in a bourse filing.

The group declared a second interim dividend of 3 sen per share, totalling RM13.8 million, to be paid on Sept 1.

For the first half ended May 31, 2021, Zhulian’s net profit rose 4.12% to RM23.14 million, from RM22.23 million in the previous corresponding period, while revenue dropped 5.87% to RM79.39 million from RM84.34 million.

Zhulian said its business is closely linked to sentiments of the general consumer market and fluctuating foreign currency exchange, thus the strengthening or weakening of the ringgit against the US dollar will have an impact on the group’s performance, as all export revenue is transacted in US currency.

“The group ensures its business long term survival by adapting to the constant market demand change wherever possible, while remaining cautious of the economic impact caused by the coronavirus outbreak.

“The group is committed to continuously improving its’ business operational efficiency and maintaining sufficient cash flow in year 2021,” it added

Zhulian’s share price closed one sen or 0.53% lower at RM1.87 today, valuing the group at RM860.2 million.