KUALA LUMPUR (Oct 5): Lingerie maker Caely Holdings Bhd is ramping up its fabric mask production and has allocated about RM5 million as working capital for product diversification.
"Moving forward, Caely will be launching more new products to boost sales in the coming months with the hope to end the year on a high note under the new management," the company said in a statement on Tuesday.
Caely, based in Teluk Intan, Perak, manufactures apparel such as innerwear, sleepwear, sports and active wear and kids wear. It also produces fabric face masks specifically designed for those who don headwear such as hijabs and turbans.
The company, which has been manufacturing lingerie since 1986, said it recently diversified its production lines to include commercially produced ISO 13485-compliant reusable fabric masks in response to the Ministry of Heath's advice to "double-mask" amid the presence of the Covid-19 Delta variant.
Caely, which saw boardroom changes since last August, said it is banking on its newly appointed executive chairman Datuk Wira Louis Ng's experience in digital marketing and e-commerce to increase its online presence to take advantage of new marketing trends.
The company said it offers customisation for corporate or bulk orders in tandem with the easing of the Movement Control Order in some states where the majority of the workforce has returned to work at full capacity.
For the first quarter ended June 30, 2021 (1QFY22), Caely returned to the black with a net profit of RM740,000 from net losses of RM1.32 million in the same period last year and RM14.4 million in the preceding quarter.
The company attributed the improved performance to improved manufacturing sales, RM1.2 million received from the receivables of property and construction segment (in which amounts were impaired in the previous financial year), and gains from the disposal of a subsidiary.
Revenue rose 23.8% to RM13 million from RM10.5 million last year, while falling 9% from RM14.3 million quarter-on-quarter.
In a Bursa Malaysia filing, Caely said export sales of undergarments have gradually recovered from when the global economy was worst hit by Covid-19 in 1QFY21.
Caely said it was taking proactive steps to move forward by tapping the e-commerce business and expanding its direct sales and retail segment by collaborating with potential business partners in an effort to enlarge its product range and outlet accounts with the aim of improving its overall business performance.
Caely's share price has fallen 21.7% from its year-to-date high of 46 sen in January to 35.5 sen on Tuesday, valuing the company at RM90.09 million.