Friday 29 Mar 2024
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KUALA LUMPUR (Oct 13): Zhulian Corp Bhd’s net profit for the third quarter ended Aug 31, 2021 (3QFY2021) fell 13% to RM9.57 million from RM10.99 million a year ago, as revenue declined 14% to RM36.67 million from RM42.74 million over the same period.

Despite the decline in net profits, the company announced a third interim dividend of 3 sen per share, bringing total dividend issued to date to 9 sen.

For the nine months ended Aug 31, 2021 (9MFY21), the company's net profit slipped 2% to RM32.71 million from RM33.22 million a year ago, as revenue dipped 9% to RM116.1 million from RM127.1 million.  

The company said that the slight drop in performance is mainly because the comparative December-August 2020 included the period before the World Health Organisation declared Covid-19 as a pandemic on March 11, 2020, which has since caused severe social and economic disruptions worldwide.

In terms of revenue by geographical location, the direct marketing group said revenue rose 31% in Malaysia to RM27.78 million for 9MFY21.

However, all of its other overseas markets saw declines, with the biggest drop seen in Cambodia, where revenue fell 27% to RM10.05 million from RM13.79 million. Its associate in Thailand also reported a 18% revenue drop over the same period to RM74.61 million, while other markets's topline fell 9% to RM1.23 million. Myanmar, a new geographical location for the company, recorded RM2.39 million in revenue for 9MFY21.

Going forward, the group said its business is closely linked to the sentiments of general consumer market and the fluctuating foreign currency exchange. The strengthening or weakening of the ringgit against the US dollar will also impact its performance, as its exports are transacted in US dollars.

Nevertheless, the group said it will ensure its business' long-term survival by adapting to constant market demand changes, and is committed to continuously improve its operational efficiency and maintain sufficient cash flow for 2021.

Its share price closed unchanged at RM1.87 on Wednesday, giving it a market capitalisation of RM860.2 million.

Edited ByTan Choe Choe
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