Zhulian 9M profit plunges 67% to RM35.8 mil, declares 2 sen dividend for 3Q

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KUALA LUMPUR (Oct 15): Zhulian Corp Bhd saw its net profit plunged 73.8% to RM10.4 million in the third quarter ended Aug 31, 2014, from RM39.6 million in the previous corresponding quarter.

Revenue also plummeted 54% to RM57.2 million, from RM124.1 million a year earlier.

The company declared a third interim single tier dividend of 2 sen per ordinary share in respect of 3QFY14, making its total dividends at 8 sen year-to-date.

According to a filing to Bursa Malaysia, Zhulian’s net profit for the nine-month period also came in sharply lower at RM35.8 million, versus RM107.3 million in the same period last year.

Revenue meanwhile had reduced sharply to RM188.9 million, from RM339.1 million a year ago.

Zhulian, which is a multi-level marketing firm specialising in jewelleries, attributed the decrease in earnings to be in line with the drop in revenue, which was mainly due to a fall in both local and overseas market demands.

“The outlook of the current year remains challenging in the midst of stiff market competition and economic uncertainty, which will likely cause an impact on consumer confidence on spending,” said Zhulian on the current year prospects.

The stock closed 1 sen lower at RM2.35 today, with a market capitalisation of RM1.09 billion.