Zhulian recorded a 2% increase in its revenue quarter-on-quarter to RM34.2mil.
PETALING JAYA: Zhulian Corp Bhd
will continue to ensure its business sustainability by adapting to the constant market demand for change while remaining cautious on mounting inflationary pressures.
Zhulian’s business is closely linked to the general consumer spending and fluctuating foreign currency exchange and the strengthening or weakening of the ringgit against the US dollar will have an impact on the group’s performance.
Hence, the group stated it is committed to managing its resources prudently and will continuously improve its business operational efficiency.
Zhulian recorded a 2% increase in its revenue quarter-on-quarter (q-o-q) to RM34.2mil.
This was despite a drop in net profit to RM6.2mil or an earnings per share (EPS) of 1.35 sen for its third quarter ended Aug 31, 2023 (3Q23).
In a filing with Bursa Malaysia, the manufacturer of jewellery and consumer products noted the decrease was mainly due to a reversal of deferred tax on dividend received from foreign associates, which was not subject to tax in the immediate preceding quarter.
Year-to-date, the group’s revenue witnessed a 4% drop year-on-year to RM100.2mil, while earnings fell 51% year-on-year to RM22.49mil, or an EPS of 4.89 sen.
The overall weak consumer spending linked to the current economic climate and growing inflationary pressure was the cause of Zhulian’s decline in revenue.
Weaker operating activity, meanwhile, was the cause of the company’s drop in net profit, it noted in its exchange filing.
Zhulian’s revenue in Malaysia saw a 24% hike q-o-q to RM8.86mil, as well as a 1% increase y-o-y to RM24.24mil, among other regions.
Meanwhile, the disposal of a leasehold plot of land in Indonesia with a net gain of RM14.4mil in the preceding year’s corresponding period was the reason behind the group’s decrease in operating activities results, which stood at RM20.5mil.
Zhulian has declared a third interim dividend of three sen per share, payable on Dec 6, 2023.
