For the 2 months current quarter ended 31 December 2021, the Group achieved sales revenue of RM124 million with gross profit of RM10 million. The Operating loss for the quarter RM8 million was mainly due to the provision of inventory written off of RM14 million and receivable provision/ receivable written off of RM2 million.
During this current quarter, the company has made a provision of remediation of foreign worker recruitment fee amounted to RM4.9 million. This is in line with the implementation of a “zero recruitment cost” policy in recruiting foreign workers. The total estimated remediation fee was RM9 million, out of which RM4.1 million has been paid during the financial period. The remaining RM4.9 million is estimated to be paid in Q1FY2022. The Group achieved 2 months profit after tax of RM10 million which is 8% of net profit margin. For the 11 months current quarter ended 31 December 2021, the Group achieved sales revenue of RM1.39 billion. The Group achieved 11 months profit after tax of RM424 million which is 31% of the net profit margin
In view of weak in recent global gloves demand, the commission of additional three (3) double former dipping lines are being on hold by the Group. In addition, the existing twelve old lines of single former production are dismantled. This is to optimize and rationalize the existing capacity.
On the other hand, the Group is developing more specialties gloves to differentiate itself from others. The Group is continuing to focus on online efficiency and automation to achieve better economies of scale that will improve the overall profit margin. The glove average selling price (ASP) will be continued to decline owing to increasing in gloves supply and slower buying patterns from customers. However, the emergence of new Covid-19 variants may help slow the drop in ASPs, before an equilibrium is reached between supply and demand. The new wave of Omicron globally has raised expectations that the elevated demand for gloves will sustain longer than initially anticipated. Hence, the usage and demand as a protective barrier will also increase in the immediate term.
Moving forward, the Group remains optimistic towards its long-term prospects and well prepared to capitalise on the market opportunities to continue growing and succeed for years to come.
