KUALA LUMPUR: Zhulian Corp Bhd recorded a lower net profit of RM9.57mil in its third quarter ended Aug 31, 2021, compared with RM10.99mil in the previous corresponding period, as operations were affected by the Covid-19 pandemic.
In a filing with Bursa Malaysia yesterday, the costume jewellery company said revenue in the third quarter dropped to RM36.67mil compared with RM42.74mil a year earlier.
"The preceding year's corresponding period partially spanned before the World Health Organisation declared the Covid-19 outbreak to be a pandemic on March 11, 2020, which has since caused severe global social and economic disruptions and uncertainties, including markets where the group operates."
Additionally, Zhulian said the share of profit of equity-accounted associates for the period under review was RM11.5mil, an increase of 12% as compared to the previous corresponding period's RM10.3mil.
"The increase was mainly attributable to impairment of certain investment costs recorded in the preceding year, which no longer recurs in the current year."
For the nine-month period ended Aug 31, 2021, Zhulian's net profit was marginally lower at RM32.71mil, compared with RM33.22mil in the previous corresponding period, while revenue dropped to RM116.06mil from RM127.08mil a year earlier. Zhulian products for export
Separately, Zhulian said total assets as at Aug 31, 2021 stood at RM603mil, which was a decrease of RM29.5mil from the RM632.5mil as at the group's previous financial year ended Nov 30, 2020.
"The decrease was mainly attributable to the special dividend in respect of the financial year ended Nov 30, 2020, paid on March 10, 2021.
"The group's total liabilities as at Aug 31, 2021 was RM43.2mil, a decrease of RM3.4mil from RM46.6mil as at November 2020."
Additionally, Zhulian said total equity dropped RM26.2mil to RM559.8mil as at Aug 31, 2021.
"The group's net asset per ordinary share as at Aug 31, 2021 was RM1.22."
On its prospects, Zhulian said its business is closely linked to the sentiments of the general consumer market and the fluctuating foreign currency exchange.
"The strengthening or weakening of the ringgit against the US dollar will have an impact on the group's performance as all export revenue is transacted in US dollars.
"The group ensures its business' long-term survival by adapting to constant market demand change wherever possible, while remaining cautious of the economic impact caused by the Covid-19 pandemic outbreak."
Zhulian said it remains committed to continuously improving its business operational efficiency and maintaining sufficient cashflow in the year 2021.
The company also declared a third interim dividend of three sen per ordinary share, to be paid on Dec 1, 2021.
Zhulian closed unchanged at RM1.87 yesterday.
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