KUALA LUMPUR (April 12): Zhulian Corp Bhd's net profit dropped 71.4% to RM6.85 million or 1.49 sen per share for the first quarter ended Feb 28, 2023 (1QFY2023), due to absence of land disposal recorded in 1QFY2022.

This compares to a net profit of RM23.94 million or 5.21 sen per share for 1QFY2022, which included a disposal of leasehold land in Indonesia, with a net gain of RM14.4 million. 

Revenue for the quarter under review, meanwhile, slipped 5.84% to RM32.55 million, from RM34.57 million previously, due to weak consumer sentiment, coupled with rising inflationary pressures. 

In a stock exchange filing on Wednesday (April 12), Zhulian said earnings from operating activities tumbled 71% to RM6.5 million, from RM22.2 million previously, mainly due to the absence of the disposal of leasehold land in Indonesia.

Despite the lower earnings, Zhulian declared a first interim dividend of three sen per share, to be paid on June 7. 

Commenting on its prospects, the group said the strengthening or weakening of the ringgit against the US dollar will impact its performance, as its export revenue is fully denominated in US dollars. 

“The group ensures its business sustainability by adapting to the constant market demand change wherever possible, while it remains cautious about mounting inflationary pressures.  

“The group is committed to continuously improving its business operational efficiency, and maintain sufficient cash flows in FY2023,” it added.  

Zhulian principally manufactures jewellery and consumer products, and sells them through a direct marketing network.  

At the closing bell on Wednesday, Zhulian was down one sen or 0.54% at RM1.83 a share, giving it a market capitalisation of RM841.8 million.