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For the current quarter, the Group reported a profit before tax of RM2.23 million on the back of RM10.15 million in revenue compared with the profit before tax of RM1.25 million and revenue of RM11.69 million in the preceding year comparative quarter.
The bedding operation in Malaysia reported lower profit before tax as a result of the 15% reduction in revenue. Higher profit contribution was recorded by associates in power business.
For the current quarter, the stainless steel fittings operation recorded a higher loss of RM2.87 million on the back of RM6.70 million in revenue compared with RM0.05 million and revenue of RM3.70 million in the preceding year comparative quarter. The loss is mainly due to the clearance of the ex-stock at lower prices and payment relating to cessation of employment for the employees.
For the first half of the financial year, the Group reported a higher profit before tax of RM4.37 million compared with RM3.98 million in the comparative first half of the preceding financial year. Revenue declined by 4% to RM18.93 million whilst gross profit margin improved two percentage point to 37% over the comparative period.
The bedding operations in Malaysia reported lower revenue and profit before tax. Higher profit contribution recorded from associates in China mainly came from power business.
For the first half of the financial year, the stainless steel fittings operation recorded a higher loss of RM3.33 million compared with RM0.45 million in the comparative first half of the preceding financial year. The higher loss was recorded as disclosed in Note (a) above.
The Group expects the performance for the remaining quarters ending 30 June 2018 to be positive.
The bedding division will employ effective advertising and promotional activities to achieve higher sales and implement cost control measures to maintain profit margin.
Investment in associates in China for the power business is expected to continue to contribute positively to the Group.