Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
For the current quarter, the Group reported a lower profit before tax of RM0.33 million on the back of RM9.81 million in revenue compared with the profit before tax of RM1.58 million and revenue of RM10.97 million in the preceding year comparative quarter.
The bedding operation in Malaysia recorded lower profit before tax on the back of an 11% reduction in revenue due to lower consumer sales. The group's associates in China contributed higher profit whilst loss incurred in preceding year comparative quarter was due to impairment loss on plant and equipment in the power business. The lower profit before tax in this quarter was mainly due to higher operating expenses resulted from the charging out of corporate exercise expenses.
The discontinued stainless steel fittings operation recorded loss before tax of RM1.18 million due to loss on disposal of plant and equipment and expenses incurred to complete the business cessation.
For the current financial year ended 30 June 2018, the Group reported a lower profit before tax of RM6.28 million compared with RM14.16 million in the preceding year. Revenue contracted by 6% to RM37.90 million whilst gross profit margin improved one percentage point to 36% over the preceding year.
The bedding operations in Malaysia reported lower revenue and profit before tax mainly due to cautious private spending confidence resulted in lower consumer sales. Group's associates in China contributed higher profit. The lower profit before tax for the current year was due to corporate exercise expenses incurred in the year. Higher other income recorded in incentives received by the associates in Jiangyin in preceding year.
The discontinued stainless steel fittings operation recorded a loss before tax of RM5.22 million from operational loss and expenses incurred to complete the business cessation.
The Group expect performance of next financial year to be better mainly due to the cessation of the loss making stainless steel fitting operation.
The bedding industry will continue to build its 'Dreamland' and 'Chiro' brand through effective marketing strategies to improve sales and profitability.
Investments in associates in China is expected to continue to contribute positively to the Group.