Zhulian 2Q net profit up 7.63% to RM11.85 mil, declares three sen dividend

KUALA LUMPUR (July 13): Zhulian Corp Bhd registered a 7.63% rise in net profit to RM11.85 million in the second quarter ended May 31, 2022 (2QFY22) against RM11 million reported a year ago, underpinned by higher contributions from its operational activities.

In a Bursa Malaysia filing on Wednesday (July 13), the multilevel marketing group said its quarterly revenue, however, fell by 4.07% to RM36.4 million from RM37.94 million, on the back of overall weak consumer sentiment associated with the prolonged Covid-19 pandemic.

The group declared a second interim dividend of three sen per share, to be payable on Sept 7, 2022.

For the cumulative six months ended May 31, 2022, net profit surged by 54.87% to RM35.8 million from RM23.11 million in the similar period in the previous year.

Revenue, on the other hand, fell by 10.61% to RM70.97 million from RM79.39 million.

On a quarterly basis, net profit slid by 54.7% from RM26.15 million registered in the immediate preceding quarter (1QFY22) while revenue increased by 5.29% from RM34.57 million in 1QFY22.

Moving forward, the group said its business is closely linked to general consumer market sentiment and fluctuating foreign currency exchange.

"Strengthening or weakening of ringgit against US dollar will have an impact on the group's performance as all export revenues are transacted in US dollar.

"The group ensures its business sustainability by adapting to the constant market demand changes wherever possible while it remains cautious on mounting inflationary pressures.

"The group is committed to continuously improving its business operational efficiency and maintaining sufficient cash flow in the year 2022," it said.

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

Shares in Zhulian ended unchanged at RM1.95, valuing the group at RM897 million.