KUALA LUMPUR (Oct 11): Jewellery and consumer products maker Zhulian Corp Bhd reported its third consecutive quarter of net profit decline on Wednesday, mainly due to lower results from its operating activities, and a lower share of profit from its equity-accounted associates.

It posted a net profit of RM6.2 million for its third quarter ended Aug 31, 2023, down 14.36% from RM7.24 million in the previous year’s corresponding quarter, as revenue came in at RM34.2 million, compared with RM32.96 million previously.

Earnings per share dipped to 1.35 sen from 1.57 sen, its bourse filing showed. The group declared a third interim dividend of three sen per share, to be paid on Dec 6, raising year-to-date (YTD) dividends for FY2023 to nine sen — same as the YTD period in FY2022.

For the nine months ended Aug 31, 2023, Zhulian’s net profit dropped 43.75% to RM22.49 million from RM39.98 million, mainly because the previous year’s corresponding period had recorded a net gain of RM14.4 million from its disposal of a leasehold plot in Indonesia, and lower share of profit from its associate. Cumulative revenue, meanwhile, slipped 3.6% to RM100.17 million from RM103.92 million, amid weaker consumer spending.

As the group’s business is closely linked to general consumer spending and the fluctuating foreign currency exchange, the group said that the ringgit’s rally against the US dollar would have an impact on its performance and export revenue, which is in US dollars.

Nonetheless, the group said it would ensure the sustainability of its business by adapting to constant market demand changes, while remaining cautious on mounting inflationary pressures. “The group is committed to managing its resources prudently and continuously improving its business operational efficiency,” it added.

Zhulian shares closed unchanged at RM1.87 on Wednesday, giving the group a market capitalisation of RM860.2 million.