Posted by IDQWE001 > 2023-04-13 09:04 | Report Abuse

KUALA LUMPUR (April 12): HIL Industries Bhd said its wholly-owned subsidiary in China is to cease business operations after suffering losses due to the US-China trade war. The subsidiary, Hil Precision Plastic Technology (Suzhou) Co Ltd (HPPT), was established in Suzhou, Jiangsu Province, and manufactures precision moulds and relevant plastic products. “The group has decided to cease the business operations of HPPT, as it is highly dependent on our US-based customers which have restructured their operations in China arising from the US-China trade war, hence resulting in us losing our business,” HIL said in an exchange filing. The subsidiary posted an operating revenue of RM3.31 million, gross loss of RM413,498, and loss before tax of RM3.55 million, for the financial year ended 31 December 2022. The setting up of the Suzhou plant in 2006 was HIL's first foray into the overseas market, according to its annual report. With over 12,000 square metres of built up factory, the plant was involved in mould making, injection moulding, spray painting and various unique decoration technologies as well as sub-assemblies.