KUALA LUMPUR, 14 JULY: Zhulian Corporation Bhd, a multi-level marketing organization, saw its net earnings drop 9.36 percent to RM10.3 million for the second quarter ended May 31, 2021, from RM11.36 million a year ago, due to the pandemic. According to a regulatory filing, revenue fell 3.93 percent to RM37.94 million from RM39.5 million as Covid-19 created substantial social and economic disruptions and uncertainty, especially in regions where the business operates.
The company announced a second interim dividend of 3 sen per share, amounting to RM13.8 million, which will be paid on September 1.
Zhulian’s net profit increased 4.12 percent to RM23.14 million in the first half of 2021, compared to RM22.23 million in the previous corresponding period, but revenue fell 5.87 percent to RM79.39 million from RM84.34 million.
As all export income is handled in US currency, Zhulian stated its company is strongly related to consumer sentiment and fluctuating foreign currency exchange. As a result, the strengthening or weakening of the ringgit against the US dollar will have an influence on the group’s performance.
“The group ensures the long-term viability of its business by adjusting to changing market demand whenever possible, while remaining wary of the economic consequences of the coronavirus outbreak.”
“In the year 2021, the group is committed to constantly enhancing its’ business operational efficiency and preserving appropriate cash flow,” it said. Zhulian’s stock closed one sen or 0.53 percent down at RM1.87 today, valuing the company at RM860.2 million./n
