KUCHING: ABM Fujiya Bhd’s (AFujiya) wholly-owned subsidiary Fuya Energy Sdn Bhd is currently in the midst of constructing a plant to manufacture batteries and accumulators, said its group executive chairman Dato Sri Tay Ah Ching @ Tay Chin Kin.
However, he does not say when the new plant will be operational.
Afujiya group currently manufactures a comprehensive range of automotive batteries and batteries for storage and electrical applications.
The group is also involved in the trading, marketing and retailing of batteries, lubricants and other automotive parts.
“Over the years, our group has invested in high-tech and automated plants and machineries to equip us with capabilities to design, manufacture and supply a wide range of products to our local and overseas customers.
“Our group remains committed to pursue continuous improvements in our products and technical capabilities as well as operational and production efficiencies,” said Tay in the company’s 2021 annual report.
He said 2021 was a difficult year as the domestic and global economic environment remained sluggish and challenging as a result of various mutation of COVID-19 viruses, fluctuation in foreign exchange, increasing freight rates and prolonged supply chain disruptions.
In Malaysia, the automotive industry had recorded a decline for a second consecutive year with 508,911 vehicles registered as compared to 529,514 units in 2020 or a decline of 20,603 units or four per cent.
The decline was reportedly due to shortages of semiconductor chips and extension of sale tax incentives for passenger vehicles to June 30, 2022, which may cause some consumers to defer their purchase of new vehicles.
Tay said despite the turmoil of COVID-19 pandemic, the group managed to navigate through the challenging and gloomy domestic and global business environment to deliver healthy earnings for financial year ended Dec 31, 2021 (FY2021).
In FY2021, group revenue rose 3.64 per cent to RM90.43 million from RM87.25 million in FY2020 but its pre-tax profit declined to RM2.41 million from RM3.67 million year-on-year due mainly to the increase in the cost of raw materials and freight charges.
Year-on-year, he said AFijiya’s shareholders equity increased to RM163.76 million from RM162.25 million.
Going forward, Tay said the group foresees continued challenging economic and business environment as the Russia-Ukraine conflict is a major blow to global economy.
He said Russia’s invasion of Ukraine will affect the entire economy with slowing growth and inflation moving forward as western countries imposed sanctions on Russia.
“The anticipation of higher gasoline prices, higher prices for food, energy, metals and inputs to manufacturing sector will slow down the growth of domestic products as consumers reduce spending.
“The group is expecting to continue to face the challenging economic and business environment in the coming months as the global economy will remain to be influenced by economic uncertainty surrounding the Russia-Ukraine conflict and on-going global trade tensions,” he added.
Tay said the group will continue to pursue improvement in its products and services, keeping abreast with technology and enhancing the efficiencies of its long-term strategies to strengthen and expand its presence in the existing and new markets, both locally and internationally, to ensure sustainable growth and development.
