KUCHING: Kim Hin Industry Bhd’s quarterly losses have worsened due to weaker sales of ceramic tiles in Malaysia and overseas markets. In the second quarter ended June 30, 2019 (Q2-2019), Kim Hin’s group net loss widened to about RM9.9 million from RM5.1 million in Q2-2018 as group revenue fell marginally to RM95.7 million from RM97.2 million. Loss per share was 7.06 sen from 3.61 sen in Q2-2018. Over a six-month period (H12019), group revenue slumped to RM179.6 million from RM196 million or down by RM16.4 million or 8.5 percent while group net loss increased by RM8.4 million to about RM18.8 million from RM10.4 million.
The Malaysian operation contributed the bulk of group sales revenue or about RM86.8 million in H1-2019, down from RM88.8 million in H1-2018 while the Australia operation recorded about RM68.4 million (H1-2018: RM77.5 million).
The China operation chipped in RM21.9 million (RM27.6 million) and the Vietnam operation recorded RM2.39 million (RM2.3 million). The Malaysian and Australian operation incurred losses of RM14.7 million and RM4.9 million respectively in H1-2019 as compared to losses of RM11.8 million and profit of RM460,000 respectively in H1-2018.
The China operation maintained its profitability of RM797,000 against RM856,000 previously while the Vietnam operation reported a small profit of RM29,000, down from RM53,000 previously. Kim Hin attributed the weak performance in H1-2019 to the slowdown in domestic markets of all major geographical segments in which the group operates as well as overseas markets.
It said the widened losses were due to lower profit margin and decreased revenue. On prospects, Kim Hin said: “The group’s results for the current year continue to be affected by the performance of the national and regional economies, fluctuation in main operating costs and foreign exchange movement. “However, the group shall remain vigilant in this difficult and challenging business environment.”
Meanwhile, automotive battery manufacturer ABM Fujiya Bhd (AFuiya) has returned to the black in Q2-2019 with group net profit of RM105,000 from loss of RM1.8 million in Q2-2018 as group revenue improved to RM27.9 million from RM23.8 million.
However, in H1-2019, the Kuching-based company remained in the red with group net loss of RM642,000 which narrowed from loss of RM1.35 million in H1-2018. Group turnover rose to RM50.3 million from RM45.9 million in H1-2018. “The group expects to continue to face the challenging economic and business environment in the coming quarters.
“The global economy remains to be influenced by the uncertainty surrounding the UK’s Brexit deal, the effect of the USChina trade war and the slowdown of the economic momentum in China. “Furthermore, the sluggish demand and weak world commodity prices continue to be a source of concern and will affect the group’s overall performance,” said Afujiya in notes to its latest financials. The company believes that it would be able to weather the challenges ahead through continuous improvement in its products and services, efficiency in production and expanding customer base. AFujiya exports its automotive batteries and other batteries to many countries other than supplying the domestic market.
