KUCHING: Ceramic tiles manufacturing Kim Hin Industry Bhd group net loss has deepened to about RM15.6 million in second quarter to June 30, 2022 (Q22022) from RM8.8 million in Q22021 due to increased production costs and lower sales.
Group revenue fell to RM80.9 million from RM83.9 million previously.
The company’s losses per share widened to 11.11 sen from 6.28 sen during the same period.
In the immediate preceding quarter (Q12022), Kim Hin recorded higher revenue of RM86.3 million.
It said the declined revenue in the current quarter was due to slowdown in the Malaysian domestic market as a result of the delay in construction projects, aggravated by current shortage of foreign workers.
The group pre-tax loss in Q12022 was RM5.1 million but this worsened to RM15.1 million in Q22022 due to lower turnover and hike in production costs.
During the January-June 2022 period (6m2022), Kim Hin saw its group net loss widened to RM20.9 million from RM12.2 million in 6m2021 as revenue dipped to RM167.2 million from RM175 million previously.
In 6m2022, the Malaysia operation was the top contributor to group revenue, generating about RM81.6 million (6m2021:RM83.7 million), followed by Australia operation with sales of RM71.6 million (RM73.5 million), China operations RM12.4 million (RM16.3 million) and Vietnam operation RM1.73 million (RM1.51 million).
The Malaysia operation incurred higher pre-tax loss of RM14.3 million (-RM9 million), Australia operation in the red of RM5.81 million (-RM3.54 million) and Vietnam operation suffered loss of RM162,000 (-RM185,000).
However, the China operation reported pre-tax profit of RM872,000 (+RM942,000).
“The lower revenue for the current financial period was affected by lower sales in Malaysia, China and Australian markets.
“The group registered a loss before tax of RM20.2 million for the current financial period as compared to a loss before tax of RM11.8 million suffered in the preceding year’s corresponding financial period due to lower revenue and higher production costs,” Kim Hin said in explanatory notes to its financial results.
On prospects going forward, Kim Hin said the group’s financial results for the second half of 2022 are dependent on the performance and recovery of the national and global economies that are influenced by the impact of restrictive and containment measures on COVID-19, besides fluctuations in main operating costs and foreign exchange movement.
