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New Straits Times – LKL Registers Net Loss Of RM1mil In Q2 On Low Margin And High Admin Expenses

KUALA LUMPUR: LKL International Bhd registered a net loss of RM1.01 million in the second quarter (Q2) ended October 31, 2020 from net profit of RM433,000 recorded in the same quarter a year ago.

In a filing to Bursa Malaysia today, the medical and healthcare beds, peripherals and accessories provider said the net loss recorded for the quarter was due to lower gross profit margin and increase in certain administrative expenses. Revenue in Q2 decreased 9.9 per cent to RM9.62 million from RM10.68 million due to lower contributions from the group’s manufacturing and trading segments. For the six month period, LKL’s net profit decreased 57.9 per cent to RM234,000 from RM557,000. Its revenue in the same period grew 44.3 per cent to RM28.89 million from RM20.03 million.

LKL managing director Lim Kon Lian said the group’s future prospects would be bolstered by the fulfilment of recently secured contracts, including glove supply contracts worth US$19.0 million (RM78.5 million) from Weihai Textile Group Import and Export Co Ltd and US$40 million (RM163.0 million) from Shang Hong International (Hong Kong) Ltd. “Our six-months to date revenue outperformed last year’s corresponding period as both manufacturing and trading segments posted higher sales in the first half of financial year 2021, highlighting the robust demand within the healthcare sector. “We recently secured two glove export contracts from foreign companies as we extended our support to other countries and made progress towards fulfilling the contracts by commencing shipments of nitrile gloves to Weihai Textile Group Import and Export Co Ltd,” he said in a separate statement.

Lim said additionally, the group delivered more than 40 units of medical beds and various medical peripherals to government healthcare providers in Sabah from October to November 2020 as it supported the country’s Covid-19 response. He said going forward, medical expenditure by the public and private sectors is expected to continue being ramped up to effectively combat the Covid-19 pandemic and other illnesses. “Other factors including an ageing demography and more affluent society would also reinforce the demand uptrend for high-quality healthcare,” he said.

December 14, 2020

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