- Costume jewellery manufacturer and direct marketer Zhulian Corporation saw its 1Q16 net profit decline 43.6 percent to RM7.1 million, on the back of a 12.8 percent drop in sales to RM48.2 million, as a result of lower demand in both Malaysian and Indonesian markets.
- Profitability was also impacted by separation employment benefit expenses incurred, amounting to RM3.5 million during the quarter.
- For 1Q16, the group has declared an interim dividend of RM0.015 per share, unchanged year-on-year.
Significance: Looking ahead, Zhulian said the market condition is expected to remain challenging, due to the drop in domestic private consumption since the implementation of the goods and services tax. The firm expects 2016 sales to be driven mainly by exports.