ORIENTAL HOLDINGS' FY20 NET PROFIT LOWER AT RM114.81 MLN
KUALA LUMPUR, March 26 -- Oriental Holdings Bhd’s net profit for the financial year ended Dec 30, 2020 (FY20) fell to RM114.81 million from RM352.6 million in FY19.
Revenue was 34.8 per cent lower to RM3.36 billion from RM5.16 billion previously, it said in a filing with Bursa Malaysia today.
It said the decline in revenue was mainly attributed to the lower contribution from the automotive segment by RM1.56 billion with a lower number of cars sold from retail operations.
“The automotive segment will continue to contribute to the group’s performance under very competitive market conditions with strong and aggressive promotional campaigns by car companies keen to grow their market shares.
“With the reinstatement of Movement Control Order 2.0 in mid-January 2021, first quarter sales from retail operations in Malaysia are not expected to be encouraging despite the vehicle sales tax exemption period extended to June 2021.
“The effect will be minimal and dampened further by a shortage of semiconductor chips in the supply chain which will inevitably cause delays in production in the near future,” it added.
Oriental Holdings said it is mindful of the seismic shifts that the COVID-19 pandemic has brought about to the domestic and global economies.
-- BERNAMA
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