PETALING JAYA: Poh Kong Holdings Bhd will be exercising caution for the remainder of its current financial year ending July 31, 2023, in light of external headwinds and global uncertainties.
Executive chairman and group managing director Datuk Choon Yee Seiong said the uncertainties and headwinds could pose a challenge and add to the corporation’s downside risks.
“Global growth is expected to decelerate to around 3% in 2022. We must be cognisant of the impact of an unpredictable global environment, which include spillovers from the war in Ukraine, renewed outbreaks of Covid-19 in China and subsequent lockdowns, as well as the domestic resurgence of the virus.
“All these have led to an increased vulnerability among affected Malaysian households and businesses. This could impact our financial performance during the year,” he said in the company’s latest annual report.
Poh Kong is the distributor and supplier of jewellery, precious stones, semi-precious stones, and gold ornaments.
To bolster shareholders’ value and confidence in the company, Choon said Poh Kong had undertaken several rounds of internal discussions both at the management and boardroom levels, to assess the group’s current business portfolio.,
He said Poh Kong will be looking to evolve its revenue growth by prospecting for new opportunities that will further improve its financial health and well-being.
During the year, Poh Kong took deliberate steps to move ahead strategically, leveraging on an economy on the rise both globally and in Malaysia. “To maintain and strengthen our lead position we were strategic in our focus. We reviewed areas for revenue growth and at the same time assessed cost-cutting measures. “Before we even looked to create new business models, we scrutinised how we could organically expand our existing areas of business.”
Choon said Poh Kong will move ahead with optimism and caution.
“At the same time, we aim to strengthen our organisational culture and upskill our management staff as well as our frontliners.
“All this will be supported by further digitisation of our services and product offerings,” he said.
For its fourth quarter ended July 31, 2022, Poh Kong reported a net profit of RM29.84mil, compared with a net loss of RM13.26mil in the previous corresponding period.
Revenue in the fourth quarter surged to RM414.66mil compared with RM85.62mil a year earlier. In a Bursa Malaysia filing on its fourth quarter financial performance, Poh Kong said revenue in the previous year was affected by the nationwide lockdown from June 1, 2021.