LOTUSCIR 7234 Share Price

Expanding into the Recycling Business through the Acquiree Companies has been a strategic move aimed at enhancing the Group’s earnings and market share. In the past financial year, revenue from the recycling segments amounted to RM10.78 million, with the newly acquired recycling companies contributing RM1.032 million. Profit before tax reached RM0.791 million, with the new companies contributing RM0.155 million. At present, the Group has yet to identify any viable ventures for the waste recycling business. The Board deems the venture into the waste recycling business to be appropriate to reduce the Group’s carbon footprint and to be in the best interest of the Group as it will benefit the Group financially once the waste recycling business becomes profitable

The Group recorded a slight increase in profit before taxation of RM12.21 million in the current financial year ended 30 June 2022 as compared to RM11.52 million in FY2021. The significant improvement in the Group’s revenue was a result of the well performance during Hari Raya festive holiday sales in 4th quarter of FY2022, where revenue has increased by 79.70%. Taking into careful consideration the current and future prospects of the existing business of the Group, the Management took proactive steps to diversify and venture into the waste recycling business by capitalising on opportunities arising from the current COVID-19 pandemic.

The Group revenue has decreased 9.82% to RM55.84 million due to lower stock holding as compared to preceding quarter ended 31 December 2021. The decrease in revenue in the Group’s retail segment has resulted current quarter profit before taxation decreased RM1.72 million to RM6.42 million as compared to a profit before taxation of RM8.13 million in the immediate preceding quarter ended 31 December 2021.

The Group revenue was decreased 70.55% to RM11.27 million, due to Hari Raya festival fall in the immediate preceding quarter. The decline in revenue in the Group’s retail segment has resulted the Group reported a loss before taxation of RM3.03 million in the current quarter as compared to a profit before taxation of RM6.58 million in the immediate preceding quarter ended 30 June 2021.

The Group’s revenue increased by 11.12% from RM34.44 million in the immediate preceding quarter to RM 38.27 million in the current quarter, driven by higher festive sales for apparels and accessories. The Group’s profit before taxation was increased by RM5.71 million from RM0.51 million to RM 6.21 million, mainly due to higher revenue and lower operating costs.

In Financial Year End 1.7.2019 – 30.6.2020, the directors’ remuneration was 0.47 million. It was low compared to average in listed companies, considering the employees’ remuneration of 34.1 million and auditor’s remuneration of 155 thousands

The Group recorded a loss before taxation of RM26.50 million in the current quarter as compared to a profit before taxation of RM0.62 million in the immediate preceding quarter. It was mainly due to the recognition of impairment losses on goodwill and assets as a consequence of the impact by COVID-19 pandemic.