PETALING JAYA: Zhulian Corp Bhd has stated that its performance is closely linked to the overall consumer spending patterns and the fluctuation of foreign currency exchange.

       The strengthening or weakening of ringgit against the US dollar would have an impact on the group’s performance as all export revenue is transacted in the dollar, the multi-level marketing company said in a filing with Bursa Malaysia.

       Zhulian will ensure its business sustainability by adapting to the constantly changing market demand while remaining cautious on mounting inflationary pressures.

       “The group is committed to managing its resources prudently and continuously improve its business operational efficiency,” it stated in the filing.

       For its second quarter ended May 31, Zhulian’s net profit fell 20% year-on-year (y-o-y) to RM9.4mil, or earnings per share of 2.05 sen as revenue dipped 8.2% y-o-y to RM33.4mil due to weaker sales locally and in Thailand.

       In the first six months to May 31, Zhulian posted a 57% y-o-y drop in earnings to RM16.3mil due to the disposal of leasehold land in Indonesia which resulted in a net gain of RM14.4mil in the preceding year’s corresponding period.

       Share of profit of equity-accounted associate for the period under review was RM5.3mil – a decrease of 23% as compared to preceding year corresponding period of RM6.9mil.

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       Revenue for the six months fell 7% y-o-y to RM65.9mil with the decrease attributed to overall weak consumer spending associated with prevailing economic conditions and rising inflationary pressure.

       Zhulian declared a second interim dividend of three sen per ordinary share in respect of the financial year ending Nov 30, 2023. The payment date is Sept 6.