PETALING JAYA: Ge-Shen Corp Bhd posted a seven-fold increase in net profit to RM3.71mil in the second quarter (Q2) ended June 30, 2021, from RM492,000 in the corresponding quarter last year.

       For the quarter in review, the export-driven manufacturing company revenue doubled to RM65.63mil from RM30.52mil in Q2’20. The company attributed its strong quarterly results to increased customer orders and run rate including various new projects entering mass production stage due to the re-opening of the western economies.

       For the cumulative period, Ge-Shen posted a net profit of RM6.39mil, compared with a net loss of RM4.43mil for the six months to June 2020, while revenue almost doubled to RM130.69mil from RM67.98mil previously.

       Commenting on the group’s performance, Ge-Shen executive director Louis Lau said it had not been easy navigating through the tribulations brought upon by the Covid-19 pandemic but the group marched on strong and was able to build on the momentum arising from the improvement in the operating environment globally.

       Ge-Shen Corp manufacturing

       “Barring the total lockdown measures due to the surge in Covid-19 numbers, we would likely have met or surpassed our highest quarterly sales revenue, which was recorded in the fourth quarter of 2020,” he said in a statement.

       He added Ge-Shen had experienced factory floor operational disruptions as a result of reduced headcount capacity in compliance with government orders.

       “Aside from the lockdown measures, we faced supply side issues with scarcity of raw materials, price increases and long lead times. We are cautious this may affect production in the short-term and are working hard to push out our orders as we head into the second half of the year,” Lau said.

       “All our facilities saw strong operations and revenue contribution, particularly our Penang and Johor Baru plastic facilities,” he added.

       The commissioning of the group’s new 100,000 clean room and control room plus the addition of new injection moulding machines to the operational capacity of the Johor Baru plastics facility, coincided with the increase in sales.

       Meanwhile, Lau said the group was pleased that its Penang facility has recently been recognised as an “FDA Registered Facility”, as it aims to secure more customers in the Medical & Life Sciences industry in the United States and globally.

       “All in all, our strong quarterly results have to be attributed to the efforts of our committed colleagues in Team Ge-Shen, who worked tirelessly to ensure our production upkeep plus the successful fulfilment and timely delivery of our products to our customers,” he said.

       Aside from the above, Lau is optimistic that a resurgence in global economic activities upon the reopening of the global economies might bode well for the manufacturing sector as this will translate to higher demand for manufacturing products.