Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.
KUALA LUMPUR: PRG Holdings Bhd
's 63% owned Furniweb Holdings Ltd, which is listed on the Stock Exchange of Hong Kong Ltd, has issued a profit warning over a steep decline in its net profit for the nine months ended Sept 30, 2018.
Property-construction PRG said on Wednesday Furniweb had informed shareholders and potential investors “there was a substantial decline in the group’s net profit by approximately 86.5% in the period as compared with that for the corresponding period in 2017”.
In the statement issued by Furniweb to the HK exchange, the profit warning was based on the preliminary review of the unaudited consolidated management accounts.
Furniweb group’s profitability for the nine months was affected by a decline in revenue.
It added certain customers became more prudent in their procurement plan in view of the uncertainty in the global trade market due to the US-CHina trade spat.
Another factor was certain other customers were buying less as their local currencies depreciated against the US dollar and the company also had to increase its sales of relatively lower priced products;.
Cost sales had increased, mainly raw material prices resulted from the rise in crude oil prices, which had not been passed on to customers; and lower production volume.
According to the wesbiste, Furniweb Group started operations in 1987 in Malaysia producing covered elastic yarn and furniture webbing.
The company has since expanded across borders and created new markets for its niche products in the textile and apparel, furniture, automotive, food packaging, agriculture and medical industries.
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