GEORGE TOWN: Texchem Resources Bhd (TRB) plans to go on expansion in 2021 after experiencing a year of slowing down.
Group executive chairman Tan Sri Fumihiko Konishi told StarBiz that in 2020, the group performed well in the third quarter.
“Our operating revenue improved to RM15.5mil in the third quarter ended Sept 30,2020 from RM4.6mil in the previous year’s corresponding period.
“The profit after tax improved to RM9mil from RM336,000 in the previous year’s same period.
“For the nine months ended Sept 30, the group generated RM45.4mil in net cash from operating activities.
“As at Sept 30, our cash and cash equivalents stood at RM75.4mil.
“The gearing ratio of our group is 0.29, which is healthy, ” Konishi said.
Konishi said the group, therefore, looked forward to expansion in 2021.
“Because of the V-shape recovery in the recent third quarter, we can expect to perform well in the final period.
“For this reason, we are in a good position to expand our business operations in 2021” he added.
All the four business divisions – food, restaurant, polymer, and industrial trading – contributed to the improved performance of the third quarter.
“We plan to expand all the four divisions.
“In 2020, we held back and allocated about RM10mil for capital expenditure.
“In 2021, we will spend more than this year for expansion.
“The board will meet at the end of 2020 to finalise the expansion budget for 2021, ” he added.
TRB reduced its number of Sushi King outlets in the country to 117 this year from 138 in 2019.
From March to May, the movement control order (MCO) impacted Sushi King’s business severely, as it had to pay rentals and wages without any income during this period.
“We changed our menu in May, and we saw business picking up in the third quarter.
“In 2021, we plan to open up more Sushi King outlets in the country, ” Konishi said.
According to Konishi, the group would concentrate on opening the Sushi King outlets in shophouses.
“We won’t be opening Sushi King outlets in malls, as there is an oversupply of malls in the country.
“The rentals of shophouses are also lower, ” he added.
Konishi added that the group planned to open six more Yamatoya food store outlets in the country.
“We already have a Yamatoya outlet in Tanjung Tokong, Penang.
“We plan to open one more in Penang before the end of 2020 and five more in Kuala Lumpur, Johor Baru, and Ipoh in 2021, ” he added.
Konishi said the group would also allocate a bigger budget for its polymer business division in 2021 to expand.
“Over the past ten years, we have invested RM40mil in research and development to produce a particular type of bio-plastics under the Texa brand name.
“The raw material, made from agricultural by-products and plastic compounds, is now popularly used to produce consumer goods products.
“We can expect this business to be a significant contributor to our group in three years, ” he added.