KUALA LUMPUR: Hong Seng Consolidated Bhd saw its net profit rose to RM3.04mil in the third quarter ended Dec 31, 2020, compared with a net loss of RM574,000 in the same period a year ago.
Its revenue surged 3,000% to RM25.29mil from RM749,000, the highest in 10 years for any quarter.
Hong Seng said this was mainly due to the revenue generated by its healthcare segment through its healthcare arm, HS Bio Supplies Sdn Bhd (HS Bio) and its subsidiaries.
For the first nine months to Dec 31, 2020, Hong Seng posted a net profit of RM4.46mil on revenue of RM26.35mil.
Executive chairman Datuk Teoh Hai Hin said despite the challenging economic environment amid the pandemic, the group's recent diversifications had proven to be a timely opportunity to capture the demand of products and services arising from the prevailing health crisis.
“Hong Seng is expected to remain resilient as it continues to seize opportunities and gain greater market presence to improve the group’s financial performance and prospects,” he said.
The group had on Dec 15 obtained approval from its shareholders to diversify and expand its business activities to include manufacturing and trading of gloves and other personal protective equipment (PPE), healthcare related business and hire purchase business.
“This current quarter’s contribution from our healthcare segment is only the tip of the iceberg, as HS Bio is currently working towards becoming an end-to-end integrated healthcare provider with a comprehensive range of other products and services that are in the pipeline.
“On the other hand, our glove manufacturing segment is also making significant progress as we expect our glove factory – currently being constructed in Sungai Petani, Kedah – to be up and running by April this year,” Teoh said.