Profit statements

Malaysian billionaire glove maker delays Hong Kong listing as profits plummet

Top Glove – controlled by billionaire Lim Wee Chai – postponed plans to list on the Hong Kong stock exchange as profits slumped after rubber glove prices edged closer to pre-pandemic levels.

Amid falling profits and with increasingly volatile global markets following the Russian invasion of Ukraine, the company decided to postpone its listing in Hong Kong. While Top Glove shares trade in Malaysia and Singapore, a listing in Hong Kong would have broadened the company’s shareholder base.

“Due to industry developments and current equity market conditions, we have decided to give ourselves more time to continue this (listing) exercise in Hong Kong,” the company said in a statement. ” We are not in a hurry. Our decision is always in the long-term interests of the company and our stakeholders.

While the company has benefited from an increase in demand for rubber gloves over the past two years as the Covid-19 pandemic has spread across the world, its latest results show that its top and bottom results both were under pressure. Net profit for the second quarter ended Feb. 28 fell 97% to 87.5 million ringgits ($20.9 million) from a year earlier as sales fell 73% to 1.4 billion of ringgits, he said in a statement on Wednesday.

“Over the past 2 years, we have become accustomed to delivering outstanding results,” Lee Kim Meow, General Manager of Top Glove, said in a statement. “Although our second quarter results were not as strong as we would like, that is to be expected as the pandemic recedes and it is part of the economic cycle. Having been in the glove business for 31 years, we have seen many such cycles and our experience has prepared us well to get through this one.

Top Glove said it would “remain cautious and scale back” expansion plans that aimed to boost its annual production capacity to 188 billion gloves by 2025 from 100 billion currently. “The group will, however, continue to monitor the situation closely and stands ready to reinstate expansion plans if necessary when demand eventually picks up,” he added.

Lee said demand will continue to grow, although it is unlikely to accelerate at the “unsustainable pace” seen during the pandemic. “This difficult period is temporary,” he added.

Top Glove was founded by Lim and his wife, Tong Siew Bee, in 1991. Lim, whose parents are rubber plantation owners and traders, also owns a stake in property developer Tropicana and sits on its board of directors. His real-time net worth has fallen to $1.6 billion from $3.5 billion last April when the World’s Billionaires List was last released. Forbes‘ data exposure.