• Disrupted supply and weaker demand affected manufacturing business, with heavy expenses thinning operating profits
• Impairment loss recognised on asset held for disposal and investment property
• Long-term business strategy and value creation plans expected to leap Group prospect beyond 2020.
SHAH ALAM, Aug 28 (Bernama) — Kumpulan Perangsang Selangor Berhad (“KPS” or “the Company” or “the Group”, Bursa: 5843; Bloomberg: KUPS MK; Reuters: KPSB.KL) today reported a 39% year-on-year (“YoY”) growth in revenue to RM221.5 million for the quarter ended 30 June 2020 with the recognition of Toyoplas Manufacturing (Malaysia) Sdn Bhd’s (“Toyoplas”) contribution in the second quarter this year. However, COVID-19 has put a damper on the performance of KPS’ manufacturing business which saw a decline in capacity utilisation of its packaging, plastic injection moulding and mattress manufacturing plants. With expenses far exceeding the gross profits and lower share of profit from the associates, compounded by RM7.9 million impairment loss which was recognised on investment property and asset held for disposal, the Group recorded an operating loss of RM1.6 million. Consequently, the Group posted a reverse in earnings in the second quarter, registering RM11.4 million Loss Attributable to the Owners of the Parent.