Posted on 23 Mar 2021
Ann Joo Resource Bhd will focus on its export market amid uncertainties in the domestic market.
The steel manufacturer said it anticipated the financial year ending Dec 31,2021, to be a challenging year for the industry.
“On the domestic front, the demand outlook remains uncertain given the impact of Covid-19 on the pace of construction activity, ” it said in a filing with Bursa Malaysia.
“The group will continue to focus on exports, in view of the expected continued demand from China and South-East Asian markets, ” the company said.
“The construction boom in China, which is fundamentally supported by the government’s efforts to pump prime the economy, should bolster demand in the medium term, ” it added.
For the fourth quarter of 2020 (Q4’20), Ann Joo’s net profit fell 68.2% year-on-year (y-o-y) to RM6.2mil, while its revenue fell 10.7% y-o-y to RM539.4mil.
For the full-year, its net loss widened 11.27% y-o-y to RM99.99mil, while revenue fell 14.9% y-o-y to RM1.89bil.
Ann Joo said the lower revenue in 2020 was mainly driven by lower domestic sales tonnage and lower average selling prices during the first three quarters of the year.
“The soft market conditions were primarily due to the imposition of stringent movement restrictions both domestically and internationally to contain the Covid-19 pandemic, ” Ann Joo said.
“The impact was partly offset by significantly higher export tonnage given the recovery in selected regional markets such as China and the Philippines, ” it added.
Source:The Star
