Top gloves, dominated by billionaire Lim Qi Wai, fell on sales of rubber gloves after being temporarily banned in the U.S. in a factory allegation of forced labor on Friday of the fourth quarter. Profit fell 48%, he said.
According to documents filed with the Malaysian Stock Exchange, net profit for the three months to August 31 decreased from RM1.2 billion in the previous year to RM67.9 million ($ 146 million). After the global rollout of the Covid-19 vaccine accelerated, demand for gloves normalized, resulting in a 32% drop in sales to RM2.1 billion during this period. The company made record profits during the peak of last year’s pandemic due to the surge in demand for protective equipment.
The one-year ban on top glove products in the United States continued to curb sales, and the Malaysian government’s blockade to curb a new surge in Covid-19 cases significantly reduced the company’s production.
The US lifted the ban last week after saying it had dealt with allegations of forced labor at a Malaysian factory. “This positive development is expected to increase sales to the United States, which accounts for 15% of the Group’s total sales,” the company said.
Due to a US ban, Top Glove has postponed its first public listing in Hong Kong in October. The listing application expired last month, but the company, which is already listed in Malaysia and Singapore, said it plans to resubmit the application this week.
In 1991, Lim and his wife, Tong Siew Bee, founded Top Gloves, which can produce up to 100 billion rubber gloves annually. With a net worth of $ 3.5 billion, he was ranked 8th on Malaysia’s list of 50 wealthiest people released in June.