We expect stronger sales of our products because we're supplying to government projects such as the public hospitals currently undergoing construction in Sungai Buloh and Sungai Petani and to Universiti Malaysia Sarawak (Unimas). We have also expanded our marketing team to aggressively promote our new products such as the foil faced roofing and vinyl/fabric wall panelling products for thermal and acoustic panelling used primarily in hotels and universities, he said after the company AGM yesterday.According to Chow, the glass-wool manufacturing division contributes on average more than 90% to the group's turnover.
He said the group would start using liquefied natural gas (LNG) supplied by Petronas to fuel its manufacturing operations in early 2004.
The rationale of using LNG is to reduce operational costs. At present, we are using liquefied petroleum gas, which costs much more, he said.
Chow said the group's wholly-owned subsidiary Golden Approach Sdn Bhd (GASB), developer of Diamond Creeks Country Retreat located adjacent to Proton City, was expected to incur further losses for the current financial year due to legal suits which had not been resolved.
This does not take into consideration of the uncertainty over the outcome of GASB's appeal to the Court of Appeal, he said.
For the year ended February 28, 2003, the group achieved RM26.52mil in revenue, up from RM20.81mil previously.
The group, however, recorded a higher loss before tax of RM39.31mil, compared to the preceding year's RM3.16mil.
The decline was due to GASB's huge loss of RM35.38mil. The huge loss incurred was due to the change in circumstances arising from the prolonged delay in development activities, following the winding-up order faced by GASB and the overall economic downturn, leading to additional cost incurred and reduction in attributable profit, he added.
At the company level, the company achieved an operating profit of RM3.94mil before interest, exceptional items and tax as compared to the preceding year of RM1.02mil, contributed mainly by an increase of 23% in revenue to RM21.40 mil for the financial year ended Feb 28, 2003.