Dufu Tech profit down in second quarter despite higher revenue
PETALING JAYA: Dufu Technology Corp Bhd saw its second quarter earnings fall by 5.35% to Rm9.90mil despite revenue rising by 37.68% to Rm73.41mil.
The company said profit had fallen mainly because of unrealised foreign exchange losses.
“The higher revenue was mainly due to the increase in volume loading by customers related to hard-disk drive components,” it said in a filing with Bursa Malaysia.
The company said an unrealised foreign exchange loss of Rm3.5mil had been recorded in the current quarter compared to an unrealised foreign exchange gain of Rm1.2mil in the previous year’s corresponding quarter.
It had also incurred an additional employee share option expense of RM800,000 in the current quarter.
The company said it also had to close its manufacturing plants in Malaysia due to the movement control order (MCO) that was implemented by the government.
“Subsequently, we received approval from the International Trade and Industry Ministry to operate at 50% of our manpower capacity.
“During the MCO period of about one month, albeit with minimal workforce, we introduced a hardship allowance and provision of meals for workers who came back to work,” it added.
The company said with lower output from its Malaysian operations and higher cost of compliance, labour and overhead costs per unit of volume produced had increased and this had affected its profitability in the second quarter.