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KUALA LUMPUR (Dec 9): Following the temporary closure of its 28 factories in Klang last month, Top Glove Corp Bhd expects the production lines to be fully operational in the next two to three weeks.
“Seven factories have resumed operations since yesterday in stage one. Hopefully we can start stage two with another seven factories to resume work this weekend,” said Top Glove Corp Bhd CEO Tan Sri Dr Lim Wee Chai.
The remaining 14 factories will resume operations in the next two weeks in stages three and four, Lim said at a virtual press conference today.
In summary, Top Glove’s Klang factories have temporarily ceased operations in phases since Nov. 16, after a major Covid-19 outbreak was discovered and an Enhanced Movement Control Order (EMCO) was imposed to combat its spread.
EMCO was first implemented on November 17 and was scheduled to end on November 30. Subsequently, it was extended for another two weeks and is now scheduled to end on December 14.
Lim estimated a 4% annual revenue impact from the closure of the 28 factories, which were placed under the four-week EMCO. The 28 factories represent around 50% of its production capacity.
He said the 4% impact should be reflected in the first quarter ending November 30, 2020 (1QFY21) and the second quarter ending February 28, 2020 (2QFY21).
Meanwhile, Lim shared that 8,868 factory employees have undergone Covid-19 testing. Of this number, 5,147 workers or 58% of them tested positive, while 3,721 workers or 42% tested negative on December 8.
Of those who tested positive, 90% or 4,636 have been discharged from hospitals and are certified fit to work. Thus, along with the 3,721 employees who tested negative, it currently has 8,357 or 94% of workers who are ready to resume work.
He added that most of the workers who tested positive were asymptomatic and in stable health, spending an average of between five and seven days in the hospital.
Top Glove’s share price lost ground today despite posting a huge net profit of RM2.38 billion in 1TFY21, which is 27% more than its annual net profit of RM1.87 billion recorded in the financial year. which ended on August 31, 2020 (FY20).
The counter closed down 25 sen or 3.53% to close at RM6.84, after 93.82 million shares were made. It has a market capitalization of RM54.85 billion.
Read also:
Top Glove 1T net profit rises to RM2.38b, declares dividend of 16.5 sen
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