2 July 1998: Malaysia“s KIG Glass Industrial Bhd, a manufacturer of glassware, glassblocks and carton boxes, expects its China unit, Zibo Jiali Glass Industry Co. Ltd., to turnaround and contribute p…
2 July 1998: Malaysia“s KIG Glass Industrial Bhd, a manufacturer of glassware, glassblocks and carton boxes, expects its China unit, Zibo Jiali Glass Industry Co. Ltd., to turnaround and contribute positively to results this year, according to a recent press report. Executive chairman Agus Nursalim said in the company“s 1997 annual report that Jiali is anticipated to show improvement because of encouraging sales of glass tableware. Jiali has added another production line for glass tableware in the first quarter of this year to further capitalize on glass tableware demand in China. Last year, this unit had a significant rise in turnover following its shift in focus from glass blocks to glass tableware. While revenue rose 113%, it still reported a small loss because of low production efficiency and the high cost of production. In 1997, the company reported an operating loss of RM 9.11 million. After providing for foreign exchange losses, it had a loss after exceptional items of RM 19.89 million compared to RM 6.74 million in 1996. Agus said also that KIG Glass has divested its entire holding in Tianjin Jiama Granite and Marble Co. Ltd. unit to its local joint venture because it did not show any improvement in operation last year. Despite an improvement in operating results for year ended 31 December 1997, with losses trimmed to RM 9.75 million from RM 11.14 million in 1996, the company had to make a RM 22 million provision for foreign exchange losses. After accounting for this, KIG Glass reported a loss after minority interest of RM 23.12 million against RM 6.29 million in 1996, the report said.