Kian Joo benefits from tax incentives

PETALING JAYA: Kian Joo Can Factory Bhd fourth quarter ended Dec 31, 2017 net profit was up 77.6% on tax incentives enjoyed by certain subsidiaries and lower tax rate in Vietnam.
The group made a net profit of RM46.9 million for the quarter under review, compared with RM26.4 million for the same quarter in 2016.
The group’s overall profit before taxation was lower in Q4’17 at RM22.8 million compared to RM36.2 million in Q4’16, despite slight improvement in gross profit. This was attributable to unrealised loss on foreign exchange amounted to RM5.3 million as compared to unrealised gain of RM4.4 million in Q4’16.
The group said faced with a multitude of costs pressures , the management will continue to review its selling price to key customers whilst stepping up its efforts to bring down its operating costs in 2018.
It will also upgrade its production equipment to improve efficiency and emphasise on growing the business operations of subsidiaries in foreign countries and to expand market overseas.
Net profit for the 12 month period ended Dec 31, 2017 was down 30.1% at RM90.0 million, compared with RM128.6 million for the same period in 2016.
This was on 7.1% higher revenue of RM1.8 billion in financial year 2017, compared with RM1.7 billion in financial year 2016.