KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONASSETS
Non-Current Assets
Property, plant & equipment
Investment properties
Other investments
Goodwill on consolidation
Intangible assets
Rights-of-use assets
Deferred tax assets
Current Assets
Inventories
Trade receivables
Derivative financial assets
Current tax assets
Other receivables
Other investments 1
Cash and bank balances

TOTAL ASSETSEQUITY AND LIABILITIES
Equity attributable to equity holders of the Company
Share capital
Reserves
Non-controlling interests
Total Equity
Non-Current Liabilities
Loans and borrowings
Deferred tax liabilities
Lease liabilities
Current Liabilities
Trade and other payables
Derivative financial liabilities
Lease liabilities
Bank borrowings
Term loans
Taxation
Total liabilities
TOTAL EQUITY AND LIABILITIESNet assets per share (sen)UNAUDITED
AS AT
30/06/2024
RM '000

AUDITEDAS AT
31/12/2023
RM '000

1,284,931
27,956
366
4,926
1,231
68,582
3,939
1,391,931

1,294,426
28,106
366
4,926
1,178
69,758
3,952
1,402,712

260,145
271,866
189,888
54,232
777,101
1,292,617
2,845,849

239,228
237,660
523
198,236
29,934
822,708
1,271,323
2,799,612

4,237,780

4,202,324

323,885
3,528,524
3,852,409
28,3163,880,725

323,885
3,512,094
3,835,979
27,021
3,863,000

119,979
3,885
123,864254
120,479
4,875
125,608

212,3821,338
2,450
17,021
233,191
357,055

199,395
2,396
9,521
292
2,112
213,716
339,324

4,237,780

4,202,324

150.98150.34The Condensed Consolidated Statements of Financial Position should be read in conjunction
with the Audited Annual Financial Statements for the year ended 31 December 2023
1 Other Investments in current assets represents investments in money market with a redemption noticeof one (1) business day and has insignificant risk in the underlying assets invested.

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Attributable toequity holders of Company
Share
Capital
RM '000

Translation Treasury Capital
Reserve
Shares Reserve
RM '000
RM '000 RM '000

Retainedearnings
RM '000

3,521,844

Total
RM '000

NonControlling
Interests
RM '000

Total
RM '000

3,835,979

27,021

3,863,000

Unaudited - for the period ended
30 June 2024
At 01 January 2024

323,885

14,583(26,764)

2,431

Movement during the period

-

4,567

-

-

-

4,567

-

4,567

Dividends
To owners of the Company

-

-

-

-

(51,032)(51,032)-(51,032)

Total comprehensive income
for the period

-

-

-

-

62,89562,895

1,295

64,190323,885

19,150(26,764)

2,431

3,533,707

3,852,409

28,3163,880,725

323,885

3,817(26,764)

2,431

3,572,297

3,875,666

22,266

3,897,932

Movement during the period-

13,603---

13,603-

13,603

Dividends
To owners of the Company

-

-

-

-

(63,790)(63,790)-(63,790)

Total comprehensive income
for the period

-

-

-

-

(27,553)(27,553)

1,322(26,231)

323,885

17,420(26,764)

2,431

3,480,954

3,797,926

23,5883,821,514

At 30 June 2024

Unaudited - for the period ended
30 June 2023
At 01 January 2023

At 30 June 2023

The Unaudited Condensed Consolidated Statements of Changes in Equity should be read in conjunction
with the Audited Annual Financial Statements for the year ended 31 December 2023

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Revenue

INDIVIDUAL PERIOD
Current year
Preceding Year
Quarter
Corresponding
Quarter
30/06/2024
30/06/2023
RM '000
RM '000
429,905
387,543

CUMULATIVE PERIOD
Current
PrecedingYearYear
to Dateto Date30/06/2024
30/06/2023
RM '000
RM '000
881,529782,251

Operating expenses
Other operating income(409,007)
17,755(401,833)
17,077(838,395)
36,557(832,409)
34,319Profit from operations
Finance cost

38,653
(80)

2,787
(257)

79,691(138)(15,839)(705)

Profit before taxation
Taxation

38,573(6,427)2,530(5,186)

79,553(15,363)(16,544)(9,687)

Profit/(loss) after taxation

32,146(2,656)64,190(26,231)

Other comprehensive income, net of tax- Exchange difference translation
Total comprehensive income for the period

32,146(2,656)64,190(26,231)

31,341805
32,146(3,298)642(2,656)62,895
1,295
64,190(27,553)
1,322(26,231)

31,341805
32,146(3,298)642(2,656)62,895
1,295
64,190(27,553)
1,322(26,231)1.23(0.13)

2.46(1.08)

Atttributable to:Equity shareholders of the Company
Non-controlling interests

Total comprehensive income for theperiod attributable to:Equity shareholders of the Company
Non-controlling interests
Earnings/(loss) per share attributed toequity holders of the Company
Basic/diluted (sen)The Unaudited Condensed Consolidated Statements of Comprehensive Income should be read in
conjunction with the Audited Annual Financial Statements for the year ended 31 December 2023

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
Year to dateended
30/06/2024
RM '000

Year to dateended
30/06/2023
RM '000

Net profit before taxation

79,553(16,544)

Adjustment for non-cash items
Depreciation
Interest income
Interest expenses
Property plant and equipment written off
Foreign exchange gain - unrealised
Fair value gains on financial asset at FVTPL(Gain)/loss on derivatives - unrealised
Operating profit before changes in working capital

54,120(20,502)138(1,572)(10,656)
1,338
102,419

60,793(18,792)705
4,411(7,607)(12,356)
2,026
12,636

Changes in Working Capital
Net change in current assets
Net change in current liabilities
Cash from operating activities
Dividends paid
Interest expenses
Interest income
Taxation paid
Net cash from operating activities(63,441)
14,32553,303(51,032)(138)
20,502(9,614)
13,021

113,382(31,594)
94,424(63,790)(705)
18,792(13,204)
35,51745,607(44,528)
14,100(68,708)(33,583)(66,774)

Financing activities
Additional finance lease liabilities
Repayment of bank borrowings
Net change in cash & cash equivalent

240
6,954
21,294(1,677)(40,094)(108,545)

Cash & cash equivalent at beginning of year

1,271,323

1,348,010

Cash & cash equivalent at end of the period

1,292,617

1,239,465

1,151,733
140,884
1,292,617

1,129,752
109,713
1,239,465

Investing activities
Investment in financial instruments
Acquisition of property, plant and equipment

Cash & cash equivalent at end of the period
Cash & bank balances
Short term deposits with licensed banks

The Unaudited Condensed Consolidated Cash Flow Statement should be read in conjunction
with the Audited Annual Financial Statements for the year ended 31 December 2023

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
INTERIM FINANCIAL REPORT FOR THE FINANCIAL QUARTER ENDED 30 JUNE 2024
Explanatory Notes
1.

Basis of Preparation
The unaudited interim financial statements have been prepared in accordance with the Malaysian Financial ReportingStandards and paragraph 9.22 of the Main Market Listing Requirements (MMLR) of Bursa Malaysia Securities
Berhad. The accounting policies and method of computation adopted for the interim financial reports were consistent
with new standards effective from 1/1/2024 inclusive of those adopted for the audited financial statements for the year
ended 31 December 2023.

2.

Annual Audit Report
The audit report of the audited financial statements for the year ended 31 December 2023 was not subject to any
qualification.

3.

Seasonal or Cyclical Operations
The operations of the Group were not affected by any seasonal or cyclical factors.

4.

Extraordinary and Exceptional Items
There were no other extraordinary and exceptional items of an unusual nature affecting assets, liabilities, equity, net
income, or cash flows for the current quarter and financial period ended 30 June 2024.

5.

Changes in Material Estimates
There were no significant changes in estimates used in the current quarter and financial period ended 30 June 2024.

6.

Movement of Company’s Securities
There were no issuance and repayment of debt and equity securities, share cancellations and resale of treasury sharesin the current quarter and financial period ended 30 June 2024.

7.

Dividend Paid
A 1st interim dividend of 2.0 sen per ordinary share for financial year ended 31 December 2023 declared on 22
February 2024 amounting to RM 51.03 million was paid out on 08 April 2024.
A final single tier dividend of 2.0 sen per ordinary share for the financial year ended 31 December 2023 was approvedby shareholders on 30 May 2024 amounting to RM 51.03 million and was paid on 18 July 2024.
Other than the above, there were no other dividends paid in the current quarter and period ended 30 June 2024.

1

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
Explanatory Notes
8.

Segmental Reporting
DivisionsTechnical
Rubber
RM ’000

Gloves
RM ’000

Clean-Room
RM ’000

Financial period ended- 30/06/2024
Revenue
Profit before tax

98,871
19,436732,626
48,646- 30/06/2023
Revenue
Profit/(loss) before tax

103,978
16,494

Quarter ended- 30/06/2024
Revenue
Profit before tax- 30/06/2023
Revenue
Profit/(loss) before tax

Others*RM ’000

Total
RM ’000

50,032
4,895

0
6,576

881,529
79,553

633,398( 46,976)

44,875
3,971

0
9,967

49,926
10,518352,993
22,081

26,986
2,472

0
3,502

429,905
38,57347,8268,579

315,861( 12,073)

23,856
2,379

0
3,645

387,5432,530(

782,251
16,544)* Others division of the Group mainly comprise investment holding, engineering and management services which are
not of sufficient size to be reported separately.
9.

Valuation of Property, Plant and Equipment
There were no changes or amendments to the valuation of property, plant and equipment from the previous year
audited financial statements.

10. Material Events Subsequent to the End of the Interim Report
There were no significant event that has occurred between 01 July 2024 and the date of this announcement which willmaterially affect the earnings or income of the Group.
11. Changes in the Composition of the Group
There were no changes in the composition of the Group including disposal of subsidiaries and long-term investment,
restructuring and discontinuing operations of the Group in the current quarter and financial period ended 30 June 2024.
12. Contingent Liabilities
As at 30 June 2024, the Company has unsecured outstanding contingent liabilities amounting to RM17.02 million (31Dec 2023: RM9.81 million) being corporate guarantees given to financial institutions for banking facilities granted tocertain subsidiaries.
13.

Capital and other Commitments
As at financial period ended
30/06/2024
31/12/2023
RM’000
RM’000Property, plant and equipment
Within one year: Contracted but not provided

200,963

63,4852

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
Explanatory Notes
14.

Additional Information required pursuant to MMLR.
14.1 Review of Results
Individual Period(2nd Quarter)
Current Preceding Year
Year
Corresponding
Quarter
Quarter
30/06/24
30/06/23
Changes
RM ‘000
RM ‘000%
Revenue
429,905
Operating profit/(loss) 38,653
Profit/(loss) Before
Interest and Tax
38,653
Profit/(loss) before tax 38,573
Profit/(loss) after tax
32,146
Profit/(loss) attributed
To Ordinary Equity
Shareholders
31,341

Cumulative Period
Current
Preceding Year
Year
Corresponding
to-datePeriod30/06/24
30/06/23
Changes
RM ‘000
RM ‘000%

387,543
2,787

10.93
1286.90881,529
79,691

782,251( 15,839)

12.69
603.13

2,787
2,530( 2,656)

1286.901424.621310.32

79,691
79,55364,190( 15,839)( 16,544)( 26,231)

603.13580.86344.71( 3,298)

1050.30

62,895( 27,553)

328.27

DivisionsTechnical
Rubber
RM ’000

Gloves
RM ’000

Clean-Room
RM ’000

Financial period ended- 30/06/2024
Revenue
Profit before tax

98,871
19,436732,626
48,64650,032
4,895

0
6,576

881,529
79,553

PBT/Revenue %

19.66

6.64

9.78

na

9.02

- 30/06/2023
Revenue
Profit/(loss) before tax

103,978
16,494

633,398( 46,976)

44,875
3,971

0
9,967

(

782,251
16,544)

PBT/(LBT)/Revenue %

15.86

7.42)

8.85

na

(

2.12)

%
15.67
203.56

%
11.49
23.27

%
na
( 34.02)

Comparison of financial period
Percentage change%
Revenue( 4.91)
Profit before tax
17.84

(

Others
RM ’000

Total
RM ’000%
12.69
580.863

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
Explanatory Notes
14.1

Review of Results (continue)
DivisionsTechnical
Rubber
RM ’000

Gloves
RM ’000

Clean-Room
RM ’000

Quarter ended- 30/06/2024
Revenue
Profit before tax

49,926
10,518352,993
22,081

26,986
2,472

0
3,502

429,905
38,573

PBT/Revenue %

21.07

6.26

9.16

na

8.97

- 30/06/2023
Revenue
Profit/(loss) before tax

47,8268,579

315,861( 12,073)

23,856
2,379

0
3,645

387,543
2,530

PBT/(LBT)/Revenue %

17.94

(

3.08)

9.97

na

0.65

%
11.76
282.90

%
13.12
3.91

%
na
( 3.92)%10.93
1424.62

Comparison of quarter period
Percentage change%
Revenue
4.39
Profit/(loss) before tax
22.60

Others
RM ’000

Total
RM ’000

Comparison of Current financial period ("1H24") with Preceding year corresponding financial period("1H23")For the current financial period ended 30 June 2024, the Group recorded revenue of RM881.53 million, an
increase of 12.69% as compared with RM782.25 million in corresponding period ended 30 June 2023. Profit
before taxation (PBT) for 1H24 was RM79.55 million as compared with loss before taxation (LBT) of RM16.54
million for 1H23.
The Gloves division’s revenue increased by 15.67% to RM732.63 million in 1H24 as compared with RM633.40
million in 1H23 mainly due to improved sales volume. PBT was RM48.65 million in 1H24 as compared with
LBT of RM46.98 million in 1H23. The increase in PBT was mainly due to higher revenue recorded.
The TRPs division’s revenue decreased by 4.91% to RM98.87 million in 1H24 as compared with RM103.98
million in 1H23 due to lower sales. However, the PBT increased by 17.84% to RM19.44 million as comparedwith RM16.49 million in 1H23 due to better higher margin products mix.
The Clean-Room division’s revenue increased by 11.49% to RM50.03 million in 1H24 as compared with
RM44.88 million in 1H23. PBT recorded at RM4.90 million in 1H24 as compared with RM3.97 million in
1H23 in tandem with higher sales.

4KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
Explanatory Notes
14.1

Review of Results (continue)
Comparison of Current quarter ("2Q24") with Preceding year corresponding quarter ("2Q23")
For the second quarter ended 30 June 2024, the Group recorded an increase in revenue for all division with a
total of RM429.91 million, an increase of 10.93% as compared with RM387.54 million in 2Q23. Profit before
taxation (PBT) was RM38.57 million as compared with RM2.53 million in 2Q23.
The Gloves division’s revenue increased by 11.76% to RM352.99 million in 2Q24 as compared with RM315.86
million in 2Q23. Profit before tax was RM22.08 million in 2Q24 as compared with a loss before tax of RM12.07
million in 2Q23 due to the higher sales volume and improved production efficiencies.
The TRPs division’s revenue increased by 4.39% to RM49.93 million in 2Q24 as compared with RM47.83
million in 2Q23 due to higher deliveries. PBT increased by 22.60% to RM10.52 million in 2Q24 as comparedwith RM8.58 million in 2Q23 due to better higher margin products.
The Clean-Room division’s revenue increased by 13.12% to RM26.99 million in 2Q24 as compared with
RM23.86 million in 2Q23. PBT increased at 3.91% to RM2.47 million in 2Q24 as compared with RM2.38
million in 2Q23.

14.2 Explanatory comments on any material change in the profit before taxation for the quarter reported on
as compared with the preceding quarter.
Immediate
Current
Preceding
Quarter
Quarter
30/06/2024 31/03/2024 Changes
RM ’000
RM ’000%
Revenue
429,905
451,625 ( 4.81)
Operating profit
38,65341,039 ( 5.81)
Profit Before Interest and Tax
38,65341,039 ( 5.81)
Profit before tax
38,57340,981 ( 5.88)
Profit after tax
32,14632,0450.32
Profit attributable To
Ordinary Equity Shareholders
31,341
31,454 ( 0.36)
DivisionsTechnical
Rubber
RM ’000

Gloves
RM ’000

Clean-Room
RM ’000

Others
RM ’000

Total
RM ’000

Current Quarter ended- 30/06/2024 (2Q24)
Revenue
Profit before tax

49,926
10,518352,993
22,081

26,986
2,472

0
3,502

429,905
38,573

PBT/Revenue %

21.07

6.26

9.16

na

8.97

Preceding Quarter ended- 31/03/2024 (1Q24)
Revenue
48,945
Profit before tax
8,918

379,633
26,56523,047
2,423

3,075

451,625
40,981PBT/Revenue %

18.22

7.00

10.51

na

9.07

Comparison of quarters
Percentage change
Revenue
Profit/before tax

%
2.00
17.94

%
( 7.02)( 16.88)

%
17.09
2.02

%
na
13.89

%
( 4.81)( 5.88)5

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
Explanatory Notes
14.2

Explanatory comments on any material change in the profit before taxation for the quarter reported on
as compared with the preceding quarter (continued)
Comparison of Current Quarter (“2Q24”) with immediate Preceding Quarter (“1Q24”)
In 2Q24, the Group’s revenue was recorded at RM429.91 million as compared with 1Q24 of RM451.63 million.
Profit before taxation (PBT) was RM38.57 million in 2Q24 compared with RM40.98 million in 1Q24.
The Gloves division’s revenue decreased by 7.02% to RM352.99 million in 2Q24 from RM379.63 million in
1Q24 mainly due to the logistic challenges caused by the ongoing global shipment constraints. A lower PBT of
RM22.08 million was recorded in 2Q24 as compared with PBT of RM26.57 million in 1Q24 mainly due tolower sales recorded and higher raw material cost and natural gas price in 2Q24.
The TRPs division’s revenue recorded at RM49.93 million in 2Q24 as compared with RM48.95 million in
1Q24. PBT recorded at RM10.52 million in 2Q24 as compared with RM8.92 million in 1Q24 due to deliveriesof higher margin products.
The Clean-Room division’s revenue was recorded at RM26.99 million in 2Q24 as compared with RM23.05
million in 1Q24. PBT recorded at RM2.47 million in 2Q24 compared with RM2.42 million in 1Q24.

14.3 Commentary on Prospects
The glove industry is anticipated to face a persistent supply-demand imbalance throughout FY2024,
compounded by the pressure on average selling prices (ASP) from international competitors. The challenging
operating conditions will be further impacted by rising costs of raw materials and natural gas. Moreover, theongoing global logistics disruptions and container shortages, particularly due to the Red Sea Crisis, willcontinue to impact glove shipments.
Nonetheless, the long-term outlook for glove demand remains positive. The glove industry has undergone
significant changes since the post-pandemic period, with demand patterns stabilising. This stability is due tothe gradual recovery in sales orders, driven by the reduction in pandemic stockpiles, as well as stricter standards
and increased hygiene awareness in both medical and industrial sectors. Additionally, the industry consolidationand capacity adjustments by key domestic players, along with the exit of new entrants in the pandemic period,
have collectively helped to alleviate the oversupply situation.
The Group remains committed to strengthen its glove division amidst these operational challenges by enhancing
cost efficiency through accelerating automation, digital solutions, ongoing human resources training, andimproving management systems. These efforts have already shown positive results and will continue to further
strengthen the Group's competitiveness as the market recovers. Furthermore, the Group is enhancing its
sustainability initiatives, acknowledging the increasing significance of social and environmental responsibility
to our customers.
The Technical Rubber Products (TRP) division expects some project delays in the infrastructure segment during
2HFY2024. However, with the positive outlook in the automotive segment, this division anticipated to achievea satisfactory performance for FY2024.
Despite the challenging landscape, the Group remains cautiously optimistic about its performance for FY2024.

14.4 Explanatory notes for variance of actual from forecast profit and shortfall in the profit guarantee (onlyapplicable to the final quarter).
Not applicable.

6

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
Explanatory Notes

14.5 Taxation
Quarter period ended Financial period ended
30/06/2024 30/06/2023 30/06/2024 30/06/2023
RM’000 RM’000
RM’000
RM’000Tax expense
Deferred taxation

5,927
500
6,427

4,211
975
5,186

14,863500
15,363

8,712
975
9,687

14.6 Profit after taxation
Profit after taxation arrived after charging/(crediting):
Quarter Financial
ended period ended
30/06/2024 30/06/2024
RM’000
RM’00080
138
28,051
54,120458106(697) ( 1,572)
1,408
1,338
( 10,325)( 20,502)( 1,300)( 2,747)( 5,208)( 10,656)Interest expense
Depreciation
Foreign exchange (gain)/loss – realised
Foreign exchange (gain)/loss – unrealised
Loss on derivatives – unrealised
Interest income
Investment income
Fair value gains on financial assets at FVTPL

14.7 Status of Corporate Proposal announced but not completed
There were no corporate proposals announced but not completed, for the current quarter and financial period
ended 30 June 2024.
14.8 Group Borrowingsa) The Group borrowings as at 30 June were as follows:
Total Unsecured
As at
As at
30/06/2024 31/12/2023
RM’000
RM’000
Short Term
Bankers’ acceptanceTerm loans due within 12 months

17,021
17,021

9,521
292
9,813

b) There were no debt securities for the financial period ended 30 June 2024.

7

KOSSAN RUBBER INDUSTRIES BHD
Company No. 197901003918 (48166-W)(Incorporated in Malaysia)
Explanatory Notes

14.9

Derivative Financial assets/(liabilities)
As at
30/06/2024
NominalValue Assets Liabilities
RM’000 RM’000 RM’000
Group
Derivatives at fair value
through profit and loss
-Forward foreign exchange
Contracts to sell

229,318

-

1,338

As at
31/12/2023
NominalValue Assets Liabilities
RM’000 RM’000 RM’000

34,923523-

Forward foreign exchange contracts are used to manage the foreign currency exposures arising from theGroup’s receivables and payables denominated in currencies other than the functional currencies of Group
entities. These forward foreign exchange contracts have maturities of less than one year after the end of thereporting period.

15.

Material Litigation
There were no pending material litigation since the last audited annual financial statements date to the date ofissue of the quarterly report.

16.

Earnings Per ShareProfit/(loss) after tax and minority interest

Current Quarter ended Financial period ended
30/06/2024 30/06/2023 30/06/2024 30/06/2023
RM’000
RM’000
RM’000
RM’00031,341( 3,298)
62,895( 27,553)

Basic earnings per share
Weighted average number ofordinary shares in issue (’000)
Basic earnings/(loss) per share (sen)2,551,620
1.23

2,551,620(
0.13)

2,551,620 2,551,620
2.46 (
1.08)

There is no dilution in earnings per share as there are no dilutive potential ordinary shares.

On behalf of the Board

Tan Sri Dato’ Lim Kuang Sia
Group Managing Director/ CEO
22 August 20248