Tyre-maker YHI International has announced that its warehouse building at Lot Pt 1754 Jalan Persiaran Kip Utama, Kuala Lumpur, was affected by a fire on Oct 31. 

 

The cause of the fire is currently unknown and is being investigated, says YHI International BPF . 

 

The distribution warehouse was used by three distribution entities and one associate of the group: YHI (Malaysia), YHI Power (Malaysia), Evo-Trend Corporation (Malaysia) and Yokohama Tyre Sales Malaysia (YTSM), respectively.  

According to the group, inventory stored in the distribution warehouse by the three distribution entities amounted to approximately RM9.1 million ($2.7 million), while inventory for YTSM amounted to approximately RM6.5 million. 

 

That said, the group adds that the majority of the inventory is covered by insurance and that YHI International is currently in process of assessing the damage to the inventories that was caused by the fire. 

 

Since the fire, the operations of the group have been temporarily affected. The group has since implemented recovery efforts and is actively seeking the assistance and cooperation from its suppliers to expedite its efforts to replenish its inventory, resume normal operations and continue fulfilling its commitments to its customers. 

 

The group says that it is actively seeking a new distribution warehouse to resume its operations and is expected to release updates subject to material developments. 

YHI Singapore has appointed legal counsel to advise on the charge

YHI Corporation (Singapore), a subsidiary of YHI International, has been charged for allegedly failing to take reasonably practicable measures necessary to ensure the safety and health of an employee at work, leading to their death.

 

The automotive and industrial product manufacturer was charged on Oct 13, 2023, under section 12(1) of the Workplace Safety and Health Act 2006 (WSHA), it said in a Friday (May 3) evening bourse filing. 

 

Alex Ong Chin Kiong, chief operating officer of YHI International, also faces a mirror charge under section 48(1) of the WSHA, for allegedly committing the same offence. He is also a director of YHI Singapore.

 

The company said YHI Singapore has appointed legal counsel to advise on the charge. It will update shareholders on related material developments when appropriate, it added.

 

Tyre maker YHI International has reported earnings of $19.2 million for the FY2020 ended December, 47.8% higher than earnings of $13.0 million in FY2019.

 

While FY2020 revenue saw a 5.7% y-o-y decrease to $422.8 million due to lower sales in both the group&rsquo s distribution and manufacturing business, gross profit was 5.6% y-o-y higher at $101.4 million mainly due to the higher gross profit margin (GPM).

 

GPM for the year increased 2.6 percentage points to 24.0% due to higher GPM from the group&rsquo s distribution and manufacturing business.

 

During the year, other gains increased 36.8% y-o-y to $7.8 million mainly due to government grants.

 

Credit loss allowance on trade receivables increased from $0.9 million in FY2019 to $1.4 million in FY2020 mainly due to specific debtors who are credit impaired and invoices remains unpaid after a year.

 

Share of profit from an associated company fell 11.2% y-o-y to $2.7 million in FY2020.

Earnings per share (EPS) for the period stood at 6.57 cents on a fully diluted basis.

Cash and cash equivalents as at end-December came in at $84.5 million.

 

A first and final dividend of 3.30 cents per share has been declared for the FY2020, compared to the 2.22 cents declared in FY2019.

 

Despite the challenges ahead, the group says it is looking to strengthen its business operations, improve efficiency and productivity and focus on its &ldquo 3R strategy&rdquo namely &ldquo Reduce inventory, reduce accounts receivable and reduce operating costs&rdquo .

 

&ldquo The group will continue to source for new products, new business opportunities and explore new sale channels to grow our businesses across various market segments regionally,&rdquo it says.