BEST World International posted a 11.1 per cent year-on-year drop in net profit to S$25.1 million in the third quarter ended Sept 30, 2021.

 

This comes as revenue was 10.5 per cent lower at S$117.49 million, partly due to lower revenue for its direct selling segment, while earnings per share for the quarter under review worked out to 4.61 Singapore cents, down from 5.19 cents previously.

 

The group highlighted that it is already seeing the effects of second waves of the pandemic in its key markets, Taiwan and Malaysia. It warned that it expects continued disruptions - in the form of scaled down or cancelled marketing events and activities - in another key market, China, for the rest of the year.

 

Best World said: " Management' s outlook for the next reporting period will still be a cautious one."

 

Shares in Best World are suspended from trading.

 

In a separate announcement, Best World also flagged that it is considering a delisting.

 

It said: " After careful consideration and taking into account the prevailing market conditions and the circumstances surrounding the company (which includes the lack of clarity as to whether the Ministry of Commerce of China will be accepting filings for the expansion of coverage of existing direct selling licenses within a reasonable timeframe and in the foreseeable future), the board has come to the view that it might be appropriate to consider a delisting and will be exploring all feasible options to achieve the same."

 

In March, the company had said at the time that following consultation with Singapore Exchange RegCo, it believed trading of its shares would remain suspended until the group gains traction in its pivot to a direct selling model in China. This comes as SGX RegCo continues to have " some regulatory concerns on the group' s current sales and distribution model in China" .

 

Best World expects it will need external financing for the delisting, which in turn may impact the feasibility of such an exercise. At the same time, the company is exploring options to " provide shareholders with certain liquidity/cash value for their shares, including by way of an off-market share buyback scheme," it added.