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Welcome to the Top Glove website. Whether you are an existing or potential customer, shareholder, business partner, or employee, I invite you to explore this portal and learn more about all we have to offer.

Our exciting journey began in 1991, as a local business with 1 factory, 1 glove production line and 100 employees. Since then, we have been pushing boundaries and identifying innovative ways to deliver on our Business Direction to produce high quality gloves at an efficient low cost, the result of which we have attained international acclaim, emerging as the world’s largest manufacturer of gloves with 40 factories, 648 production line and a capacity of 60.5 billion pieces of gloves per annum. Our consistently strong performance and robust growth in market capitalization with a return to shareholders of 8,057% (as at 11 February 2019) since its listing in 2001, also led Top Glove to be included as a constituent of the FTSE Bursa Malaysia KLCI, effective 24 December 2018. We are also privileged to be the preferred employer to an 18,000-strong diverse workforce, who are the lifeblood of our company.

Indeed, we have undergone much change over the decades and continue to be open to doing things differently, with a view to improving the way we work, for the betterment of our manufacturing operations, company performance and people. In all we do, we are guided by our core values which include foremost, working with Honesty, Integrity and Transparency, which are the tenets of our Business Ethics and the very foundation of our company. We also believe that health truly is wealth, to which end we practise Top Glove’s 5 Quality Wells Clean Well, Eat Well, Work Well, Exercise Well and Sleep Well daily, so we remain fit and well-positioned to contribute positively and compete effectively.

Our journey doesn’t stop here. In fact, we have set our sights even higher going forward. As a growing and dynamic company, we aim to capture 30% of the world market by 2020 and to ultimately become a Fortune Global 500 company by 2040. These may be ambitious goals but we do not set goals which are easy to attain; we set goals which are good for our business and good for our people. While the road towards success may be challenging, we believe that as we continue to work harder, faster and smarter and leverage advanced technologies, we will be able to overcome them just as we have in the past.

A healthy start to FY2019

We are pleased to have commenced our new financial year on a strong note despite a challenging environment.

Top Glove achieved 1QFY19 Sales Revenue of RM1.26 billion, an increase of 34.5% compared with 1QFY18 and its highest quarterly Sales Revenue to date. Profit Before Tax and Profit After Tax came in at RM141.9 million and RM111.7 million, up 16.3% and 5.5% respectively against the corresponding period last year. We also recorded solid Sales Volume (Quantity Sold) growth of 19% year-on-year. Meanwhile, on a quarter-on-quarter comparison, our Sales Revenue grew 3.7%, as Sales Volume rose 1% and Profit After Tax was 8.9% higher than 4QFY18.

Accounting for the Group's robust Sales figures was strong demand growth, which continued to be observed both in developed and emerging markets. Additional capacity available from newly completed factories coupled with higher utilization, as well as ongoing operational improvements, resulted in better efficiency. Meanwhile, lower average raw material prices also boosted margins and profitability, with EBIDTA margins improving to 16.3% from 16.1% in 1QFY18. However, higher interest costs from the funding for M&As and organic expansion, and a lower contribution from the vinyl glove segment following intensifying competition in the vinyl glove segment as supply from China normalized, resulted in a softer Profit Before Tax margin for this quarter.

The Group’s expansion plans are on track. In progress is the expansion of several existing facilities: F32 (Phases 1 & 2 to commence operations by 1st quarter and 3rd quarter 2019 respectively), F33 (to commence operations by 4th quarter 2019), F5A (to commence operations by 4th quarter 2019), and F40 (Phases 1 & 2 to commence operations by 4th quarter 2019 and 1st quarter 2020 respectively). Meanwhile, its newest factory F8A in Thailand, is scheduled to be operational 2nd quarter 2020 and Top Glove’s factory in Vietnam (F42), is expected to commence operations by 3rd quarter 2020. These will boost the Group’s total number of production lines by an additional 148 lines and production capacity by 14.8 billion gloves per annum. By December 2020, Top Glove is projected to have 796 production lines and a production capacity of 75.3 billion gloves per annum.

Ongoing efforts are also in place to improve the performance of Aspion. The Group’s Engineering, R&D and Human Resources teams, as well as other supporting departments will continue to focus on further enhancement, modification and improvement of the glove production process, leveraging the latest technology and automation, towards ensuring cost efficiency and quality improvement.

I am also pleased to note that Top Glove will be officially included as a constituent of the FTSE Bursa Malaysia KLCI, a stock market index that lists 30 of the largest companies on Bursa Malaysia by market capitalisation, effective 24 December 2018. Top Glove was also recognised at The Edge’s Billion Ringgit Club Awards held on 11 December 2018, where we received awards for Highest Return on Equity Over 3 Years, Highest Growth in Profit Over 3 Years and Highest Return to Shareholders Over 3 Years under the Healthcare sector. We also won an award at the MSWG Asean Corporate Governance Award 2018 under the Top 50 ASEAN PLCs category, as well as at the Asean Business Awards 2018 under the Priority Integrated Sector (Rubber-based) category.

Employee well-being continues to be a foremost priority at Top Glove. We acknowledge that our people have been instrumental to our success thus far and will continue to be the most important factor in achieving our Fortune Global 500 Dream. We recognise there are areas we can improve on and are committed to doing so, particularly in terms of health and working environment.

We expect the business environment to remain challenging in the new year, in view of intensifying competition and cost increases, such as the impending increase in minimum wage effective January 2019. However, our industry prospects remain promising given that glove usage is still on the rise, particularly in emerging countries and set to grow by 10% every year. I am confident that as we continue to focus steadily on improving our quality and efficiency, as well as adopting technological advancements across our operations, we can look forward to a very good year ahead.

 

TOP GLOVE, TOP QUALITY, TOP EFFICIENCY

GOOD HEALTH, SAFETY FIRST & BE HONEST

Tan Sri Dr Lim Wee Chai
17 December 2018