Singapore-listed Aspen (Group) Holdings Ltd has announced plans to "significantly" scale down its glove-making unit as it suffers from industry-wide issues

[The_King]

KUALA LUMPUR (June 9): Singapore-listed Aspen (Group) Holdings Ltd has announced plans to "significantly" scale down its glove-making unit as it suffers from industry-wide issues from lower demand and falling average selling price (ASP), resulting in it being unable to secure significant new purchase orders from its existing or new customers.

This comes after Aspen Group ventured into glove-making business in August 2020 and set up its glove manufacturing plant at Kulim Hi-Tech Park in Kedah. Its glove unit is operating under the name Aspen Glove Sdn Bhd (AGSB), which is a joint venture between Aspen Group and CMY Capital Sdn Bhd, an investment holding company founded by businessman Tan Sri Chua Ma Yu.

Along with the scaling down of AGSB's operations, the group is also currently evaluating various options on the future direction of AGSB, including recapitalisation, entering into a joint venture and/or disposal of the entire business and assets of AGSB, Aspen's filing with Singapore Exchange showed.

Its president and group chief executive officer Murly Manokharan attributed the move to the increasing headwinds for the medical glove market resulting from a drastic reduction of demand owing mainly to the easing of the Covid-19-induced demand and high inventory levels of medical gloves, heightened competition, global supply chain challenges, higher shipping and logistics costs, high inflation and continuous decline in the ASP of gloves.

He added the glove unit also took a hit from the geopolitical tensions and risks of a global economic recession from the ongoing Russia-Ukraine conflict.

He also cited that further margin compression is expected due to the higher production costs also dragging on its glove-making business.

"Amidst the falling ASP, glove buyers have refrained from stocking up on gloves to avoid locking in purchases at high prices.

"As a result, AGSB has been unable to secure any significant new purchase orders from its existing or new customers," he added.

Against this backdrop, Murly warned that the scaling down of AGSB's operations is expected to have a material impact on the group's results in the current financial year ending June 30, 2022.

In the meantime, he said the group will continue to focus on its property development sector and food and beverage sector which are showing signs of recovery as most countries progressively transition towards endemic management of Covid-19.

However, he cautioned that the recovery of these sectors may be thwarted by the supply chain disruptions which persist, soaring price inflation and fears over a global economic recession.

Aspen Group is a Penang-based property developer. Its flagship project is Aspen Vision City in Batu Kawan, with an estimated gross development value of RM13 billion.

At 10.30am, Aspen Group shares traded unchanged at six cents. Year to date, it has declined 45.45%.

 

 

https://www.theedgemarkets.com/article/aspen-scale-down-its-glovemaking-unit-warns-material-impact

[coffeenut]

8 minutes ago, The_King said:

This comes after Aspen Group ventured into glove-making business in August 2020 and set up its glove manufacturing plant at Kulim Hi-Tech Park in Kedah. Its glove unit is operating under the name Aspen Glove Sdn Bhd (AGSB), which is a joint venture between Aspen Group and CMY Capital Sdn Bhd, an investment holding company founded by businessman Tan Sri Chua Ma Yu.

 

Aspen Group is a Penang-based property developer. Its flagship project is Aspen Vision City in Batu Kawan, with an estimated gross development value of RM13 billion.

At 10.30am, Aspen Group shares traded unchanged at six cents. Year to date, it has declined 45.45%.

 

 

Satki company .. entered business in 2020, 3 years later decide cannot grow business .. 

 

Core business - property developer, might as well have "ventured" into manufacturing baby instant formula rather than gloves  

Edited March 24, 2023 by coffeenut

[Huat Zai]

17 minutes ago, The_King said:

KUALA LUMPUR (June 9): Singapore-listed Aspen (Group) Holdings Ltd has announced plans to "significantly" scale down its glove-making unit as it suffers from industry-wide issues from lower demand and falling average selling price (ASP), resulting in it being unable to secure significant new purchase orders from its existing or new customers.

This comes after Aspen Group ventured into glove-making business in August 2020 and set up its glove manufacturing plant at Kulim Hi-Tech Park in Kedah. Its glove unit is operating under the name Aspen Glove Sdn Bhd (AGSB), which is a joint venture between Aspen Group and CMY Capital Sdn Bhd, an investment holding company founded by businessman Tan Sri Chua Ma Yu.

Along with the scaling down of AGSB's operations, the group is also currently evaluating various options on the future direction of AGSB, including recapitalisation, entering into a joint venture and/or disposal of the entire business and assets of AGSB, Aspen's filing with Singapore Exchange showed.

Its president and group chief executive officer Murly Manokharan attributed the move to the increasing headwinds for the medical glove market resulting from a drastic reduction of demand owing mainly to the easing of the Covid-19-induced demand and high inventory levels of medical gloves, heightened competition, global supply chain challenges, higher shipping and logistics costs, high inflation and continuous decline in the ASP of gloves.

He added the glove unit also took a hit from the geopolitical tensions and risks of a global economic recession from the ongoing Russia-Ukraine conflict.

He also cited that further margin compression is expected due to the higher production costs also dragging on its glove-making business.

"Amidst the falling ASP, glove buyers have refrained from stocking up on gloves to avoid locking in purchases at high prices.

"As a result, AGSB has been unable to secure any significant new purchase orders from its existing or new customers," he added.

Against this backdrop, Murly warned that the scaling down of AGSB's operations is expected to have a material impact on the group's results in the current financial year ending June 30, 2022.

In the meantime, he said the group will continue to focus on its property development sector and food and beverage sector which are showing signs of recovery as most countries progressively transition towards endemic management of Covid-19.

However, he cautioned that the recovery of these sectors may be thwarted by the supply chain disruptions which persist, soaring price inflation and fears over a global economic recession.

Aspen Group is a Penang-based property developer. Its flagship project is Aspen Vision City in Batu Kawan, with an estimated gross development value of RM13 billion.

At 10.30am, Aspen Group shares traded unchanged at six cents. Year to date, it has declined 45.45%.

 

 

https://www.theedgemarkets.com/article/aspen-scale-down-its-glovemaking-unit-warns-material-impact

 

11 minutes ago, coffeenut said:

 

Satki company .. entered business in 2020, 3 years later decide cannot grow business .. 

 

Core business - property developer, might as well have "ventured" into manufacturing baby instant formula rather than gloves  

 

Let me help you put some perspective into the situation

 

Quote

Aspen is an indirect wholly owned subsidiary of Temasek

https://www.temasek.com.sg/en/news-and-resources/news-room/news/2006/temasek-scb-led-investor-group-acquires-shinawatra-and-damapong-

 

In before @socrates469bc's monkeys.

[coffeenut]

24 minutes ago, Huat Zai said:

 

Let me help you put some perspective into the situation

 

https://www.temasek.com.sg/en/news-and-resources/news-room/news/2006/temasek-scb-led-investor-group-acquires-shinawatra-and-damapong-

 

In before @socrates469bc's monkeys.

 

With this type of "diversification", I fully sappork the financing entities to lose their entire $$ 

 

But heng, Singapore can afford to be contrarian  

[Huat Zai]

3 minutes ago, coffeenut said:

 

With this type of "diversification", I fully sappork the financing entities to lose their entire $$ 

 

But heng, Singapore can afford to be contrarian  

 

 

 

[The_King]

Got buy high sell low mean short asap

[socrates469bc]

5 hours ago, coffeenut said:

 

Satki company .. entered business in 2020, 3 years later decide cannot grow business .. 

 

Core business - property developer, might as well have "ventured" into manufacturing baby instant formula rather than gloves  

 

this is not the only con job out there, kumgong pappy serf.

 

wahahahahahahahahahaha

 

 

[socrates469bc]

5 hours ago, Huat Zai said:

 

 

Let me help you put some perspective into the situation

 

https://www.temasek.com.sg/en/news-and-resources/news-room/news/2006/temasek-scb-led-investor-group-acquires-shinawatra-and-damapong-

 

In before @socrates469bc's monkeys.

 

when limpeh saw this name, limpeh immediately know this is a short-term game to lure in the kgks.

 

5 hours ago, The_King said:

................. businessman Tan Sri Chua Ma Yu.

 

wahahahahahahahahahahahahahahahahaha

[The_King]

49 minutes ago, socrates469bc said:

 

when limpeh saw this name, limpeh immediately know this is a short-term game to lure in the kgks.

 

 

wahahahahahahahahahahahahahahahahaha

only dkgk hgink glove can make money

[socrates469bc]

15 minutes ago, The_King said:

only dkgk hgink glove can make money

 

if u started in the biz long long time ago like this bolehsia towkay, u can make money de.

 

wahahahahahahahahahahaha

 

[The_King]

8 minutes ago, socrates469bc said:

 

if u started in the biz long long time ago like this bolehsia towkay, u can make money de.

 

wahahahahahahahahahahaha

 

buy high sell lower is late bommer

 

how to make money

[metalrover]

Should just switch to making condoms instead. One glove can remake into 5 condoms at least..

 

No need thank me

[socrates469bc]

12 hours ago, metalrover said:

Should just switch to making condoms instead. One glove can remake into 5 condoms at least..

 

No need thank me

 

actually, the condom oem market is alrdy cornered by these 2 bolehsian and siamland companies liao.

 

so temasek also too late.

 

wahahahahahahahahaha