KUALA LUMPUR (June 1): Lion Industries Corporation Bhd remained in the red in the third quarter ended March 31, 2020 (Q3 2020), but its net loss narrowed to RM57.87 million from RM72.17 million in the same period last year.

Revenue declined to RM555.19 million versus RM693.36 million previously due to the lower sales volume of steel products, it said in a filing with Bursa Malaysia today.

“However, the group recorded a lower loss from operations of RM27.4 million due to higher sales prices and improved margins,” it said.

For the nine-month period (9M FY20), the company’s net loss widened to RM267.32 million from RM96.57 million in the same period last year, while revenue declined to RM1.85 billion from RM2.42 billion previously, mainly due to lower revenue registered by its steel division due to the Movement Control Order (MCO) that began on March 18, 2020.

Lion Industries said its businesses, being non-essential businesses, were temporarily closed during the MCO period, resulting in a higher operating loss of RM175.17 million for the period from RM38.68 million a year ago.

It added that the company's net assets per share as at March 31, 2020 stood at RM2.06, a decrease of 40 sen from that of the last financial year.

On prospects, Lion Industries said its businesses were not spared from the crisis sparked by the unprecedented Covid-19 outbreak, causing global economic activities to grind to a halt with global supply chains and international trade disrupted. 

“While the challenges ahead are highly uncertain, the company has implemented strict cost control measures to contain operating costs,” it said.

It added that the group would stay vigilant and responsive to market changes and to improve its operating performance for the next quarter.