GEORGE TOWN, June 23 (Bernama) — Niche Capital Emas Holdings Bhd, an investment holding company involved in the manufacture and sale of gold jewellery and ornaments, plans to expand its Malaysia operations and refocus on the domestic market.
Its Managing Director Mah Weng Kee said this was because its current overseas operation in China was constrained by excessive competition and fluctuations in foreign exchange market.
“The heightened competition in our operation in China has resulted in low margin as the company puts in effort to defend its market share.
“At the moment, due to capital constraint, we will not be expanding our China-based retail network,” he told reporters after the company’s annual general meeting, here today.
Mah said the company recorded a loss before tax of RM11.54 million for the financial year ended Dec 31, 2013 (FY13) compared with a loss of RM3.43 million previously.
He said the average international gold price dropped by around 16 per cent in FY13 compared with the average gold price during the 18 months ended Dec 31, 2012.
“The drop in the average gold price has resulted in increased revenue for the financial year under review. On the other hand, it has also adversely affected the profit margin of the company’s China operation,” he said.
Thus, Mah said the company would rationalise its business in Malaysia next year in order to mitigate the company’s losses.
Furthermore, he said the company also planned to expand its expertise especially in retailing, designing and security of gold.
“We might look into that area and we can proceed with this hopefully next year,” he added.