GEORGE TOWN: Texchem Resources Bhd has developed frozen ready-to-eat products which will be made available in its Sushi King outlets as well as e-commerce platforms soon.
Group executive chairman Tan Sri Fumihiko Konishi said this was one of the moves embraced by Texchem to cater to today's younger consumers, change in lifestyle and shift in behavior to the preference of eating in, due to the Covid-19 pandemic.
"The pandemic has resulted in unprecedented preventive global lockdown measures of varying degrees and these undoubtedly have adversely impacted the global economy.
"The Texchem Group will continue with various austerity measures, cost efficiencies and marketing initiatives through various delivery channels to mitigate the impact on its sales as well as conserving cash flow," he said after its 46th annual shareholders' meeting held virtually today.
Konishi said while the business environment remains challenging, Texchem expects its Restaurant Division to be impacted significantly.
"We remain alert to opportunities to strengthen and grow our businesses in the various industries, and have started producing and distributing personal protective equipment (PPE) and sanitation supplies to curb the Covid-19 outbreak, he added.
Its face shields, marketed under the brand name "Tex- Shield", are supplied to Malaysia, Singapore, Japan, Thailand, Indonesia, Vietnam and the US.
"We hold the regional distribution rights for a face masks manufacturer in Malaysia.
"Sanitation supplies manufactured by our Industrial Division include surface disinfectant and hand sanitisers," he said.
Texchem said its year ended December 31, 2019 was a year represented by "mixed outcomes."
"It was impacted by uncertainties due to prolonged trade disputes, Brexit, weak consumer spending and economic indicators pointing towards global economic slowdown."
The company reported a revenue of RM1.13 billion and a pre-tax profit of RM815,000 last yesr. I
"Our Food Division was the bright spark in financial year 2019, where we saw strategies in change management yield positive results leading to higher sales and a turnaround," Konishi said.
"Our Industrial Division was impacted by the US-China trade war which resulted in severe raw material price reduction, unstable supply and demand and keen competition which affected margins," he added.
Continual expansion of its medical life sciences business in Polymer Engineering Division saw revenue grow in this segment by 14.5 per cent, while the Restaurant Division was impacted by the increasingly competitive food and beverage industry and weak consumer spending.
He added that Texchem's Sushi King's grab and go concept, which provides on-the-go customers with well-balanced delicious meals in a fast and convenient manner, haD boosted its market presence.