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,In a filing with Bursa Malaysia yesterday, Johan Holdings said global glove demand would remain on a growth path due to the structural shift in glove usage triggered by the pandemic.

PETALING JAYA: Johan Holdings Bhd is optimistic about the long-term prospects of the glove sector despite near-term challenges.

In a filing with Bursa Malaysia yesterday, the group said global glove demand would remain on a growth path due to the structural shift in glove usage triggered by the pandemic.

It said this would result in regulatory and healthcare requirements that would see glove demand at a higher level.

“The group will continue to focus on securing new and recurring sales orders to improve the utilisation rates of the production lines and place greater emphasis on cost management and operational efficiencies,” it said.

Johan Holdings posted its first quarterly loss in the current quarter, mainly due to its healthcare segment loss of RM2.23mil on the back of startup expenses and lower average selling prices of gloves.

The group said its 60%-owned subsidiary Dynacare Sdn Bhd is expected to incur operating losses due to testing and commissioning in the early months.

Dynacare’s flagship house-brand ESGloves nitrile gloves were launched in Malaysia and several countries in Asean.

It obtained certification from the Malaysia Medical Device Authority on Nov 30, 2021.

Two certifications from the European Union and the United States, respectively, are in progress and expected to be obtained in the third quarter of 2022.

Its first double-former dipping line was operational in November 2021, with subsequent dipping lines to be ready by July 2022, making a total of six dipping lines.

Johan Holdings posted a net loss of RM2.57mil in its third quarter ended April 30, 2022.

Apart from its healthcare segment, the company’s investment holding and secretarial services segment registered a loss of RM1.43mil, mainly due to fair value loss on investment securities of RM590,000 and foreign exchange loss of RM323,000.

Revenue in the third quarter stood at RM5.65mil, which was generated from trading, hotel and its first registered sales of gloves.

Dynacare started the commercial gloves production of its first high-capacity double-former dipping line on Nov 27, 2021.The rollout of the commercial gloves production followed the completion of the 7.198ha acquisition in the Lumut Port Industrial Park in Perak on Nov 26.

Its manufacturing plant utilises the latest energy-efficient technologies to ensure the minimum use of energy and maximise the usage of renewable energy to reduce the carbon footprint of ESGloves.

The plant utilises the best-available-techniques to treat, recycle, and reuse water to ensure the production processes have minimal impact on the environment.

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