Hartalega

HARTALEGA Holdings Bhd said its wholly-owned subsidiary, Hartalega NGC Sdn Bhd, has received a notice of additional assessments from the Inland Revenue Board of Malaysia (IRB) amounting to approximately RM101 million for the assessment years 2017 to 2022.

In a filing with Bursa Malaysia, the group said the additional assessments cover RM13.92 million for 2017, RM36.35 million for 2018, RM10,695 for 2019, RM32.89 million for 2020, RM18.10 million for 2021, and RM90,625 for 2022.

Hartalega said it is currently seeking legal advice and evaluating its legal options, which may include initiating a formal appeal to the IRB.

The group said it will make further announcements as and when there are material developments. — TMR

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HARTALEGA Holdings Bhd posted a net profit of RM12 million for the first quarter ended June 30, 2025 (1QFY2026), down 60.5% from RM31.9 million a year earlier, as average selling prices (ASPs) and sales volumes continued to decline.

Revenue slipped 5.3% year-on-year to RM553 million, compared to RM583.8 million in 1QFY2025. Profit before tax came in at RM14 million, the group said in a statement.

The weaker performance was attributed to deferred orders from US buyers, who are managing front-loaded inventories and responding cautiously to ongoing US tariff developments.

Hartalega also cited pricing pressure in non-US markets, particularly due to excess supply from Chinese manufacturers.

Operating profit was further impacted by the strengthening ringgit, lower ASPs, and weaker cost absorption resulting from reduced capacity utilisation.

“The first quarter reflects the ongoing recalibration taking place in the global glove sector,” said Hartalega CEO Kuan Mun Leong in a statement.

“With overcapacity still persisting and operating costs rising, competition remains intense, especially from China and other regional manufacturers.”

He added that US tariff uncertainty is weighing on demand and prompting a shift in sourcing strategies among US importers.

“Nevertheless, we are anchored by our long-term strategy, focusing on enhancing production efficiency and cost optimisation, investing in advanced automation, maintaining robust fiscal discipline, and sharpening our sales approach,” Kuan said.

Despite the near-term challenges, Hartalega remains positive on long-term demand, driven by global healthcare needs and rising hygiene awareness. — TMR

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