Inix plans to add two glove lines every three months up until 14 lines
KUALA LUMPUR (Jan 10): ICT solutions firm Inix Technologies Holdings Bhd, which ventured into glove making, is planning to add two production lines every three months until a total of 14 production lines are commissioned.
The loss-making company, which had entered into a Memorandum of Agreement (MoA) last month, has paid 45% deposit to acquire L&S Gloves Sdn Bhd, in which the definitive agreement for the acquisition is at advanced stage and pending finalisation, according to a statement yesterday.
Currently, L&S Glove has two existing production lines.
Inix said its wholly-owned subsidiary iNix Glove Manufacturing Sdn Bhd has signed a 10-year lease agreement, which is renewable for another 10 years, for a glove factory site measuring 2.25 acres in Beranang, Selangor in preparation.
With the new tenancy agreement, L&S Gloves and iNix Glove will be able to add two more production lines next month.
Teo Yoek Leong, a director of L&S Gloves, said L&S Gloves’ daily production of gloves are sold out in advance and delivery to their customers are done on a daily basis.
The 14 production lines are expected to have a production capacity of over 110 million pieces of latex gloves a month or 1.32 billion per annum, said Inix.
Inix has been loss-making since the financial year ended July 31, 2014 (FY14). In September of last year, Inix had also announced it was in early talks with parties developing a Covid-19 vaccine. However, no updates have been made since.
For the nine months ended Oct 31, 2020 (9MFY21), it reported a lower net loss of RM974,000 versus RM5.81 million a year ago, while revenue slipped 68% to RM2.02 million, from RM6.43 million. The better performance is due to lower administration expenses, as well as absence of loss from shares of associates amounting to RM3.47 million.
Shares of Inix that has been traded below 20 sen for the last five years, surged to 82 sen in August last year, before it fell to close at 38 sen on Friday. Still, it was up by 660% from five sen a year ago.
Inix dives deeper into rubber glove business with new stake buy