Big Gainer from Pandemic –
Top Glove Corporation Berhad
October 09, 2020
On 17 September 2020 Top Glove Corporation Berhad (Top Glove) announced its full financial year results ended 31 August 2020. Revenue for the year reached a record high of RM7.24 billion and profit after tax was RM1.9 billion, a spike of 417% from the previous financial year. Public shareholders (57,000) were rewarded with a final dividend of 8.5 sen per share bringing the total dividend payout to 11.8 sen per share or approximately RM961.2 million. Tan Sri Lim Wee Chai, 62, Executive Chairman of Top Glove, was over the moon with the excellent performance of the company he co-founded the company with his wife, Puan Sri Tong Siew Bee, in 1991.
Top Glove has never lost money since it was listed on Bursa Malaysia on 27 March 2001. Its revenue hit the RM1 billion mark in 2007 and since has been on an upward trend. The satisfaction was made sweeter because it was a business which Tan Sri Lim said helped bolster the Malaysian economy during this difficult period with Top Glove intensifying its hiring and providing business to supporting industries. Further he was happy to add that Top Glove was able to help “protect and save lives in Malaysia and all over the world with our gloves during this critical time.” Tan Sri Lim is now estimated to have a net worth of over US$5 billion (The Straits Times).
When Tan Sri Lim started his first Top Glove factory with his wife in 1991 with their savings of RM180,000, he said it had to succeed because there was no backup plan. In an interview with The Straits Times, Singapore recently, Tan Sri Lim said that Top Glove controls 26 per cent of the world's rubber glove market, with 43 factories worldwide and an annual production capacity of over 70.5 billion gloves. He has revealed that plans are being considered for Top Glove’s listing on the Hong Kong Stock Exchange.
Top Glove is a family controlled company. Tan Sri Lim, his wife and his son, Lim Jin Feng, beneficially own 41.2% stake in Top Glove as at 29 October 2019. Tan Sri Lim’s brother, Lim Hooi Sin is an Executive Director in the company and is further deemed interested in the 34% stake of the Lim family’s shares in the company. Puan Sri Tong Siew Bee, 62, is on the board of Top Glove but after 19 years with the company, she has since May 2019 relinquished her executive director’s position.
- Top Glove Corporation Berhad. Press Release dated 17 September 2020. New Highs in Revenue and Profit with more new peaks to come. https://www.topglove.com/press-releases/
- Top Glove Corporation Berhad. Analysis of shareholdings as at 29 October 2019. Substantial shareholders. Annual Report 2019. https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da-6db6a0ab2ef4/Assets/anual_report/TopGloveAR2019.pdf
- The Straits Times. 26 July 2020. Top Glove tycoon Lim Wee Chai a health advocate and charity volunteer who was raised on rubber. https://www.straitstimes.com/asia/se-asia/raised-on-rubber-malaysian-businessman-tan-sri-lim-wee-chai-boss-of-top-glove
- The Malay Mail. 17 September 2020. Top Glove looks to list in Hong Kong after ‘supernormal’ Covid-19 pandemic demand. https://www.malaymail.com/news/money/2020/09/17/top-glove-looks-to-list-in-hong-kong-after-supernormal-covid-19-pandemic-de/1904127