TOP Glove, which reported a significant jump in earnings following extraordinary demand for disposable gloves, is now planning for a listing in Hong Kong within six to nine months, said Reuters.

The move comes at a time when it has been reported that New Zealand has just stopped importing Top Glove’s products following allegations of workers’ exploitation.

Top Glove is already listed on Bursa Malaysia and in Singapore.

Speaking about the Hong Kong listing, group’s executive chairman Lim Wee Chai said the world’s largest glove producer is in talks with bankers about the initial public offering.

“It’s only a plan and we are talking to the bankers to see which is the most suitable method to go for listing in Hong Kong,” Lim said in a virtual briefing.

“As a whole, we are a global company. We must expand our company to a bigger market so that (we are) visible in the world market.”

Top Glove managing director Lee Kim Meow said the group’s financial results “hit an unprecedented high”, when it recorded a net profit of RM1.29 billion for its fourth quarter, which ended on August 31 – a figure that’s 17 times higher than the RM74.2 million recorded in the same quarter last year.

Revenue also increased by 161% in the quarter under review to RM3.11 billion.

Lee said protective gear will still be required even when a Covid-19 vaccine becomes available.

“With a triple-digit increase in the group’s monthly order book and lead times closing in on the two-year mark, we expect to continue delivering solid results well into the financial year 2021,” Lee added.

Top Glove said demand for gloves remains at a supernormal level and is expected to grow by 25% next year from the 2 % this year, and 15 % post-pandemic.

Its current capacity enables it to produce 85.5 billion glove pieces (one of a pair), a year.

The group has allocated a capital expenditure amounting to RM8 billion over the next six years to add an additional capacity of 100 billion pieces.

Top Glove’s factory in Vietnam is scheduled to be commissioned next month.

Meanwhile, New Zealand-based news outlet, Newsroom reported on Monday that Ebos, a PPE supplier in the country, has stopped importing Top Glove’s products after the publication reported on alleged workers’ exploitation.

Ebos, which is listed on the New Zealand and Australian stock exchanges, said it is stopping all imports of a brand of glove made by Top Glove and supplied to New Zealand by Australian glove and protective equipment company Ansell.

The Malaysian Insight is still waiting for Top Glove’s response to queries on the report.

In July, the company was slapped with a detention order by the US Customs and Border Protection (CBP), which is usually issued to prevent the importation of goods suspected of having been produced by forced labour. – September 18, 2020.