17 P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 (cont’d) (ii) Webbing The revenue of webbing was approximately RM47.1 million in year 2021 (2020: RM36.9 million), increased by approximately RM10.2 million or 27.6% as compared to 2020. This was mainly attributable to an increase in sales volume for both furniture webbing and seat belt webbing from customers in Asia Pacific region and North America during the year. (iii) Other manufacturing products During the year, the revenue of other manufacturing products was approximately RM40.5 million (2020: RM31.2 million), increased by approximately RM9.3 million or 29.8% as compared to 2020, mainly due to an increase in revenue contributed by PVC related products by RM6.1 million and rubber tape products by RM3.2 million as compared to 2020. Retail Division The Group had opened a retail store in Singapore and a 49%-owned store in Thailand in year 2019. After few months of operations, the retail business was severely impacted by the COVID-19 since the beginning of year 2020. The borders of countries were closed which led to a decrease in tourists’ arrival and resulted in deterioration of overall consumers’ spending. During the pandemic, the Group had put in effort in sales promotion, exploring digital retailing and social media platform as well as implementing cost rationalisation to overcome this difficult time. Due to the prolonged COVID-19 pandemic and closure of borders, the retail business had experienced unprecedented difficulties in their operations and is unlikely to have major recovery in the short run. Therefore, the Board has decided to close the retail store in Singapore in the second quarter of 2021. The Group has reached an agreement with landlord of the retail store in Singapore on early termination and to waive the contractual liabilities on remaining lease payments and reinstatement of store. As a result, the corresponding lease liabilities and provision for restoration costs were reversed during the financial year. The Board believes this decision allows the Group to conserve management and financial resources during the pandemic and to reallocate the resources to those businesses that have a better long term demand trajectory. Management Discussion and Analysis
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