In a statement released on Monday, Ni Hsin said the venture will be carried out through MyAngkasa Ni Hsin Sdn Bhd, in which Ni Hsin will have a 70% stake while the remainder 30% will be held by My Angkasa.MyAngkasa is a wholly-owned subsidiary of National Cooperative Bhd (Angkasa), the APEX Cooperative in Malaysia, providing management services for the sales and distribution of “Clixster Reload Value” and general trading.
It currently represents about 12,000 cooperatives nationwide.
Under the shareholders agreement, Ni Hsin will be responsible in managing the business operations as well as the manufacture and supply of premium ply stainless steel cookware and related products to the new company.
MyAngkasa meanwhile will market and distribute the new company’s products to Angkasa’s customer network. This includes the marketing in MyAngkasa or Angkasa’s online shopping portal.
“The new company will provide Ni Hsin with the opportunity to leverage on the vast customer network of Angkasa to build and expand our cookware and related business that will contribute sustainable positive earnings to Ni Hsin. The cooperation is envisaged to help broaded Ni Hsin’s exposure in other markets and we will continue to to strengthen our products’ value proposition,” said Ni Hsin MD Chen Shien Yee.
Chen added that the new company adopts a dividend policy to declare and pay out a minimum of 20% of its balance net profit to shareholders.
Ni Hsin manufacturers, sells and distributes stainless steel cookware, convex mirrors and clad metal.
It currently exports its products to Japan, Korea, Taiwan, China, Hong Kong, Thailand, Indonesia, Europe, US, Canada, and Australia, among others. Export sales account for 89% of revenue currently.
Chen added: “With the strategy of competitive pricing, quality assurance and flexible order quantity, we are expecting substantial growth in the clad metal and convex mirror business in Europe.”