Ni Hsin, which also manufactures convex mirrors and clad metals, told Bursa Malaysia that the company would, however, continue to be the manufacturer for all ODM and OEM customers including the Buffalo brand of premium cookware.
“The termination will enable the Ni Hsin group to focus on developing an in-house brand name and develop specific marketing and brand development strategies for both local and overseas markets,” it said.
Previously, Standardworld gave Ni Hsin the exclusive right to use the Buffalo brand in exchange for a royalty fee as a percentage of revenue made.
According to its 2014 annual report, the Buffalo brand accounted for 67% of its cookware sales of RM21.61mil for the financial year ended Dec 31, 2014. However, sales from the brand had fallen 40% from the preceding year.
Ni Hsin said on Monday that the termination would not have any effect on the issued and paid-up capital, substantial shareholding, earnings per share, net assets per share and gearing of the group for the financial year ending Dec 31, 2016.
Ni Hsin shares closed unchanged at 30 sen on Monday.