SERI KEMBANGAN: Ni Hsin Resources Bhd is eyeing to enter the China market with its in-house cookware brand, Pentoli, in a bid to broaden its revenue source.
Managing director Chen Shien Yee reckoned that Ni Hsin would be able to grow its topline by more than 10% this year, especially with renewed manufacturing contracts and the growth potential in new markets.
“Recently, we went to meet with all our customers and even managed to regain new contracts from lost customers,” Chen said after a signing ceremony yesterday.
He said the company would not meet its sales target for 2016 because of several contract terminations.
“This year, we believe the company would be able to achieve higher sales than what we saw in 2015,” he added.
For the first nine months ended Sept 30, 2016, Ni Hsin posted a net loss of RM4.89mil compared to a net profit of RM2.1mil a year earlier. Revenue for the period fell by 32% to RM27.3mil from RM36.1mil previously.
“This year would be the year for Ni Hsin to start distributing our products in China. We are currently in talks with a big distributor in China and hope to close in soon,” said Ni Hsin’s subsidiary Inoco Resources Sdn Bhd managing director Khoo Chee Kong.
Ni Hsin also benefits from a stronger US dollar, as 90% of its revenue is from the export markets mainly to Japan, South Korea, Taiwan and Europe.
Its cookware products contribute about 50% of its revenue, while the remainder is from clad metal and convex mirrors.
The company’s in-house brand Pentoli for stainless steel cookware products was introduced in late 2015 through a joint-venture partnership with MyAngkasa Holdings Sdn Bhd.
At the signing ceremony yesterday, Inoco entered into an exclusive distribution agreement to distribute the world’s first starch-reducing rice cooker. The agreement was signed with Grayns Malaysia Sdn Bhd.
Under the agreement, Ni Hsin will have the rights to distribute the Grayns rice cooker in Malaysia, Singapore, Hong Kong and China for five years.
The company said the product was the first rice cooker in the world that could remove sugar in rice.
“We have obtained the necessary approvals to distribute Grayns rice cooker in Malaysia and Singapore. Our target for now is to sell 2,000 Grayns rice cookers a month,” said Khoo, adding that the selling price for the rice cooker would be around RM2,288 a unit.