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Ni Hsin Resources Berhad
(653353-W)
Annual Report
2016
10
Management Discussion And Analysis
(continued)
Sales Performance by Division
The Group’s performance by each Division for the financial year ended 31 December 2016 is as follows:
(i)
Cookware
The Cookware Division’s revenue for FY2016 decreased by RM6.64 million or 25.6% to RM19.28 million compared with the
revenue achieved in FY2015 of RM25.92 million, as sales to the Group’s key export markets declined during FY2016. The Group
experienced lower sales of premium cookware to Japan which is the Group’s major export market. Sales to the Asia Pacific
countries (excluding Japan), Europe, USA and Canada also declined in FY2016. The cookware revenue by geographical market
for the period is as follows:
FY2016
RM’000
FY2015
RM’000
Increase/
(Decrease)
RM’000
%
Japan
7,096
9,113
(2,017)
(22.1%)
Asia Pacific (excluding Japan)
10,117
14,247
(4,130)
(29.0%)
USA & Canada
1,665
1,978
(313)
(15.9%)
Europe
398
577
(179)
(31.0%)
19,276
25,915
(6,639)
(25.6%)
(ii) Convex Mirror
The Convex Mirror Division achieved a revenue of RM11.13 million for FY2016, an increase of RM1.62 million compared with the
revenue of RM9.51 million achieved in FY2015. The increase in revenue is attributed to higher export sales to Europe and other
Asia Pacific countries.
FY2016
RM’000
FY2015
RM’000
Increase/
(Decrease)
RM’000
%
Japan
3,953
3,904
49
1.2%
Asia Pacific (excluding Japan)
4,440
3,595
845
23.5%
USA & Canada
292
218
74
33.9%
Europe
2,445
1,793
652
36.4%
11,130
9,510
1,620
17.0%
(iii) Clad Metal
Clad Metal Division’s revenue declined in FY2016 by RM3.10 million to RM7.41 million compared with the revenue achieved in
FY2015 of RM10.51 million. Sales of clad metal declined in FY2016 mainly due to decreased orders from customers in Europe,
USA and Canada, but was partially offset by increased orders from customers in Japan and Thailand. We faced stiff competition
in Europe in respect of price and variant materials offered by competitors. Steadfast is the belief in the quality of our products and
principles Ni Hsin did not reciprocate to the competition.
FY2016
RM’000
FY2015
RM’000
Increase/
(Decrease)
RM’000
%
Japan
2,944
1,995
949
47.6%
Asia Pacific (excluding Japan)
1,714
1,859
(145)
(7.8%)
USA & Canada
335
961
(626)
(65.1%)
Europe
2,418
5,696
(3,278)
(57.5%)
7,411
10,511
(3,100)
(29.4%)