Ni Hsin Berhad Annual Report 2017

Ni Hsin Resources Berhad (653353-W) Annual Report 2017 6 Chairman's Statement Dear Valued Shareholders, On behalf of the Board of Directors, I ampleased to present you the annual report of Ni Hsin Resources Berhad (“Ni Hsin” or “the Group”) for the financial year ended 31 December 2017 (“FY2017”). TheGroup recorded total revenue of RM39.6million in FY2017, RM1.8 million higher compared with financial year ended 31 December 2016 (“FY2016”). Gross profit margin improved by 2.2% over that of FY2016. The Group achieved a Profit After Taxation (“PAT”) of RM2.07 million in FY2017 compared to a Loss After Taxation (“LAT”) of RM5.02 million recorded in FY2016. The LAT incurred in FY2016 was mainly due to the recognition of the Employees’ Share Option Scheme (“ESOS”) fair value of RM5.03 milion. Better profit margins for cookware and clad metal and net gains in fair value of quoted shares and disposal of quoted shares of RM1.56 million and RM0.26 million respectively in FY2017 also contributed to the improved results in FY2017. Free cash flow improved by RM3.7 million in FY2017. The road ahead remains challenging but the Management is confident the Group’s business will remain resilient and continue to improve going forward. We are proud of the achievements we have made thus far: • We are a leading manufacturer of Premium Stainless Steel Multi-ply Cookware, Stainless Steel Convex Mirrors and other stainless steel related products in Asia and we aspire to be recognised worldwide. • We attained ISO 9001 certification from S.G.S. in 1999. • We are one of the few factories outside Japan to receive the accreditation for SG in 1992 and SG (CH-IH) in 2002. • In 2006 we were awarded the Certificate in Quality Assurance System for our Pressure Equipment from TUV Industrie Service GmbH, Germany. The cooperation with Mingkeda Holding Co. Ltd. Shenzhen, China for the distribution of PENTOLI brand cookware products and Ni Hsin’s stainless steel convex mirrors in China is progressing well and both parties are diligently working on the marketing platforms, both conventional and digital, to reach out to the consumers in China. The Group will continue to seek strategic partners not only to expand its current business but also in respect of appropriate diversification business. Acknowledgement and Appreciation On behalf of the Board of Directors, I wish to extend my appreciation to the management and staff of our Group for their contribution, dedication and commitment. I would like to take this opportunity to express my heartiest gratitude to our previous Chairman, En Rizvi Bin Abdul Halim, for his excellent contribution to the Group. The Board of Directors, management and staff of Ni Hsin are deeply saddened by the demised of our Managing Director, Mr. Chen Shien Yee, in October 2017 and extend our deepest condolences to his family and loved ones. His untimely demise is a great loss to us in terms of leadership and guidance in our business operations. Our gratitude and sincere thanks is also extended to our valued customers, bankers, business associates, suppliers and regulatory bodies for their invaluable support, assistance and confidence in the Group. Lastly, I would also like to thank my fellow Board members for their assistance, advice and guidance. SOFIYAN BIN YAHYA Independent Non-Executive Chairman