Ni Hsin Berhad Annual Report 2018

Ni Hsin Resources Berhad (653353-W) Annual Report 2018 32 At NI HSIN, we acknowledge that business operations create sustainability related risks to the economy, environment and society (“EES”). We therefore, recognise our responsibility to respond to these risks and embed sustainable considerations in our business management. Our sustainability efforts are overseen by our Board of Directors who are charged with driving our sustainability agenda. This Statement covers Ni Hsin Resources Berhad (“NHR” or “the Company”) and two of its subsidiaries, namely Ni Hsin Corporation Sdn Bhd (“NHC”) and Ever-Grow Advanced Materials Sdn Bhd (“EGAM”) located in Malaysia, collectively referred to as the “Group”. Our business activities comprise of manufacturing and sale of multi-ply stainless steel cookware, multi-ply stainless steel clad metal and stainless steel convex mirror. This Statement is prepared on a best effort basis and as we progress on our sustainability journey we would look into improving our reporting for the coming years. OUR COMMITMENT TO SUSTAINABILITY Sustainability has been core to the way we do business and an essential element of how we operate. We embrace a holistic approach to sustainability, which is focused on continuous improvement and meaningful positive economic, social and environmental impact through active engagement with both internal and external stakeholders. To ensure the effectiveness of our sustainability efforts a materiality assessment was carried out to identify the sustainability matters that are of priority to our organisation. The material sustainability matters identified are: • Customer Satisfaction • Corporate Governance and Ethical Behaviour • Occupational Health and Safety • Environmental Management Customer Satisfaction Our Mission Statement: It is our commitment to provide exquisite stainless steel products that fulfills our customers’ needs. At NI HSIN we strive to provide reliable, innovative and user-friendly products. We also place high emphasis on ensuring effective communication with our customers and regularly conduct surveys to gather feedback from our customers in respect of our services, delivery, product quality, technical support and cost management. We have an established system of Scorecard Review to monitor customers’ feedback and opinions for NHC. The results are reported at management meetings where issues are deliberated and improvement plans, where necessary, are drawn up and subsequently implemented. The table below shows the results of the survey for the financial year 2017 (“FY2017”) and financial year 2018 (“FY2018”). 2017 2018 Variance Customer satisfaction 76.67% 68.33% (8.34%) Product performance 70.71% 68.10% (2.61%) Staff performance 83.67% 81.00% (2.67%) The results showed that there was a slight drop in all areas of the survey in FY2018 as compared to FY2017. This was attributable to severe competition from our rivals and the limited range of products that we offered to our customers. We view this to be a temporary setback as we are confident that the customers will eventually appreciate the quality of our products and return to buy from us. We also take heed of the feedback and will strive to develop new range of products to meet our customers’ requirements. Corporate Governance & Ethical Behaviour We strongly believe that good corporate governance and ethical practices are essential to building and maintaining a sustainable business, earning the trust and confidence of our customers, suppliers, business partners, employees and shareholders. Corporate Sustainability Statement