Ni Hsin Berhad Annual Report 2018

Ni Hsin Resources Berhad (653353-W) Annual Report 2018 6 Chairman's Statement Dear Valued Shareholders, On behalf of the Board of Directors, I am pleased to present you the annual report of Ni Hsin Resources Berhad (“Ni Hsin” or “the Group”) for the financial year ended 31 December 2018 (“FY2018”). FY2018 has been a challenging year with the turmoil in global economy due to the trade war between USA and China and weak consumer confidence. The Group recorded total revenue of RM33.2 million in FY2018, RM6.4 million lower compared with financial year ended 31 December 2017 (“FY2017”). Gross profit margin was lower by 6.4% from that of FY2017. Profit After Taxation (“PAT”) in FY2018 was RM2.17 million, marginally higher than in FY2017. FY2019 is expected to continue to be challenging but the Management is confident the Group’s business will remain resilient and will leverage on our achievements and experience in the industry to improve our business performance. We are committed to high product quality, innovative designs, prompt delivery and efficient production which gives us a competitive advantage over new players. We are confident that the market will recognise and appreciate our merits. In fact, we are already witnessing it as some previous customers have returned to place orders. Our largest market is Japan, known for their stringent requirements for quality, innovation and safety. Moving forward the Group has plans to diversify into the distribution of other related products, namely food products and road safety equipment to complement our cookware and convex mirror respectively. In Appreciation On behalf of the Board of Directors, I wish to extend our appreciation to the Management and Staff for their valuable contribution, dedication and commitment which are essential to the success of the Group. 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