Ni Hsin Makes Foray Into China With Mingkeda Distributorship Agreement

KUALA LUMPUR, Feb 6 (Bernama) -- Ni Hsin Resources Bhd's wholly-owned subsidiary, Pentoli Sdn Bhd, has inked an exclusive distributorship agreement with Mingkeda Group Holding Co Ltd of China with a total secured order worth US$12.2 million (RM54 million) for the initial three years. (US$1 = RM4.42) The 10-year agreement entails the marketing of Pentoli stainless steel multi-ply cookware and stainless steel convex mirror products in China. Ni Hsin Managing Director, Chen Shien Yee, said the agreement was a milestone for the company as it would be able to leverage Mingkeda's vast distribution network and marketing channels. "Ni Hsin's products will be available in the China market in a shorter time frame, rather than setting our own network from scratch," he told reporters at the agreement signing ceremony here, Monday. Chen said the company expected the deal to contribute positively to its net assets and earnings per share for the financial year ending Dec 31, 2017, driven by the growing demand for cookware and convex mirror products in China. "Shenzhen will be the starting point, eventually we will be targeting other cities in Guangdong province and other provinces in the future," he said. Ni Hsin also aims to expand the market for its products particularly inner rice bowl in Japan and Malaysia, pressure cookers in Singapore and Indonesia, and stainless steel convex mirror in the US, Russia and China. "Our plan to penetrate the US and Russia will be done via our Italian subsidiary through various trade fairs this year," he said. Chen said Ni Hsin would also take advantage of the strong US dollar and Japanese yen against the ringgit as 80 per cent of its products were exported. Early this year, Ni Hsin signed a similar agreement with Grayns Malaysia for the distribution of Grayns rice cookers in Malaysia, Singapore, Hong Kong and China. Mingkeda, established in Shenzhen, China in 1991, is involved in marketing home appliances, wholesale and retail, maintenance and installation, warehousing and logistics, property development and management business. Ni Hsin, listed on Bursa Malaysia's Main Market, manufactures a complete range of premium stainless steel multi-ply cookware. -- BERNAMA