Chairman's Statement
(continued)
MANAGEMENT DISCUSSION AND ANALYSIS
PERFORMANCE BY DIVISION
The Group’s performance by each Division for the financial year ended 31 December 2014 is as follows:
(i) Cookware Division
The Cookware Division’s revenue for FY2014 declined by RM11.8 million or 35.2% compared to FY2013 to RM21.6 million as
sales to the Group’s key export markets declined sharply during the year. The Group faced a decline in orders for rice cookers and
premium cookware especially from its Japanese, Australian, Thai and Malaysian customers. Japan, being the Group’s biggest export
market, was hit by weak consumer spending after the hike in the Japanese consumption tax from 5% to 8% this year. The Group’s
sales to its local distributor also declined due to a weaker cookware demand during the year. The cookware revenue by geographical
market for the period is as follows:
12 MONTHS ENDED
Increase/
31.12.2014
31.12.2013
(Decrease)
RM’000
RM’000
RM’000
Japan
6,902
10,092
(3,190)
Asia Pacific (exclude Japan)
13,130
21,296
(8,166)
USA & Canada
1,019
1,602
(583)
Europe
556
372
184
21,607
33,362
(11,755)
(ii) Convex Mirror Division
The Convex Mirror Division achieved a
revenue of RM8.9 million for FY2014, which is
an increase of RM1.3 million compared to the
revenue of RM7.5 million achieved in FY2013.
The revenue improved mainly due to higher
export sales to Europe, South Korea and
Thailand, but was partially offset by a decline
in sales to Japan.
(iii) Clad Metal Division
Clad Metal Division’s revenue declined in
FY2014 by RM3.5 million to RM9.7 million
compared to the revenue achieved in FY2013
of RM13.1 million. Clad Metal sales declined
in FY2014 mainly due to a decline in orders
from our customers who are in the premium
cookware industry in Europe, Indonesia and
Japan, in line with the slowdown in demand in
premium cookware experienced by the Group.
Ni Hsin Resources Berhad
(653353-W)
Annual Report
2014
8
