This article first appeared in The Edge Financial Daily, on November 24, 2015.

KUALA LUMPUR: Stainless steel cookware manufacturer Ni Hsin Resources Bhd is putting its diversification plans on the back seat after aborting a plan to buy loss-making Helios Photovoltaic Sdn Bhd.

The purchase of Helios would have paved the way for Ni Hsin to diversify into the solar energy industry. Ni Hsin managing director Chen Shien Yee said the group’s primary objective now is to further grow its existing business.

“We will continue to keep an eye open for new opportunities. If we are approached by interested parties, we will evaluate [their offers]. But we feel that now is not a right time to diversify,” he told reporters yesterday after the signing of a shareholders agreement between Ni Hsin and MyAngkasa Holdings Sdn Bhd (MHSB) to venture into marketing and distribution of multiply stainless steel cookware under a new brand named “Pentoli” through a new company to be set up.

Ni Hsin announced on May 27 that the heads of agreement signed between the company and one of Helios’ vendors had lapsed and both parties had no intention to pursue further negotiations in relation to the proposed acquisition.

Chen said the management had decided not to pursue the acquisition of Helios as both parties could not mutually agree on certain conditions, such as the exercise expenses.

The group expects to post better earnings and dividend for the financial year ending Dec 31, 2015 (FY15) compared with FY14. It posted a lower net profit of RM57,000 on revenue of RM40.72 million in FY14, declaring a dividend of 0.5 sen per share.

“We have made RM2.07 million net profit so far (9MFY15) compared to a net loss of RM551,000. Based on our past record, whenever we make a profit, we’ll declare dividend,” he said.

Chen also said once the group’s results improved, it will set a dividend policy to reward its shareholders.

Earlier, Ni Hsin announced that its joint venture (JV) with MHSB’s wholly-owned subsidiary National Cooperative Bhd (Angkasa) is expected to bring in RM10 million in gross sales by FY16.

“We are eyeing 10% revenue growth from our existing cookware, clad metal and convex mirror businesses, on top of the RM10 million gross sales from the JV with Angkasa,” Chen said.

Under the agreement, a JV company known as MyAngkasa Ni Hsin Sdn Bhd will be formed, which sees Ni Hsin holding a 70% stake in the company and MHSB the remaining 30%.

Ni Hsin executive director Datin Ida Suzaini Abdullah said China is the JV’s first targeted market, which it will venture into in January, followed by Europe in the second quarter of next year.