KUALA LUMPUR: Jadi Imaging Bhd is proposing to diversify its existing business to include the distribution and trading of consumer products with a focus on consumer electronics.
In a filing with Bursa Malaysia, Jadi said its current business activities primarily involve manufacturing and selling toner, as well as retailing consumer products, including through e-commerce channels.
Jadi said the sale of toner, cartridges, and ink for printers from its manufacturing and product distribution businesses has historically been the largest revenue contributor. This trend continued until financial year ended March 31, 2022 (FY22), with these products being the major revenue drivers.
However, due to intense global competition, the group’s manufacturing business has incurred segment losses since FY17, and its product distribution business has also faced segment losses since its inception in FY21.
“Taking cognisance of the group’s financial performance, the group has been identifying other business opportunities to expand its revenue stream to mitigate its loss-making position and to reduce dependence on its main source of revenue i.e., from the sale of toner, cartridges and ink for printers,” Jadi said.
To reduce its reliance on its core toner and printer supplies business, Jadi Group expanded into distributing healthcare, personal care products, and consumer electronics in FY21.
Jadi believes that it is now timely for the group to further expand the product distribution business with a focus on consumer electronic business given the positive outlook for the ICT and consumer electronics industries.
“The proposed diversification will allow the group to capitalise on the positive outlook of Malaysia’s consumer electronics industry where it is expected to expand by 4.3% and 4.5% to RM32.16bil and RM33.59bil, in 2024 and 2025, respectively, increasing from RM30.83bil registered in 2023,” it said.
