By SULHI KHALID / Pic By jadi.com.my

NINESTAR Corp’s wholly owned subsidiary, Static Control Holdings Ltd, has emerged as substantial shareholders of Jadi Imaging Holdings Bhd after acquiring a 9.09% stake in the company.

According to the manufacturer of toners for laser printers and photocopiers, the China-listed Static Control will have a board representation to contribute to closer business cooperation between the companies.

Through the share subscription, Jadi Imaging and Static Control simultaneously signed a supply agreement where the latter committed to buying a quantity of chemical toners manufactured by Jadi Imaging for a period of three years beginning April 2020.

The agreement also allows Jadi Imaging to supply conventional toners to Ninestar and its subsidiaries.

“Jadi Imaging’s board is confident the investment from this strategic collaboration will provide opportunities to diversify into many exciting new areas — in particular, the possibilities of cooperating further in original equipment manufacturer contracts and developing new business streams with less competition and higher profit margins,” it said in a statement yesterday.

For the record, Ninestar’s toner consumption of conventional toners is at 8,000 metric tonnes on an annual basis, while Jadi Imaging’s conventional toner total capacity is 6,000 metric tonnes per year.

“This ideally positions Jadi Imaging with access to the market by becoming the first toner manufacturer that Ninestar has participated in an equity stake and preferred supplier of conventional and chemical toners,” it said.

In the meantime, the company envisages the partnership to provide early access to new cartridge configurations in the aftermarket industry, further enhancing Jadi Imaging’s research and development in formulating and developing high quality conventional and chemical toners that match the global leader’s product and market requirements.

Jadi Imaging ended its financial year 2019 on a better note by narrowing its net loss to RM2.92 million, while the company’s revenue dropped 7.3% to RM11.75 in its fourth quarter.

On its outlook, the group has embarked on a transformation exercise by moving downstream to distribute its monochrome bulk toners, colour bulk toners and finished toner cartridges to retail buyers and small distributers.

“Embracing change for growth, the group is tapping into e-commerce platforms across all three distribution hubs in Malaysia, China and the UK to channel directly to these retail buyers and small distributors,” it said.

Jadi Imaging’s share price closed one sen lower yesterday to 5.5 sen, valuing the company at RM51 million.

Jadi Imaging is principally involved in the development, formulation and manufacturing of toners for laser printers, photocopiers and multi-function office equipment.