SELANGOR, 20 August 2019 – Jadi Imaging Holdings Bhd (“Jadi”) today announced it had successfully completed the Subscription Agreement signed on 13 August 2019 with Static Control Holdings Limited (“SCC”), a wholly-owned subsidiary of Shenzhen-listed Ninestar Corporation (“Ninestar”) to invest in Jadi and to establish itself as a strategic investor. Ninestar is a global leader in the provision of printing and imaging products, output solutions and managed print services, which owns Lexmark, a globally renowned printer brand, and Pantum, a leading printer brand in China.
SCC has taken up a strategic stake in Jadi and emerged as a substantial shareholder, holding approximately 9.09% of the enlarged equity interest in the Company and will have a board representation to contribute to closer business cooperation between the companies. Together with the share subscription, Jadi and SCC simultaneously signed a supply agreement that encompasses the following key areas:
- Committed buying quantity of chemical toners formulated and manufactured by Jadi for a period of 3 years commencing April 2020.
- Supply opportunities of conventional toners formulated and manufactured by Jadi for Ninestar and its subsidiaries including SCC.
The Subscription Agreement and Supply Agreement are important milestones for a long- term strategic collaboration between
Jadi and Ninestar
and its subsidiaries. It provides a platform for both parties
to leverage on each other’s
technical knowledge, expertise and experience for expansion and growth in the key
areas. Jadi’s Board
is confident that
the investment from this strategic collaboration will provide
opportunities to diversify into many exciting new areas, in particular, the
possibilities of cooperating further in OEM contracts and developing new business streams
with less competition and higher profit margin.
The partnership with Ninestar and its subsidiaries will see Jadi venturing into a new business direction that is in line with its transformation exercise since Q1 of 2016. Jadi envisages this partnership to provide early access to new cartridge configurations in the aftermarket industry, further enhancing Jadi’s R&D in formulating and developing high quality conventional and chemical toners that match the global leader’s product and market requirements.
As the global leader in the aftermarket printing and imaging industry, Ninestar’s 2018 fiscal year saw an overall net profit of USD93.73 million, an increase of 153.89% from the previous year. The first quarter of 2019 has already shown a net profit growth compared to the previous quarter of 439.48%, along with an increase of 1.70% for its sales revenue. Ninestar’s toner consumption of conventional toners is approximately 8,000MT on an annual basis – Jadi’s conventional toner total capacity is 6000MT per year. This ideally positions Jadi with the access to market by becoming the first toner manufacturer that Ninestar has participated in an equity stake and preferred supplier of conventional and chemical toners.
Jadi’s Board is pleased to welcome SCC as its strategic shareholder in the Company as a new milestone for the Company’s growth. Jadi’s Board is also proud that Ninestar has chosen Jadi as its trusted partner to be a part of a larger supply chain network to secure its footprint in toner manufacturing. With a financially strong partner which is also the global leader in the provision of printing and imaging products, output solutions and managed print services, Jadi’s Board is highly optimistic of the synergy that both parties can contribute in exploring existing and new business opportunities.
About Jadi Imaging Holdings Bhd
Jadi Imaging Holdings Bhd (“Jadi”) is principally involved in the development, formulation, and manufacturing of toners for laser printers, photocopiers, and multi-function office equipment. With 26 years of process innovation and research and development in the field of toner, Jadi has established itself as a leading toner manufacturer in the industry. Besides toner products, it also manufactures styrene acrylate toner resin which is a primary raw material in the production of toner. For more information, please visit https://www.jadi.com.my
About Ninestar Corporation & Static Control Holdings Limited
Static Control Holdings Limited (“SCC”) was incorporated under the laws of Hong Kong on 22 June 2015. SCC is principally involved in investment holding and indirectly holds 100% of the shareholding of Static Control Components, Inc. (“SCC USA”). Headquartered in Sanford, North Carolina, United States of America, SCC USA has over 25 years of experience in the printing and imaging industry with an extensive global distribution network. For more information, please visit https://www.scc-inc.com
SCC is a wholly-owned subsidiary of Ninestar Corporation (“Ninestar”) which is publicly
listed on the Shenzhen Stock Exchange with a market capitalization of
approximately RMB22.65 billion. Ninestar and its subsidiaries are also a prominent global
leader in the provision of printing and imaging products, output solutions and managed print
services. It owns Lexmark, a globally renowned
printer brand, and Pantum, a leading printer
brand in China. Ninestar
has approximately 16,000
employees worldwide and an annual
RMB22 billion, with products available in more than 150 countries. For more information, please visit www.ninestargroup.com
For more information, please contact:
Executive Director / Group Head of Sales & Marketing
Senior Public Relations Executive