INIX Technologies Holdings Bhd today ‘paraded’ a representative of two Hong Kong buyers who turned up at L&S Gloves Sdn Bhd (L&S Glove) in Beranang, Selangor to negotiate new orders for 240 million boxes of pure nitrile gloves within the next 24 months.
The price per box is expected to be set in the US$9 region. Two weeks ago, Inix completed the acquisition of a 51% stake in L&S Glove two weeks ago, making the glove maker the former’s official glove business division.
The visiting Hong Kong representative, Hoo Ching Han, who made a surprise visit to understand progress of L&S Glove production lines later conducted an in-depth negotiations with the management of Inix’s glove division.
Hoo is appointed by Hong Kong’s Sunrise Progression Global Holdings Ltd and Seng Hoi Ltd to negotiate with Inix in relation to the ordering of pure nitrile medical gloves.
According to the mandate issued by Sunrise and Seng Hoi, both companies intend to sign a contract with Inix to order at least 240 million boxes of pure nitrile medical gloves over the next two years from March 1, 2021 to Feb 28, 2023.
“If these orders are accepted and filled, the two companies which I represent would also like to invest through Inix another 20 production lines for nitrile medical gloves to fill our orders exclusively,” Hoo pointed out.
“We would like Inix to be our associate company and this would ensure continuous supply of nitrite gloves to our group.”
Sunrise and Seng Hoi are sister companies. Both not only cooperate in the oil and gas (O&G) trading business in Hong Kong but are also listed companies with strong financial backing.
The core business of Seng Hoi is the import and export of energy apparel and electrical appliances, crude oil, refined oil, fuel oil and natural gas with operations in Hong Kong, major cities in China, Canada, Japan and Russia.
Currently, L&S Glove has two existing production lines which can contribute profit to Inix immediately. The glove maker is in the midst of adding 12 additional production lines which are expected to be completed by August this year.
Among them, six production lines will produce pure nitrile medical gloves. Based on the annual production capacity of 1.4 billion gloves, it is expected to yield Inix an annual revenue of at least RM300 mil.
At 2.55pm, Inix is up 0.5 sen or 1.59% to 32 sen with 6.89 million shares traded, thus valuing the company at RM149 mil. – Feb 8, 2021