Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
The principal historical activities of our Group involve the manufacture and sale of a wide range of customised precision elastomeric and polymeric components which are used in a variety of industries principally in office automation, lifestyle products, industrial application, consumer electronics and automotive industries.
Our elastomeric and polymeric component production capabilities range from material formulation and compounding as well as molding to secondary process including polymeric die-cutting, precision turning and precision machining of metallic components. Our production facilities and sales offices are located in Singapore, Johor, Malaysia, Batam, Indonesia, and Suzhou, PRC. Our customers include multinational corporations with presence in South East Asia, North and East Asia, the USA and Europe.
The revenue of the Group for 1H2013 of $10.63 million was 16.0% lower than $12.64 million in 1H2012. Revenue for a subsidiary in Malaysia recorded a substantial decrease in revenue due to the decline in demand of its key customers.
Gross profit declined by $0.95 million or 22.0% to $3.36 million in 1H2013 from $4.31 million in 1H2012. The overall gross profit margin for 1H2013 was 31.6% compared to 34.1% for 1H2012. The lower margin in 1H2013 was mainly due to rising cost for materials and labour cost of the two business units due to the hike in minimum wages in PRC, Indonesia and Malaysia.
Distribution costs and administrative expenses increased by 17.4% in 1H2013 to $4.30 million from $3.67 million in 1H2012 due to increase in legal fees by $$0.22 million, staff cost by $0.40 million and software maintenance by $0.04 million. Finance costs increased by $6,000 to $17,000 in 1H2013 mainly for the interest incurred for the revolving credit facilities of a subsidiary in Malaysia and the hire purchase interest for motor vehicles.
The Group recorded the other charges of $0.16 million in 1H2013. It comprised of the $0.13 million stock obsolescene, $0.02 million provision for doubtful debts and $7,000 plant and equipment written off.
Other credits in 1H2013 amounted to $0.20 million compared to $0.03 million in 1H2012 was mainly due to foreign exchange gain of $0.12 million, Government Incentive and SME Cash Grant of $0.07 million. The foreign exchange gain was due to the appreciation of US Dollar against the Singapore Dollar in 1H2013.
For the first half of 2013, the Group registered a loss before income tax of $0.90 million compared to the profit before income tax of $0.59 million in 1H2012. The Group recorded a loss after tax of $1.12 million in 1H2013 compared to a net profit of $16,000 in 1H2012.
The Group's non-current assets increased by $0.07 million to $4.12 million as at 30 June 2013 compared to non-current assets of $4.05 million as at 31 December 2012, due to the addition of new plant and equipment of $0.48 million and the foreign currency translation gain in overseas operations of $0.06 million offset by depreciation and amortisation of plant and equipment of $0.53 million.
On 29 January 2013, the Group subscribed for 150,000 shares at an aggregate subscribtion price of MYR0.15 million for the acquisition of a 30% shareholding interest in a Malaysian developer.
The Group's current assets amounted to $31.81 million as at 30 June 2013, a decrease of $2.0 million compared to 31 December 2012.
Inventories and trade receivables remained relative stable at $2.24 million and $6.54 million respectively. Cash and cash equivalents decreased by $2.03 million mainly due to the payment for income tax of $0.51 million, staff cost comprised mainly of bonus, directors' fees and the payment of the FY2012 final dividend of $0.3 million in 1H2013.
Total liabilities as at 30 June 2013 was $4.40 million, a decline of $0.68 million from $5.08 million as at 31 December 2012.
Trade and related payables declined by $0.77 million due to the decrease of purchase orders for operational usage. The lower income tax recorded as at 30 June 2013 was due to over payment by a subsidiary in Malaysia.
Approximately $0.66 million under non-current liabilities was for deferred tax and the financial lease liabilities which comprised of the outstanding amount from the hire purchase of motor vehicles as at 30 June 2013.
The equity decreased by $1.24 million to $31.54 million as at 30 June 2013 from $32.78 million as at 31 December 2012. The Group recorded lower foreign currency translation reserve loss due to the appreciation of the USD and RMB against SGD.
The manufacturing business units continue to face rising cost pressure mainly due to the hike in minimum wages in the respective countries of operation in PRC, Indonesia and Malaysia. In addition, the recent downward trend in business activities is likely going to continue when the manufacturing partners of a few key customers of the elastomeric and polymeric group move businesses away from its subisdiaries in Batam and PRC. To mitigate the risk of futher decline, the group is concentrating on diversifation away from its traditional businesses to other industries.
The Company's will continue to focus on the property development business and it is in discussions with various parties to collaborate on projects in Malaysia and Australia.
Meanwhile, the Group will continue to explore other properties related opportunities which can enhance long term shareholder value. These include geographical expansion, mergers and acquisitions, divestment and partnering with long term strategic investor(s) who can add depth and breadth to the Group's existing business portfolio.