Full Year Results Financial Statement And Related Announcement

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Full Year Financial Statements and Dividend Announcement for the Year Ended 31 December 2009

  Profit & Loss

 Review Of Performance

The Group achieved a strong quarter performance in 4Q2009. Revenue growth by 20.1% to S$50.4 million from S$41.9 million and net profit attributable to shareholders grew by 316.3% to S$6.2 million from S$1.5 million same quarter last year.

For full year result ended 31 December 2009, the Group revenue declined by 4.8% to S$173.7 million from S$182.4 million in the previous financial year. This is mainly due to the weaker performance in 1H2009. The Group's revenue declined amidst the global recession and revenue fell by 19.1% or S$17.5 million compared to 1H2008.

However, the Group's revenue achieved a consecutive quarterly growth in 2H2009, and the Group's revenue also surpassed its 2H2008 performance by 9.7% to S$99.3 million from S$90.4 million as the Group recovers steadily from the recession.

The Group's profit after tax for the full year is comparable to the previous financial year. As the Group raised its interest in a subsidiary, the Group increased profit attributable to its shareholders by 7.1% to S$14.1 million from S$13.1 million in 2008.

Income Statement

Turnover

1) 4Q2009 vs 4Q2008

Data Storage business led the growth at 54.6%, followed by Automotive and Consumer Electronic businesses which grew at 31.6% and 4.2% respectively. Office Automation business decreased by 10.6%.

All geographical segments achieved positive growth except for Malaysia which recorded a decline of 8.8%. Singapore, China, Thailand and Indonesia operations registered growth of 33.9%, 19.6%, 18.2% and 0.2% respectively. Our subsidiary in Vietnam posted the strongest growth of 34.3%, albeit from a low sales base.

2) 2009 vs 2008

Consumer Electronic business remained the top revenue contributor, accounting for 32.6% of Group's turnover, followed by Data Storage and Automotive businesses which contributed 29.2% and 27.4% respectively.

Singapore remained the top revenue contributor, accounting for 34.4%of Group's turnover. China has overtaken Thailand as the second largest revenue contributor accounting for 27.5%, up from 23.6% fuelled by its strong Automotive business growth.

Profit

1) 4Q2009 vs 4Q2008

The Group's gross profit increased by 18.2% to S$13.3 million compared to S$11.3 million for 2008 and gross profit margin remained flat at 26.4% in 2009.

Other operating income increased by 613.9% to S$1.1 million mainly due to the gain on disposal of unquoted investment and net foreign exchange gain of S$0.6 million and S$0.3 million respectively. Correspondingly, the decrease in other operating expenses is mainly due to net foreign exchange loss and fair value adjustment for derivative contracts in 2008.

Profit from operations and net profit attributable to equity holders of the Company have increased by 244.4% and 316.3% respectively.

2) 2009 vs 2008

Despite the strong growth in 2H2009, the Group still reported a lower gross profit in the 2009 at S$44.2 million compared to S$49.2 million last year due to the impact of the lower sales in 1H2009 amidst the economic crisis.

Group's reported operating profit at S$19.1 million, 3.2% higher than S$18.5 million in 2008. This is mainly due to gain on net fair value adjustment for derivative contracts, offset by foreign exchange loss.

Balance Sheet

Current Assets And Current Liabilities

Trade debtors have increased and stocks on the other hand have reduced in tandem with the increased in sales in 4Q2009.

Trade creditors have also increased 22.9% in line with the increase in purchase of raw materials.

Consolidated Cash Flow Statement

The Group generated net operating cash inflow of S$8.8 million in 2009. After netting off cash outflow from investing activities of S$5.7 million and payment of dividends of S$5.0 million, the Group's net cash position (net of borrowings) remained flat at S$19.4 million in 2009. The cash flow from investing activities mainly relate to expansion of China Automotive business production capacity and Thailand rubber molding plant facility, and acquisition of minority interest.

  Commentary

The Group expects the recovery to continue despite the challenging business outlook. As such, the Group will remain prudent and continue to stay focused on cost, risk and resource management to enhance its competitiveness. Barring any unforeseen circumstances, the Group is optimistic that its performance for FY2010 will be better than FY2009.

  Balance Sheet