Chairman's Message
2010 HIGHLIGHTS
In 2010, we were finally able to shake off the impacts of the global economic recession that affected the world economy in 2008 and first half of 2009. The Group was able to sustain the revenue growth that commenced in the second half of 2009.
For the year ended 31 December 2010, the Group's revenue was RMB1.2 billion, a 36% increase over RMB857 million in 2009. Net profit was RMB81.5 million compared to RMB48.3 million the year before, an increase of 69%. However, performance of our three major business segments varies.
The aluminium foil rolling business lifted the performance of the Group, with increased revenue and profit. Revenue was RMB982 million compared to RMB645 million in 2009, an increase of 52%. The full year net profit rose to RMB86.6 million from RMB36.7 million in 2009, an increase of 136%.
The gravure printing business remained challenging. Due to market consolidation and competition, both revenue and profit margin declined. Revenue was RMB165 million compared to RMB191 million in 2009, a decrease of 14%. Net profit dropped to RMB18.8 million from last year's RMB35.6 million, a decline of 47%.
The aluminium foil lamination business remained a small part of the Group's business. Revenue was RMB18 million compared to RMB21 million the year before, a decrease of 13%. This segment incurred a loss of RMB0.6 million in 2010 compared to a profit of RMB0.5 million in 2009.
DIVESTMENT
On 25 Oct 2010, the Company announced to the Singapore Stock Exchange that it has through its wholly-owned subsidiary, Shanghai Asia Company Pte Ltd, signed conditional sale and purchase agreements to divest all of its equity interests in its Chinese subsidiaries and its Chinese investments, representing substantially all of the assets, liabilities and business of the Group.
The Company is currently preparing a circular to Shareholders setting out information relating to, or in connection with, the divestment, together with the recommendations of the Independent Financial Advisor and the Board of Directors. A notice of the extraordinary meeting will be dispatched to Shareholders shortly.
DIVIDEND
The Board of Directors has recommended a final tax-exempt cash dividend of 1.00 Singapore cent per ordinary share in respect of the financial year ended 31 December 2010, subject to the approval of shareholders at the forthcoming Annual General Meeting. Upon approval, the dividend will be paid on 31 May 2011.
CHANGES TO THE BOARD
On behalf of the Board of Directors, I would like to express our sincere appreciation for the dedication and contribution of our former Chairman and Director, Mr John David Cambridge who resigned from the Board on medical grounds.
I would also like to welcome to the Board of Directors, Mr Siow Chee Keong.
ACKNOWLEDGEMENT
On behalf of the Board of Directors, I would also like to extend our gratitude to all our valuable shareholders, customers, bankers and business associates for their continuous support, as well as to our dedicated employees for their commitment and efforts in meeting the challenges faced during the year.
Tay Joo Soon
Chairman