(Extracted from Annual Report 2017)
The Group faced a challenging business environment in FY 2017 with weak global economic condition as well as volatile currency movements.
During the year, the Company disposed its Compressed Natural Gas ("CNG") business in Thailand, which allowed the Company to restrategise its financial and capital resources. The CNG business had been facing challenging market conditions such as declining demand for CNG vehicles, rising operational costs and uncertainty of political situation in Thailand and would have required capital injection for growth and development.
Following the disposal, the Group's consolidated revenue from continuing operations increased slightly by $0.02 million from $4.13 million in FY 2016 to $4.15 million in FY 2017 while the Group's gross profit margin decreased due to lower gross profit margin contributed from the Natural Gas business.
The Group has recorded a net profit from continuing operations attributable to shareholders after taking into consideration taxation and non-controlling interests which amounted to $0.19 million in FY 2017 compared to the net profit from continuing operations of $0.08 million in FY 2016.
The Group has net tangible assets of $1.96 million as at 30 June 2017 compared to net tangible assets of $2.06 million as at 30 June 2016.
As announced in September 2015 on the diversification of its existing core business to include the investment in, trading of, and development of residential, commercial, retail and industrial properties within Singapore and overseas, the Group has subsequently acquired two plots of land situated in Pulau Pinang, Malaysia and completed these acquisitions in July 2017.
The Group's businesses are expected to remain challenging in FY 2018 mainly due to pricing pressure from customers and rising operational costs. However, the Group remains focused in enhancing its operational efficiency and monitoring its operating expenses in the face of economic uncertainties, to enhance the profitability of its existing businesses. While the market condition is expected to remain challenging in FY 2018 and likely to impact the Group's existing business performance, Management will continue to focus on restructuring and consolidating its existing businesses, without incurring major capital expenditure.
The Group remains committed to maintain its regime of high standards of corporate governance. It pledges to provide timely and accurate information through announcements and investor relations activities for the benefits of all stakeholders.
On behalf of the Board, I would like to thank all shareholders for their continued loyalty and support to the Company.
We also acknowledge the strong support of our customers, bankers and business associates of our Company in 2017 and we are looking forward to your strong support to help us to achieve a better 2018 and beyond.
Last, but not least, I would like to thank all staff and management for their dedicated service and support and we will strive to improve further.
Mr. Lim Kee Liew @ Victor Lim
Executive Chairman, CEO and
Group Managing Director
27 September 2017