Chairman's Statement

Extracted from the Annual Report 2009

Dear Valued Shareholders,

I am pleased to present to you the Annual Report for the financial year ended 30 June 2009 ("FY2009"). In FY2009, Autron's meticulous investment practices have led to an improvement in revenue from 1H2009 to 2H2009 despite the financial crisis in the beginning of FY2009.

In FY2009, the Group's revenue jumped to $373.2million, a remarkable improvement of 49% compared to $250.4million in financial year 2008 ("FY2008"). This commendable performance is mainly attributed to our newly acquired entity, Oval Residences Sdn. Bhd. ("ORSB"). Situated in a prime location of Kuala Lumpur City Center, ORSB boasts of high-end residential units with modern façade and complete with exquisite finishing that promises high returns. However, other income dropped to $1.8million in FY2009 due to a once-off gain on the disposal of subsidiaries and investments in the last financial period. This, together with impairment of goodwill and higher foreign exchange loss, resulted in a net loss of $8.3million in FY2009 from a net profit of $11.5million in FY2008.

Developments

During the financial year, the Group's wholly owned subsidiary, Simfoni Simmetrik Sdn. Bhd. fully acquired 100% equity interest in ORSB. Upon the acquisition, ORSB became a subsidiary of the Group. The acquisition was part of the Group's foresight as an opportunistic investment with its high resale value.

The Group acquired ORBS when it held one residential tower, which was in the midst of construction at the time of acquisition. Presently, ORSB has completed the entire project and has successfully sold all the residential units, recording revenue of $156.2million. With cost of construction standing at $144.2million, ORSB contributed a substantial amount of $12.0million gross profit to Autron's FY2009 results. This acquisition was proven strategic in this financial crisis and a testament to the Group's investment foresight.

Besides this investment, the Group has also entered into an agreement with IFS Venture Private Limited ("IFS") to acquire the 25% stake in Autron Investment Co. Ltd ("Autron Investment") for a total consideration of RM16million ($5.6million). Autron Investment was set up to be the strategic arm of property development and construction in the South East Asia market. It started operations by collaborating with Middle Eastern and Malaysian investors to form Swan Symphony Sdn. Bhd. ("SSSB"). This is in line with the shareholders agreement with IFS, where IFS shall be entitled to its fair share of the profit from the disposal of SSSB to Majestic Masterpiece Sdn. Bhd., which was completed on 23 July 2008.

Further enhancing the Group's strategic direction of investing good assets through wise and dynamic investment decisions, Autron entered into a joint venture investment with Nesseur Investment Limited ("Nesseur") to purchase a piece of freehold land at RM14million ($4.9million) in this financial year. It is held under Mukim of Rawang, District of Gombak, State of Selangor Darul Ehsan measuring 27,319 square metre ("Rawang Land"). A market valuation conducted on 28 August 2008 reported Rawang Land to be valued at RM20million ($7million).

Another investment made was on 18 July 2008, when the Group announced the completion of all the conditions for the acquisition of ICON@Tun Razak. Project ICON consists of a Grade A office tower - The ICON@Tun Razak with total net floor area of 263,435 square feet for purchase consideration of approximately RM237.1million ($75.4million). Most importantly, the property is strategically located in Central Business District ("CBD") located near PETRONAS Twin Towers in Kuala Lumpur City Centre ("KLCC"). The expected completion date for The ICON@Tun Razak is end of year 2009. The building will be constructed by Mah Sing Group Berhad, a reputable property developer listed on the Main Board of Bursa Malaysia Securities Berhad, with a market capitalisation exceeding RM1.1billion ($0.4billion). A total investment of $4.2million was placed for this real estate project and all the terms and conditions for the investment have been completed.

Forward Plans

For the year ahead, the Group will look into further streamlining its assets, especially its non-profitable operating assets, including the subsidiary Fine Pulse Sdn. Bhd. Prospective sale of certain profitable asset and the possible public listing of one of its subsidiaries are being considered too. Simultaneously, the Group has also identified potential for new equity to fund the Group's working capital. In this difficult period of financial crisis, the Group is sourcing for ways to reduce total overheads within operating business, as well as, methods to ensure cash inflow. The Group is confident to tackle the challenges ahead.

Lastly, I would like to extend my sincere appreciation, on behalf of the Board of Directors, to our committed shareholders, employees, business associates and customers for all that they have contributed to Autron in FY2009.

Professor Hang Chang Chieh
Chairman of the Board