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Extracted from the Annual Report 2007

Dear Shareholders,

Last year, the Company foretold a major revamp in our business operations and I am very pleased to announce that in FY2007, our plans have materialized successfully. Besides changes in our business operations, we have also made alterations within the Company itself with the introduction of a new management, which we believe will lead the company to greater heights.

For FY2007, the Group recorded a net loss of $98.3 million as compared to $4.7 million in FY2006. While this may seem a ghastly figure at first glance, its severity is lightened in retrospect. After all, the major reason behind this loss is attributed to the one time write off of discontinued operations in our distribution of Surface Mount Technology ("SMT") equipment business which registered $78.1 million. Looking on the bright side, short term borrowings have subsided dramatically from $103.5 million to $19.8 million and revenue has achieved a respectable number of $21.9 million. Gross profit has also registered a decent 18% despite increased labour and material cost.

The completion of North Asia Strategic Holdings Limited acquisition of the Group's North Asia and India distribution business not only provided substantial funds to reduce our borrowings, it also allows the Group to harness existing businesses and identify new opportunities in the electronics space.

I am also equally pleased to announce the appointment of our new Chief Executive Officer ("CEO") – Mr Eric Lim Kheng Joo in November 2006. He has consistently displayed excellent leadership and management skills not only in the aspects of financial administration but also in other areas of businesses such as providing supporting integrated solutions to complement key products in strategic planning and driving integrations within the Group. Together with a new CEO, the company has also appointed Mr Ho Sing as an Advisor to the Board; whose management expertise and corporate strategy planning experience will be a great asset to the company.

The Group's successful acquisition of an 80% interest in DBG Holdings Limited ("DBG") in August 2007, is part of the Group's strategy to acquire synergistic businesses with proven track records and positive cash flows. DBG Group has participated in many strategic alliances with diverse local electronic manufacturers, and thus, we would be able to leverage on DBG Group's manufacturing expertise, resources and relationships with customers and suppliers. Furthermore, Fine Pulse Sdn Bhd (the Group's Malaysia subsidiary) will be able to reap synergistic benefits through the sharing of technological expertise and processes and offer manufacturing facilities in China to its existing customer base.

This year, the Group will be molding a new subsidiary – Autron Investment Co Ltd, to be the new strategic arm of property development and construction to tap in on the construction and development boom in South East Asia.

FY2008 is a year I am zealously looking forward to with the full divestment of the old distribution business coupled with the new foray into our new businesses. The new management has shown great vision and I am confident the Group is now fully armored and armed to take on newer challenges and reap greater fruits. Finally, on behalf of our Board of Directors, I would like to thank our people, shareholders, customers and business associates for all their support in the past year.

Professor Hang Chang Chieh
Non-Executive Chairman