The Division recorded an increase of 30 % in Turnover over the last financial year 2010. The increase was largely attributed to strong local demand supported by buoyant construction activities in the country. The Vietnam operation also recorded an increase in sales as the Olympic Cable brand was gaining acceptance in the local market. Although the sales volume had increased, the profit increase was not in the same magnitude, reflecting the competitive nature of the industry, where margins had declined from the last financial year.

For the coming financial year 2012, we anticipate that the strong construction activities will further enhance our Turnover. New capacity from the recent expansion in the factory and machineries will also come into effect in the second quarter of financial year 2012. However, the loss of sales from a local power utility company will have an impact on financial performance. The company is trying to mitigate this by diversification into markets with new products, particularly for the oil and gas sector. Further improvement of Turnover is also expected from the Vietnam operations. The competitive market also compels us to look into all aspects of efficiency improvement.

The current strong construction activities in the housing and oil and gas sector will provide the strong demand for the industry. Barring any adverse slowdown in these sectors, we are confident of sustaining our competitive edge and contribute positively to the Division and Group.

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