Chairman Statement 2008

FINANCIAL PERFORMANCE
 
FY2008 was another significant year for the Kian Ann Group as we achieved the highest recorded revenue and profit since our IPO in 1996.

The Group achieved a record net profit after tax of $11.2 million, a 14.6% increase against our FY2007 earnings of $9.8 million. Group sales increased by 16.0% to $150.2 million compared with $129.5 million in FY2007.

DIVIDENDS
In view of the healthy bottom line achieved and our commitment to enhance shareholder value, the Board has proposed a final dividend of 0.45 cent per share, subject to shareholders’ approval. Together with the interim dividend of 0.25 cent which was paid out in April 2008, total dividends for FY2008 will amount to 0.70 cent per share or 27.6% of the FY2008 net profit attributable to equity holders of the Company.
EARNINGS PER SHARE
Based on the weighted average number of 404,184,166 shares after the 1-for-2 rights issue in Q1 of FY2008, earnings per share for FY2008 was 2.75 cents compared to 3.32 cents for FY2007, based on 292,065,952 shares.
PROSPECTS FOR YEAR 2009

The Group’s improved performance in FY2008 reflects the dedicated commitment of the entire Kian Ann team in bringing the Group to greater heights.

Sustainability of growth will remain a key business objective. In FY2009, we will build on strong foundation which we have laid in FY2008.

While global economic growth has begun to slow down from the robust levels in FY2008, we are optimistic that the key sectors we serve should continue to show sustainable demand. In particular, we expect continuous demand for our parts from the mining and infrastructure sectors, in the rapidly developing economies of China, India, Indonesia, Middle East, Russia and South America.

Looking ahead, we will continue to focus on leveraging our sourcing abilities and broadening our product offerings. We will also intensify our efforts to retain existing customers, expand our current market share in more than 50 countries that we are distributing to, and tap in other emerging markets in Asia. We will also continue to seek synergistic investment opportunities to complement our existing core business.

Overall, barring unforeseen circumstances, we expect our business prospects in FY2009 to be positive, as we continue to focus on excellent execution of our operations and cost management while leveraging on the economies of scale and our unique core competencies.

ACKNOWLEDGEMENT
Last but not least, I would like to express my sincere gratitude to my fellow Directors for their invaluable contributions to the success of the Group and for ensuring a high standard of corporate governance.

On behalf of the Board, I take this opportunity to thanks our shareholders for their support. Our appreciation also extends to our staff, customers, suppliers and business partners for their contributions to our growth, and we look forward to fostering even stronger relationships.

Low Han Cheong
Chairman

Updated on : 29th January 2008
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