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Q : What are your thoughts on the performance of the Group in FY2008?
A : Although we did not achieve double-digit growth in turnover, we still managed to chalk up a 7.3% increase over FY2007 despite the bad economic conditions. If we discount the loss on foreign exchange and other non-recurring items in FY2008, the Group's profit was at about the same level as in FY2007. I am generally happy with our results in the prevailing challenging times.
Q : How did the distribution and manufacturing business
segments perform in FY2008?
A : In FY2008, our distribution business segment accounted
for approximately 65% and 94% of the Group's turnover
and net profit respectively. Our manufacturing business
segment accounted for 35% and 6% of the Group's
turnover and net profit respectively. Our distribution
business segment exceeded our expectations primarily
due to better results from ASEAN and Oceania.
Q : What factors assisted in the development of both the
business segments?
A : Turnover from our distribution business segment was
primarily driven by stronger tyres sales in both ASEAN
and Oceania. Our relentless efforts to promote our
proprietary brands NEUTON TYRES and ADVANTI
RACING alloy wheels in new geographical markets also
helped to boost our distribution segment. Profitability in
our manufacturing business segment was affected by
high operating costs in the first half of FY2008, as well
as loss on foreign exchange due to volatility in major
global currencies.
Q : The global business environment is becoming more
challenging, so how does the Group maintain its
competitive edge?
A : In my view, network is very important. So far we have
been very successful in opening new geographical
markets and this is our strength. We are able to achieve
wider market share through new business opportunities
to promote our range of tyres, alloy wheels and batteries.
In FY2008, our manufacturing plants have started to
embark on various cost reduction measures to remain
competitive through better production processes and
enhanced technologies.
Q : YHI celebrated its 60th year in 2008. How does it feel
to have come so far?
A: Personally, I am proud that the YHI Group has come a
long way since its humble beginnings as a sole
proprietorship established in 1948. Today, YHI is a
familiar and trusted name in the global arena where "The
World Is Our Market"..
Q : Developing YHI into a global brand name is an ongoing
initiative. What are the plans and strategies
adopted for this?
A : We will intensify our focus to develop our portfolio of
premium and proprietary brands to build the YHI brand
name to gain global recognition and reputation. Our
proprietary brands of ADVANTI RACING alloy wheels,
NEUTON TYRES and NEUTON POWER will continue
to be channelled out into our extensive global network.
For the manufacturing business segment, we have been
actively appointing new distributors in various
geographical markets for our alloy wheels brand portfolio
which includes renowned brands like Enkei, OZ, Konig
and ADVANTI RACING.
Q : In the inaugural Formula One night race in Singapore,
how does it feel to be an Official Partner to Scuderia
Toro Rosso Formula One Team? What are the benefits
of such partnership?
A : I feel very proud as a Singaporean especially when a
home-grown Singapore Company has the opportunity
to showcase its alloy wheels in a world class racing
event. Since we became an Official Partner to Scuderio
Toro Rosso Formula One Team, the branding image of
both YHI and ADVANTI RACING alloy wheels have been
greatly enhanced. We have received many enquiries
and orders from customers all over the world eager to
market our ADVANTI RACING alloy wheels.
Q : The net profit for FY2008 was lower than in FY2007,
what can the shareholders expect in terms of dividends
for FY2008?
A : Since our listing in year 2003, we have been rewarding
our shareholders with good dividend payments. Although
the business environment is getting more challenging,
YHI will continue to reward all supportive shareholders.
The proposed dividend payment of approximately S$5.8
million will represent approximately 30% of our net profit
after tax. This payout % is similar to FY2007.
In closing, I would like to take this opportunity to thank our
Board of Directors for their guidance and to the Management
and staff of the Group for their dedication, commitment and
contribution to the Group. To our stakeholders - our
shareholders, customers, suppliers and business associates
- my sincere appreciation for your support and confidence.
I look forward to meeting you at our coming shareholders'
meeting.
Yours sincerely,
Tay Tian Hoe, Richard
Group Managing Director