| Revenue |
The Group's revenue in FY 2005 was$18.9m, an increase of 5.8% from the$17.8mFY2004revenue.Thisincrease
was attributed to the steady demand of the company's coated fume exhaust ducts and fi ttings from the electronic industry in spite of the general slow-down in consumer
demand for electronic goods.Besides
Malaysia,overseasrevenuecontributed
23.3% of the Group's revenue as compared to 5.7% in FY 2004. We are confi dent that we will achieve our internal target of overseas revenue contribution of more than 50% of the Group's revenue by FY 2007. |
|
| Distribution |
In FY 2005, we saw a 38.7% drop in
revenue from $3.54m in FY 2004 to
$2.17m in FY 2005. This drop in our
distribution business was due largely to the absence of large projects requiring our critical air fl ow control system valves. In FY 2004, the construction of the Biopolis complex was one such large project. On the brighter side, Linair Technologies secured a $1m maintenance contract for a threeyear period. |
|
| Manufacturing |
| The manufacturing business continued to grow. The revenue increased by 16.9% from $14.3m in FY 2004 to $16.72m in FY 2005. This increase came mainly from overseas sales of our products. |
|
| Gross Profit |
| The gross profi t margin increased from30% in FY 2004 to 39% in FY 2005.This was mainly due to our deliberate trategic shift away from low margin projects such as installation and turnkey projects to higher margin projects such as sale of the company's coated and non-coated fume exhaust ducts and fi ttings. |
|
| Administrative Expenses |
There was a marked increase in
administrative expenses in FY 2005.
Administrative expenses totalled
$2.65m, an increase of 94% from
the FY 2004 amount of $1.36m. The
reasons were increased staff salaries from hiring of additional staff in view of gearing up of operations in China and Taiwan; and additional professional fees and expenses required to comply with regulatory requirements as a Listed Company. |
|
Finance Cost
Finance cost in FY 2005 decreased from
$117,000 in FY 2004 to $77,000 in
FY 2005. This was due to reducing trade
line use as there was suffi cient fund
generated from operating activities and
Initial Public Offering. |
Other Operating Expenses
These expenses increased from $1.1m
in FY 2004 to $1.33m in FY 2005. The
reasons for the increase were increase
in traveling expenses resulting from our
overseas business expansion plans, and
depreciation and rental of warehouse/
dormitory. |
|
