Download - Texchem Resources Bhd


1 Νοε 2013 (πριν από 4 χρόνια και 8 μήνες)

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Dear Valued Shareholders,
It has not been smooth sailing for Texchem Resources
Berhad (“Group”) since the start of the global
financial crisis in 2008. We anticipated recovery from
the downturn in 2011, but many unfavourable external
factors have combined to hinder this and overall
Group performance has been impacted. However,
despite the circumstances, for FY2011 the Group
achieved revenue of RM1.08 billion - a 2% increase
on the performance of the previous financial year - and
recorded a pre-tax profit of RM4.3 million.
The US has experienced chronic high unemployment
and a weak economy, while the Euro zone sovereign
debt crisis has triggered austerity measures throughout
Europe. Both these situations have in turn affected
global demand across a wide range of sectors.
High crude oil prices - a result of political turmoil in
the Middle East and North Africa – have translated
into higher operational costs. Against this backdrop,
volatile and unfavourable foreign exchange rates have
affected the Polymer Engineering Division and Food
Division by reducing export earnings and driving up
production costs.
In March 2011, the earthquake and tsunami in Japan
affected the production of E&E parts and components,
which ultimately reduced demand for the Polymer
Engineering Division’s products. The subsequent
concerns of radiation contamination also affected
consumers’ confidence in Japanese food imports,
impacting the Restaurant Division for a short period.
Despite the extremely challenging business
environment, the Industrial Division increased its
revenue for 2011 against the previous year’s figures.
However, gross profit margin declined due to
intensified market competition, and some subsidiaries
performed below expectation.
The Polymer Engineering Division was adversely
affected by a number of ‘black swan’ events to post
revenue of RM166.6 million. Revenue dropped
mainly as a result of the cessation of Texchem-Pack
(KL) Sdn Bhd operations, as well as severe flood
damage suffered by Texchem-Pack (Thailand) Co
Ltd. Even though our factory was inundated by over
six feet of flood water, I am pleased to report that all
our employees are safe and a thorough stage-by-stage
clean-up and repair will restore it to full operational
capacity by June 2012.
Most of the Family Care Division’s subsidiaries
improved their performance over the previous year,
resulting in revenue of RM155.5 million for 2011.
However, difficulties with PT Technopia Jakarta’s
product distribution in Indonesia resulted in the
company incurring a pre-tax loss of RM6.2 million.
Exposed to hostile market conditions, the Food
Division had a testing year but was able to post revenue
of RM208.6 million. The depreciation of the USD and
appreciation of the Kyat reduced revenue and also
increased operational costs substantially, while lower
fish landings also affected the Division’s output.
Finally, the Restaurant Division experienced an
increase in revenue for 2011 of 11% compared to the
previous financial year. The Division further expanded
Sushi King operations and also established two new
ramen concept restaurants under the Goku Raku
Ramen brand in Kuala Lumpur and Penang.
Global market conditions in 2012 are expected to
remain highly challenging and the Group is fully
prepared for another demanding year. However, there
are areas within our business that we can improve
upon regardless of external forces. I remain confident
that the Group has all the right people and capabilities
in place to gain market share, in spite of the many
uncertainties ahead.
To all our shareholders I wish you a very healthy,
wealthy and productive new year!
President / CEO
RM (million)
RM (million)
2011 2010 2011 2010
Group Revenue Group Pre-Tax Profit
FY2011 vs FY2010 +2%
+59%FY2011 vs FY2010
For FY2011, the Polymer Engineering Division
recorded a profit of RM1.8 million on revenue of
RM166.6 million. Revenue was largely affected by
- economic uncertainty in the US and the EU; the
earthquake in Japan which affected the Division’s
customers’ supply chain and severe flooding in Thailand
in September 2011 which led to the temporary closure
of Texchem-Pack (Thailand) Co Ltd (“TXPT”).
Although these events had an impact on revenue, the
Division still posted a pre-tax profit as a result of an
interim insurance claim for flood damages sustained
by TXPT. The Division has since made substantial
progress in restoring TXPT’s manufacturing facilities
and the plant has been partially operational since
January 2012.
On an encouraging note, Texchem-Pack (Wuxi)
Co Ltd recorded an improved profit and the newly
incorporated subsidiary - Alaya Asia Sdn Bhd - also
presented positive results in its first year of operation.
The Division’s thrust into the medical devices and
wafer shipper segments is progressing steadily, and
in FY2011, revenue from both recorded a notable
“We shall continue business development efforts in
our traditional areas, while pursuing new opportunities
in the semiconductor and medical industries. The
Division will continue to exercise prudence in cost
management, to maximise cost efficiency and improve
cost competitiveness,” said Yap Kee Keong, Division
President and CEO.
Amidst the global economic volatility which severely
affected industrial demand, the Industrial Division
successfully posted a pre-tax profit of RM7.2 million
on revenue of RM431.9 million.
During 2011, operations in Singapore and Vietnam
performed well and Texchem Materials (Thailand)
Ltd was also able to record a profit despite the
negative impacts of the flood in Thailand. Indonesian
operations fell short of expectations, and efforts are
currently underway to strengthen the local sales force.
The Division’s subsidiaries in Malaysia accounted for
mixed performances as the textile industry in particular
went through a difficult year. After nearly five years in
operation, the Division closed down Texchem Trading
(Wuxi) Co Ltd and diverted resources to New Material
Hong Kong Limited which conducts sales operations
in China’s southern region.
“In 2012 we shall focus our effort where it matters
and continue seeking out new business opportunities.
Appropriate resources will be directed to strengthen
subsidiaries including PT.Texchem Indonesia, New
Material (Malaysia) Sdn Bhd and New Material Hong
Kong Limited,” said Division President and CEO,
Wong Kin Chai.
Revenue +10%393.0431.9
Pre-tax Profit -17%8.77.2
Year Ended
Revenue -18%202.2166.6
Pre-tax Profit/
+127%1.8 (6.6)
Year Ended
For FY2011, the Family Care Division’s achieved
revenue of RM155.5 million, slightly exceeding the
previous year’s revenue. However, the Division recorded
a pre-tax loss of RM1.1 million as a result of the
underperformance of the Indonesian operations.

Highlights included the performance of Fumakilla
Malaysia Berhad which posted a pre-tax profit of RM4.8
million - a 32% increase on the previous financial year -
and Technopia (Thailand) Ltd which achieved a profit of
RM1.4 million despite adverse weather conditions.
Lower sales achievement in Indonesia and Myanmar and
the higher costs of manufacturing particularly in Indonesia
and Vietnam were responsible for the Division’s pre-tax
loss. Significant efforts are already underway to improve
PT Technopia Jakarta’s performance in 2012.
During 2011, operations in the rapidly growing Myanmar
market faced increased competition from contraband
mosquito coils imported illegally from China and severe
flooding. Over the long-term though prospects are
positive as aerosol revenue increased considerably in
Acumen Scientific Sdn Bhd, based in Malaysia,
continued its upward trend in 2011 to register sales of
RM6.9 million with a growth of 41% and a pre-tax profit
of RM847k. This growth was driven by the aggressive
market penetration in the Central and Southern Regions,
in line with Acumen’s market expansion plan.
The Food Division experienced an increase in revenue
to RM208.6 million for FY2011, representing a 3%
increase on the previous year. The Division recorded
a loss of RM4.5 million, mainly attributed to increased
operating costs arising from unfavourable exchange
Since May 2011, the strengthening of Kyat against
USD adversely impacted the Division’s Myanmar
operations resulting in the higher cost of raw materials
and operating costs. Throughout 2011, fish landings
continued to be low, which also forced up the prices of
raw marine products.
The Division has focused its efforts on obtaining
consistent supplies of raw marine products by developing
relationships with new suppliers and enhancing links
with existing suppliers. Product diversification is
another area the Division is concentrating on by adding
new value-added seafood products to its product mix.
Continuous rationalisation and cost management
programmes are already underway to improve the
Division’s productivity and reduce operational costs.
Revenue +1%153.5155.5
Pre-tax (Loss)/
Year Ended
Revenue +3%201.8208.6
Pre-tax (Loss)/
Year Ended
FY2011 was a successful year for the Restaurant
Division which achieved revenue of RM126.8 million,
an increase of 11% over the previous year’s revenue.
Pre-tax profit rose to RM12.7 million against pre-tax
profit of RM11.0 recorded in FY2010.
The Division’s revenue was affected from March to
May 2011, following the natural disasters in Japan and
the ensuing fears of nuclear reactor radiation leaks.
However, the Division acted quickly to temporarily
divert raw material imports until consumer confidence
returned, and also made concerted efforts to reduce
operational costs.
Sushi King continued to be the Division’s major
contributor to revenue and a total of eight new
restaurants were opened in 2011. The total number
of Sushi King restaurants in Malaysia is now 69.
In addition, the Division launched a new ramen
concept restaurant brand - Goku Raku Ramen - the
first of its kind in Malaysia. There are currently two
restaurants in Kuala Lumpur and Penang with more
in the pipeline.
The Division now operates three different types of
Japanese restaurants to cater to a wider range of
market segments. Miraku Sdn Bhd, a fine dining
Japanese restaurant generated revenue of RM3.7
million during FY2011.
Revenue +11%114.5126.8
Pre-tax Profit +15%11.012.7
Year Ended
Dengue has been in the news recently but for all the
right reasons as dengue statistics throughout Malaysia
took a large fall. In 2010, over 45,000 cases of dengue
fever were reported, against over 19,000 cases for 2011
Despite the lower number of dengue cases, the public
needs to continue to take precautionary steps to prevent
and control the spread of dengue fever. As a responsible
corporate entity, Fumakilla Malaysia Berhad (“FMB”)
is committed to on-going efforts to raise awareness
of dengue prevention. In 2011, FMB organised anti-
dengue campaigns in 45 schools and public gotong
royong initiatives in the local community. Some of
these initiatives were organized in collaboration with
Sin Chew Jit Poh and Sinar FM.
During the campaign, informative and entertaining
presentations were made to educate school children on
identifying Aedes mosquitoes, their breeding habits and
recognising the symptoms of dengue fever. Fun games
and activities were also carried out to attract participation
and to encourage better understanding from the children.
Aside from working with children, FMB organised
“gotong-royong” sessions in residential areas affected by
dengue, to eradicate potential Aedes’ breeding grounds.

Source: Ministry of Health, Malaysia.
Quick tips to keep dengue fever at bay
Little known Aedes facts
Cover all water containers and put in larvicide, or wash
these once a week;
Put up mosquito netting over windows and doors, or
hang up a mosquito net over your bed;
Throw away items that can collect water such as empty
tins, empty coconut shells, old tyres etc.;
Keep the household clean at all times and check the
surroundings on a weekly basis to ensure that there are
no breeding grounds;
Use household insecticides to kill and to repel adult
mosquitoes such as coil, aerosol, liquid & mat vaporiser
or personal repellent.
Aedes mosquitoes prefer black and red colours compared
to other colours;
Aedes mosquitoes only have a range of 50-100m from
their breeding grounds;
Only female mosquitoes need a bloodmeal (they need the
protein in blood in order to breed);
An average Aedes mosquito can live up to one month.
In its lifetime, it can breed four times and lay up to 300
eggs each time;
Aedes mosquito eggs only need seven days to mature
into adult mosquitoes; they only need one teaspoon of
water to breed!
Q4 2011
6 October 2011
Texchem Resources Bhd. (“TRB”) announced that the fixed rate term loan of RM35 million under the Primary
Collateralised Loan Obligations Transaction arranged by Alliance Investment Bank Berhad had been fully settled by
TRB on 5 October 2011.
17 October 2011
TRB announced that the factory of Texchem-Pack (Thailand) Co., Ltd. located in Ayutthaya, Thailand was flooded
on 15 October 2011 resulting in the factory ceasing operations temporarily.
25 October 2011
TRB announced its unaudited condensed consolidated financial statements for the quarter and nine months ended 30
September 2011.