Investor Relations

Tye Soon is listed on the Main Board of the Singapore Exchange. For our shareholders and partners, we would like to provide an easy access to relevant information concerning our Group in this page.  We hope the information will give you a better understanding of our group.

CHAIRMAN'S STATEMENT

Review of Performance

Turnover grew 2.7% or $5.7 million to $216.6 million against a generally patchy global macroeconomic backdrop. Leveraging on the Group’s geographically diversified customer base, greater focus was targeted at markets where the Group felt had a more positive outlook.

Total margins increased by $2.2 million due to the higher turnover and an improvement in the gross margin rate. The absence of two items incurred in FY16, a foreign exchange loss and a profit share for the directors in connection with the gain made from the sale of the properties at Waterloo Centre in Singapore, helped to lower the increase in overall operating expenses to $1.7 million for the year. Other income increased by $0.9 million mainly due to a foreign exchange gain of $0.7 million.

Profit from operations (PBIT), as shown on the face of the Consolidated Income Statement, decreased from $10.0 million to $4.4 million. However, on a like-for-like basis excluding the effects from the gain from the sale of property, PBIT increased from $2.5 million to $4.4 million. Profit before and after tax for the period were at $1.7 million and $0.8 million respectively.

Details relating to the performance of the business are set out in the Business Review section of the Annual Report (available for download, below).

Current Year Prospects

The strength and resilience of the Group’s distribution network consisting of the Group’s own overseas operations and its global external customer base will be the main factor underpinning the Group’s business.

The Group aims to further improve operational profitability by attaining a better level of efficiency and economies of scale. The continuing restraint from expanding the network of Group-operated warehouse facilities in a significant way will allow the Group to build up revenues without increasing operating cost levels significantly.

Barring unforeseen circumstances, the Group is expected to remain profitable in the current financial year.

The Way Forward

The Group remains focused in pursuing its strategic business direction in expanding its geographical footprint in Asia. Partnering principals mostly from Europe, Japan and Korea, a key element of the Group’s strategy would be to make available one of the largest portfolio of top-tier global brands of automotive parts to customers located throughout Asia.

Board Changes

This will be the last time I will be signing off the Chairman’s Statement for the Annual Report as I intend to step down as Executive Chairman and hand over stewardship to Hee Theng Fong. Upon my stepping down, Mr Hee will be appointed Chairman and I will remain as Executive Director. Mr Hee will remain an independent non-executive director as well as Chairman of the Nominating Committee of the Company.

This intended change is made in compliance with guidelines set out in the Code of Corporate Governance and is expected to take place upon the completion of the necessary procedures by the date of the next Annual General Meeting, scheduled to be held on 27 April 2018.

It has not been an easy decision for me as I had assumed the Chairman’s role after taking over from my late father, the founder of this business. I have had the privilege of having this role for over 20 years. During this period, the Group became listed on the stock exchange and embarked on a strategy to create an Asian footprint for the business. It has been an eventful and enjoyable journey.

Dividend

The Board of Directors announced a final ordinary dividend amounting to $0.5 million on 27 February 2018. No interim dividend was declared during the year. Although the dividend for the year ended 31 December 2017 was lower than the average ordinary dividend paid out in recent years, the Group has now maintained paying a dividend for 9 years running.

Mr Ong Hock Siang,
Chairman, Tye Soon Limited
23 March 2018