Chairman's Statement
Extracted from Annual Report 2007
| Year 2005 RM'000 |
Year 2006 RM'000 |
Growth % |
|
| Revenue | 24,000 | 36,169 | 51 |
| Profit Before Tax ("PBT") | 9,826 | 14,867 | 51 |
| Profit After Tax ("PBT") | 9,498 | 14,427 | 52 |
Dividends
A special interim dividend, tax exempt, of 1 sen per ordinary share each was paid to shareholders on 2 February 2007.The Board of Directors has recommended a final dividend, tax exempt, of 0.5 sen per ordinary share each for the year ended 31 December 2006. If approved at the forthcoming Annual General Meeting, the total tax exempt dividend for the year will amount to a total distribution of RM 2.325 million for FY 2006, representing a payout ratio of about 25% of net earnings for the financial year.
As a highly dynamic Group with consistently strong growth over the next few years, it is the intention of the Group to maintain a reasonable balance between rewarding shareholders with consistent dividend payouts and reinvesting in the business expansion plans of the Group to further enhance shareholder value.
Corporate Development
In our continuous effort to diversify and expand our market reach, operations and products bases, the Board has undertaken and completed the following new acquisitions during the year under review:- On 7 January 2006, the Company acquired the entire issued and paid-up capital of ViTrox International Sdn Bhd ("VTI") to spearhead its overseas investment in foreign-based operations.
- On 19 January 2006, the Company established a wholly-owned subsidiary company, ViTrox Technologies (Suzhou) Co. Ltd ("VTS") with a registered capital of USD 100,000. VTS was intended to function as the Group's Sale and Support Centre in the Suzhou Industrial Park, the People's Republic of China to provide better service and to enhance sales, market share, reputation and confidence for ViTrox's products in the China market. In a subsequent restructuring which was completed on 17 August 2006, VTS was placed under the direct holding of VTI, thus converting it into an indirect wholly-owned subsidiary of the Company.
- On 24 February 2006, the Company acquired the entire issued and paid-up capital of ViE Technologies Sdn Bhd ("ViE") to undertake research, development and manufacture of System-On-Chip Electronics devices for machine vision and factory automation. Subsequently, ViE was granted pioneer status for a period of 5 years from the Ministry of International Trade and Industry ("MITI") to undertake activities relating to design, development and manufacture of printed circuit board assemblies for microprocessor applications.
- In late 2006, the Group took a strategic step to establish presence in the North America by setting up an Office in San Jose, California USA. This is a strategic move for purposes of market reach and to tap into potential technical and business collaboration with US companies.
Achievements in 2006
The year 2006 was another busy year as the Group implemented certain initiatives to meet new exciting challenges ahead. Among others, new facility was commissioned, product lines were strengthened, overseas market expansion plans came into fruition while longterm strategic tie-up was formalized. As the Group continues to take another bold step towards realizing the vision of being a world leading machine vision solutions provider, significant milestones and achievements are highlighted as follows:- Having successfully completed the construction of the ViTrox Innovation Centre, the Group commenced operation in the new facility in March 2006 with an expanded production facility of 553 square metres from the previous 86 square metres
- With the successful development and launch of the first Automated Optical Inspection (AOI) system for the flexible printed circuit board (Flex-PCB), new opportunity is now available to the Group in the electronics assembly market
- The Group's wholly-owned subsidiary, VT was granted pioneer status for a period of 5 years by MITI to develop and produce digital automated vision inspection equipment and modules
- In the later part of the year, VT entered into an exclusive long term agreement with a leading test and inspection equipment manufacturer, SRM Integration (M) Sdn Bhd ("SRM") to supply vision inspection systems for SRM's test handlers. SRM is in the midst of expanding its production output, in line with the Group's recent expansion in production capacity. The contract is a testament to the confidence in VT's products and will ensure continuing sustainable sales in the future.
Future Outlook and Focus
The Group has been servicing the electronic component business since its inception. We will continue to service our customers in this area. In addition, we would position ourselves to move towards higher level of integration rather than just providing vision systems. In view of this, we anticipate our future to be more diversified, both in breadth and depth of the applications of vision technologies. We also see great potential in our ability to react quickly to market changes and customers expectations. Our business in China will continue to grow together with potential collaborations in other parts of the world.ViTrox is a successful company with leading edge technologies. We know technologies alone will not be the only reason in making a great company. I have shared my views with the management team to concentrate on the following areas in the coming years:
- Capitalize on what we have achieved to expand the business in breadth and depth
- Continue the momentum to gain technology advantage over our competitions
- Execute Business and Strategic Plans with passion and zest
- Pay attention to details especially on business fundamentals such as cost, quality and delivery
- Always remember to focus on delivering values to our customers
Directorate
On behalf of the Board, I wish to extend a warm welcome to Ms. Chuah Poay Ngee as Independent Non-Executive Director with effect from 15 November 2006.We are confident that with her wealth of experience in financial management, she will contribute positively towards the Board's deliberations on the Group's strategic plans.On the same note, I wish to extend my appreciation to Mr. Chu Jenn Weng who has relinquished his position as Executive Chairman in line with good corporate governance practice of separating the roles of chairman and managing director. Mr. Chu will remain as a Board member in his capacity as the Managing Director of the Group and I look forward to further contributions from him in that capacity. I will also personally take a more active role in working with the management team in execution of our business plans.
In Gratitude
The relenting support of our various stakeholder groups, including shareholders, customers, business associates and governmental authorities has given us great strength to continue our growth and expansion. The commitment and dedication of employees at all levels has been instrumental in the Group charting yet another year of excellent growth. I would like to extend to them my big "Thank You".My gratitude is also extended to my fellow members of the Board for their continued support and co-operation throughout the year. I am personally committed to seeing the growth of ViTrox and we need to remember that we have financial, moral and social obligations to the shareholders and our employees to see that the Company continues to be one of the best in the industry.