sectors such as the communications and medical sector.
We continued to enhance processes, improve productivity
through automation and extend our supply chain through
the establishment of new contacts and competitive sources.
We are hopeful that with the increased use of electronic
devices and internet-related products brought about by
technological advancement in the consumer goods, industrial
products, medical and other industries, there may be a need
for newer types of chips requiring different Burn-in Boards,
for which we have the capability to design and manufacture.
ENGINEERING SERVICES
The Group’s engineering services range from design,
development and full turnkey outsourced manufacturing
and system integration of semiconductor equipment to
lab-automation systems for the life sciences and biotech
industries. We also recommend enhancements and
improvements to our customers’ designs as a value-added
service to them. One of our competitive strengths is the
provision of system integration services for refrigeration-
based High Power Burn-In Systems and Lithography Tool
for semiconductor front-end applications. Currently, our
integration projects also include Charged Coupled Device
(“CCD”) cameras for astronomy and digital imagers for life
sciences applications. In addition, we distribute and service
third-party Mixed Signal Testers used in the semiconductor
industry.
The Engineering Services business segment’s revenue
contributed 27.8% of the Group’s revenue in FY15 as
compared to 31.9% in FY14. The revenue was derived
from new customers that we acquired in the life sciences
and medical imaging equipment industries, with the
manufacturing and systems integration expertise we
garnered from our recent foray into these sectors.
Having entered into these sectors, we are currently extending
our reach into the European market, utilising our existing
experience, technology and knowledge.
HUMAN RESOURCE AND
CORPORATE DEVELOPMENT
We believe that our human capital is our most prized asset. As
such, we remained committed to staff development through
continuous training and skills upgrading even during recent
challenging periods. In FY15, we organised training and
development programmes to enhance the capabilities of our
staff, improve productivity and encourage innovation and
creativity. We sent our staff for the IPC Certified Interconnect
Designer course in order to comply with IPC standards on
PCBA, build a solid foundation in PCBA and be able to add
value to our customers.
In order to ensure compliance with the Workplace Safety and
Health regulations, we have obtained the Fire Certificate for
the Company’s building and the Licence/Certificate issued
under the Radiation Protection Act.
We took steps to renew our status as an Accredited Training
Organisation (“ATO”) possessing the appropriate standards
of training for Chartered Accountants in Singapore. We
sent our staff on continuous training courses, such as the
“Advanced – Managing GST Risk & Compliance” course
conducted by a public accounting firm.
As a socially responsible organisation, we are guided by the
principles of the Electronic Industry Citizenship Coalition
(“EICC”). We have adopted a streamlined approach to the
EICC with the areas of focus being on ethics, labour and
human rights, environment, workplace safety and health and
supplier and customer engagement. We are in the process of
implementing version 5, which is the latest revision to the EICC.
In terms of operational excellence, we are looking forward to
implementing the new revisions to ISO 14000 and ISO 9001
in order to ensure that our production processes are in line
with industry standards.
OUTLOOK
Barring unforeseen circumstances, the outlook for all our
business segments appears positive if the up-trend in the
semiconductor industry and the proliferation of networking,
automotive and other such industries continues, which may
drive the demand for all our business segments.
The Group will also continue to practise prudent cost
management and pursue productivity enhancement
initiatives. At the same time, the Group will proactively seek
to grow its businesses in complementary and synergistic
areas with the aim of ultimately providing greater returns to
shareholders.
15
AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
