Inc. was completed in that quarter while the liquidation of
Verde Designs, Inc. is expected to be completed within the
first quarter of FY16. Nevertheless, we had to do more than
eliminate the losses. We had to work towards profitability
and regain our growth momentum. We focused on our core
businesses, expanding our customer base, leveraging on
newly acquired competencies, improving our productivity and
enhancing manufacturing capabilities. Due to the Group’s
sound business fundamentals, strong cash financial position
and a resilience which has seen us through previous cyclical
downturns, we were able to recover within the year, registering
four consecutive quarters of profitability.
The Burn-In Services business segment benefitted from the
recovery in the semiconductor industry and growing demand
from the automotive and networking devices industries
with their increased use of electronic components requiring
burn-in services. We extended our range of services offered
which now includes assembly services for the medical industry.
We also invested in automation to improve our operations.
With our ability to deliver on and value-add to newer types
of board designs required by customers, our Burn-In Boards
and Board Manufacturing business segment turned in stable
revenues anddrove theGroup’s performance. TheEngineering
Services business segment gained new customers in the
imaging equipment and energy efficient products industries,
leveraging on acquired competencies from our foray into
these sectors. We are gradually extending our reach into the
European market to widen our customer base.
FOCUSING ON SUSTAINABLE GROWTH
With greater use of electronic components in automobiles and
an increased demand for driverless cars, the potential upside
presented by the automotive industry for burn-in services is
encouraging. The info-communications technology space,
with the proliferation of networks and data centres, is another
area with opportunities for growth. The demand for new
products brought about by transformative technologies may
also provide new opportunities. Our Burn-In Services business
segment will look to increase its activity in these areas and
ensure that it keeps up-to-date with industry trends.
The Burn-In Boards and Board Manufacturing business
segment will enhance its capabilities so as to be able to
value-add in terms of design and assembly capabilities.
The growth projections for the automotive sector may
also positively impact this segment as the more advanced
electronic components and gadgets necessitate the need
for the design and manufacture of newer Burn-In boards.
With our enhanced capabilities and technologies, we will be
able to extend our services offered to existing customers as
well as venture into new sectors.
Having entered into the imaging equipment and energy
efficient products industries, we are looking to expand our
Engineering Services business segment to other industries
that will provide us with long-term sustainability and growth.
OUTLOOK
There may be near-term turbulences which we should be
mindful of, suchas theglobal economic slowdownand regional
political instability. Rising business costs, labour shortage and
disruptive technologies are some of the business minefields
through which we have to navigate. Nonetheless, we remain
optimistic of the future performance of all our business
segments. We are committed to optimising our core strengths
and resources in the pursuit of future growth. Prudent financial
management, business excellence and continuous productivity
improvement will remain the mainstays of our operations.
We will also be open to initiatives such as investments,
mergers and acquisitions or other structured transactions or
business that will add value to our shareholders and business.
Nevertheless, we will exercise the utmost caution in the pursuit
of such activities, looking for synergistic and complementary
opportunities that integrate well into our existing businesses
and competencies.
REWARDING SHAREHOLDERS
Due to the Company’s improved financial position and
as a means of rewarding shareholders for their trust and
confidence in our Group, we are proposing a final dividend
and a special dividend subject to shareholders’ approval at the
upcoming Annual General Meeting (“AGM”). The proposed
final dividend will be paid in November 2015 shortly after the
AGM while the special dividend will be paid at the end of
February 2016.
OUR APPRECIATION TO ALL
Our achievements this past year would not have been possible
without the input and guidance from our Board of Directors
and the hard work of the management and staff. We would
like to acknowledge our partners, associates and customers for
their commitment and loyalty. Last but not least, we thank our
shareholders for their continued belief in us and for standing
steadfastly by us during the difficult years.
Khor Thiam Beng
Lim Eng Hong
Chairman
Chief Executive Officer
05
AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
