Chairman's Statement extracted from the Annual Report 2011
Dear Shareholders,
We ended fiscal year 2011 ("FY11") with flying colours and it is with great pleasure that I announce the financial results of the Group.
Thanks to the advice of the management team who put in their best efforts to help the Group shoulder the blow and aftermath of the financial tsunami in the past three years, we were able to sail safely together through the storm and catch the waves of opportunity.
The growth both in revenue and net profit in FY11 are to the Board of Directors' satisfaction. Not only have we maintained the Group's track record of achieving profitability every year since our inception 35 years ago, our performance in FY11 also registered the second best net profit growth since our listing on the SGX in 2005.
The outstanding results can be attributed to a few key success factors. Firstly, thanks to the Group being granted distribution rights in FY11, the sale of Apple Notebooks/iPads topped the lead in revenue contribution. Secondly, the Electronic Components Division, led by strong sales of industrial materials, contributed significantly to overall net earnings.
Looking ahead, joint ventures will continue to play a significant role in the building of successful future platforms for the Group. We have been exploring opportunities with technology development companies to provide solutions in green power and energy saving technology as we see a global trend towards these key directions.
In FY10 and FY11, the Board also made wise moves to secure office space in both Shenzhen and Shanghai at a reasonable price. We now have some extra office space in Shanghai which will provide for future operating expansion but until such time, it will render the Group some rental income.
In view of the good results and the Group's strong cash position, the Board of Directors is pleased to declare a final dividend of HK$0.07 per share, bringing the full year dividend to HK$0.12 per share. We are proud to continue the trend of paying dividends to our shareholders every year since the Group's IPO in 2005. It is our way of thanking you for your commitment and belief in us.
The management team is always working by the rule of healthy financing. But besides strong and healthy cash flow, we also combine risk management and sustainable growth in our business planning. The Board of Directors is monitoring the recent economic turmoil in the US and some European nations closely. Although our major markets are Hong Kong and China, which are still doing well, we continue to be vigilant and prepared for any storms that may come our way.
On behalf of the Board, I want to thank the management team and all our staff for their dedication and hard work. Special thanks to the team in Compucon Computers Limited and the logistic team in supporting the increased volume of distribution work, you have done us proud by demonstrating the Group's ability to tackle new and difficult challenges with excellent outcomes.
Next year marks an important milestone for the Group as we celebrate our 35th anniversary. All the business units in the Group have provided the management with revenue targets for the fiscal year 2012 and based on their projections, the Board of Directors is cautiously optimistic that it will be another good year for the Group in terms of continuing growth in both revenue and earnings. Barring any unforeseen circumstances, we look forward to bringing you more positive news in the year ahead.
Ng Yuk Wing, Philip
Executive Chairman, Karin Group