Extracted from Annual Report 2017
On behalf of the Board of Directors (the "Board"), I present to you the annual report of InnoTek Limited ("InnoTek" or the "Group") for the financial year ended 31 December 2017. This is the first time I am presenting this report following my appointment as Chairman in late April 2017.
I am pleased to inform you that it has been another profitable year for InnoTek, driven largely by our Group Chief Executive Officer ("CEO"), Mr. Lou Yiliang and his team. Thanks to their restructuring efforts, the Group has significantly improved its operational efficiencies and asset utilisation, and our turnaround strategy is now well on track.
We reported a healthy set of results this year with annual revenue of $212.7 million and net profit after tax of $9.8 million, overcoming challenges such as wage inflation, labour shortage and stiff competition, as well as rising raw material prices in China. Although overall performance was lower than that of FY2016 due to reduced turnover in our Office Automation ("OA") segment, we received encouraging responses to products in our TV segment, such as heat sinks and bezels.
To mitigate the slowdown in OA segment as several Japanese brands relocate operations from China to Southeast Asia, we have incorporated a subsidiary in Thailand to strengthen synergies with clients. We have also set up a subsidiary in Weihai, China to support Hewlett Packard's printerrelated operations there, following its acquisition of Samsung's printer business in China.
Growth prospects in the TV segment are bright as the global shift to larger-format, higher-definition TV panels continue to benefit the Group, even overtaking OA as our main revenue contributor this year. We will continue to pursue this segment and are investing in initiatives to boost manufacturing efficiency, such as robotic arms and other methods of automation.
The automotive business remains a key segment amid steady growth for the industry, especially in China. In addition to developing new revenue streams and pursuing new orders for car seat moulds and stamping, we will work closely with global suppliers to grow our business in this segment.
In the year ahead, we will continue managing competitive and cost pressures even as we do our utmost to secure more programmes and expand our customer base. In the meantime, we are pleased to announce a final full-year dividend of 1.0 cent, double that of FY2016, subject to approval at the upcoming Annual General Meeting ("AGM").
Changes to The Board of Directors
I was appointed as Chairman of the Board following Mr. Robert Sebastiaan Lette's retirement as Chairman and non- Executive Director after last year's AGM on 27 April 2017.
Mr. Lette joined the Board in 2002 and was appointed as Chairman in 2004, and has been a true asset to the Group throughout his years of service. We are grateful to him for his guidance and contributions, and wish him all the best in his future endeavours.
On behalf of the Board, I thank our customers, business partners, management and employees for your commitment and hard work over the past year. In particular, I would like to express my appreciation to Mr. Lou for providing us with strong and clear leadership in his capacity as Group CEO. His efforts to improve our productivity and performance have been instrumental in InnoTek's turnaround.
Last but not least, I wish to extend our heartfelt appreciation to all shareholders of InnoTek for your loyalty and support over the years. I look forward to speaking with you all at the upcoming AGM.