I N N O T E K L I M I T E D
A N N U A L R E P O R T 2 0 1 5
04
CHAIRMAN’S LETTER TO
SHAREHOLDERS
DEAR SHAREHOLDERS,
On behalf of the Board of Directors
(the "Board"), I am pleased to present
to you the annual report of InnoTek
Limited ("InnoTek" or the "Group") for
the financial year ended 31 December
2015 ("FY'15").
FY'15 was a challenging year. We
navigated through a tough operating
environment impacted by China's
manufacturing growth slowdown
– af fec ted by rising labour and
operational costs that continue to
increase margin pressure. We forged
ahead with our restructuring efforts
– first introduced in the second half
of FY'14 – which have allowed us to
refine our core competency, better
positioning the Group to tap on the
increasing demand for higher-end TV
bezels and the growing automotive
market.
We are pleased to have appointed
Mr. Lou Yiliang ("Mr. Lou") on 2
Nov emb e r 2015, a s E xe cu t i ve
Director of the Group and Chief
Executive Office ("CEO") for Mansfield
Manufacturing Company Limited
("Mansfield"). Although he only came
on board in the last two months
of the year under review, we have
already seen positive changes from
newly implemented initiatives that
enhance business focus while driving
cost efficiencies.
Wh i l e mu ch mo r e r ema i n s t o
be done, F Y '15 s e t s t he s t age
for corporate recover y under a
new leadership, with the initial
restructuring already under way.
FINANCIAL PERFORMANCE
Revenue for FY'15 increased 3.4% to
S$233.1 million from S$225.6 million
in FY'14. Our top line benefited
from the strengthening of the HK
dollar against the Singapore dollar,
which is our reporting currency.
Excluding this unrealised foreign
exchange impact, revenue would
have declined S$11.3 million as a
result of lower contribution from the
Precision Component segment as
some Japanese customers relocated
production from China to South East
Asian countries. This was offset by
higher revenue from the Assembly
segment as new products for a major
customer went into mass production.
Net loss after tax narrowed 48.2%
in FY '15 to S$16. 3 million f rom
S$28.3 million in FY'14. The lower
net loss was mainly due to lower
impairment loss of S$5.0 million in
FY’15 compared to the S$16.3 million
impairment loss recorded in FY'14.
Mr. Robert Sebastiaan Lette
Chairman and Non-Executive Director
