Chairman's Statement
Extracted from Annual Report 2007
... Excelpoint managed to maintain customer loyalty, grow our customer base and deepen our market penetration... we have built the groundwork that will allow us to leverage new opportunities in the global market for growth. The sky is our limit.
2007 has been a highly memorable year for Excelpoint. It marked a turning point in our journey of transformation – from that of being the region's electronic components distributor to that of a highly regarded value-added partner to Asia's electronics manufacturers and industrial corporations.
The Group focused on our three core pillars of our business – financial, knowledge and human capital. We have a strong, experienced team of leaders and engineering professionals working closely with our partners and customers to deliver total solutions – from engineering designs to supply chain management services using our impressive network across Asia.
As such, despite the difficult market conditions marked by industry consolidation, a weakening US dollar and rising costs, Excelpoint managed to maintain customer loyalty, grow our customer base and deepen our market penetration.
We re-aligned our business units towards key customer segments and grew sales into various segments ranging from consumer electronics, industrial projects, commercial and government infrastructure projects, automotive and even navigational products.
The new partner signings made with major names Legend Silicon Corporation ("Legend Silicon") and Xilinx, Inc. ("Xilinx") will give us the ability to offer our total solutions to a growing customer segment – from nation-wide digital broadcast infrastructure projects to power meters for industrial projects across the markets we operate in.
Over our 20 years in business, we have built the groundwork that will allow us to leverage new opportunities in the global market for growth. The sky is our limit.
The Group achieved a profit after taxation of $1.2 million with revenue of $486.8 million. The shining beacon in our business continues to be our Design-in services which delivered 9.5% rise in operating profit. Similarly, the Group's Distribution business posted a 3.9% rise in operating profit.
My heartfelt thanks to our Board of Directors for their guidance and support to the senior leadership team. Together, with our employees, shareholders, customers and partners, Excelpoint had adapted well to the changing needs of the electronics marketplace and made inroads into wider sets of customer segments to deliver value to our shareholders.
In appreciation for all of our shareholders, the Board recommends a dividend of 0.25 Singapore cents per ordinary share subject to your approval at the forthcoming Annual General Meeting.