SCB Prospectus - Announcements - Bursa Malaysia

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Company No. 462648-V 10. FINANCIAL INFORMATION (CONT’D) Singapore Brief Description of Project Supply, installation & commissioning of a Gas Monitoring System (“GMS”) for the remote monitoring of pipeline networks transporting natural gas into various power stations in Singapore. Maintenance of Telemetry Monitoring Systems (“TMS”) for a period of five (5) years consisting preventive and corrective maintenance of 2,500 Lift Monitoring Devices located all over the Singapore Island. Supply, installation and commissioning of Intrusion Detection Systems (“IDS”) capable of detecting unauthorized entry into power distribution substations at 1,000 substations. Provision for the maintenance of 83 Remote Terminal Units (“RTUs”) installed at transmission substations on a 6-monthly preventive maintenance and ad-hoc corrective maintenance basis. Supply, installation & commissioning of 2,400 Lift Mornitoring Devices (“LMD”) and 10 Area Receiving Stations (“ARS”) under the Lift Upgrade Program (“LUP”). Supply, installation & commissioning of Integrated, Security and Operation Surveillance System (“ISOSS”) consisting Building Access Control Systems (“BACS”), CCTV Systems, Fence Intrusion Detection Systems (“FIDS”) and Public Announcement (“PA”) Systems at thirty (30) 66KV substations. Supply, installation & commissioning of 650 Lift Surveillance Systems (“LSS”) and 70 Lift Lobby Systems (“LLS”) under the LUP. Supply, installation & commissioning of Building Monitorign Centre (“BMC”) for the monitoring of TMS and Photovoltaic Monitoring Systems for public housing in Singapore. Supply, installation & commissioning of the Partial Discharge Monitoring (“PDM”) Systems consisting Ultra High Frequency (“UHF”) sensors, Data Acquisition Units and Micro-controller Base Units at four (4) 66KV substations. Supply, installation & commissioning of RTUs and Modbus Servers at six (6) Gas Offtake and Metering Stations. Maintenance of PDM Systems at five (5) 400KV and 230KV substations for a period of twenty-four (24) months comprising quarterly preventive and ad-hoc corrective maintenance. 92 Value (RM’000) 6,918 3,302 3,285 1,947 14,386 11,130 3,717 2,020 1,952 1,849 1,007 Meanwhile, the revenue contribution from the Europe market has increased by RM1.25 million to RM2.02 million in the FYE 31 December 2008 as compared to RM771,000 recorded in the previous financial year. As it is a normal occurrence in the SCADA industry that clients will need to upgrade their control system to fulfill the requirement of their respective industries, many of the Group’s existing clients have initiated upgrading works on their existing control system. In the FYE 31 December 2008, one of the clients in Europe has initiated an upgrade of their existing SCADA system contributing to an increase to the Group’s revenue from Europe. Revenue for the Willowglen Group increased further by RM10.844 million or 21.20% from RM51.16 million to RM62.001 million in the FYE 31 December 2009. The increase in revenue was mainly due to the increase in the number of long term projects secured by our Group during the FYE 31 December 2009. The number of contracts secured by the Willowglen Group had increased to 134 projects as compared to 106 projects secured in the previous financial year. There were 60 new
Company No. 462648-V 10. FINANCIAL INFORMATION (CONT’D) long term projects secured during the said financial year, which contributed RM37.95 million of revenue for that financial year. The increase was mainly due to the aggressive sales and marketing efforts and the result of government stimulus packages in Singapore, which resulted in an increase in spending in the infrastructure segment especially in power distribution and security of public buildings. This resulted in a substantial growth in the power and electric utility and construction industries which requires SCADA systems in the transmission and distribution of electricity and for monitoring and operation of the surveillance system. The Willowglen Group recorded a lower revenue of RM27.66 million for the six (6) months ended 30 June 2010 or a decrease of 11.51% as compared to the corresponding period in 2009. The decrease in revenue was mainly due to the fact that most of the projects have been completed in 2009 as a result of the stimulus package announced by the Singapore Government, resulting in a general reduction in the number of projects awarded during the beginning of the year. However, management expects that earnings growth from its Singapore operations will be supported by the fact that the overall economic conditions are improving in Singapore. Gross Profit Despite the increased in revenue, the Willowglen Group’s gross profit margin was reduced from 44.25% to 33.95% as compared to the FYE 31 December 2006. This was mainly due to increased competition in the water, housing and power industry. The competition that exists in the market has caused players in the industry to reduce prices to attract customers to engage their services. To mitigate this risk, our Group implemented cost cutting strategies which include sourcing for contractors that offer better pricing and terms. We had also reduced the amount of work sub-contracted out to third parties in order to preserve our operating margins. Management is of the opinion that, based on the industry survey as well as from the past engagements of the Group, the average margins by segments should are:- Segments GP Margin (%) Oil & gas utilities, power utilities and railroads 30 - 40 Sewerage & drainage utilities, water utilities and infrastructure monitoring 15 - 20 Despite the decrease in revenue, the Willowglen Group’s gross profit margin for the FYE 31 December 2008 increased from 33.95% to 38.57% as compared to the FYE 31 December 2007 as a result of the Group’s cost cutting measures. Our procurement team had been aggressively sourcing for better sub-contractors and products and to negotiate for better pricing and terms, resulting in substantial cost savings for our Group. Our management estimates that the Group has managed to save around RM1.42 million as a result of the implementation of cost cutting measures. Gross profit increased from RM19.73 million in the FYE 31 December 2008 to RM24.61 million in the FYE 31 December 2009, representing an increase of RM4.87 million, mainly due to an increase in revenue as explained above. Gross profit margin for the FYE 31 December 2009 improved further to 39.69% as compared to 38.57% in the FYE 31 December 2008. The continued increase in the profit margins was primarily due to the management continued efforts to control cost in its operations. For the FPE 30 June 2010, gross profit decreased by RM0.69 million from RM12.42 million in the FPE 30 June 2009 to RM11.73 million, mainly due to a decrease in revenue as explained above. However, the gross profit margin for our Group during the FPE 30 June 2010 was higher at 42.43% as compared to 39.74% in the same FPE 30 June 2009. This is another improvement in our Group’s effort and performance to reduce cost and to improve our Group’s profitability. 93
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THIS INTRODUCTORY DOCUMENT IS FOR Y
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Company No. 462648-V PRESENTATION O
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Company No. 462648-V DEFINITIONS Th
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Company No. 462648-V TABLE OF CONTE
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Company No. 462648-V 1. CORPORATE D
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Company No. 462648-V 1. CORPORATE D
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Company No. 462648-V 2. INFORMATION
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Company No. 462648-V 3. PARTICULARS
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Company No. 462648-V 4. RISK FACTOR
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Company No. 462648-V 4. RISK FACTOR
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Company No. 462648-V 6. BUSINESS OV
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Company No. 462648-V 14. ADDITIONAL
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