annual report 2011 - Kian Ann Engineering Pte Ltd

FILTERS
Kian Ann offers top-performing Genuine, OEM and Quality
Replacement filtration components, that can maintain
system cleanliness, reduce component wear and tear,
as well as lower operating costs.
TRANSMISSION, POWER TRAIN AND
FINAL DRIVE PARTS
Kian Ann only sources and procures high quality transmission
and final drive parts that ensure extended life-span of the
drive train system and superior machine performance.
OPERATIONS REVIEW
The Group’s outstanding performance in FY2011 was
mainly driven by stronger demand of parts in Malaysia,
Singapore and Indonesia.
Sales in Malaysia rose significantly by 22.4% or $9.4
million to $51.2 million in FY2011, mainly due to higher
demand of parts from the forestry sector. The improved
sales of $51.2 million accounted for 31.6% of total
sales, an increase of 4 percentage points from FY2010.
Although sales in Singapore increased marginally by
3.6% as compared with FY2010, it remained the second
largest sales generator at 18.2% in FY2011.
One of the Group’s subsidiaries, Kian Chue Hwa
(Industries) Pte Ltd, which specialises in the distribution
of commercial and industrial vehicles parts, enjoyed
healthy sales growth in Singapore.
Another of the Group’s subsidiaries, PT. Haneagle
Heavyparts Indonesia, also recorded improved sales in
its local market. Overall, sales in Indonesia grew 17.2%
from $21.4 million to $25.1 million. This was attributable
to an increase in demand for replacement parts used
for the mining and infrastructure sectors.
Sales in other ASEAN countries, especially Myanmar
and Vietnam, declined by $1.0 million due to weakened
demand.
Although sales in other Asian countries dipped by 5.0%
to $14.6 million in FY2011, our subsidiary in China,
Kian Ann Engineering Trading (Shanghai) Co., Ltd
witnessed a continual growth in sales.
Non-Asian countries registered sales of $34.5 million
in FY2011, representing a marginal increase of 1.9%
as compared to $33.8 million in FY2010.
As a leading stockist with an extensive and
comprehensive range of products, the Group benefitted
from improved business sentiments and consequent
stronger demand in the sectors that it operates in. As
a result, gross profit margin increased by 3 percentage
points from 25.4% in FY2010 to 28.4% in FY2011.
Group gross profit was up by 21.6% to $46.1 million
in FY2011.
04
KIAN ANN ENGINEERING LTD ANNUAL REPORT 2011