Lee Thiam SengExecutive ChairmanDear Shareholders,It is a pleasure to share with you our exciting journeythrough <strong>2007</strong>. It had been a rewarding year for the Group.On the financial front, we had strong growth momentumand achieved a net profit growth of 37.0%. The profit growthcame on the back of increased copper slag collection andlower disposal cost.Recovery of industrial materials, mainly used copper slag,continued to be the main growth engine driving our revenueand profitability in <strong>2007</strong>. On the renewable energy front,we received recognition for our “green energy” effort, beingthe first company in Singapore to be issued a Letter ofApproval from Singapore’s Designated National Authority forour Clean Development Mechanism (“CDM”) project with theUnited Nations Framework Convention on Climate Change.We were also the first Singapore registered company to signa Certified Emission Reductions (“CERs”or carbon credit)Purchase Agreement for a Singapore project.Strong Financial PerformanceRevenue grew 15.2% to S$21.6 million for the currentyear under review. Net profit of S$4.9 million outpacedrevenue growth and showed a 37.0% improvementcompared to the previous period.This was mainly due to the buoyant marine industryrequiring more surface blasting activities which in turnraised the volume of used copper slag collected andprocessed by the Group. New customers were also addedduring this period.In addition to increased business activities, we hadcontinued to lower our disposal cost by working closelywith our partners and finding suitable applications for ourrecycled copper slag, in particular working with a leadingready-mix concrete supplier in Singapore to take up a majorportion of the recycled copper slag from us.This has resulted in our improved gross profit margins.The gross profit margin of 56.1% in FY<strong>2007</strong> representsan improvement of 2.8 percentage point from 53.3%in FY2006.10 • <strong>ecoWise</strong> <strong>Holdings</strong> <strong>Limited</strong> • <strong>Annual</strong> <strong>Report</strong> <strong>2007</strong>
CHAIRMAN’SSTATEMENTRecovery of Industrial Materials -Consolidating Our Leading Position<strong>2007</strong> has been a year of continued growth in ourindustrial waste recovery segment. We have continuedto secure a major share of the used copper slag marketin Singapore. Our partner, Holcim (Singapore) Pte Ltd(“Holcim Singapore”), a wholly owned subsidiary of HolcimLtd, has successfully incorporated our quality processedcopper slag into their ready-mix concrete production.Holcim Ltd is a worldwide leading supplier of cement andaggregates as well as manufacturer of ready-mix concreteand asphalt including services.To further consolidate our strength in this field and deepenthe relationship with our partner, on 14 January 2008,we signed a joint venture agreement with Holcim Singaporewhich will result in the sharing of knowledge and expertisebetween both partners in the areas of industrial materialrecovery, recycling and processing. This will create newpossibilities and help us extend beyond used copper slag,firmly anchoring our industrial materials segment inSingapore.Renewable Energy – A New Engine For GrowthIn the renewable energy segment, we had expanded ourapplications for our biomass cogeneration plant. In <strong>2007</strong>,we became the first Singapore-registered company tosuccessfully secure the sale of carbon credit to KansaiElectric Co Inc, one of Japan’s leading energy companies,who had committed to purchase from us CERs generatedfrom 2008 through to 2011.2008 – Forging New FrontiersGoing forward, we see opportunities in our industrial wasterecovery segments where we will strengthen our workingrelationships with various partners and explore possibilitiesof expanding our business towards other industrialmaterials.We intend to leverage upon two major strengths for thecoming year 2008.First, our joint venture agreement with Holcim Singaporewill set a new frontier in our development and growth.The joint venture will open new opportunities in the use ofsustainable sources of alternative fuels and raw materialsfor the manufacture of cement, building and otherconstruction materials.Second, our renewable energy segment will continue tosee more opportunities. Our biomass cogeneration plantwill see further applications. We will continue to look forpartnerships involving sustainability, locally and regionally.There is growing awareness and pressure on theenvironment as well as broader and deeper appreciationand the need from governments, industries and individualsto come up with environmental friendly sustainablesolutions. <strong>ecoWise</strong> sees sustainability as a majorgrowth market for which we are strengthening our corecompetencies.Rewarding our ShareholdersIn the current year under review, a special cashdividend was declared to reward our shareholders fortheir loyalty and support for the Company over the years.The shareholders were also given an option to re-investtheir cash dividend by subscribing for the rights shareswith warrants.This exercise successfully strengthened the capital base ofthe Company by transforming a proportionate amount ofthe Company’s retained earnings into paid-up capital of theCompany. In addition, the exercise also improved marketliquidity and broadened our shareholder base.Baring any unforeseen circumstances, we will continueto reward our shareholders for their unwavering supportby continuing our strong performance and continualenhancement of shareholder value. We are pleased toinform shareholders that we are now in the process ofapplying with SGX to move to the Main Board.AcknowledgementWe would like to take the opportunity to express our heartfeltthanks to all our business associates, partners, customersand staff for their continual hard work, support, and faith inus. With their further support, we are confident that we canattain greater success in FY2008 and beyond.Lee Thiam SengExecutive ChairmanJanuary 200811
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