Ecowise Annual Report 2007 - ecoWise Holdings Limited

More documents

Recommendations

Info

OPERATIONSREVIEWReview of Financial PerformanceFor FY2007, the Group recorded S$21.6 million in revenuewhich is 15.2% higher than that of S$18.8 million inFY2006. This improvement was essentially due to theincrease in ship repair and maintenance activities whichrequired surface blasting to be performed at customers’shipyards and new customers added during the year.The Group also saw an improvement in the gross profitmargin from 53.3% in FY2006 to 56.1% in FY2007 asa result of lower disposal costs contributing to theimproved margins.With the growth in gross profit and revenue, the Groupalso witnessed an increase in net profit attributable toshareholders of 37.0% to S$4.9 million in FY2007 fromS$3.5 million in FY2006.The Group’s administrative expenses were 15.0% higherthan that of the corresponding period due to an increasein staff related costs with the expansion of their operations.At the same time, the Group also paid out performanceand incentive bonus for achieving the financial targets.There was an increase in depreciation cost due toacquisition of new assets.The Group’s total current assets increased by S$3.8 millionmainly due to the increase in trade receivables and cashand cash equivalents as a result of higher sales partiallyoffset by the disposal of Watertech Pte Ltd during the year.Our total non-current asset increased by S$0.3 million dueto the purchase of plant and equipment in FY2007.The Group’s total current liabilities increased byS$1.8 million mainly due to dividends declared partiallyoffset by the disposal of Watertech Pte Ltd during theyear. The total non-current liabilities have increased byS$0.1 million due to additional finance leases taken upfor new plant and equipment.The cash and cash equivalents at the end of the reportingperiod was at S$7.4 million. The increase of S$2.7 millionwas mainly due to higher sales and the disposal ofsubsidiary partially offset by dividend payments.As part of the Group’s efforts to broaden shareholderparticipation and enhance liquidity in its stock, the Groupundertook a Rights-Cum-Warrant issue on 24 July 2007.A total of 249,975,000 renounceable non-underwrittenrights shares were issued at S$0.01 per rights shares,based on three rights shares for every one share held.It also included 83,325,000 free detachable warrants,with each warrant carrying the right to subscribe for onenew share at an exercise price of S$0.05.Key Business Segment Reviewa) Recovery of Industrial Materials Going StrongIn this rewarding year of FY2007, our industrial materialsrecovery business segment which continued to be the maindriver of the Group’s growth and development, accountedfor 85% of FY2007 revenue. In line with our cooperationand partnership with Holcim (Singapore) Pte Ltd (“HolcimSingapore”), we were able to gradually decrease ourdisposal cost for used copper slag, even as the collectionvolume from our customers in the shipyards and shiprepairs business picked up.As part of the Group’s conscientious effort in buildingour position as one of the major players in the marketof collection and recovery of used copper slag, the Groupsigned a joint venture agreement with Holcim Singaporeon 14 January 2008. This corporate action was aimedat laying a firm foundation for the Group in terms ofbuilding up its market presence in the recovery of usedcopper slag and other sustainable sources of alternativefuels and raw materials.16 • ecoWise Holdings Limited • Annual Report 2007
Business OutlookWe intend to explore joint research and development(“R&D”) to develop sustainable sources of alternative fuelsand raw materials that can be used in the manufacture ofcement, building and construction materials.We believe this joint venture will add depth to our technicalcapabilities, broaden our revenue base and increase therange of industrial materials that we can recover andprocess. Holcim Singapore will provide the exclusiveuptake of all products arising from this joint venture whichwill drive our future growth and sustain a high level ofperformance.b) Renewable Energy Drives GrowthThe renewable energy business segment is particularlynoteworthy in FY2007.We began early in FY2007 in earnest by becoming the firstSingapore registered company to hold a public stakeholdermeeting to gather feedback on our Clean DevelopmentMechanism (“CDM”) project. Thereafter we successfullyregistered our project with the United Nations FrameworkConvention on Climate Change to issue and allocateCertified Emission Reductions certificate (“CERs”),commonly known as Carbon Credits.With that, ecoWise became the first Singapore-registeredcompany to secure a Emission Reduction PurchaseAgreement with Kansai Electric Power Company Corp,Osaka for CERs or carbon credits on 5 November 2007.Kansai Electric Co Inc, one of Japan’s leading energycompanies, committed to purchase 95,000 CERs fromthe Group from 2008 to 2011.In the coming 12 months of FY2008, the Group will befocused on capitalising on the two major milestones wehave laid down – they are, in the recovery of industrialmaterials and the renewable energy.The Group will strive to sustain our leadership positionin the recovery of used copper slag market with the helpof Holcim Singapore as well as exploring further growthopportunities in terms of developing new sustainablesources of alternative fuels and raw materials to supportHolcim’s sustainable construction initiatives.Potentially, the renewable energy segment can be asignificant new driver of growth. Much will continue todepend on the successful implementation of our CDMproject and expanding the scope and applications for ourbiomass cogeneration plant. Some of the key applicationsfor the CDM are the use of excess steam for spent graindrying and ISO tank heating. More applications would bepossible once these initial developments become successfuland viable in 2008.The Group believes that environmental services willcontinue to be a growing sector in the Singapore economy.We will focus in developing such viable long termsustainable businesses for our shareholders.17
Page 1 and 2: ecoWise Holdings Limitedannual repo
Page 3 and 4: everything has BEAUTYbut not everyo
Page 5 and 6: Our biomass cogeneration plant at S
Page 7 and 8: Copper slag, the waste residue of c
Page 9 and 10: Our composting facility at Sarimbun
Page 11 and 12: Working to create a living planet.
Page 13 and 14: CHAIRMAN’SSTATEMENTRecovery of In
Page 16 and 17: FINANCIALHIGHLIGHTSFY2007 FY2006 FY
Page 20 and 21: BOARD OFDIRECTORS1 2 34 5 618 • e
Page 22 and 23: MANAGEMENTTEAMLee Thiam SengChief E
Page 24 and 25: CORPORATEGOVERNANCENewly appointed
Page 26 and 27: CORPORATEGOVERNANCEAccess to Inform
Page 28 and 29: CORPORATEGOVERNANCEFor the period u
Page 30 and 31: CORPORATEGOVERNANCEThe AC has power
Page 32 and 33: CORPORATEGOVERNANCERisk ManagementA
Page 34 and 35: REPORT OFTHE DIRECTORSThe directors
Page 36 and 37: REPORT OFTHE DIRECTORS5. OPTIONS TO
Page 38 and 39: REPORT OFTHE DIRECTORS5. OPTIONS TO
Page 40 and 41: STATEMENT OFDIRECTORSIn the opinion
Page 42 and 43: ConsolidatedIncome StatementYear En
Page 44 and 45: Statements OfChanges In EquityYear
Page 46 and 47: Consolidated CashFlow StatementYear
Page 48 and 49: Notes to FinancialStatements31 Octo
Page 68 and 69:
Notes to FinancialStatements31 Octo
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
SHAREHOLDINGSSTATISTICSAS AT 18 JAN
Page 94 and 95:
Notice of AnnualGeneral MeetingECOW
Page 96 and 97:
Notice of AnnualGeneral MeetingECOW
Page 98 and 99:
ADDITIONALEXPLANATORY STATEMENTTO O
Page 100 and 101:
ADDITIONALEXPLANATORY STATEMENTTO O
Page 102 and 103:
ProxyFormECOWISE HOLDINGS LIMITEDRe
Page 104:
H O L D I N G S L I M I T E DCo. Re
show all

Ecowise Annual Report 2007 - ecoWise Holdings Limited

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?