Review of 2007
Our Company's initial public offering on the SGX in August 2007 marks
a momentous milestone in our history. We take pride in our steadfast
growth and evolution from a modest factory in 1997, to one of the largest
manufacturers of spray products used in the packaging of FMCGs,
pharmaceutical products and health-supplements in China today.
Our listing not only marks our successful development in the past 10
years, but it also signifies another fresh chapter in our ongoing pursuit
of leadership and excellence in markets where we are present.
In August, the Group was the first Chinese spray pumps manufacturer
to be listed on Singapore Stock Exchange. The IPO proceeds of S$25.5
million helped us to strengthen our financial base and provide us with
more funds for future expansion.
We are pleased to report a set of good results in our maiden year as a
listed company on the SGX.
The Group's revenue rose 10.2% to RMB260.9 million as a result of more
sales from new customers in the US following intensified marketing
efforts through trade exhibitions as well as more orders from its existing
customers. The Group also enjoyed higher gross margin of 31.0%.
As a result of the higher sales and improved gross margins, net profit
grew to RMB53.8 million for the year ended on December 31,2007, up
12.1 % from RMB 48.0 million in FY2006.
Rewarding Shareholders
We believe in rewarding our shareholders for their continued support.
In FY2007, we proposed a final cash dividend of 0.4 SGD cents per ordinary
share. This dividend represents 14.9% of our net profit.
Looking Forward
In FY2007, we saw a very encouraging increase in demand of our products
in the American market despite the overall US economic slowdown. This
underscores our competitive strength in the international market. The
Group secured more orders and enjoyed better margins because of better
branding efforts and more intense marketing campaigns undertaken to
drive home the high-quality theme of Sunmart products.
We have started the construction of new production plants in June
last year. The first phase of the expansion has been completed and the
new plant will start operating by the first half of 2008.This will add new
production capacity of 20 million units. When the entire expansion
programme is completed in 2010, we'll have a total production capacity
of 1.5 to 2.0 billion units, up from the present 800 million units.
In the coming year, we will tap into new market segments by expanding
into the packaging of medical and pharmaceutical products.Our application
for producing "dense polyethylene spray bottle for oral solid medicine"
has been approved by China State Food and Drug Administration Bureau.
We'll start production in the 2nd half of 2008. The Group has ventured
into India and the Middle East, which are expected to have annual demand of
100 million units of spray pumps.
Barring unforeseen circumstances, we remain optimistic about the
Group's bright outlook.
In Appreciation
On behalf of the Board of Directors, I would like to thank our business
partners, shareholders and colleagues for your unwavering support and
dedication. We look forward to your continued support and contribution.
