omni main verfinal - 早报 · the partnership between omni mold and the tech group, inc. continued...

Omni Mold Ltd Annual Report 2000

1

c o n t e n t s

02 chairman’s statement

06 managing director’s statement

12 corporate information

13 five year financial highlights

14 value added statements

16 financial contents


Omni Mold’sstrategic andsynergistic alliances,have resulted in

bountifulreturns.

Omni Mold’sstrategic andsynergistic alliances,have resulted in

bountifulreturns.


3

““c h a i r m a n ’ s s t a t e m e n t

On behalf of the Board of Directors (“the Board”),

it is my pleasure to report that Omni Mold Ltd (“Omni Mold”)

had performed outstandingly. FY 2000 was a year of

continuous building of strategic and synergistic alliances

and increased sales in every business segments.

The partnership between Omni Mold and The Tech Group,

Inc. continued to be strategic and synergistic in FY 2000.

The co-operation between Omni Mold and The Tech Group

has enabled the Group to capture valuable market

opportunities in the life sciences industry. The Group

c o n t i n u e s t o l e v e r a g e o n T h e T e c h G r o u p ’ s

t e c h n o l o g y t r a n s f e r w h i l e c o m p l e m e n t i n g

The Tech Group’s tooling and molding efforts.


c h a i r m a n ’ s s t a t e m e n t

On behalf of the Board of Directors (“the Board”), it is my pleasure to report that Omni Mold Ltd

(“Omni Mold”) had performed outstandingly. FY 2000 was a year of continuous building of

strategic and synergistic alliances and increased sales in all business segments.

The partnership between Omni Mold and The Tech Group, Inc. continued to be strategic and

synergistic in FY 2000. The co-operation between Omni Mold and The Tech Group has enabled

the Group to capture valuable market opportunities in the life sciences industries. The Group

continues to leverage on The Tech Group’s technology transfer and value-add while

complementing The Tech Group’s tooling and molding efforts.

Financial ReviewI am extremely pleased to announce that for the year ended 31 December 2000, the Group

achieved a turnover of $33.43 million. This represents an increase of 45% compared to last

year’s $23.04 million. It is significant that at the end of its first full year of operations, the Ultra-

Precision Tooling Division contributed $5.15 million in sales, 15% of the total Group turnover.

Operating profit before taxation and extraordinary item was $3.49 million, an increase of 54% as

compared to $2.27 million in the previous year. This significant improvement in performance is

attributed in particular to increased orders for steel molds from existing customers in America.

The Group had also successfully implemented several cost control measures.

New Investments and AcquisitionsThe Group foresees that its Ultra Precision Tooling Division will continue to be a significant

contributor to the Group’s turnover. In FY 2001, the Division will position itself to focus on and

increase its clientele from the healthcare, medical and pharmaceutical industries. The Group

will optimise its capabilities in the Ultra Precision Tooling Division to support the life sciences industry.

In FY 2001, the Group expects the Division to contribute 20% to 25% of Group turnover compared

to 15% in FY 2000.

In the year under review, the Group entered into a joint venture with three strategic partners,

namely Tech Group Singapore Ind. Pte. Ltd. Ionics, Inc. and ICCP Ventures, Inc., to set up I-Omni

Precision, Inc. a custom molding and contract manufacturing plant in the Philippines to serve

global account customers like Royal Philips, EMC and Fujitsu.

Leveraging on Tech Group Singapore’s acquisition of a tooling and molding company in Zhuhai

in the southern part of China, Omni Mold is able to achieve low cost production in the electronics

market which serves to benefit our customers.


5

ProspectsThe Group has made a long-term commitment to continue investing in new technology, promote integration through its automated

workcell concepts and Research & Development (R&D) to enhance its manufacturing capabilities to stay ahead of the competition.

The Ultra Precision Tooling Division, leveraging on expertise from Tech Group Scottsdale’s Engineering Center, will become the main

driving force in the Group’s successful diversification into the healthcare and medical industries. The Tech Group will continue to play

an active role as Omni Mold’s gateway to medical and healthcare customers in the USA and European Markets.

The Group will continue to explore opportunities in expanding its operations into the region as well as globally. Our track record and

balance sheets have so far registered healthy financial growth, hence, we have adequate resources to fund these expansion plans.

Barring all unforeseen circumstances, the Group’s businesses will continue to be profitable in the current year.

I would like to take this opportunity to extend a warm welcome to our new Deputy General Manager, Mr Koh Chye Hock to the team.

Mr Koh will essentially be overseeing the operations of the Ultra Precision Tooling Division as well as assisting our Managing Director,

Mr Neo Age Seng, in the operations of the Group.

DividendsThe Board has recommended a first and final tax-exempt dividend of 5% for the year ended 31 December 2000 and a Bonus tax

exempt dividend of 5%.

AcknowledgementsThe Group has been able to maintain an impressive track record for growth due to our commitment to total customer satisfaction and

operational excellence. Our people are dedicated and committed to the relentless pursuit of excellence through group cohesion and

teamwork. We will continue to optimise our resources to meet the needs of an increasingly challenging business environment.

In addition, our valued customers, shareholders and business associates have been instrumental in our success so far. It is my pleasure

to take this opportunity to express my heartfelt gratitude that FY 2000 was such a fruitful and profitable year for Omni Mold.

Steven Kent UhlmannChairman


Omni Mold’ssuccessis due tothe hard workof its people.

Omni Mold’ssuccessis due tothe hard workof its people.


7

“

“m a n a g i n g d i r e c t o r ’s s t a t e m e n t

In the year under review, Omni Mold achieved a top line

revenue growth of 45% from $23 million to $33 million

and net profit registered a 36% growth from $2.3 million

to 3.1 million. As a result, earnings per share rose 34%

from 3.2 cents in 1999 to 4.3 cents in 2000.

Net tangible assets per share increased 20% from 18.6

cents in 1999 to 22.3 cents in 2000. The increase in

revenue was attributed to new income stream from

medical industries which contributed 5% in 2000.


Financial ReviewIn the year under review, Omni Mold achieved a top line revenue growth of 45%, from $23 million

to $33 million and net profit registered a 36% growth from $2.3 million to $3.1 million. As a result,

earnings per share rose 34% from 3.2 cents in 1999 to 4.3 cents in 2000. Net tangible assets per

share increased 20% from 18.6 cents in 1999 to 22.3 cents in 2000. The increase in revenue was

attributed to new income stream from the medical industries which contributed 5% in 2000.

Globally CompetitiveIn its efforts to develop and harness the region’s growing demand for precision plastic

components, Omni Mold entered into a joint venture with three strategic partners, Tech Group

Singapore Ind. Pte. Ltd, Ionics, Inc. and ICCP Ventures, Inc. to set up a company in the Philippines

known as I-Omni Precision, Inc. (“I-Omni”). Since January 2001, the Philippines plant has started

to produce and supply the Philips ReWritable drive components to Ionics EMS, Inc., the largest

electronics contract manufacturer in the Philippines. The combined capabilities of the four key

players make this an extremely synergistic joint venture with assured viability.

Besides the Philippines, Omni Mold is able to leverage on support from Tech Group Singapore’s

subsidiary, Chi Wo Moulds, located in Zhuhai in the southern part of China to serve its customers

in Singapore and to move into the Mainland China market.

World-Class Manufacturing Capabilities and Infrastructure moving forward, Omni Mold’s strategic

alliance with the Tech Group will become more evident. Since September 1999, Omni Mold has

invested $10.0 million into state-of-the-art machinery and cell automation equipment. We expect

to see significant fruition of our current investments in the next few years when life sciences industries

become more matured in Singapore.

Omni Mold is exploring business opportunities in the provision of fully integrated turn-key services

related to the Ultra Precision Tooling Division, such as precision gear technology, which will present

the Group with new avenues of growth.

In the current year, Omni Mold will continue to work closely with The Tech Group to enhance

capabilities in the integration of automation technology and to achieve more efficient production

processes. A developmental laboratory is being set up by The Tech Group in Scottsdale,

Arizona. Omni Mold will harness their expertise and systematic processing approach to enable

the enhancement of our core competencies, such as our workcell automation, in our Singapore

operations. Our newest automated workcell is equipped with “IC chips” to allow the tracking of

data and machining hours. This will certainly help to improve the utilization of our machines and

allow us to better control costs in our manufacturing processes. This will in turn sharpen the

Group’s competitive edge, creating opportunities for it to serve higher margin customers.

m a n a g i n g d i r e c t o r ’ s s t a t e m e n t


9

As a synergistic tie-up with Tech Group, Omni Mold has also started a new 24-hour International Design concept between The

Tech Group and our Singapore operations to compress design cycle time. This concept will serve to reduce time-to-market for

our valued customers.

Customer FocusedWith many of our customers choosing to focus on product development and marketing, Omni Mold is working closely with The Tech

Group to focus and invest in supply chain management and E-Manufacturing solutions that deliver higher value products and services

to our customers by offering in-house developmental and engineering services. For example, we have a US-based Resident Engineer

in Portland to serve our US customers. We believe this will result in improving cycle times, lowering traveling cost and better communication

between our customers and Omni Mold. These services continue to differentiate us from our competition as we focus our resources on

manufacturing activities to get highest quality products for our customers. Capitalizing on our 1999 strategic initiative, 2000 has directed

towards focusing on being closer to support the customer in their regional activities.

People and ProcessesWe have engaged Arthur Andersen to be our consultant in preparing Omni Mold for the People Developer certification as part of our

strategy to upgrade our entire workforce. Our people and processes are building on Omni Mold’s mission that has always brought us

success: a strong customer focus, world-class manufacturing capabilities and cutting edge technology. We also sent our staff to

attend diploma courses at local polytechnics and universities to upgrade their skills. Omni Mold will continue to focus on upgrading

employees’ skills and developing a high quality, energetic management team to improve organisation efficiency to serve our customers

better.

OutlookFor FY 2001, the Group expects weaker sales from America and this may affect Omni Mold’s performance in the second half of 2001.

However, our diversification efforts into the medical, healthcare and pharmaceutical industries are expected to arrest the negative

effects of the global slowdown. At the same time, management will continue to focus on cost control and seek new opportunities to

widen our client base to achieve increased revenue and higher profits.

AcknowledgementsI would like to take this opportunity to thank our customers, suppliers, business associates and shareholders for their continued support

and encouragement. I would also like to express my sincere appreciation to my Chairman, follow Directors, Management and staff on

their enthusiasm and commitment which have contributed immensely to our performance. I would like to take this opportunity to

express my heartfelt gratitude for making FY 2000 such a fruitful and profitable year for Omni Mold.

Neo Age SengManaging Director


11


c o r p o r a t e i n f o r m a t i o n

DIRECTORS(top to bottom)

Steven Kent Uhlmann Chairman

Chen Wu-Chang Vice-Chairman

Neo Age Seng Managing Director

Tan Chee Chuan, Steven Independent Director

Prof. Ho Nai Choon Independent Director

SECRETARYDorothy Ho

REGISTERED OFFICE51 Joo Koon Circle

Singapore 629069

AUDITORSErnst & Young

Partner: Jen Shek Voon

BANKERSOverseas Union Bank Limited

AUDIT COMMITTEENeo Age Seng

Tan Chee Chuan

Prof. Ho Nai Choon

f i n a n c i a l c a l e n d e r

25 july 2000 1999 final & bonus dividends paid

14 august 2000 Announcement of 2000 half-year results

31 december 2000 Financial year end

05 march 2001 Announcement of 2000 full-year results

29 may 2001 Annual General Meeting

20 june 2001 Proposed 2000 final & bonus dividends payment date


13

f i v e y e a r f i n a n c i a l h i g h l i g h t s

1

2

3

Profit/Loss Before Tax (S$million)

0

5

10

15

20

96 97 98 0099

Turnover (S$ million)

0

7

14

21

28

96 97 98 0099

Total Assets (S$ million)

0

4

8

12

16

96 97 98 0099

Shareholders’ Funds (S$ million)

0

96 97 98 0099

-1

-2

30

17.3

10.5

14.1

23.0

33.4

1.1 0.9

2.3

3.5

-2.0

12.7

10.711.4

13.4

16.0

19.616.5 17.3

26.3

33.6


Value Added Statements

Value Added per $ Investment In Fixed Assets (S$)

0.38

0.4

0.42

0.44

0.46

0

Value Added per $ Employee Cost (S$)

1.3

1.4

1.5

1.6

1.7

0

Turnover per Employee (S$’000)

50

100

150

200

250

0

Value Added per Employee (S$’000)

6376

84

121

186

234

1.41

1.56

1.62

0.4

0.430.44

50

50

150

100

250

0

98 99 00

98 99 00

98 99 00

98 99 00


15

Value Added Statements

S$’000 1998 1999 2000

Turnover from operations 14,054 23,037 33,432

Less: Purchase of goods and services 6,765 13,574 21,458

Value added from operation 7,289 9,463 11,974

Other income 378 364 615

Gain/(loss) on foreign exchange 279 317 992

Share of profit/(loss) of associated company (93) 7 23

Total value added available for distribution 7,853 10,151 13,604

Distributed as follows:

To employees

Salaries and other staff costs 5,176 6,061 7,407

To government

Corporate and property taxes 45 25 436

Other levies 62 26 33

107 51 469

To providers of capital

Interest to banks & other lenders 153 152 249

Dividends to shareholders 177 359 359

330 511 608

Retained in the business

Depreciation 1,555 1,607 2,375

Retained profits 685 1,921 2,745

2,240 3,528 5,120

Total Value Added 7,853 10,151 13,604

Value Added per Employee ($’000) 63 76 84

Turnover per Employee ($’000) 121 186 234

Value Added per $ Sales 0.52 0.41 0.36

Value Added per $ Employment Cost ($) 1.41 1.56 1.62

Value Added per $ Investment In Fixed Assets ($) 0.40 0.43 0.44


f i n a n c i a l c o n t e n t s

17 report of the directors

23 statement by directors

24 auditor’s report

25 profit and loss account

26 balance sheets

27 statement of changes in equity

28 consolidated statement of cash flow

29 notes to the financial statement

42 statistics of shareholdings

43 notice of annual general meeting

proxy form

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