- Full Year Financial Statements Announcement
For the year ended 31 December 2008
Profit & Loss
For the year ended 31 December 2008
Click here for full report
Click here for Third Quarter Financial ResultsBalance SheetAs at 31 December 2008
Review of Performance
2008 Financial Highlights
- The Group recorded revenues of US$109.3 million in 2008 and a gross profit of US$16.5 million. Profit before taxation and profit attributable to shareholders were US$0.6 million and US$1.3 million respectively. Gross profit margin and net profit margin were 15.1% and 0.6% respectively.
- Q4 2008 vs. Q4 2007 Results
- The global economic slowdown adversely affected overall market demand in Q4 2008. Consequently, the Group's revenue decreased by 34.3% from US$38.2 million in Q4 2007 to US$25.1 million in Q4 2008.
- As a result of lower capacity utilization, lower selling prices, higher raw material, labour and other operational costs and a write off of inventory of US$1.3 million, the Group's gross profit margin declined to 2.9% as compared to 28.0% in Q4 2007.
- Sales and marketing expenses in Q4 2007 were lower mainly due to a write back of accrued sales commission of US$870K no longer required. Excluding the write back, sales and marketing expenses decreased by US$120K or 7.9% as compared to the corresponding period. General and administrative expenses increased by 12.6% mainly due to higher allowance for doubtful debts. Excluding allowance for doubtful debts, general and administrative expenses decreased by US$121K or 4.6%. The lower general administrative expenses is mainly due to lower exchange loss as the appreciation of RMB against USD slowed in Q4 2008 compared to the corresponding period.
- The increase in share of losses from associates is mainly due to operational loss of Teradisplay Co., Ltd in South Korea.
- The decrease in tax expenses is mainly due to weak profitability in Q4 2008 coupled with a tax rebate of US$604K for qualifying investment in China received during the quarter. Profit for Q4 2008 was a loss of US$2.9 million as compared to a profit of US$6.9 million the corresponding period.
- 2008 vs. 2007 Results
- The Group's revenue declined by 10.4% from US$122.0 million to US$109.3 million in 2008 as compared to 2007. The decrease in revenue is mainly attributable to weaker demand in Q3 2008 and Q4 2008.
- Lower utilization and selling prices, increases in raw material prices and overheads, caused the Group gross profit margin to decline by 11.1% from 26.2% in 2007 to 15.1% in 2008.
- The increase in sales and marketing expenses is mainly due to salary and general cost increases. General and administrative expenses reduced mainly due to lower allowance for doubtful debts. Excluding allowance for doubtful debts, the Group's general and administrative expenses increased mainly due to salary and general costs increases and higher exchange loss.
- Tax expenses for 2008 are lower than 2007 mainly due to lower operating profit, reversal of deferred tax liability of US$ 559K no longer required and tax rebate of US$604K.
- Profit attributable to shareholders for 2008 declined by US$14.5 million as compared to the corresponding period.
- Balance Sheet and Cash Flow Statement
- The increase in investment in associates relates to our investment in the touch screen panel business in Korea and China amounting to US$5.6 million. Other changes in balance sheet are in line with the Group's operating activities in 2008. Our cash flow position remains strong as at end of 2008.
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Commentary On Current Year Prospects
- The demand for mobile phones slowed beyond our expectations in Q4 2008 and the global economic outlook remains weak for the entire 2009. In this challenging environment, we will focus on increasing our market share, improving our cost structure and enhancing our operational efficiency.
- While we expect demand to remain weak in 2009, our project development activities with customers remain strong. Customers are cautious in awarding orders but at the same time are actively preparing themselves for economic recovery. We have also redirected our marketing resources to new and existing customers that are less affected by the economic slowdown.
- We have also scaled down our operations while maintaining our core strengths to meet the challenges posed by the economic downturn and in anticipation of a volatile market ahead.
- Notwithstanding the decline in performance for 2008, the Board has proposed a first and final dividend of 0.5 Singapore cents as a gesture of thanks to our loyal shareholders.
- With an experienced management team and a healthy cash flow, we are confident of the Group's prospects in the long term.
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(extracted from Annual Report 2007)
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Financial Ratios
Period EPS (SGD)
(Earnings/Latest No. Of Shares)NAV (SGD)
(Shareholders' Equity/Latest No. Of Shares)Price Earnings Ratio (PER)
(Price/EPS)Price/Revenue
(Price x Current No. Of Shares/Revenue)Net Earnings Margin
(Net Earnings/Revenue)Revenue Growth
((Current Year Revenue - Last Year Revenue) / Last Year Revenue)Net Earnings Growth
((Current Year Earnings - Last Year Earnings) / Last Year Earnings)Return On Asset (ROA)
(Net Earnings/Total Assets)Return On Equity (ROE)
(Net Earnings/Equity)Current Ratio
(Current Assets/Current Liabilities)Full Year
Dec 2008$0.00247 $0.2167 22.27 0.261 1.171 % -18.375 % n.a. 0.894 % 1.141 % 3.232 Full Year
Dec 2007$0.03350 $0.2348 1.64 0.213 12.951 % 6.299 % 0.025 % 10.160 % 14.267 % 2.714 Full Year
Dec 2006$0.03350 $0.2157 1.64 0.227 13.763 % 41.149 % 40.026 % 11.266 % 15.527 % 2.859
- All Events
Date Type Remarks Upcoming Events 06 May 2009 Ex-Dividend DIVIDEND : SGD 0.005 1ST & FINAL ONE-TIER TAX
Record Date: 08 May 2009
Payable Date: 22 May 2009Historical Events 24 Feb 2009 Full Year Results 10 Nov 2008 3rd Quarter Results 04 Aug 2008 2nd Quarter Results 05 May 2008 Ex-Dividend DIVIDEND : SGD 0.013 1ST & FINAL ONE-TIER TAX
Record Date: 07 May 2008
Payable Date: 16 May 200828 Apr 2008 1st Quarter Results 28 Apr 2008 AGM 2.30 p.m. at Sheraton Towers SIngapore Diamond Room 39 Scotts Road Singapore 228230. 28 Feb 2008 Full Year Results 07 Aug 2007 2nd Quarter Results 02 May 2007 Ex-Dividend DIVIDEND : SGD 0.013 1ST & FINAL ONE-TIER TAX
Record Date: 04 May 2007
Payable Date: 15 May 200727 Apr 2007 1st Quarter Results 26 Apr 2007 EGM 3.00 p.m. at Sheraton Towers Singapore, Diamond Room, 39 Scotts Road, Singapore 228230. 26 Apr 2007 AGM 2.00 p.m. at Sheraton Towers Singapore, Diamond Room, 39 Scotts Road Singapore 228230. 27 Feb 2007 Full Year Results 31 Oct 2006 3rd Quarter Results 10 Aug 2006 2nd Quarter Results 26 Apr 2006 EGM 10.00am at Amara Hotel, Connection 1, Level 3, 165 Tanjong Pagar Road Singapore 088539 26 Apr 2006 AGM 9.30am at Amara Singapore, Connection 1, Level 3, 165 Tanjong Pagar Road Singapore 088539 04 Nov 2005 3rd Quarter Results 10 Aug 2005 2nd Quarter Results 04 May 2005 Ex-Dividend S$ 0.01 ONE-TIER TAX
Record Date: 06 May 2005
Payable Date: 18 May 200530 Apr 2005 1st Quarter Results 28 Apr 2005 AGM 2.00pm at Carlton Hotel Singapore, Empress 2 (Level 2), 76 Bras Basah Road, Singapore 189558 26 Feb 2005 Full Year Results 11 Aug 2004 Half Year Results