Chairman and group ceo’s
joint statement
lending criteria have caused banks to be more cautious
in extending loans to property purchasers and the
property development and construction industry.
Meanwhile, the local requirement for players in
Peninsular Malaysia to purchase higher priced raw
materials from domestic steel producers further
exacerbate the challenges faced by PPI and other
domestic players when foreign steel imports enter this
highly competitive and over-crowded market space.
PPI has responded to the increased competition by
implementing aggressive cost reduction strategies
to reduce fixed overheads and improve production
efficiencies. Current business realities necessitates a
strategic shift, from its existing ‘manufacture and sell’
business model to new business and product models
for additional revenue stream.
PLANTATION DIVISION
The Group’s plantation activities are carried out by
Atama Plantation SARL (“APS”), a company registered
in the Republic of Congo. In view of the start-up stage
of APS, the company registered a pre-tax loss of
USD5.0 million in 2014. APS’s initial target to cultivate
an additional 1,500 hectares (from 500 hectares in
2013) to reach 2,000 hectares of oil palm plantation by
the 1st quarter of 2015 encountered some operational
set-backs. As at 31 December 2014, APS only managed
to plant 570 hectares of oil palm.
OTHERS
The Company’s expansion into Myanmar is part of its
strategy to enhance its business portfolio regionally.
With Myanmar’s recent efforts to open its doors to
the world, the Group seized this opportunity to invest
in a riverport business activity in the country. Together
with Boustead Holdings Berhad, our new investment
comprises a port and jetty outside Yangon held under
Myanmar Integrated Port Limited (“MIPL”) and the
edible oil business held under Asia-Pacific Edible Oil
Limited (“APEO”). For the year under review, MIPL and
APEO businesses registered revenue of USD4.3 million
and a profit before tax of USD1.0 million. Key business
directions for the Myanmar business in the near term
will focus mainly on expanding port services, including
constructing more storage tanks and fabrication
yard to serve the customers within the 6,000 acres
Japanese Thilawa Free Trade Zone which is currently
being developed.
DIVIDEND
In line with our core focus to deliver shareholders’
value from our continuous growth opportunities across
our Divisions, the Board declared and paid/credited the
following interim dividends in respect of the financial
year ended 31 December 2014:
(a) On 25 August 2014, the Directors declared a first
interim single tier cash dividend of 2.5 sen per
share, amounting to net dividend payment of
RM19,313,559, paid on 2 October 2014.
(b) On 26 February 2015, the Directors declared a
second interim dividend comprising:
(i) Single tier cash dividend of 2.5 sen per
share amounting to RM19,264,271;
and
(ii) Special single tier share dividend of
4,276,929 treasury shares distributed to
the shareholders of WSC on the basis of
one (1) WSC treasury share for every one
hundred and eighty (180) existing WSC
ordinary shares of RM0.50 each held at
the entitlement date on 16 March 2015.
Based on the share price of WSC shares of
RM1.21 each as at 31 December 2014, the
value of the share dividend per WSC share
is equivalent to a gross cash dividend of
0.67 sen per share.
The second interim dividend was paid/credited into
the entitled shareholders’ securities accounts on
3 April 2015.
OUTLOOK
Low oil prices and volatile markets are likely to
present challenges to the Group. However, we believe
the fundamentals of the O&G industry remain intact
in the long term. Meanwhile, the RE Division is
expected to remain resilient. The Group will continue
to innovate, increase efficiency and implement prudent
cost management activities to weather the current
operating environment. Optimising on the strategies
and disciplines which have been put in place over the
years, the Group is well positioned to achieve our long
term growth objectives by leveraging on our proven
capabilities in the regional and global markets. Moving
forward, we are resolute in overcoming the challenges
ahead and maintain focus on creating and growing
value for our shareholders.
ACKNOWLEDGMENTS
Over these two decades, WSC has expanded through
a strategic blend of marketplace positioning and
acquisitions. Today, WSC is a reputable name across
a host of sectors. Our two decades of success
would not have materialised without the support of
our key stakeholders – shareholders, customers
and employees. On behalf of our fellow Directors
on the Board, it is indeed a great privilege for us to
acknowledge the support of our key stakeholders who
have been the bedrock of our success during this year
under review.
The Group’s notable successes during this period
under review would not have been possible without
the selfless contribution from our fellow Directors,
management team members and committed
employees. These dedicated employees who have
grown with the Group have embraced changes,
optimised the opportunities made available and
implemented innovative initiatives to spur the growth
of WSC. We thank them for their tireless effort and
perseverance in ensuring the Group’s continued
success and their valued contribution.
Thank you.
Dato’ Seri Robert Tan Chung Meng
Non-Independent Non-Executive Chairman
Chan Cheu Leong
Managing Director/Group Chief Executive Officer
7
Wah Seong Corporation Berhad • Annual Report 2014
