Chairman's Statement

Progression through Diversification
The past year has been an exciting year for the Group. I am delighted to report a year of improved results.

Results
Our results for the financial year ended December 31, 2007 (“FY2007”) attest to the immense efforts put in to turnaround the business after several challenging years faced with intense competition. Revenue increased by 20% to S$288.4 million compared to the previous calendar year (“FY2006”, which represents the 12 months ended December 31, 2006), while profit attributable to shareholders rose to S$5.5 million. Shareholders’ funds also improved by about S$20.9 million during the current year due to the conversion of the Group’s outstanding convertible bonds, the increase in fair value of our available-for-sale investments as well as the attributable profit for the year. We have also achieved an improvement in earnings per share for FY2007 to 0.21 cent per share compared with a loss per share of 0.92 cent for FY2006.

There has been strong revenue growth across all of the Group’s principal businesses during the year. The Group’s Supply Chain Management (“SCM”) division saw turnover increase by 19% to S$257.5 million in FY2007 as compared to S$216.9 million in FY2006, while the Electronic Manufacturing Services (“EMS”) division and the property division saw strong turnover growth of 40% and 41% respectively.

The consumer electronics distribution business benefited from the stabilization of operations in China combined with a focus on moving away from an over-reliance on one primary supplier. The Group has developed a portfolio of renowned international brands and is well-represented on the new generation of platforms that will shape the lifestyle market for the coming years. Global brands like Asus, Fuji, Kodak, Lenovo, Olympus, Samsung, Sony and Trust have been added to our product range during the year. These new relationships should generate more stable streams of income for the Group over time.

The performance of our EMS unit has been encouraging, and this improvement has been achieved via better working capital management and tighter internal controls.

The Group’s property development unit in Wujiang has also contributed strongly through improved sales and profit.

The Group has substantial cash reserves, in a large part due to the issue of convertible bonds (“the Bonds”) in February 2006. The Bonds were gradually converted into shares in 2006 and 2007 and the Group redeemed all outstanding Bonds on November 30, 2007, ahead of the original maturity date in February 2009. Currently, the Group has only a small quantum of loans from banks.

Our investment portfolio has also performed commendably in 2007. Gateway Distriparks Limited (“GDL”), in which the Group is a substantial shareholder, has reported steady growth thereby contributing to improved dividend income. This year, GDL has also moved into rail and cold chain logistics sectors with the aim of expanding market share in these areas within India’s burgeoning market.

Outlook and Strategy
Whilst we will not be immune to slowing economic growth rates amongst major world economies and the impact this may have on the consumer markets in general, the increasing stability of our business and the diversity of our revenue base give us confidence about the future. The Group is emerging from a difficult period of transition and the results have been encouraging.

The Group plans to continue building on its strengths with a dual focus on expanding sales and controlling costs. Efforts at the SCM division to widen the product and brand portfolio and to expand the distribution and export networks will continue. While the Group expects to continue operating under difficult market conditions in 2008, we intend to capitalize on the momentum of diversification efforts achieved in 2007.

Despite the intense competition in the EMS sector, the Group is also cautiously optimistic of being able to maintain the improvement in the EMS division.

Acknowledgements
The continued improvement of the Group is a testimony to the effort and enthusiasm of our employees across the globe and the Group’s commitment to being a trusted and reliable partner to the companies we serve.

I would like to thank my fellow Board members for their support and their contribution. I would also like to pay tribute to the commitment and excellence of our management and employees, especially at a time of considerable change for the Group. The Group recognizes that human capital is a key element in sustaining its growth.

Last but not least, on behalf of the Board of Directors, I wish to express my sincere appreciation to our customers, shareholders, bankers and business partners for their ongoing support.

Kartar Singh Thakral
Chairman