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Chairman Message

Dr Ho Leng Woon

FY2014 Review

The Group achieved a turnover of S$78.4 million in FY2014, 22% higher than that of the previous financial year. The higher revenue was driven largely by increased trading and franchising activities.

The net profit of S$5 million in FY2014 represented an increase of 9% on year to year basis.

Mergers & Acquisitions (M&A) strategy has contributed positively to the Group’s performance. Our financial positions remained healthy on the Group level as well as on individual company levels.

Group cash and cash equivalents increased 19% to S$31.3 million. This was mainly attributable to net increase in cash flow from operating activities.

Earnings per ordinary share in FY2014 was 2.88 cents. The net asset value per share rose 13.2% to 28.17 cents as of December 31, 2014.


Outlook & Prospects

We will continue our two-pronged strategy via organic growth to increase our market share and via M&A to foray into untapped territories.

China remains a key focus of growth for our lubricant business. Plans are in place to scale up operations to take advantage of the vast market in the world’s second largest economy.

A wholly owned company has been established in February 2015 in Shanghai, namely AP Oil Singapore (Shanghai) Limited, 星环润滑油(上海)有限公司. This subsidiary will serve as a base camp and eventually our China HQ for all the company’s lubricant business in mainland China.

An agreement has been signed to form a joint venture (JV) in Chongqing. This JV will cover the lubricant market of Western China.

With strong financial position, we have been constantly exploring more opportunities in M&A, business alliances and partnerships to grow our businesses, particularly in Singapore, Vietnam, Myanmar and China.

In January 2015, the Group acquired 60% equity of a local chemical trading company, Heptalink Chemicals Pte. Ltd. Established in 2011, Heptalink has historically been profitable.

Meanwhile, our subsidiary GB Chemicals has disposed of its 38% stake in an associate, SLUS, for a cash consideration of about S$2 million. This profitable deal will be reflected financially in FY2015.

Given the uncertainties of the global economy and the volatility of oil prices, the business environment in 2015 is expected to be challenging. However, we believe the overall businesses of our major subsidiaries and joint ventures should remain resilient.

Barring any unforeseen circumstances, we expect the performance and outlook of the Group for FY2015 to remain healthy.


The Board of Directors is pleased to announce an interim exempt (one-tier) dividend of 0.50 cent per ordinary share for FY2014.


On behalf of the Board of Directors, I would like to extend my utmost appreciation and gratitude to our business partners, customers, suppliers and shareholders for your support. I would also like to thank all staff members of the Group for your commitment and dedication.

We look forward to your continued support and contribution.

My best wishes,