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Subsidiaries and Joint-Venture

In late December 2014, GB Chemicals, our wholly owned subsidiary, sold its 38% equity stake in Systematic Laundry & Uniform Services Pte Ltd (SLUS) for a cash consideration of about S$2 million. This profitable transaction will be reported in FY2015.

The Group acquired 60% equity of a local chemical trading company, Heptalink Chemicals Pte. Ltd in January 2015. This company was set up in 2011 and has been profitable. After acquisition, Heptalink has moved to 8 Shenton Way, #50-01, AXA Tower, Singapore 068811.

In February 2015, the Group established a wholly owned subsidiary in Shanghai, AP Oil Singapore (Shanghai) Limited, 星环润滑油(上海)有限公司. Located at Shanghai’s Financial District - 23rd floor Citigroup Tower, 33 Huayuanshiqiao Road, this Shanghai Company will serve as Group’s HQ in China.

An agreement has also been signed to set up a new joint venture (JV) in Chongqing to market AP lubricant products in Western China.

Performance by Business Segments


Manufacturing segment accounted for 50.9% or S$39.9 million of the Group’s revenue in FY2014, compared to that of S$39.2 million in FY2013. The manufacturing activities here refer to the blending of lubricating oils and specialty chemicals.

The Group operates two lubricant blending plants in Singapore. The joint-venture lube plant in Vietnam, AP Saigon Petro JSC, achieved a better bottomline in 2014.

Our two wholly owned subsidiaries in the Republic, A.I.M. Chemical Industries and GB Chemicals, are primarily engaged in the manufacturing of specialty chemicals.


The franchising segment locked in sales of S$19.1 million or 24.4% of the total revenue, compared to 19.6% or S$12.7 million in the previous financial year.

Our franchising programmes include designs of plant and machinery, the setting up of laboratory, technology transfer, product formulation, staff training, use of our trademarks, etc. The bulk of revenue comprised sales of raw materials to our franchisees for producing lubricants under our brand names.

The higher revenue growth in FY2014 came mainly from Bangladesh, where we have two franchising programmes. The SIN-O lube brand was introduced in 1997, while the AP brand has just started in 2014.



The trading activities cover purchase and sales of raw materials used for lubricants and specialty chemicals manufacturing, i.e. base oils, additives, and chemicals as well as some finished products which we do not produce.

This segment accounted for 24.7% or S$19.4 million of Group’s revenue in FY2014, compared to 19.5% or S$12.6 million in FY2013.

The Group will continue to put in effort to improve trading activities in the form of direct shipments, which could significantly enhance efficiencies and save on operating costs.


Performance by Geographical Markets

We produce and export a full range of lubricants and specialty chemicals to some 20 countries and regions. Our main markets in FY2014 were Singapore, Vietnam, Bangladesh, Myanmar, Indonesia and the Philippines.

Based on the FY2014 revenue breakdown, Singapore remained the single largest market for the Group, accounting for 51.7% or S$40.5 million of overall revenue. This figure, however, included marine lubricants sold to overseas clients but delivered to foreign vessels calling at Singapore, as well as specialty chemicals sold to Singapore-based multinational companies (MNCs) which were subsequently re-exported to other countries.

Revenue from business activities in Bangladesh weighed in at S$9.0 million or 11.5% of overall revenue. Vietnam, Myanmar and Philippines accounted for 26.1% or S$20.5 million of the Group’s total sales. Other countries accounted for 10.7% or S$8.4 million of total revenue.