Product Search
Investor Relations
Corporate Information
Financial Information
Annual Reports
News / Announcements
新闻 / 公告
Operations Review

Subsidiaries and Joint-Venture

In October 2016, as diversification and expansion into the China market, the Company entered into a Joint Venture Agreement with Chongqing Zongshen Power Machinery (“Zongshen”), MoneyMax Financial Services Ltd and Chongqing Free Trade Port Area Development & Management Group Co. to engage in the business of providing financial leasing services for industrial and agricultural equipment in Chongqing, China.

Zongshen is an established business partner, currently marketing our AP Automotive lubricants in Western China and Master Zuo workshops, creating valuable synergy to position AP Oil expansion plan in the China market.

At AP Oil (Singapore) Shanghai Ltd, we completed purchase of two office units to locate our Shanghai management and business team.

Despite the challenging business conditions, GB Chemicals Pte Ltd recorded revenue growth of 4.0% to S$4.2 million (FY 2015: -2.0%, S$4.0 million) mainly from higher rental income and product sales.

Performance by Business Segments


Manufacturing segment accounted for 46.2% or S$36.5 million of the Group’s revenue in FY 2016 (FY 2015: 41.8%, S$35.8 million). Manufacturing comprises mainly blending of lubricating oils and specialty chemicals.

For lubricating oil, AP Oil Group operates three blending plants: two wholly owned in Singapore and one in a Vietnam joint venture     (AP Saigon Petro) – these plants produce a wide range of lubricants for automotive, industrial and marine applications. Our       lubricants are marketed mainly under the brand name of “AP Oil” and “SIN-O”.

For specialty chemicals, these are produced by two of our wholly owned subsidiaries namely A.I.M. Chemical Industries and GB Chemicals.


Franchising segment recorded revenue of S$13.8 million or 17.4% of the Group’s revenue for FY 2016 (FY 2015: 24.3%, S$20.8 million).

Our franchising programs include designs of plant and machinery, the setting up of laboratory, technology transfer, product formulation, staff training, use of our trademarks, etc. FY 2016 revenue comprised mainly of raw materials sale to our franchisees for producing lubricants under our brand name “SIN-O”.



Trading activities cover purchase and sale of raw materials used for lubricants and specialty chemicals manufacturing, namely, base oil, additives, chemicals and finished products purchased from third party.

This segment accounted for 36.4% or S$28.8 million of the Group’s revenue in FY 2016 (FY 2015: 33.9%, S$29.0 million).


Performance by Geographical Markets

AP Oil Group exports a full range of lubricants and specialty chemicals to customers in some 20 countries. Main markets in FY 2016 were Singapore, Vietnam, Bangladesh, United Arab Emirates (UAE), Malaysia and Indonesia. Secondary markets include Myanmar, Philippines, Thailand, China and Greece.

Singapore was the Group’s largest market, recording 55% of the Group’s revenue for FY 2016 (FY 2015: 46%). Sales in Singapore increased by S$4 million from S$39.5 million in FY 2015 to S$43.5 million in FY 2016 – this includes marine lubricants sold to foreign customers but delivered to vessels calling at the Singapore port, and specialty chemicals sold to Singapore based multinational companies for export.

Sales to Vietnam, was the second largest market contributing 13% or S$10.5 million to the Group’s revenue in FY 2016. This was followed by Bangladesh with 6% or S$4.5 million to the Group’s revenue in FY 2016.

In aggregate, UAE, Malaysia and Indonesia accounted for 12% or S$9.5 million of the Group’s revenue in FY 2016. Other countries made up the balance of 14% or S$11 million of the Group’s revenue in FY 2016.