of 13
8/7/2019 AR2009 (1)
1/13
INTRACO Limi ted Annual Repor t 2009
BUILDINgON
fOUNDATION
8/7/2019 AR2009 (1)
2/13
ViSioN aNd MiSSioN
CoRpoRaTe pRoFile
ChaiRMaNS STaTeMeNT
BoaRd oF diReCToRS
BuSiNeSS ReVieW
gRoup SeNioR MaNageMeNT
FiNaNCial aNalySeS
CoRpoRaTe goVeRNaNCe RepoRT aNd
STaTuToRy aCCouNTS
CoRpoRaTe diReCToRy
1
2
4
6
8
11
12
17
IBC
CONTENTS
8/7/2019 AR2009 (1)
3/13
INTRACOLimited ANNUAL REPORT 20091
COMPANy SECRETARIES
Mr Chew Kok Liang
Ms Annie Wong Sook Cheng
AUDITORS
KPMG LLP
16 Rafes Quay
#22-00 Hong Leong Building
Singapore 048581
Audit Partner Ms Eng Chin Chin
(appointed in 2005)
SHARE REGISTRAR
KCK CorpServe Pte. Ltd.
333 North Bridge Road
#08-00 KH Kea Building
Singapore 188721
REGISTERED OFFICE
INTRACO Limited
348 Jalan Boon Lay
Singapore 619529
Tel : 65 6586 6777
Fax : 65 6316 3128
Email : [email protected]
Website : www.intraco.com
CORPORATE PROfILE
CORPORATE DATA
TO BE A LEADINg gLOBAL INTEgRATEDSOLUTIONS TRADINg COMPANY
PARTNERINg gLOBALLY TO gENERATEPROgRESS AND PROSPERITY
8/7/2019 AR2009 (1)
4/13
2 INTRACOLimited ANNUAL REPORT 2009
CORPORATE PROfILE
gLOBALINTEgRATION
VALUECREATIONTRADING & OTHERS
PROJECTS
SEMICONDUCTORS
Today, Intracos integrated global market network spans
across ASEAN, China, India and Taiwan. While each serves
as a strong platorm or our business, they also act as our
launch pads or companies seeking regional expansion.
This is urther bolstered by our established international
network o partnerships and alliances.
Incorporated on 5 November 1968, Intracos original
mission was to source or competitively priced raw
materials, commodities and manuactured goods to support
Singapores early industrialisation programme, which
included the creation o new export markets or locally
manuactured products, and the promotion o external
trade.
Intraco was successully listed on the Singapore Exchange
in December 1972. Over the years, we have evolved to meet
the demands o the global marketplace by transorming into
a leading integrated solutions trading company through
global partnerships ocused on three main segments:
8/7/2019 AR2009 (1)
5/13
INTRACOLimited ANNUAL REPORT 20093
8/7/2019 AR2009 (1)
6/13
4 INTRACOLimited Annual Report 2009
CHAIRMANS STATEMENT
OVERVIEw
2009 has been a very turbulent year
where we saw events unold in the most
unexpected manner. In the last quarter
o 2008, we witnessed the extent o
what we believed to be the steepest
widespread economic downturn thisdecade. Just when everyone thought
the year would turn out to be extremely
challenging, the global economy turned
around in the second hal o 2009 as the
various government stimulus packages
started to take eect.
Singapores GDP contracted by a mere
2.1% in 2009 due to the inance sectors
lending ease, spurred on by low interest
rates, which prompted a better-than-
expected global economic recovery.
With Asia leading the recovery, regional
consumer spending and exports started
to pick up towards the last quarter o
2009. We are pleased that the economic
turnaround had a positive impact on our
Groups business in the last quarter o
2009 as we continue to ride on the wave
o recovery.
wHEN THE GOING GETS TOUGH,
THE TOUGH GETS GOING
The economic downturn towards the end
o 2008 had prompted countries rom
all over the world to roll out stimulus
packages and various incentive schemes
to help businesses tide over the crisis.
In spite o the tough economic situation,
we still managed to maintain a strong
net cash position o S$35.8 million by
improving our operational eiciency and
prudently managing our expenditures.
It is this careul management o cash
low that has enabled us to acquire a
29.9% stake in Dynamic Colours Limited
(Dynamic Colours), a company which
presents various potential synergies or
our plastic resins business.
DR ALLAN YAP
ExECUTIVE CHAIRMAN
We are pleased that the economic
turnaround had a positive impact
on our Groups business in the
last quarter of 2009 as We
continue to ride on the Wave of
recovery
SPEAKINgfROMExPERIENCE
8/7/2019 AR2009 (1)
7/13
INTRACOLimited Annual Report 20095
CHAIRMANS STATEMENT
WiTh The eCoNoMiC ReCoVeRy kiCkiNg iN duRiNg The laTeR paRT oF 2009, We Took The ChaNCe To
FoCuS oN expaNdiNg ouR SupplieR aNd CuSToMeR BaSe aS paRT oF ouR plaN To CoNTiNuouSly
Tap oN NeW poTeNTial oppoRTuNiTieS. duRiNg The yeaR, We haVe alSo diVeRSiFied iNTo oTheR
BuSiNeSSeS ThaT gaVe The gRoup BeTTeR pRoFiT MaRgiNS, ShiFTiNg ouR BuSiNeSS Model aWay
FRoM puRe TRadiNg aCTiViTieS To MoRe CoNSiSTeNT diSTRiBuTioN BuSiNeSS. iN liNe WiTh ouR
NeW diReCTioN, We haVe alSo iMpleMeNTed a ChaNge iN MaNageMeNT STRaTegieS To help uS
iN ouR CoNTiNuiNg eFFoRT To MiNiMiSe opeRaTiNg CoST, While MaxiMiSiNg pRoduCTiViTy.
CHAIRMANS STATEMENT
strategies to help us in our continuing
eort to minimise operating cost, while
maximising productivity.
Even as the economy showed signs
o recovery, we remain vigilant and
stay ocused to our strategies as we
prepare ourselves or any challenges or
opportunities that may arise.
GROUP PERFORMANCE
Despite the downturn, the Group has
managed to stay resilient in FY2009.
During the year, the Group reported ayear-on-year revenue decrease o 33.2%
in light o the challenging economic
situation.
However, net proit attributable to
shareholders o the Group was up 161%
due to a write-back o over provision o
prior years tax.
DIVIDEND
I am pleased to announce that the Board
o Directors is proposing a irst and inal
dividend o 1 cent per ordinary share
one-tier tax exempt or the year ended
31 December 2009.
This is our way o rewarding our valued
shareholders or their unwavering support
to the Group over the years.
ACkNOwLEDGEMENT AND
APPRECIATION
In closing, I would like to thank our
management and sta or their hard
work and dedication towards the Group
during these times o uncertainty even
as the Group went through some internalrestructuring, so as to be better aligned
with our goals. I would also like to express
my utmost gratitude to all our customers,
valued shareholders, business associates
and principals or their staunch support
during the year. Finally, not orgetting our
Board o Directors, who have guided the
Group through these turbulent times.
We look orward to working together in
the coming year as we strive towards
making the Intraco Group a continuing
success.
With a regional business network that
spreads across China, Vietnam, Malaysia
and Singapore, Dynamic Colours is
ocused on providing quality colour
compounding and modiied compounding
o resins, and manuacturing o heavy-
duty polyethylene bags. With the
completion o the acquisition, the Group
is able to tap on Dynamic Colours
presence in the Greater Shanghai region
and its compounding services to enhance
the Groups integrated supply chain or
resins. This acquisition will also allow the
Group to oray into the plastic industry.
With the economic recovery kicking in
during the later part o 2009, we took
the chance to ocus on expanding our
supplier and customer base as part o
our plan to continuously tap on new
potential opportunities. During the
year, we have also diversiied into other
businesses that gave the Group better
proit margins, shiting our business
model away rom pure trading activities to
more consistent distribution business. In
line with our new direction, we have also
implemented a change in management
8/7/2019 AR2009 (1)
8/13
1. DR ALLAN yAP
ExECuTIVE CHAIRMAN
2. DR TAN NG CHEE
DEPuTy CHAIRMAN/
NON-ExECuTIVE DIRECTOR/
LEAD INDEPENDENT DIRECTOR
3. MR FOO DER RONG
ExECuTIVE DIRECTOR
4. DR TAN BOON wAN
NON-ExECuTIVE DIRECTOR/
INDEPENDENT DIRECTOR
5. MR HOON TAI MENG
NON-ExECuTIVE DIRECTOR
1
3
5
2
4
BOARD Of DIRECTORS
6 INTRACOLimited Annual Report 2009
8/7/2019 AR2009 (1)
9/13
DR ALLAN yAPExEcutivE chairman
Dr Allan Yap was appointed as an Executive Chairman o
the Intraco Group on 3 December 2003. He graduated with
an Honorary Degree o Doctor o Law rom the University o
Victoria, Canada and has been actively involved in the inance,
investment and banking industry or more than 27 years. Dr
Yap is the Executive Chairman o two other Singapore-listed
companies PSC Corporation Ltd and Tat Seng Packaging
Group Ltd. Concurrently, he sits on the board o Wing On
Travel (Holdings) Limited as an Executive Director and Hanny
Holdings Limited as Chairman, both o which are Hong Kong-listed companies. Dr Yap is also the Chairman o Australia-
listed MRI Holdings Limited, and China Enterprises Limited, a
company whose shares are traded on the OTC Bulletin Board
in the United States o America. Separately, he sits on the
board o Canada-listed Burcon NutraScience Corporation as
Chairman and Chie Executive Oicer.
DR TAN NG CHEE
DEputy chairman/
nOn-ExEcutivE DirEctOr/
LEaD inDEpEnDEnt DirEctOr
Dr Tan Ng Chee joined the board in December 2002 and
is a member o the Audit Committee and Chairman o the
Remuneration and Nominating Committees. He studied law in
England having obtained a doctorate in law at the University
o Oxord. Dr Tan had previously worked at JP Morgans
oices in New York, London, Kuala Lumpur, Singapore and
Hong Kong where he was the Vice President and Regional
Manager o Morgans trust and investment business in Asia.
Dr Tan returned to Singapore in 1989 and became the
Executive Vice President o Singapores Overseas Union Bank
and was responsible or the banks treasury division and all
its businesses and investments overseas. Concurrently, he
was also appointed Chie Executive o International Bank o
Singapore Ltd and Chairman o OUB Bullion & Futures Ltd.
Currently he serves as an independent director on the boards
o Hotung Investment Holdings Ltd, LGT Bank in Liechtenstein
(Singapore) Ltd, ACRU China + Absolute Return Fund Ltd
and Prudential Assurance Company Singapore (Pte) Ltd.
(where he is the Chairman o the Audit Committee). Dr Tan
is also an Adjunct Proessor o Law at the National University
o Singapore Law School at which he teaches a course in
Comparative Corporate Governance to inal year LLB and LLM
law students, and is an examiner to Ph.D students in Company
Law and Corporate Governance. Dr Tan also teaches a similar
course to postgraduate LLM students at the East China
University o Politics and Law (ormerly St Johns University)
in Shanghai, China.
MR FOO DER RONGExEcutivE DirEctOr
Mr Foo Der Rong has served as an Executive Director on
the Board since 3 December 2003. He holds the position
o Managing Director/CEO o PSC Corporation Ltd or the
past 7 years, and is presently the Executive Director o Tat
Seng Packaging Group Ltd, both Singapore-listed companies.
Mr Foo graduated with a Bachelor o Commerce rom Nanyang
University. He has a wealth o experience and knowledge in
business development, corporate restructuring, investment
strategies and operations management in the FMCG, services
and manuacturing. Mr Foo is also active in community serviceand is the Vice Chairman o Teck Ghee Community Club.
DR TAN BOON wAN
nOn-ExEcutivE DirEctOr/
inDEpEnDEnt DirEctOr
Dr Tan Boon Wan sits on the Boards o several energy-related
companies including Concord Energy Pte Ltd and Concord
Reinery Pte Ltd. Presently, he is the Non-executive Chairman
o Provenance Capital Pte Ltd. Dr Tan is a ormer Elected
Member o the Singapore Parliament or the Ang Mo Kio GRC
rom 1997 to 2006, during which he served on the GovernmentParliamentary Committees or Education; Finance and Trade
& Industry; and Inormation, Communication and the Arts. Dr
Tan was awarded the Public Service Medal (PBM) in 1993 or
his contributions to the community.
MR HOON TAI MENG
nOn-ExEcutivE DirEctOr
Mr Hoon Tai Meng has more than 13 years o legal practice
experience, and is a Partner in KhattarWong. He holds a
Bachelor o Commerce Degree in Accountancy rom Nanyang
University and a LLB (Honours) rom the University o London.Mr Hoon is a ellow member o the Institute o Certiied
Public Accountants (Singapore), the Chartered Institute
o Management Accountants (UK) and the Association o
Chartered Certiied Accountants (UK). His other directorships
in public listed companies include Auswin Holdings Limited,
China Video Surveillance Limited, Chip Eng Seng Corporation
Ltd, Dynamic Colours Limited, Federal International (2000) Ltd,
Sin Ghee Huat Corporation Limited, Time Watch Investments
Ltd and Yangtze China Investment Limited. Mr Hoon has
more than 20 years o experience in inancial planning and
management, audit, tax and corporate secretarial unction.
BOARD Of DIRECTORS
INTRACOLimited Annual Report 20097
8/7/2019 AR2009 (1)
10/13
8 INTRACOLimited Annual Report 2009
WiTh eFFeCT FRoM Fy2009, The
gRoup had uNdeRgoNe a STRaTegiC
RealigNMeNT oF ouR opeRaTioNS iNTo
ThRee MaiN SegMeNTS, NaMely, TRadiNg
aNd oTheRS, pRoJeCTS, aNd SeMiCoNduCToRS.
The STRaTegiC ReVieW haS eNaBled The gRoup To
STay NiMBle aNd adapT quiCkly To The eVeR-ChaNgiNg
eNViRoNMeNT, So aS To ReMaiN CoMpeTiTiVe iN The iNduSTRy.
This segment is mainly involved in the
trading o three core products, namely
Plastics, Metals and Minerals, and
Wireless Telecommunication relatedinrastructure. During the year, the Group
had been actively growing its supplier
and customer base, so as to better
establish its supply chain capabilities.
Turnover or the segment slipped to
S$94.7 million in FY2009 as a result
o lower plastic resin prices and muted
activities in the seaood and coee
segments. As a result, FY2009 proit
beore tax stood at S$0.04 million against
S$1.76 million in FY2008.
For the Plastics division, FY2009 revenue
was lower mainly due to the all in plastic
resins prices. The commodity was traded
at about 24.7% below FY2008 prices. Inorder to combat this trend, we reduced
our risk exposure so as to stay proitable
by being more selective o the customers
and partners that we work with. We will
continue to grow our plastic business as
the division has been perorming quite
consistently over the years in spite o the
economic downturn.
For the Metals and Minerals division,
the revenue o steel products remained
relatively healthy and was the main
contributor towards the divisions FY2009
bottom line. However, minerals sales
were somewhat aected by the drop
in demand due to the price volatility.
Moving orward, the Group will continueto grow this division urther, so as to be
well-positioned or the recovery.
For the Wireless Telecommunication
division, FY2009 sales perormance has
been encouraging as the Group inalised
the Facilities Supply Agreements
between IntraWave and the three local
Mobile Telecommunications Operators
(MTO) in early 2009 on the supply
o proessional services and the
leasing o the NEL telecommunications
inrastructure by the Group.
TRADINg & OTHERS
BUSINESS REVIEW
8/7/2019 AR2009 (1)
11/13
INTRACOLimited Annual Report 20099
PROjECTS
BUSINESS REVIEW
The Projects segment specialises in two areas,
mainly Building Materials and Lightings. The
Building Materials division ocuses on Sand
supply, and has successully established an
entire supply chain comprising capabilities rom
Cambodia, Vietnam and Philippines. The Lighting
division, on the other hand, will be ocused on
expanding into the ield o energy saving projects,
while concurrently targeting projects with a wider
role in project management.
Turnover or the Projects segment ell 20.7% in
FY2009 . This was mainly attributed to the ewer
projects secured during the year. Despite this, the
Groups various cost-cutting measures has helped
uphold margins and maintained our pre-tax proit
at S$1.2 million, which was only marginally lower
than the S$1.5 million reported in FY2008.
As the Lighting division continues to contribute
good proit margin towards the Groups bottom
line, we have urther capacity to ocus on other
two key areas, which are LED lightings and energy
saving solutions. By expanding our divisions
ocus, we will be able to urther increase our
revenue stream.
We look orward to the economic recovery, which
could bring urther positive development to the
construction industry and our Projects segment.
The divisions revenue and margins will likely
normalise on the back o the positive economic
developments. As we ride the wave o recovery,
we will continue to grow our capabilities in the
sand supply chain, so as to tap on opportunities
in this segment.
8/7/2019 AR2009 (1)
12/13
10 INTRACOLimited Annual Report 2009
The Semiconductor segment ocuses on the distribution
o semiconductors and computer components such as AMD
processors in the South East Asian markets. Additionally, the
segment also provides ODM services in the embedded wireless area,
as well as design-in and distribution services o semiconductor
components.
Revenue or the Semiconductor segment or FY2009
was S$71.8 million against S$99.6 million in
FY2008 against the backdrop o the inancial
downturn.
With the economy slowly recovering rom the crisis, the Group
will continue to take steps to strengthen its channel distribution,
ODM and design-in businesses. We will continue to build up our
new system integration and design services o hospitality solutions
or the hospitality and healthcare industries.
SEMICONDUCTORS
BUSINESS REVIEW
8/7/2019 AR2009 (1)
13/13
11
MR RONALD LIM
cef Oeg Offe
Mr Lim brings with him more than 31 years o experience
in both senior and general management positions with
MNCs and local corporations in plastic manuacturing and
packaging industries. He currently serves as the President
o the Singapore Plastic Industry Association. He also holds
the appointment o Permanent Secretary-General at ASEAN
Federation o Plastic Industries and is a ounding member o
Asia Plastics Forum.
MS CONNIE CHANG
Fl coolle
hed of Fe Dso
Ms Chang has more than 24 years o experience in senior
and general management positions in inance with MNCs and
local corporations in ood related and trading industries. She
is a ellow member o the Association o Chartered Certiied
Accountants.
MR HARRy wONG
hed of h resoe Dso
Mr Wong graduated with a Master o Commerce in Human
Resource Management rom The University o Western
Australia and has more than 16 years o senior human
resource management and general management experience
with the civil service, MNCs and local corporations in the
manuacturing and trading industries. He also holds a Bachelor
o Science degree in Psychology rom Abilene Christian
University.
MR TAN PUAy CHUAN
cef Eee Offe
io teolog pe Ld
Mr Tan has more than 28 years o senior and general
management experience with the Intraco Group. He holds a
Bachelor o Engineering degree in Electrical Engineering rom
the National University o Singapore.
MR TAN PUAY CHUAN, MR RONALD LIM, MR HARRY WONG, MS CONNIE CHANG
gROUP SENIOR MANAgEMENT
