Chairman's Message
In year 2011, the Group achieved its second consecutive year of profitability, after having suffered significant losses resulting from the financial crisis in 2008 and 2009. The year also saw the Group returning to a positive net asset position – a difficult feat considering the organic nature of our recovery. With the Group’s copper smelting facility in Qingyuan, Guangdong Province, China coming on-stream and fully operational in the second half of 2011, Group revenue quadrupled to S$178 million and gross profit increased from S$4.0 million in FY2010 to S$5.4 million in FY2011; but net profit was lower because of the start-up costs of the manufacturing facilities in China. Net profit was S$1.6 million compared to S$5.8 million in FY 2010.
A United and Effective Board
The Group is led by a small but united and effective four-member Board of Directors, which comprise the Executive Chairman and three Independent Directors. There are no changes in the make-up of the Board of Directors in 2011. We continue to seek out new qualified and experienced directors to join and strengthen our Board.
Forging Ahead
This time last year, we shared about the Group’s intention to relocate more of our manufacturing facilities in lower cost locations. These plans have been executed, and the bulk of 2011’s manufacturing income came from its new copper smelting plant in Qingyuan, a city close to the Guangzhou Baiyun International Airport. The plant was commissioned only in the first half of 2011; by the second half of the year, it was producing close to 1000 tonnes of high-grade copper rods and wires (or about $10 million of revenue) every month.
The management is confident that demand for copper products in China, a sector that benefits directly from China’s industrialisation and urbanisation, will continue to increase and our production is slated to increase this year. Profit margins are expected to improve as some of the start-up costs have already been incurred in 2011, and the management team drives up the plant’s utilization rate.
The Company undertook several demolition projects in 2011, including one in the state of Tennessee, USA. However, falling commodity prices forced the Company to slow down the selling of scrap materials harvested from the derelict factories, resulting in lower earnings for the year but a high inventory that is carried over into FY2012.
The Group has successfully obtained approval from the Singapore Court in 2011 for the Scheme of Arrangement to restructure its legacy debts, with the necessary framework in place to enable the Group to grow its businesses without being impeded by the problems of the past.
Looking Forward
Moving forward, Advance SCT will put greater emphasis on copper manufacturing, which is a relatively structured and stable business. We intend to increase the production of copper rods and wires, and explore other copper products to integrate vertically for growth and efficiency, to capture a wider spectrum of the value chain. The development of additional product lines will require more working capital. We will pull together our resources to focus on the copper manufacturing business. The Qingyuan plant has a maximum capacity of 3000 tonnes a month and if copper price stays at current level, the plant alone can generate $30 million of revenue a month or $360 million a year at full capacity.
The continued uncertainty in the global economy indicates that the new normal for the recycling business is a more volatile trading environment, given its direct correlation to fluctuating metal prices. The recently announced Singapore budgetary measures to curb dependence on foreign labour are additional threats to this business. We are currently reviewing our involvement in the recycling business, which is capital- and labour-intensive, and requires significant land area and warehousing.
One of the more immediate opportunities for the Group is to spin-off certain promising non-core businesses through a separate listing on a stock exchange so as to allow these businesses to grow while we focus on our core business in the copper sector. In this direction, we are also exploring the potential of expanding into the mining sector.
Appreciation
On behalf of the Board, I would like to thank all shareholders, business partners, financial institutions and other stakeholders for their unwavering support and confidence in the Group. To our board, management and staff, I would like to express my appreciation for your dedication, commitment and contribution to the Company.
Simon Eng
Chairman
总裁寄语
2011年，新亚集团在经历过2008年和2009年金融危机的重创后，迎来了连续第二年的盈利。也可以看到的是，集团在这一年回到了正资产的状况—就集团恢复过程而言，可视为一项壮举。随着集团在清远的铜熔炼工厂于2011年正式运营，集团总收益翻了三番，达到新币1亿7800万，毛利润从2011年度的新币400万增长为新币540万，但由于中国工厂的启动资金等原因致使净利润偏低。2011年度净利润为140万新币，较2010年度的560万有所降低。
团结一致与高效率的董事会
集团由一支小规模但团结而高效的四人董事会领导，包括常务董事长和三位独立董事。董事会在2011年未发生变动。我们将继续寻找有资质及丰富经验的董事来壮大我们的董事会。
改革奋进
去年此时，我们分享了集团欲将部分生产设备迁至低成本地区的意向。这些计划已如期执行，而2011年局巨额的生产型收入都是来自集团位于清远—广东省靠近白云机场的一个地级市—的铜熔炼工厂。该厂于2011年上半年投入运营，2011年下半年，每月产出约1000吨的高质量铜杆和铜线（即约1000万收益）。
集团管理层对于中国铜产品市场充满信心，该领域将直接受益于中国的工业化和城市化进程，而我们工厂也将随之稳定增长。因2011年须承担部分启动资金，管理队伍的成长和生产厂房的更有效利用，收益率将会在未来进一步提高。
2011年，集团承揽了若干拆解项目，包括在美国田纳西州的一项。但是，不断下降的大宗商品价格迫使集团放缓了拆解出的废五金材料，也致使集团2011年的收益略低，而大量库存累积至2012年。
集团已成功取得新加坡法院的批准，通过Scheme of Arrangement进行债务重组，帮助集团在不被过去问题束缚的情况下，继续开展业务。
未来展望
新亚控股将投入更多的精力在相对更有结构和更稳定的铜产品生产领域。我们将扩大铜杆和铜线的生产规模，并开发其他铜产品以提高生产效率，从而获得更大范围的利润链。清远生产场地具备3000吨铜产品最高月产量，若铜价格维持现有水准，单清远工厂可创收月利润3000万即年利润3亿6000万。
拓展新业务将耗费大量运营资金，集团将集中资源投入现有业务。集团将在有实质性进展时适时发出通告。
持续不稳定的全球经济意味着新的行业标准，再循环产业将面临更多变的贸易环境，，特别是浮动较大的金属价格。集团已经开始重新审视现有的资本与劳动密集型的再循环和拆解业务，尤其是近期宣布的预算法案将抑制对国外劳工的依赖，以及更大的场地和仓库要求。
集团目前须把握的机遇之一是通过不同的上市公司将有发展前景的非主营业务抽离并继续发展，而集团集中精力发展主营铜业务。以此为发展思路，我们将会发掘潜力并积极拓展至采矿业。
鸣谢
代表全体董事会成员，我再次向全体股民、合作伙伴、金融机构和其他单位对于集团的坚定支持和信任表示由衷感谢。向全体董事会成员、管理层和员工，以及你们的无私奉献和不懈努力表示感激。
翁华育
董事长