We managed to turn around unhealthy business divisions and subsidiaries by a dedicated on our 3R - policy
- Reduce Inventory, Reduce Accounts Receivables, Reduce Operating Cost - which we first implemented in 2014 to counteract inflationary cost and the economic challenges we had correctly anticipated.

Amidst a backdrop of global economic malaise, continued weak oil and commodity prices, stock market volatility, political shocks in some parts of the world and resulting cautious corporate and retail spending, YHI International Ltd (“YHI” or “the Group”) registered a weaker performance for the financial year ended 31 December 2016 (“FY2016”). Nevertheless, given the onerous external factors that weighed down heavily on the Group’s businesses, we are encouraged by the substantial progress made in the areas that we had undertaken to restructure our business, rationalise our nonprofit-making assets and develop new opportunities for continued and sustained growth.

We managed to turn around unhealthy business divisions and subsidiaries by a dedicated focus on our 3R policy – Reduce inventory, Reduce account receivables, Reduce operating cost – which we first implemented in 2014 to counteract inflationary costs and the economic challenges we had correctly anticipated. Our prior efforts were directed largely towards the first two components of our 3R policy of reducing inventory and account receivables. We lowered inventory by clearing old stock and curbing excessive purchases to bring the overall stock-holding to below three months’ projected sales. Our account receivables was brought down to healthier levels through more conscientious collection methods. The results were borne out in our robust financial position with much improvement in our operating cashflow. In FY2016, we channelled more energy and focus into reducing our operating cost. Specifically, we right-sized our businesses to more closely align their operating costs and infrastructure with turnover, thus eliminating excess capacity, optimising resources and reducing wastage. We are certain these will bear results in the near future, as our previous efforts have thus far shown, making us a much leaner, nimble organisation, poised to leverage on the eventual economic uptake.

The Group posted revenue of S$465.6 million and net profit attributable to equity holders of the Company (“net profit”) of S$3.7 million in FY2016, representing a year-onyear decrease of 6.7% and 55.2% from revenue and net profit registered in the financial period ended 31 December 2015 (“FY2015”). The decreased revenue was on the back of lower sales from both the distribution and manufacturing businesses as compared to FY2015. With the exclusion of retrenchment compensation payable on the consolidation of our Shanghai wheel manufacturing operations into our Suzhou factory and the disposal gain from our Sepang plant in 2015,net profit after tax and non-controlling interests would have increased by 23.6% for FY2016 While our gross profit decreased by 6.2% to S$100.3 million as compared to the same period last year, our gross margin increased to 21.6% in FY2016 as compared to 21.4% in FY2015 on account of higher gross profit margin from both the distribution and manufacturing businesses.

The distribution business remained the main contributor to the Group’s revenue, constituting 69.6% of Group revenue. In line with the overall decrease in revenue, the business posted sales of S$323.8 million, 6.9% lower than the same period last year. Our distribution business, as with most businesses, is affected by the economic state of the markets in which we operate. Most of our Asia-Pacific markets are resource-based economies, largely influenced by commodity prices. With the decline in commodity prices, including rubber and oil prices, between 2011 and early 2016, these economies were gravely impacted, which in turn directly affected our revenue. Two other factors in the tyre distribution business impacted our profits due to downward pressure exerted on tyre prices. First was weak market demand. The second is the oversupply of tyres in the global market which also led to price competition and further margin erosion. Taking into consideration these factors collectively, our distribution business has done well to mitigate their impact on our profits through conscientious cost control measures.

The Group’s wheel manufacturing business registered sales of S$141.8 million, a 6.4% decrease in turnover. Amid the slowing global economy, the sluggish demand of Aftermarket wheels continued to weigh heavily on our wheel manufacturing business, despite an improvement in our Original Equipment Manufacturing (OEM) wheel manufacturing business in Shanghai. Despite this improvement, lower OEM subcontract prices twinned with the rising operating costs in Shanghai impacted the overall profitability of the wheel manufacturing business as a whole. With the blueprint to success in restructuring readily available in our consolidated production operations from Sepang to Malacca, we embarked on a similar restructuring plan to consolidate our manufacturing operations in Shanghai to Suzhou. In the first quarter of FY2016, we moved our precision moulding operations from Shanghai to Suzhou, realising savings in rental and fixed overhead costs. Subsequently, we commenced relocation of our wheel manufacturing operations from our factory in Shanghai into our Suzhou factory to further reduce operating cost. We plan to move the production capacity of our Shanghai factory to our Suzhou and Malaysia factories, with the moving of machinery expected to be completed by the first half of 2017. With this consolidation, we expect to raise our production efficiency and lower the wheels manufacturing costs in China. We have seen the positive results of restructuring and consolidation in our Malaysian operations. Our Malacca operations are the best performing among the Group since the consolidation of operations from Sepang to Malacca in 2015. We anticipate seeing similar positive results from this restructuring, although the cost of rationalisation is being felt immediately this financial year. The consolidation exercise has right-sized our operations in tandem with turnover, enhancing our efficiencies through the streamlining of our operations and the leveraging of greater synergies from operating only one manufacturing facility. Reduction in business costs, such as rental and fixed overheads, will also enable us to strengthen our balance sheet, conserving much needed resources for future growth opportunities.

With an effective cost management strategy encompassing our adherence to reducing inventories and account receivables, we are pleased to report that the Group’s balance sheet is in a robust state. As at 31 December 2016, we generated total net cash flow of S$44.3 million from operating activities after changes in working capital with cash and cash equivalents amounting to S$50.4 million. Total assets stood at S$402.4 million with S$242.5 million in net assets attributable to shareholders, translating to a net asset value per share of 82.97 cents per share based on the 292.3 million shares in issue. The Group’s net gearing ratio was at an acceptable 19 % as at 31 December 2016.

Despite the challenging environment, the Board is recommending a first and final tax-exempt cash dividend of 0.64 cents per ordinary share for FY2016, subject to approval at our annual general meeting to be held on 26 April 2017. This represents a dividend yield of 2% based on the closing share price of S$0.33 cents as at 31 December 2016 and a dividend payout of 50% of our net profit. Our distribution of dividends is in line with our commitment to returning value to shareholders and as a recognition for their unwavering support and belief in YHI.

There are headwinds on the horizon, despite the expected pick-up in emerging markets and developing economies as well as the projected growth in the US economy resulting from fiscal stimulus.1 Increasing protectionist rhetoric and threat of trade barriers, uncertainty surrounding the US trade policies in light of the new administration, reverberations from Brexit, China’s corporate debt situation and geopolitical factors are all downside risks to projected growth. We thus have to be prepared for more uncertain times ahead.

The gradual increase in commodity and oil prices augurs well for our tyre distribution business in particular. Nevertheless, we do not see a real turnaround occurring until at least 2018. We anticipate price competition to continue intensely in FY2017 due to the prevailing overcapacity in the tyre industry. Hence, our ongoing focus on cost management, rationalising and restructuring while exploring new sales channels and business opportunities. With respect to our power distribution business, we have incorporated a wholly-owned subsidiary in Malaysia, YHI Power (Malaysia) Sdn. Bhd. with a view to expanding our power business network in Malaysia. We will look for other such opportunities to augment our distribution business.

We expect the difficult market conditions of the wheel manufacturing business to remain well into 2017. The antidumping duty of 22.3% imposed by the European Commission on aluminum wheels imported from China entering the European Union is set to continue. With the United States adopting a protectionist stance, it is uncertain if there will be similar measures imposed for our wheels being imported into the United States, which currently has only imposed anti-dumping duties on tyres. We thus have to be prepared for such a scenario and other similar measures. Towards this end, we will continue to innovate, invest in research and development, improve our technical competencies and enhance our production processes to bring down further production costs to counter such threats to our profitability.

While we cannot control external factors which impact our business, we can and must control our internal responses to these factors. We need to determinedly focus on the 3Rs across our businesses with an emphasis on reducing operating cost through restructuring, rationalising and right-sizing of our businesses as well as raising productivity and efficiency as a counterforce to external threats and to keep up with the dynamics of business conditions. Simultaneously, we have to continue developing new business opportunities through increasing the reach and network of our distribution channels and seeking synergistic joint-ventures, partnerships or other forms of business tie-ups to widen our revenue stream and open up new markets to our products.

On behalf of our Board of Directors, I would like to express our appreciation to our customers and partners for their support during the year, and to the staff and management for their unwavering commitment and untiring efforts in helping the Group to navigate its way during these highly challenging times.
I am also grateful to our shareholders for their confidence and loyalty to the Group.
Last but not least, my deepest appreciation to the Board of Directors for their invaluable guidance and contribution during the year.
I look forward to working with our stakeholders in FY2018 as the Group prepares itself for the gradual but steady ascent to the top after weathered the worst of headwinds in past few years.

Richard Tay
Executive Chairman & Group Managing Director


根据国际货币基金组织( I M F ) 的数据,2017年全球产出增长3.7%,比较与2016年的增长率为3.2%。欧洲、日本、中国和美国的经济激增推动了全球增长。










批发业务仍然是本集团收入的主要来源, 占总营业额的72.8%。由于整体收入下滑,批发业务的销售额为3亿2千2百40万新元,比去年同期低了0.4%。








截至2017年12月31日,经营业务之总现金净额为2 千2百70万新元,现金及现金等价物达5千4百万新元。资产总额为3 亿8 千7百50万新元,归属于股东的净资产为2 亿6 千90万

尽管市场环境充满挑战,董事会仍提出2017年派发首末期股息1.5 分每股,此提案会在2018年4 月26日的年度大会中商讨决议。

截至2017 年12 月31日股票收盘价为每股0.47 分,此股息收益率为3.2%,股息支付占集团总利润的50%。集团派发股息不仅反映了对股东回报的承诺,也为了回馈股东们对友发的支持和信任。



其他问题包括中东可能出现的全球能源市场紧张局势和中国的经济低迷。尽管中国政府已将其2018 年GDP增长目标定在6.5%左右,但经济学家指出,加强地方政府债务的控制以及与美国贸易紧张局势可能会破坏中国的计划,特别在2018年头的几个月。





通过我们的子公司Y H I P o w e r(Malaysia) Sdn Bhd)以及新设立的YHI Logistics (Malaysia) Sdn Bhd,我们计划进一步加强我们在该国的影响力 - 由于车辆需求和消费者购买力的增加,预计轮胎和电力产品市场在不久的将来会出现强劲增长。

YHI Power于2016 年成立,负责向马来西亚推广电力产品,而于2018年1月设立YHI Logistics将专注于提供物流服务。

随着中产阶级和经济的增长,预计2018 年会增长5.4%,尽管面临一些挑战,但印尼仍然是集团具有强劲增长潜力的市场。

2018年,我们还计划加强我们在印尼的3M营销策略- 多产品,多品牌和多类别- 例如开发新轮胎销售渠道,专注于优质轮毂品牌市场,并扩展我们的工业电池业务。

在2017年10月我们和缅甸合伙人签署的合资协议在当地设立公司,合作伙伴是Aung San Company。这是一家私营公司,负责进口汽车产品,如轮毂,轮胎,配件,零配件和一般商品。

新合资公司YHI Aung(Myanmar)Company Limited 将在缅甸开发和建立汽车和工业产品的营销业务。

由于商品价格下跌,澳大利亚的经济在过去几年里表现欠佳,不过今年也将是另一个前景看好的市场。根据经合组织预测,2018 年澳大利亚经济可能增长3%,而2017年为2.4%。经济改善导致消费者支出增加,反映近几个月新车销量强劲。




无论2018 年经济如何,集团将继续加强内部程序和机制,未雨绸缪,做好充分准备迎接挑战。


自2016 以来,尽管我们还是把重点放在降低运营成本上,同时我们也寻找新的增长来源。今年,我们将进行“节约与发展共存”这种双管齐下的战略,即是寻求销售增长与成本控制。这包括增加分销渠道的范围和网络,寻求合作的合资企业、商业伙伴关系或其他形式的业务合作来发展新的商业机会,以扩大我们的收入来源,并为我们的产品开拓新的市场。