As the key contributor to revenue, the distribution business has gone from strength to strength. We now distribute a diverse range of products from some 45 global leading brands in their respective product categories. Our products include tyres from Yokohama, Nitto, Nankang, Nexen, Pirelli, Achilles, ATG Tires, Mickey Thompson and our proprietary brand, Neuton Tyres. In the energy solution segment, which encompasses automotive and rechargeable batteries for commercial and industrial use, our brand portfolio includes Hitachi, Trojan, CSB, Crown, Vision, FIAMM and our proprietary brand, Neuton Power. We distribute industrial products such as solar panels, inverter, chargers and UPS (Uninterrupted Power Supply), carrying brands such as Benning, Delta Q, Jinko Solar and our proprietary brand, Neuton Power. Our alloy wheel products from Enkei, OZ, Konig and Breyton and our proprietary brand, Advanti Racing, and golf and utility vehicles from E-Z-GO, Cushman and Neuton Electric, complete our distribution business.

Breaking down revenue in terms of products, the tyres segment represented about 55.9% of the distribution business, followed by the energy solution and industrial products segment at 31.9% and the wheels segment at 12.2% respectively.

The ASEAN market registered growth in sales of 4.0% to S$151.7 million, as compared to S$145.9 million. It was the only market which saw better sales. The performance was driven by Singapore (which achieved higher sales across the product groups); Vietnam (which registered higher sales in tyres and energy solution); and Philippines (which recorded higher sales in tyres). Oceania experienced a 7.2% decline in sales to S$120.9 million mainly due to lower tyre and wheels sales in Australia given the intense competition there; North East Asia, likewise, recorded lower sales of S$35.1 million, a fall of 1.5% mainly on account of the slowdown in demand in China and the ongoing China-USA trade war.

Our tyre distribution business continued to face the supply overhang in the market. Weakness in the car market for the first nine months of 2019, impacted by the general state of the external environment with weaker consumer and business sentiment also softened tyre demand.1 Furthermore, the ongoing consequences of the China-USA trade war continued the influx of Chinese tyres in the regional markets, intensifying price competition. The weakening of the Australian dollar vis-à-vis the Singapore dollar was also detrimental to our tyre distribution business in the Asia Pacific. In contrast, the demand for energy solution and industrial products strengthened due to high demand from data centres and the success of our targeted sales strategy for the automotive battery within the energy solution division.

Our alloy wheel segment also experienced weaker sales on account of the weak external economic environment as well as a shift in buyer behaviour and intense price competition in Australia and New Zealand.

We took steps to strengthen our distribution business by keeping a close watch on costs, increasing our sales channels and distribution network and intensifying our marketing and operational support for the brands in our portfolio. We incorporated a new subsidiary in Taiwan, YHI Distribution (Taiwan) Co., Ltd for the local tyre market there. In the year ahead, we will be focusing on the energy solution and industrial equipment business as we anticipate a growing demand in this segment.