Chairman's Statement
Extracted from 2007 Annual Report
Dear Shareholders,
It is my pleasure to address you once again,
古人说, “先有伯乐, 后有千里马. 千里马常有而伯乐不常有, 固虽有明马, 却只辱与奴群人之手, 不以千里称也.＂
As the ancient Chinese saying goes, “Without being recognised and given the support and
nurturing, a good horse, and there are many good horses, will remain but a good horse and not
become a ‘thousand-mile’ horse.”
Since our beginning, BH Global has received the recognition and support from many friends and business associates to achieve
the success that it has today. At this juncture, let me say a word of thank you to these old friends. Without these old friends
who recognized the ability and potential of and nurtured BH Global, we would not have had the opportunity to display our
capabilities and fulfil our potential to becoming a ‘thousand-mile’ horse..
This thousand-mile horse started to gather pace in FY2006 and continued its momentum into FY2007.
We had a successful FY2007. BH Global had more business and generated more income for our shareholders this year. Turnover
jumped 39% to S$81.9 million. Net profit surged by 56% to S$17.5 million, an all time high. We have proposed a 1-for-2 bonus
shares issue to increase the liquidity of the shares, which we hope would attract more institutional investors onboard. We paid
out a record tax-exempt dividend of 1.2 cents per share (based on enlarged share capital after the proposed bonus shares issued)
to reward our loyal shareholders.
When we were listed on 12 September 2005, our primarily objective was to raise funds and build a business to last. A business
where all shareholders are treated equally with respect and gratitude. Today, that belief remains firmly in our business philosophy.
We would continue to build on our strength and confidence to be a leader in our industry – a leader for many more years to
come.
In 2007, we implemented what we said we would. We have expanded and diversified our customer base in both Singapore and
the global markets, enhanced our product range and increased key value-added services such as project management services
and warehousing support. I am happy to update our shareholders that we executed our plans smoothly and achieved highly
satisfactory results in 2007. Let me elaborate :
1) Expanded warehousing facilities to enhance its supply chain management capabilities. The Group has recently announced the
successful acquisition of 10 Penjuru Lane. The property is approximately 11,700m2. This property is adjacent to BH Global’s current
headquarters at 8 Penjuru Lane and will be an addition to the existing land area of 8,533m2.
2) Increased the range of products and services. On top of the current distributorships, on 16 January 2008, the Group was
appointed by, global cables leader, Prysmian Group as its sole distributor in Asia Pacific region for its Prysmian range of marine
cable products. Prysmian’s cables rank among the top selling brands in marine cables. This sole distributorship will enhance BH
Global’s product offering to our customers
3) Added more value-added services. Aside from the physical supply of cables and lighting products to customers, we have
identified key value-added services such as project management and warehousing support. This includes working with customers’
engineers to develop optimal solutions so that costs and wastage are kept to a minimum. Such services improve the Group’s
operating efficiency and enhance profit margins.
Over the years, we have indeed moved up the value chain. BH Global is no longer just another distributor of quality electrical
lighting equipment and cables. We have started to establish our position as a supply chain manager to the ship owners, operators,
chandlers and shipyards. Looking ahead, we hope to cement that image in their minds.
We won several awards this year. In May 2007, the Company was awarded the Merit Award for Best Investor Relations for a
newly listed company at the Singapore Corporate Award (SCA). In September 2007, we were selected by Forbes Asia as one
of the “200 Best Companies Under A Billion” in Asia Pacific in 2006. The winners were drawn from a list of over 22,500 listed
companies in the Asia Pacific. In October 2007, BH Global scored a total of 72 points out of a possible 100 to rank 32nd out of
672 companies in The Business Times Corporate Transparency Index. Just in February 2008, we won another accolade – Singapore
Corporate Awards -- Silver Award for the Best Investor Relations for Companies under S$500 million market capitalization. It
caps a fine year indeed.
Reflecting on our growth in the past few years, our prospects have never looked brighter. BH Global is expanding fast. We are
growing our warehousing facilities to cater to the increased demand for our products and services. We have strengthened our
earnings fundamentals resulting in our remaining confident about the Group’s outlook in the near future.
Currently, the Group is exploring M&A opportunities so as to expand its regional presence across strategic markets in Asia. This
includes the Middle East and China, where the shipbuilding industry is enjoying robust demand. The Group is exploring several
potential strategic local partners in this area.
Broadly speaking, I am optimistic about the sustainable growth of BH Global in the near term. However, I do have to caution
against being overly confident. The US Subprime crisis looks to have a larger than expected impact on the US and global economy.
The weakening US dollar, though not having any direct impact on us, may indirectly affected our customers. China is also looking
to control its inflation worries and may curb demand by tightening its fiscal and monetary policies. We have to monitor the
situation carefully.
On behalf of the Board, I wish to thank the management team and all our staff for their hard work and commitment to the
Group. To our customers, suppliers, bankers and business associates, thank you for your support, which has given us better profits,
improved share price performance and better shareholder returns. Thank you once again.
Alvin Lim Hwee Hong
Executive Chairman
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