Prospects

The world FPC market is likely to be affected by the current economic crisis. However, based on research data we believe that the handset segment of the FPC market is expected to grow further.

The group expects FY2009 to be another challenging year for its FPC business. Significant progress in its diversification efforts in 2008 were fruitful with several customers who are market leaders in their respective fields. Product development activities resumed with one of our major customers. A healthy flow of new programs and developments has been geared up for launch in 2009. Investment in equipment and capacity was carried out in FY2008 in anticipation of the new capacity requirement in our production sites in China and Malaysia.

However, the group does not expect contributions from these activities until after the second quarter of the new financial year. The FY2009 result will be dependent on successful and timely launch of the new programs by our key customers and our ability to effectively execute the plan for providing the production and engineering resources to support the new launches. Barring any other unforeseen circumstances the above will be crucial to our performance in 2009.

We remain positive about our PCB business, but we do not rule out the impact of the global economic crisis on our production plans.