A N N U A L R E P O R T 2 0 1 6
In FY2016, net cash used in investing activities amounted to approximately
S$7.1 million. This was mainly attributable to renovation and construction
costs for the Group’s New Factory, and the purchase of plant and
equipment for the Group’s New Factory and retail outlets.
Net cash used in financing activities amounted to approximately S$4.3
million in FY2016. This was mainly due to dividends paid, and repayments
of bank loan and finance lease liabilities including interest paid, partially
offset by proceeds from bank loan.
Significant Developments
In the financial year ended 31 March 2014, the Group commenced
construction works for our new factory facilities in both Singapore and
Iskandar Malaysia. The construction works for 4 Woodlands Terrace and
Iskandar Malaysia have been fully completed during FY2016 and both
factories are expected to be fully operational in the coming months.
Currently, the Group is undertaking reconstruction works for a new factory
facility at 2 Woodlands Terrace. When the reconstruction works at 2
Woodlands Terrace are completed in the coming months, it will be fully
integrated with the adjacent New Factory.
The integrated factory facilities at 2 and 4 Woodlands Terrace will feature
modern technology and machinery that will further improve our food
consistency, labour efficiencies and space productivity. The enlarged food
facilities both in Singapore and Iskandar Malaysia will provide a sound
platform to organically grow our business both locally and regionally.
Going Forward
As the labour shortage situation in the Food & Beverage sector shows
no signs of abatement, labour costs are expected to continue trending
upwards. The Group will continue to explore ways to improve the
efficiency and profit margins of our various business units. These include
strengthening our brand positioning, product offerings and process flow,
and tapping on the strong support from government agencies whenever
possible.
While theGroup expects rental and rawmaterials costs to remain elevated,
we will continue to manage these costs through various strategies. These
include improving raw materials management, increasing productivity at
our production facilities using state-of-the-art machinery, and introducing
further enhancements to our popular product range.
60
th
Anniversary of Old Chang Kee
2016 marks 60 years since Old Chang Kee was founded in 1956. To
commemorate our 60
th
anniversary, the Group is pleased to announce a
one-off special dividend of 3 Singapore cents per ordinary share, subject
to the approval of the shareholders at the upcoming Annual General
Meeting of the Company.
The proposed one-off special dividend, together with the interim and
proposed final dividend, will bring the Group’s full year dividend payout
for FY2016 to 6 Singapore cents per ordinary share, in line with our 60
th
year anniversary celebrations.
Dividends
The Directors have proposed a final dividend of 1.5 Singapore cents
per ordinary share, and a special final dividend of 3 Singapore cents per
ordinary share for FY2016.
Acknowledgement
60 years is not a short time in business for a homegrown Singaporean
brand, and it would not be possible without the steadfast support from
all our stakeholders.
I would like to express my heartfelt appreciation to our customers for their
continued patronage, and our shareholders, Directors, bankers, strategic
business partners and our staff for their continued support.
HAN KEEN JUAN
Executive Chairman
