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Chairman's Statement

Dear Shareholders,

I am pleased to present the Company’s Annual Report for 2016.


Despite operating in a difficult environment, we were able to achieve better results for the fiscal year 2016 compared to 2015. To reward our shareholders, we are paying out dividends of SGD5 cents per share for the fiscal year 2016, an improvement from SGD4.5 cents in the previous year. We will try to reward our shareholders with good dividends if we can maintain or improve our strong performance.

The Chinese economy continued to grow in 2016, albeit at a slower pace than previous years. According to the National Bureau of Statistics of China, the Chinese nominal GDP grew by 6.7% in 2016, slower than the 6.9% achieved in 2015. Retail sales of consumer goods grew 10.4% in 2016, a slowdown from 10.7% in 2015. A recent forecast by the International Monetary Fund puts the Chinese GDP growth for 2017 at 6.5%. The Chinese economy and consumer spending should continue to grow at a moderate but slower pace over the next few years. Despite the moderately positive economic outlook, the physical store retail business remains challenging due to the lower rate of growth and competition from e-commerce.

The Group remains cautious in our business expansion. After adding three stores and closing one store in 2016, the Group will consolidate its efforts in improving the operations and profitability of the existing stores. We are actively looking at suitable sites to expand our store network even though we have no new stores scheduled to be opened in 2017. The two opened towards the later part of 2016 will be able to make a full-year contribution in 2017 so that on a weighted average basis, the gross floor area of the Group will be higher in 2017.

We are expanding our footprint in Zhangzhou by signing two 15-year leases for a 1,413 sq m store (opening in 2018) and a 15,152 sq m store (opening in 2019). The Group currently manages a store in Zhangzhou, which has been in operation since 2003. We will be adding a 6,416 sq m store in Anxi county in 2019. The completion of this new store roll-out plan will increase our current gross floor area by 15%. As profitability is our utmost concern, we prefer to be selective on new store expansion and we urge patience from our shareholders.

I am confident that our performance this year will be satisfactory and I hope our shareholders will continue to give us their support. Thank you.


Lee Swee Keng
Executive Chairman



我很高兴在此呈现公司2016年度的 年报。

尽管在困难的环境下, 我们依然在2016 财政年取得较好的业绩。在奖励我们的股东上, 我们支付股息每股SGD5c (2015 年SGD4.5c)。如果更好地表现 我们将奖励我们的股东更良好的分红。

中国经济持续增长,尽管速度比前几年放缓。根据中国国家统计局, 中国2016 年国内生产总值增长6.7%,比2015 的6.9% 慢。2016 零售销售年度增长10.4%,比2015 的10.7% 放缓。国际货币基金 组织预测未来2017 国内生产总值增长6.5%。中国经济和消费支 出将继续以温和但缓慢的速度增长。尽管适度乐观的经济前景, 但由于较低的增长率和电子商务的竞争,实体商店零售业务仍然 具有挑战性。

本集团在我们的业务扩展仍然是谨慎的。在2016 年, 我们添加了 3 个商店和关闭一家商店。本集团将会巩固其努力, 改善经营和盈 利能力。 我们正在积极寻找合适的地点扩展。虽然目前我们没有 新门店计划在2017 年开业,但是我们在去年底新开的两家门店, 泉港店和安溪火车站店在2016 年最后一个季度有颇大的贡献, 以及在2017 年将会作出满意的贡献。

我们最近分别签下了漳州一家1,413 平方米和一家15,152 平方米 门店15 年的租赁协议,这会是我们在漳州第一家自营店。比较小 将会在2018 年开业,比较大的会再过一年后开业。此外,我们也 在泉州安溪签下了一家6,416 平方米门店20 年的租赁协议,将在 2019 年开业。以上整个新门店的推出计划会在我们现有的总建筑 面积154,000 平方米额外增加22,981 平方米或大约增加15%。如 无意外,预计我们来年的业绩会保持满意。我希望各位股东能支 持我们,面对即将到来的挑战和不确定性。只要我们同心同德, 我们的企业一定会更强大。谢谢!


李瑞庆
执行主席