 |
Home > Investor Relations > Chairman Statement |
 |
|
|
|
|
|
CORPORATE GOVERNANCE
The Board is unwavering in our view that maintaining high standards in corporate governance
practices within the Group is crucial in laying a stable foundation for sustainable growth
of the Group.
With this in mind, the Board is committed to implementing business strategies that are in
line with the Group’s vision and deemed to be value-accretive in nature in order to generate
sustainable business growth, and in so doing, protect and maximize shareholders’ value.
The Board also constantly reviews its practices to ensure that the objectives of the Board
and management are aligned to those of our shareholders.
In the larger scheme of things, we are steadfast in ensuring transparency in our business dealings,
as they will go a long way in building a positive corporate reputation amongst our stakeholders
including business associates, and contribute in no small way towards enhancing the business prosperity
of the Group.
The measures undertaken by the Board to maintain and improve on our Corporate Governance on a
Group-wide basis throughout the year under review are highlighted in the Corporate Governance
Statement in this Annual Report.
ECONOMIC AND FINANCIAL OVERVIEW
The Group has experienced challenging times in recent months as the impact of the global financial crisis dampened
the performance of the market activites, as well as the Information Communications Technology Sector.
The Group registered revenue of RM241.5 million for the current financial year as compared to the RM317.1 million
recorded in the previous financial year.
The Group made a profit before taxation of RM3.1 million as compared to a profit before taxation of RM10.3 million
for the previous financial year. Group recorded profit attributable to shareholders of RM3.0 million, 67.5% below
the RM9.4 million registered in the previous year.
CORPORATE DEVELOPMENTS
On 26 December 2006, the Group had received approval from the Securities Commission (“SC”), and subsequently
from shareholders on 2 8 March 2 007, to undertake a Proposed Special Issue of up to 73,000,000 new Special
Issue Shares to Bumiputera investors.
However, on 16 April 2 008, the Company completed a bonus exercise and the issued and paid-up share capital of
the Company was increased to RM44,199,740 comprising 441,997,400 Mangotone Shares (“Bonus Issue”).
Consequent to the Bonus I ssue, on 11 D ecember 2 008, the Company has resolved to revise the maximum issue
size of the Special I ssue from 73,000,000 new Mangotone Shares to 189,800,000 new Mangotone Shares in order to meet
the objective of the Special I ssue of complying with the Government’s National Development Policy requirement
of a minimum of 30% Bumiputera equity interest.
The revision to the issue size of the Special I ssue has been approved by the Ministry of I nternational Trade and
Industry on 22 January 2009.
On 25 March 2 009, the SC had approved Mangotone’s application for a further extension of time of up to six months
commencing from the date of the approval, for the Company to comply with its Bumiputera equity condition.
On 11 December 2 008, the Company announced that it proposed to transfer the listing of and quotation for the
entire enlarged issued and paid up share capital of the Company from the MESDAQ Market to the Main Board of
Bursa Malaysia Securities Berhad (“Proposed Transfer”).
Later, on 21 April 2 009, the Company announced that it has resolved to defer the Proposed Transfer after taking
into consideration the prevailing economic conditions and accordingly had withdrawn the submission made to the
SC in respect of the Proposed Transfer.
Finally, the Board has proposed to change the name of the Company to Mangotone Group Berhad, to reflect our
new corporate direction moving forward. This proposal is subject to shareholders’ approval at the upcoming Annual
General Meeting.
|
| Top |
TAKING FORWARD STRIDES
Looking ahead, we are no doubt in for even more challenging times ahead. The Group determined to sustain its
growth in the coming years with the implementation of three key thrusts.
Firstly, the Group will step up efforts to improve its operational efficiency through increasing the productivity of its
employees and maintaining cost efficiency in the running of the Group’s business.
Secondly, the Group will move deeper into expanding its retailing reach into various geographical areas in Malaysia
through a franchise concept. The franchise concept will entail the introduction of the ‘Mangotone Boutique’ throughout
the country – which is a smaller scale than the existing Mangotone IT concept store. The Group had obtained its
Franchise L icense as a Franchisor in IT from the Ministry of Entrepreneur And Co-operative Development on 17
February 2009.
Finally, the Group will embark on a slew of aggressive marketing and brand-building activities throughout the year,
particularly to highlight the numerous value deals at our I T concept stores, and enhance top-of-mind awareness
amongst the Malaysian public.
I am confident that all these will position the Group to be ready when the market turns around.
CORPORATE SOCIAL RESPONSIBILITY (“CSR”)
We have always upheld CSR as one of the fundamental tenets in carrying out our business; upholding our duty to
create value for our employees, shareholders, and the general public.
Among such measures are:
• Teaming up with industry leaders in retail and IT to initiate the “Get IT” campaign to launch the affordable PC
packages to enable the low to middle-income population experience the digital lifestyle.
• Launching the FTEC Smart Book targeted at pre-school to primary education children as an educational tool
and to enable them to access the mainstream technology.
• Continuous sponsoring the FTEC’s educational notebooks to Orphanage and Charity Home.
APPRECIATION
To conclude, I would like to thank our Board members, past and present, and would like to express my deepest
appreciation to the entire Mangotone team for the cohesive efforts and dedication to attaining the Group’s success
thus far. I would also like to acknowledge the support of our business associates, partners, shareholders and
customers throughout the year.
|
|
GEN (R) TAN SRI YAAKOB BIN MAT ZAIN
Independent Non-Executive Chairman |
|
|
|
|
|
|
|
|
|
|
|
|
 |
|
| View updated announcement |
|
| more |
|
|
 |
|
|
