In FY 2006/07, the Malaysian economy grew at a steady pace. Although fuel prices remained high, its inflationary effects appeared manageable.

Against this background, I am happy to report that the Group continued to make good progress. For the year reviewed, the Group achieved a 25.1 per cent increase in turnover to RM57.4 million from RM45.9 million previously. The Group pre-tax profit also improved 48.4 per cent to RM2.6 million from RM1.7 million previously. Net profit was RM2.1 million against RM1.2 million in the previous financial year, an increase of 73.0 per cent.

Since listing on the MESDAQ market of Bursa Malaysia in 2005, the Group has invested more than its profits into strengthening its operations.

While this strategy has affected our bottom-line in the past two years, our operational capacities and capabilities have been upgraded significantly in the long term, giving us an excellent edge in the industry. We need to achieve such superior positioning to take advantage of the many opportunities that will come along with changes in business environment as globalisation is having its impact on the Malaysian economy.

In this era of globalisation, carriers must re-align and integrate their operations into their customers' supply chain mechanism to satisfy customers' requirements, particularly in outsourcing. We need to overhaul our facilities, organization structure, processes as well as our mindset

Today, the Group's operations and processes are much more synchronised and more modular, enabling us to fulfill many of the industry's unique needs.

For the year under review, our Group has done the following:

The Group is still operating in a high growth phase in the dynamic express carrier industry. In view of this, our Board feels we should continue to retain earnings to feed our rapid growth.

Good corporate governance is the cornerstone of any effective well-run organization. We see integrity, honesty and transparency in dealings as crucial to a company's reputation and in building investor confidence. The Group has completed its risk management and internal audit exercise and will pursue the external audit exercise in the current year. We will continue to do the internal audit and monitoring of the risk indictors and will embark on the review and documentation of internal control system.

The liberalisation of world trade has brought many changes to the express delivery industry. Competition has become more intense. While some express carriers are upgrading their capabilities, others are resorting to price undercutting to attract business. The entrance of international courier players into the domestic arena poses even greater challenges. At the same time, customers require a more integrated approach to meet their rapidly evolving logistical requirements. Our Group has foreseen and embraced such developments.

Meanwhile, the industry faces continued increase in operation costs. Over the past two years, we experience hikes in fuel, wages, freight, operational supplies, rental and other overheads. Our approach to such challenge is to instill a culture of creativity throughout our organization to develop innovative and efficient methodology in operations.

Express carrier is a service organization. It relies heavily on human capital. For the base and middle level staff, our challenge is to impart skills and values into them, upgrade their individual competencies and retain them.

For the middle to senior level, we faced a shortage of talents to field our rapid expansion. Our Group recognises this as the greatest challenge in the long run. We have put in place and constantly upgrade a comprehensive Human Resource management programme to seek, train, develop and retain our people. Our goal is to provide a promising career path for everyone in the organization.

Our group is fully prepared for these challenges by continuously upgrading our capabilities towards international standards, focusing hard on improving productivity at all levels and empowering our human capital.

Many companies have come to realize that with globalisation, it is more beneficial to outsource their non-core activities, particularly transportation and delivery needs to professional carriers.

This together with the growing adoption of "Just-in-Time" stock management policy has opened up the window of opportunity for express carriers.

The roll-out of the Ninth Malaysian Plan will open up many opportunities for express carriers. After our rapid build-up of infrastructure, networks and capabilities in the past few years, our Group is in a good position to tap such opportunities.

The Group will continue to focus on solution-based approach to express delivery as it aligns its policies to meet the demands of an increasingly sophisticated express delivery market.

The Group also plans to introduce more performance measurements to gauge the KPIs (key performance indices) of the whole organisation.

Last but not least, the Group will continue to invest in our processes to enhance our strategic position and to ensure that we meet the expectations of our customers. We look forward to another year of continuous growth and hope to emerge in a better position in the industry.

I would like to thank the management and staff for their continued dedication and untiring efforts to expand the Group. Their support and commitment has brought us to where we are today.

My sincere thanks and appreciation also go to our customers, vendors, business associates and the various statutory and government bodies which have facilitated the Group in its operations.

I would also like to thank our shareholders for their patience and confidence in us as we continue to re-invest our profits for a better tomorrow.

Last but not least, I would like to commend my fellow board members who have fulfilled their commitment and obligations admirably to the board.

Thank you for all your valuable contributions. I look forward to another challenging year ahead.