GENERAL MEETINGS: KEY MATTERS DELIBERATED
Type of Meeting: Annual General Meeting
Indicator: Key Matters Deliberated
Date of Meeting: 26 May 2017
Time: 09:00 AM
Venue: Function Room 4, Level 1, Ixora Hotel, Jalan Baru, Bandar Perai Jaya, 13600 Perai, Penang
|Question raised by||Question||Answer|
|1.||Tan Ze Chien||The impact on the PIB Group’s business prospect in consequent to the acquisition of Sharp by Hon Hai in 2016.||Mr. Mui Chung Meng (MCM) answered that PIB Group being part of the Hon Hai Group, would still require to go through the normal bidding process to secure any potential job hence, there will be no impact to the Group.|
|Negotiation of orders from new customers||MCM mentioned that the Group would focus more on medium and small size orders which have better gross profit margin between 8% – 12%.|
|Investor relation||MCM informed that stakeholders can write officially to Company for their concerns.|
|Existing production capacity|
Mr. David Chen (DC) replied that the production capacity are separated as follows:-
1) machinery- almost operating at it full capacity;
2) manpower – depends on the orders’ requirements
|2.||Eric Teo||Investment in Properties, Plant and Equipment (PPE) in past 5 years and its products|
Consequential to the investment in PPE for the past few years, MCM informed that the Group was able to provide a full spectrum of high value-added, integrated manufacturing services e.g. raw wire cable, wire harness, SMT, converter, metal stamping and to cater mostly for MNC companies.
The Group would leverage on the new manufacturing facilities, to secure more market shares/customers. Also, the vertical integration capabilities provides a good competitive advantage of the Group.
|Management overview FYE2017|
MCM shared that despite the top-line and bottom line of the Group were suffered in FYE2016, the Management would endeavour to secure good orders with higher profit margin and customers in coming years.
DC added that FYE2016 was softer mainly due to the strengthening of MYR against USD in Q1/2016 coupled with labour and quality issues occurred in H2’16 of the Group.
|Having slide presentation on the Group’s prospect/progress in future meeting||The Management took note on such suggestion.|
|The strength to outperform its competitors||MCM briefed that PIB Group being part of Hon Hai Group able to leverage on:-|
|3.||Chow Hong Ping||Marketing effort||MCM replied that the Group secured the orders/customers through its own marketing efforts.|
|OEM projects secured||MCM shared that the Group secured mostly OEM customers by end of FYE2016. With the new in-house R&D facilities, enable the Group to further securing ODM jobs. He added that the R&D was based in Taiwan.|
|4.||Lucas Lee||To name the Group’s competitors||MCM explained that despite operating in the same industry, the type of customers secured and products are different from the same industrial players. Hence, neither other companies/business entities nor the Group able to secure the same customers with the same products.|