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AEMULUS HOLDINGS BERHAD
TA R G E T I N G T H E B U L L’ S E Y E
CHAIRMAN’S STATEMENT
(Cont’d)
Financial Performance
For the financial year ended (FYE) 30 September 2016, the
Group recorded revenue of RM21.98 million, a decrease
of 32.55% year-over-year and a loss after tax of of RM2.74
million in the financial year. The main contributor was due
to a drop in revenue from our enterprise storage market
segment which recorded revenue of RM2.1 million, a
decrease of 81%, as compared to FYE2015. As this market
segment requires a high level of testing capability, effort and
time, deployment for test solutions exhibit longer gestation
periods. Nevertheless, with increased commitment in
resources and technology development, we strive to achieve
higher revenue for this segment in FYE2017. Contributions
from our mobile devices segment remained consistent but
modest due to overall slow down in the mobile device
industry.
Revenue contributions from the Far East markets like China,
Taiwan, Korea and Japan during the financial year has been
encouraging and has outpaced contributions from other
regions. To that effect, we have increased investments in
human resources and talent to grow these markets with
immense potential.
Operational and Corporate Overview
With the funds raised from the Initial Public Offering (IPO),
we have been mobilizing our efforts on research and design
into a wider scope of radio-frequency (RF) application
solutions which will continue to pave the way for new and
better product innovation for our customers. The mobile
devices segment will continue to be our core strength as we
up the pace of technology investments and regional market
expansion in this space. Our R&D efforts are also focused on
discovering high growth segments for non-RF applications
as well.
As a reflection of our belief and commitment to high
potential markets in the Far East Region, we have set up our
maiden international operations office in Taiwan during the
financial year.
While increasing our R&D effort and spending, as well
as sales and marketing activities, we implemented new
strategies in our supply chain and manufacturing in order
to improve efficiency and costs. These strategies include
change in organization structure, implementing new process
flows and strengthening the role of material planning and
procurement. We shall be able to see improved margin in
the long run.
Prospects and Outlook
Despite the challenging and volatile environment in 2016,
the Semiconductor Industry Associations, quoting from the
World Semiconductor Trade Statistics, expects to see sales
in semiconductor growing by 3.3% to $346 billion in 2017.
Growth markets are no less surprising to be in the Asia
Pacific region while high potential areas will be in the space
of RF, sensors and mixed-signal devices which have been the
focus of Aemulus. At the same time, leveraging on existing
platform, we shall design and enhance our tester offerings
to different vertical market.
2016 was a year of change in the smartphone market
landscape as we saw mainstream China-based smartphone
companies including heavyweights like OPPO Electronics
and Vivo Electronics contributing more than half of the total
worldwide smartphone shipment. The drive towards local
content in smartphones has become a trend. Therefore, our
focus in business shall tap into these markets and trends that
will require us stay close to technological developments that
enable us to capture more business potential in 4G and the
imminent 5G technology.
Other recent headways which we believe will be drivers
for further growth was our partnership with Peregrine
Semiconductor Corporation, a leading California-
based manufacturer of high performance circuits, in the
development of new microwave test capability. This is an
important milestone for us to continue to expand our market
reach beyond RF. Microwave frequency (µWave) test solution
is widely used in anti-collision radar system in automobiles.
We foresee an eventual need for µWave devices for
autonomous vehicles and vehicle collision prevention which
will drive our revenue stream in the future.
Another partnership that we are excited about is the signing
of Memorandum of Understanding (MoU) with Shanghai
Testrong Technologies Co., Ltd which will be the start of a
close international co-operative effort in sales and marketing
of Aemulus’ RF Test System to new customers in China.
Undoubtedly, this partnership shall extend our market
coverage and penetration in the Far East markets.
Being witness to the dedicated efforts of the management
team and employees of Aemulus, the Board is optimistic
that the continuous talent and technological investments as
well as strategic partnerships will bear positive results and
propel the Group forward in 2017.
Acknowledgements
Onbehalf of theBoard, I would like toexpressmy appreciation
to our Chief Executive Officer and the management team
and employees of Aemulus for their dedication and loyalty.
As always our appreciation extends to all our business
partners who have believed and supported us throughout.
Last but certainly not least, we thank the shareholders for
your trust in Aemulus and we wish all a prosperous 2017
ahead.
CHOK KWEE BEE
Chairman
18 January 2017