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8

AEMULUS HOLDINGS BERHAD

A N N U A L R E P O R T 2 0 1 6

Chok Kwee Bee

Senior Independent Non-Executive Director /

Chairman

CHAIRMAN’S STATEMENT

Industry Landscape

Despite signs of rebound in the market in recent months, the Semiconductor Industry Association announced that global

semiconductor sales in 2016 will remain flat at $335 billion, only 0.1% lower than 2015’s performance.

However, slow down in the global mobile phone market and smart devices market coupled with numerous volatile economic

and political events throughout the year had an impact to our overall performance. The industry was certainly challenging

in 2016 as we seek to double our efforts on all fronts in seeding business developments to increase our market share and

uncover growth opportunities.

The market share of smartphone has shown a shift from non-China-based smartphone vendors to China-based vendors. In the

last quarter of 2015, the top two non-China-based-smartphone-vendors and the top three China-based-smartphone-vendors

has 39.1% and 14.8% worldwide market share respectively. In the third quarter of 2016, the numbers changed to 33.5% and

22.3% respectively, or a change of -5.6% and +7.5% respectively.

The shift demanded increased investment and focus in China. At the same time, such increase would take one to two years

to produce significant results.

Dear Fellow Shareholders,

On behalf of the Board of Directors, I am pleased to present you the Annual Report of

the Company for the financial year ended 30 September 2016 .