Sustainability
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Sustainability ANNUAL REPORT 2016 勇气 感恩。关怀 CORPORATE VISION, MISSION, OBJECTIVES,STRATEGIES AND Courage CORE VALUES 信任。尊重 Corporate Vision Gratitude & Care We are dedicated to be the world leading company in providing total machine vision solutions. 承担 Corporate Mission ViTrox, innovating vision for automation, is committed to providing the most innovative, advanced and cost effective machine vision solution of excellent quality to Trust & Respect Respect & Trust our customers through integration of our technology, our people and our strategic alliances. Accountability Corporate Objectives 诚正信实 We aim to achieve: - Excellent & world class products and services - Total customer satisfaction - Continuous growth and profitability - Long-term partnership with our customers, alliances and employees Integrity Corporate Strategies Innovation Initiate new ideas and technological breakthroughs. We believe thinking “outside the box” leads to innovation. Customer Focused Make our customers our first priority. We offer our customers the best value products and services in a timely manner, without sacrificing quality. Continuous Improvement Continuously improve our products, services, and our organization as a whole. CONTENTS 01 Contents 02 Financial Highlights 03 Principal Activities & Corporate Structure 04 Corporate Information 05 Board of Directors 06-10 Profile of Directors 11-13 Senior Management 14-15 Chairman’s Statement 16-27 Management Discussion and Analysis Financial Performance Product Innovation Operation Sustainability Research and Development As a popular symbol of virtue in classic Chinese philosophy, Sales & Marketing the traditional ink wash painting of bamboo emblemises Business Strategies ViTrox’s commitment to its core values and practices. People Orientation Graphics of printed circuit board on bamboo leaves manifest Corporate Conscience the company’s belief that values provide a strong internal 28-33 Highlights of 2016 stimulus for its growth and progress. Though slender in appearance, bamboo plants grow upward sturdily, an apt 34-35 Media News metaphor for the company’s strength and resilience; while 36-52 Sponsor Ads the plant’s characteristic straightness throughout its life 53-67 Corporate Governance Statement cycle symbolises how ViTrox is able to maintain positive 68-70 Audit Committee Report values of integrity and accountability despite factors in the 71-73 Statement on Risk Management and Internal Control external environment. Yet another parallel can be seen in 74 Statement of Directors’ Responsibilities how various segments of the bamboo embody different members of a modest, united team working together to 75-76 Additional Compliance Information forge ever better results with humility, trust and respect 77-127 Financial Statements (“百尺竿头,更进一步”). 128 List of Properties 129-130 Statistics of Shareholdings Along with the theme of “Sustainability”, the company’s 131-135 Share Buy-Back Statement corporate outlook of achieving responsible, viable growth, with strong values as its cornerstone, is succinctly 136-139 Notice of Annual General Meeting expressed. 140 Notice of Dividend Entitlement and Payment 141 Proxy Form VITROX CORPORATION BERHAD (649966-K) ANNUAL REPORT 2016 01 FINANCIAL HIGHLIGHTS 2012 2013 2014 2015 2016 Revenue (RM’000) 88,871 106,104 169,939 160,288 234,026 Profit Before Tax (RM’000) 21,556 24,807 50,023 55,730 60,920 Profit After Tax (RM’000) 20,490 24,063 49,109 44,322 64,849 Basic Earnings Per Share (Sen) 8.85 10.41 21.12 19.00 27.71 Total Equity (RM’000) 114,453 131,220 174,820 208,920 261,862 Return on Equity 18% 18% 28% 21% 25% Revenue Basic Earnings Per Share (RM’000) (Sen) 234,026 27.71 21.12 169,939 160,288 19.00 106,104 88,871 10.41 8.85 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Profit Before Tax Total Equity (RM’000) (RM’000) 60,920 261,862 55,730 50,023 208,920 174,820 131,220 24,807 114,453 21,556 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 VITROX CORPORATION BERHAD (649966-K) 02 ANNUAL REPORT 2016 PRINCIPAL ACTIVITIES ViTrox Corporation Berhad (“ViTrox”) is principally involved in investment holding and development of 3D and line scan vision inspection system. As at 31 December 2016, ViTrox has in operation three (3) wholly-owned direct subsidiaries and a wholly- owned indirect subsidiary. On 16 January 2017, ViTrox has acquired a new associate company. The principal activities of these subsidiaries and associate are set out as follows: Date of Acquisition/ Effective Name Place of Incorporation Equity Interest Principal Activities ViTrox Technologies Sdn. Bhd. 15 June 2005/ 100% Development and production of Malaysia automated vision inspection system and digital automated vision inspection equipment and modules. ViTrox International Sdn. Bhd. 7 January 2006/ 100% Investment holding for setting up foreign Malaysia subsidiaries and catering for future foreign investments. ViE Technologies Sdn. Bhd. 24 February 2006/ 100% Design, development and manufacture Malaysia of printed circuit board assemblies for microprocessor applications. ViTrox Technologies (Suzhou) 19 January 2006 100% As sales and support office. Co., Ltd. (date of establishment)/ (A wholly-owned subsidiary of ViTrox China International Sdn. Bhd.) Penang Automation Cluster 16 January 2017/ 35% Providing technological design, research, Sdn. Bhd. Malaysia value added engineering development, metrology shared services, 3-D prototyping, smart manufacturing system and technical training to the Automation Cluster Companies. CORPORATE STRUCTURE ViTrox Corporation Berhad ("ViTrox"), Subsidiaries & Associate as at 31 March 2017 ViTrox Corporation Berhad 100% 100% 100% 35% ViTrox Technologies ViE Technologies ViTrox International Penang Automation Sdn. Bhd. Sdn. Bhd. Sdn. Bhd. Cluster Sdn. Bhd. (A wholly-owned (A wholly-owned (“ViTrox International”) (An associate of ViTrox) subsidiary of ViTrox) subsidiary of ViTrox) (A wholly-owned subsidiary of ViTrox) 100% ViTrox Technologies (Suzhou) Co., Ltd. (A wholly-owned subsidiary of ViTrox International) VITROX CORPORATION BERHAD (649966-K) ANNUAL REPORT 2016 03 CORPORATE INFORMATION BOARD OF DIRECTORS EXECUTIVE COMMITTEE DATO’ SERI DR. KIEW KWONG SEN Chu Jenn Weng Chairman / Independent Non-Executive Director Chairman Siaw Kok Tong CHU JENN WENG Yeoh Shih Hoong Managing Director / President / CEO COMPANY SECRETARIES SIAW KOK TONG How Wee Ling (MAICSA 7033850) Executive Director / Senior Vice President Ooi Ean Hoon (MAICSA 7057078) YEOH SHIH HOONG REGISTERED OFFICE Executive Director/ Senior Vice President 57-G Persiaran Bayan Indah Bayan Bay, Sungai Nibong CHUAH POAY NGEE 11900 Penang Independent Non-Executive Director Tel : 604 640 8933 Fax : 604 643 8911 PROF. IR. DR. AHMAD FADZIL BIN MOHAMAD HANI Non-Independent Non-Executive Director HEAD OFFICE ViTrox Innovation Centre CHANG MUN KEE Plot 85A, Lintang Bayan Lepas 11, Independent Non-Executive Director Bayan Lepas Industrial Park, Phase IV 11900 Bayan Lepas, Penang AUDIT COMMITTEE Tel : 604 646 6227 Chuah Poay Ngee Fax : 604 646 6327 Chairman Website : www.vitrox.com Dato’ Seri Dr. Kiew Kwong Sen Prof. Ir. Dr. Ahmad Fadzil Bin Mohamad Hani SHARE REGISTRAR Chang Mun Kee Securities Services (Holdings) Sdn. Bhd. Level 7, Menara Milenium, NOMINATING COMMITTEE Jalan Damanlela, Chuah Poay Ngee Pusat Bandar Damansara Chairman Damansara Heights Dato’ Seri Dr. Kiew Kwong Sen 50490 Kuala Lumpur Prof. Ir. Dr. Ahmad Fadzil Bin Mohamad Hani Tel : 603 2084 9000 Chang Mun Kee Fax : 603 2094 9940 REMUNERATION COMMITTEE AUDITORS Chang Mun Kee Crowe Horwath Chairman Level 6, Wisma Penang Garden Dato’ Seri Dr. Kiew Kwong Sen 42, Jalan Sultan Ahmad Shah Chu Jenn Weng 10050 Penang, Malaysia ESOS COMMITTEE SOLICITORS Chang Mun Kee Zaid Ibrahim & Co Chairman Dato’ Seri Dr. Kiew Kwong Sen PRINCIPAL BANKERS Chu Jenn Weng Hong Leong Bank Berhad Siaw Kok Tong Public Bank Berhad Yeoh Shih Hoong OCBC Bank (Malaysia) Berhad HSBC Bank Malaysia Berhad RISK MANAGEMENT COMMITTEE Alliance Bank Malaysia Berhad Yeoh Shih Hoong Chairman STOCK EXCHANGE LISTING Chu Jenn Weng Main Market of Bursa Malaysia Securities Berhad Siaw Kok Tong Stock Name : VITROX Lim Yee @ Lim Wei Yee Stock Code : 0097 VITROX CORPORATION BERHAD (649966-K) 04 ANNUAL REPORT 2016 BOARD OF DIRECTORS 1 Dato’ Seri Dr. Kiew Kwong Sen 6 Prof. Ir. Dr. Ahmad Fadzil Bin Mohamad Hani Chairman / Independent Non-Executive Director Non-Independent Non-Executive Director 2 Chu Jenn Weng 7 Chuah Poay Ngee Managing Director / President / CEO Independent Non-Executive Director 3 Siaw Kok Tong Executive Director / Senior Vice President 4 Yeoh Shih Hoong Executive Director / Senior Vice President 6 7 5 Chang Mun Kee 3 2 1 4 Independent Non-Executive Director 5 VITROX CORPORATION BERHAD (649966-K) ANNUAL REPORT 2016 05 PROFILE OF DIRECTORS DATO' SERI DR. KIEW KWONG SEN Ph.D. (Hon), DPPN, DGPN, DSPN Chairman / Independent Non-Executive Director Age / Gender / Nationality Present Appointment 69 / Male / Malaysian • Chairman / Independent Non-Executive Director, Unimech Group Berhad Qualification • Chairman and President of Mini-Circuits Technologies • Bachelor of Science in Mechanical Engineering Degree from Malaysia National Taiwan University • President of Gibraltar Semiconductor, San Jose, California • Master of Science in Industrial Engineering Degree from the • President of Blue Cell Technologies, Sacramento, California University of California, Berkeley, USA • Chairman of Mini-Circuits Taiwan Ltd • Honorary Doctorate Degree by Toyohashi University of • Director of ACX Ceramic Taiwan Technology