Operation Reviews
For management purposes, the Group is organised into business units based on their products and services, and the Group is organised on a worldwide basis into four reportable operating divisions, namely:
- hard disk drive components which include voice coil motor ("VCM") plates, disk clamps and air combs;
- precision metal stamping components which mainly include sheet metal machined parts and stamped parts, prototypes, stamping tool design and fabrication;
- automotive components which include car seat track adjusters, car seat recliners and hydraulic steering components; and
- re-rolling steel which include precision cold-rolled steel.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.
Remarkable FY2011 performance
Driven by the outstanding performance of our core businesses – HDD and automotive components, FY2011 has been a period of rapid growth for Cheung Woh. The Group achieved a record net profit of S$17.4 million in FY2011, up 28.8% from S$13.5 million in FY2010. The stellar rise in earnings was supported by strong yoy revenue growth of 21.9% to S$151.4 million. Despite facing headwinds from rising raw material costs, the Group's continuous effort in improving manufacturing process and management structure enabled the gross profit margin to remain relatively firm at 23.1% in FY2011 compared to 23.5% in FY2010.