Page 4 - ar2011

Dear Shareholders,
On behalf of the Board of Directors, we are
pleased to present to you our annual report for
the fnancial year ended 31 December 2011
(“FY2011”).
Without a doubt, 2011 has been a challenging
year for businesses both locally and
internationally. Global markets were dampened
by the escalation of the euro zone crisis. In
Singapore, the heated property market was
subject to ongoing government intervention.
The construction industry also suffered from
rising costs and increasing levies. The effects
of the developments in both property and
construction markets were also felt in our two
core Aircon and Switchgear businesses.
In the midst of poor external conditions, we
took the opportunity to further streamline
our business and focused on enhancing our
product offerings and value-added services to
clients in a timely and cost-effective manner.
Our strong expertise in air-conditioning
and switchgear solutions as well as deep
relationships forged with our clients and
business partners, strengthened Natural Cool’s
position in the industry.
Financial Review
Under an arduous operating environment,
we are pleased to report that Natural Cool‘s
Group Revenue held steady at S$136.9 million
in FY2011, as compared to the previous
corresponding period ended 31 December
2010 (“FY2010”).
The Aircon Division contributed 57.3% of
Group Revenue, recording S$78.4 million in
revenue in FY2011. Despite a delay in project
deliveries, revenue from the Aircon Division
was marginally 0.5% lesser than the Division’s
revenue recorded in FY2010.
The Switchgear Division contributed 39.5% of
Group Revenue. Notwithstanding moderation
in construction activity in the year under
review, we achieved S$54.1 million in revenue
in FY2011, a 1.9% dip from revenue in FY2010.
The dip was largely due to discounts given to
our customers in order to maintain our edge
and market share in this competitive industry.
The remaining contribution to Group Revenue
came from our Investment Division, which
recorded a 77.2% growth from S$2.5 million
in FY2010 to S$4.4 million in FY2011. This was
largely due to rental income generated from
our properties located at Tai Seng Avenue,
Kranji and Benoi Crescent.
Geographically, Singapore remains as our main
revenue contributor, comprising over 96.5% of
total revenue. Going forward, we will continue
to capitalise on our strong brand recognition
and successful 20-year track record in the
Joseph Ang
Chief Executive Offcer
Steven Chen
Executive Chairman
Letter to
Shareholders
NATURAL COOL HOLDINGS LIMITED
Annual Report 2011 2