On behalf of the Board of Directors of Yikon Corporation Bhd, it is my pleasure to present the Annual Report and Audited Accounts of the Group for the financial year ended 31 December 2009.
The Group recorded a turnover of RM14.5 million in the current 12 months financial period which is a decline of 72.2% as compared to the previous 14 months financial year. The drop is due mainly to the shut down of one of its subsidiary factory operations in Penang, Malaysia, in May 2008 and also the shut down of the one of its subsidiary factory operations in ShenZhen, China, in March 2009.
Loss before tax for the 12 months period ended 31 December 2009 was RM7.79 million, a reduction of 41.2% as compared to the RM13.25 million loss in the previous financial year. The losses incurred in the current period included loss arising from disposal of investment in an associated company, namely Fu An Jewellery Sdn Bhd which amounted RM16,811 and hedging loss of RM2.7 million in an overseas subsidiary, namely Yikon (HK) Limited. Loss for the financial period was cushioned by gain on disposal of property, plant and equipment amounted to RM1.47 million in one of its subsidiary company in Malaysia, namely Yikon Jewellery Industry Sdn Bhd.
During the period under review, consequence to the Group’s objective to focus on the retailing operations in China, the Group disposed of the property, plant and machinery of its wholly-owned subsidiary, particularly Yikon Jewellery Industry Sdn Bhd (YJI) which ceased its manufacturing operations in May 2008.
The Group also ceased the non-performing manufacturing segment in China in March 2009. In August 2009, the Group disposed of its 45% equity interest in Fu An Jewellery Sdn Bhd due to the non-performance of the joint venture company.
As at the end of year 2009, the Group has 16 outlets in China. Some of the non-performing outlets were relocated during the year. The Group planned to further improve on its China presence by further strengthening the Yikon brand in the China market.
The jewellery industry in China is foreseen to offer good growth prospects. Retail sale in China is expected to improve as the Group’s retail brand are gaining acceptance with the intensified brand building effort taken. However, the Group’s performance will be largely dependant on the stability of the global gold price and the resulting consumer sentiment.
I would like to thank the previous member of the Board, namely Mr Chin Kok On who retired during the year for his contribution as member of the Board.
I would also like to express my sincere appreciation to the management team and the ex-employees of the Yikon Group in Hong Kong for their dedication and contribution to the Group, the bankers, auditors and solicitors for their services and assistance and the shareholders, customers, business associates and government authorities for their support over the years.
I look forward to the support of the Board members in facing the challenges ahead.
Dato' Noor Ahmad Mokhtar Bin Haniff Chairman 20 April 2010
Annual Report 2009