|
|
|
IPO Prospectus
Summary for Prospectus Dated 11 June 2003
The following summary is qualified in its entirety by, and
is subject to, the more detailed information and financial statements
(including the notes thereto) appearing elsewhere in this Prospectus.
Terms defined elsewhere in this Prospectus have the same meaning
when used herein. Prospective investors should carefully consider
all the information presented in this Prospectus, particularly
the matters set out under "Risk Factors" before making
an investment decision.
Our Group and Our Activities
Allied Singapore was incorporated in Singapore on 31 August 1990
as a private company limited by shares. It changed its name to
Allied Technologies Limited on 12 May 2003 in line with the change
of its status to a public limited company. Allied Singapore and
its subsidiaries are principally engaged in the design and product
development, prototyping, tool and die fabrication, production
and mechanical subassembly services to cater to the different
needs of our customers who are mainly in the computer and computer
peripherals industries. Apart from manufacturing metal parts,
we have also started to produce plastic parts in December 2002
through the plastic injection moulding process for our existing
customers as a form of value-added service to complement our existing
business.
Our key customers include the Hewlett Packard Group, the Celestica
Group, the Solectron Group, the Flextronics Group, the Venture
Group, the BenQ Group and the ASUS Group. Further details of our
major customers are set out on pages 74 and 75 on this Prospectus.
We grew from having one production facility in Singapore to a
total of three production facilities in Singapore and four other
production facilities in Shanghai (PRC), Suzhou (PRC), Johor (Malaysia)
and near Ho Chi Minh City (Vietnam) respectively. As at 31 December
2002, we employed a total of 1,071 employees in Singapore, Malaysia,
Taiwan, Vietnam and the PRC.
Our Competitive Strengths
- We provide vertically integrated precision manufacturing
services
Our vertically integrated services have enabled us to be more
responsive to the needs of our customers. We provide integrated
manufacturing services ranging from design and product development,
prototyping, tool and die fabrication, production and mechanical
sub-assembly services to cater to the different needs of our
customers who are mainly in the computer and computer peripherals
industries.
- We have product design and development capabilities
We have the capability to translate an idea or concept described
by our customers into a tangible design of a metal part with
the necessary technical drawings and specifications. Our early
involvement in our customers' product development stage allows
us to provide feedback and suggestions on product design and
manufacturability, so that our customers are able to produce
quality products at competitive prices with a short lead time.
- We have tool and die design and fabrication capabilities
We have the manufacturing and engineering capabilities to provide
customers with quality tool and die design and fabrication services.
- We provide quality products and services
We are committed to providing quality products and services
to our customers at competitive prices. As an attestation of
our commitment to quality, Allied Singapore received the "Singapore
Quality Class Award" in July 2000, awarded by the then
Singapore Productivity and Standards Board (currently known
as SPRING Singapore) by achieving the standards prescribed under
the Singapore Quality Award Framework for business excellence.
- We cultivate long term business relationships with our customers
We view our customers as our long term business partners and
we cultivate the relationship and rapport upon mutual trust
and co-operation. This is evidenced by the fact that in the
last three financial years, an average of 94% of our sales is
from the same customers.
- We operate in countries with low cost structures
As part of our continuing effort to lower our operating costs,
we have located some of our labour intensive manufacturing operations
in Malaysia, Vietnam and the PRC.
- Our production facilities are located close to our customers' operations
By locating our production facilities close to our customers'
operations, we are able to respond to their needs quickly and
provide just-in-time delivery services. This enables us to serve
them more effectively, with a shorter lead time for the production
of their products.
Our Business Strategy
- Expand our product range
We aim to expand our Group's existing product range by leveraging
on our core business of manufacturing precision stamped metal
parts.
- Horizontal integration of our manufacturing capabilities to complement our existing business
We aim to provide our customers with other value-added services
which are complementary to our existing business, such as plastic
injection moulding services which we have provided since December
2002.
- Maintain a low cost production structure
We aim to improve the cost efficiency of our processes by looking
into more cost-efficient manufacturing locations and exploring
ways in which we can lower our operating costs
- Locate close to our customers' operations
We will continuously explore opportunities to locate our facilities
close to our customers operations to enable us to respond to their
needs quickly and to facilitate promptness in the delivery of
their products.
Our Future Plans
In general, our future plans in relation to our precision metal
stamping business and our plastic injection moulding business
are as follows:-
- Precision metal stamping
We will continue to market our products and services to potential
customers in the precision manufacturing industry. We intend to
use our proximity to leading MNCs in Malaysia, the PRC and Vietnam,
where our manufacturing facilities are located, as a leverage
to secure new MNC customers to broaden our customer base. We also
constantly explore opportunities to broaden our product base by
leveraging on our competency in precision metal stamping.
- Precision plastic injection moulding
We will continue to market this value-added service to our customers
to complement our manufacturing of precision stamped metal parts.
We have plans to manufacture plastic parts using insert moulding
process in our Suzhou operation in the second half of 2003.
In particular, we plan to implement the above future plans by
expanding the business of our subsidiaries as follows:
- Expand our business in the PRC
Recognizing the increasing trend of our customers setting up their
manufacturing facilities in the PRC, we plan to tap the opportunities
in the PRC market by expanding our existing production facilities
in Shanghai and Suzhou.
With the completion of the construction of our production facility
on the Second Land Parcel in Shanghai scheduled for the end of
2003, our total built-in area will be increased by approximately
20,000 sq m. The increased capacity will be utilized mainly for
tool and die fabrication, mechanical sub-assembly, warehousing
and the production of metal parts such as DVD-ROM and car cooling
systems.
We intend to use part of the net proceeds of the Invitation to
acquire new machines and equipment and to expand our warehousing
and production facilities in Suzhou.
- Expand our business in Vietnam
The purpose for the expansion of our Vietnam production facilities
is to support the operations of one of our major customers as
well as to shift some of our labour intensive projects, such as
storage peripherals and printers, from Singapore to Vietnam, with
our Singapore operations focusing on "low volume high mix"
product lines. We intend to build two production facilities, one
for manufacturing of metal parts and the other for plastic parts,
with a total built-in area of approximately 20,000 sq m. The construction
of our two production facilities is scheduled to commence in the
second half of 2003 and to be completed by the second half of
2004. We intend to utilize part of the net proceeds from the Invitation
to partially finance the acquisition of the land use rights and
the construction of the production facilities in Vietnam and for
the acquisition of new machines and equipment to expand our production
capacity in Vietnam.
|
|
|
