主席致词

Extracted from Annual Report 2006

The year 2006 saw another year of high price volatility for natural rubber. Prices shot to an all-time high of US$2,437 per ton level near mid-year and thereafter fell steeply to the US$1,470 per ton level, led by several months of bear-run. However, the presence of adverse weather
conditions, the political situation in Thailand, and the strong demand from China have helped to lift prices to the US$1,842 per ton level by year end. Despite the price volatility, the fundamentals remain strong.

Both Hevecam SA and Tropical Rubber Cote d’lvoire have done extremely well. Combined shipments of finished goods reached a high of 55,660 metric tons, the record export volume for the Group. This was made possible with increased purchases of raw materials from
smallholders and outgrowers, besides a steady production base from our own plantations. The increases in prices and production volume was instrumental in their 2006’s excellent profit performances. These factors had also mitigated part of the operating cost increase
due mainly to a higher Euro currency and higher fuel prices.

I am pleased to report that the Group’s net profit attributable to shareholders was S$42,957,334 for the year 2006. Compared to the previous year, this represents an increase of S$31,117,053. Total turnover registered S$175,932,078 compared to S$103,015,638 in
2005. Overall, the Group’s financials have improved substantially. In view of the excellent results, I am pleased to report that your Board has proposed a first and final one-tier tax exempt dividend payout of 0.5 cents per ordinary share to be paid in respect of the
2006 performance.

Our future direction is to strengthen our focus in expanding growth opportunities in Asia and Africa to enhance the long-term value of our shareholders. On 25 October 2006, the Company had announced the signing of a Memorandum of Understanding to participate in a 51% Joint-Venture in PT Bumi Jaya, a new natural rubber processing plant in Tanjung Area, Tabalong District, South Kalimantan. We will continue our active efforts to look at other viable opportunities to strengthen our growth plan. In Cameroon, the new plantings programme continue, though the progress has been slowed in 2006 due to weather constraints, and delay in securing major service providers.

We are reasonably confident of 2007, as the market fundamentals and sentiments are likely to support existing high natural rubber prices, though prices will continue to be volatile. Therefore, the Group is confident that its positive performance will continue unless unforeseen circumstances prevail or should the natural rubber prices take a downturn.

In closing, the Board and Management would like to express their thanks and appreciation to our shareholders, customers, business partners and associates, management and staff for their strong commitment and hard work in achieving this excellent result. I also thank the Board of Directors for their leadership and support.

Yudson Gondobintoro
Chairman of the Board