Chairman's Statement

I am pleased to present JEP Holdings Ltd.’s (“JEP” or the “Group”) Annual Report for the financial year ended 31 December 2023 (“FY2023”). Despite challenging macro-economic conditions and market uncertainties, the Group delivered a commendable performance, maintaining profitability across all business segments.

In FY2023, JEP achieved a net attributable profit of S$1.7 million on revenue of S$58.1 million. While these figures show a decline compared to the previous year, mainly due to the semiconductor market slowdown, it is crucial to note the stabilization in our performance during the second half of the year.

Outlook and Strategies

In FY2023, all business segments remained profitable, with the Aerospace business experiencing a notable 51.7% increase in sales compared to FY2022. This positive trend, coupled with the anticipated recovery in the global aviation sector and the semiconductor market, instills confidence in our future prospects despite ongoing global challenges.

According to the International Air Transport Association (IATA), the industry is expected to further strengthen and become more profitable in 2024. An estimated 4.7 billion people are expected to travel by air in 2024, about 4% more than pre-pandemic levels.¹ We foresee a significant recovery in our Aerospace business, supported by volume production of complex and high-value-added parts from our strategic customers.

Despite these challenges, JEP remains committed to strategic objectives, especially in the Aerospace and Semiconductor sectors. We continue expanding our Aerospace product portfolio to meet evolving customer needs and enhancing manufacturing processes, developing innovative solutions in the semiconductor business to align with market demands.

In terms of strategies, the Group remains focused on cost reduction and operational efficiency. Our relocation to Penang, Malaysia, aims to lower operating costs, and we remain open to merger and acquisition opportunities to enhance capabilities, profitability, and market exposure.

Approach to Sustainability

At JEP, we prioritise sustainability, actively promoting corporate social responsibility through community initiatives. In FY2023, we installed solar panels at our Seletar plant, extending this initiative to our new plant in Malaysia in year 2024. Our commitment to sustainability includes good corporate governance, health and safety standards, environmental conservation, and resource efficiency. Through sustainable production practices, waste reduction, and fostering a positive workplace culture, we aim to create long-term value for stakeholders and contribute to a more sustainable future.

Appreciation

On behalf of the Board, we express gratitude to customers, shareholders, business partners, and suppliers for their ongoing support.

A warm welcome to Mr. Tan Wei Shyan, our newest Board member, leading the Remuneration Committee, and member of the Audit and Nomination Committee. Special thanks to Mr. Wong Gang, who will be stepping down before the Annual General Meeting, for his contributions.

Heartfelt appreciation goes to all staff and management for their hard work and dedication.

Mr. Andy Luong
Executive Chairman and Chief Executive Officer
JEP Holdings Ltd

Source:

"In FY2023, all business segments remained profitable, with the Aerospace business experiencing a notable 51.7% increase in sales compared to FY2022."