Chairman's Message

Dear Shareholders,

I am pleased to report that our Group has recorded a profit position for two consecutive years. The Group’s net profit increased significantly from S$0.3 million in FY2006 to S$2.2 million in FY2007. Earnings per share rose from 0.37 cents in FY2006 to 2.10 cents in FY2007.

We had devoted considerable efforts to improve our cost control, optimization in capital utilization and productivity in FY2007. Our production orders in Malaysia had increased significantly due to the implementation of strategic initiatives to strengthen relationship with our major customers. Our Group has further strengthened our automotive capabilities in our Thailand plant to support the production requirements of our customers.

Outlook

As competition in the metal stamping industry intensifies, we expect operating business conditions such as the continuing pricing pressures to remain challenging. Our Group will strive to gain cost effectiveness internally through the better utilization of manufacturing capacity and management of raw materials usage.

Overall, I am optimistic that our Group will remain profitable for the financial year ending 30 June 2008.

Appreciation

I would like to take this opportunity to thank our team members throughout our Group for their dedication, drive and support. I would also like to extend my appreciation to customers, bankers, suppliers, business partners, and shareholders for their faith and continued support in CFM.

Ip Kwok Wing
Executive Chairman