It was an extremely hectic and challenging year as the Group underwent a major revamp of its operations while preparing the groundwork for regional expansion. No stones were left unturned as we strived to strengthen every aspect of our operations - organisation structure, human capital, systems and processes, infrastructure as well as product mix. On the global front, plunging oil and commodity prices threatened to derail our country's economic success but the timely introduction of the Goods & Services Tax (GST) on the domestic scene, and a modest recovery in commodity prices in the latter part of the year staved off what could have been a severe downturn. Meanwhile, the competition for express delivery services remained intense. Our Group nevertheless continued to work hard to deliver another year of profits. For the year ended 30 June 2016, our Group recorded a 28% increase in group profit before taxation to RM40.2 million from RM31.3 million. Group profit after taxation increased 22% to RM34.4 million from RM28.3 million. This was achieved on the back of a 12% increase in turnover to RM219.8 million from RM196.8 million.
For the year under review, the Management focused on developing and strengthening our resources in the face of stiff competition and in preparation for our regional expansion. We have re-structured the Management team to be in line with our regional plan. We have also recruited new executives and re-positioned the existing executives to positions where they are likely to grow and flourish. This is part of our policy to retain talents and to provide upward mobility to our employees.
The Management introduced various refresher courses and advanced training courses to prepare executives for their new roles and responsibilities. This exercise has streamlined and strengthened the Management, resulting in the workforce becoming better trained, more focused and committed to their work.
As demand for express delivery service continues to grow, we have to expand our workforce in tandem to cater for the increased demand. As part of our Review of Operations by the Chief Executive Officer cont'd recruitment efforts, we have introduced an apprentice programme to attract the best talents to join our workforce.
Our manpower strength increased to 2,984 from 2,676. As it is our HR policy, all new employees are required to undergo basic training, including product knowledge, familiarisation with GDEX culture and corporate philosophy. Our employees, both new and existing, clocked in some 31,354 man hours in training compared to 29,763 man hours in the previous year.
The intensity of competition, both from local and international players, requires the Group to continue developing and enhancing our systems and processes, products and services. For the year under review, we have invested RM10.6 million to further strengthen the capabilities and capacities of our systems and processes.
We expanded our vehicle fleet size to 654 from 578 and raised the carrying tonnage capacity to 1,682.5 tonnes from 1,436 tonnes.
Our warehouse operation continues to grow and we are planning to acquire additional warehouse space in the near future to meet growing demand.
The Group has a new strategic tie-up with the Yamato Group from Japan and continue to have the support of the existing international partners. For Indonesia, we currently have a Representative Office in Jakarta and are looking to see how we can integrate more business transactions with Pos Indonesia.
We have a pro-active Investor Relations programme in place, whereby we meet regularly with investment analysts and fund managers to update them on the latest developments as well as answer their queries on GDEX activities.
As a responsible corporate citizen, it is our duty to ensure future generations continue to enjoy what we have currently, in terms of natural resources, training, education, peace and prosperity. The Group thus continue to focus and place emphasis on the four pillars of its Corporate Sustainability programme - the Marketplace, the Workplace, the Community and the Environment around us.
Details of our efforts are contained in our Corporate Sustainability Report on Page 36.
The GDEX Foundation, set up in 2013 with the objective of promoting the welfare of the community, has yet to identify any meaningful Corporate Social Responsibility activity. Pending that, it will continue to build on its reserves.
While we have plans to embark on regional expansion, we must first build our capabilities and capacities to undertake such a journey. We have studied the Indonesian market for the last few years and have gained confidence to enter into Indonesia more aggressively, given the opportunity.
We will continue to study the other ASEAN market similarly to look for more opportunities.
Our customers made us into what we are today. We cannot survive without their support. To our customers, I would like to say a big “Thank You” for your continued support. I would also like to thank our vendors, business service partners and the relevant government agencies for their support.
My gratitude also goes to my fellow colleagues and staff of GDEX for their hard work and dedication. We are only able to respond effectively to the challenges ahead with the full support and commitment of all our staff. With the right spirit and mind-set we will ensure the Group continue to grow in the years ahead.
I would also like to express my appreciation to Mr Lim Cheng Sung @ Lim Cheng Sang who has retired from the Board. I would also like to welcome Mr Chua Khing Seng from Yamato and Ms Ho Swee Fong to our Board of Directors.
Last but not least, I would like to express my sincere appreciation and thanks to the Board of Directors for their guidance and support.
I look forward to further progress and improvement in GDEX. I am confident that we will move closer to our goal of becoming the leading express carrier in the region.
Thank you.Teong Teck Lean