FY2000: A Watershed Year of Milestone Achievements
The financial year ended December 31, 2000 was an exciting and memorable one for the Achieva Group. Numerous significant strides and beachheads were achieved during that year.
Operationally, Achieva made significant and strategic progress in all its key business segments. In terms of geographical markets, Malaysia, Singapore and Australia continued to be the top three performers, accounting for 29%, 28% and 27% of Group turnover. While Singapore and Malaysia were also the top two contributors to Group operating profit, Vietnam has overtaken others to become the third most profitable market.
Our China operations are expected to turn around in FY2001 after the initial start-up phase. We have started selling software and peripherals in the PRC and will be extending our distribution activities to include semiconductor products.
In FY2000, we clinched eight new distributorships. They are from XIOtech Corporation, Telecommunications Devices Inc, LynuxWorks™, Inc., Intarsia Corporation, Flextronics Semiconductor Inc, Basis Communication, Sinbon Electronics Co Ltd and Tai Sol Electronics Co., Ltd. These wins brought the Group’s total distributorship portfolio to 38 brands. For most of these brands, Achieva is the distributor for ASEAN and Asia-Pacific markets.
PC Peripherals, Parts, and Software
Turnover in the peripherals, parts and software business grew 41% to $275 million — accounting for 81% of turnover — from $195 million in FY1999. Profit from this segment was $7.7 million or 52% of Group operating profit (before tax and interest), as compared to $3.5 million in FY1999.
The market for this peripherals, parts and software is consumer-oriented, volume-driven, fast changing, price-sensitive and highly competitive. Our ability to secure and retain distribution rights to well-established brands such as Seagate, Intel, ASUSTEK and Microsoft, coupled with our value added services, extensive network, good relationships with suppliers and dealers, has contributed to our competitive …