XPRS Xpress Annual Report 2011 - From a ripple in Singapore, to a wave in Asia

7/29/2019 XPRS Xpress Annual Report 2011 - From a ripple in Singapore, to a wave in Asia

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Annual ReportXpress Holdings Ltd

2011

Speed

Quality

Service


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The journey o Xpress starts with the frst drop here in Singapore, which created ripples

and subsequently propagated to become magnifcent waves in oreign markets.

A Single Drop StartsA MAGNIFICENT JOURNEY


3/30Xpress Holdings Ltd | Annual Report 2011 1

VisionTo be the industry leader in time-sensitive printing services

with unsurpassed reputation or speed, absolute reliability

and uncompromising quality.

MissionTo exceed customer expectations through service

excellence and product innovation; reach and surpass

shareholder expectations by striving or new growth andcost eciencies; develop employee potential by providing

a challenging, but sae and happy work environment; be

considerate to supplier needs by being air and reasonable;

and be socially and environmentally conscious, and where

possible, to positively contribute back to the society.

01 Vision & Mission02 Financial Highlights

03 Company Prole

04 Corporate Inormation

CONTENTS

05 Group Structure07 Commendations

08 Chairmans Statement

10 Board o Directors

14 Key Management16 Operations Review

20 Our Products

22 Our Geographical Presence

24 Milestones26 Achievements

27 Corporate Governance

40 Financial Contents

Xpress Holdings Ltd | Annual Report 2011 1


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Financial Highlights

GROUP FINANCIALS AT 31 JULY 2011

$000

2010

$000

2009

$000

2008

$000

2007

$000

INCOME STATEMENT

Revenue 48,313 59,545 54,999 61,290 35,907

Operating EBITDA* 9,274 8,476 8,927 10,861 9,350

Prot beore income tax 5,289 8,916 10,291 10,311 6,891

Net prot ater tax and minority interests 5,263 8,470 13,025 10,234 7,087

BALANCE SHEET

Total assets 163,303 164,678 165,819 142,882 120,498

Net tangible assets 75,996 78,517 80,558 46,865 38,148Total equity 140,480 143,001 145,042 111,349 102,632

Total liabilities 22,823 21,677 20,777 31,533 17,866

Cash and cash equivalents 6,656 10,772 10,775 12,813 3,323

PER SHARE DATA (SINGAPORE CENTS)

Earnings per share - basic and diluted 0.34 0.55 0.93 0.74 0.54

Net dividend (Final) 0.03 0.06 0.11 0.13 0.12

Net dividend (Special) - - 0.04 - -

Net tangible assets 4.91 5.1 5.2 3.36 2.73

Return on average shareholders equity (%) 3.7% 5.9% 10.2% 9.6% 7.6%

*Operating EBITDA is defned as proft beore tax excluding fnancing costs, depreciation, amortization and non-operating income.

GROUP REVENUE ($M)

2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

61.3 9.6

55.0

4.2

59.5

4.7

48.35.3

OPERATING PROFIT BEFORE TAX ($M)

35.9

4.8

2 Xpress Holdings Ltd | Annual Report 2011


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Company Profle

Established in 1986, Xpress was listed on the SGX Mainboard on 28 June 1999. With its headquarters

in Singapore, the Groups sta strength o 451 is united by its core values and commitment to excellenceand quality.

The Group oers the ull range o print management services that include conceptualisation, design,

copywriting, translation, typesetting and colour proong; printing; post-press packaging; global

distribution and delivery.

Xpress fagship Print Stations, its sales and service centres, are strategically located at the heart o the

business districts in the key cities o China, Vietnam, the Philippines, Malaysia, Hong Kong, Australia

and Singapore. Supported by a comprehensive network o printing acilities, Xpress Print Stations

provide clients easy-access to print services at quick-turnaround time in close proximities. The On-SitePrint Stations provide an extension o its services by bringing them right to the clients premises.

Products o Xpress include nancial research reports, annual reports, asset management reports, IPO

prospectuses, corporate brochures, year books, magazines and other commercial publications and

collaterals.

With innovative use o technology, Xpress will continuously revolutionise the pace o competition in the

printing industry and raise the standards o customer service by oering unsurpassed convenience,

quality, speed and reliability to its customers.


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Corporate Inormation

BOARD OF DIRECTORSDr Wang Kai YuenIndependent and Non Executive ChairmanMr Fong Kah Kuen @ Foong Kah KuenChie Executive Ofcer / Executive Director

Mr Darlington Tseng Te-LinExecutive Director

Mr Victor Khoo Choon MengExecutive Director

Mr Christopher Chong Meng TakIndependent Director

Ms Ong Wui LengAlternate Director to Mr Christopher Chong Meng Tak

Mr Lai Hock MengIndependent Director

Dr Lee Tsu-Der

Non Independent and Non Executive Director

Mr Jerry Lee Yin ChiaNon Independent and Non Executive Director

Mr Sam Chong KeenNon Independent and Non Executive Director

AUDIT COMMITTEE

Mr Christopher Chong Meng Tak(Chairman)

Dr Wang Kai YuenMr Jerry Lee Yin ChiaMr Sam Chong KeenMr Lai Hock Meng

NOMINATING COMMITTEE

Dr Wang Kai Yuen (Chairman)

Mr Christopher Chong Meng TakMr Jerry Lee Yin ChiaREMUNERATION COMMITTEE

Dr Wang Kai Yuen (Chairman)

Mr Sam Chong KeenMr Lai Hock Meng

INVESTMENT AND RISK MANAGEMENT COMMITTEEMr Christopher Chong Meng Tak (Chairman)

Dr Wang Kai YuenMr Jerry Lee Yin ChiaMr Lai Hock MengSECRETARY

Ms Yeo Poh Noi Caroline

REGISTERED OFFICENo 1 Kallang Way 2ACommunications Techno CentreSingapore 347495Tel: (65) 6880 2828Fax: (65) 6880 2998

Website: www.xpress.sgSHARE REGISTRAR

Boardroom Corporate & Advisory Services Pte. Ltd.50 Rafes Place#32-01 Singapore Land Tower

Singapore 048623AUDITORS

Foo Kon Tan Grant Thornton LLP, Certied Public Accountants47 Hill Street #05-01Chinese Chamber o Commerce BuildingSingapore 179365

AUDIT PARTNER-IN-CHARGE

Mr Toh Kim Teck(Appointment since nancial year ended 31 July 2011)Principal BankersUnited Overseas Bank LimitedThe Bank o East Asia, Limited

Company Registration No. 199902058Z



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100%Xpress Print

(Pte) Ltd

100%Precise MediaGroup Limited

100%Xpress Print

(Vietnam) Co., Ltd

Xpress Holdings(Korea Branch Oce)

76%Xpress Print(Australia) Pty Ltd

100%Xpress Print(K.L.) Sdn Bhd

100%Xpress Print(H.K.) Limited

100%Xpress MediaPte Ltd

100%Xpress Media

Philippines Inc.

100%Xpress Print(Taiwan BranchOce)

100%Print Planner(Beijing) Co., Ltd

100%Print Planner

(Hong Kong) Limited

100%Xpress Print(Shanghai) Co., Ltd

100%Print Planner(Shenzhen) Co., Ltd

100%Shenzhen Xpress PrintTechnology Co., Ltd

100%Print Planner (Intl) Limited

100%Print Planner(Chengdu) Co., Ltd

100%Xpress Print

(Shenyang) Co., Ltd

XPRESS HOLDINGS LTD

100%Xpress Print

(Shenzhen) Co., Ltd

50%Shenzhen Xpress WisdomTranslation Co., Ltd

100%Xpress Print(Shenzhen) Co., Ltd Xiamen Branch

100%Xpress Print(Shenzhen) Co., Ltd Wuhan Branch

100%Xpress Print(Shenzhen) Co., Ltd Changsha Branch

100%

Xpress Print(Shenzhen) Co., Ltd Guangzhou Branch

Group Structure



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The journey o a thousand miles begins with the frst step.

Lao-Tzu, Philosopher

TheJOURNEYoXpressbegins with our ocus on



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We would like to thank Xpress for the professionalism, attention to detail, patience and hardwork during the conference It has been a real pleasure working with you to be able to

turn the printing around in 24 hours was a relief. We look forward to working with you again

in the future.

Macquarie Capital Advisers

With the useful contributions of the Xpress Printing Vietnam, Savico got the Award of the

Best Annual Report 2008, which is one of the most important awards for listed companies and

Savico in particular. Besides that, we do appreciate the attitude and the professional working

style of the Xpress staff. We always believe in the quality of Xpress Printings services and

products.

Savico Group, Vietnam

You guys did a wonderful job. You actually exceeded our expectations! You obviously did not

scrimp the suppliers, and the production team was really good. Taking our endorser being lateand the PR angle aside, the event was suave. Hopefully this translates to good media mileage. =)

Again, thank you so much!

Unica Hija, Philippines

I would like to thank you and your team for your great support during the last couple of days

on helping us with the printed materials in preparing for our presentation. We just returned

from the client and the presentation went well. A big Thank You for your exibility and

prompt handling. We really appreciate working with you and are looking forward to more

cooperation in Beijing!

KPMG Hongkong

, QDII !

!

, !

Once again, thank you very much for your support and additional times over the weekend

and late nights to smooth the completion of the Annual Report for printing.

China Yuchai International Limited

A big thank you to your team for the great work and the reduction in the number of boxes which

kept our costs down. I realize this was quite a bit of manual work for your team. Thank you for

the commitment to excellence.

GMS KK - Japan

! ,

, , .

, , ,

.!

Commendations



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Chairmans Statement

Dr Wang Kai Yuen

Independent Non-Executive Chairman

In the space o a ewshort years, we havedramatically expanded

our Print Stations intoa vast network to meetconsumer demand orconvenience and rapidturnaround.



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Dear Shareholders

It gives me great pleasure to present the annual report

or Xpress Holdings Ltd (Xpress or the Group) or the

nancial year ended 31 July 2011 (FY2011).

A Year o Progress and Transormation

The legendary philosopher Lao-Tzu noted that The

journey o a thousand miles begins with the rst step.

The journey o Xpress begins with our ocus on ast

turnaround and uncompromised quality. These core

values inculcated in our sta wherever we do business,establishing Xpress as a brand synonymous with the

best in printing solutions. Combined with our highly

scalable processes and technology, our core values

provide a robust oundation upon which to build our

business. In the space o a ew short years, we have

dramatically expanded our Print Stations into a vast

network to meet consumer demand or convenience and

rapid turnaround. These Print Stations are also proving

to be remarkably eective gateways to VIP customers

with premium print solution needs. Numerous new

multinational and leading corporations have already been

secured as clients through this strategy.

Our investment in brand building has been recognized

in the Singapore Prestige Brands awards 2010, where

Xpress was one o the ve winners in the Regional Brands

Category. This ollows our award as Overall Winner o the

Established Brands Award category in the prior year, as

well as our being named a Business Superbrand in 2010.

Financial Perormance

Our Group perormed well in FY2011 amidst acompetitive business environment. The reocusing o

our business and customer mix boosted margins and

protability, despite a reduction in revenue. In FY2011,

Xpress recorded revenue o S$48.3 million. This compares

to S$59.5 million in the prior year, which included S$9.0

million o sales rom a joint printing project. However, our

gross margin percentage expanded 6 percentage points

rom 50.1% in FY2010 to 56.1% in FY2011. This was

primarily driven by a bigger proportion o higher margin

business, which includes print management.

Net Prot Ater Tax (NPAT) or FY2011 was S$5.3

million, lower than the prior year which included S$4.3

million o gains rom the disposal o an investment.

Excluding this non-operating item, FY2011 NPAT rose

$1.1 million which was 26.2% higher than the prior year.

Dividend

The Board o Directors proposes a ull and nal dividend

o 0.03 cent per share or FY2011 compared to the 0.06

cent per share o the prior year. This is lower becauseo the absence o investment gains in FY2011 and the

need to preserve cash or uture expansion opportunities

available to the Group.

Outlook

Despite uncertainties in regard to the global economy

and the euro debts crisis, we are well on track to deliver

our strategic roadmap to scale our unique business

model to stay competitive and protable. Xpress has

become a successul regional brand, but we must not

slow down. To continue to be the leader in our niche o

time-sensitive nancial and commercial printing, we will

be relentless in our unwavering quest to oer enhanced

value to customers.

Thanks and Appreciation

The last year has been an important year in the

reinvigoration o our business. I take this opportunity to

extend my deep appreciation to our valued shareholders,

clients, business associates and sta or their support,

as well as to my Board o Directors or the wise counsel.I look orward to working closely with each o you as

we scale our Group to even greater heights in the years

ahead.

Dr Wang Kai Yuen


28 October 2011



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Board o Directors

Dr Wang Kai Yuen


Dr Wang Kai Yuen was appointed as Independent Non-

Executive Chairman on 25 March 2002. He chairs the

Nominating Committee and Remuneration Committee,

and is also a member o the Audit Committee.

Formerly the Managing Director o Fuji Xerox SingaporeSotware Centre, he interacted with senior business and

product development managers in the US, China and

Japan o the global oce equipment company. He retired

rom Fuji Xerox in December 2009.

Because o his extensive exposure overseas, Dr

Wang is amiliar with American and Asian cultures,

international business practices and corporate nance

and governance. Dr Wang had also participated in many

international meetings o parliamentarians during his

tenure as Member o Parliament rom 1984 to 2006. He

has wide business and political contacts in China, having

led many grassroots delegations to visit numerous city

and state governments. In 2005, Dr Wang was appointed

as a Member in the Foreign Specialist Committee

Overseas Chinese Aairs Oce o the State Council,

Peoples Republic o China.

Dr Wang graduated in 1972 with First Class Honours

degree in Electrical and Electronics rom the National

University o Singapore, and holds a Master o Science

in Electrical Engineering with a PhD in Engineering rom

Stanord University.

K K Fong PBM

Founder, CEO & Executive Director,

Xpress Holdings Ltd

Mr K K Fong (Fong Kah Kuen) was re-appointed as

Chie Executive Ocer & Executive Director on 16 May

2010. He has over 30 years o experience in the printing

industry and served Xpress as its Chie Operating Ocer

since 2006. Based in Shenzhen, he was responsible orthe general management o the Group and the promotion

o its activities and expansion in the region.

Mr K K Fong plays a pivotal role in setting the strategic

direction or the Group and has been instrumental in the

Groups expansion, particularly in the Peoples Republic

o China (PRC). He is also responsible or orging the

strategic relationships with the Groups major business

partners. He spearheaded the business development in

the PRC and built up the Groups robust print solution

business, the engine o growth or Xpress.

He is a recipient o various national business awards

such as the National IT Award, the Enterprise o the Year

Award, Enterprise 50 Awards, and the Entrepreneur o

the Year Award. For his contributions to Singapore, he

was conerred the Public Service Medal by the President

o the Republic o Singapore in 2010.

Dr Wang Kai Yuen K K Fong



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Darlington Tseng Te-Lin

Executive Director

Mr Darlington Tseng was appointed as Executive Director

on 1 March 2008. He joined Xpress on 2 July 2007 as

Director o Business Development or Greater China.

Prior to joining Xpress, Mr Tseng held a senior executive

position at BASF Taiwan Ltd, rom 2005 to 2007. Hegained extensive knowledge o the regions business

climate during his tenure with BASFs regional business

unit, where he collected vast market analyses and

ormulated strong marketing strategies. Between 1998

and 2002, Mr. Tseng also worked in the chemical

industry or AGI Corporation based in Taiwan where he

was responsible or the companys overseas market and

successully set up the companys Mexico manuacturing

plant that produces specialty varnish or printing/

coating industry.

With his extensive knowledge o the regional business

climate, Mr Tseng is responsible or strategising the

Groups penetration into the Greater China markets

and growth opportunities in the Asia-Pacic markets.

He is also involved in expanding the business and

managing the development o service oerings to the

Groups VIP accounts in China. To sustain the Groups

continuing growth, he spearheaded the re-engineering

o operations to strengthen the Groups business model,

while enhancing customer service, attracting and

nurturing talent.

Mr Tseng graduated with Honours rom Peking Universitys

International Masters o Business Administration.

Victor Khoo Choon Meng

Executive Director

Mr Victor Khoo was appointed as Executive Director

on 1 March 2008. He is also the Director o Sales

and Marketing, responsible or the management and

supervision o the Groups sales and marketing plans.

Mr Khoo joined Xpress in 1996 as an Account Manager,servicing the Groups nancial printing clients. He

spearheaded Xpress Asset Management business,

which continues to be a key product under the nancial

printing market. Mr Khoo is responsible or strategic

planning and sales. He has standardised Xpress

sales and customer service methodologies, ensuring

consistent products and services are oered across

all Print Stations. With vast experience in account and

project management, he is also directly involved in

acquiring, servicing and retaining key strategic accounts

o the Group.

Mr Khoo graduated in 1994 with a Bachelor o

Commerce degree in Finance and Marketing rom

Murdoch University, Western Australia.

Darlington Tseng Te-Lin Victor Khoo Choon Meng



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Board o Directors

Christopher Chong Meng TakIndependent Director

Mr Christopher Chong, Independent Director and

Chairman o the Audit and Risk Management & Investment

Committees, was appointed on 5 December 2001. He

was previously the CEO o HSBC Securities (Singapore)

Pte Ltd and prior to that an Executive Director o Kay

Hian James Capel Ltd. Mr Chong was a multi-award

winning analyst, is a capital markets specialist and has

signicant expertise on Corporate Governance.

Mr Chong is a partner o ACH Investments Pte Ltd, a

specialist corporate advisory rm, and is an Independent

Director o: ASL Marine Ltd, Koda Holdings Ltd, Lorenzo

International Ltd (listed on the Singapore Exchange); GLG

Corp Ltd, Koon Holdings Ltd (listed on the Australian

Securities Exchange) and Imagi International Holdings

Limited (listed on the Hong Kong Stock Exchange).

Mr Chong is a member o the Institute o Chartered

Accountants o Scotland and a ellow o the Australian

Institute o CPAs, the HK Institute o CPAs, the Australian

Institute o Directors and the Singapore Institute oDirectors. He is also a master stockbroker o SIDA.

Mr Chong holds First Class Honours Bachelor o Science

degree rom the University College o Wales and an MBA

rom the London Business School.

Ong Wui Leng

Alternate Director to Mr Christopher Chong Meng Tak

Ms Ong was appointed the Alternate Director to Mr

Christopher Chong on 22 July 2009. She has more

than 25 years o experience in corporate banking andcorporate nance.

Ms Ong gained some 10 years o corporate banking

experience, having worked or two European banks in

Singapore. Her corporate nance experience was gainedrom working with several listed companies in Singapore

since 1992. Ms Ong held the position o Head o Issuer

Regulation or the Singapore Exchange Limited (SGX)

rom 2005 to 2007. She currently holds directorship

or SiS International Holdings Limited and is also the

Executive Partner o BlackInk Corporate Partners Pte

Ltd.

Ms Ong holds a Bachelor o Science (Economics) in

Management Studies rom the University o London,

United Kingdom and a Master o Practising Accounting

rom the Monash University, Australia.

Lai Hock Meng

Independent Director

Mr Lai Hock Meng was appointed as an Independent

Director on 1 March 2008. He spent more than 26

years in the nancial industry, including central banking,

investment banking, private banking, stockbroking and

private equity investments.

Mr Lai rst started his career in the Monetary Authority oSingapore in 1980. He then moved on to the private sector

and attained senior management position in various global

institutions such as Deutsche Morgan Grenell & Partners

Securities, SocGen-Crosby Securities, Citigroup Private

Bank and OCBC Private Bank. Presently, he is involved

in private equity investments, and sits on board o several

listed companies as independent director.

A veteran investment banker, Mr Lai brings to the Group

vast experience in the global nancial industry and

extensive knowledge o the worlds capital markets.

Mr Lai graduated with a Bachelor o Arts (Honours)

degree in Economics rom the University o Cambridge,

UK. He is also a ellow o UK Chartered Institute o

Marketing, and a Chartered Financial Analyst (CFA) o

The CFA Institute in the USA.

Christopher Chong Meng Tak Lai Hock Meng



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Dr Lee Tsu-DerNon-Executive Non-Independent Director

Dr Lee Tsu-Der was appointed as Non-Executive Non-

Independent Director on 15 December 2004.

He brings with him extensive business experience and

market knowledge o China, Taiwan and Hong Kong,

and provides strategic development and investment

guidance to the Group.

With a medical background, Dr Lee joined H&Q Asia

Pacic (Taiwan) in 1995 and served as the Chie Advisor

or its China Investments. From 1995 to 1998, he

played important roles in various key investments in

China covering Pharmaceutical, Biotech, Media, and

Consumer Goods industry. Between 1999 and 2003, Dr

Lee served as the General Manager o H&Q Asia Pacic

(China). He had also ormerly served as the Chairman to

Starbucks Coee Beijing Limited, as well as Shan Dong

Kexing Biotech Company.

Dr Lee is currently the Vice Chairman o H&Q Asia Pacic

(Taiwan), and an Independent Director or Hsu Fu ChiInternational Ltd. He obtained his medical degree in

dentistry rom Taipei Medical University in Taiwan and is

now the Chairman o the Taipei Medical University.

Jerry Lee Yin Chia

Non-Executive Non-Independent Director

Mr Jerry Lee was appointed as Non-Executive Non-

Independent Director on 15 December 2004. He has

worked in various locations with ocus on Corporate

Finance and M&A, bringing to the Group extensive

multinational nancial knowledge and experience.Leveraging on his cross-border nancial service

experience, Mr Lee has completed several sizeable

investment and acquisitions in China.

Mr Lee has a Bachelor degree in Finance rom New YorkUniversity and a MBA degree rom Peking University in

Beijing.

Sam Chong Keen

Non-Executive Non-Independent Director

Mr Sam Chong Keen was rst appointed as an

Independent Non-Executive Director on 5 December

2001. Between 2006 and 2008, he served the Group

as the Chie Executive Ocer, and was re-appointed

as Non-Executive Non-Independent Director on 16

February 2008.

Mr Sam has a wealth o management experience, having

held senior/CEO positions in the Singapore Government

Administrative Service, National Trades Union Congress,

Intraco Ltd, Comort Group Ltd, VICOM Ltd, Lion Asiapac

Ltd, Lion Teck Chiang Ltd, Jade Technologies Holdings

Ltd and Sino-Environment Technology Group Limited.

Mr Sam was the Political Secretary to the Minister or

Education rom 1988 to 1991. He has served on various

government boards and committees, including theCentral Provident Fund Board and the National Co-

operative Federation.

Mr Sam holds a Bachelor o Arts(Honours) in Engineering

Science & Economics and a Master o Arts rom

University o Oxord, as well as a Diploma rom the

Institute o Marketing, United Kingdom.

Dr Lee Tsu-Der Jerry Lee Yin Chia Sam Chong Keen



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Key Management

Eleanor Fong Sau KwanExecutive Director, Xpress Print Pte Ltd

Ms Fong joined the Group in March 1992 and was appointed the Executive

Director o Xpress Print Pte Ltd. She also served as an Executive Director

or Xpress Holdings Ltd between 5 December 2001 and 26 February 2007.

She brings to the Group concrete strengths in international relations and

management expertise. Ms Fongs current responsibilities involve developing

the Groups regional clientele, as well as overseeing the activities o the sales

and marketing department.

Foong Sow Peng

Operations Director, Xpress Print Pte Ltd

Ms Foong joined the Group in April 1995 and was appointed Operations

Director o Xpress Print Pte Ltd. She is trained in actory management and

holds a Diploma in Production Engineering rom the Singapore Polytechnic.With over 30 years o experience in multinational corporations, Ms Foong is

responsible or the Groups printing operations and publishing activities.

Adeline Chee Choon Lee

Head o Human Resources & Administration,

Xpress Holdings Ltd

Ms Chee joined Xpress in March 1994 and is responsible or the Groups

regional human resources. Her responsibilities include strategic human

resource planning and recruitment. She holds a Bachelor o Arts degree rom

the National University o Singapore and a Graduate Diploma in Personnel

Management rom the Singapore Institute o Management.



17/30

Wong Siew HongGroup Financial Controller, Xpress Holdings Ltd

Mr Wong joined Xpress Holdings Ltd as Group Financial Controller in November

2010.He is responsible or the nancial management and nancial reporting

unctions o the group. Prior to joining the company, he was the Chie Financial

Ocer o another public listed company.

Mr Wong has more than 20 years working experience both in the auditing

and commercial sectors.

He holds a Bachelor o Accountancy rom the National University and is amember o the Institute o Certied Public Accountants o Singapore.

Wu Wei Dong

Chie Executive Ocer, China Operations

Mr Wu joined the Group in July 2007 as General Manager. He has in-depth

knowledge o the PRC printing industry and extensive media contacts. He

plays a crucial role in ormulating strategies to bolster the Groups long termbusiness expansion in the PRC and is also responsible or the nancial and

operational procedures or the country. Mr Wu is an accounts graduate rom

Hunan Business College.

Lim Shin Ee

Chie Operating Ocer, China Operations

Ms Lim is the Chie Operating Ocer, spearheading the division which

centrally co-ordinates all business and operational activities within the Groups

network. Her responsibilities include streamlining the operations processes,

and ensuring a more cost-eective and timely management o procurement

activities, design, printing and ulllment solutions or the Groups large base

o clients in dierent global markets.

Ms Lim relocated to China or over the last ten years, where she is appointed

as the Chie Operating Ocer o the Groups subsidiary Precise Media Group,

overseeing its sales, marketing and print operation activities since 2006.

She graduated with a Bachelor o Business degree in Marketing rom the

University o Newcastle (Australia) in 1997.



18/30

Operations Review

FROM A

IN SINGAPORE,

RIPPLE

Our Group continuesto use multiplemediums to raise ourmarket presence andsecure high-valueclients and synergisticpartnerships with

well-networkedcorporations.

K K FongPBM

Founder, CEO & Executive Director,Xpress Holdings Ltd



19/30Xpress Holdings Ltd | Annual Report 2011 17

From Niche to Niche Speed, Quality and Customer Service

Right rom the beginning, unprecedented speed, accuracy and

uncompromised quality were identied as the key values to dierentiate

our business. With a mission to deliver these values, Xpress invested

and leveraged inormation technology in innovative ways to enhance

quality and reduce turnaround times.

Xpress rapidly built a reputation as the printer o choice or ast-paced

nancial institutions demanding time-sensitive research report printing.

Our Group became the unquestioned leader in this niche, playing a

vital printing role in regional nancial centers, especially Singapore and

Hong Kong.

Xpress has continued to build upon this heritage, and continues

to set ourselves apart rom the conventional printing industry with

consistently high-quality, accurate and innovative services and

unbeatable turnaround time.

Print stations - Extending Our Vast Network

The enormous improvement in the speed and quality o printing over

the years has enabled Xpress to elevate our service to an even higher

level across Asia.

We have continued to execute upon the strategy begun in 2007 to

widen our market penetration and reach by setting up Print Stations

in the Central Business Districts o major cities. By locating ourselves

where customers are our clients have convenient access to total

TO AWAVE

80 Robinson, Singapore

Speed

Qualit

y

Service

IN ASIA


20/30

Operations Review

print services that include consultancy, concept development and

layout, photography and art direction, editorial and translation. Thesuccess o our Print Station concept has made it a brand icon or

Xpress, particularly in China, Vietnam, the Philippines, Malaysia, Hong

Kong, Indonesia and Australia.

On-site Print Stations - Securing VIP Clients

As client demands have grown in scale and complexity, Xpress

has developed a value proposition our VIP clients cannot reuse

embedding a Print Station within their premises to become an integral

and high value component o their business.

Our strategy o embedding Print Stations on the premises o VIP

clients is proving extraordinarily successul at generating new high

margin business or our Group. These acilities build deep interaction

and rapport as senior Xpress managers act as brand ambassadors,

engaging our clients senior management at a much deeper level than

our competitors and requently being responsible or key components

o our clients workfow and logistics. In FY2011, the suite o service

available to clients was urther enhanced to include supplying corporate

gits, premiums and large-ormat printing.

Xpress currently has Print Stations embedded within the premises o 16

VIP clients, which are typically multinational and leading corporations.

For example, the entire print needs o General Electrics China

operations o more than 10,000 sta are managed by our Group, and

we were recognised as their The Best Innovation Solutions Supplier

or 2009.

In February 2011, our Group signed a Global Partnership Agreement

with DHL Global Mail under which we became their global print

management partner. This is expected to ultimately see our services

extended to DHLs global network o internal sta and external clients

and is a strategic global partnership which urther strengthens our

position as a market leader in the print industry regionally and globally.

Collaboration - Win Win Win Model

In support o our Rafes Education, the largest private education group

in the Asia Pacic and our VIP client, two new Print Stations were

established in FY2011. In November 2010, the Rafes Education

College Hong Kong Print Station was inaugurated. In December 2010,

Xpress opened another Print Station within Rafes International College

(RIC) Vietnam. Both Print Stations are equipped with a ull range o

printers and post press machines, giving sta and students access

80 Robinson, Singapore

Rafes Education Corporation On-Site Print Station

Executive Director Mr Darllington Tseng receives theGE China Award (July 2010)

Rafes Education Corporation Hong Kong On-Site

Print Station



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to unprecedented convenience, quality, speed and value-added

conveniences such as on-site design and post-press nishing. As wellas expanding our branding and network across the Asia-Pacic, these

Print Stations also provide students with collaboration, internship and

employment opportunities within Xpress and our expansive network o

business partners throughout the region.

In July 2011, Xpress launched the Mount Faber Xpress Print Station

on Sentosa Island, Singapore in a tripartite partnership with Canon

and Mount Faber Leisure Group. This heralds yet another innovation in

our service delivery model. The unique combination o distinctive key

strengths Print Management by Xpress, Technology and Hardware

by Canon and Volume Giant by Mount Faber Leisure Group achievesa win-win-win outcome or all.

Staying Ahead - Leveraging Technology

During FY2011, our Group continued to develop our proprietary Print

Wizard Platorm technology. This online customizable procurement

platorm allows clients to print and track their orders rom any location

in the world, seamlessly blending precision workfow planning with the

unmistakable speed and quality associated with the Xpress brand onto

the computer interace o our clients. Our Print Wizard Platorm has

been extensively deployed by our VIP clients.

Building the Xpress Brand

During FY2011, Xpress was presented with yet another accolade the

Singapore Quality Class Certication by SPRING Singapore. This SQC

Certication is a recognition o Xpress business excellence in terms

o seven areas namely Leadership, Planning, Inormation, People,

Processes, Customers and Results on an international scale.

Following Xpress spectacular perormance in 2009 Singapore Prestige

Brand Award(SPBA), Xpress won the 2010 Singapore Prestige Brand

Award under the Regional Brands category.

Our Group continues to use multiple mediums to raise our market

presence and secure high-value clients and synergistic partnerships

with well-networked corporations. In January 2011, Xpress co-

organized the rst ever CCTV Chinas Economic Leaders o 2010

Singapore Forum, outside o China. Themed Opportunities in

China during the Global Transitional Period, this lmed orum drew

extensive media coverage, elevating our brand image and providing

invaluable access to international and PRC investors and corporations.

Sot launch o Mount Faber Xpress Print Station on29 July 2011 in Sentosa Island

Print wizard & automation

CCTV Economic Forum on 6 January 2011 atShangri-La Hotel



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Commercial Print

Each Ripple Carries

Our Brand Identity

Financial Print

Our Products



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Large Format Printing

Corporate Premiums



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For Xpress to thrive in this challenging industry, ithas to be a leader in the print industry regionally.We have presence in 19 cities across the Asia-Pacifc region, where our Print Stations and On-Site Print Stations are linked to a robust network o

print acilities.

Ripples Pulsate

Our Geographic Presence



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Our network o Print Stations is strategicallylinked to print actories located within a 15 18hour radius road transport distance.

ACROSS BORDERS



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2008 2009 Revenue in 2008 S$61.3 Mil

Launch of On-Site Print Stations

3 new Print Stations in China - Wuhan, Xiamen and

Changsha

Signed 3 years Print Management contracts worthRMB200 Mil annually with 7 major PRC media

companies

Signed 2 years Print Management contracts worth

RMB140 Mil annually with 6 major PRC publishers in

Hunan province

Sale and leaseback of Kallang Way building for S$14

Mil

Achieved PSO certication for Xpress Print

inSingapore

Revenue in 2009 S$55.0 Mil

Attained record Net Prot for the Group S$13.0 Mil

Business focus on high margin print management

services

Raised S$12.1 Mil in net proceeds through 160million new ordinary shares

Fully redeemed Convertible Bonds and halved the

Groups gearing

Sale of 10.1% equity stake in associated company

Achieved PSO Certication for Xpress Print in

Shenzhen

Waves Reach

Our Milestones



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20112010 Revenue in 2010 S$59.5 Mil

Operating Prot rose by 11.9%

Disposal of 10% equity stake in Jiaxinda

Invested in short print run facility in Beijing

Launch of street-level Print Station at 80 RobinsonRoad in Singapore

Awarded the Overall Winner of the Established

Brands category at the Singapore Prestige Brand

Award, 2009

Awarded The Best Innovation Solutions Supplier of

the Year 2009 by GE China

Awarded the Business Superbrands status for 2010

Re-focus on our core strengths of delivering

incredible speed and uncompromised quality

Emphasise on print-on-demand projects that allow us

to deepen our relationship with existing customers,

and winning new ones Setting up more street-level Print Stations within

the central business districts across the Asia Pacic

region to attract walk-in trac

Develop retail (walk-in) clients to larger corporate

clients

Develop high value corporate clients to become VIP

accounts with embedded On-Site Print Stations right

at their premises

Develop synergistic partnerships or joint ventures with

corporations possessing extensive regional networks

Awarded one of the Winners for Singapore Prestige

Brand Award 2010

Awarded the Singapore Quality Class Certication by

SPRING Singapore

FOREIGN SHORES



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Xpress Holdings Ltds outstanding achievements have been recognised locally andinternationally, in recognition o our excellence in creativity and processes. Ouraccreditations and recent awards include:

ACCREDITATIONSProcess Standard Oset (PSO) Certifcation

PSO is an internationally recognised quality management certication in global standard

graphic technology or oset printing accredited by Fogra.

In 2008, Xpress Print Pte Ltd was the rst in Singapore to be certied.

In 2009, our Shenzhen oce became the rst in China to be certied.

This system denes the requirements rom pre-press to print or predictable and reliable

print quality to ensure aster turnaround time and high print quality with consistent andreproducible colour output across all print locations.

Forest Stewardship Council (FSC) Certifcation

Committed to the protection o the environment, Xpress adopted eco-riendly print

processes which include the use o recycled/certied papers and soy-based inks to

reduce wastage. In 2008, we were accredited with the Forest Stewardship Council

(FSC) certication. FSC is an international, independent, non-governmental, nonprot

organisation established to promote the responsible management o the worlds orests

to meet the social, economic and ecological needs o present and uture generations.

AWARDSSingapore Prestige Brand Awards 2009 & 2010The Singapore Prestige Brand Award recognises and honours Singapore brands that

have developed and managed their brands eectively, and have become the sterling

brand names in Singapore. In December 2009, Xpress Holdings Ltd was awarded the

Overall Winner o the Established Brands. In December 2010, Xpress Holdings Ltd was

also one o the winners o the Regional Brands.

The Best Innovation Solutions Supplier o Year 2009 Award

Xpress Holdings Ltd was presented with the award by the General Electric (GE) China

during their inaugural all-China GE procurement conerence in Pudong, China on 22 July

2010. _ e award recognises Xpress excellent consultative customer service and PrintStation inrastructure. For GE China, Xpress developed innovative solutions to allow GE

Chinas management to achieve central control o print processes and quality across

multiple locations.

Business Superbrands Award 2010

Superbrands Singapore launched Business Superbrands in 2010. Xpress Holdings Ltd

was identied as one o the strongest examples o B2B brands in the local market and

was awarded the Singapore Business Superbrands status or 2010.

Singapore Quality Class Certifcation

The Singapore Quality Class Certication rom SPRING Singapore, is an internationalrecognition o Xpress business excellence standard in terms o seven areas namely,

Leadership, Planning, Inormation, People, Processes, Customers and Results.

Achievements



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XpressHoldingsLtd

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nnualReport2011

XPRS Xpress Annual Report 2011 - From a ripple in Singapore, to a wave in Asia

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