Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 17 CHAIRMAN’S MESSAGE (CONT’D) Frontken Philippines Inc., the Philippines - The Group’s operation in the Philippines has been consistent over the years and 2021 was no different. We continued to deliver a steady set of results with a revenue of RM15.4 million and operating profit of RM2.5 million. We continued to focus in the power generation industry where we provide specialised manpower support, on-site inspections, and rehabilitation services for turbomachinery equipment to the two largest power generation companies in the country. To support our customer further, we acquired a new vertical lathe machine to enhance our capability in the machining needs of large diaphragms for use in the steam power plants, hydro power plants and large rotating and stationary equipment. The addition of this machine also supplements well with our existing precision machining capabilities and future projects. During the year, we have made revisions in the repair processes through simplifying workflows without sacrificing the work and quality of our output, therefore increasing efficiency, and reducing turnaround times. Our on-going efforts to develop multi skilled personnel with complementing competencies, skilled and efficient team for on-site works, reduce logistics costs and optimise service capabilities have proven invaluable to all our customers that are in areas where access can be geographically challenging. In addition, the technical alliances with strategic service providers in the energy sector allows us to have exclusive access to spare parts, work procedures and online trainings that have brought significant value to our power generation customers. Moving forward, the power generation industry will be our key target growth area. This sector is expected to double its current production output by the end of 2030 due to the ever-growing electricity demands fueled by large infrastructure projects, as well as a growing manufacturing industry. We will continue to work with our customers and strategic partners to establish and refine our technical service capabilities through training and development programmes that will cater to their maintenance and service needs. MOVING FORWARD We know that challenges are not behind us yet and the pace of recovery in the coming months remains highly uncertain as mounting geopolitical tensions and lingering effects of COVID-19 continue. However, one thing that we are certain of is our commitment and determination towards our business goals. Our aim is to not only innovate and provide the best solutions to our customers, but also to continue to grow all aspects of the performance of our business. We believe there are still a lot of room for improvement and are committed to deliver a sustainable growth in our business and profit in the coming years. APPRECIATION I would like to take this opportunity to thank our Board of Directors for its continuous guidance, strategic advice and steadfast support throughout the year. On behalf of the Board, I would like to welcome our new Non-Executive Independent Director, Ms Koh Huey Min who joined the Board in December last year. We believe her broad set of skills and experience will be an asset and we look forward to working with her. I would also like to thank all my colleagues for your relentless dedication, sacrifices, and hard work during the year. We are here because of all of you. We are extremely thankful to our customers that have continually shown their confidence in us by giving us their continued business and new opportunities. To our business associates, various ministries, government agencies and regulators of the countries where we operate in, we appreciate your trust and support that you have given to us. Lastly, I would like to thank all of you, our loyal shareholders, for your ongoing support and trust in us. We will continue to do our best in delivering the best return to all of you.
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