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Dear Shareholders,

On behalf of the Board of Directors, it is my pleasure to present to you the annual report for JES International Holdings Limited (“JES” or the “Company”) for the financial year ended 31 December 2016 (“FY2016”). As you may know, the Company is undergoing a period of restructuring and transformation and 2016 is a critical year in the development of the Company. I would like to take this opportunity to walk you through some of the recent developments of the Company and our plans moving ahead.

2016 In review Similar to the preceding financial year, the Company does not currently have in its possession all of its accounting and/or administrative records of the PRC subsidiaries and as a result the Company therefore only prepared the financial information of the Company and not the consolidated financial statement of the Group for FY2016. The Company, as an investment holding company, did not generate any revenue for FY2016. The Company’s net profit was recorded at RMB103 million due to a change in accounting treatment of the Company’s PRC subsidiaries. The basis of the change in accounting treatment was based on the PRC subsidiaries being deemed as a single merged entity pursuant to the judgment of the Jingjiang Court, Jiangsu Province. The Company’s current assets reduced from RMB55.6 million as at 31 December 2015 to RMB21.5 million as at 31 December 2016. The reduction is due to, in relation to the transaction with Scibios Co Ltd, differences in the share price of the Company at the material time of the transaction and the date of the court judgment which awarded damages to the Company, which resulted in an impairment treatment on the investment in unquoted equity in Scibois Co Ltd amounting to approximately RMB36 million. As at 31 December 2016, the Company’s cash and cash equivalents was recorded at RMB192,000. Net cash used in operating activities of the Company was approximately RMB1.9 million for FY2016, compared with net cash used in operating activities by the Company of RMB6.0 million for the financial year ended 31 December 2015. As at 31 December 2016, the Company’s net asset value per ordinary share stood at negative RMB 6.18 cents.

Proposed Acquisition of Maya Asia Resources Sdn Bhd As announced by the Company on 29 November 2016, the Company has entered into a conditional sale and purchase agreement to acquire 100% of the entire issued and paid-up share capital of Maya Asia Resources Sdn. Bhd. (the “Target Company”) (the “Proposed Acquisition”) and the first stage of completion of the Proposed Acquisition was recently effected on 1 March 2017. The Target Company is an investment holding company and the principal activities of its subsidiaries include the manufacturing and moulding of plastic containers, plastic stationery, plastic bottle caps using raw plastic pellets, infant-care products such as wet-wipes, diapers and fashionwear, and the trading and distribution of canned food products such as tuna and preserved fruits. The Target Company also has subsidiaries and joint-venture companies in Hangzhou who are engaged mainly in the aforesaid plastics business. It is anticipated that subject to the approval of shareholders and subsequent to the Proposed Acquisition, the Company will be injected with the businesses of the Target Company and its subsidiaries and expected to contribute positively to the Company’s financials for the financial year ending 31 December 2017.

Looking Ahead JES is entering a recovery and transformation phase and the Company and the Board of Directors remain committed to rebuilding shareholders’ value despite the changes that the Company is currently going through. We also recognise the importance of corporate governance and the Company is committed to setting and maintaining a high standard of corporate governance and improving the transparency of corporate governance to protect shareholders’ interests and enhance long-term shareholders’ value.

Appreciation On behalf of the Board, I would like to thank our shareholders and investors for their continued support and confidence in the Company. JES will weather the storm and continue steadfastly on the road to recovery.