During 2014, a number of significant events
adversely impacted the world economy and
businesses in Asia. In particular, travel mishaps
and currency devaluations both negatively affected
tourist sentiments. Singapore recorded its first
drop in tourist arrival since 2009. Wage pressures
remained high amidst tight labour constraints
especially in South East Asia. Inflationary pressure
however eased as commodities went down, led
by a slide in oil prices.
I am pleased to report however that the Group
turnover increased 9% to $154.2m with strong
contribution from the sale of Healthcare products.
Profit from operations increased 16% to $112.0m
(2013: $96.6m) due mainly to higher profit from
Healthcare and increases in investment income.
Total earnings for the financial year ended 31
December 2014 increased 10% to $118.8m
(2013:$107.9m).
Besides the increased turnover in Healthcare,
lower costs of raw materials, as well as favourable
foreign exchange rates, helped to improve
margins. Profits increased 31% to $33.9m (2013:
$25.9m). Leisure revenue was $15.6m, which
was 24% lower than the previous year, due to
declining visitorship and competition. Property
was affected by lower occupancy rate with a
profit of $12.4m (2013: $13.4m).
Highlights of Operations
Healthcare recorded higher sales, based on
sales of new products that were launched over
the past years. The Company benefited from the
trusted products that it makes and markets. New
products like the Tiger Balm Mosquito Repellant
products have been well received by the markets.
Leisure was affected by declining visitorship
and competition from newer attractions both
in Singapore and Thailand. Underwater World
Singapore focused on different customer segments
to differentiate itself from the competition.
Underwater World Pattaya was affected by
lower tourist arrivals. Upgrading of facilities and
displays were progressively done to maintain the
competitiveness of Underwater World in Pattaya.
Dividend
The Board recommends a final tax-exempt (one-
tier) dividend of 14 cents per share. Together
with the interim dividend of 6 cents paid in
September, the total dividend per share for the
financial year ended 31 December 2014 is 20
cents per share.
2015 Business Outlook and Strategy
Many factors in the markets we operate in can
dampen future growth. The Group continues
to seek more productive ways of managing its
businesses. Healthcare is well positioned to see
growth in key Asian markets. Leisure will continue
to meet challenges from intense competition
both in Singapore and Thailand.
The Group continues to seek new investments
to add to our core businesses.
Acknowledgement
On behalf of the Board, I would like to welcome
Mr Gn Hiang Meng, our new independent
director, who was appointed to the Board in
August 2014. Mr Gn brings with him more than
30 years of investment banking and hospitality
industry experience. His skills and experience
will complement the Board’s expertise and
contribute to the diversity of skills and overall
effectiveness of the Board.
On behalf of the Board, I would also like to
thank all stakeholders including our customers,
business associates and shareholders for their
unwavering support and, management and staff
for their commitment and dedication.
I would also like to express my most sincere
gratitude to my fellow Board members for their
wise counsel and guidance in the past year.
Wee Cho Yaw
Chairman
chairman’s statement
+9%
TURNOVER S$154.2M
+10%
PROFIT AFTER TAX S$118.8M
Haw Par Corporation Limited
2
annual report 2014
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