Founder & Executive Chairman’s Message Print E-mail


Financial Year (“FY”) 2018 must take the crown as being the most challenging and yet most successful year for our Group where we witnessed our Group positively and successfully surged past its strategic inflection point with another set of breakthroughs and financial results delivered especially by our Sensors Division (GMSB) in the midst of a myriad of “real-timeparallel-run” re-construction/renovation works all of which were completed seamlessly, creatively and cost effectively at providing urgently needed solutions to cater for our key customers’ demanding future expansion requirements.

Under even more demanding and volatile business environment than ever before, our highly respected and outstanding CEO (Dato’ Heng Huck Lee) dedicated his heart-and-soul into role modelling, leading, guiding, grooming and motivating our entire workforce through another year-long-7x24-weeks in delivering another incredible set of game-changing breakthroughs and financial results for FY2018.

As the result of successfully developing and ramping new light-sensors and gesture-sensors that were designed-in as standard features in our customer’s newly launched devices, had elevated us to become a key supplier and co-development business partner. We have also been delivering total customer satisfaction in quality and delivery despite unprecedented demand-volatility and poor-visibility in product loadings. Our massive capital expenditure ("CAPEX") investment of RM107 million in FY2017 and RM35 million in FY2018 to support our new sensors manufacturing and development have proven to be strategic with excellent return-on-investment ("ROI") for our Group.

With this, our Group triumphantly closed FY2018 with a set of stellar top and bottom lines of RM328 million and RM70.1 million respectively, representing approximately 8% and 37% increase respectively over FY2017 numbers. Dividend payouts to shareholders totalled at RM57.2 million for FY2018 which translates into approximately 82% payout ratio of the net profit for the year. Yearend cash-flow position remained healthy at RM121 million. We have also successfully pared down the USD loan to USD 6 million (RM24.9 million) in FY2018 from USD13 million (RM51.2 million) in FY2017 thanks to the strong sales (collections) and profit contributions from our smart sensors businesses.

On top of our financial and operational excellence achieved in FY2018, our Group worked diligently and passionately in laying even stronger foundation in readiness for the coming years’ exponential growth in the new generation sensors for wireless, mobile and autonomous technology sectors in which we participate in. Among the many exciting products which should be in their various stages of mass production include next generation sensor products and bio environment sensor, 5G related components and 3D components for a niche industry.

Organizationally, our Group’s top management succession plan continued to make excellent progress with our identified CEO/COO succession candidate (Ms CY Heng, Business and Operations Vice President) assuming additional roles under the impeccable guidance of our CEO and board members, and well supported by our Group’s six (6) well-groomed Business/Operational Directors. On top of that, excellent progress has been seen in our continuous development and grooming of various levels of succession candidates in the leadership, technical, human resources and business sustainability arena to lead our Group’s highly motivated and well-aligned workforce.

FY2018 has also been tremendously taxing but a successful year for our Corporate Finance and Planning team which had done an impeccable job in their continuous education, research and execution towards compliances of a host of revamped statutory, regulatory and reporting requirements in the Malaysian Corporate scene like Bursa Malaysia, Securities Commission, Companies Commission of Malaysia, Inland Revenue Board, Malaysian Accounting Standards Board, Bank Negara and etc. On top of these, our Corporate team had also successfully executed a couple of major changes like abolishment of Goods and Service Tax ("GST"), implementation of Sales Tax and Service Tax ("SST") as well as subdivision of Gtronic stocks (2 for 1) and bonus issue (1 for 6) exercise. From the investors relations perspective, our Corporate team again partnered well in connecting with many regional and Malaysian investors, leading to the interest in Gtronic stocks remaining active despite the market capitalization dropping to RM1.17 billion in FY2018 from RM1.88 billion in FY2017 due to the unprecedented volatility caused by global sell-down of technology stocks arising mainly from the US/China trade-war. Our shareholders fund at the close of FY2018 stood at RM300 million.

Without any shadow of a doubt, our Group owe our FY2018’s successes to our highly respected and most passionate CEO for leading and motivating our entire group of fully committed and well aligned workforce towards delivering such a set of stellar results in FY2018. By the same token, our Group’s Management team would like to put on record our heartfelt gratitude to each and everyone of our Board members for their meticulous guidance, timely support and invaluable motivation provided to our Management team in bringing the very best out of our Group through all these past years. Last but not least, on behalf of Globetronics Technology Bhd and group of companies, I would like to thank each and everyone of our shareholders and stakeholders for your unfailing faith, encouragement and support all through our Group’s exciting and challenging journey over the past years and many more years to come.


After the high CAPEX spending of RM107 million in FY2017 laying the foundation for future growth, we reverted back to our traditional policy of preserving cash in an uncertain global environment. Our operations team have contributed well by maximizing productivity and fully utilizing installed capacity across all our product lines to significantly reduce CAPEX spending for FY2018. This provided us with the ability to deliver dividend payments of RM57.2 million (representing 82% payout of net profit) to our loyal shareholders. We are happy to report that we ended FY2018 with healthy cash and bank balances of RM121 million.

Details of dividend payments are as follows:

  1. Year 2017’s third interim and special dividend of 6 sen per share amounting to RM17.1 million on 30 March 2018;
  2. Year 2018’s first interim and special dividend of 3 sen per share amounting to RM20.01 million on 11 July 2018; and
  3. Year 2018’s second interim and special dividend of 3 sen per share amounting to RM20.07 million on 4 December 2018.

In response to many of our institutional investors’ request to increase the liquidity of Gtronic stocks, our Group also successfully completed the subdivision (2 for 1) and bonus issue (1 for 6) of our stocks in May 2018.



Since Globetronics’ inception 27 years ago, our Group have always held firm to our strong commitment striving to be a good corporate citizen and a valuable asset in any communities and countries which we operate in. In our Group’s pro-activeness towards achieving excellence in our ESG fronts, we focus on benchmarking and modelling our applications after the best of global standards especially along key areas of environment protection, conservation of natural resources, corporate social responsibilities (“CSR”) that spread and share love and protection for all humans and lives on earth.

This year, we have extended our key focus in identifying renewable energy as another driver in our ESG initiatives which have made tremendous progress towards a more structured approach to our Group’s ESG initiatives. Details of our passionate adoption and application of ESG drives are further discussed and elaborated in the following section under Sustainability Statement on pages 22 to 31 of this report.



Today’s technology companies are confronted with the oft-repeated challenges perfectly described by clichés like: “change is constant”, “uncertainty is certain" and etc. Within Globetronics, while we would not claim to be champions in managing change (or volatility) and uncertainty (or poor visibility), I do believe that through the past many years of perfect role-modelling and grooming by our outstanding CEO, our well-aligned and well-tested winning workforce are now confident and resilient enough to excel in the most challenging and demanding business environment that our Group operate in. Our Group have consistently been able to proactively re-invent ourselves to stay relevant and competitive by successfully co-developing and manufacturing a myriad of new generation technology products/components in time or ahead of the needs of our world renowned customers, while achieving total customer satisfaction in quality and delivery despite unprecedented demand-volatility and poor-visibility unheard of before.

As we are starting to approach a saturation point in smart devices growth rates, many opportunities still abound through the proliferation of Internet-of-Things (“IoT”) where sensors and IoT-systems are the catalyst of applications that capitalize on the technologies’ ability to scale geographically. New generation technologies like Virtual Reality (“VR”), Artificial Intelligence (“AI”), Augmented Reality (“AR”), autonomous or self-driving cars, drones, biomedicine/bio environment products, etc are relatively in their early stages of introduction to our daily lives but with the roll out of 5th-Generation Wireless Communication (“5G”) technology, would rapidly speed up connectivity and allow device to device “linkages”, which in turn would require many more sensors to create this linkage, as illustrated in the following illustrations that show convergence of technologies driven by IoT:


The IoT is one of the most important and promising technological topics today. Some market researchers estimate that there are more than 20 billion connected devices and counting. Around us, there are smartphones, wearables, and other devices, where a typical smartphone uses more than 10 sensors. In IoT, sensors monitor our health status (e.g. a heartbeat), air quality, home security, and are widely used in the Industrial IoT to monitor production processes.

With our expertise in sensors and a strong exposure as percentage to our revenue, we would look to tap into this strength of ours to manufacture the latest components with our leading in class global customers to further provide new products and applications to the global population.

Our new product introduction (“NPI”) team has in its pipeline new products or components in their various stages of mass production which include next generation sensor products and bio environment sensor, 5G related components and 3D components for a niche industry, etc. We are confident that as the world continues to embrace technology, we would continue to play our important and integral part in being the reliable manufacturing partner to our world-renowned customers in bringing new products to the market.