FY2000 is another year of encouraging growth for POPULAR. POPULAR Group has managed to achieve a breakthrough of S$200 million in turnover. It is not only a milestone for the Group, but also an evidence of our efforts in forging ahead. Ever since its listing on the Singapore Exchange in 1997, the results of POPULAR have been improving year after year. The Group has again established new record highs in turnover, profit and earnings per share.

POPULAR Group’s full year pre-tax profit soared 9.5% from S$13.50 million to S$14.80 million. Earnings per share swelled to 3.96 cents from 3.75 cents, while net tangible assets per share increased to 26.77 cents from 23.64 cents, an improvement of 13.2%.

Publishing
The publishing business has witnessed a remarkable growth. Operating profit before interest and tax rose to S$9.90 million, representing an increase of 16.8% over FY1999. It is our leading contributor, accounting for 62% of the Group’s operating profit before interest and tax.

In addition to our rapid expansion of the textbook market in Hong Kong, the market for supplementary books is full of great potential and should not be ignored. Supplementary book publishing is also the main focus of the future development of POPULAR Group. Apart from The Educational Publishing House Pte Ltd in Singapore, Pan Lloyds Publishers Ltd in Hong Kong and Popular Book Company (Canada) Ltd in Canada, POPULAR Group has strived forward and established its subsidiaries in Malaysia and Macao, so as to cater for the needs of the vast supplementary book market. The response to our products is very favourable, and we have already achieved initial success in both Singapore and Canada.

Retail and Distribution
During the year, POPULAR Group has opened 8 new outlets: 3 in Singapore and 5 in Malaysia. Malaysia has reflected its actual strength in business growth, as turnover rose 24.6% from S$37.20 million to S$46.40 million.

POPULAR Group will continue to develop its retail network, as well as to consolidate its markets in Singapore, Malaysia and Hong Kong. POPULAR Group’s network currently stands at 50 bookstores and 35 franchise outlets. This year we have been awarded the “Singapore Franchise Mark”, which boosted our confidence in management practices and business operations. Moreover, our Popular Office Products registered a satisfactory 27% growth in turnover for FY2000.

Outlook
Owing to the encouraging signs of economic recovery in Singapore and across the region, POPULAR Group looks forward enthusiastically to a better tomorrow. The Group’s core businesses – publishing, retail and distribution are heating up, and we are fervently preparing to meet business opportunities arising from economic revival in the region. We are taking vigorous measures to develop new markets other than the current ones. The setting up of subsidiaries in Malaysia and Macao are vivid examples. Furthermore, in order to expand into the Taiwan market, the branch in Taiwan has started to publish Chinese books and to adapt some of the titles the Group has published.

With the birth of a new era and a growing realization that high technology is rocking the old economy, we are proactively injecting new elements into each of our core businesses. The Group will continue to adopt a pragmatic, sustainable e-business strategy to complement its brick and mortar business. We see old and new economy as integrated and synergistic. In addition, POPULAR is actively searching for partnership and investment opportunities. We believe only by linking what we do best with the strengths of our partners can we increase our competitive edge and improve efficiency.

The Group’s strong financial figures and healthy liquidity position demonstrates that POPULAR can fund the growth of its core businesses and will be able to make strategic acquisitions while maintaining a strong balance sheet.

Dividends
An Interim Dividend of 4% per ordinary share less tax, amounting to S$888,000 was paid out on 4 November 1999. The Board has recommended a final dividend of 5% for approval at the forthcoming Annual General Meeting.

Acknowledgements
Over the past year, POPULAR Group has been able to anticipate and meet the changing needs of the business environment. The success of POPULAR Group is a tribute to the dedication of a great many people, especially the unremitting effor ts and the commitment of our staff, as well as the ever-valuable support and encouragement of our shareholders and strategic allies. To them, my fellow directors and I like to give our sincere thanks and appreciation. Together we will grow and prosper in the new millennium.

Chou Cheng Ngok
Chairman