Dear Shareholders,

On behalf of the Board of Directors, I am pleased to share the results of AnnAik Limited and its subsidiaries (“AnnAik/the Group”) for the financial year ended 31 December 2022 (“FY 2022”). I am glad that we have delivered another set of remarkable scorecards despite continued challenges from COVID-19 (Coronavirus Disease 2019) in FY 2022. I am thankful that with prudent, strong operational resilience and with an agile team in the Group, we navigated through another year to achieve continued business growth and profitability.

Singapore has slowly returned to normalcy as borders reopened and social distancing requirements having been lifted since April 2022. We have adopted a new operating approach and moved towards an endemic living environment with COVID-19. Sailing through the third year of COVID-19, AnnAik has grown even stronger in all business divisions through our strategy of  “A Sustaining Steel Business and Growing Environmental Business”. The hike in steel prices and strong demand for steel products since early 2021 fully flowed into FY 2022; which lead to higher turnover and results achieved in distribution of steel products business and manufacturing of steel flanges division. The stable environmental division with predictable cash inflows and profit continued to be the cornerstone for strengthening the Group’s results.

As major economies have opened up for trade activities and connection to the World, Singapore’s Gross Domestic Product (“GDP”) grew by 3.6% in FY 2022. The Ministry of Trade and Industry (“MTI”) is maintaining Singapore’s GDP growth forecast at 0.5% to 2.5% for FY 2023 especially with the expectation of positive impacts from recent opening the PRC in January 2023. Barring any unforeseen circumstances, such as constraints caused by emergence of a new COVID-19 variant, persistent inflation with an abnormally high interest rate environment and geopolitical tensions from the Russian-Ukrainian conflict, we are cautiously optimistic of expecting a sustainable operating environment for our business in FY 2023.

Striking a Respectable Performance

Tapping on the hike of steel prices, strong demand of steel products since early 2021 and predictable contribution of the environmental division, our Group has achieved a remarkable profit attributable to owners of the Company of S$5.53 million for the financial ended 31 December 2022.

Distribution of steel products business and manufacturing of steel flanges division registered a higher turnover and profit contribution to the Group. Our distribution of steel business in Singapore will continue to position well so as to serve customers in regions with competitive pricing, quality products and value-added delivery services through our extensive stocks holding and ranges position in Singapore and Malaysia. Our manufacturing of steel flanges division will aggressively promote its SHINSEI brand for flanges and its newly added product; fittings through brand awareness and marketing activities in Malaysia.

As a result of low profit margin contributions from the trading of steel business in FY 2022, we have temporarily ceased this business since September 2022 after thorough internal review and to only focus on the trading of non-steel products following our diversification of trading business strategy. Our core distribution of steel products under the distribution division remains. We will continuously develop our non-steel trading business under the distribution division to complement our core distribution of steel products and manufacturing of steel flanges businesses.

Our environmental business is maintaining its healthy contribution of profit and cash flows to the Group in FY 2022. We are actively participating in some of the tenders in Singapore and the PRC in order to top up our order book of Engineering, Procurement and Construction (“EPC”) projects. Recent completion of the upgrading of the wastewater treatment plant in Changxing LiJiaXiang New Era Wastewater Treatment Co., Ltd has enhanced our assets value and capability to meet stringent requirements set by the Ministry of Environment in PRC. It is heartening to note that the environmental division has consistently proven to be growing especially with the current strong support from government in green environment investment.

Realising Growth Opportunities

One wastewater treatment project in Shuanglin (Huzhou) Wastewater Treatment Co., Ltd is currently under construction and scheduled for completion in 3rd quarter of FY 2023. Again, our local team in PRC has demonstrated our ability in process design, adoption of treatment technology, management and investment capabilities for our environmental division. We will continue looking for similar opportunities in the PRC and the region for expansion.

A breakthrough of a new EPC project secured in the beginning of FY 2022 from a GLC-linked company has added our confidence, to undertake bigger and more complex projects in Singapore, by tapping on our extensive knowledge and expertise in the hazardous wastewater treatment business. We are currently participating in a few more tenders from GLC-linked companies with an aim to increase order book of our EPC business in hazardous wastewater treatment business.

Looking Ahead for New Growth

The Group has also embarked on the trading of new materials at end of FY 2022. The successful deliveries of these new materials can further diversify our trading of non-steel business, coupled with a better profit margin contribution. From the recent experience garnered in this trading of new material, we are planning to set up a processing plant in Singapore and the region in the near future so can make this business our next growth engine of the Group.

We remain confident and trust that with our Group’s collective resilience and perseverance and under the stewardship of the Board of Directors, backed by the collective efforts of the management team, we continue to have faith in our commitment to build a new long term sustainable business and enhance value for our shareholders and other stakeholders.

Understanding the Challenges Ahead

Looking ahead, the global business landscape continues to present business and operational challenges for the Group such as uncertainties with COVID-19 mutations, ongoing geopolitical tensions, significant inflationary pressures, rising interest rates and a potential recession in FY 2023. We shall continue to exercise strict financial prudence in cost and working capital management, focus on operational efficiency and mitigate business risks.


We are very heartened by the unwavering support from our shareholders during the year. To show our appreciation, the Board of Directors is pleased to propose a first and final one-tier tax-exempt dividend of 0.4 Singapore cents per share for the year ended 31 December 2022. The dividend will be paid out to shareholders upon approval at the annual general meeting.

In Appreciation

On behalf of the Board of Directors, I would like to thank the team for their dedication and commitment throughout the year which has allowed the Group to thrive. Their efforts and contributions have been instrumental in the Group’s growth journey. I would also like to express our appreciation to our customers, vendors and business partners for their unwavering faith and confidence in us. We are grateful to have you on our journey and we look forward to this continued support as we endeavour to achieve new milestones and greater times together.

We remain committed to realising our strategic objectives and achieving our profitability goals. Apart from keeping a strong focus on our existing businesses, we will also adapt our strategy in tandem with shifts in the economic landscape so as to stay competitive and ready to take advantage of new growth opportunities.

Annaik Limited Annual Report 2022.pdf

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