xprs xpress annual report 2011 - from a ripple in singapore, to a wave in asia
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Annual ReportXpress Holdings Ltd
2011
Speed
Quality
Service
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The journey o Xpress starts with the frst drop here in Singapore, which created ripples
and subsequently propagated to become magnifcent waves in oreign markets.
A Single Drop StartsA MAGNIFICENT JOURNEY
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VisionTo be the industry leader in time-sensitive printing services
with unsurpassed reputation or speed, absolute reliability
and uncompromising quality.
MissionTo exceed customer expectations through service
excellence and product innovation; reach and surpass
shareholder expectations by striving or new growth andcost eciencies; develop employee potential by providing
a challenging, but sae and happy work environment; be
considerate to supplier needs by being air and reasonable;
and be socially and environmentally conscious, and where
possible, to positively contribute back to the society.
01 Vision & Mission02 Financial Highlights
03 Company Prole
04 Corporate Inormation
CONTENTS
05 Group Structure07 Commendations
08 Chairmans Statement
10 Board o Directors
14 Key Management16 Operations Review
20 Our Products
22 Our Geographical Presence
24 Milestones26 Achievements
27 Corporate Governance
40 Financial Contents
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Financial Highlights
GROUP FINANCIALS AT 31 JULY 2011
$000
2010
$000
2009
$000
2008
$000
2007
$000
INCOME STATEMENT
Revenue 48,313 59,545 54,999 61,290 35,907
Operating EBITDA* 9,274 8,476 8,927 10,861 9,350
Prot beore income tax 5,289 8,916 10,291 10,311 6,891
Net prot ater tax and minority interests 5,263 8,470 13,025 10,234 7,087
BALANCE SHEET
Total assets 163,303 164,678 165,819 142,882 120,498
Net tangible assets 75,996 78,517 80,558 46,865 38,148Total equity 140,480 143,001 145,042 111,349 102,632
Total liabilities 22,823 21,677 20,777 31,533 17,866
Cash and cash equivalents 6,656 10,772 10,775 12,813 3,323
PER SHARE DATA (SINGAPORE CENTS)
Earnings per share - basic and diluted 0.34 0.55 0.93 0.74 0.54
Net dividend (Final) 0.03 0.06 0.11 0.13 0.12
Net dividend (Special) - - 0.04 - -
Net tangible assets 4.91 5.1 5.2 3.36 2.73
Return on average shareholders equity (%) 3.7% 5.9% 10.2% 9.6% 7.6%
*Operating EBITDA is defned as proft beore tax excluding fnancing costs, depreciation, amortization and non-operating income.
GROUP REVENUE ($M)
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
61.3 9.6
55.0
4.2
59.5
4.7
48.35.3
OPERATING PROFIT BEFORE TAX ($M)
35.9
4.8
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Company Profle
Established in 1986, Xpress was listed on the SGX Mainboard on 28 June 1999. With its headquarters
in Singapore, the Groups sta strength o 451 is united by its core values and commitment to excellenceand quality.
The Group oers the ull range o print management services that include conceptualisation, design,
copywriting, translation, typesetting and colour proong; printing; post-press packaging; global
distribution and delivery.
Xpress fagship Print Stations, its sales and service centres, are strategically located at the heart o the
business districts in the key cities o China, Vietnam, the Philippines, Malaysia, Hong Kong, Australia
and Singapore. Supported by a comprehensive network o printing acilities, Xpress Print Stations
provide clients easy-access to print services at quick-turnaround time in close proximities. The On-SitePrint Stations provide an extension o its services by bringing them right to the clients premises.
Products o Xpress include nancial research reports, annual reports, asset management reports, IPO
prospectuses, corporate brochures, year books, magazines and other commercial publications and
collaterals.
With innovative use o technology, Xpress will continuously revolutionise the pace o competition in the
printing industry and raise the standards o customer service by oering unsurpassed convenience,
quality, speed and reliability to its customers.
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Corporate Inormation
BOARD OF DIRECTORSDr Wang Kai YuenIndependent and Non Executive ChairmanMr Fong Kah Kuen @ Foong Kah KuenChie Executive Ofcer / Executive Director
Mr Darlington Tseng Te-LinExecutive Director
Mr Victor Khoo Choon MengExecutive Director
Mr Christopher Chong Meng TakIndependent Director
Ms Ong Wui LengAlternate Director to Mr Christopher Chong Meng Tak
Mr Lai Hock MengIndependent Director
Dr Lee Tsu-Der
Non Independent and Non Executive Director
Mr Jerry Lee Yin ChiaNon Independent and Non Executive Director
Mr Sam Chong KeenNon Independent and Non Executive Director
AUDIT COMMITTEE
Mr Christopher Chong Meng Tak(Chairman)
Dr Wang Kai YuenMr Jerry Lee Yin ChiaMr Sam Chong KeenMr Lai Hock Meng
NOMINATING COMMITTEE
Dr Wang Kai Yuen (Chairman)
Mr Christopher Chong Meng TakMr Jerry Lee Yin ChiaREMUNERATION COMMITTEE
Dr Wang Kai Yuen (Chairman)
Mr Sam Chong KeenMr Lai Hock Meng
INVESTMENT AND RISK MANAGEMENT COMMITTEEMr Christopher Chong Meng Tak (Chairman)
Dr Wang Kai YuenMr Jerry Lee Yin ChiaMr Lai Hock MengSECRETARY
Ms Yeo Poh Noi Caroline
REGISTERED OFFICENo 1 Kallang Way 2ACommunications Techno CentreSingapore 347495Tel: (65) 6880 2828Fax: (65) 6880 2998
Website: www.xpress.sgSHARE REGISTRAR
Boardroom Corporate & Advisory Services Pte. Ltd.50 Rafes Place#32-01 Singapore Land Tower
Singapore 048623AUDITORS
Foo Kon Tan Grant Thornton LLP, Certied Public Accountants47 Hill Street #05-01Chinese Chamber o Commerce BuildingSingapore 179365
AUDIT PARTNER-IN-CHARGE
Mr Toh Kim Teck(Appointment since nancial year ended 31 July 2011)Principal BankersUnited Overseas Bank LimitedThe Bank o East Asia, Limited
Company Registration No. 199902058Z
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100%Xpress Print
(Pte) Ltd
100%Precise MediaGroup Limited
100%Xpress Print
(Vietnam) Co., Ltd
Xpress Holdings(Korea Branch Oce)
76%Xpress Print(Australia) Pty Ltd
100%Xpress Print(K.L.) Sdn Bhd
100%Xpress Print(H.K.) Limited
100%Xpress MediaPte Ltd
100%Xpress Media
Philippines Inc.
100%Xpress Print(Taiwan BranchOce)
100%Print Planner(Beijing) Co., Ltd
100%Print Planner
(Hong Kong) Limited
100%Xpress Print(Shanghai) Co., Ltd
100%Print Planner(Shenzhen) Co., Ltd
100%Shenzhen Xpress PrintTechnology Co., Ltd
100%Print Planner (Intl) Limited
100%Print Planner(Chengdu) Co., Ltd
100%Xpress Print
(Shenyang) Co., Ltd
XPRESS HOLDINGS LTD
100%Xpress Print
(Shenzhen) Co., Ltd
50%Shenzhen Xpress WisdomTranslation Co., Ltd
100%Xpress Print(Shenzhen) Co., Ltd Xiamen Branch
100%Xpress Print(Shenzhen) Co., Ltd Wuhan Branch
100%Xpress Print(Shenzhen) Co., Ltd Changsha Branch
100%
Xpress Print(Shenzhen) Co., Ltd Guangzhou Branch
Group Structure
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The journey o a thousand miles begins with the frst step.
Lao-Tzu, Philosopher
TheJOURNEYoXpressbegins with our ocus on
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We would like to thank Xpress for the professionalism, attention to detail, patience and hardwork during the conference It has been a real pleasure working with you to be able to
turn the printing around in 24 hours was a relief. We look forward to working with you again
in the future.
Macquarie Capital Advisers
With the useful contributions of the Xpress Printing Vietnam, Savico got the Award of the
Best Annual Report 2008, which is one of the most important awards for listed companies and
Savico in particular. Besides that, we do appreciate the attitude and the professional working
style of the Xpress staff. We always believe in the quality of Xpress Printings services and
products.
Savico Group, Vietnam
You guys did a wonderful job. You actually exceeded our expectations! You obviously did not
scrimp the suppliers, and the production team was really good. Taking our endorser being lateand the PR angle aside, the event was suave. Hopefully this translates to good media mileage. =)
Again, thank you so much!
Unica Hija, Philippines
I would like to thank you and your team for your great support during the last couple of days
on helping us with the printed materials in preparing for our presentation. We just returned
from the client and the presentation went well. A big Thank You for your exibility and
prompt handling. We really appreciate working with you and are looking forward to more
cooperation in Beijing!
KPMG Hongkong
, QDII !
!
, !
Once again, thank you very much for your support and additional times over the weekend
and late nights to smooth the completion of the Annual Report for printing.
China Yuchai International Limited
A big thank you to your team for the great work and the reduction in the number of boxes which
kept our costs down. I realize this was quite a bit of manual work for your team. Thank you for
the commitment to excellence.
GMS KK - Japan
! ,
, , .
, , ,
.!
Commendations
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Chairmans Statement
Dr Wang Kai Yuen
Independent Non-Executive Chairman
In the space o a ewshort years, we havedramatically expanded
our Print Stations intoa vast network to meetconsumer demand orconvenience and rapidturnaround.
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Dear Shareholders
It gives me great pleasure to present the annual report
or Xpress Holdings Ltd (Xpress or the Group) or the
nancial year ended 31 July 2011 (FY2011).
A Year o Progress and Transormation
The legendary philosopher Lao-Tzu noted that The
journey o a thousand miles begins with the rst step.
The journey o Xpress begins with our ocus on ast
turnaround and uncompromised quality. These core
values inculcated in our sta wherever we do business,establishing Xpress as a brand synonymous with the
best in printing solutions. Combined with our highly
scalable processes and technology, our core values
provide a robust oundation upon which to build our
business. In the space o a ew short years, we have
dramatically expanded our Print Stations into a vast
network to meet consumer demand or convenience and
rapid turnaround. These Print Stations are also proving
to be remarkably eective gateways to VIP customers
with premium print solution needs. Numerous new
multinational and leading corporations have already been
secured as clients through this strategy.
Our investment in brand building has been recognized
in the Singapore Prestige Brands awards 2010, where
Xpress was one o the ve winners in the Regional Brands
Category. This ollows our award as Overall Winner o the
Established Brands Award category in the prior year, as
well as our being named a Business Superbrand in 2010.
Financial Perormance
Our Group perormed well in FY2011 amidst acompetitive business environment. The reocusing o
our business and customer mix boosted margins and
protability, despite a reduction in revenue. In FY2011,
Xpress recorded revenue o S$48.3 million. This compares
to S$59.5 million in the prior year, which included S$9.0
million o sales rom a joint printing project. However, our
gross margin percentage expanded 6 percentage points
rom 50.1% in FY2010 to 56.1% in FY2011. This was
primarily driven by a bigger proportion o higher margin
business, which includes print management.
Net Prot Ater Tax (NPAT) or FY2011 was S$5.3
million, lower than the prior year which included S$4.3
million o gains rom the disposal o an investment.
Excluding this non-operating item, FY2011 NPAT rose
$1.1 million which was 26.2% higher than the prior year.
Dividend
The Board o Directors proposes a ull and nal dividend
o 0.03 cent per share or FY2011 compared to the 0.06
cent per share o the prior year. This is lower becauseo the absence o investment gains in FY2011 and the
need to preserve cash or uture expansion opportunities
available to the Group.
Outlook
Despite uncertainties in regard to the global economy
and the euro debts crisis, we are well on track to deliver
our strategic roadmap to scale our unique business
model to stay competitive and protable. Xpress has
become a successul regional brand, but we must not
slow down. To continue to be the leader in our niche o
time-sensitive nancial and commercial printing, we will
be relentless in our unwavering quest to oer enhanced
value to customers.
Thanks and Appreciation
The last year has been an important year in the
reinvigoration o our business. I take this opportunity to
extend my deep appreciation to our valued shareholders,
clients, business associates and sta or their support,
as well as to my Board o Directors or the wise counsel.I look orward to working closely with each o you as
we scale our Group to even greater heights in the years
ahead.
Dr Wang Kai Yuen
Independent Non-Executive Chairman
28 October 2011
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Board o Directors
Dr Wang Kai Yuen
Independent Non-Executive Chairman
Dr Wang Kai Yuen was appointed as Independent Non-
Executive Chairman on 25 March 2002. He chairs the
Nominating Committee and Remuneration Committee,
and is also a member o the Audit Committee.
Formerly the Managing Director o Fuji Xerox SingaporeSotware Centre, he interacted with senior business and
product development managers in the US, China and
Japan o the global oce equipment company. He retired
rom Fuji Xerox in December 2009.
Because o his extensive exposure overseas, Dr
Wang is amiliar with American and Asian cultures,
international business practices and corporate nance
and governance. Dr Wang had also participated in many
international meetings o parliamentarians during his
tenure as Member o Parliament rom 1984 to 2006. He
has wide business and political contacts in China, having
led many grassroots delegations to visit numerous city
and state governments. In 2005, Dr Wang was appointed
as a Member in the Foreign Specialist Committee
Overseas Chinese Aairs Oce o the State Council,
Peoples Republic o China.
Dr Wang graduated in 1972 with First Class Honours
degree in Electrical and Electronics rom the National
University o Singapore, and holds a Master o Science
in Electrical Engineering with a PhD in Engineering rom
Stanord University.
K K Fong PBM
Founder, CEO & Executive Director,
Xpress Holdings Ltd
Mr K K Fong (Fong Kah Kuen) was re-appointed as
Chie Executive Ocer & Executive Director on 16 May
2010. He has over 30 years o experience in the printing
industry and served Xpress as its Chie Operating Ocer
since 2006. Based in Shenzhen, he was responsible orthe general management o the Group and the promotion
o its activities and expansion in the region.
Mr K K Fong plays a pivotal role in setting the strategic
direction or the Group and has been instrumental in the
Groups expansion, particularly in the Peoples Republic
o China (PRC). He is also responsible or orging the
strategic relationships with the Groups major business
partners. He spearheaded the business development in
the PRC and built up the Groups robust print solution
business, the engine o growth or Xpress.
He is a recipient o various national business awards
such as the National IT Award, the Enterprise o the Year
Award, Enterprise 50 Awards, and the Entrepreneur o
the Year Award. For his contributions to Singapore, he
was conerred the Public Service Medal by the President
o the Republic o Singapore in 2010.
Dr Wang Kai Yuen K K Fong
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Darlington Tseng Te-Lin
Executive Director
Mr Darlington Tseng was appointed as Executive Director
on 1 March 2008. He joined Xpress on 2 July 2007 as
Director o Business Development or Greater China.
Prior to joining Xpress, Mr Tseng held a senior executive
position at BASF Taiwan Ltd, rom 2005 to 2007. Hegained extensive knowledge o the regions business
climate during his tenure with BASFs regional business
unit, where he collected vast market analyses and
ormulated strong marketing strategies. Between 1998
and 2002, Mr. Tseng also worked in the chemical
industry or AGI Corporation based in Taiwan where he
was responsible or the companys overseas market and
successully set up the companys Mexico manuacturing
plant that produces specialty varnish or printing/
coating industry.
With his extensive knowledge o the regional business
climate, Mr Tseng is responsible or strategising the
Groups penetration into the Greater China markets
and growth opportunities in the Asia-Pacic markets.
He is also involved in expanding the business and
managing the development o service oerings to the
Groups VIP accounts in China. To sustain the Groups
continuing growth, he spearheaded the re-engineering
o operations to strengthen the Groups business model,
while enhancing customer service, attracting and
nurturing talent.
Mr Tseng graduated with Honours rom Peking Universitys
International Masters o Business Administration.
Victor Khoo Choon Meng
Executive Director
Mr Victor Khoo was appointed as Executive Director
on 1 March 2008. He is also the Director o Sales
and Marketing, responsible or the management and
supervision o the Groups sales and marketing plans.
Mr Khoo joined Xpress in 1996 as an Account Manager,servicing the Groups nancial printing clients. He
spearheaded Xpress Asset Management business,
which continues to be a key product under the nancial
printing market. Mr Khoo is responsible or strategic
planning and sales. He has standardised Xpress
sales and customer service methodologies, ensuring
consistent products and services are oered across
all Print Stations. With vast experience in account and
project management, he is also directly involved in
acquiring, servicing and retaining key strategic accounts
o the Group.
Mr Khoo graduated in 1994 with a Bachelor o
Commerce degree in Finance and Marketing rom
Murdoch University, Western Australia.
Darlington Tseng Te-Lin Victor Khoo Choon Meng
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Board o Directors
Christopher Chong Meng TakIndependent Director
Mr Christopher Chong, Independent Director and
Chairman o the Audit and Risk Management & Investment
Committees, was appointed on 5 December 2001. He
was previously the CEO o HSBC Securities (Singapore)
Pte Ltd and prior to that an Executive Director o Kay
Hian James Capel Ltd. Mr Chong was a multi-award
winning analyst, is a capital markets specialist and has
signicant expertise on Corporate Governance.
Mr Chong is a partner o ACH Investments Pte Ltd, a
specialist corporate advisory rm, and is an Independent
Director o: ASL Marine Ltd, Koda Holdings Ltd, Lorenzo
International Ltd (listed on the Singapore Exchange); GLG
Corp Ltd, Koon Holdings Ltd (listed on the Australian
Securities Exchange) and Imagi International Holdings
Limited (listed on the Hong Kong Stock Exchange).
Mr Chong is a member o the Institute o Chartered
Accountants o Scotland and a ellow o the Australian
Institute o CPAs, the HK Institute o CPAs, the Australian
Institute o Directors and the Singapore Institute oDirectors. He is also a master stockbroker o SIDA.
Mr Chong holds First Class Honours Bachelor o Science
degree rom the University College o Wales and an MBA
rom the London Business School.
Ong Wui Leng
Alternate Director to Mr Christopher Chong Meng Tak
Ms Ong was appointed the Alternate Director to Mr
Christopher Chong on 22 July 2009. She has more
than 25 years o experience in corporate banking andcorporate nance.
Ms Ong gained some 10 years o corporate banking
experience, having worked or two European banks in
Singapore. Her corporate nance experience was gainedrom working with several listed companies in Singapore
since 1992. Ms Ong held the position o Head o Issuer
Regulation or the Singapore Exchange Limited (SGX)
rom 2005 to 2007. She currently holds directorship
or SiS International Holdings Limited and is also the
Executive Partner o BlackInk Corporate Partners Pte
Ltd.
Ms Ong holds a Bachelor o Science (Economics) in
Management Studies rom the University o London,
United Kingdom and a Master o Practising Accounting
rom the Monash University, Australia.
Lai Hock Meng
Independent Director
Mr Lai Hock Meng was appointed as an Independent
Director on 1 March 2008. He spent more than 26
years in the nancial industry, including central banking,
investment banking, private banking, stockbroking and
private equity investments.
Mr Lai rst started his career in the Monetary Authority oSingapore in 1980. He then moved on to the private sector
and attained senior management position in various global
institutions such as Deutsche Morgan Grenell & Partners
Securities, SocGen-Crosby Securities, Citigroup Private
Bank and OCBC Private Bank. Presently, he is involved
in private equity investments, and sits on board o several
listed companies as independent director.
A veteran investment banker, Mr Lai brings to the Group
vast experience in the global nancial industry and
extensive knowledge o the worlds capital markets.
Mr Lai graduated with a Bachelor o Arts (Honours)
degree in Economics rom the University o Cambridge,
UK. He is also a ellow o UK Chartered Institute o
Marketing, and a Chartered Financial Analyst (CFA) o
The CFA Institute in the USA.
Christopher Chong Meng Tak Lai Hock Meng
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Dr Lee Tsu-DerNon-Executive Non-Independent Director
Dr Lee Tsu-Der was appointed as Non-Executive Non-
Independent Director on 15 December 2004.
He brings with him extensive business experience and
market knowledge o China, Taiwan and Hong Kong,
and provides strategic development and investment
guidance to the Group.
With a medical background, Dr Lee joined H&Q Asia
Pacic (Taiwan) in 1995 and served as the Chie Advisor
or its China Investments. From 1995 to 1998, he
played important roles in various key investments in
China covering Pharmaceutical, Biotech, Media, and
Consumer Goods industry. Between 1999 and 2003, Dr
Lee served as the General Manager o H&Q Asia Pacic
(China). He had also ormerly served as the Chairman to
Starbucks Coee Beijing Limited, as well as Shan Dong
Kexing Biotech Company.
Dr Lee is currently the Vice Chairman o H&Q Asia Pacic
(Taiwan), and an Independent Director or Hsu Fu ChiInternational Ltd. He obtained his medical degree in
dentistry rom Taipei Medical University in Taiwan and is
now the Chairman o the Taipei Medical University.
Jerry Lee Yin Chia
Non-Executive Non-Independent Director
Mr Jerry Lee was appointed as Non-Executive Non-
Independent Director on 15 December 2004. He has
worked in various locations with ocus on Corporate
Finance and M&A, bringing to the Group extensive
multinational nancial knowledge and experience.Leveraging on his cross-border nancial service
experience, Mr Lee has completed several sizeable
investment and acquisitions in China.
Mr Lee has a Bachelor degree in Finance rom New YorkUniversity and a MBA degree rom Peking University in
Beijing.
Sam Chong Keen
Non-Executive Non-Independent Director
Mr Sam Chong Keen was rst appointed as an
Independent Non-Executive Director on 5 December
2001. Between 2006 and 2008, he served the Group
as the Chie Executive Ocer, and was re-appointed
as Non-Executive Non-Independent Director on 16
February 2008.
Mr Sam has a wealth o management experience, having
held senior/CEO positions in the Singapore Government
Administrative Service, National Trades Union Congress,
Intraco Ltd, Comort Group Ltd, VICOM Ltd, Lion Asiapac
Ltd, Lion Teck Chiang Ltd, Jade Technologies Holdings
Ltd and Sino-Environment Technology Group Limited.
Mr Sam was the Political Secretary to the Minister or
Education rom 1988 to 1991. He has served on various
government boards and committees, including theCentral Provident Fund Board and the National Co-
operative Federation.
Mr Sam holds a Bachelor o Arts(Honours) in Engineering
Science & Economics and a Master o Arts rom
University o Oxord, as well as a Diploma rom the
Institute o Marketing, United Kingdom.
Dr Lee Tsu-Der Jerry Lee Yin Chia Sam Chong Keen
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Key Management
Eleanor Fong Sau KwanExecutive Director, Xpress Print Pte Ltd
Ms Fong joined the Group in March 1992 and was appointed the Executive
Director o Xpress Print Pte Ltd. She also served as an Executive Director
or Xpress Holdings Ltd between 5 December 2001 and 26 February 2007.
She brings to the Group concrete strengths in international relations and
management expertise. Ms Fongs current responsibilities involve developing
the Groups regional clientele, as well as overseeing the activities o the sales
and marketing department.
Foong Sow Peng
Operations Director, Xpress Print Pte Ltd
Ms Foong joined the Group in April 1995 and was appointed Operations
Director o Xpress Print Pte Ltd. She is trained in actory management and
holds a Diploma in Production Engineering rom the Singapore Polytechnic.With over 30 years o experience in multinational corporations, Ms Foong is
responsible or the Groups printing operations and publishing activities.
Adeline Chee Choon Lee
Head o Human Resources & Administration,
Xpress Holdings Ltd
Ms Chee joined Xpress in March 1994 and is responsible or the Groups
regional human resources. Her responsibilities include strategic human
resource planning and recruitment. She holds a Bachelor o Arts degree rom
the National University o Singapore and a Graduate Diploma in Personnel
Management rom the Singapore Institute o Management.
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Wong Siew HongGroup Financial Controller, Xpress Holdings Ltd
Mr Wong joined Xpress Holdings Ltd as Group Financial Controller in November
2010.He is responsible or the nancial management and nancial reporting
unctions o the group. Prior to joining the company, he was the Chie Financial
Ocer o another public listed company.
Mr Wong has more than 20 years working experience both in the auditing
and commercial sectors.
He holds a Bachelor o Accountancy rom the National University and is amember o the Institute o Certied Public Accountants o Singapore.
Wu Wei Dong
Chie Executive Ocer, China Operations
Mr Wu joined the Group in July 2007 as General Manager. He has in-depth
knowledge o the PRC printing industry and extensive media contacts. He
plays a crucial role in ormulating strategies to bolster the Groups long termbusiness expansion in the PRC and is also responsible or the nancial and
operational procedures or the country. Mr Wu is an accounts graduate rom
Hunan Business College.
Lim Shin Ee
Chie Operating Ocer, China Operations
Ms Lim is the Chie Operating Ocer, spearheading the division which
centrally co-ordinates all business and operational activities within the Groups
network. Her responsibilities include streamlining the operations processes,
and ensuring a more cost-eective and timely management o procurement
activities, design, printing and ulllment solutions or the Groups large base
o clients in dierent global markets.
Ms Lim relocated to China or over the last ten years, where she is appointed
as the Chie Operating Ocer o the Groups subsidiary Precise Media Group,
overseeing its sales, marketing and print operation activities since 2006.
She graduated with a Bachelor o Business degree in Marketing rom the
University o Newcastle (Australia) in 1997.
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Operations Review
FROM A
IN SINGAPORE,
RIPPLE
Our Group continuesto use multiplemediums to raise ourmarket presence andsecure high-valueclients and synergisticpartnerships with
well-networkedcorporations.
K K FongPBM
Founder, CEO & Executive Director,Xpress Holdings Ltd
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From Niche to Niche Speed, Quality and Customer Service
Right rom the beginning, unprecedented speed, accuracy and
uncompromised quality were identied as the key values to dierentiate
our business. With a mission to deliver these values, Xpress invested
and leveraged inormation technology in innovative ways to enhance
quality and reduce turnaround times.
Xpress rapidly built a reputation as the printer o choice or ast-paced
nancial institutions demanding time-sensitive research report printing.
Our Group became the unquestioned leader in this niche, playing a
vital printing role in regional nancial centers, especially Singapore and
Hong Kong.
Xpress has continued to build upon this heritage, and continues
to set ourselves apart rom the conventional printing industry with
consistently high-quality, accurate and innovative services and
unbeatable turnaround time.
Print stations - Extending Our Vast Network
The enormous improvement in the speed and quality o printing over
the years has enabled Xpress to elevate our service to an even higher
level across Asia.
We have continued to execute upon the strategy begun in 2007 to
widen our market penetration and reach by setting up Print Stations
in the Central Business Districts o major cities. By locating ourselves
where customers are our clients have convenient access to total
TO AWAVE
80 Robinson, Singapore
Speed
Qualit
y
Service
IN ASIA
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Operations Review
print services that include consultancy, concept development and
layout, photography and art direction, editorial and translation. Thesuccess o our Print Station concept has made it a brand icon or
Xpress, particularly in China, Vietnam, the Philippines, Malaysia, Hong
Kong, Indonesia and Australia.
On-site Print Stations - Securing VIP Clients
As client demands have grown in scale and complexity, Xpress
has developed a value proposition our VIP clients cannot reuse
embedding a Print Station within their premises to become an integral
and high value component o their business.
Our strategy o embedding Print Stations on the premises o VIP
clients is proving extraordinarily successul at generating new high
margin business or our Group. These acilities build deep interaction
and rapport as senior Xpress managers act as brand ambassadors,
engaging our clients senior management at a much deeper level than
our competitors and requently being responsible or key components
o our clients workfow and logistics. In FY2011, the suite o service
available to clients was urther enhanced to include supplying corporate
gits, premiums and large-ormat printing.
Xpress currently has Print Stations embedded within the premises o 16
VIP clients, which are typically multinational and leading corporations.
For example, the entire print needs o General Electrics China
operations o more than 10,000 sta are managed by our Group, and
we were recognised as their The Best Innovation Solutions Supplier
or 2009.
In February 2011, our Group signed a Global Partnership Agreement
with DHL Global Mail under which we became their global print
management partner. This is expected to ultimately see our services
extended to DHLs global network o internal sta and external clients
and is a strategic global partnership which urther strengthens our
position as a market leader in the print industry regionally and globally.
Collaboration - Win Win Win Model
In support o our Rafes Education, the largest private education group
in the Asia Pacic and our VIP client, two new Print Stations were
established in FY2011. In November 2010, the Rafes Education
College Hong Kong Print Station was inaugurated. In December 2010,
Xpress opened another Print Station within Rafes International College
(RIC) Vietnam. Both Print Stations are equipped with a ull range o
printers and post press machines, giving sta and students access
80 Robinson, Singapore
Rafes Education Corporation On-Site Print Station
Executive Director Mr Darllington Tseng receives theGE China Award (July 2010)
Rafes Education Corporation Hong Kong On-Site
Print Station
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to unprecedented convenience, quality, speed and value-added
conveniences such as on-site design and post-press nishing. As wellas expanding our branding and network across the Asia-Pacic, these
Print Stations also provide students with collaboration, internship and
employment opportunities within Xpress and our expansive network o
business partners throughout the region.
In July 2011, Xpress launched the Mount Faber Xpress Print Station
on Sentosa Island, Singapore in a tripartite partnership with Canon
and Mount Faber Leisure Group. This heralds yet another innovation in
our service delivery model. The unique combination o distinctive key
strengths Print Management by Xpress, Technology and Hardware
by Canon and Volume Giant by Mount Faber Leisure Group achievesa win-win-win outcome or all.
Staying Ahead - Leveraging Technology
During FY2011, our Group continued to develop our proprietary Print
Wizard Platorm technology. This online customizable procurement
platorm allows clients to print and track their orders rom any location
in the world, seamlessly blending precision workfow planning with the
unmistakable speed and quality associated with the Xpress brand onto
the computer interace o our clients. Our Print Wizard Platorm has
been extensively deployed by our VIP clients.
Building the Xpress Brand
During FY2011, Xpress was presented with yet another accolade the
Singapore Quality Class Certication by SPRING Singapore. This SQC
Certication is a recognition o Xpress business excellence in terms
o seven areas namely Leadership, Planning, Inormation, People,
Processes, Customers and Results on an international scale.
Following Xpress spectacular perormance in 2009 Singapore Prestige
Brand Award(SPBA), Xpress won the 2010 Singapore Prestige Brand
Award under the Regional Brands category.
Our Group continues to use multiple mediums to raise our market
presence and secure high-value clients and synergistic partnerships
with well-networked corporations. In January 2011, Xpress co-
organized the rst ever CCTV Chinas Economic Leaders o 2010
Singapore Forum, outside o China. Themed Opportunities in
China during the Global Transitional Period, this lmed orum drew
extensive media coverage, elevating our brand image and providing
invaluable access to international and PRC investors and corporations.
Sot launch o Mount Faber Xpress Print Station on29 July 2011 in Sentosa Island
Print wizard & automation
CCTV Economic Forum on 6 January 2011 atShangri-La Hotel
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Commercial Print
Each Ripple Carries
Our Brand Identity
Financial Print
Our Products
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Large Format Printing
Corporate Premiums
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For Xpress to thrive in this challenging industry, ithas to be a leader in the print industry regionally.We have presence in 19 cities across the Asia-Pacifc region, where our Print Stations and On-Site Print Stations are linked to a robust network o
print acilities.
Ripples Pulsate
Our Geographic Presence
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Our network o Print Stations is strategicallylinked to print actories located within a 15 18hour radius road transport distance.
ACROSS BORDERS
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2008 2009 Revenue in 2008 S$61.3 Mil
Launch of On-Site Print Stations
3 new Print Stations in China - Wuhan, Xiamen and
Changsha
Signed 3 years Print Management contracts worthRMB200 Mil annually with 7 major PRC media
companies
Signed 2 years Print Management contracts worth
RMB140 Mil annually with 6 major PRC publishers in
Hunan province
Sale and leaseback of Kallang Way building for S$14
Mil
Achieved PSO certication for Xpress Print
inSingapore
Revenue in 2009 S$55.0 Mil
Attained record Net Prot for the Group S$13.0 Mil
Business focus on high margin print management
services
Raised S$12.1 Mil in net proceeds through 160million new ordinary shares
Fully redeemed Convertible Bonds and halved the
Groups gearing
Sale of 10.1% equity stake in associated company
Achieved PSO Certication for Xpress Print in
Shenzhen
Waves Reach
Our Milestones
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20112010 Revenue in 2010 S$59.5 Mil
Operating Prot rose by 11.9%
Disposal of 10% equity stake in Jiaxinda
Invested in short print run facility in Beijing
Launch of street-level Print Station at 80 RobinsonRoad in Singapore
Awarded the Overall Winner of the Established
Brands category at the Singapore Prestige Brand
Award, 2009
Awarded The Best Innovation Solutions Supplier of
the Year 2009 by GE China
Awarded the Business Superbrands status for 2010
Re-focus on our core strengths of delivering
incredible speed and uncompromised quality
Emphasise on print-on-demand projects that allow us
to deepen our relationship with existing customers,
and winning new ones Setting up more street-level Print Stations within
the central business districts across the Asia Pacic
region to attract walk-in trac
Develop retail (walk-in) clients to larger corporate
clients
Develop high value corporate clients to become VIP
accounts with embedded On-Site Print Stations right
at their premises
Develop synergistic partnerships or joint ventures with
corporations possessing extensive regional networks
Awarded one of the Winners for Singapore Prestige
Brand Award 2010
Awarded the Singapore Quality Class Certication by
SPRING Singapore
FOREIGN SHORES
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Xpress Holdings Ltds outstanding achievements have been recognised locally andinternationally, in recognition o our excellence in creativity and processes. Ouraccreditations and recent awards include:
ACCREDITATIONSProcess Standard Oset (PSO) Certifcation
PSO is an internationally recognised quality management certication in global standard
graphic technology or oset printing accredited by Fogra.
In 2008, Xpress Print Pte Ltd was the rst in Singapore to be certied.
In 2009, our Shenzhen oce became the rst in China to be certied.
This system denes the requirements rom pre-press to print or predictable and reliable
print quality to ensure aster turnaround time and high print quality with consistent andreproducible colour output across all print locations.
Forest Stewardship Council (FSC) Certifcation
Committed to the protection o the environment, Xpress adopted eco-riendly print
processes which include the use o recycled/certied papers and soy-based inks to
reduce wastage. In 2008, we were accredited with the Forest Stewardship Council
(FSC) certication. FSC is an international, independent, non-governmental, nonprot
organisation established to promote the responsible management o the worlds orests
to meet the social, economic and ecological needs o present and uture generations.
AWARDSSingapore Prestige Brand Awards 2009 & 2010The Singapore Prestige Brand Award recognises and honours Singapore brands that
have developed and managed their brands eectively, and have become the sterling
brand names in Singapore. In December 2009, Xpress Holdings Ltd was awarded the
Overall Winner o the Established Brands. In December 2010, Xpress Holdings Ltd was
also one o the winners o the Regional Brands.
The Best Innovation Solutions Supplier o Year 2009 Award
Xpress Holdings Ltd was presented with the award by the General Electric (GE) China
during their inaugural all-China GE procurement conerence in Pudong, China on 22 July
2010. _ e award recognises Xpress excellent consultative customer service and PrintStation inrastructure. For GE China, Xpress developed innovative solutions to allow GE
Chinas management to achieve central control o print processes and quality across
multiple locations.
Business Superbrands Award 2010
Superbrands Singapore launched Business Superbrands in 2010. Xpress Holdings Ltd
was identied as one o the strongest examples o B2B brands in the local market and
was awarded the Singapore Business Superbrands status or 2010.
Singapore Quality Class Certifcation
The Singapore Quality Class Certication rom SPRING Singapore, is an internationalrecognition o Xpress business excellence standard in terms o seven areas namely,
Leadership, Planning, Inormation, People, Processes, Customers and Results.
Achievements
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