In line with our investment strategy, Chasen has in the past year made several acquisitions and investments, which seek to achieve growth for the Group and to enhance shareholder value. These acquisitions and investments have greatly benefitted the Group as total revenue and profit after tax increased by 127% to S$54.9 million, and 26% to S$3.9 million in FY09 respectively.

In view of the enlarged scope of activities, the Group decided to re-classify its businesses into three segments, namely Relocation Services, Third Party Logistics Services and Technical / Engineering Services. This report seeks to familiarise shareholders with the various operating subsidiaries under each revised business segment

Chasen relocates our customers' sophisticated machinery and equipment to, within, and from one country to another. Over the years, we have successfully relocated many manufacturing facilities for our customers to, within and from the West, Singapore and the Asia Pacific region. Our service capability is exemplified by a good project management team and an experienced group of skilled workforce. With value-added support from our specialised transportation operations and a good range of properly maintained material handling tools and equipment, we continue to be equipped with full capabilities to cater to the needs of our existing customers, as well as, any potential customers who needs us to handle their relocation projects efficiently and effectively.

CLSL aims to be the leading logistics service provider in the region, specialising in machinery and equipment relocation solutions and enhancing its service capabilities to meet the diverse needs of the market place. It serves customers in the high technology multinational and local companies in the wafer fabrication, TFT/LCD display, solar panel and other electronics manufacturing and their support testing industries.

CLSL boasts a comprehensive range of solutions that include relocation services; not only does CLSL cater for inbound and outbound projects, it also provides repositioning and maintenance projects, packing, management and planning services for our customers on a regular or adhoc basis. CLSL is known to be currently operating one of the largest air-conditioned warehousing facilities in Singapore, with an area of 120,000 square feet that is specially catered to store sensitive and sophisticated machinery for its customers.
Owning a fleet of well diversified and state- of-the-art transportation vehicles and material handling tools and equipment are secondary complements in meeting all kinds of specialised relocation demands. CLSL is able to provide Total Logistics Management for its diversified customer base.

In recent months, CLSL has clinched several major relocation projects. Notable among these are the moving-in of the capital equipment and facilities for Norway's Renewable Energy Corporation's ("REC") complex in Tuas, which is the world's largest integrated solar manufacturing complex. This was awarded to CLSL under a contract through its main contractor, M+W Zander (S) Pte Ltd, and another relocation project on 3M's new plant, also in the Tuas area. Other significant achievements included the ASML move-in to TECH Semiconductor plant and the completion of AMKOR and Energizer capital equipment relocation projects.

Recently, CLSL was also awarded the Bizsafe Star Enterprise Award by the Workplace Safety and Health Council, part of the Ministry of Manpower in Singapore. This is the highest certification to recognise companies that implements good safety practices in the workplace.

Both Chasen Hi Tech and Chasen Sino-Sin specialise in domestic and international relocation and resettlement, as well as, packing, handling and warehousing of advanced sophisticated machinery for high technology industries such as semiconductors, LCD/TFT and solar manufacturing facilities. Chasen Hi Tech completed Phase 2 of an LCD/TFT manufacturing plant in the last financial year. Chasen Hi Tech was recently awarded a contract to move- in a customer's solar manufacturing equipment in Bao Ding, PRC.

Chasen Hi Tech operates from Shanghai whilst Chasen Sino-Sin is based in Beijing. Both operations replicate the services of CLSL in the PRC market securing businesses on their own, as well as, executing relocation contracts secured by CLSL from its global clientele base.

Incorporated in Beijing as a result of a joint venture with Beijing Xuan Gu Ge Artefact Restoration Technology Co., Ltd, Chasen Sinology is involved, amongst other things, in the provision of artefact packaging and transportation for both domestic and international art exhibitions and cultural exchanges.

Chasen Sinology's niche is in the provision of a digitisation scanning process that allows it to collate information on the relic pertaining to its history, the material composition and the weak points so that special reinforcements can be provided to protect it from damage during the packaging and transportation. The specialised non-contact packaging fabrication, which completely envelopes a relic to uniformly distribute the stresses that the relic may be subjected to, reduces the risk of damage due to point stresses. Chasen Sinology's CNC machine cutting of the packaging reduces the time of mould fabrication as compared to the previous manual method.

Chasen Sinology also provides relics warehousing, handling, customs declaration and related consultancy services. It commenced operations on 1 April 2009.

In Malaysia, CLSB continues to grow its customer base in the machinery and equipment relocation. Apart from relocation contracts serving the MNC hard- disk/media manufacturer, CLSB has also expanded its packing service facility, thus catering to the needs of its existing and new customer requirements.

CLSB has been awarded the mover service maintenance contract with Intel and will continue to discuss with potential customers on similar management of relocation projects within the territory.

CLSB's operations replicate the services of CLSL in the Malaysian market securing businesses on its own, as well as, executing relocation contracts secured by CLSL from its global clientele base.

Chasen Globus is a new joint venture business between CLSL and Globus Israel International Packing, Shipping & Moving Ltd ("Globus"), a service provider in the areas of relocation of machinery and equipment with operations in Europe and Middle East. This joint venture will allow the Group to tap into Globus' capabilities in crate production, testing capabilities and research and development in machinery packing techniques.

Having established working partnerships in Singapore, Israel and the PRC, Chasen Globus is well-equipped to provide state-of-the-art services to customers across the world.

3PL services comprise packing, warehousing, transportation, freight forwarding, customs brokerage and other supply chain services. We utilise state-of-the-art packaging material when customers' machinery and equipment require special packing before being transported to their new locations. With the use of such specialised material handling equipment certified by Professional Engineers, the Group is able to handle and pack machinery and equipment to the standards of Original Equipment Manufacturers ("OEM"). Customers also store their machinery and equipment in our warehouses while waiting for installation or shipping. Our warehouses are low-rise with appropriately constructed floors that allow cranes and heavy trucks access to the storage areas.

CLSL currently has a total of 200,000 square feet of warehouse space of which 120,000 square feet is air conditioned and is specially catered to store customers' machinery and equipment requiring humidity controlled facilities prior to installation or shipment. This service complements our relocation segment. Besides offering such services, CLSL also owns a comprehensive fleet of specialised transportation and material handling tool and equipment that enables us to provide a Total Solution for our customers.

Like CLSL, these companies were set up to provide complementary services to the relocation segment in the PRC. Both Chasen Shanghai and Chasen Xi'an are involved in the provision of bonded warehousing facilities, logistics and distribution services in Shanghai and Xi'an respectively. They also provide freight forwarding, packing, warehousing management, as well as, import and export services.

DNKH specialises in transportation and offers full scale import and export logistics services in air freight, sea freight, oversize cargo handling, machine moving, show logistics, product distribution and warehousing. With over 40,000 square feet of warehouse space, including bonded warehouses, DNKH customises and tailor-makes operating procedures to cater to customer's specific requirements. Although newly incorporated as a business in December 2008, the management of DNKH has a combined industry experience of more than eight years.

CZE is a Malaysian company specialising in providing third party logistics services such as warehousing, customs brokerage and land transportation covering Thailand, Malaysia and Singapore. It strives to be a world-class transport and warehouse service provider by maintaining the highest level of quality, reliability and affordability in the industry.

CZE owns a sizeable truck fleet comprising a total of 30 units ranging from 45-footer, 40-footer, 24-footer, 5-tonner, 3-tonner and 1-tonner. The majority of these assets are engaged in daily interstate long and short haul transportation runs between Singapore, Thailand and Peninsular Malaysia.

CZE is based in Penang and will serve as the core of Chasen's plan to establish this service throughout Malaysia, starting in the peninsula before extending its reach into East Malaysia.

Technical / Engineering services that complement our turnkey relocation services cover parts refurbishment, engineering and spares support facilities. Its contract manufacturing capability includes operational facilities in Singapore and PRC catering to multinational clientele in the electronics, telecommunications and other high technology industries. It provides parts fabrication and cleaning sales activities to institutions and research facilities in semiconductors, disk media, thin-film transistor LCD, pharmaceutical and back- end packaging industry. This business segment also includes a cyrogenic pump refurbishment workshop in Penang, Malaysia.

In addition, the Group is involved in construction projects of customers in the marine, property development, oil and gas and other energy-related industries.

Incorporated in Singapore, REI seeks to achieve win- win situations with customers and suppliers focusing on effective communication and commitment to tasks delivering products and services at the highest quality at the lowest cost of ownership. It operates a supporting facility in Penang to enable it to be cost effective in its services.

REI's range of products and services includes turnkey solutions in equipment relocation both locally and regionally, mid-size base build facilitisation, office renovation, utilities hookups, cleanroom construction and automation systems. Through the provision of such services, REI has added a new dimension in the turnkey relocation solutions offered by the Group to its customers.

In support of the "green movement", REI has introduced an intelligent energy management system called i.nerv, employing a systemic approach to improve efficiency of air-conditioning system by up to 40%. To this end, it hopes to provide this value-added service to high-rise commercial buildings and condominium owners and managers in the region.

REI Promax aims to be the preferred global partner in precision machining technology for its customers. It has manufacturing facilities in Singapore and Suzhou in the PRC, serving customers in the semiconductor, optical, aerospace, telecommunication and military industries in Singapore and the region, the PRC, US and Europe. REI Promax provides an array of solutions that comprises prototype machining, precision machining for components such as moulds, jigs and fixtures, mechanical sub-assemblies, design and fabrication of special purpose machines and reverse engineering.

REI Promax's tagline, Solutions Through Precision Engineering, is the motivation behind its quality philosophy. It ensures that quality is the responsibility of all and the careful management of all processes ensuring that quality is build into the system. Driven with the desire for continual improvement, REI Promax has been certified with ISO9001:2000.

The GKH Group has been providing scaffolding services since 1984 as a business partnership between two brothers. Following its incorporation as a limited liability company in 1992, it has been a prominent scaffolding equipment and service provider to Singapore's marine and construction industries. An ISO 9001:2000 certified scaffolding solutions provider, the GKH Group has been mandated by Singapore's Ministry of Manpower as an Approved Scaffolding Contractor since 2004.

The GKH Group started providing scaffolding services using timber system and thereafter, switched to providing frame scaffold system and eventually turned to the present tubular and coupling scaffold system. GKH has scored many 'firsts' pertaining to safety performance, among which were the introduction of human catch netting, fall arrest mechanism with lifeline and latest being the introduction of a 1.5m width emergency escape tower in the IR Marina Sands project.

As technology advances, the GKH Group expanded to provide a wider range of scaffold systems, including the modular scaffold system, and started developments on new range of scaffold products to meet industrial needs of the marine and construction industries. GKH has been a long time service supplier to Keppel Shipyard and hitherto, continues to maintain its foothold with the established shipyard. Among the many projects completed were the Floating Storage Oil Tankers ("FSO") and Oil Rig Platforms.

Other notable projects that the GKH Group has undertaken include the Concorde Hotel, Biopolis, Admiralty Industrial Park, National Library and Changi Terminal 3, and is currently providing scaffolds to the REC complex in Tuas, IR Sentosa Theme Park, construction of MRT station at One North and construction of supply vessels at Keppel Shipyard.

HLE is a specialised engineering and structural steel fabrication supplier and installation service provider to the local construction, marine and energy related industries. It is ISO 9001:2000 certified and was accredited structural steel fabricator for category S2 by the Singapore Structural Steel Society in 2005.

Having amassed vast experience in the design, supply and installation of steel fabrication for the construction of industrial buildings, warehouses, factories, shopping malls, link ways and other steel structures in Singapore, HLE has been successful in securing projects in the marine, property development and oil and gas industries.

Recently, HLE has also secured new contracts worth a total of S$12.1 million to provide structural steel- works for the Sentosa Integrated Resort and REC world's largest solar manufacturing complex in Tuas. Together with the new contracts, HLE has an order book of S$21.0 million to be fulfilled by end of 2009.

Among the notable projects completed by HLE include the Ministry of Education headquarters at North Buona Vista Road, canopy structure at Clarke Quay, roofing shelters for HDB's multi-storey carparks, SOITEC - FAB 3 manufacturing plant, SMAG III chemical plants at Jurong Island and pharmaceutical plants for Schering Plough Ltd, Lonza and Genentech.