Managing Director & Chief Executive Officer's Message 2023

Dear Shareholders,

I am pleased to present the annual report for the financial year ended 31 March 2023 (“FY2023”). Despite the global easing of COVID-19 measures, the operating environment has presented ongoing challenges for our Group. Rising operating costs, disruptions in the supply chain, increased expenses for energy and food due to the Russia-Ukraine conflict, manpower constraints, and rising interest rates have all contributed to these challenges.

However, despite these challenges, our Group remains committed in pursuing our core strategies and plans. Our primary focus continues to be on achieving organic growth by advancing up the value chain. Furthermore, our strategic diversification across three distinct business segments positions us favorably to seize opportunities and manage risks while ensuring resilience. This approach enables us to adapt to evolving market dynamics and capitalize on opportunities.

Moreover, our strong presence in key markets provides us with a competitive advantage in harnessing opportunities arising from the global shift in foreign direct investment (FDI). As geopolitical and trade conflicts reshape the global landscape, industries and companies are reassessing their strategies and manufacturing locations. There is a notable shift from large-scale, single-location “just-in-time” inventory management to adopting multiple transnational country sites with a “just-in-case” inventory management approach. Leveraging our market presence and expertise, our Group is well-positioned to capitalize on this clear trend and capturing market share by catering to the evolving needs of businesses seeking robust and flexible supply chains.

Financial Performance 

The financial results for FY2023 delivered a consistent performance, with revenue and gross profit closely matching the previous year, reaching S$164 million and S$29 million, respectively. Notwithstanding this net profit before tax experienced a decline of 38% to S$4 million due to the operating challenges faced by the Group.

In the Specialist Relocation segment, there was a contraction in overall revenue to S$59 million from S$65 million in the previous year. This decline was primarily attributed to project disruptions caused by the policy shift in response to COVID-19 in the People’s Republic of China (PRC). However, the segment received partial support from the re-opening of regional economies in the countries where the Group operates. As these countries transitioned into the endemic stage and implemented measures to ease COVID-19 restrictions throughout the year, it is expected to contribute to the recovery of revenue in the segment.

The Group’s Third Party Logistics (3PL) segment experienced a revenue contraction to S$57 million from S$65 million a year ago, primarily due to challenges arising from the PRC’s sudden policy reversal regarding COVID-19. This policy shift significantly impacted crossborder transportation (“CBT”) trucking volume, leading to severe congestion at the borders with the PRC. As a result, some customers redirected their business volume back to the traditional air and sea freight modes. This tactical shift by customer had impacted the revenue of the Group’s operating subsidiaries in Malaysia, Thailand, and the PRC. We are cautiously optimistic that customers, in time, may shift some of these business volumes back to CBT mode.

On the other hand, the Technical & Engineering (T&E) segment exhibited strong revenue performance of S$48 million as compared to last year of S$35 million. This was driven by the success of solar panel installation projects and significant revenue growth in component and parts manufacturing.

Cash and cash equivalents increased to S$18 million as at 31 March 2023 from S$16 million as at 31 March 2022.

Looking Ahead

Looking ahead, the macroeconomic landscape continues to present significant challenges, particularly in light of widespread layoffs, particularly in the semiconductor sectors, and a global deceleration in growth. These factors contribute to an environment of economic uncertainty and heighten the complexities faced by businesses worldwide.

One notable concern is the persistence of elevated global inflation levels. Despite the United States implementing a series of interest rate hikes at an unprecedented pace, inflationary pressures remain high.

Navigating these macroeconomic challenges requires a proactive and cautious approach. The Group will remain vigilant in monitoring market conditions, analyzing potential risks, and making informed decisions. Adjusting strategies to respond to evolving economic landscape to defend our market share and capture new ones, even in a global slowdown, is the Groups’ goal.

Specialist Relocation

In the Specialist Relocation segment, the semiconductor OEM sector is projected to be resilient due to ongoing shifts in FDI to the regions in which the Group has a presence in response to geopolitical tensions. This is expected to continue benefiting the segment, as more OEMs diversify their manufacturing base to build supply chain resilience. Additionally, the transition to the latest OLED technology in the Display Panel sector in the PRC is poised to gain momentum. The OLED technology transition should refresh the Display Panel sector equipment replacement cycle for existing TFT LCD plants and drive demands both for obsolete and new equipment relocation services. This segment aims to capture significant share in this refreshment cycle in the year ahead.

Overall, the Specialist Relocation segment is wellpositioned to benefit from the resilience of the OEM sector and the momentum of the OLED technology transition in the Display Panel sector. By leveraging these favourable market trends, the segment can anticipate a positive revenue outlook and seize opportunities for further expansion in market share.


In the 3PL segment, the demand for warehouse services has experienced exceptional strength in the past year. However, there is a possibility of a potential slowdown in demand in the next 12 months, aligning with the broader deceleration in the global economy.

Nevertheless, any temporary deceleration in the high growth trajectory of the 3PL segment is expected to be short-lived due to geopolitical tensions. Unless there is a severe global economic slowdown, customers are likely to revert to the preferred cross-border transportation (CBT) mode from air and sea freight. This shift back to CBT is anticipated to drive resurgence in demand for the segment including warehouse services.

Moreover, the 3PL segment’s strategy to railway transportation, to expand existing intermodal services, has been seeing growing demand. This service is expected to contribute to revenue growth in the coming quarters and add to the segment’s resiliency. By leveraging railway transportation, the 3PL segment can offer customers a reliable and efficient alternative, further expanding its service portfolio and capturing additional revenue opportunities.

Despite the potential short-term challenges, the 3PL segment remains optimistic about its long-term prospects. By closely monitoring the global economic landscape and adjusting strategies accordingly, the segment aims to navigate any headwinds and capitalize on new opportunities in the evolving logistics market identified as an essential & critical service ever since the onset of the pandemic.


With the expansion of the T&E segment’s services to a broader range of customers, the segment is wellpositioned to increase its market share in the solar panel installation space, targeting both the Housing & Development Board (“HDB”) and commercial sectors. By leveraging our expertise, experience and critical mass in solar panel installations, we aim to capture a larger share of this expanding market in the energy transition to sustainable energy sources. As we achieve greater scale in our operations, our continued focus will be on improving margins and enhancing the bottom line.

In addition to solar panel installations, the T&E segment will continue to prioritize emerging core technologies such as Internet of Things (“IoT”), MedTech, 5G, and the automotive sectors in components and parts manufacturing. By aligning our business focus in these high-growth areas, we aim to leverage the increasing demand for innovative solutions and technologies. This strategic focus allows us to tap into new revenue streams and position ourselves as a key player in these industries.

Looking ahead, the Group’s T&E segment is poised to capitalize on market opportunities in solar panel installations and emerging technology sectors that enable decarbonisation goals of regional economies. By expanding our market share, focusing on key technologies, and implementing strategies to enhance profitability, we are well-positioned for continued success and growth in the T&E segment.

In conclusion, the Group remains focused on adapting to market dynamics, capitalizing on opportunities, and managing risks to ensure continued success and growth across its three business segments.


On behalf of the Group, I would like to thank our customers, business partners and shareholders for their steadfast support. I would also like to thank my fellow board directors, management staff and all employees for their efforts in making Chasen the service provider for many companies and industries.


Managing Director & Chief Executive Officer