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I am pleased to welcome you to the Top Glove website. This is an exciting time for our company and I hope this portal provides our multiple stakeholders with the opportunity to discover more about us and what we stand for. We also aim to ensure that information on our products, our financial performance and career opportunities with us is readily accessible.

A lot has changed since 1991, when we started the business as a local enterprise with 1 factory and 1 production line. Today, we have attained great success on a global level, emerging as the world’s largest manufacturer of gloves with 33 factories, 550 production lines and a production capacity of 51.9 billion pieces of gloves. We are also the preferred employer to a diverse workforce of 12,000.

There is no secret behind these achievements. What we have attained today has been founded on hard work and a focused pursuit of our Business Direction to produce consistently high-quality gloves at efficient low cost, which will continue to drive our business well into the future.

Indeed, we have come a long way from our modest beginnings but our growth trajectory is far from over. Top Glove is still a young dynamic company, and I believe that we can do even more, and do it better. Keeping the future in view, we are targeting to capture 30% of the world market by 2020. We are also keenly on the lookout for M&A opportunities and joint ventures, both in the glove business and other synergistic businesses as well.

An Excellent Start to FY2018

I am pleased to inform that we have commenced our new financial year on a solid note.

For 1QFY18, we achieved our highest-ever quarterly Sales Revenue of RM938.1 million, which represented an increase of 19.4% over 1QFY17 and 4% over 4QFY17. We also delivered Profit Before Tax of RM122 million, an improvement of 35.9% and 23.1% compared with 1QFY17 and 4QFY17 respectively. Our Profit After Tax of RM105.9 million, rose 43.9% year-on-year and 12.5% quarter-on-quarter. Meanwhile, we saw healthy growth in Sales Volume (Quantity Sold) of 17% against 1QFY17 and 8% against 4QFY17. Nitrile glove sales grew the most compared with 1QFY17 and 4QFY17.

It is not easy to do well consistently amidst an increasingly challenging business environment. Our commendable performance followed strong demand growth, which stemmed from developed as well as emerging markets, where glove demand is rapidly on the rise. Further contributing to demand was the disruption in vinyl glove supply following China’s strict enforcement against polluting industries. Increased nitrile gloves sales which command higher selling prices, also boosted our Sales Revenue. Internally, new capacity coming onstream, as well as continuous improvement initiatives in terms of automation, better production lines and cost-saving also contributed positively to our very strong numbers.

Top Glove will continue to expand its operations steadily. Yearly, we will continue to build 1 to 2 factories. In the pipeline is the construction of 2 new manufacturing facilities: Factory 31 (operational by May 2018) and Factory 32 (operational by December 2018). Upon completion, this will boost the Group’s total number of production lines by an additional 78 lines and production capacity by 7.8 billion gloves per annum. By December 2018, Top Glove is projected to have 31 glove factories, 628 production lines and a production capacity of 59.7 billion gloves per annum. Preparations for Top Glove's condom manufacturing facility have also started, with operations expected to commenced by June 2018. In tandem, we will also continue to enhance our product quality and operational efficiency.

On 24 November 2017, we also entered into a term sheet to negotiate definitive agreements to acquire Aspion Sdn Bhd, upon completion of which Top Glove will emerge the world’s largest manufacturer of surgical gloves, in addition to being the world’s largest manufacturer of rubber gloves. Towards expanding more expeditiously and efficiently, Top Glove will also continue to explore mergers and acquisitions, as well as new set-ups in synergistic industries.

Notwithstanding our capital outlays, the Group's financial position remained healthy with a positive net cash position of RM80 million as at 30 November 2017.

I am proud to note that Top Glove also garnered the Merit Award for Most Improved Corporate Governance Disclosure and Industry Excellence Award (Manufacturing) at the MSWG-Award Corporate Governance Recognition 2017 held on 6 December 2017. In addition, Top Glove ranked the 5th most popular employer in Malaysia’s 100 Leading Graduate Employers 2017 by GTI Media. We were also the Winner in theHealthiest Employees category in the AIA Vitality 2017 awards and received the Certificate of Excellence at the Human Resource Development Awards 2017 by HRDF Malaysia. On 3 November 2017, Top Glove was the first private company in Malaysia to obtain the ISO 37001:2016 Anti Bribery Management System certification.

We are happy to have performed well in 1QFY18, but this is just the start for Top Glove. We have more ambitious goals ahead of us which include increasing our global market share for rubber gloves to 30% by 2020 and becoming a Fortune Global 500 company by 2040. We will keep working even harder, smarter and faster to ensure we deliver on these targets and continue performing well in the coming quarters.

TOP GLOVE, TOP QUALITY, TOP EFFICIENCY

GOOD HEALTH, SAFETY FIRST & BE HONEST

Tan Sri Dr Lim Wee Chai
December 2017