Business Overview

ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.6 Business Overview
PMCB was incorporated on 26 February 2002 in Malaysia under the Companies Act,
1965 as a public limited company. It is principally an investment holding company
whilst its subsidiary companies are principally involved in the manufacturing of
automated and semi-automated machine and equipment, designing and
manufacturing of precision machinery components, as well as design, assembly and
installation of computerised automation systems and equipment.
PMCB Group was founded by Chuah Choon Bin and Tan Boon Teik who have the
initiative to provide a unique solution to the manufacturing and semiconductor
industries. With their experience in the field of software development, they started off
with software development for a MNC in the early 90’s when they formed a
partnership and subsequently incorporated a private limited company with another
two partners. In 1995, Chuah Choon Bin and Tan Boon Teik left the private limited
company and incorporated PTSB with the objective of venturing into equipment and
software automation in addition to software development where both have
experience in their areas of specialisation. To the best knowledge of the Directors,
PTSB was one of the first local companies in Maiaysia to develop software vision
automation system, which utilises digital camera to acquire any object image and
convolve the digital image for processing into qualitative and quantitative information.
It can be used in applications for precision measurement, pattern recognition, surface
cosmetic inspection, optical character recognition and colour recognition. Hence, it is
widely used in the semiconductor manufacturing processes for inspection of IC leads,
IC package defects, markings on the IC. correct marking based on optical character
recognition techniques, decolouration of IC leadframe and mounting on printed circuit
board as well as checking for cosmetic casing and mark for audio industry
manufacturers.
The technology used by PMCB Group can broadly be classified under the following
categories:-
(a) Mechanical Automation Technology
Mechanical automation technology encompassing robotic design, pneumatic
mechanisation and electronic circuitry design for control purposes.
(b) Software Automation Technology
Software automation technology for automation intelligent control, fuzzy
logic. software imaging algorithm, shopfloor management system and
specialised ICT technology such as RFID, bar-cording, wireless control and
remote camera imaging.
(c) Image Processing Technology
Image processing technology for vision inspection and measurement and
robotic guidance and movements.
(d) IC Manufacturing Process Technology for the Design and
Manufacturing of Semiconductor Equipment
The knOWledge acqUired on the entire process technology used in the frontend
and back-end of the semiconductor manufacturing operations will enable
PMCB to design the appropriate machines needed to perform specific
operation for its customers.
PMCB competency in core technologies especially mechanical and software
automation technologies will enable PMCB Group to diversify its product
range into six(6) main product groups comprising semiconductor equipment,
material handling and distribution solutions, warehousing solutions. precision
fabrication, vision solutions and specialised technology solutions as well as
to expand its customer base globally.
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ICompany No. 572307-u I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
With strong software technology and skills, PTSB has been able to develop scalable
and interoperable software automation applications that require intelligent control and
monitoring features. In 1996, PTSB was invited to develop its first prototype vision
automation for a MNC, which was well received by the said MNC customer. With the
success of its first prototype vision system, PTSB was able to proliferate its business
into other MNCs.
In view of the increasing demand for an integrated one-stop soiution company and to
achieve greater synergies to PTSB’s innate strength in software technology. PTSB
started to form its mechanical division to design and fabricate automated equipment.
The continuous R&D activities to develop software and hardware application modules
led to the manufacturing of the whole production conveyor system and automation
handlers system for its customers in the computer and semiconductor industries.
With proven technological capability to meet the semiconductor industry standards
and the increasing demand for PTSB’s standard equipment including automated
vision inspection handler, automated laser marking handler and intelligent conveyor
system led to the formation of PESB in 1998. The business strategy arising from
PESB’s formation is to ensure operational and cost efficiency in managing mass
production of standard equipment. As a result of this restructuring, PTSB
concentrates in R&D for the development of new products while PESB focuses on
mass manufacturing of standard equipment and intelligent conveyor system. PESB
has been granted Pioneer Status incentive by the MITI.
PPSB was incorporated in 2000 to manufacture precision machinery components,
Which are used by PTSB and PESB in new product development and mass
production of standard equipment such as standard equipment handlers and
intelligent conveyor system. This strategic move was aimed at ensuring both
operational and cost efficiency in managing the cost of manufactured equipment by
manufacturing some of the input materials within the Group. Today. PMCB Group is
able to design and manufacture complete equipment handlers for vision inspection
process, laser marking process, testing of les and loader and unloader for material
handling. PMCB Group is also selling its standard equipment handlers and intelligent
conveyor system worldwide into major export markets such as China, Philippines,
Thailand, Singapore. Ireland, Italy, India and USA.
Presently, PMCB Group has two(2) plants. One of the plants has a built-up area of
approximately 17,500 sq ft on a leasehold land of approximately 32,754 sq It
located at No.1 & 3, Linlang Bayan Lepas 1, Taman Perindustrian Bayan Lepas.
Phase IV, 11900 Penang. The other plant is the newly constructed two(2)-storey
factory building at Plot 18 & 19, Technoplex, Medan Bayan Lepas, Taman
Perindustrian Bayan Lepas, Phase IV. 11900 Penang, with a built-up area of
approximately 96,000 sq ft on a leasehold land of approximately 175,547 sq ft.
This additional production space that came on-stream in December 2002 has
enabled PMCB Group to expand its customer and revenue base.
The construction of the new factory building will enable the Group to have additional
floor space to house new plants and machinery and to accommodate any future
expansion.
PMCB has appointed four distributors (one each in southern region of Peninsular
Malaysia, Singapore, Taiwan and China) to market and provide services to its
customers in these respective locations.
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.6.1 Principal Products and Services
The PMCB Group specialises in the production of tailor made system and automated
equipment based on the requirements of its customers. Due to the increase in
demand for certain products and equipment, PMCB also ventured into the production
of standard equipment. As such, the Group has a wide range of products from
software to equipment as listed below:-
Software products:-
• Manufacturing process monitoring and control software system;
• Vision inspection system; and
• RFID for control and monitoring.
Standard equipment-
• Automated Vision Inspection Handler;
• Automated Laser Marking Handler;
• Automated Ink Mark Handler;
• Automated Test Handler;
• Intelligent Conveyor System;
• Industrial Lifter and Transferor; and
• Industrial Workcell.
Among the abovementioned products, PMCB Group specialises in the production of
the following:-
(a) Automated Vision Inspection Handler (‘VIH”)
PMCB Group started as a software automation provider since the inception of PTSB.
The Group later embarked into the production of VIH with its own internally
developed software technology. Today, with the support of its mechanical design
team, PMCB Group designs and manufactures complete equipment handler for
vision, laser marking, test, loader and unloader. The handler provides consistent and
accurate measurement, and Inspection results.
VIH which provides accurate measurement and with high speed system, is able to
detect and sort fine defects for semiconductor components such as
missing/incorrectlincomplete character, misalignment, scratches, solder melting,
incomplete plating, pitted surface etc. The capability of VIH includes lead inspection,
mark inspection and package inspection. Lead inspection is for the inspection of IC
leads with the capability to inspect the lead length, lead spacing and lead tweeze.
Mark inspection focuses on the IC marking such as “Broken Mark”, “Wrong Mark”,
“Blur Mark” and “Double Mark”. Package inspection is to detect “Porosity”,
“Chipping”, “Cracking” and “Contamination” of the Ie body or package.
Currently, there are limited substitutes for the vision inspection system and
equipment handlers. These products have replaced processes or work
conventionally performed manually by factory workers. PMCB Group has been able
to produce high quality vision inspection handlers at significantly lower prices
compared to imported ones which has given the Group competitive advantage over
its competitors.
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ICompany No. 572307·U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
(b) Intelligent Conveyor System
The Intelligent Conveyor System developed by PMCB Group is widely used in the
computer manufacturing industry. This product is incorporated with flow chart
programming software and Smart Distribution System (“50S”) devices for intelligent
line distribution and sortation purposes. The software and devices will enable the
conveyor system to make intelligent decisions for auto routing, sorting, remote
monitoring and control of products movements on the manufacturing line. With the
incorporation of RFID technology, the intelligent conveyor system will increase
productivity, efficiency, cost effectiveness and inventory visibility throughout the
manufacturing processes.
The RFID based solution with read/write capability allows information to be stored
about a product and the production steps. It also makes the overall logistic system
more cost effective, starting from the manufacturing process to the shipping process,
which includes the preparation of packages and correct descriptive labels for the
finished products. Another unique feature of the intelligent conveyor system is the
vertical lift whereby products can be continuously delivered from low elevation
conveyor to high elevation conveyor or vice-versa. The intelligent conveyor system is
also equipped with slacker/destacker to stack products from single or double input
into a 5-level buffer rack before sending to the next manufacturing process.
The Group was the sole recipient of the “International Supplier of the Year 1999 &
2000” award from a US based MNC for excellence in world wide process technology
pertaining to the design, manufacturing and implementation of the intelligent
conveyor system.
(c) Laser and Ink Mark Handler
Laser and Ink Mark Handler is the handler designed for marking IC strip or leadframe
either with ink mark or laser mark. The handler has the mechanism to singulate the
IC leadframe one at a time so that marking can be done on the leadframe.
The system is widely used in the semiconductor industries. It is used to replace
manual marking of IC leadframes. It can provide high throughput rate of marking
process and at the same time provide consistent and accurate marking of the
leadframe.
(d) RFID System
RFID system is the system that employs Radio Frequency Communication to
exchange data between a portable memory device and a host computer. It consists
of a “Tag/Label” containing data storage, an antenna to communicate With the Tag,
and a controller to manage the communication between the antenna and the host
computer. The Tag/Label is commonly attached to a product carrier or even the
product itself, providing a remote database that travels with the product.
In its simplest form (read only), RFiD is used as a direct replacement for barcode
technology. Read accuracy is often a critical factor in choosing RFID. The
advantages it offers include high read accuracy, the ability to survive demanding
environment. and the elimination of line-of-sight requirements.
The demand of industrial environment also favours RFID as certain environment
requires data collection systems to operate while immersed in fluids, chemicals, dirt
and heat. Examples include applications where tags and antennas transfer data
while completely submerged in water, or even cases where tags pass through paint
ovens at 240·C (Degree Celsius).
As at 31 May 2003 (being the latest practicable date prior to the printing of this
Prospectus), save as disclosed in this section, the Group does not have any new
product, which will be released to the market.
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.6.2 Trademarks, Licences and Other Intellectual Property Rights
PMCB Group has a strong R&D team to develop their own in-house brand products
incorporating the latest technological content. The Group take cognisance of the
relevant laws applicable to their operating environment to protect the intellectual
properties such as Patent Right, Copyright and Industrial Safety Requirements.
Presently PMCB Group does not own any registered patent, trademark, technical
assistance agreement, franchise or other intellectual property right. However, the
Group has submitted its applications to the Registrar of Trademarks to register its
trademarks known as:-
(i) Pentamaster Vision Maestro Precision Imaging Partner;
(ii) Pentamaster Prodigy Vision Software Precision Imaging Partner;
(iii) Pentamaster Vision Central; and
(iv) “Pentamaster”.
The successful registration of the trademarks will prevent unauthorised third party
exploitation of these trademarks, which may have an adverse effect on the Group’s
business. The Group has submitted applications on these trademarks in November
2002. The Group has also affirmed the relevant statutory declarations in respect of
the copyrights of the abovementioned software products in July 2002. The
application of trademark of “Pentamaster” has also been filed with the relevant
authority in China.
4.6.3 Competitive Advantage
PMCB Group is a one-stop solution provider, providing services ranging from the
designing of the automated machines based on the requirements of its customers,
development of the required software to operate the machines, fabrication of the
component parts to the assembly of the complete automated machines.
To the best knowledge of the Directors, most of its competitors started as a
mechanicai based machine manufacturer and continue to maintain this activity as the
primary activity while software development is regarded as a supplementary activity.
The scope of machines application is thus more confined to specific needs and
industries. Most competitors do not provide a wide range of integrated solutions as
PMCB Group. They tend to focus on selected activities. for example, some of them
focus on vision development while others are skilled towards mechanical and
assembly of machines. Therefore, they generally service limited group of customers.
However, there is no assurance that there will be no competitors who will venture into
the same core business as PMCB Group in the future.
With the rapid changes and evolution in the development of new technology, the
Group always spearheads efforts to be one of the first to roll-out improved software
automation solutions based on its cutting edge software development technologies.
The strength of PMCB Group lies in its ability to develop innovative and customisable
software to run the automated machines that are designed, developed and built by
the Group. The Group emphasises on software development. which is the engine of
growth for the Group and is supplemented by mechanical related activities such as
machine control wiring and vision system set up. With over 10 years of software
design and development experience. the Group’s software and machine applications
are broadly used in various manufacturing and non·manufacturing industries.
The ievel of technology in automated products is detenmined by the advancement of
the software technology, hence software is a vital component in an automated
machine. As a dynamic and versatile integrated solution provider, PMCB Group’s
ability to design, develop and build both software and automated machine, will
continue to propel the Group to expand globally by providing solutions to the
manufacturing sector of the economy.
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP ICont’d)
4.6.4 Production Capacity and Output
The PMCB Group has manufacturing facilities, strategically located in Penang to
cater for the needs of its customers.
The production facilities of the Group are located at NO.1 & 3. Lintang Bayan Lepas
1, Taman Perindustrian Bayan Lepas. Phase IV, 11900 Penang with built-up area of
approximately 17,500 sq ft and Plot 18 & 19, Technoplex, Medan Bayan Lepas,
Taman Perindustrian Bayan Lepas, Phase IV. 11900 Penang with built-up area of
approximately 96,000 sq ft with the production capacity to concurrently manufacture
20 machines and 60 machines respectively. However, the total number of machines
that can be produced per annum will vary according to the size and complexity of
these machines.
4.6.5 Production Process
The overall production process of PMCB can be illustrated as follows: –
Project Evaluation & Destgn Fabrication & Standard
Oiscussion • Mechanical Parts/Component
Design Purchase Order
• Electrical Desig”
• Software Design
• Control Design
Wiring & Input/Output Mechanical Assembly Quality Control
Testing Inspection
,
• Vision Setup Machine Testing 1st Quality Assurance
• Software Setup • Mechanical buy-off
Testing
• Vision Testing
• Software Testing
,
Machine Delivery 21’lll Quality Assurance Final Improvement &
buy-off Overall Test Run
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
Production Process (cont’)
The production process is grouped under the following four main divisions –
(a) Mechanical Engineering
Upon receipt of a specification from a customer, the mechanical team will conduct
project evaluation and discussion to study the customer’s requiremenUspecification
and prepare project scheduling. If the proposal is accepted, design work will
commence with the mechanical team responsible for the designing of the machine.
The machine control wiring design will be delegated to the Control & Instrumentation
Division while the machine controi software design and vision software design will be
undertaken by the Software Engineering and Vision Inspection divisions respectively.
Each division will undertake the designing task concurrentiy.
Machine design drawings will dictate the machine parts and components required to
build the entire machine. Approved drawings are used for fabrication of customised
machine parts and components. The mechanical engineering team also undertakes
the procurement of standard parts and components from local and overseas
suppliers. Upon receipt of the parts and components for assembly, stringent quality
control inspection is conducted to ensure that the quality of these parts and
components meets the requirement.
Thereafter, assembly work is carried out on modular basis to complete the machine
and equipment casing.
(b) Control & Instrumentation
When the machine assembly is completed, this division will conduct machine control
wiring and inpuUoutput program testing. The testing includes checking the
functionality of the wired devices.
(c) Vision Inspection
This division is responsible for the development of the vision inspection system.
Vision system set up will begin after mechanical assembly and wiring & input/output
is completed. Vision system set-up refers to the installation of the vision inspection
system in the machine.
(d) Software Engineering
The software team is responsible for the development of automation software based
on customer’s requirement and project specification. Installation of automation
system and program and machine sequence testing will begin after the vision
inspection system set-up is completed. The machine sequence testing refers to the
test on the programming logic and synchronisation of the entire machine parts
movements.
Upon completion of the four main processes above, the fully assembled machine will
go through several testing and quality control checks. Firstly, mechanical testing,
vision testing and software testing are conducted. Thereafter, at the 1st Quality
Assurance buy-off stage, the machine will be certified for its conformity to customer’s
specification. After that, any need for final improvement to the machine will be made
and an overall performance test fun is performed to ensure proper functioning of the
machine. Prior to delivery of the machine to the customer, 2nd Quality Assurance
buy-off is conducted to certify that the machine is ready for use in the factory
manufacturing processes.
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.6.6 Sources and Availability ofRaw Materials
The main raw materials for the Group are aluminium, stainless steel, delrin (an
antistatic plastic material) and perspex (transparent plastic cover). The main
components used are mainly:-
(a) motion control components such as servo motor, stepper motor, alternate
current (“AC”) motor and power rollers;
(b) computer parts such as personal computer, monitor and digital/analogue
input output cards;
(c) camera components such as charged coupled device (“CCO”) camera, lens,
prism;
(d) pneumatics parts such as cylinder, solenoid, valves and fittings;
(e) vision components such as frame grabber; and
(f) control & electrical parts such as sensors, switches, power supply and wiring
materials.
These raw materials and components are sourced locally through local agents and
imported mainly from Singapore, Japan and USA.
The Group is not dependent on any single supplier as it obtains its raw materials from
various suppliers.
The Directors of PMCB are of the opinion that they will not face any difficulties in
obtaining these major raw materials and components.
4.6.7 Modes ofMarketing/Distribution/Sales
The Group markets its products locally as well as to other countries including China,
USA, Philippines, Ireland, Thailand, Singapore, India and Italy. The sales and
marketing activities are spearheaded by the Chief Executive Officer, supported by
strong sales and marketing team.
The Marketing and Sales Department of PMCB Group consists of Marketing Division,
Sales Division, Design, Promotion and Advertising Division, Customer Care Division
and Technical Division. The department is responsible for developing marketing
plans, conducting market research and analysis, public relations, handling worldwide
distributors, supporting the branch offices worldwide and organising promotional
events locally as well as overseas. The presence of PMCB Group in Penang
enables the Group to service its customers in the northern region of Malaysia. The
Group has also appointed distributors in the southern region of Peninsular Malaysia
to establish a presence in the central and southern regions of Malaysia.
Agentsfdistributors are also appointed overseas such as in Singapore, Taiwan and
China for PMCB Group to expand its market share overseas. In addition to
marketing activities, the distributors also provide technical and after sales support
services to the customers with the assistance from PMCB Group.
PMCB Group established a sales representative office In Shanghai, China in January
2002, with the aim to penetrate the markets in the semiconductor and manufacturing
industries in China. In addition, it also enables the Group to serve its eXisting
customers who have expanded to China.
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ICompany No. 572307·U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.6.8 Quality Control Procedures
The Group adopts a stringent internal quality assurance policy to ensure that raw
materials purchased and products manufactured and supplied to customers are of
high quality and meet the specifications and stringent requirements of its customers.
The products manufactured are under the supervision of a project manager so as to
ensure that the strict quality control procedures are adhered to throughout the
manufacturing process. Strong emphasis is placed on continuous improvement to
ensure that the products manufactured are of expected quality and conform to the
relevant specification of the customers.
In addition, the Group employs up-to-date high-end technology such as image sensor
technology to provide high speed three dimension (“3D”) scanning in the
manufacturing of high quality products. Apart from the state-of-art technology, the
Group is equipped with up-to-date range of quality control equipment and tools that
include vertical height and steel pin gauge set, calliper. hardness tester and profile
projector, amongst others. The comprehensive testing procedures, equipment and
tools will ensure high quality and reliability of equipment manufactured.
PMCB imposes slringent quality control procedures throughout the whole production
process. All fabricated materials go through quality check before being used in
downstream production processes. Interim pre-buy.off and final buy-off quality
control procedures are also carried oul respectively during the assembly process and
prior to shipment of the final products.
To further upgrade and strengthen its commitment to quality, PTSB and PESB have
taken pro-active steps to elevate its professionalism approach in the management,
design, engineering, manufacturing, logistics & materials management, human
resources and quality system management gearing towards achieving the 1509001:
2000 Quality Management System certification.
4.6.9 R& 0
The Group has a R&D team comprising experienced personnel from each of the four
main divisions, namely mechanical, vision, control and software to undertake R&D
activities. The R&D team is headed by Hong Lai Guan, an experienced Section
Manager who is assisted by a team of 12 members. Emphasis is placed on various
areas such as product development and design, troubleshooting and designing
software modules for project implementation, developing vision software, research on
new technologies and sourcing component for new designs.
In order for PMCB Group to stay ahead of its competitors and maintain its
competitiveness in the industry, understanding the current market needs and future
market trends of the manufacturing and semiconductor industries is vital. PMCB has
invested in the necessary infrastructure and facilities set-up to enhance its R&D
initiatives with the latest measuring tools and equipment, autocad design software,
high speed camera and accessories, mechanical system and components, and other
related R&D materials.
Being able to maintain close relationship with their existing customers (mainly MNCs)
has enabled PMCB Group to be at the forefront of acquiring information on new
technology or development of the industry such as the future trends and
requirements of existing and potential customers in terms of the types of products
and equipment needed.
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Conl’d)
The R&D is an on-going activity in PMCB and is driven by changes in customer
specifications and requirements and own market research on the technological
changes and outlook within the industry. PMCB is presently working on R&D
projects to enhance machine output and performance. durability of IC testing
equipment in severe temperature testing condition and upgrading of handlers to test
the latest design IC packages. The continuous R&D activities undertaken will benefit
the Group’s potential and new customers as the Group is committed to provide high
quality products.
Apart from the development of new equipment, PMCB Group also has the strength in
developing standard software modules for machine control and data automation
usage. With these standard software modules, PMCB Group will be able to cut down
the lime for all future machine development. Such standard software modules can
also be sold as a product to other manufacturer of machines and equipment, thus
contributing an additional source of income to the Group. R&D is an ongoing process
for PMCB Group. In order for the PMCB Group to stay ahead of its competitors.
development and updating of skills and technical know-how of the employees are
crucial. This is attained via regular in-house and external training programmes.
With a foresight on the impending change in the manufacturing process of the
semiconductor industries where tied-line machines or equipment (machine or
equipment which is able to perform multiple functions at a time and in a single
process) will be Introduced to revolutionise future manufacturing processes, PMCB
Group intends to undertake further R&D and embark on the production of such
equipment in the near future.
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.6.10 Key Achievements, Milestones and Awards
Over the years, the Group has received numerous awards as follows:-
Awards
International Supplier of
the Year
Partnership
Appreciation Award
Merit Award ·MSC·Asia
Pacific ICT Awards
Top Enterprise WinnerEnterprise
50 Award
Deloitle Touche
Tohmatsu Asia Pacific
Technology Fast 500
Program
– Ranked 126th position
Global Top Enterprise
Golden Rim Award
(Taiwan)
Global Corporate
Leader Golden Rim
Award (Taiwan)
Customers/Oraanisation
A well known MNC
Unisem (M) Berhad
Multimedia Development
COllJOration
Accenture and SMIDEC
Deloitle Touche Tohmatsu
Medium Business
Development Association
of China
Medium Business
Development Association
of China
Year
1999 and
2000
2000
2002
2002
2002
2003
2003
Recoanition
Excellence in world wide
process technology
Outstanding achievements
in the manufacturing of high
technological products and
quality services
Best industrial applications
and manufacturing design
for distribution information
with centralised computer
control via vision inspection
system and RFID system
Achievement as Malaysia’s
enterprising homegrown
company, which is well
positioned for the future
Achievement as one of the
fast growing technology
companies in Asia Pacific
region
Exceltence in entrepreneur
performance and business
stability
Excellence in entrepreneur
performance and business
stability
These prestigious awards are testament of PMCB Group’s commitment towards
quality and the capability to deliver world class automation equipment.
4.6.11 Interruption to PMCB Group’s Operations
There have been no major interruptions to the business of the PMCB Group for the
past 12 months preceding the date of this Prospectus.
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4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.7 Major Customers
Major customers (more than 10% of total turnover) of the Group for the financial year
ended 31 December 2002 are as follows:
Customers
Length of Percentage of Group’s
RelationshiD (Years) Turnover (‘!o)
A well known MNC (China)” 5 14.53
A well known MNC (Malaysiat 7 14.81
A well known MNC (Irelandt 2 12.39
Extreme Semiconductor Equipment 1 17.14
(HK) Limited
Unisem eM) Berhad 7 11.30
Total 70.17
PMCB was unable to obtain the written consents of/he said customers for the disclosure
of their names In this Prospectus.
The above major customers accounted for approximately 70.17% of the total turnover
of the Group for the financial year ended 31 December 2002 whilst the remaining
29.83% was for other local customers and direct export to other countries such as
China, USA, Philippines, Ireland, Thailand, Singapore, India and Italy. PMCB Group
has established business relationships with its major customers for several years and
believes that it has built up good rapport.
To broaden its customer base, the Group has intensified its overseas expansion by
selling up a sales representative office in Shanghai, China in January 2002. The
Group’s management believes its export sales are poised to improve further with the
penetration into the China market. In addition, PMCB Group will also continue to
enhance its value added services propositions, improve its service levels and
maintain its competitiveness including broadening its products range and to develop
a more diversified portfolio of customers and markets in the future, both locally and
overseas. Hence, the Board foresees that the Group will not be over dependent on
any single customer in the future.
PMCB Group is unable to ascertain its market coverage in the semiconductor and
automation industries as the said industries encompass many sub-industries.
Furthenmore, PMCB Group’s products cover a cross section of the electronic industry
ranging from semiconductor equipment to material handling and distribution systems.
Hence, there are no independent market research consultant nor is there any available
pUblished reports on this range of products collectively for the Group to benchmark
itself against. There are also no available reports or statistic on semiconductor industry
in Malaysia or capital expenditure of companies in the Malaysian manufacturing sector
for the Group to be compared with.
Based on the Semiconductor Equipment and Materials International’s Report 20012002,
USD28,065 million (equivalent to RM106,647 million) of semiconductor capital
equipment was shipped in 2001 in the global market whereas as per the infonmation
obtained from the Department of Statistics, the GDP of the Malaysian manufacturing
sector is RM102,276 million. PMCB Group’s sales for the financial year ended 31
December 2001 to the semiconductor capital equipment shipped globally and
manufacturing sector is approximately RM15.2 million and RM47.7 million respectively.
Consequentiy, based on the said information, PMCB Group’s sales represented
approximately 0.014% of semiconductor capital equipment shipped in the global
market and 0.047% of the Malaysian manufacturing sector GDP.
It should be noted that the semiconductor equipment sales as stated in the
Semiconductor Equipment and Materials International’s Report 2001-2002 covers the
compiete range of equipment used in the entire semiconductor manufacturing process
divided into front-end processes and back-end processes. Each type of equipment
manufactured is process specific. However, there is no market research on the
transacted value of equipment sold for each process. The equipment used in the
front-end process is more expensive than that of the back-end process and PMCB
Group supplies equipment for part of the back-end processes.
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4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.8 Major Suppliers
Major suppliers (more than 10% of total purchases) of the Group for the financial year
ended 31 December 2002 are as follows:
Suppliers Length of Relationship Percentage of Group’s
(Years) Purchases (‘!o)
Organic Green Sdn Bhd 6 16.17
Equipment Solution Ltd 1 23.42
TOTAL 39.59
The major raw materials and components used by the Group are mostly sourced
locally through local agents and are imported mainly from Singapore, Japan and
USA. Direct imports accounted for apprOXimately 42.80% of the total annual
purchases for the financial year ended 31 December 2002. The raw materials and
components commonly used in PMCB manufacturing process are easily available
from numerous suppliers in Malaysia and overseas. Non-standard components
especially fabricated machine parts can be manufactured in-house by PPSB.
Therefore. the Group is not dependent on any single supplier and the Directors of
PMCB are of the opinion that they will not face any difficulty in obtaining major raw
materials and components.
4.9 Approvals, Major Licences and Permits
Approvals, major licences and permits under the possession of the PMCB Group are
as follows:-
i) PTSB
No. Type of Licence Authorities Date of Date of Equity Conditions
Commencement Expiry
1 Manufacturing Licence MITI 7 June 2001 No expiry None
No. A013022 (Industrial date
Coordination Act 1975)
2 Manufacturing Kastam 6 September 5 September None
Warehouse Licence No. Diraja 2001 2003
21388 Malaysia
3 Warehouse Licence No. Kastam 6 September 5 September None
32217 Diraja 2001 2003
Malavsia
4 Trading Licence Majlis 28 December 31 December None
Perbandaran 2002 2003
Pulau
Pinang
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
ii) PESB
No. Type of LIcence Authorities Date of Date of Equity Conditions
Commencement Expiry
1 Manufacturing Licence MITI 16 November No expiry None
No. A013511 (Industrial 2001 date
Coordination Act 1975)
2 Manufacturing Kastam 6 September 5 September None
Warehouse Licence No. Diraja 2001 2003
21389 Malaysia
3 Pioneer Status MITI 1 January 2000 31 December None
2004
4 Warehouse Licence No. Kastam 6 September 5 September None
32216 Diraja 2001 2003
Malavsia
iii) PPsB
No. Type of Licence Authorities Date of Date of Equity Conditions
Commencement Expiry
1 Manufacturing Kastam 27 November 26 November None
Warehouse Licence No. Diraja 2001 2003
28251 Malaysia
2 Pioneer Status MITI 1 September 31 August None
2001 2006
3 Warehouse Licence No. Kastam 27 November 26 November None
32231 Diraja 2001 2003
Malavsia
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.10 Related Party Transactions I Conflict of Interest
4.10.1 Promotions of Any Assets Acqulredlto be Acquired within Two Years
Preceding the Date of Prospectus
Save as disclosed below, none of the Director andior substantial shareholder
of the Company and its subsidiary companies and persons connected to
them has any interest, direct or indirect, in the promotion of or in any assets
which have, within the two(2) years immediately preceding the date of this
Prospectus. been acquired or proposed to be acquired or disposed or
proposed to be disposed of or leased or proposed to be leased to the
Company or its subsidiary companies or any contract or arrangement
subsisting at the date of this Prospectus which is significant in relation to the
business of the Company and its subsidiary companies taken as a whole.
PTSB (Acaulsition of PTSBI
Director/Substantial Shareholder Nature of Inl8resl
Chuah Choon Bin
Tan Boon Teik
PNS
Zainal Abidin Bin Abas
Abdul Razak Bin Mohd Tahir
Mustaffa Kamil Bin Md. Ismail
Director and substantial shareholder of PTSB
Director and substantial shareholder of PTSB
Substantial shareholder of PTSB
Director of PTSB
Director of PTSB
Director of PTSB
PESB (ACQuisition of PESBI
Director/Substantial Shareholder Nature of Inleresl
Chuah Choon Bin Director and substantial shareholder of
PESB
Tan Boon Teik Director and substantial shareholder of
PESB
PNS Substantial shareholder of PESB
Zainal Abidin Bin Abas Director 01 PESB
Abdul Razak Bin Mohd Tahir Director 01 PESB
Mustaffa Kamil Bin Md. Ismail Director 01 PESB
PPSB (ACQuisition of PPSB)
Director/Substantial Shareholder Nature of Inleresl
Chuah Choon Bin
Tan Boon Teik
Director and substantial shareholder of
PPSB
Director and substantial shareholder of
PPSB
4.10.2 Transactions Between PMCB Group And The Directors/Substantial
Shareholders
There is no transaction between the Group and the Directors andior
substantial shareholders and persons connected to them, of the Company
and their related companies.
4.10.3 Interest in Similar Business
None of the Director and/or substantial shareholder of the Company and
persons connected to them has any interest. direct or indirect, in any business
carrying on a similar trade as the Company and its subsidiary companies.
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ICompany No. 572307-U I
4. INFORMATION ON THE PMCB GROUP (Cont’d)
4.10.4 Declaration by the Advisers
AmMerchanl Bank hereby confirms that as at the date of the this Prospectus,
there is no eXisting or potential conflict of interest in its capacity as Adviser.
Managing Underwriter and Placement Agent to PMCB Group for the Oller for
Sale.
Messrs Folks DFK & Co hereby confirms that as at the date of this
Prospectus. there is no existing or potential conliict of interest in its capacity
as Auditors and Reporting Accountants to PMCB Group for the Oller for
Sale.
Messrs Ghazi & Lim hereby confirms that as at the date of this Prospectus.
there is no existing or potential conflict of interest in its capacity as Solicitors
to PMCB Group for the Oller for Sale.
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