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On behalf of the board, I am pleased to present the Annual Report and Audited Accounts of Poh Tiong Choon Logsitics Limited (the Company) and its subsidiaries (the Group) for the financial year ended 31 December 2010.

2010 was a challenging year for most companies in the logistics industry. The company’s results did not surpass last year’s established record-breaking numbers. The revenue and profit level of the Group saw marginal decline. The total consolidated operating revenues for the year under review was $98.7 million, a decline of 13% from $113.9 million from 2009. The Group’s profit before tax dropped 30% to $121.million from $17.3million in 2010. Earnings per share consequently dropped from 6.66 cents to 4.71 cents, a decrease of 29% over the previous year. The goal of maintaining an optional capital structure in order to maximize shareholder value, remains the priority of the Company. Cash generated by operating activities was utilized for the repayment of bank borrowings and lease liabilities, bringing net debt down by $4.8 million in 2010 from $41.4 million in 2009 to $36.6 million in 2010. The Transportation & Bulk Cargo Division constituted to the main source of the overall decline in revenue, affected by the fall in volume of the bulk cargo operation. On a positive note, the Warehousing and Trading segments of the Group fared better and reported marked improvements with increase in revenue of $2.3 million and $0.8 million respectively as compared to 2009. There were changes to the Board in 2010. In August, Mr Poh Kay Ping stepped down as Deputy Chief Executive Officer of the Company to pursue his personal business interests. However, he remains on the Board as Non-Executive Director of the Company, and will not be responsible or be involved in the day-to-day management of the Company.

The Transportation & Bulk Cargo Division saw a decline in revenue by 21% from $93.4 to $73.7 million in 2010. This decline was due to the completion of a project in the Bulk Cargo department, which took effect towards the end of 2009 and continued into 2010. At the Warehousing Division, which encompasses drumming operations, revenue increased significantly by 21% from 2009 to $13.1 million in 2010. Despite the increase in revenue, the Division faced competitive pressures due to higher operating and manpower costs. The Division turned in a reduced operating profit from $3.2 to $2.7 million, down by 15.6% in 2010.

The Trading Division achieved a revenue growth of 8.1% or $10.6 million in 2010 as compared to the previous year, generating a profit of $0.6 million. The growth in profit includes proceeds from the disposal of a business unit within the division. The Leasing Division reported revenue of $4.3 million in 2010 compared to $3.2 million in 2009. The increase in revenue of $1 million was due to a change in the accounting reatment for the recognition of revenue. Barring the difference brought about by the change in accounting treatment, the Leasing Division continues to generate a steady and consistent flow of profit for the Group.

The Board of Directors recommended a final dividend of 2.00 cents per share for the financial year ended 31 December 2010. Together with the interim dividend of 0.75 cents per share, total dividend for the financial year 2010 will be 2.75 cents, which is 0.75 cents lower compared to the 2009 financial year. The final dividend will be paid once it is approved by the shareholders of the Company at the Annual General Meeting, which will convene on 29 April 2011. Prospects

With the continuation of unpredictable trends in the operational front, the Company continues to operate in a climate of uncertainty. However, with an experienced and qualified management team at its helm, and a flexible business model, the Company is well-equipped to adapt to turbulent market conditions. In overcoming the challenges ahead, the Company continues to focus on cost containment, maximizing cash generation and minimizing the impact on margins and profitability. The Group will continue to accelerate its strategy in actively seeking out strategic alliances and synergistic join ventures to enhance its shareholder value.

Even as the Company weathered a challenging year, we reflect on the Company’s last 60 years. The commitment of our Board Members, both past and present, and the tireless efforts of our management and staff were fundamental in laying the foundation for the steady growth of the Company. On behalf of the Board, I would like to express our appreciation to our management and staff for their contributions, and shareholders, customers and suppliers for their invaluable and unwavering support. It is these collective contributions that have laid a strong foundation for the Company in the last 60 years and which would continue to fuel the Company’s growth into the future. With the company’s firm foundation and the resilience of our team, I am confident that we will be able to face and overcome the challenges amidst and increasingly competitive and difficult business climate in the coming year, bringing the Company to greater heights of achievement.

Poh Choon Ann
Chairman and Chief Executive Officer
28 March 2011