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ON BEHALF OF THE BOARD, I am pleased to present the Annual Report and Audited Accounts of Poh Tiong Choon Logistics Limited (the Company) and its subsidiaries (the Group) for the financial year ended 31 December 2007.

Group Performance
2007 was an exciting year for the Company and the Group. The group revenue increased to a historic high of $91 million from $79 million the previous year. Apart from the trading division which had a 24% dropped in revenue, generally all divisions across the Group reported an improvement in revenue.

It is especially gratifying to see that the key segment of our business, the Transportation & Bulk Cargo Division, was the main driver in boosting sales, clinching several new contracts during the year. It has now become well entrenched as a major player in bulk cargo handling operations in Singapore. The robust growth in revenue had resulted in an increase in the Group’s profit before tax from $3.3 million for year 2006 to $8.6 million for year 2007.

In February, our subsidiary, PTC Development Pte Ltd took a maiden step in the property market and successfully tendered for a URA industrial development site, part of which we subsequently sold for an encouraging gain. For the remaining plot of land, the Company entered into an agreement with a multinational company servicing the Oil & Gas industry to build and lease to them a factory building with office space.

Over the course of 2007, we also made some important strategic moves, incorporating two joint ventures, Stolt- PTC Bitubulk Pte Ltd and Wujiang Zhongxin Logistics Consortium Co., Ltd to expand and develop new markets. As economies become more globalised, strategic alliances of this nature will remain important to us as it brings complementary strengths, resulting in new opportunities for growth in markets, sales and value.

We also continued to scale up the capabilities of our global arm. Our 100% owned subsidiary in Shanghai had been awarded a Dangerous Cargo license as well as an international freight handling license during the year. This has opened up new frontiers for our subsidiary, and we look forward to doing more business in China.

Divisional Performance
Revenue from the Transportation & Bulk Cargo Division grew by 31% from $51 million in 2006 to $67 million in 2007, and operating profit increased by close to 4 times from $1.1 million to $5.3 million. This is due to an increase in sales volume coupled with a marked improvement in profit margins.

‘Even as we tackled the challenges ahead of us, 2007 has been a particularly rewarding year’

The Warehousing Division, which includes drumming operations, recorded a constant growth in revenue, rising by 4% from S$7.8 million in 2006 to $8.1 million in 2007. However, with higher operating costs, the operating profit increased by only 2% from $1.88 million to $1.92 million.

The Trading Division revenue decreased by 24% to $14 million and this was generally attributed to the scaling down of the grocery distribution business. This has resulted in an operating loss of $0.24 million compared to an operating profit of $0.16 million in 2006.

Revenue from the Leasing Division comprises income from the lease of our land to the ISO tank cleaning and repair facility operated by Stolt-Nielsen S.A. Group, the largest tank terminals operator in the world. The revenue and operating profit for this Division is consistent at $0.6 million and $0.3 million respectively.

The Terminal Management Division represented by our 50% joint venture in Hai Poh Terminals Pte Ltd contributed a pre-tax profit of $0.1 million.

Dividend
The Board of Directors has recommended a final dividend of 1.25 cents per share for the financial year ended 31 December 2007. Together with the interim dividend and special dividend of 1.5 cents per share less tax paid in September 2007, the total dividends for the financial year amount to 2.75 cents per ordinary share, as compared to 1.25 cents in 2006. The final dividend will be paid after approval is given by shareholders at the Annual General Meeting.

Prospects
With the record growth in revenue and net profits, the Group has made a good start to the new financial year. The Group’s core business is expected to continue to operate in a highly competitive environment and results will be impacted by the rising oil prices and higher operating costs. The Group intends to maintain its competitive strength through the strict control of cost increases and the constant search for strategic alliances and synergistic joint ventures to enhance shareholder value.

In Appreciation
For year 2007 I am pleased to note that the management team had worked hard to turn in strong results in the face of difficult operating conditions. On behalf of the Board, I wish to thank my fellow Directors and staff for their contribution, commitment and dedication in their endeavour to deliver quality services. I would also like to thank our business partners for their support and co-operation over the past year, and also our customers for their patronage and for putting their full trust in us. We look forward to continued success in 2008 and beyond.

Poh Choon Ann
Chairman and Chief Executive Officer
27 March 2008