Dear Yap Wai Meng, you wrote:
1. With the convergence of telecommunications and IT technology (as seen through PDA and GPS phones) does the company have plans to tap on emerging trends to distribute products or provide supporting services?
In leveraging on such converging technologies, we will continue to invest, particularly in new opportunities presented by IP and mobile broadband technology. In the last two years, we have launched innovative services such as Super Saver Mobile Call, SunPage Budget Roaming, SunPage Budget CallHome, SunPage Internet Call and most recently, SunPage i.sms.
Furthermore, in anticipation of the increased demand for feature-rich smart phones brought about by converging technologies, our subsidiary, Planet Telecoms, has increased our retail presence in Singapore and our focus on providing value-added services, including integrated fulfillment and retail management, for handset manufacturers.
2. In terms of revenue from external customers, I notice that there is significant growth in the Australian market, but quite a huge drop for Dubai and other countries. Is the drop for Dubai because of the decline in the export market? How about the drop in the aggregate for other countries?
The sales reported under Australia, Hong Kong, Dubai and other countries are from exports markets. Exports prices were more competitive in FY07 resulting in decline in export sales.
3. Is the company planning to enter into other high potential markets in developing countries, such as Vietnam and Middle East?
We are always on the lookout for new opportunities regionally and where suitable opportunities arise, TeleChoice will consider investing. Where appropriate, we will do so with partners who can add to the success of the investments, through mergers and acquisitions and other forms of alliances.
Dear Ong MH, you wrote:
I have 2 questions:
Q1. It is commendable that you have met the target on dividend payment of 2.5 cents per share for FY 2007, what is your target dividend for FY 2008?
Dividend for FY08 will be subject to the Group's earnings, cash flow, capital expenditure requirements and investments opportunities.
Q2.You mentioned that Telefortune (China) to begin contributing from 2Q 2008, whether its contribution is towards cost or profit?
We expect Telefortune (China) to contribute profits from 2Q08 onwards
Dear
Jayster, you wrote:
Q1. I understand TeleChoice acts as a distributor for mobile handsets & accessories and provides services related to that. Does Telechoice intend to move upstream and provide services like design of PCB and handset to manufacturers like Nokia to capture more margins?
For PCS Services (formerly called Distribution Services), the focus will remain on seeking higher margin opportunities such as the provision of value-added services including integrated fulfilment and retail management in Singapore and the region. We also intend, through our subsidiary, Planet Telecoms, to increase our retail presence which we believe will position us for the expected increased demand for feature-rich smart phones. Nevertheless, we do not see as a core competency, the provision of design services of PCB and handsets to principals and hence have no plans to move into this space.
Q2.The Singapore Government has dished out tax incentive for Research & Development activities in Singapore. Does TeleChoice carry out any form of R&D activities given that it is in the Telecoms industry?
We constantly evaluate new technologies and software applications that are suitable for the telecom industry. Where appropriate and necessary, we do some in-house software development to customize the technology or application to suit each country's requirements. We are aware of the Singapore Government's R&D tax incentive and we are evaluating its applicability.
Dear Serene, you wrote:
Q1. Has TeleChoice bid for licences to operate mobile networks in any countries? If not, will it consider doing so, with partners perhaps? I feel TeleChoice already has a strong foundation in the telecoms services sector and should consider bidding for Telco Licenses in emerging markets.
TeleChoice is constantly on the lookout for good opportunities to invest in the telecommunications industry, particularly in the mobile and broadband space. Where relevant, this could include the application for the appropriate operating licenses. For each opportunity, we will undertake a thorough due diligence and if the opportunity makes good business sense, TeleChoice will consider investing. Where appropriate, we will do so with partners who can add to the success of the investment.
To date, TeleChoice has not bid for a licence to operate a mobile network in any country.
Dear
Gerald How, you wrote:
Q1. I'm glad TeleChoice is giving back to society by organising an event for the Children's Cancer Foundation.
I feel it would be more appropriate for TeleChoice to match dollar for dollar donation or have a percentage of sales donation drive on World Cancer Day to increase the amount given out. Donations are tax deductible and will increase the goodwill of the company. Will TeleChoice expand its goodwill to other charities and will this be done consistently on an annual basis?
We are happy to hear that you share our philosophy of giving back to society as is within our capabilities. While we agree with you that increasing the goodwill of the company is important and can be achieved through corporate social responsibility programmes, we also have to balance this with our duty and responsibility to our shareholders to continue to deliver good returns on their investment and to maintain healthy cash balances for future growth. We do intend to continue our corporate social responsibility programmes. As for whether we will extend it to other charities, we are currently evaluating where our help is most needed and can go the furthest.
Dear Shaun, you wrote:
Q1. Good to see company maintain healthy cash flow and provide high dividend return. Would like to see the management's strategic plans to expand and grow the business and better utilization of excess cash on hand.
PCS Services will continue to focus on value-added services with an eye on improving margins on a sustainable basis. Telecommunications Services is continuing to invest in opportunities presented by IP and mobile broadband technology while actively and aggressively marketing its suite of voice and data services. Network Engineering Services will focus on steadily building its market base and adding niche products and services to its existing portfolio in order to be able to offer turnkey solutions which should further lift margins. We have always maintained a prudent cash policy in order to ensure that we have sufficient cash for operational requirements and capital investment needs to take advantage of growth opportunities and provide shareholders a healthy return on investment.
Dear Investors,
Thank you for all your questions and your interest in TeleChoice International Limited. We have come to the end of this On-Line Q&A session.
We have enjoyed the session and have learnt form your questions. We hope that through the Online Q&A, you have gained better insights to our Company and our operations.
Regards,
The Management Team
TeleChoice International Limited
