:  C H A I R M A N ' S    S T A T E M E N T

We continued to improve on the products and services offered and further consolidated our position as a leading one-stop IT solutions provider in Singapore.

The success of our positioning as a one-stop IT solutions provider, combined with our commitment to customer satisfaction and service excellence, resulted in us delivering a strong financial performance for the year ended 31 March 2005.

Thanks to our efforts to raise our profile and visibility in the market, we were able to take advantage of increased IT spending and attract new customers and win higher-value contracts.

Financial Highlights
Group revenue more than doubled to $33.7 million from $15.9 million in FY 2004. This was due to the increase in sales activities in both our Supply and Delivery and Systems Integration and Services segments. Net profit increased by 6.7% to approximately $908,000 from approximately $851,000 in FY 2004. Basic earnings per share was 1.57 cents compared with 1.54 cents in FY 2004 and net asset value per share improved to 10.96 cents from 10.68 cents.

Dividend
The Board recommends a final tax-exempt dividend of 0.2 cents per ordinary share for the year ended 31 March 2005. The total net dividend payable will amount to approximately $130,000. This proposed final dividend, if approved at the Group’s Annual General Meeting to be held on 28 July 2005, will be paid on 26 August 2005.

Business Highlights
During the year, the market outlook for replacement PCs and servers remained healthy. With the software copyright law in conjunction with the Free Trade Agreement with U.S.A. taking effect from 1 January 2005, many more companies are expected to procure software licences to ensure that they comply with this new law. We believe that our expanded team is poised to take advantage of this.

Our 100% owned subsidiary, JK Technology Pte Ltd, continued to improve on the products and services offered and further consolidated its position as a leading one-stop IT solutions provider in Singapore. In view of its satisfactory performance, the Info-Communications Development Authority of Singapore (IDA) extended JK Technology’s contract for the provision of up to 5,000 new and 5,000 refurbished PCs, under the ‘PC Reuse’ scheme and the ‘$1-a-day’ PC ownership plan, until 31 March 2005.

Magenta Consulting Pte Ltd, our new substantially owned subsidiary, began operations in March 2004 in the areas of human resource consultancy and search services, allowing us to take advantage of the increased demand for IT personnel in the industry. Human resource plays a key role in the IT industry, and we view Magenta Consulting as a strategic business to enhance our growth through the provision of human resource consulting to many of our customers and also as a complementary to the various businesses of the Group.

In April 2004, we took a 25% equity share in Pro-Datech Systems Pte Ltd, as part of our growth strategy to venture into the enterprise space. Pro-Datech’s principal activities are the provision of complete end-to-end solutions for enterprise system and storage and security. Our investment in Pro-Datech Systems allows us to reach out and offer systems integration services to enterprise customers while at the same time maintaining our strong foothold in the SME market segment. We expect our business benefit increasingly from synergies with Pro-Datech Systems.

To expand our IT services into the region, we set up a 100% owned subsidiary, JK Tech Systems (M) Sdn Bhd in December 2004 to tap the IT market in Malaysia.

Looking Ahead
In FY 2006, the Group will continue to focus on our expansion plans, and improve on the products and services offered to maintain our position as a leading one-stop IT solutions provider in Singapore: from supply and delivery to systems integration and service maintenance. Our relationship with our key IT partners is important for this growth and we intend to work closely with them.

IDA has recently announced its intention to award IT contracts of up to $1.2 billion over the next two years. We will definitely be looking for opportunities to see how we can participate in this initiative.

Careful nurturing of new and existing staff is also paramount to our growth strategy and we intend to invest further in staff training and upgrading in order to ensure that they are well equipped to service our growing customer base. Attractive and innovative remuneration packages and incentives will continually be offered in order to retain the best people -key to maintaining our long-term relationships with our customers and business partners.

The Board of Directors is confident of the Group’s long-term prospects. Barring any unforeseen circumstances, the Board expects that the Group will continue to perform satisfactorily this year.

Acknowledgements
On behalf of the Board, I would like to thank our customers, vendors, business partners, bankers and shareholders for their continuing support. I would also like to express my sincere appreciation to the management and staff for their dedicated work and commitment during the past year and our Directors for their advice and guidance, and look forward to working with them all in the coming year.

Ang Yew Jin Eugene
Managing Director