Annual Reports and Related Documents::

Mission

Statement

Our mission is to multiply profitability through

continuous technological innovation and

product and service improvements.

This will help us to fulfil our commitment to provide optimum value for our customers, business partners and shareholders.

The Group Has

Two Core Businesses

•	The design, development and manufacture •	The manufacture and distribution of piping
	of sterile and non-sterile medical devices	systems for diverse industries including
	through our wholly-owned subsidiaries,	waste and potable water systems for
	Forefront Medical Technology (Pte) Ltd,	residential homes, schools, commercial and
	Forefront Medical Investment Pte. Ltd. and	industrial buildings; underground electrical
	XentiQ (Pte.) Ltd. in Singapore; Forefront	and internal building wire piping systems;
	(Xiamen) Medical Devices Co., Ltd and	and data and signal line piping systems by
	Forefront Medical Technology (Jiangsu) Co.,	telecommunications companies, through our
	Ltd in China; and Arrow Medical Limited in	wholly-owned subsidiaries, Vicplas Holdings
	the United Kingdom.	Pte Ltd in Singapore and Rimplas Industries
		Sdn. Bhd. in Malaysia. Both subsidiaries have
	All the subsidiaries have quality certifications	quality certification of ISO9001:2015.
	of EN ISO13485:2016 and, with the exception
	of XentiQ (Pte.) Ltd, are registered under the
	United States Food and Drug Administration
	(FDA) as a "contract manufacturer for medical
	devices" and Accreditation certificate of
	foreign medical device manufacturer from
	Japan Ministry of Health, Labour and Welfare.
	Forefront Medical Investment Pte. Ltd.
	additionally has a Class A, B, C, D Medical
	Device manufacturer license registered under
	Health Science Authority (HSA) Singapore
	and Forefront Medical Technology (Jiangsu)
	Co., Ltd additionally has a Class II Medical
	Device Manufacturing License in China.

2 VICPLAS INTERNATIONAL LTD

CONTENTS

02	04	08	09
Statement by	Operational and	Board of	Senior
Chairman	Financial Review	Directors	Management
10	11	13	32
Organisation	Corporate	Corporate	Financial
Structure	Information	Governance	Statements
		Report

113 115 129

Analysis of

Notice of

Proxy Form

Shareholdings Twenty-Third

Annual General

Meeting

Statement By

Chairman

On behalf of the Board, I present the Annual Report of Vicplas International Ltd ("Vicplas" or the "Company", and together with its subsidiaries, the "Group") for the financial year ended July 31, 2021 ("FY2021").

OVERVIEW

In FY2021, the Group continued to grow both revenue and profit after tax, while navigating the challenges of Covid-19 and the uncertainties in the wider macro environment, to achieve its highest revenue and profit after tax.

Driven by strong growth in the medical devices segment and gradual recovery of the pipes and pipe fittings segment, the Group recorded an uplift in its revenue by 28.2% in FY2021 as compared to the financial year ended July 31, 2020 ("FY2020"). The medical devices segment, which contributed largely to the improvement, posted a 30.6% increase in revenue while the pipes and pipe fittings segment posted a 22.9% increase in revenue, as compared to FY2020.

Overall, the Group grew its profit after tax to S$10.4 million for FY2021, an increase of 112.5% from S$4.9 million in FY2020, again with the medical devices segment contributing significantly as discussed below.

Medical devices segment

The medical devices segment recorded strong revenue growth in FY2021, marking the fourth consecutive time that it has grown its revenue year on year. Despite the impact of the Covid-19 pandemic on the global economy, the segment continued to increase its revenue, expand its global customer base, and commercialise new projects. As a result, it achieved a 53.7% increase in segmental results to S$12.1 million in FY2021 from S$7.9 million in FY2020. Revenue for this segment also grew by 30.6% to S$80.2 million in FY2021 from S$61.4 million in FY2020.

It is heartening that the segmental results and revenue achieved by the medical devices segment in FY2021 are the highest ever. FY2021 also represents the third consecutive financial year with positive segmental results. The cumulative positive segmental results over these three years are substantially greater than the cumulative negative segmental results over the preceding five years. This transformation of the medical devices segment is testament to the Group's commitment to its vision of becoming a leading contract manufacturer in the global medical devices value chain and delivering growth over the long term.

Pipes and pipe fittings segment

In FY2021, the pipes and pipe fittings segment made a gradual recovery together with the construction industry in Singapore. Revenue increased by 22.9% to S$33.8 million in FY2021 from S$27.5 million in FY2020. Segmental results also grew by 23.2% to S$3.2 million in FY2021 from S$2.6 million in FY2020. While the segment continues to operate in a very competitive environment, which put pressure on its margins over the past few years, it improved its results as the construction industry gradually recovers.

(Note: The segmental results of both segments are before corporate expense,

interest and tax as set out on page 106-109 of this annual report.)

OUTLOOK

Medical devices segment

The medical devices segment continued to perform well in FY2021, maintaining healthy growth in both its revenue and segmental results. While its growth rate can be expected to moderate after four consecutive financial years of growth (as the base becomes bigger), the outlook for the segment remains good. Globally, the medical technology contract manufacturing industry is growing due to factors such as the ageing population in developed markets and increasing demands for better healthcare in developing markets. The segment is well positioned to capitalise on these long-term trends. Nonetheless, this optimism must be tempered by caution in the face of a macro environment of some uncertainty due to current international trading conditions, geopolitical challenges and the on-goingCovid-19 pandemic.

Looking ahead, the segment will continue enhancing the breadth and depth of its technological and manufacturing capabilities. This will take the form of targeted investments to deepen its capabilities, especially in areas like in-vitro diagnostics, medical extrusions and electro-mechanical devices. These are expected to help the segment grow its revenue streams. The segment will also broaden its global reach through capacity expansion. Plans in this area include an extension of the segment's manufacturing site in Changzhou, China and the possible establishment of a fifth manufacturing site in a location outside Asia (near USA).

02 VICPLAS INTERNATIONAL LTD

Statement By

Chairman

Pipes and pipe fittings segment

The pipes and pipe fittings segment recorded year-on- year growth in FY2021 in both revenue and segmental results as construction projects in Singapore gradually resumed. Although the construction industry in Singapore is gradually recovering from the impact of Covid-19, labour shortages and supply chain disruptions continue to cause delays in construction projects. This, coupled with increased operating costs and higher raw material prices, will continue to impact the revenue and results of the segment. Therefore the segment will continue to focus its growth on civil engineering projects and product expansion.

Group

The Group expects its revenue to continue growing into the financial year ending July 31, 2022 ("FY2022"). The Group's profit after tax in FY2022 may be impacted by increasing operating costs, disruptions in logistics/ supply chain, higher development and expansion costs as well as the reduction/cessation of Covid-19 related government subsidies.

While the Group remains cautiously optimistic for FY2022, it is keeping a vigilant watch on the challenges that may arise from the ongoing Covid-19 pandemic and uncertainties in the wider macro environment. The Group will continue to exercise prudent cost management, while developing new business opportunities and strengthening its base for future growth.

SHAREHOLDERS

In FY2020, the Group initiated voluntary disclosure of segmental breakdown in its half-year results to provide more information for our shareholders and the investment community to gain a better understanding of the Group's business and financial performance. In the same vein, we have embarked on further initiatives by commencing with voluntary provision of media release and presentation deck to supplement our FY2021 results announcement. At the forthcoming Annual General Meeting on November 24, 2021, which will again be held virtually in order to manage the risks of Covid-19 transmission, we look forward to interacting with our shareholders during the virtual question and answer session in real-time.

The Board has recommended a final dividend of S$0.0045 per ordinary share (one-tier tax exempt) in respect of FY2021 for approval by shareholders at this Annual General Meeting. This recommended dividend represents a 20% increase from the dividend paid in respect of FY2020 in recognition of the significantly higher profit after tax that the Group achieved in FY2021. With opportunities to keep growing the Group's medical devices segment, a larger portion of the Group's profits has been retained for re-investing to support such long- term growth.

Financial discipline is key to our success. This was exemplified during FY2021 when, notwithstanding the turmoil and challenging operating environment caused by the Covid-19 pandemic, we maintained sufficient financial capacity and liquidity to continue expanding our business. Our capacity to do so is due to financial resources that we have built up by constantly balancing short term rewards to our shareholders through paying dividends and re-investing for business growth in the long term interests of our shareholders. In the face of the ongoing Covid-19 pandemic and macro-economic uncertainties, it is also prudent to maintain sufficient capital within the business to meet working capital, cashflow and capital expenditure requirements.

APPRECIATION

On behalf of the Board, we thank our customers, suppliers and shareholders for their continued support and confidence in the Group. I would also like to thank our management team and employees for their dedication, commitment and can-do spirit in the past year. Above all, I wish for you and your loved ones to keep safe and well.

YEO WICO

Chairman

Annual Report 2021

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