Our Business
We are principally engaged in the production, sale and distribution of specialised cleanroom products for use in highly controlled and critical environments. We believe that we are one of the leading manufacturers of cleanroom gloves for the HDD and semiconductor sectors within the electronics industry in Asia.
We manufacture mainly nitrile and natural rubber gloves primarily for use in a Class 10 and Class 100 cleanroom environment. We also manufacture other cleanroom consumable products comprising cleanroom packaging materials and finger cots.
In addition, we source and market other cleanroom consumable products such as face masks, face pouches, hoods, caps, jumpsuits, shoe covers, boots, critical task wipes and swabs.
For the past three financial years ended 31 December 2003, 2004 and 2005, the sale of cleanroom gloves accounted for approximately 92.2%, 91.6% and 91.2% of our revenue respectively. The sale of other cleanroom consumable products accounted for in aggregate approximately 7.8%, 8.4% and 8.8% of our revenue respectively for the relevant financial years. For FP2006, the sales of cleanroom gloves and other cleanroom consumable products accounted for approximately 92.1% and 7.9% of our revenue respectively.
Our products which are marketed under our "RS Riverstone Resources" brand name are widely used in high-technology manufacturing industries such as the HDD and semiconductor sectors within the electronics industry where certain manufacturing and assembly processes are required to be carried out in a highly controlled dust-free and electrostatic-free critical environment. Our cleanroom gloves and consumable products are designed to reduce contamination to the cleanroom environment caused by particles and other impurities. Cleanroom nitrile gloves are also widely used in the semiconductor industry to dissipate electrostatic charges generated during the production of electronic components.
Our products are exported to Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, the PRC, Hong Kong, Japan, Korea, Taiwan, India and other countries such as Mexico, the US, Northern Ireland and Germany. To support our overseas operations, we have a network of international sales offices in Singapore, Malaysia, Thailand, the Philippines, the PRC and the US.
We have an established track record as a reliable cleanroom glove manufacturer to major multinational companies. Our major customers include SAE Group, Hitachi Global Storage Technologies Group, Seagate Technology Group, Western Digital Group, which are top-tier HDD manufacturers in the world. They accounted for in aggregate approximately 35.2%, 32.7%, 45.4% and 40.8% of our revenue for FY2003, FY2004, FY2005 and FP2006 respectively. Seagate Technology Group and SAE Group have been our customers since 1995, and Western Digital Group has been our customer since 1996.
We currently operate manufacturing facilities in Malaysia, Thailand and the PRC. Our cleanroom products are manufactured in our integrated manufacturing facilities in Malaysia and Thailand which undertake the full production of these products from the sourcing of raw materials to the preparation and delivery of these products. To better support our customers in the PRC, our facility in Wuxi, PRC provides chlorination, cleanroom laundry and packaging for our cleanroom gloves prior to these products being delivered to our customers in the PRC. Our subsidiary in Singapore primarily undertakes the marketing of our cleanroom products.
As at the Latest Practicable Date, we have nine dipping lines with an annual production capacity of approximately 601 million gloves. In addition, two new dipping lines in Malaysia are expected to be ready towards the end of 2006. We operate five finger cot lines at our Malaysian facility with an annual production capacity of approximately 475 million finger cots.We also possess the necessary machinery and equipment to produce approximately 876 tonnes of cleanroom packaging materials annually at our Malaysian facility. For FY2003, FY2004, FY2005 and FP2006, our gloves dipping lines had utilisation rates of 76.5%, 74.4%, 85.4% and 86.0% respectively, while our finger cots facilities had utilisation rates of 64.5%, 74.4%, 76.4% and 73.9% respectively. Utilisation rates for our cleanroom packaging materials were 80.8%, 68.2%, 86.5% and 63.5% for FY2003, FY2004, FY2005 and FP2006 respectively.
To better support our customers, we have established a customer service department to provide after-sales services to our customers as well as to obtain feedback from them.
* FY : Financial year ended 31st December
FP : Financial period for 8 months ended 31st August