Founder & Executive Chairman’s Message Print E-mail


Our Group began Financial Year (“FY”) 2019 with a severe handicap as the result of the unrelenting US-China trade war which inflicted a heavy toll to most of the Group’skey customers resulting in significant collateral damages to the Group’s businesses and financial results throughout the first-half of the year. However, much brighter business prospects quickly manifested themselves throughout the second half of FY2019 as pent-up demands in the first-half started to overtake supply thus triggering the long-awaited business recovery for the Group in the second half of FY2019.

Our Group under the most outstanding leadership and unmatchable business acumen of our CEO (Dato’ Heng Huck Lee) with strong partnership from our Vice President (“VP”) of Business and Operations, dedicated their heartsand-souls into role modelling, leading, guiding, grooming and motivating our entire workforce through the yearlong-7x24-weeks to achieve miraculous breakthroughs and accomplishments in the midst of extreme swings in demands and challenges.

As a result of Globetronics successfully developing and ramping new sensors that were designed-in by our end customer as standard features in our customer’s newsmart-phone and wireless earphones, we continue our success as a key supplier and co-development business partner to our world-renowned customer. We have also been delivering total customer satisfaction in quality and delivery despite the volatile product loadings as well as supply chain disruptions arising from the trade war. Excellent recognition needs to be paid to our Group’s solid and committed teams which have been proactively and creatively converting, modifying and requalifying many of our invested tools to cater for all product-mix changes in our production schedules, thus helping to bring our Group’s FY2019 new capital expenditure (“CAPEX”) to a minimum level of approximately RM12 million and yet in full support of all FY2019’s manufacturing/operational needs.

Our Group closed FY2019 with revenue of RM216 million and a net profit of RM44.7 million, which represented a 34% and 36% drop respectively over FY2018 numbers. In appreciation of our shareholders’ loyal support, our Group made three interim-dividend pay-outs totalling RM50.2 million to shareholders for FY2019 which translates into≈112% of our Group’s net profit of RM44.7 million. Yearend cash-flow position of the Group remained healthy at RM146 million after having repaid USD5 million (RM21 million) of our Group’s USD loan for which the final instalment of USD1 million was repaid by January 2020.

In the business sustainability and Environment, Social and Governance (“ESG”) front, we pride ourselves as being the pioneer company in Penang’s Free Industrial Zone 4 to have installed solar panels fully on top of our buildings in support of our Group’s green initiative drives. We also formed strong partnership with Penang’s Science, Technology, Engineering and Mathematics (“STEM”) Organization by being the main sponsor and partner to them in both the technical and financial arena in its annual events. Our senior management team especially our CEO and VP have also been outstanding promoters and participants serving as panel speakers in pioneering our country’s Industry 4.0 initiatives. On the investor relations front, we have partnered well in connecting with > 60 regional and Malaysian investors, leading to improved investors’ interest in Gtronic counter with market capitalization (FY2019) standing at approximately RM1.6 billion.

In the midst of various new product start-ups and production ramps, our operations teams have continuously and successfully developed and pursued new co-developmental and diversification businesses including the third-generation light sensors, bio/environment sensors, 5G telecommunication module and etc. We are thus optimistic with the encouraging foundation laid for FY2019 and beyond.

Without any shadow of a doubt, our Group absolutely owe our FY2019’s business successes and strong foundation set for FY2020 to our outstanding CEO Dato’ Heng and our VP of Business and Operations in leading our entire workforce towards delivering these major accomplishments!!

It is also imperative for me to convey our heartfelt gratitude and sincerest appreciation to all our highly respected Board members for their meticulous guidance, timely support and invaluable motivation provided to our management team through all these past years. Last but not least, on behalf of Globetronics Technology Bhd. and group of companies, I would like to thank each and everyone of our shareholders and stakeholders for your unfailing encouragement and support over the past year and many more years to come.

Thank you all once again!!


Through the meticulous guidance and motivation from our CEO and VP of Business and Operations, our Group’s fully committed technical and operations teams worked creatively and dedicatedly in converting, modifying and requalifying many of our invested tools (equipment) to cater for all product-mix changes in our production schedules, thus helping to bring our Group’s FY2019 new CAPEX to a minimum level of approximately RM12 million and yet in full support of all FY2019’s manufacturing/operational needs.

Such outstanding contributions facilitated in enabling our Group to deliver another set of handsome dividend-payments totaling RM50.2 million (representing 112% payout over net profit) to our loyal shareholders. Notwithstanding the abovementioned RM62.2 million in cash outflow from CAPEX and dividend payouts for the year, our group still managed to close FY2019 with healthy cash and bank balances of RM146 million.

Details of dividend payments are as follows:

  1. Year 2018’s third interim and special dividend of 3 sen per share amounting to RM20.07 million on 26 March 2019;
  2. Year 2019’s first interim and special dividend of 2 sen per share amounting to RM13.38 million on 2 July 2019; and
  3. Year 2019’s second interim and special dividend of 2.5 sen per share amounting to RM16.74 million on 4 December 2019.



On the ESG initiatives, our Group continued to work on modelling our applications after the best of global standards especially along the key areas of environment protection, conservation of natural resources, Corporate Social Responsibilities (“CSR”), etc., all of which are absolutely essential in responsibly protect our earth and natural resources.

By the same token and in line with our business sustainability drive, our Group held firm to our unshakable and uncompromisable mission of making Globetronics a “workplace of choice” for all our employees and visiting personnel through the strict enforcement of our Group’s internationally benchmarked Environmental, Health and Safety (“EHS”) Committee with reassuring and positive results to show.



As we exited FY2019 after scoring a reasonably healthy second-half recovery from the relentless US-China trade-war, the business prospects and outlook for FY2020 continued to look healthy when suddenly, coronavirus outbreak invaded China as an endemic which quickly spread to become an epidemic and then to global pandemic within a couple of months since the start of FY2020. At this time of writing (early March 2020) our world is under a near-complete lockdown in order to control, mitigate and prevent the spread of this new virus known as coronavirus or Covid-19 which has resulted in unprecedented business interruptions globally. Within the technology industry in which we operate in, the supply chain has also been severely impacted with no end in sight at this moment. Given this unfortunate backdrop, it would be a challenge to predict the exact time when the global businesses and the supply chain will return to normal.

In so far as our technology industry is concerned, as the world gets more converged through the impending roll out of 5G, we see more and more devices would be connected via what is commonly known as Internet-of-Things (“IoT”) to make life a lot more convenient for the consumers. The way we see it, Globetronics would have a key role to play in this process because as a manufacturer of miniaturize sensors, we anticipate that the ever-increasing applications that are being put into smart devices would continue to drive more sensors per device content going forward.


IoT and web-connected devices have been around for decades. By the end of 2018 there were around 22 billion internetconnected devices worldwide according to data from Strategy Analytic. Today’s mobile devices are each packed with nearly 14 sensors that produce raw data on motion, location and the environment around us. This is made possible by the use of Micro-Electromechanical Systems (“MEMS”). Their number is set to explode in the following years as internet consumption rises and new gadgets and machineries hit the market. IoT will also be integral to civil and industrial infrastructure. It includes devices in every aspect of life like consumer products, fleet and logistics, connected markets, connectivity, etc. Simply put, we cannot evade the technological revolution as connectivity brings far too many benefits for us to neglect. Therefore, it will soon become something as natural as electricity or tap water to us. In other words our future is totally connected!!

As for our Group’s own business prospects and outlook - while we continue to fully focus on launching our new generation sensors (light, gesture, motion) for FY2020 which are to be incorporated into the latest smart devices to be launched for mass production in mid-2020, our New-Product-Introduction (“NPI”) teams have also been working exemplarily hard and doing an outstanding job in successfully co-developing new products and technologies which are expected to fill our manufacturing pipelines in the near future. Additionally, our NPI teams have also been working in close collaboration with potential customers in the arena of autonomous driving, power chips and healthcare/medical spaces etc, all of which should bring more business opportunities to our Group in FY2020 and beyond.

Now that the Phase-1 trade-deal between the US and China has come to fruition, it should remove some of the uncertainties that businesses have been facing and should lead to increased investment and better flow of goods and services going forward. Riding on China’s needs to relocate some of their manufacturing functions offshore to South-East-Asia region to mitigate the 15% tariffs on about USD112 billion of Chinese imports, we anticipate that the spill-over effects of new companies relocating to Asia/Malaysia/Penang will benefit our Group through new business partnerships with these entities.

In conclusion, barring all the unknown impacts caused by the Covid-19 outbreak and the disruptions it may bring to the supply chain for the global technology industry, we are cautiously optimistic that FY2020 would be a better year for our Group based on the current available customers' information and forecast made available to us.

Update on COVID-19

The Covid-19 situation has changed tremendously since the Founder and Executive Chairman's message was written in early March 2020. Since then we have seen the rate of infection spiralling upwards drastically and threatening the orderly functioning of our society with "lockdowns", "stay at home" or "social distancing" implemented globally. These approach have resulted in the collapse of economic activities globally and we have seen various coordinated governmental action with aggressive fiscal and monetary policies to counter this pandemic.

Likewise in Malaysia, our Malaysian government implemented the Movement Control Order (“MCO”) since 18th March and this has impacted the Group’s operations. The Group has taken a number of measures to minimize the impact of COVID-19 on the business by obtaining approval to run certain critical operations on skeletal crew with supporting staff working from home supporting the operations. In terms of employees’ health and safety, the Group ensures that the working crew who consented to support the critical operations strictly comply with the MCO and Health Ministry preventive measures and guidelines implemented by the Group such as regular use of hand sanitizer provided, temperature check, wearing of face mask and social distancing procedures.

During these challenging times, the Group remains committed to our customers in terms of high-quality products and on time delivery. Despite the uncertain outlook for Year 2020, the Group believes that with our operational efficiencies and financial position, we are well positioned to navigate through these challenging times and remain resilient.