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CNA FY2008 Revenue Rises 54.9% To

S$101.0 Million (surpassing the S$100
million mark for the first time) On Higher
Contribution From the Middle East and
Sustained Growth In China
• Notwithstanding the ongoing global financial crisis affecting the
Middle East, CNA’s FY2008 revenue from that market rose three-fold
to S$39.7million from S$13.2 million

• Maintaining strong profitability of wastewater treatment business in

China as 49.9%-held Standard Water Limited contributes S$6.6

• Lower S$6.4 million net profit attributable to shareholders mainly due

to revenue mix and higher costs in the early part of 2008 which are
expected to be moderated in 2009

• Outlook: In near-term, CNA will focus on strengthening internal

efficiencies and take advantage of the anticipated enlarged
economies of scale in 2009 to position itself for the eventual
recovery of the market.

S$ (Million) FY2008 FY2007 % Change

Revenue 101.0 65.2 54.9
Profit from operations 2.1 2.5 (16.0)
Net profit attributable to shareholders 6.4 9.0 (28.9)
Cash and cash equivalents 23.5 19.2 22.4
Basic earnings per share (S cents) 3.35 4.95 (32.3)
(on 189,784,974 (on 181,061,456
shares) shares)
Net asset value per share (S cents) 30.57 28.52 7.2

SINGAPORE – 27 February 2009 – SGX Mainboard-listed CNA Group Ltd. (“CNA” or

“the Group”), an award-winning enabler of intelligent buildings and facilities, announced
today its financial results for the full year ended 31 December 2008 (“FY2008”).


28 Kaki Bukit Crescent, Kaki Bukit Techpark 1, Singapore 416259 Tel: (65) 6842 9300 Fax: (65) 6842 9606
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In line with the Group’s overseas expansion effort in the previous years, revenue for
FY2008 rose 54.9% to S$101.0 million from S$65.2 million on increasing contributions
from the Group’s core control and automation business in the Middle East and sustained
growth in China.

Notwithstanding the ongoing global financial crisis, the Middle East accelerated its
performance to 39.4% or S$39.7 million of FY2008 revenue, up three-fold from S$13.2
million in FY2007 on the back of a higher stage of completion of the prestigious Dubai
Nad Al Sheba racecourse and other ongoing Mechanical, Electrical and Plumbing
projects in that region.

At the same time, the Group’s core business in China maintained its growth momentum
in existing and new projects to contribute 23.8% or S$24 million of FY2008 revenue.

However, for the period under review, CNA’s profit from operations declined 14.8% to
S$2.1 million from S$2.5 million a year earlier due to higher raw material and manpower
costs across all markets, in line with its expansion programme. These were higher in
earlier part of 2008 and we anticipate to benefit from improved economies of scale in

Other operating expenses rose 39.6% to S$7.7 million from S$5.5 million as the Group
retained focus on expanding its pool of skilled labour to support its growth programme in
the earlier part of FY2008. Similarly, the Group also continued to invest in development
of new markets and products in the same period and it expects to reap the benefits in
future years.

The Group’s 49.9%-held associate, Standard Water Limited (“SWL”) maintained its
strong contribution to the Group’s net profit for the year at S$6.6 million as compared to
S$6.5 million a year ago.

Significantly in FY2008, the Group sharpened its focus on cash management in view of
the global financial conditions. As at 31 December 2008, CNA operating cash flow stood
at S$6.0 million.

The Group closed FY2008 with cash and cash equivalents of S$23.5 and increased its
net asset value per share to 30.57 S cents from 28.52 S cents a year earlier.

Commenting on the Group’s results, Mr. Michael Ong, President and Chief Executive
Officer of CNA, said, “FY2008 saw our overseas expansion strategy – which we had
embarked on to diversify our revenue base – bearing fruit.”

“More significantly, our main control and automation projects are with government-linked
and very large companies, which minimise the collection risks,” added Mr Ong.

As the near-term outlook for the global economic and real estate industry continues to
remain uncertain, the Directors recognise that these emerging markets will not be
immune to the spillover effects.


28 Kaki Bukit Crescent, Kaki Bukit Techpark 1, Singapore 416259 Tel: (65) 6842 9300 Fax: (65) 6842 9606
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Mr Ong said, “While we have no control over the external environment, we can intensify
our control over internal factors like collection and payment thereby strengthening our
cash flow.”

“With intensified effort in enhancing internal efficiencies we believe that the strong
foundation that we have already put in place for our overseas expansion, will position us
advantageously when markets eventually recover,” concluded Mr Ong.

The Directors believe that the Group’s strategy is underpinned by an established

substantial operating experience, wide geographical footprint and strong local
knowledge in the markets it operates in, and an increasing track record of reference

Presently, the Group expects its ongoing projects across all markets to remain on

As at the date of this announcement, the Group’s order book across China, the Middle
East, Vietnam and Singapore is approximately S$140.0 million.

Furthermore, the Group also expects that its ongoing investments in Standard Water
Limited (“SWL”) and Xiamen Leccan Technology Co., Ltd. (‘Leccan”) will be able to
maintain healthy contribution, given the Chinese government’s strong focus in
supporting the wastewater treatment industry.

~ end of release ~
About CNA Group Ltd.

CNA Group Ltd. (“CNA”) is an award-winning specialist in the provision, design, implementation
and maintenance of advanced integrated control and automation systems and IT solutions that
enable intelligent buildings and facilities.

In late May 2006, CNA added a new dimension to its business strategy when it acquired a stake
in Beijing Herocan Environmental Engineering Tech Co. Ltd. (“Herocan”) a leading one-stop
provider of water and waste treatment solutions in China. The move which allowed the Group to
springboard into the fast-growing water and environmental sector in China is in line with CNA’s
efforts to expand into or invest in businesses with strong growth potential. CNA’s associate level
stake in Herocan is held through Standard Water Limited formerly known as China Water
Holdings Limited

Similarly, in October 2008, CNA acquired a 28%-stake in Xiamen Leccan Technology Co., Ltd.
(“Leccan”) based in Xiamen City, Fujian Province in China. Leccan specialises in the design,
construction, installation and maintenance of wastewater treatment plants for the textile, printing
and electroplating industries.

CNA’s strength is in combining its domain knowledge and expertise with its proprietary SIRIUS™
system technology to build high-level and fully integrated Intelligent Building Management
Systems (“IBMS”) and Intelligent Facility Management Systems (“IFMS”) that are able to integrate,
monitor and control a diverse range of mechanical, electrical, security and climate control
systems within a building or facility.


28 Kaki Bukit Crescent, Kaki Bukit Techpark 1, Singapore 416259 Tel: (65) 6842 9300 Fax: (65) 6842 9606
Co Reg No 199000449K
Headquartered in Singapore, CNA has a direct presence in China, Vietnam and the Middle East,
serving an impressive list of customers in Singapore, Malaysia, Myanmar, Philippines, Thailand,
India, China, Dubai, Qatar and Oman.

For more information, please visit:

Issued of behalf of the Company by:

WeR1 Consultants Pte Ltd

Ms Mona Leong
Principal Consultant
Tel: +65 6737 4844
Fax: +65 6737 4944

Ms. Reshma Jain



28 Kaki Bukit Crescent, Kaki Bukit Techpark 1, Singapore 416259 Tel: (65) 6842 9300 Fax: (65) 6842 9606
Co Reg No 199000449K