To Our Shareholders
Please let me express my utmost gratitude to our shareholders for supporting us.
The following are a few words of greeting on the occasion of this report on the results for the company’s 20th term of business. I would like to also express my heartfelt sympathy to all those who were affected by the Great East Japan Earthquake.
In 2011, we experienced two unprecedented natural disasters. Although the first half of the fiscal year temporarily experienced effects of the Great East Japan Earthquake, demand for digital household equipment and automotive related equipment remained strong in Asian countries. As a result, we were able to surpass last year's results for net sales and all income items. In October, however, as the impact of the earthquake was starting to abate, Thailand was struck by the severe flooding that is said to occur only once every several decades. Although our factory buildings were not directly damaged, many of our customers suffered from the floods, and some of our Company's materials were submerged. This had a major influence on sales operation in the fourth quarter, leading to a decrease in results for the fiscal year compared to the previous fiscal year.
For the fiscal year ending December 31, 2012, there are concerns that the economic slump due to the financial crisis in Europe will have an impact on the economies of China and emerging countries. Although the effect of the flooding in Thailand is predicted to linger into the first quarter, business confidence is expected to enjoy a mild recovery in the second half of the fiscal year in the electronics industry surrounding the Company, including demand related to reconstruction. With the addition to our network of the factory established in Karawang, Indonesia last year, and the new plant that commenced operation in Shanghai this year, we at SIIX are doing our utmost to improve performance as quickly as possible.
Finally, I would like to ask our shareholders' continuous support towards the future.
Chairman & CEO