Chairman's Statement

To Our Shareholders,

On behalf of the Board of Directors, I take great pleasure to present to you the Annual Report and Audited Financial statement of the Company and the Group for the financial year ended 31 May 2011 ("FY2011").

Corporate Restructuring

The current financial year under review has been an eventful year for the Group. During the financial year, the Company completed two corporate exercises which have effectively changed the business of the Group entirely.

On 11 January 2011, the Group completed the Restructuring Scheme, which included the acquisition of the logistics business from its holding company, Ancom Berhad. With that the Company is no longer classified as an affected issuer under GN3 thus ensuring the continued listing of its shares on Bursa Malaysia Securities Berhad.

Thereafter, on 31 January 2011, the Company disposed its subsidiaries which are involved in the trading and contracting of electrical engineering products. The disposals were undertaken to enable the Group to focus on its new core business in logistics business.

Review of Financial Results

Arising from the two corporate exercises above, the results of ALB Group has been prepared using the pooling of interest method in the accounting for the acquisition of the new logistics business. In applying this method, all entities within ALB Group and the newly acquired logistics business have been presented as if they had been in combination since the previous financial year. The comparatives in the previous year have therefore been restated to reflect this change.

The operating revenue of the Group increase from RM61.9 million from RM58.9 million last year. The improvement was due to higher revenue posted by the logistics business. Profit before taxation ("PBT") from the continuing operations was higher at RM16.2 million compared to RM5.5 million last year. The higher PBT was mainly attributable to the one-off gain on sale of property to Ancom Berhad amounting to RM11.0 million.

At Company level, ALB posted significant higher revenue of RM12.8 million compared with RM2.0 million last year. The higher revenue was primarily due to higher dividend income received from subsidiaries. The higher dividend income, coupled with the RM11.0 million one-off gain on sale of property to Ancom Berhad contributed to a much higher PBT for the year of RM25.0 million compared with a loss before tax of RM1.7 million last year.

Moving forward, the Group will focus to grow the newly acquired logistics business for better shareholders returns. Nevertheless, the Board is mindful of the current weak economic conditions affecting the world economies. We will continue to assess and take appropriate actions in dealing with the economic uncertainties.

Dividends

During the financial year, the Company paid an interim dividend of 2 sen (single tier) to its shareholders on 31 March 2011. The Board has proposed a final single tier dividend of 2 sen for the financial year ended 31 May 2011, subject to the approval of the Company's shareholders at the forthcoming Annual General Meeting to be held on 23 November 2011. The total dividend for the financial year would be 4 sen.

Appreciation

On behalf of the Board of Directors, I would like to take this opportunity to thank the management and staff for their dedicated service and commitment towards the Group in the past year. My heartfelt appreciation also goes to our shareholders, valued customers, bankers and authorities and business associates for their confidence and support. We look forward to thier unwavering support in the coming years.

I would also like to thank my fellow colleagues on the Board for their counsel and invaluable dedication towards the Group.

I would also like to extend a warm welcome to Mr Lim Hock Heng, who joined the Board as Executive Director on 1 March 2011. With Mr Lim's extensive experience in the logistics business, the Board hopes that he will drive the Group to achieving higher profits and thus generate better returns to the shareholders.