Dear Shareholders, On behalf of the Board of Directors of Yen Global Berhad ["Yen Global" or "the Group"], it is my pleasure in my first term as Executive Chairman to present the Annual Report and Accounts of the company and Yen Global for the financial year ended 31 July 2009.

INDUSTRY TRENDS AND DEVELOPMENT

The overall trading environment for the financial year 2009 was undoubtedly a difficult and challenging one with the global economic and financial crisis continuing to dampen business confidence and adversely affecting global demand and consumption patterns. In more recent months, even with hopeful signs of recovery emerging, the prevailing atmosphere is one of cautiousness.

On the local scene, there has been a gradual change in the retail structures with the growth of concept malls over the last few years where fashion and footwear boutiques are located under one roof for shoppers’ convenience. The influx of foreign high-street and high end fashion brands into the country is testimony of the discerning tastes and preferences of consumers. Thereafter the bleak and dampening atmosphere has affected demand but retailers beginning to see signs of improvement in demand.

FINANCIAL RESULTS

Notwithstanding this, I am pleased to report that the overall financial performance of the Group for the financial year ended on a positive note.

The Group achieved revenue of RM69.4 million, which is 22% higher than RM56.8 million achieved for the previous year due mainly to the acquisition of a foreign subsidiary at the end of the previous financial year. Profit before tax achieved was RM4.3 million which was much higher than the RM1.3 million achieved in the previous year due to lower operating costs and lower provision for doubtful debts.

REVIEW OF OPERATIONS

The Group’s retail business is still largely dependent on the domestic market as local sales accounted for 63% of the Group’s total revenue for the financial year ended 31 st July 2009. Nevertheless, the overseas markets have shown potential with the acceptance of our brands by the overseas consumers. Going forward, the Group will continue to expand its overseas market to reduce its dependency on the domestic market.

Twoagentsee International Ltd, a subsidiary of the company, had signed a Memorandum of Understanding on 24th April 2009 with BGT Corporation PCL ("BGT") of Thailand for BGT to market products under the brand name of "Peoples Market". Both parties are still in the process of finalizing details for a formal agreement on the cooperation.

To adapt to the difficult operating conditions due to the retail slowdown in Malaysia, the Group is pushing its more affordable GA Blue, Mustang Jeans and Edwin brands to help capture potential down-trading as consumers cut down on bigger-ticket discretionary items.

BRANDING AND CUSTOMER SERVICE

We will continue to focus our branding expenditures towards raising the awareness for our brands within the domestic and oversea market. However as part of our efforts to improve the attractiveness of our products, we have over the last two years been continually raising the quality and design of our products and this we believe has helped in building up the perception among consumers of the quality of our products.

To further drive better service at our retails, we have commenced recurring training programmes for our frontline staff which focuses primarily on service, and on developing a customer-first mindset.

FUTURE PROSPECTS

The retail sector is expected to strengthen going forward in line with the global economic recovery.
There is mounting evidence that the worst of the global economic recession is behind us. This bodes well for the domestic retail sector, especially given that Malaysians has been, by and large, spared the fallout from the global credit crisis.

Unlike in the US, our domestic households are not saddled with excessive debts or suffered wealth destruction from a property market collapse. Unemployment rate too has stabilised after the initial round of jobs layoff in 4Q2008-1Q2009. Thus, as the recovery gains traction, consumers have gradually become confident enough to spend more.

Competition in the retail industry, both at home and abroad, is expected to get more intense. In the face of such developments, we strive to continuously reinvent ourselves to stay relevant to our consumers. So far, we feel that the Sequoia Group has done a commendable job of not only just getting by but also of improving our year-on-year performances. We have done this by staying focused on the job at hand. In many instances, we have taken measures based upon an understanding of what the future would bring, and we have done this not so much by relying on history and then extrapolating on a linear path, but more by breaking new ground.

On the business side, we have made commitments to further expand our domestic and oversea network of shop in shop and departmental stores’ counters.

We are also currently in negotiations to award master licensing rights to specified parties to distribute and sell our GA Blue, People’s Market and UGP products in Thailand and in Vietnam. While the 2010 financial year may not see a great jump in top-line revenue growth, we expect better growth for 2011.

DIVIDEND

In view of the satisfactory results, the Board has recommended a first and final dividend of 3% less 25% taxation for the financial year (2008: Nil) for approval by the shareholders at the forthcoming Annual General Meeting.

APPRECIATION

I would also like to express thanks and appreciation to Mr. Kan Ah Chun who ceased being Executive Chairman on 9 th Jan 2009 for his contribution, passion and business values that have driven Yen Global to what it is today. As the new Executive Chairman of the Group and together with my brother Mr. Goh Kok Heng the Managing Director, we will endeavor to bring the Group to greater heights.

With this, I wish to thank all bankers, suppliers, customers, business associates and most important of all the management and staff of Yen Global for the dedication and professionalism that underpins everything we do and for their part in further developing the businesses of Yen Global.

I also wish to put on record my sincere thanks to all our shareholders of the company and my fellow Directors for their continued invaluable support and confidence in the Group. Yen Global looks forward to being able to create more value for all stakeholders concerned.

Goh Kok Beng
Executive Chairman
1st December 2009