Directors Report

Consolidated Bakeries (JA) Ltd. fortified its plant and baking operations in the financial year under review, which resulted in a stronger balance sheet and a stronger company, positioning it for further growth.

The Directors hereby present to shareholders the Statement of Financial Position, Statement of Profit or Loss, and other comprehensive income for 2017. The Company made total comprehensive income of $168.9 million for the year up from $13.9 million in the prior year. It reflected mainly the revaluation on our property and plant which we continued to invest in and upgrade.

While top line and bottom-line growth ebbed during the year, the Company focused on efficiency measures cutting its administrative expenses. Earnings per share fell to negative $0.18, we think that shareholders will however take note that our net cash and equivalents position actually improved to $49.4 million from $7.7 million a year before. Also our total equity grew to $716.4 million or one-third higher than in 2016.

Despite the challenges, we continue to rollout our capital investment programmes in order to maintain a flexible bakery operating at world-class standards. We are committed to increasing the shareholder value while baking quality products.

The auditors, Bogle and Company, have signified their willingness to continue in office. Your Directors wish to thank the Management and Staff for their support and performance during the year under review.

VINCENT CHANG

Chairman On behalf of the Board, September 7, 2018