Overview

Machine Sales

Combine Will has set the stage for continued progress backed by over 30 years of value-adding partnerships since 1992 and we have further strengthened our operational capability and network to drive sustainable growth, mainly through:

  • Doubling of paper and plush toy production with third manufacturing operation in Indonesia;
  • Incorporation of four new subsidiaries in Hong Kong, Indonesia, Shenzhen and Singapore for growth and resilience;
  • Deepening of relationships with stakeholders driven by customer-driven philosophy;
  • Expansion of manufacturing output of green products, with a target of over 40% by the end of 2024;
  • Integration of DE&I approach to drive innovation and foster inclusivity.

STRENGTHENING OPERATIONAL CAPABILITY AND CAPACITY

During the year, we have further enhanced our operational capabilities with the establishment of paper and plush toy production. The establishment of our paper production line in Indonesia under Phase 1 comprises of two stages. The first commenced operations in February 2023, after 11-month setup period.

Our second stage of plush toy production in Indonesia commenced operations in September 2023, after a 9 months setup period. The completion of our Phase 1 expansion in Indonesia was facilitated through a partnership with an experienced plush toy manufacturer to ensure the smooth set-up of process and know-how transfer, with an employment of a total of approximately 1,500 employees.

We have committed to acquire approximately 130,000 square metres of additional land to double manufacturing capacity in Indonesia. Construction is underway for Phase 2, scheduled for completion by end 2024, to meet the growing demand for plush toy.

Our endeavours to strengthen our operational capability and capacity in Indonesia have proven fruitful, reaffirming our commitment to improving capabilities and delivering high-quality products to our esteemed customers.

With this latest addition, we now have five new paper production lines across Sragen, Indonesia and Heyuan, China.

EMBRACING BUSINESS RESILIENCY

We recognise that proactive customer engagement is pivotal in achieving our business objectives. Our solid relationship with core customers and customer-driven philosophy has also laid a sound foundation, enabling us to drive stable order flow during the year under review.

To enhance supply chain resilience, our Group Procurement Team, alongside our Indonesian local team, have dedicated over six months to identify suitable material suppliers within Indonesia and beyond China in 2023 and have successfully identified the required material suppliers, with a majority situated in Indonesia. Additionally, we have secured two paper suppliers in Taiwan and South Korea, and one paint supplier in Vietnam. In effort to uphold our quality control measures, these potential suppliers are required to undergo relevant compliance and qualification assessments mandated by customers, which is estimated to take approximately six to twelve months.

To support the Group's strategy of expanding into the plush toy industry, we have recently established a company named Lianmei Toys Manufacturing Company Limited ("Lianmei Toys"). This company is a joint venture between our subsidiary, Combine Will Investment Limited, and Mayuanda. It was incorporated in Hong Kong on February 21, 2023. The partnership aligns with the Group’s strategic plans and geographical diversification strategy to enter the plush toy business, adding value and enhancing operational resilience and manufacturing capabilities. This also serves as a strategic platform for the Group to execute our expansion plans. The primary function of the company in Indonesia involves the manufacturing operations of plush toy. Additionally, the establishment of PT Combine Will Investama Indonesia will engage in investment holding activities in Indonesia.

To facilitate communication and foster closer collaboration, particularly with our offices in Dongguan, we have incorporated Combine Will Neighbourhood (Shenzhen) Technology Limited on February 10, 2023 in Shenzhen, with a focus on R&D, design and engineering activities.

Furthermore, to ensure uninterrupted trade with customers, our new subsidiary in Singapore was officially established on August 11, 2023, under Combine Will (Singapore) Pte. Ltd., and will serve as another trade hub, in addition to Hong Kong. It will operate as a trading company, as well as an entity to place purchase orders with our manufacturing company in Indonesia.

In essence, the establishment of these four new subsidiaries are aimed at strengthening our operational resilience and manufacturing capabilities. By fortifying our business resilience in the uncertain macroeconomic landscape, we position ourselves to not only withstand unforeseen challenges but also to capitalise on new opportunities and drive sustainable growth.

EMBEDDING DE&I

In addition to our initiatives to improve human capital, we have incorporated DE&I into our overall business strategy to create an inclusive and equitable workplace culture as well as fostering diversity across all levels of the organisation. This encompasses three crucial business driver areas: Compliance & Risk management, Employer of Choice and Competitive Advantage.

Compliance & Risk Management encompassing compliance to customer and regulatory requirements will proactively mitigate potential risks to safeguard our operations and reputation. To be the leading employer brand in our industry, we are dedicated to attracting and retaining talent through the cultivation of an inclusive workplace culture that encourages diversity and empowerment. And to have a competitive edge, we foster innovation and creativity to construct an international brand that empowers resilience and dynamic progression. Together, this strategic approach will position us as the industry leader, delivering sustainable value to all stakeholders.

Notwithstanding, the business strategy will be augmented to our pool of talents and workers, surpassing 10,100 employees as at end 2023, compared to around 7,700 in 2022, following the establishment of our plush toy production in Indonesia.