CEI Limited

1 Telephone / Facsimile : Tel: (65) 6481 1882 Fax: (65) 6578 9755 Address : 2 Ang Mo Kio Avenue 12 Singapore 569707 Contact : Tan Ka Huat, Managing Director Email: LimitedCompany Registration No: 199905114H2016 ANNUAL REPORTCEI AR 1 14/3/17 4:44 pmCONTENTSC orporate Profile / Corporate Information 1 Chairman s Message 2 Board of Directors 3 Key Management Executives 4 Sustainability Report 5 Report on Corporate Governance 6 Risk Identification, Management Policies and Processes 14 financial Highlights 15 financial Report 16 Statistics of Shareholders 60 Notice of AGM 62 Proxy Form 65 Letter to Shareholders - Proposed Renewal of the Share Purchase Mandate iCEI AR 2 14/3/17 4.

2 44 pm1 Remuneration CommitteeTang Martin Yue Nien (Chairman)Tan Bien ChuanGan Chee YenColin Ng Teck SimBoard Risk CommitteeTan Bien Chuan (Chairman)Tang Martin Yue NienGan Chee YenColin Ng Teck SimJoint Company SecretariesTeo Soon HockSusie Low Geok EngRegistered Office2 Ang Mo Kio Avenue 12 Singapore 569707 Share Registrar and Share Transfer OfficeBoardroom Corporate & Advisory Services Pte Ltd 50 Raffles Place #32-01 Singapore Land TowerSingapore 048623 AuditorsErnst & Young LLPP ublic Accountants and Chartered AccountantsAlvin Phua Chun Yen (Engagement Partner)

3 * Level 18, One Raffles Quay North Tower Singapore 048583 *Appointed in financial Year 2016 SolicitorsColin Ng & Partners600 North Bridge Road #13-01 Parkview Square Singapore 188778 BankersDBS Bank Ltd12 Marina BoulevardMarina Bay financial Centre Tower 3 Singapore 018982 The Hongkong and ShanghaiBanking Corporation Limited21 Collyer Quay #13-02 HSBC BuildingSingapore 049320 Board of DirectorsTien Sing Cheong (Executive Chairman)Tan Ka Huat (Managing Director)Gan Chee Yen (Non-Executive Director)Tan Bien Chuan (Independent Director)Tang Martin Yue Nien (Independent Director)Colin Ng Teck Sim (Independent Director)Wang Ya Lun Allen (Alternate Director to Gan Chee Yen)Audit CommitteeTan Bien Chuan (Chairman)Tang Martin Yue NienGan Chee YenColin Ng Teck SimNominating CommitteeColin Ng Teck Sim (Chairman)Tang Martin Yue NienTien Sing CheongTan Bien ChuanCEI Limited (formerly known as CEI Contract Manufacturing Limited ), is listed on the main board of the Singapore Exchange Securities Trading Limited since March 2000.

4 The Company provides printed circuit board and box-build assembly, equipment design, cable harness assembly and manufacturing services. It is well equipped to provide value-added services such as materials management, circuit layout, prototype & development engineering, metal stamping, cable harnessing and precision machined components. The Company serves customers in the industrial equipment market segment. These include electroluminescence displays used in industrial, transportation and medical applications; medical and health care equipment; office equipment as in digital photocopiers; analytical instruments as in gas and liquid chromatographs and measurement instruments; industrial safety controllers and environmental sensors, semiconductor equipment and SMT equipment.

5 The Company is ISO9001, ISO13485, ISO14001, AS9100, UL508A, UL817 certified and Nadcap AC7120 accredited. CEI International Investments (VN) Limited 2, Street 6, Vietnam Singapore Industrial Park Thuan An, Binh Duong Province VietnamPT Surya Teknologi Batamindo Industrial Park Lot 312/313 Jalan Beringin, Muka Kuning Batam, Indonesia CEI Limited 2, Ang Mo Kio Avenue 12 Singapore 569707 CORPORATE PROFILE2 DEAR SHAREHOLDERSFINANCIAL YEAR 2016In financial Year (FY) 2016, the Group s Revenue of $ million was lower than FY 2015. The Gross Profit Margin decreased from in FY 2015 to in FY 2016.

6 The lower Gross Profit Margin was mainly attributable to generally weaker US$ in FY General and Administrative Costs was higher mainly due to: (1) A swing from fair value gain in FY 2015 to a fair value loss in FY 2016 on forward currency contracts, and(2) Lower foreign exchange gain in FY costs was lower as a result of lower was lower by $ million due to one-off write back of over-provision of taxation from previous years and tax incentive Group s Profit after taxation decreased from $ million to $ million in FY decreased from $ million to $ million.

7 Bank borrowings decreased from $ million to $ million. These were achieved through improved working capital management. financial YEAR 2017As at 31 December 2016, the Group has orders on hand worth $ million (31 December 2015: $ million) most of which are expected to be fulfilled within the current financial company focuses on high mix low volume niche segment; providing printed circuit board and box-build assembly, equipment design, cable harness assembly and manufacturing services. It is well equipped to provide value-added services such as materials management and circuit layout.

8 The Company also provides prototype & development engineering, metal stamping, cable harnessing and precision machined Group serves customers from a diverse range of market segments. These include analytical instruments, medical equipment, semi-conductor equipment, oil and gas industries, aviation and displays for industrial political developments in the international arena may result in some degree of economic volatility. The Group needs to remain vigilant and, barring any unforeseen circumstances, expects to remain profitable for FY Directors recommend payment of.

9 (a) A one-tier tax-exempt second and final dividend of cents per share amounting to $346,794 and(b) A one-tier tax-exempt special dividend of cents per share amounting to $4,161, interim, final and special dividends declared for FY 2016 was of the profit after taxation, which approximate to $8,669,846 or cents per sincere appreciation to our Customers, Business Partners, Suppliers, Shareholders and Employees of CEI, for your continual Sing CheongChairman28 February 2017 CHAIRMAN S MESSAGE3 BOARD OF DIRECTORSMr Tien Sing Cheong Executive ChairmanAppointed as Executive Director on 28 August 1999 and was last re-elected on 6 April 2016.

10 Mr Tien is also the Executive Chairman of the Company. Mr Tien holds a Bachelor of Science in Engineering degree from the University of Hong Kong, a Master of Science degree from Stanford University, California and a Master of Business Administration degree from the University of Santa Clara, California. Mr Tien is also a Fellow of the Institution of Mechanical Engineers, United Tan Ka Huat Managing DirectorAppointed as Executive Director on 28 August 1999 and also Managing Director of the Company. Mr Tan holds a Bachelor of Science (Physics) degree from Nanyang University (now known as Nanyang Technological University), a Diploma in Business Administration from the National University of Singapore and a Master of Business degree from University of Technology, Gan Chee Yen Non-Executive DirectorAppointed as a Non-Executive Director since 28 August 1999 and was last re-elected on 16 April 2015.