Chin Well: Email exchange with IR

I dropped an email to Chin Well Berhad's IR. Below questions are some of my enquiries to them and their answer. 

1) Based on the FY2014 annual report, Mr Lim mentioned in his chairman statement that the group secured new contract from the largest DIY fastener supplier in German and France. Are the contracts long term base or by order base? Approximately how much they will contribute to the group's result in FY2015 compared to FY2014?

A: Such contracts are typically received quarterly. DIY segment made up 11% of group revenue in FY2014 and we hope to increase the contribution in FY2015.
(p/s: I hope also )

2) Mr Lim also mentioned that the group invested a substantial amount in new machine and is expected to be commissioned at the end of 2014. May I know what is the progress now? The new machines are expected to improve production output or improve efficiency?

A: The machinery has been installed, and are expected to enhance efficiency.

3) EU had imposed a five year anti-dumping duty on imports of iron and steel fasteners originating in PRC in 2009 and is set to expire in Oct 2014. Is that any update on the extension of the duty?

 A: The industry is awaiting EU’s decision. Meantime, the existing anti-dumping duty applies.

4) Is the raw material of Chin Well Holding’s products mainly from carbon steel? What forms are they?

A: Fasteners are made of higher grade carbon steel wire rod, which are made to reach the mechanical properties required by different standards; while Chin Herr’s raw material is from construction grade wire rod for basic foundation use.

5) The group’s trade receivables turnover is quite high and there is high percentage of trade receivables past due more than 60 days. How does the group tackle this issue and manage its credit risk?

A: It is normal for local market or the South East Asia market to have payment term of 90 days or more. Our marketing department has weekly meetings to keep track of customer's payment and control the shipment to make sure every customer is within the credit limit. 
(p/s: To me, the credit term is little bit long, perhaps it's industry norm? )

6) It’s noted that the group’s borrowings are all denominated in USD currency and the current trend is that the USD will strengthen against MYR. Does the group contemplating to convert the loan into MYR currency or others?

A: The export sales which takes up more than 70% of the group revenue are either in USD or EUR, therefore the purchase of raw material in USD is a natural hedge. Furthermore the interest rate for borrowing USD is less than 1% while the interest rate for borrowing MYR is more than 4%.  

We don't see it will do us any good by converting the loan from USD to MYR with a loss in currency change, then pay a higher interest rate with MYR borrowing, then take up another currency change loss by turn MYR in to USD to pay back to the suppliers.
(p/s: I should find this in the annual report. It's stated there :) )