Financial Performance - Revenue for the six months ended June 30, 2022, was SGD 11,500,000, an increase of 83.5% compared to SGD 6,286,000 for the same period in 2021[9] - Gross profit for the same period was SGD 5,115,000, significantly up from SGD 1,001,000 in 2021, reflecting a gross margin improvement[9] - Operating profit for the six months was SGD 2,676,000, compared to an operating loss of SGD 1,902,000 in the previous year[9] - Net profit attributable to owners for the period was SGD 1,799,000, a turnaround from a loss of SGD 2,318,000 in 2021[9] - Basic and diluted earnings per share for the period was SGD 0.18, compared to a loss per share of SGD 0.23 in the previous year[9] Assets and Liabilities - Total assets as of June 30, 2022, were SGD 42,480,000, an increase from SGD 40,196,000 as of December 31, 2021[13] - Total equity attributable to owners increased to SGD 34,413,000 from SGD 32,680,000 at the end of 2021[13] - The total liabilities increased to 8,067 thousand SGD as of June 30, 2022, compared to 7,516 thousand SGD as of December 31, 2021, marking an increase of about 7.3%[45] - Non-current assets totaled 12,561 thousand SGD as of June 30, 2022, down from 13,702 thousand SGD as of December 31, 2021, representing a decrease of approximately 8.3%[42] Cash Flow and Liquidity - The company reported a cash and cash equivalents balance of SGD 8,306,000 as of June 30, 2022, compared to SGD 13,932,000 at the end of 2021[13] - For the six months ended June 30, 2022, cash flow from operating activities was SGD 1,913,000, compared to a cash outflow of SGD 1,178,000 in the same period of 2021, representing a significant improvement[19] - The net cash generated from operating activities for the same period was SGD 1,574,000, a turnaround from a net cash outflow of SGD 850,000 in 2021[19] - Total cash and cash equivalents decreased by SGD 5,689,000, down from SGD 12,534,000 in the previous year, indicating a liquidity challenge[19] - The total cash and cash equivalents as of June 30, 2022, stood at SGD 8,306,000, down from SGD 12,534,000 a year earlier, reflecting a decrease in liquidity[19] Segment Performance - Revenue from external customers for the manufacturing segment was SGD 11,468,000, while the online segment generated SGD 32,000, totaling SGD 11,500,000[34] - The reported segment performance showed a loss of SGD 1,608,000 for the online business, leading to a total segment loss of SGD 1,928,000 before tax[35] - Manufacturing business revenue increased to 38,083 thousand SGD for the six months ended June 30, 2022, compared to 33,191 thousand SGD for the same period in 2021, representing a growth of approximately 14.3%[42] - The manufacturing segment generated total revenue of approximately SGD 11.47 million for the six months ended June 30, 2022, an increase of about SGD 5.28 million or 85.42% from SGD 6.19 million in the same period of 2021[79] - The online business segment, specifically mobile gaming, reported revenue of approximately SGD 0.03 million for the six months ended June 30, 2022, down from SGD 0.10 million in the previous year[80] Research and Development - The company plans to continue investing in mobile game development, with research and development expenses amounting to SGD 846,000 for the period[9] - The company continues to enhance research and development efforts to optimize existing and new mobile games since launching its first mobile game in December 2020[80] - Research and development expenses related to mobile game development increased by approximately 0.12 million SGD to about 0.85 million SGD for the six months ended June 30, 2022[89] Corporate Governance and Compliance - The company has complied with the corporate governance code provisions as of June 30, 2022[121] - All directors confirmed full compliance with the standard code of conduct regarding securities transactions for the six months ending June 30, 2022[125] - The audit committee reviewed the unaudited condensed consolidated interim results for the six months ending June 30, 2022, and found no discrepancies with the management's accounting principles and practices[124] Employee and Operational Metrics - As of June 30, 2022, the company employed 171 full-time employees, a decrease from 184 employees as of December 31, 2021[111] - The total employee costs for the six months ended June 30, 2022, were approximately SGD 3.70 million, compared to approximately SGD 2.94 million for the same period in 2021[111] Foreign Exchange and Risks - The company experienced a foreign exchange loss of SGD 66,000 during the period, impacting overall comprehensive income[11] - The company faces foreign exchange risks primarily related to USD, RMB, and HKD, but exchange rate fluctuations did not have a significant impact during the period[109] Dividend and Shareholder Information - The company did not recommend an interim dividend for the six months ended June 30, 2022, consistent with the previous year[65] - The board has decided not to declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[110] - As of June 30, 2022, Mr. Li Thet holds a controlled interest in 602,340,000 shares, representing approximately 60.23% of the issued share capital[114] - As of June 30, 2022, the major shareholder, Maodong, holds 602,340,000 shares, representing approximately 60.23% of the issued share capital[117] Investment and Capital Expenditures - The company incurred a net cash outflow of SGD 6,781,000 from investing activities, compared to a cash inflow of SGD 3,238,000 in the previous year, indicating increased investment or capital expenditures[19] - Capital expenditure commitments for the purchase of property, plant, and equipment amounted to SGD 498,000 as of June 30, 2022, compared to SGD 120,000 as of December 31, 2021[74] Other Income and Expenses - Other income, including government grants and waste sales, totaled 122 thousand SGD for the six months ended June 30, 2022, compared to 77 thousand SGD in the same period of 2021, reflecting an increase of approximately 58.4%[52] - The company reported a total of SGD 105,000 in corporate income against corporate expenses of SGD 543,000, leading to a net corporate loss[34] - Administrative expenses decreased by approximately 0.22 million SGD or 9.44% to about 2.09 million SGD for the six months ended June 30, 2022[88]

Financial Performance - The total revenue for the fiscal year 2021 was approximately SGD 16.1 million, an increase of about 55.4% compared to SGD 10.3 million in the fiscal year 2020[9]. - Gross profit rose approximately 246.2% to about SGD 5.0 million in fiscal year 2021, up from SGD 1.4 million in fiscal year 2020[15]. - The net loss attributable to shareholders for fiscal year 2021 was approximately SGD 3.1 million, compared to a net loss of SGD 2.6 million in fiscal year 2020[9]. - Revenue from the manufacturing segment rose by 53.3% to approximately SGD 15.9 million, driven by sustained growth in Singapore's manufacturing sector[20]. - The online business segment generated revenue of approximately SGD 0.2 million in fiscal year 2021, a significant increase from SGD 1,000 in fiscal year 2020, attributed to the first full year of revenue from the mobile game launched in December 2020[21]. - Administrative expenses increased by approximately SGD 2.1 million or 62.0% to SGD 5.6 million in fiscal year 2021, primarily due to professional fees related to the resumption of trading and new employee costs in the online mobile gaming business[24]. - Research and development expenses for mobile games were approximately SGD 1.7 million in fiscal year 2021, up from SGD 0.6 million in fiscal year 2020, reflecting the first full operational year of the mobile gaming business[25]. - The group recorded a net loss of approximately SGD 3.1 million in fiscal year 2021, compared to a net loss of SGD 2.6 million in fiscal year 2020[26]. - As of December 31, 2021, the group's total equity attributable to owners was approximately SGD 32.7 million, down from SGD 35.7 million in fiscal year 2020[28]. Business Strategy and Development - The manufacturing business experienced strong growth driven by continued global demand for semiconductors, with the manufacturing sector in Singapore expanding by 13.2% in 2021[16]. - The company plans to continue developing and optimizing its mobile games to enhance its online business in 2022[10]. - The company aims to diversify its revenue sources to mitigate challenges faced in the manufacturing sector[10]. - The company will focus on upgrading machinery and utilizing robotics to improve production capacity and efficiency[10]. - The company will continue to explore other business opportunities to enhance performance amidst challenges in the manufacturing sector[10]. Corporate Governance - The board of directors is responsible for the overall management and strategic direction of the company, ensuring compliance with corporate governance standards[64]. - The company has adopted all provisions of the Corporate Governance Code as per the listing rules, effective from January 1, 2022[60]. - The company has a strong focus on maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[60]. - The board includes two executive directors and three independent non-executive directors, ensuring a diverse governance structure[64]. - The company has a dedicated audit committee, remuneration committee, and nomination committee to oversee various aspects of governance and management[60]. - The company emphasizes the importance of internal controls and risk management systems in its governance framework[64]. - The board structure and composition are regularly assessed to maintain diversity and effectiveness[77]. - The company has adopted a standard code of conduct for securities trading, ensuring all directors complied fully during the year[72]. Risk Management - The group faced significant risks in its manufacturing business, including reliance on major customers and currency fluctuations[111]. - The online business is exposed to competition from other entertainment forms and potential payment delays from settlement agents[111]. - The board is responsible for maintaining an effective risk management and internal control system, with a continuous risk assessment method adopted to identify and evaluate inherent risks[87]. - The internal audit function is performed by an outsourced team, which reviews the effectiveness of the risk management and internal control systems at least once a year[89]. Environmental, Social, and Governance (ESG) - The group has established an environmental management system certified to ISO 14001:2015 to enhance energy efficiency[103]. - The company emphasizes the need to balance business growth with sustainable development, integrating sustainability parameters into its business model[172]. - The board established an Environmental, Social, and Governance (ESG) committee to oversee the integration of ESG matters into the company's strategy and ensure compliance with regulatory requirements[171]. - The report provides an overview of the group's environmental and social management policies and performance for the year[167]. - The company has implemented strict measures to ensure compliance with environmental and social standards among its suppliers[188]. Employee Relations and Community Engagement - The company has maintained good relationships with employees, offering competitive salaries and bonuses[145]. - The company is committed to community contributions and plans to continue fulfilling corporate responsibilities to support disadvantaged groups in society[193]. - The company has achieved BizSAFE Level 4 certification from the Workplace Safety and Health Council in Singapore, indicating a commitment to workplace safety and health[196]. - During the reporting period, the company recorded zero work-related fatalities, zero work injuries, and zero lost workdays due to injuries, aiming to maintain a record of zero incidents[197]. Shareholder Communication and Compliance - The company ensures effective and timely communication with shareholders through its website, where all corporate communications are published[94]. - The company has not disclosed any significant non-compliance with relevant laws and regulations during the fiscal year 2021[102]. - The company has not identified any cases of corruption or violations of anti-bribery, anti-extortion, or anti-money laundering laws during the year[192].

FSM Holdings Limited (於開曼群島註冊成立之有限公司) 股份代號: 1721 年 度 報 告 ＼ 2020 (2) 98 GE og Do 7 -qi- 《 目錄 目錄 | --- | --- | |-------|----------------------| | | | | 2 | 公司資料 | | 4 | 主席報告 | | 6 | 管理層討論及分析 | | 12 | 董事及高級管理層履歷 | | 14 | 企業管治報告 | | 22 | 董事會報告 | | 33 | 環境、社會及管治報告 | | 53 | 獨立核數師報告 | | 58 | 綜合損益表 | | 59 | 綜合全面收益表 | | 60 | 綜合財務狀況表 | | 62 | 綜合權益變動表 | | 63 | 綜合現金流量表 | | 64 | 綜合財務報表附註 | | 113 | 財務資料概要 | 1 年度報告 2020 FSM Holdings Limited 公司資料 公司資料 董事會 執行董事 Li Thet先生（主席）（於二零二零年四月八日獲委任） 卓仲福先生（行政總裁） （於二零二零年四月八日辭任主席） 黃月蓮女士 ...

Financial Performance - Revenue for the six months ended June 30, 2020, was SGD 4,336,000, a decrease of 13% compared to SGD 4,970,000 in 2019[7] - Gross profit for the same period was SGD 460,000, down 70% from SGD 1,545,000 in 2019[7] - Operating profit for the six months was SGD 150,000, a significant improvement from an operating loss of SGD 64,000 in 2019[7] - Net profit attributable to owners for the period was SGD 126,000, compared to SGD 6,000 in the previous year, marking a substantial increase[7] - The group recorded a profit attributable to owners of the company of approximately 0.13 million SGD for the six months ended June 30, 2020, compared to 6,000 SGD in the same period in 2019[74] Assets and Equity - Total assets as of June 30, 2020, were SGD 44,932,000, slightly down from SGD 45,691,000 at the end of 2019[11] - Total equity attributable to owners was SGD 39,564,000, compared to SGD 39,452,000 at the end of 2019, indicating stability[11] - As of June 30, 2020, the group's total equity attributable to owners was approximately 39.56 million SGD, slightly up from 39.45 million SGD as of December 31, 2019[75] Cash Flow - Cash and cash equivalents increased to SGD 12,098,000 from SGD 11,780,000, showing a positive cash flow trend[11] - The net cash generated from operating activities for the six months ended June 30, 2020, was 1,126 thousand SGD, a decrease of 51.4% compared to 2,316 thousand SGD in the same period of 2019[15] - The cash and cash equivalents decreased by 2,506 thousand SGD, resulting in a balance of 9,129 thousand SGD as of June 30, 2020, down from 14,883 thousand SGD at the same time in 2019[15] Income and Expenses - Other income increased significantly to SGD 340,000 from SGD 31,000 in 2019, reflecting a growth of over 1000%[7] - Employee benefits expenses decreased to 1,884 thousand SGD from 2,060 thousand SGD year-on-year, reflecting a reduction of approximately 8.5%[37] - Administrative expenses decreased by approximately 0.01 million SGD or 0.56% to about 1.61 million SGD for the six months ended June 30, 2020[73] Market and Operational Impact - The company plans to focus on market expansion and new product development in the upcoming quarters[11] - The company’s Malaysian manufacturing facility was temporarily closed from March 18 to April 19, 2020, due to COVID-19, impacting production capacity[62] - The group's revenue for the six months ended June 30, 2020, decreased by approximately 0.63 million SGD or 12.76% compared to the same period in 2019, primarily due to the adverse impacts of the COVID-19 pandemic and related restrictions in Singapore and Malaysia[68] Shareholder Information - The major shareholder, Maotong Limited, acquired 602,000,000 shares, representing about 60.20% of the total issued share capital for a total consideration of HKD 252.84 million[98] - Li Thet holds a controlled interest in Maotong Limited, owning 602,340,000 shares, which is approximately 60.23% of the issued share capital[99] Governance and Compliance - The audit committee reviewed the group's unaudited interim results for the six months ending June 30, 2020, with no differing opinions from management[114] - The company has complied with the corporate governance code provisions as of June 30, 2020, after restructuring the roles of chairman and CEO[111] - All directors confirmed compliance with the securities trading code during the six months ending June 30, 2020[115]

Financial Performance - Total revenue for the fiscal year 2019 was approximately SGD 9.6 million, a decrease of about 51.5% from SGD 19.8 million in fiscal year 2018[13]. - Gross profit decreased from approximately SGD 8.6 million in fiscal year 2018 to about SGD 2.8 million in fiscal year 2019, reflecting a significant decline due to reduced sales of higher-margin products[13]. - Net profit attributable to owners for fiscal year 2019 was approximately SGD 59,000, down from SGD 2.1 million in fiscal year 2018, representing a decrease of about SGD 2.0 million[20]. - The group's revenue decreased from approximately SGD 19.8 million in FY2018 to approximately SGD 9.6 million in FY2019, a decline of about SGD 10.2 million or 51.5%[26]. - Revenue from the sale of sheet metal products accounted for approximately 98.1% of total revenue, dropping from approximately SGD 19.2 million in FY2018 to approximately SGD 9.4 million in FY2019, a decrease of about SGD 9.8 million or 51.0%[26]. - Gross profit for FY2019 was approximately SGD 2.8 million, down from approximately SGD 8.6 million in FY2018, a reduction of about SGD 5.8 million or 67.4%[28]. - The gross profit margin for FY2019 was approximately 28.8%, compared to approximately 43.4% in FY2018, primarily due to a significant reduction in sales of higher-margin sheet metal products related to semiconductor manufacturing[28]. - Other income decreased from SGD 55,000 in FY2018 to SGD 53,000 in FY2019, a decline of about SGD 2,000 or 3.6%[29]. - Administrative expenses decreased from approximately SGD 5.5 million in FY2018 to approximately SGD 2.3 million in FY2019, a reduction of about SGD 3.2 million or 58.2%[31]. - The group recorded a net profit of approximately SGD 59,000 in FY2019, compared to approximately SGD 2.1 million in FY2018[32]. Market Challenges - The company faced challenges due to the US-China trade war, which impacted sales and led to delays in customer orders[19]. - Sales of sheet metal products were SGD 9.4 million in fiscal year 2019, compared to SGD 19.2 million in fiscal year 2018, indicating a significant drop in demand[23]. - Precision engineering services revenue fell to SGD 182,000 in fiscal year 2019 from SGD 611,000 in fiscal year 2018, highlighting challenges in the market[23]. - The overall economic impact of COVID-19 on the semiconductor industry remains uncertain, affecting product demand[14]. - The COVID-19 pandemic has led to temporary shutdowns in Malaysia, which may impact the company's financial performance, though the extent is currently unquantifiable[55]. Operational Adjustments - The company plans to upgrade machinery and robotics to reduce production costs and improve productivity despite the challenging environment[14]. - The Malaysian manufacturing facility was temporarily shut down from March 18 to April 14, 2020, due to COVID-19 restrictions, affecting operations[14]. - The company is reviewing its operations and business activities to formulate long-term strategies for stability in a challenging market[14]. Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability[73]. - The board of directors is responsible for the overall management and strategic direction of the company, overseeing operations in Singapore and Malaysia[75]. - The board includes three executive directors and three independent non-executive directors, ensuring a balanced governance structure[76]. - The company has adopted all provisions of the corporate governance code as per the Stock Exchange Listing Rules, except for one specific provision[74]. - The company has established a remuneration committee and a nomination committee to enhance corporate governance practices[86][89]. - The independent non-executive directors confirmed their independence in accordance with listing rules, ensuring compliance in financial reporting[78]. - The company has a commitment to transparency and regular communication with shareholders regarding governance practices[73]. - The board will conduct regular reviews to ensure compliance with corporate governance codes and make necessary recommendations[79]. Risk Management - The company maintains a robust risk management and internal control system, with annual reviews to ensure effectiveness and protect shareholder interests[99]. - An external professional consultant reviewed the internal control system, and the board found the risk management and internal control systems to be effective and sufficient[100]. Shareholder Information - As of December 31, 2019, the group's total equity attributable to owners was approximately SGD 39.5 million, slightly down from approximately SGD 39.7 million in FY2018[35]. - The current ratio as of December 31, 2019, was approximately 9.2 times, compared to approximately 6.9 times in FY2018[36]. - The company has a stock option plan that allows for the issuance of options up to a maximum of 10% of the total shares issued at the time of listing, subject to shareholder approval[156]. - The company did not grant any stock options since the adoption of the stock option plan, and there were no unexercised options as of December 31, 2019[156]. - The company has adopted a dividend policy allowing shareholders to participate in profits, with the board having full discretion over dividend declarations based on various factors[175]. - No final dividend was recommended for the fiscal year 2019[176]. Employee Relations - The company maintains good relationships with employees, offering competitive salaries and bonuses, and has an annual review mechanism for performance evaluation[162]. - The company participates in the Central Provident Fund Scheme and the Employees Provident Fund Scheme, with contributions of up to 13.0% for eligible employees in Malaysia[167]. Environmental and Quality Management - The company is committed to minimizing environmental impacts and has adopted an ISO standard environmental management system[187]. - The company has implemented an ISO 9001 certified quality management system and started using an enterprise resource planning system to improve efficiency[187]. - The quality control team conducts inspections at all stages of production to ensure compliance with quality standards[195]. - Any defects identified during production are documented in non-compliance reports and addressed immediately[195]. - In 2019, the company received the BisSAFE Level 4 certification from the Singapore Workplace Safety and Health Council, recognizing its efforts in occupational health and safety[188].

Financial Performance - Revenue for the six months ended June 30, 2019, was approximately SGD 5.0 million, a decrease of about 55.9% compared to SGD 11.3 million for the same period in 2018[5] - Profit for the six months ended June 30, 2019, was approximately SGD 6,000, compared to a loss of approximately SGD 0.2 million for the same period in 2018[5] - Earnings per share attributable to owners of the company for the six months ended June 30, 2019, was approximately SGD 0.0006, compared to a loss per share of approximately SGD 0.02 for the same period in 2018[5] - Gross profit for the six months ended June 30, 2019, was SGD 1.545 million, down from SGD 5.180 million in the same period of 2018[8] - The company reported a net financing income of SGD 88,000 for the six months ended June 30, 2019, compared to a net financing cost of SGD 45,000 in the same period of 2018[8] - Other comprehensive income for the six months ended June 30, 2019, was SGD 7,000, compared to a loss of SGD 156,000 for the same period in 2018[10] - The company reported a net profit of 6 thousand SGD for the period, compared to a loss of 157 thousand SGD in the same period of 2018[14] - The group recorded an operating loss of approximately 64,000 SGD for the six months ended June 30, 2019, compared to an operating profit of about 400,000 SGD in the same period of 2018, primarily due to a revenue decrease of approximately 6.3 million SGD[89] Assets and Liabilities - Total assets as of June 30, 2019, were SGD 44.889 million, compared to SGD 45.456 million as of December 31, 2018[12] - Total equity attributable to owners of the company was SGD 39.399 million as of June 30, 2019, compared to SGD 39.653 million as of December 31, 2018[12] - Non-current assets included property, plant, and equipment of SGD 12.934 million as of June 30, 2019, down from SGD 13.387 million as of December 31, 2018[12] - Current liabilities decreased to SGD 2.720 million as of June 30, 2019, from SGD 4.363 million as of December 31, 2018[12] - As of June 30, 2019, total lease liabilities amounted to SGD 2.11 million, significantly up from SGD 0.38 million as of December 31, 2018[70] - The debt-to-equity ratio as of June 30, 2019, was 0.06, compared to 0.02 on December 31, 2018, primarily due to lease liabilities increasing from approximately 0.4 million SGD to about 2.1 million SGD[100] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2019, was 2,316 thousand SGD, down from 5,270 thousand SGD in the same period of 2018, representing a decline of approximately 56%[16] - Cash and cash equivalents decreased by 598 thousand SGD, ending at 14,883 thousand SGD as of June 30, 2019, compared to 15,481 thousand SGD at the beginning of the year[16] - The company incurred a total cash outflow from investing activities of 2,670 thousand SGD for the six months ended June 30, 2019, compared to 2,288 thousand SGD in the previous year[16] - For the six months ended June 30, 2019, net cash generated from operating activities was approximately 2.3 million SGD, while net cash used in investing activities was about 2.7 million SGD[101] Revenue Sources - Revenue from sales of sheet metal products was SGD 4.89 million, accounting for 98.5% of total revenue, while precision engineering services contributed SGD 77, representing 1.5%[83] - The decline in revenue was primarily attributed to a decrease in orders for sheet metal products related to semiconductor manufacturing due to the US-China trade war and market deterioration[77] - Customer A contributed 542 thousand SGD to total revenue in 2019, down from 6,562 thousand SGD in 2018, while Customer B contributed 4,091 thousand SGD, up from 3,856 thousand SGD[52] Expenses - Cost of goods sold for the six months ended June 30, 2019, was 3,425 thousand SGD, compared to 6,099 thousand SGD in 2018, indicating a reduction of approximately 44%[55] - Employee benefits expenses, including director remuneration, were 2,060 thousand SGD for the six months ended June 30, 2019, slightly down from 2,098 thousand SGD in 2018[55] - Administrative expenses decreased by approximately 3.3 million SGD or 67.2% from about 4.9 million SGD in the six months ended June 30, 2018, to approximately 1.6 million SGD in the same period of 2019, mainly due to non-recurring listing expenses[88] Financial Risks and Governance - The company faces various financial risks, including market risk, credit risk, and liquidity risk, which are consistent with those disclosed in the annual financial statements[46] - The financial risk management policies have not changed since the end of the last fiscal year[47] - The company has not adopted any hedging arrangements to mitigate foreign exchange risks, which may impact its financial performance[113] - The company has complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO[124] Shareholder Information - As of June 30, 2019, major shareholders KAL SG and KYL SG each hold 301,000,000 shares, representing 30.1% of the issued share capital[120] - Directors and key executives, including Mr. Chok Chung-fok and Ms. Wong Yuet-lin, also hold 301,000,000 shares each, accounting for 30.1% of the issued share capital[120] Future Plans - The company plans to enhance production capacity by upgrading machinery and robotic technology while actively seeking new customers[79] - The company aims to diversify its profit base and explore different investment opportunities to create sustainable returns for shareholders[80]

Financial Performance - FSM Holdings Limited reported a revenue of approximately SGD 19.8 million for the fiscal year ending December 31, 2018, with a gross profit of SGD 8.6 million and a profit before tax of SGD 3.0 million[33]. - The company achieved a profit attributable to shareholders of SGD 6.3 million for the fiscal year 2018, compared to SGD 6.1 million for the previous year, reflecting a year-on-year increase of approximately 3.3%[33]. - The group's revenue decreased to approximately SGD 19.8 million for the fiscal year ended December 31, 2018, down 4.8% from approximately SGD 20.8 million for the fiscal year ended December 31, 2017[45]. - Revenue from sales of sheet metal products fell by approximately SGD 0.8 million or 4.0% to SGD 19.2 million, while revenue from precision mechanical services decreased by approximately SGD 0.2 million or 25.0% to SGD 0.6 million[45]. - The group recorded an annual profit of approximately 2.1 million SGD for the year ended December 31, 2018, down from about 6.1 million SGD in 2017; excluding listing expenses, profit would have been approximately 6.3 million SGD, an increase of about 0.2 million SGD[58]. - The gross profit for the fiscal year ended December 31, 2018, was approximately SGD 8.6 million, an increase of about SGD 0.4 million, resulting in a gross margin of approximately 43.4% compared to 41.2% in the previous year[52]. Strategic Initiatives - FSM Holdings successfully raised net proceeds of HKD 95.2 million from its listing on the Hong Kong Stock Exchange on July 16, 2018, which will be used to expand production capacity and enhance automation[32]. - The company plans to expand its operational scale by increasing production capacity and implementing greater automation to achieve higher efficiency[40]. - FSM Holdings plans to focus on enhancing its capabilities and competitiveness in the medium to long term, despite external threats from trade tensions[34]. - The company aims to improve its production efficiency and quality assurance capabilities as part of its strategic priorities for the upcoming fiscal periods[32]. Market Conditions - The International Monetary Fund projected a global growth rate of 3.5% for 2019, amidst uncertainties in trade policies and market sentiments, which may impact FSM's business outlook[34]. - The market drivers for the precision metal parts market in Singapore include government initiatives to boost domestic manufacturing and support for R&D in the coming years[45]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as per the Listing Rules, ensuring high standards of corporate governance to protect shareholder interests[99]. - The company has complied with the Corporate Governance Code provisions from the listing date on July 16, 2018, to December 31, 2018, except for provision A.2.1[99]. - The company is committed to maintaining high levels of corporate governance to enhance corporate value and accountability[99]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[101]. - The company has a strong focus on internal controls and risk management as part of its governance framework[99]. Financial Position - As of December 31, 2018, the total equity attributable to the company's owners was approximately 39.7 million SGD, up from 17.3 million SGD in 2017[61]. - The group's current assets net amounted to approximately 25.8 million SGD as of December 31, 2018, compared to 4.4 million SGD in 2017[63]. - The current ratio was approximately 6.9 times as of December 31, 2018, compared to 1.5 times in 2017[63]. - The group had no significant contingent liabilities as of December 31, 2018[68]. Employee and Management - The group employed 151 full-time employees as of December 31, 2018, down from 184 employees in 2017[71]. - The company has a mechanism in place for annual performance reviews to assess employee performance, which serves as a basis for salary increases and bonuses[179]. - The management team includes experienced professionals with backgrounds in finance, accounting, and business development, ensuring effective oversight of operations[92][96][97]. Risks and Challenges - The company experienced challenges in demand for its sheet metal products during the fiscal year, yet managed to navigate through these difficulties successfully[33]. - The group faced significant risks and uncertainties, which are detailed in the "Management Discussion and Analysis" section of the annual report[142]. Shareholder Relations - The company ensures effective and timely communication with shareholders, with all corporate communications available on its website[129]. - The board acknowledges its responsibility for ensuring the integrity of sustainability reporting[199]. - This is the first environmental, social, and governance report for FSM Holdings Limited, covering performance for the fiscal year ended December 31, 2018[200].