Financial Performance - The group's revenue increased from approximately SGD 185.0 million in FY2018 to approximately SGD 187.0 million in FY2019, representing a growth of about SGD 2.0 million or 1.1%[10] - The total gross profit decreased from approximately SGD 22.0 million in FY2018 to approximately SGD 20.9 million in FY2019, with a gross margin decline from about 11.9% to 11.2%[10] - The group recorded a total profit and comprehensive income of approximately SGD 3.0 million in FY2019, down from approximately SGD 7.4 million in FY2018[10] - Total comprehensive income decreased by approximately SGD 4.4 million or 59.5% to approximately SGD 3.0 million in FY2019, with a net profit margin decline from approximately 4.0% in FY2018 to 1.6% in FY2019[42] - Financing expenses increased by approximately SGD 0.6 million or 35.3% to approximately SGD 2.3 million in FY2019, primarily due to increased interest expenses on lease liabilities[40] - Total sales cost increased by approximately SGD 3.0 million or 1.8% to approximately SGD 166.0 million in FY2019, primarily due to increased costs of sold vehicles[26] Sales and Revenue Streams - The number of new cars sold decreased by approximately 2.2% from 1,664 units in FY2018 to 1,628 units in FY2019, while used car sales increased by approximately 4.3% from 581 units to 606 units[17] - The average selling price of new cars increased from approximately SGD 89,000 in FY2018 to approximately SGD 93,000 in FY2019, despite a decrease in the number of units sold[19] - Revenue from automotive financing services increased by approximately SGD 0.1 million or 1.7% from approximately SGD 5.9 million in FY2018 to approximately SGD 6.0 million in FY2019[20] - The rental income from automotive operations increased by approximately SGD 0.6 million or 25.0% in FY2019[18] - Revenue from car leasing increased by approximately SGD 0.6 million or 25.0% from FY2018 to approximately SGD 3.0 million in FY2019, driven by a higher number of customers requiring car rental services[24] - Revenue from the sale of spare parts and accessories decreased by approximately SGD 89,000 or 73.0% to approximately SGD 33,000 in FY2019[25] Operational Challenges - The group faced challenges due to the ongoing US-China trade war and the COVID-19 pandemic, which may impact consumer confidence in luxury goods[11] - The general and administrative expenses (excluding listing expenses) increased by approximately SGD 1.5 million in FY2019[10] Corporate Governance - The company has maintained high levels of corporate governance to protect shareholder interests and enhance corporate value[81] - The company has adopted all provisions of the corporate governance code as per the Listing Rules, except for the separation of the roles of Chairman and CEO[83] - The company’s independent non-executive directors have extensive experience in finance, management, and marketing, contributing to strategic decision-making[73][74] - The company has a strong focus on internal controls and risk management processes to achieve high accountability standards[81] - The board of directors consists of seven members, with independent non-executive directors accounting for over one-third of the board[87] Financial Position and Ratios - As of December 31, 2019, the current ratio improved to 1.6 from 1.2 in 2018, while the debt-to-equity ratio decreased to 122.3% from 185.6%[47] - As of December 31, 2019, the group's borrowings amounted to approximately SGD 54.0 million, an increase from SGD 51.3 million in 2018[48] - Capital expenditures for the year ended December 31, 2019, were approximately SGD 6.6 million, up from SGD 6.0 million in 2018, primarily for the purchase of properties, plants, and equipment in Singapore[49] Shareholder Information - The company reported no final dividend for the year ended December 31, 2019, consistent with the previous year[128] - As of December 31, 2019, the company's distributable reserves amounted to approximately SGD 9.5 million, compared to none in 2018[138] - The company has adopted a general annual dividend policy to distribute at least 15% of the distributable profits for any financial year as dividends, subject to board discretion and shareholder approval[152] Employee and Management Structure - The group employed a total of 76 employees as of December 31, 2019, an increase from 72 employees in 2018[55] - The company has a dedicated marketing and communications director who has been with the company since its inception, overseeing brand and marketing strategies[76] Risk Management - The company has a commitment to maintaining effective corporate governance practices as part of its management framework[81] - The board is responsible for maintaining an effective risk management and internal control system, which includes continuous risk assessment methods to identify and evaluate significant inherent risks[110] - An external professional consultant reviewed the risk management and internal control system, and the board deemed it effective and sufficient[111] Environmental and Social Responsibility - The company is committed to improving environmental sustainability and will publish a separate report on its environmental, social, and governance performance within three months of the annual report[129] - Charitable donations for the year ended December 31, 2019, totaled approximately SGD 95,000, an increase from SGD 28,000 in 2018[141]

Financial Performance - Total revenue for the six months ended June 30, 2019, was SGD 91,970,000, a decrease of 1.7% from SGD 93,567,000 in the same period of 2018[10] - Gross profit for the same period was SGD 10,850,000, down 8.6% from SGD 11,870,000 year-on-year[10] - Operating profit decreased significantly to SGD 2,818,000, compared to SGD 6,229,000 in the previous year, reflecting a decline of 54.8%[10] - Net profit attributable to equity holders for the period was SGD 1,468,000, a decrease of 67.0% from SGD 4,464,000 in the prior year[10] - Basic and diluted earnings per share were SGD 0.18, down from SGD 0.64 in the same period of 2018[10] - Revenue from car sales for the first half of 2019 is 87,315 thousand SGD, a slight decrease of 2.1% from 89,148 thousand SGD in the same period of 2018[44] - Revenue from financing commission income is 1,789 thousand SGD, down 6.4% from 1,911 thousand SGD year-over-year[44] - Total revenue recognized from customer contracts as per IFRS 15 is 89,342 thousand SGD, a decrease of 2.2% compared to 91,334 thousand SGD in the previous year[44] - Rental income from operating leases for cars increased to 1,533 thousand SGD, up 32.1% from 1,161 thousand SGD in the same period last year[44] - The group's net profit and total comprehensive income decreased by approximately 3.0 million SGD or 66.7% to about 1.5 million SGD in the first half of 2019, with a decline in net profit margin from approximately 4.8% to 1.6%[105] Assets and Liabilities - Total assets as of June 30, 2019, amounted to SGD 102,786,000, compared to SGD 100,461,000 at the end of 2018[12] - Total liabilities decreased to SGD 60,172,000 from SGD 72,729,000 at the end of 2018, indicating a reduction of 17.3%[12] - The company reported a significant increase in non-current assets, with property, plant, and equipment rising to SGD 16,936,000 from SGD 14,651,000[11] - Total borrowings amounted to SGD 37,582,000, with repayments of SGD 43,163,000 during the financing activities[18] - Total trade and other payables decreased to 10,635 thousand SGD as of June 30, 2019, compared to 19,259 thousand SGD as of December 31, 2018, indicating a reduction of approximately 44.5%[65] - Non-current borrowings increased to 22,261 thousand SGD as of June 30, 2019, up from 19,701 thousand SGD as of December 31, 2018, which is an increase of about 13.0%[66] - Current borrowings decreased to 25,837 thousand SGD as of June 30, 2019, down from 31,635 thousand SGD as of December 31, 2018, reflecting a decline of approximately 18.5%[67] Cash Flow - Operating cash flow for the six months ended June 30, 2019, was SGD 3,358,000, compared to a cash outflow of SGD 2,538,000 in 2018, representing a significant improvement[18] - Net cash generated from operating activities was SGD 2,487,000, a turnaround from a net cash outflow of SGD 3,781,000 in the same period last year[18] - Cash and cash equivalents increased to SGD 12,176,000 from SGD 7,855,000, reflecting a growth of 55.8%[11] - Cash flow from investing activities showed a net outflow of SGD 1,743,000, an improvement from SGD 3,320,000 in the previous year[18] - The company reported a cash balance of SGD 12,176,000, with bank overdrafts of SGD 1,020,000 as of June 30, 2019[20] - Cash and cash equivalents increased by SGD 4,077,000, reaching SGD 11,156,000 as of June 30, 2019, compared to SGD 1,719,000 in 2018[20] Capital Structure - The company’s issued and paid-up ordinary shares increased to 900,000,000 shares as of June 30, 2019, from 1 share at the beginning of the year, indicating a significant capital restructuring[68] - The company's statutory capital increased to 100,000,000 SGD as of June 30, 2019, from 380,000 SGD at the beginning of the year, reflecting a substantial increase in authorized share capital[70] - The company capitalized 6,949,999 SGD from the share premium account, issuing 694,999,900 ordinary shares at par value[70] Expenses - Total operating expenses, including cost of sales and administrative expenses, were 89,268 thousand SGD for the six months ended June 30, 2019, compared to 87,725 thousand SGD in 2018, an increase of approximately 1.8%[54] - Financing expenses increased to 1,042 thousand SGD in 2019 from 777 thousand SGD in 2018, marking a rise of about 34%[53] - General and administrative expenses increased by approximately 1.4 million SGD or 42.4% to about 4.7 million SGD in the first half of 2019, mainly due to increased legal and professional fees and depreciation[99] - The company’s depreciation expense for the six months ended June 30, 2019, was 1,548 thousand SGD, reflecting ongoing asset utilization and maintenance costs[63] Business Operations - The company is engaged in the sale of new parallel imported cars, used cars, and provides automotive financing and insurance services, indicating a diversified business model[22] - The company sold 862 new cars and 286 used cars in the first half of 2019, representing an increase of approximately 2.1% and 5.5% compared to the same period in 2018[77] - The average selling price of cars decreased from approximately 80,000 SGD in the first half of 2018 to about 76,000 SGD in the first half of 2019[80] - Income from car leasing increased by approximately 0.3 million SGD or 25.0% to about 1.5 million SGD in the first half of 2019, with the number of cars rented increasing from 97 to 119[84] Corporate Governance - The audit committee, established on February 1, 2019, consists of three independent non-executive directors and oversees financial reporting and internal controls[139] - The company has complied with all applicable corporate governance codes during the reporting period[138] - The company has adopted a standard code for securities transactions by directors, confirming compliance by all directors during the reporting period[137] Shareholder Information - As of June 30, 2019, Mr. Chen holds a beneficial interest in 605,500,000 shares, representing approximately 67.3% of the company's shares[128] - Gatehouse Ventures, fully owned by Mr. Chen, also holds 605,500,000 shares, equating to a 67.3% ownership stake[130] - Gifted Ally, controlled by Mr. Ng, holds 69,500,000 shares, which is about 7.7% of the company's shares[130] - No share options were granted under the stock option plan since its adoption on February 1, 2019[134] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2019[133] Future Outlook - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming periods[9] - No significant investments, acquisitions, or disposals of subsidiaries and associates during the first half of 2019[116] - No significant events affecting the group occurred after June 30, 2019, up to the date of this interim report[141]