Financial Performance - The group's revenue decreased from approximately SGD 40.0 million in the year ended December 31, 2017, to approximately SGD 34.8 million in the year ended December 31, 2018, representing a decline of about 13.0%[8] - Gross profit fell from approximately SGD 7.4 million in the year ended December 31, 2017, to approximately SGD 5.6 million in the year ended December 31, 2018, consistent with the revenue decline[8] - Gross margin decreased from approximately 18.4% for the year ended December 31, 2017, to approximately 16.0% for the year ended December 31, 2018[8] - The group recorded a loss of approximately SGD 2.5 million for the year ended December 31, 2018, compared to a loss of approximately SGD 1.3 million for the year ended December 31, 2017, primarily due to increased administrative expenses and reduced government subsidies[8] - Revenue from human resource outsourcing services fell from approximately SGD 37.9 million to approximately SGD 33.5 million, a decrease of about 11.6%[15] - Revenue from human resource recruitment services decreased by approximately 40.0%, from SGD 2.0 million to SGD 1.2 million, primarily due to intense price competition[16] - Other human resource support services revenue declined by approximately 26.1%, from SGD 92,000 to SGD 68,000[18] - The company's gross profit decreased from approximately SGD 7.4 million to SGD 5.6 million, a decline of about 24.3%[20] - Administrative expenses increased by approximately 13.9%, from SGD 7.2 million to SGD 8.2 million, mainly due to professional fees and marketing expenses[22] - The company reported a loss of approximately SGD 2.5 million for the year ended December 31, 2018, compared to a loss of approximately SGD 1.3 million for the previous year, an increase of about 92.3%[27] Assets and Liabilities - As of December 31, 2018, the total assets of the group decreased to approximately SGD 21.0 million, down from SGD 23.6 million in 2017, while total equity decreased to approximately SGD 17.2 million from SGD 19.7 million[31] - The group's current assets reduced to approximately SGD 20.7 million from SGD 23.3 million in 2017, and current liabilities decreased to approximately SGD 3.8 million from SGD 3.9 million[31] - The group had cash and cash equivalents of approximately SGD 13.9 million, down from SGD 15.5 million in 2017, with a current ratio of approximately 5.5 compared to 6.0 in 2017[31] - The company has no significant investments or contingent liabilities as of December 31, 2018[29][30] - The group has no bank borrowings or amounts payable to a related company and a director as of December 31, 2018, compared to zero in 2017[31] Environmental and Social Responsibility - The company generated 64 tons of greenhouse gas emissions during the reporting period, an increase of 22 tons or 52.3% compared to the previous year[53] - The monthly electricity cost for the Hong Kong office was SGD 206 in 2017 and SGD 160 in 2018, indicating successful energy-saving measures[53] - The company does not produce any harmful wastewater and only consumes a small amount of water for employee hygiene needs[53] - The office activities primarily generate general office waste, with most being non-hazardous, although some hazardous waste like toner cartridges is collected by qualified vendors[53] - The company has implemented policies to ensure energy, water, and resource conservation, adhering to local environmental laws and regulations[50] - The increase in electricity consumption in 2018 was mainly due to the establishment of a new office for recruitment services and the full-year operation of the Hong Kong office[57] - The company encourages employees to use electricity efficiently and has invested in energy-saving tools and equipment[51] - There were no violations or penalties related to air emissions, waste disposal, or water discharge during the reporting period[54] - The company aims to maintain high ethical standards and comply with all relevant laws and regulations for sustainable development[49] - The management team regularly reviews and updates the environmental, social, and governance (ESG) report to address any identified issues[49] - The company reduced paper usage by 151,346 sheets or 28.2% in 2018 compared to 2017, totaling 384,335 sheets[58] - Energy consumption increased by 52% from 53,348 kWh in 2017 to 81,049 kWh in 2018[58] Employee and Labor Practices - As of December 31, 2018, the company employed a total of 1,454 employees, including 75 internal employees and 1,379 outsourced employees[65] - The gender distribution among outsourced employees was 62.4% male and 37.6% female[69] - The company has implemented safety rules and policies that comply with all relevant health and safety regulations in Singapore and Hong Kong[75] - The company continues to monitor the usage of electricity, water, and printing paper to fulfill its environmental responsibilities[59] - Employee compensation is determined based on current market levels, skills, qualifications, and experience[64] - The company maintains a mixed policy of external recruitment and internal promotion for job vacancies[64] - The company provides statutory benefits to all eligible employees, including social insurance and medical insurance[64] - The company provided collective hospitalization, surgical, and dental policies for all internal and outsourced employees in Singapore, complying with local regulations[76] - In 2018, the company reported 7 injury cases among outsourced employees in Singapore, an increase of 2 cases from 2017, with all injured employees covered by insurance[76] - The company implemented internal training programs, ensuring all new hires received onboarding training, with 188 internal employees trained in 2017 and 29 in 2018[77][80] - In 2018, 216 outsourced employees received external training, representing 16.5% of the total outsourced workforce, compared to 32.0% in 2017[80] - The company maintained a low sales return rate of 0.2% for outsourced services and 0.5% for recruitment services in 2018, indicating high service quality[84] - The company strictly adhered to labor laws and regulations, with no reported labor disputes or lawsuits in 2018[80] Corporate Governance - The board of directors consists of seven members, with four independent non-executive directors, exceeding the GEM listing rules requirement[104] - The company has adopted and complied with the corporate governance code, with a deviation from code provision A.2.1 disclosed in the annual report[95] - All directors received training on their duties and responsibilities, with a summary of training types provided for each director[107] - The board held five meetings during the year, with all executive directors attending all meetings[110] - The company adopted a dividend policy effective from January 1, 2019, outlining principles for declaring and paying dividends based on net profits[113] - The audit committee, consisting of four independent non-executive directors, reviewed the consolidated financial statements for the year ending December 31, 2018, ensuring compliance with applicable accounting standards and regulations[121] - The board has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee specific aspects of the company's affairs[117] - The board believes that having the same individual serve as both chairman and CEO ensures consistent leadership and effective strategic planning[116] - The company is committed to board diversity, considering various factors such as gender, age, ethnicity, and professional experience in director appointments[112] - The board will review the dividend policy periodically, taking into account financial performance, cash flow, and other relevant factors[119] - The company has engaged an external independent consulting firm for internal audit functions, including risk assessment and internal control reviews[120] - The board's decision-making process includes considering the interests of shareholders and any restrictions on dividend payments[119] Business Development and Strategy - The company’s main business development and strategic planning are overseen by the executive directors, who have extensive experience in the human resources outsourcing and recruitment industry[152][154] - The Chief Financial Officer has over 16 years of experience in accounting, financial management, and restructuring, having worked with several listed companies[156][158] - The company has a strong management team with diverse backgrounds in finance, marketing, and business development[170] - The company is involved in investment and merger activities, with significant experience in equity and bond financing[168] - The company has been expanding its market presence through strategic planning and business development initiatives[170] - The management team includes individuals with extensive experience in sales and operational management[170] - The company is focused on enhancing its corporate services, including financial management and human resources[170] - The company has a commitment to developing new products and technologies to enhance its market offerings[170] Financial Activities and Shareholder Relations - The company raised approximately HKD 434 million (about SGD 77 million) from the share offering, after deducting listing-related expenses[183] - As of December 31, 2018, the company utilized HKD 137 million (approximately 48.5% of the raised funds) for various business objectives, with HKD 65 million allocated to expanding HR outsourcing and recruitment services in Singapore[185] - The remaining net proceeds as of December 31, 2018, were held in interest-bearing deposits in banks in Singapore and Hong Kong[186] - The company reported a decrease in distributable reserves to approximately SGD 14.76 million as of December 31, 2018, down from SGD 17.27 million in 2017[194] - The board does not recommend the payment of a final dividend for the year, consistent with the previous year[181] - The company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2018[192] - The company plans to continue upgrading its current IT systems and exploring advanced technology systems to support business operations[185] - The company has faced challenges in hiring suitable employees at reasonable salary levels for expanding its HR services in Singapore and Hong Kong[185] - The company’s market promotion activities have successfully enhanced its brand awareness[185] - The company’s main business involves providing HR outsourcing and recruitment services through its subsidiaries[178] Client and Supplier Relations - Over 90% of the company's client base consists of public sector clients in Singapore, with the top five clients accounting for approximately 52.3% of total revenue, up from 47.3% in 2017[196] - The largest single client contributed 16.4% to total revenue, an increase from 14.9% in 2017[196] - There were no major suppliers for the company this year, consistent with the previous year[197] - Related party transactions were disclosed in Note 27 of the consolidated financial statements, and did not constitute related transactions requiring disclosure under GEM Listing Rules[198] - The company entered into a shared services agreement with BGC Indonesia and BGC Malaysia, with the controlling shareholder owning approximately 49.0% and 49.5% of these entities, respectively[200] - The shared services agreement covers the provision of financial, human resources, and administrative services from June 21, 2017, to December 31, 2019[200] - A referral agreement was established with BGC Malaysia to facilitate candidate referrals between the companies during the same period[200]
中安控股集团(08462) - 2018 - 年度财报