Financial Performance - The group's revenue increased from approximately SGD 36.7 million for the year ended December 31, 2019, to approximately SGD 51.7 million for the year ended December 31, 2020, representing a growth of about 40.9%[8] - The gross profit rose from approximately SGD 5.7 million to approximately SGD 5.9 million, with a gross profit margin decreasing from about 15.6% to approximately 11.3% due to adjustments in business strategy to cope with market competition[8] - The group recorded a profit of approximately SGD 0.2 million for the year ended December 31, 2020, compared to a loss of approximately SGD 1.2 million for the year ended December 31, 2019, primarily due to reduced administrative expenses and increased government subsidies[8] - Revenue from human resource outsourcing services increased from approximately SGD 35.3 million to approximately SGD 51.1 million, a rise of about 44.8%[14] - Revenue from human resource recruitment services decreased from approximately SGD 1.4 million to approximately SGD 0.6 million[13] - Revenue from human resources recruitment services decreased by approximately SGD 0.8 million or 57.1% to about SGD 0.6 million for the year ended December 31, 2020, primarily due to the impact of the pandemic[16] - Revenue from other human resources support services decreased by approximately SGD 14,000 or 50.0% to about SGD 14,000 for the year ended December 31, 2020, mainly due to a reduction in referral and secondment services[17] - Service costs increased by approximately SGD 14.8 million or 47.7% to about SGD 45.8 million for the year ended December 31, 2020, driven by an increase in labor costs[18] - Other income increased by approximately SGD 735,000 or 432.4% to about SGD 905,000 for the year ended December 31, 2020, mainly due to government subsidies related to COVID-19[20] - Administrative expenses decreased by approximately SGD 0.6 million or 8.7% to about SGD 6.3 million for the year ended December 31, 2020, due to reduced internal employee costs[21] - The profit for the year ended December 31, 2020, was approximately SGD 232,000, an increase of about SGD 1.4 million or 116.7% compared to a loss of approximately SGD 1.2 million for the year ended December 31, 2019[24] - Total assets increased to approximately SGD 32.0 million as of December 31, 2020, compared to about SGD 20.2 million as of December 31, 2019[29] - Cash and cash equivalents amounted to approximately SGD 19.3 million as of December 31, 2020, up from about SGD 12.7 million as of December 31, 2019[29] Business Strategy and Opportunities - The company is actively exploring new business opportunities to expand its operations in different regions, including a memorandum of understanding with Zhong An Holdings Group (Shenzhen) Co., Ltd. for potential business collaboration[11] - The company aims to achieve sustainable business growth and long-term benefits for shareholders by seizing various market opportunities[12] - The company aims to strengthen its position in the Singapore human resources industry while expanding its business in Hong Kong[44] - The company is one of the largest operators providing human resource outsourcing and recruitment services to public sector clients in Singapore[43] - The overall business development strategy has been focused on expanding into the Asia-Pacific region, particularly in Singapore, Malaysia, Thailand, Taiwan, and China[182] - The company is exploring potential business collaborations with Shenzhen Kaiwen Technology Co., Ltd., which may lead to new market opportunities[176] - The management team is actively pursuing mergers and acquisitions to enhance market presence and service capabilities[182] Environmental, Social, and Governance (ESG) Initiatives - The company has implemented energy-saving measures to reduce indirect carbon emissions, including using energy-efficient equipment and encouraging public transport[53] - The company emphasizes compliance with environmental, social, and governance (ESG) guidelines and aims to create value for stakeholders[42] - The company has committed to maintaining high ethical standards and minimizing negative environmental impacts[44] - The company does not produce or release harmful pollutants or wastewater due to its operations being conducted in a typical office environment[52] - The management team is responsible for executing approved ESG policies and monitoring compliance and performance[50] - The company's indirect carbon emissions amounted to approximately 12.64 tons during the reporting period, a reduction of about 79% compared to the previous year[56] - Electricity consumption decreased by 60% to 30,936 kWh in 2020, with a per-employee consumption of 533.4 kWh, down 56.6% from 2019[60] - The total usage of printing paper was 100,701 sheets in 2020, a decrease of 223,635 sheets or approximately 69% compared to the previous year[61] - The company aims to reduce electricity consumption by an additional 1.5% in the coming year[61] - The company has implemented various policies to reduce indirect carbon emissions and water consumption in the upcoming year[66] - The company has not received any fines or warnings related to waste disposal or emissions during the reporting period[57] - The company continues to encourage employees to use resources responsibly, including electricity and water[67] - The company has established clear environmental policies aimed at achieving pollution-free operations and conserving scarce resources[59] - The management team recognizes global warming and freshwater conservation as critical climate issues affecting operational costs[65] - The company has committed to monitoring resource usage and investing in modern technologies to promote energy and resource conservation[64] Employee and Workforce Management - The company employed a total of 1,714 employees as of December 31, 2020, which includes 59 internal employees and 1,655 outsourced employees[73] - The number of internal employees decreased from 63 at the beginning of 2020 to 58 by the end of 2020, indicating minimal change[85] - The company adheres to local employment laws in Singapore and Hong Kong, including the Employment Act and the Central Provident Fund Act in Singapore, and the Employment Ordinance and Mandatory Provident Fund Schemes Ordinance in Hong Kong[70] - All eligible employees are provided with statutory benefits, including Central Provident Fund, Mandatory Provident Fund, social insurance, and medical insurance[70] - The company has implemented a mixed policy of external recruitment and internal promotion for job vacancies, ensuring equal opportunity for all applicants[70] - The company has maintained compliance with all employee-related responsibilities, including salary payments and health benefits, with no disputes or violations reported[85] - The company emphasizes a safe working environment and has implemented safety rules and policies in accordance with local health and safety regulations[86] - The company promotes a fair and just work environment, encouraging open communication and innovation among employees[73] - Employee compensation is determined based on current market levels, skills, qualifications, and experience[70] - The company has a total of 1,311 employees in 2019, showing an increase in workforce in 2020[73] - The company provided employee compensation insurance for all internal and outsourced employees in Singapore, complying with local regulations[87] - There were four injury cases reported among outsourced employees in Singapore during the 2020 reporting period, a decrease of one case compared to 2019, with a total of 15 lost workdays recorded[88] - The percentage of trained internal employees decreased from 33.33% in 2019 to 26.25% in 2020, while trained outsourced employees increased from 0% to 26.09%[92] - Average training hours per employee dropped significantly, with internal employees receiving 0.14 hours and outsourced employees receiving 0.18 hours in 2020, compared to 0.37 hours for internal employees in 2019[95] - The company plans to continue providing internal and external training programs to enhance employee skills in response to competitive pressures in the outsourcing industry[96] - The company maintained compliance with all relevant labor laws and regulations, with no reports of labor disputes or lawsuits during the 2020 reporting period[96] Corporate Governance - The board of directors consists of eight members, including four independent non-executive directors, exceeding the GEM listing rules requirement[118] - The company has adopted and complied with the corporate governance code as per GEM listing rules, with a noted deviation from one specific provision[108] - The company has taken appropriate insurance coverage for potential legal actions faced by directors[119] - The board held 13 meetings during the year, with an average attendance rate of 92.3% among directors[125] - Chairman and CEO Mr. Zhou Zhijian attended all 13 meetings, demonstrating full engagement in governance[125] - The company adopted a board diversity policy, emphasizing the importance of diverse skills and experiences among board members[127] - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[132] - All directors received training on their duties and responsibilities, ensuring they are well-informed about governance practices[124] - The company has confirmed that there are no direct or indirect competitive businesses held by directors or major shareholders[126] - The company encourages directors to participate in relevant training courses, with costs covered by the company[124] - The board is committed to reviewing its governance practices regularly to ensure compliance with applicable rules and regulations[131] - The company believes that having the same individual serve as both Chairman and CEO ensures consistent leadership and effective strategic planning[131] - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the year ended December 31, 2020, ensuring compliance with applicable accounting standards and GEM listing rules[136] - The remuneration committee held five meetings during the year to review and recommend the remuneration packages for directors and senior management[138] - The nomination committee conducted seven meetings to assess the board's structure and evaluate the independence of non-executive directors[141] - The company has established a governance framework to ensure compliance with legal and regulatory requirements[143] Shareholder Communication and Policies - The company has adopted a shareholder communication policy to ensure equal and timely access to information for shareholders[164] - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[160] - The company has not made any changes to its memorandum and articles of association during the year[166] - The revised and restated memorandum and articles of association have been published on both the stock exchange and the company's website[167] - The company has a dividend policy in place since January 1, 2019, which outlines principles for declaring and paying dividends based on net profits[128] - The board considers various factors, including financial performance and cash flow, when proposing dividends[134] - The company can declare dividends in cash or other forms deemed appropriate by the board[134] - Any unclaimed dividends will be forfeited and returned to the company according to its articles of association[134] Audit and Internal Control - The board of directors is responsible for establishing and maintaining the internal control system to safeguard shareholder investments and group assets[154] - The internal control system aims to facilitate effective and efficient operations while minimizing risks faced by the group[154] - The company has not established an independent internal audit department but has appointed an external consulting firm for annual reviews of the internal control system[154] - The audit committee reviewed the internal audit function and corporate governance compliance for the year ended December 31, 2020[136] - The independent auditor, Guowei CPA Limited, was engaged to provide audit and non-audit services, with total fees amounting to SGD 142,000 for audit services[150] Business Overview - The company is primarily engaged in providing human resource outsourcing and recruitment services[199] - The group reported its annual performance for the year ending December 31, 2020, along with audited consolidated financial statements[197] - The company was listed on GEM on July 17, 2017, after a public offering of 15,000,000 shares and a placement of 135,000,000 shares[198] - The business review for the year is detailed in the "Chairman's Report" and "Management Discussion and Analysis" sections of the annual report[200]
中安控股集团(08462) - 2020 - 年度财报