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].
FSM HOLDINGS(01721) - 2018 - 年度财报