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].
FSM HOLDINGS(01721) - 2019 - 年度财报