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]
冠轈控股(01872) - 2019 - 年度财报