Company Overview - Kinergy Corporation specializes in electronic manufacturing services for semiconductor equipment, with operations in Singapore, China, and the Philippines[6]. - The company reported a focus on low-volume, high-mix production, indicating a diverse range of products tailored to specific customer needs[6]. - Kinergy's original design manufacturing division produces automation equipment, precision tools, and components primarily for the semiconductor industry[8]. - The company operates manufacturing and service facilities in Singapore, China, and the Philippines, with marketing offices in Japan and Malaysia[12]. - Kinergy's product offerings include subsystems, complete machines, and parts for various electronic industries, including medical analysis and industrial equipment[6]. Quality Management - The company has achieved ISO 9001:2015 certification for its quality management system, ensuring high-quality and cost-effective product delivery[12]. - The company emphasizes continuous improvement and resource investment to maintain effective quality management systems[12]. - The company has implemented a quality assurance process throughout procurement, production, and delivery, ensuring compliance with the China Product Quality Law[181]. - The company’s production facilities in Singapore and Nantong have been certified under ISO 9001:2015 quality management system[181]. - The company conducts annual audits of approved suppliers to ensure compliance with social and environmental performance standards[185]. - The company has a one-year warranty for craftsmanship defects on products provided to customers[184]. - The company has established a supplier quality engineering team responsible for supplier qualification assessments[185]. - The company protects customer intellectual property rights in accordance with the Patent Laws of China and Singapore[186]. - The company has a policy in place to ensure that materials used in products do not originate from conflict regions, supporting compliance with the Dodd-Frank Act[185]. Financial Performance - The company's revenue increased by 5.0% to approximately SGD 71.0 million for the fiscal year 2020, compared to SGD 67.6 million in 2019[30]. - The annual loss rose from approximately SGD 1.6 million in 2019 to SGD 2.8 million in 2020, primarily due to weakened customer demand caused by COVID-19[30]. - Gross profit from the original design manufacturing segment decreased by approximately SGD 2.0 million, while R&D expenses increased by approximately SGD 0.5 million, contributing to the annual loss[30]. - The company reported a gross profit of SGD 6.5 million for the fiscal year 2020, down from SGD 8.5 million in 2019[20]. - The company's net loss for the year was approximately SGD 2.8 million, an increase from a net loss of SGD 1.6 million in the previous year, mainly due to reduced gross profit in the original design manufacturing segment[36]. - The total equity attributable to equity holders of the parent company was SGD 87.4 million as of December 31, 2020[18]. - The company anticipates strong demand in 2021, driven by investments made to enhance capabilities and attract new customer segments[40]. Investments and Joint Ventures - The company established a joint venture named KinerTec (Nantong) Co. Ltd. with Techcom Technology Pte Ltd to develop new manufacturing capabilities for precision machinery frames and metal plates[31]. - The company acquired a 51.03% stake in Shanghai Guangkong Puyan Equity Investment Management Co., Ltd., a private equity fund manager, to diversify its revenue and enhance synergy with its main business[31]. - The company made strategic investments, including a joint venture with Techcom Technology to establish a new company focused on precision machinery manufacturing, holding a 60% stake[37]. - The company also invested approximately SGD 10.42 million in Guang控浦燕, acquiring about 51.03% equity, aiming to create synergies in high-end equipment and semiconductor sectors[38]. Management and Governance - The company has a strong management team with diverse backgrounds in finance, investment, and business development[98]. - The management team includes individuals with significant experience in both local and international markets, contributing to strategic decision-making[92]. - The board of directors includes independent members with extensive experience in finance and risk management, ensuring robust governance[95]. - The company emphasizes continuous professional development and training for its directors and senior management[140]. - The board consists of nine members, including four executive directors and three independent non-executive directors, ensuring a diverse and effective governance structure[132]. - The company has adhered to all provisions of the Corporate Governance Code for the year ending December 31, 2020[129]. Employee and Social Responsibility - The company employed a total of 486 full-time employees as of December 31, 2020, across Singapore and Nantong[188]. - The gender distribution of employees is 63% male (305) and 37% female (181)[190]. - Employee age distribution shows 20% (97) are 30 years or younger, 20% (98) are between 30 to 40 years, 36% (176) are between 41 to 50 years, and 24% (115) are 50 years or older[192]. - The company is committed to providing competitive compensation, medical insurance, and other benefits to its employees[200]. - The company ensures equal opportunities for all applicants regardless of race, religion, or age[200]. - The company emphasizes corporate social responsibility and engages in community activities to promote sustainable development[172]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 15%[109]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative semiconductor technologies[109]. - The company is expanding its market presence in Asia, targeting a 25% increase in market share within the next two years[109]. - The company plans to enhance its digital marketing strategies, aiming for a 40% increase in online engagement[109]. - The company is actively pursuing opportunities for market expansion and potential acquisitions to strengthen its competitive position[112].
精技集团(03302) - 2020 - 年度财报