Financial Performance - The company's revenue decreased from SGD 16,487,000 to SGD 6,185,000 for the year ended December 31, 2020, representing a decline of approximately 62.5%[10] - Shareholder profit attributable dropped from approximately SGD 3,761,000 to about SGD 173,000, a decrease of around 95.4%[10] - The revenue from the passenger car leather segment decreased by approximately 64.6%[10] - The revenue from the passenger car accessories segment decreased by approximately 61.8%[10] - Total revenue for the year ended December 31 was approximately SGD 6.185 million, a decrease of 62.5% from SGD 16.487 million in the previous year[27] - Gross profit decreased by approximately SGD 4.721 million or 71.7% to about SGD 1.859 million, with a gross margin of 30.1% compared to 39.9% in the previous year[28] - Net profit for the year was approximately SGD 173,000, a decrease of 92.3% from SGD 2.239 million in the previous year[35] - Other income increased to approximately SGD 438,000 from SGD 160,000, primarily due to government support related to COVID-19[29] Operational Changes - The company launched an e-commerce platform in October 2020[19] - The company plans to renovate existing warehouses by the end of 2021[17] - The company is actively enhancing sales and marketing efforts to improve brand awareness and customer relationships[19] - The company has implemented logistics management to improve operational efficiency[17] - The company has extended the lease agreements for properties, with the current leases set to expire in October 2022[17] Assets and Liabilities - The company’s current assets net amount was approximately SGD 21.547 million as of December 31, 2020, compared to SGD 21.147 million in 2019, with cash and bank balances of about SGD 20.639 million[39] - The current ratio improved to approximately 18.7 times as of December 31, 2020, compared to 9.7 times in the previous year[39] - The company has no debt as of December 31, 2020, and did not incur any borrowing costs during the year[39] - Total assets pledged as collateral for bank financing amounted to SGD 502,711 as of December 31, 2020, down from SGD 545,285 in 2019[59] Employee and Cost Management - As of December 31, 2020, total employee costs amounted to approximately SGD 2,475,000, a decrease from SGD 2,939,000 in 2019[55] - The company has 47 employees as of December 31, 2020, down from 57 in 2019, including 4 executive directors[55] - Sales and distribution expenses decreased to approximately SGD 378,000 from SGD 443,000, mainly due to reduced employee benefits and travel expenses[33] - Administrative expenses decreased to approximately SGD 1.539 million from SGD 3.337 million, primarily due to one-time listing expenses in 2019[34] Governance and Management - The company has a strong management team with independent non-executive directors who bring diverse expertise in finance, technology, and corporate governance[75][81] - The board includes members with significant experience in various sectors, enhancing the company's ability to adapt to market changes and seize new opportunities[80] - The company emphasizes the importance of financial management and strategic decision-making in driving business growth and operational efficiency[85] - The independent directors contribute to the company's governance and strategic direction, ensuring accountability and transparency in operations[75][81] - The board of directors has complied with the listing rules, ensuring at least three independent non-executive directors are present[96] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with all relevant provisions[94] - The board is responsible for managing overall risks related to the business and guiding the company's strategy[94] - The company has established an audit committee to review and supervise financial reporting procedures and internal control systems[124] - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with defined terms of reference[112] - The company has provided information regarding changes in listing rules to ensure compliance and enhance awareness of good corporate governance practices[111] Shareholder Communication and Dividends - The company is committed to maintaining effective communication with shareholders and potential investors, including annual general meetings and timely disclosures[132] - The board does not recommend a final dividend for the year, consistent with the previous year[63] - The company has a dividend policy that considers cash flow, earnings stability, and future investment needs when determining dividend payments[152][153] Market and Strategic Focus - The company is focused on expanding its market presence in Southeast Asia through strategic partnerships and technological advancements in integrated communication solutions[76] - The company aims to leverage its expertise in finance and technology to improve service offerings and customer satisfaction in the competitive market[85] Risk Management - The company faced a potential foreign exchange risk, with a possible impact of SGD 70,000 on after-tax profits if foreign currencies depreciate or appreciate by 10%[60] - The board is responsible for overseeing and managing overall risks related to the company's business, ensuring compliance with safety and health regulations[123] Miscellaneous - The company made charitable and other donations amounting to SGD 150 in the current year, a significant decrease from SGD 3,350 in 2019[147] - The auditor's fee for the current year was approximately SGD 80,000 for audit services, with no non-audit services provided[130][131] - The company has not entered into any stock-linked agreements that would lead to the issuance of shares during the year[154] - The company has not engaged in any significant transactions or contracts with its directors that would create a conflict of interest during the fiscal year[174]
万马控股(06928) - 2020 - 年度财报