Financial Performance - The group's revenue decreased by 18.8% from approximately SGD 10,475,000 in 2018 to approximately SGD 8,501,000 in 2019[13]. - Gross profit for the year was approximately SGD 1,987,000, down from SGD 4,119,000 in 2018, resulting in a gross margin decline from 39.3% to 23.4%[19]. - The group recorded a net loss of approximately SGD 1,587,000 for the year, compared to a profit of approximately SGD 884,000 in 2018[19]. - The group's revenue for the fiscal year ended December 31, 2019, was approximately SGD 8,501,000, a decrease from SGD 10,475,000 in 2018, with a net loss of SGD 1,587,000[32][33]. - Total revenue for the year ended December 31, 2019, was SGD 8,500,700, a decrease of 18.9% from SGD 10,474,896 in 2018[162]. - Gross profit for 2019 was SGD 1,987,398, down 51.7% from SGD 4,119,042 in the previous year[162]. - The company reported a net loss of SGD 1,586,829 for 2019, compared to a profit of SGD 884,396 in 2018[162]. - The company recognized other income of SGD 188,633 in 2019, an increase from SGD 126,908 in 2018, reflecting a growth of 48.7%[162]. - The company reported a pre-tax loss of SGD 1,627,175 in 2019, compared to a profit of SGD 1,203,835 in 2018, indicating a significant decline in performance[169]. Revenue and Income Sources - The decrease in revenue was primarily attributed to a reduction in public sector income of approximately SGD 1,918,000 due to the lack of new high-value contracts[19]. - The group experienced a decrease in public sector revenue by SGD 1,918,000 due to the absence of new high-value contracts to replace those that were expiring[33]. - Other income and losses included an expected credit loss provision of approximately SGD 533,000 and a foreign exchange loss of approximately SGD 83,000 due to the depreciation of the Hong Kong dollar against the Singapore dollar[19]. Expenses and Liabilities - Selling and administrative expenses were approximately SGD 3,161,000, slightly up from SGD 3,159,000 in 2018[20]. - The expected credit loss provision and reduced gross profit were major contributors to the pre-tax loss of approximately SGD 1,627,000 for the year[20]. - The group had borrowings of approximately SGD 3,280,000 in property loans and SGD 291,000 in lease liabilities as of December 31, 2019[22]. - The company's total liabilities increased significantly, with non-current liabilities rising to SGD 3,065,979 in 2019 from SGD 269,971 in 2018[163]. Cash Flow and Financial Position - As of December 31, 2019, the group's cash and cash equivalents decreased by approximately SGD 3,517,000, resulting in a total of SGD 7,629,000 compared to SGD 11,147,000 in 2018[21]. - The company had cash and cash equivalents of SGD 7,629,334 as of December 31, 2019, down from SGD 11,146,677 in 2018, a decrease of 31.5%[163]. - The company experienced a net cash outflow of SGD 3,446,068 in cash and cash equivalents for the year, compared to an increase of SGD 770,391 in 2018[170]. - The net cash used in operating activities was SGD 833,583 in 2019, a decrease from SGD 1,195,718 in 2018[170]. Governance and Compliance - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the GEM Listing Rules for the year ended December 31, 2019[47]. - The company has three independent non-executive directors, constituting more than one-third of the board, ensuring compliance with GEM Listing Rules[52]. - The company’s governance practices were reviewed and found to comply with the corporate governance code for the year ended December 31, 2019[46]. - The audit committee's responsibilities include providing independent opinions on the effectiveness of financial reporting procedures and internal controls[54]. - The board is responsible for maintaining an effective risk management and internal control system to protect shareholder investments[69]. Risk Management - The group has established a risk management framework that provides reasonable assurance against foreseeable adverse events impacting business objectives[72]. - The company has implemented key control measures to manage and monitor credit risk, ensuring the effectiveness of these controls[149]. - The company has no foreign exchange hedging policy but continuously monitors its exposure to currency fluctuations, particularly between HKD and SGD[92]. Shareholder Information - The company has a total of 983,440,000 shares held by executive director Chen Tianji, representing approximately 30.73% of the issued share capital[119]. - Major shareholder Absolute Truth Investments Limited also holds 983,440,000 shares, accounting for 30.73% of the issued share capital[121]. - The company confirms that at least 25% of its issued share capital is held by the public[128]. Future Outlook - The group anticipates facing significant challenges in 2020 due to decreased market demand, intense bidding price competition, and rising material costs[14]. - The group plans to continue managing its expenses and reviewing its business strategies to respond to the current market environment[15]. - The group aims to seek opportunities cautiously in light of the challenging market conditions[15]. Legal and Regulatory Matters - The company reported a potential legal claim amounting to SGD 1,007,540 related to a negligent misrepresentation by its subsidiary, with a high likelihood of a successful defense[89]. - The company has not identified any significant violations of applicable laws and regulations that would materially impact its business operations[108]. - The company has not experienced any significant disputes with business partners, suppliers, or customers during the year[109].
吉辉控股(08027) - 2019 - 年度财报