Financial Performance - The group's revenue decreased by approximately SGD 2.2 million or -10.7% to about SGD 20.4 million for the year ended December 31, 2020, down from approximately SGD 22.6 million for the year ended December 31, 2019[9]. - The group recorded a profit of approximately SGD 1.1 million for the year ended December 31, 2020, compared to a loss of approximately SGD 1.2 million for the year ended December 31, 2019[9]. - The profit increase was primarily due to an increase in other income of approximately SGD 2.1 million, including about SGD 1.0 million from government subsidies[9]. - The group experienced a decrease in gross profit of approximately SGD 0.6 million due to reduced revenue during the year[10]. - The group's revenue decreased by approximately SGD 2.2 million or -10.7% to approximately SGD 20.4 million for the year ended December 31, 2020, primarily due to reduced earnings in the Singapore and China markets[20]. - Other income increased by approximately SGD 2.1 million, with about SGD 1.0 million derived from government subsidies and SGD 0.9 million from debt exemptions in the Singapore and China markets[27]. - Total revenue for the year ended December 31, 2020, was SGD 20,421,000, a decrease from SGD 22,603,000 in the previous year, representing a decline of approximately 9.6%[200]. - The company reported a pre-tax profit of SGD 1,145,000, compared to a pre-tax loss of SGD 1,235,000 in the previous year, indicating a significant turnaround[200]. - Net profit for the year was SGD 1,078,000, recovering from a net loss of SGD 1,237,000 in the previous year[200]. - Basic earnings per share for 2020 was SGD 0.05, compared to a loss per share of SGD 0.06 in 2019, reflecting improved profitability[200]. - Other income and gains increased to SGD 2,594,000 from SGD 480,000, showing a substantial growth of over 440%[200]. Operational Highlights - The total number of vehicles in Singapore as of December 31, 2020, was 1 million, an increase from 973,101 vehicles in 2019[10]. - The company aims to expand services and products in the Singapore and China markets despite uncertainties caused by the COVID-19 pandemic[10]. - The company has implemented a business continuity plan to minimize operational disruptions during the COVID-19 outbreak[10]. - The company remains optimistic about growth opportunities despite macroeconomic and geopolitical headwinds[11]. - The company plans to leverage its strengths in service, brand, and talent to maintain competitiveness and gain market share from competitors in Singapore[10]. - The group aims to maintain its leadership position in the Singapore passenger car market by retaining existing customers and acquiring new ones through loyalty programs[18]. - The Singapore government plans to increase the number of electric vehicle charging stations from approximately 2,000 to 60,000 by 2030, which may influence future market dynamics[17]. - The group is collaborating with partners in China to develop a C2N business model for smart shared mobility, with approximately 2,000 private cars registered across multiple cities[18]. - The group will continue to pursue technological advancements in maintenance equipment and new car engine types to enhance service capabilities[18]. Financial Stability - As of December 31, 2020, the cash and bank balances were approximately SGD 1.7 million, an increase from SGD 1.1 million as of December 31, 2019[28]. - The net cash flow from operating activities for the year was approximately SGD 1.8 million, primarily due to a decrease in trade receivables and other receivables[29]. - The debt-to-equity ratio as of December 31, 2020, was 0.6, down from 0.8 as of December 31, 2019, indicating improved financial stability[30]. - The company has maintained a policy to keep the debt-to-equity ratio at a reasonable level, reflecting prudent financial management[30]. - The company has no significant contingent liabilities as of December 31, 2020, consistent with the previous year[37]. - The long-term loans were secured by legal mortgages on properties owned by the company, with a book value of approximately SGD 2.2 million as of December 31, 2020[33]. - The company has a stock option plan that allows for the issuance of up to 200,000,000 shares, which is 10% of the total issued shares as of the report date[135]. - The company has established a remuneration committee to review the compensation policy based on performance and market practices[144]. Corporate Governance - The company emphasizes high standards of corporate governance, which is crucial for sustainable growth and maximizing shareholder value[58]. - The company has not separated the roles of chairman and CEO, believing that this structure ensures effective leadership and decision-making[58]. - Independent non-executive directors are expected to attend shareholder meetings to understand shareholder opinions, although some were absent due to prior business commitments[59]. - The company has adopted and complied with all applicable principles of the corporate governance code as of December 31, 2020[59]. - The company has adopted a board diversity policy, emphasizing diversity in gender, age, culture, education background, professional experience, skills, and knowledge[60]. - The nomination committee is responsible for reviewing and monitoring the implementation of the board diversity policy to ensure its effectiveness[61]. - The board is responsible for significant transactions, including acquisitions, investments, and capital expenditures, to enhance shareholder value[69]. - The company has maintained compliance with GEM listing rules by appointing at least three independent non-executive directors, constituting one-third of the board[74]. - The board has established a written guideline for the nomination committee to identify qualified candidates for board membership, ensuring a balance of skills and experience[62]. - The company’s independent non-executive directors have confirmed their independence according to GEM listing rules, ensuring compliance with governance standards[74]. - The board is tasked with overseeing the company's overall management and ensuring the implementation of strategic plans[68]. - The company has a code of conduct for directors regarding securities trading, ensuring adherence to established standards[65]. - The board conducts regular informal meetings to leverage the experience and expertise of non-executive directors in strategic matters[70]. - The Audit Committee held 4 meetings during the year ended December 31, 2020, reviewing the group's quarterly, interim, and annual financial performance[75]. - The Remuneration Committee conducted 2 meetings, recommending discretionary bonuses for executive directors and senior management for the fiscal year 2019[78]. - The Nomination Committee held 2 meetings, assessing the independence of independent non-executive directors and recommending the reappointment of retiring directors at the annual general meeting[79]. - The Risk Management Committee convened 1 meeting, reviewing the internal audit report and annual audit plan[80]. - The board of directors and committees maintained high attendance, with executive directors attending 100% of board meetings[86]. - The company ensured compliance with GEM listing rules and provided ongoing training for directors to enhance their knowledge and skills[85]. - The company adopted appropriate accounting standards and practices, ensuring transparency in financial reporting[75]. - The company recommended the reappointment of Ernst & Young as the independent auditor at the annual general meeting[75]. - The company emphasized the importance of internal controls and risk management in its governance practices[80]. - The company is committed to maintaining good corporate governance standards as per the corporate governance code[82]. - The board of directors is responsible for preparing financial statements that fairly reflect the group's business status, with no known significant uncertainties affecting the company's ability to continue as a going concern[89]. - The auditor's fees for the year ended December 31, 2020, amounted to SGD 213,000 for audit services, with no fees for non-audit services[91]. - The company faced delays in publishing its interim and quarterly results due to the COVID-19 pandemic, with the interim results for the six months ended June 30, 2020, published on August 26, 2020, and the third-quarter results for the nine months ended September 30, 2020, published on October 7, 2021[90]. - The board has established policies and procedures to identify, assess, and manage significant risks, ensuring the effectiveness of the risk management and internal control systems[94]. - The company has not established a corporate governance committee, and the board is responsible for corporate governance functions, including policy formulation and compliance monitoring[93]. - Shareholders have the right to request the board to convene a special general meeting if they hold at least 10% of the paid-up capital[99]. - The company secretary is responsible for ensuring compliance with board procedures and maintaining detailed meeting records[95]. - The company adopted its revised articles of association in April 2019, with no significant changes during the year ended December 31, 2020[105]. - The company emphasizes the importance of compliance with insider trading policies and keeping employees informed of regulatory updates[94]. Risk Management - The business is significantly affected by its reputation and consumer perception of service quality, with potential negative publicity posing a major risk[110]. - Regulatory factors in Singapore, such as the Certificate of Entitlement (COE) system, may adversely impact the demand for the company's services[111]. - The company has established a healthy and safe working environment for employees, with no reported strikes or workplace accidents during the review year[156]. - The company has not entered into any stock-linked agreements during the year ended December 31, 2020, aside from its share option scheme[166]. - The audit committee reviewed the accounting principles adopted by the company and discussed internal controls and financial reporting matters for the year ended December 31, 2020[168]. - The company confirmed the independence of all independent non-executive directors in accordance with GEM listing rules[163]. - The company extended a term loan of SGD 1.5 million for six months to Funding Societies Pte Ltd on January 20, 2021[164]. - As of December 31, 2020, trade receivables amounted to SGD 1,387,000, with an expected credit loss provision of SGD 293,000, representing 7% of the total assets[180]. - The group's third-party loans receivable totaled SGD 1,596,000 as of December 31, 2020, with no expected credit loss provision made, accounting for 8% of total assets[180]. - The inventory as of December 31, 2020, was valued at SGD 1,236,000, with an obsolete inventory provision of SGD 383,000[181]. - The management's assessment of the obsolete inventory provision involves significant judgment and estimation, impacting the financial statements[181]. - The audit process included evaluating the adequacy of provisions for trade receivables and third-party loans, which are considered critical audit matters due to their significance[182]. - The financial statements were prepared in accordance with International Financial Reporting Standards and reflect a true and fair view of the group's financial position as of December 31, 2020[175]. - The independent auditor's report confirmed that the financial statements were free from material misstatement due to fraud or error[192]. - The group has established a provision matrix based on historical credit loss experience to calculate expected credit losses for trade receivables and third-party loans[180]. - The management's assumptions and estimates used in determining the historical loss rates and considering forward-looking factors were evaluated during the audit[182]. - The financial disclosures related to trade receivables and inventory provisions are detailed in the notes to the consolidated financial statements[180][181]. Shareholder Information - The group reported that the sales from the top five customers accounted for approximately 15.8% of total sales for the year ended December 31, 2020, with the largest customer contributing about 5.6%[113]. - The procurement amount from the top five suppliers represented approximately 31.3% of total procurement for the year ended December 31, 2020, with the largest supplier accounting for 7.9%[113]. - The board proposed no dividend for the year ended December 31, 2020, consistent with the previous year[115]. - The company has not made any significant charitable donations during the year ended December 31, 2020, similar to the previous year[116]. - The company operates primarily in the passenger vehicle service industry, providing maintenance, modification, and extended warranty services[109]. - The company did not engage in any related party transactions that met the definition of connected transactions under GEM Listing Rules during the year[145]. - The company has no unexercised stock options or similar rights as of December 31, 2020[138]. - The company maintained compliance with GEM listing rules regarding public float since its listing date[147]. - There were no significant acquisitions or disposals related to subsidiaries or associates during the year ended December 31, 2020[160]. - The company did not enter into any non-exempt connected transactions or continuing connected transactions during the year ended December 31, 2020[146]. - The company has adhered to local laws and regulations, with no significant violations reported during the year[153].
中食民安(08283) - 2021 - 年度财报