Revenue Performance - The company's revenue for the fiscal year ended December 31, 2019, was SGD 16.6 million, a decrease of approximately SGD 1.4 million from SGD 18.0 million in the fiscal year 2018[22]. - The decline in revenue was primarily due to a decrease of approximately SGD 1.0 million in the automotive after-sales service revenue from warranty repair services[22]. - The group's revenue for the fiscal year 2019 was approximately SGD 16.6 million, a decrease of about SGD 1.4 million from SGD 18.0 million in fiscal year 2018, primarily due to a reduction in warranty service revenue by approximately SGD 1.0 million[35]. - The group experienced a decrease in revenue from automotive equipment supply, offset by an increase in sales of passenger car parts and accessories to clients in Myanmar[30]. Financial Position - As of December 31, 2019, cash and cash equivalents amounted to approximately SGD 6.3 million, an increase from SGD 3.0 million in 2018[44]. - The group's current assets minus current liabilities resulted in an operating capital of approximately SGD 3.8 million, with total equity at SGD 11.7 million[44]. - The debt-to-equity ratio as of December 31, 2019, was 0.7, down from 1.1 in 2018, indicating improved financial stability[44]. - The net debt-to-equity ratio was 0.1 as of December 31, 2019, significantly reduced from 0.7 in 2018, reflecting a decrease in total debt[44]. - The net proceeds from the company's listing in October 2019 were approximately HKD 13.2 million, further strengthening its financial position[45]. - The group incurred approximately SGD 2.0 million in listing expenses for the fiscal year 2019, down from approximately SGD 2.5 million in fiscal year 2018[41]. Operational Challenges - The company anticipates facing a more challenging operating environment due to the economic uncertainty caused by the COVID-19 pandemic, which may impact after-sales service and vehicle rental revenues[23]. - The company will adopt a cautious approach in implementing its expansion plans amid the economic slowdown and uncertainty in Singapore[24]. - The group has terminated a long-term car rental agreement with a major client facing financial difficulties, which may extend the timeline for finding new partners in the car-sharing and ride-hailing sectors[33]. - The company faces risks in expanding its customer base and may struggle to identify suitable locations for its expansion plans[89]. Employee Expenses - Employee benefits expenses increased by approximately SGD 1.0 million to about SGD 5.6 million in fiscal year 2019, mainly due to mid-year bonuses and related contributions[38]. - The total employee cost was approximately SGD 5.6 million, an increase from SGD 4.6 million in 2018[75]. Strategic Plans - The company plans to utilize additional capital raised from the share offering to expand service capacity and continue to grow the rental fleet to support after-sales business[23]. - The group plans to expand service capabilities, continue to grow the rental fleet, and enhance operational efficiency using additional capital raised from the share offering[32]. - The company plans to allocate HKD 5.5 million for service capacity expansion, which has been delayed due to recent market conditions[93]. - The company has postponed its employee recruitment plan to 2020, aiming to retain experienced staff and identify talented candidates[82]. Risk Management - The company faces risks from currency fluctuations, credit risks, liquidity risks, and interest rate risks that could adversely affect its financial performance[50]. - The group has adopted a risk management framework that includes identifying significant risks, assessing their impact, and monitoring the effectiveness of management measures[176]. - The expected credit loss rate for current trade receivables is estimated at 0.1%, while overdue receivables show higher expected loss rates of 1% for up to 90 days, 2% for up to 180 days, 6% for over 180 days but within 365 days, and 12% for over 365 days[61]. Corporate Governance - The company has been involved in various corporate governance practices, including the establishment of audit and remuneration committees[101][105]. - The board of directors includes independent non-executive members, ensuring a balanced governance structure[101][105]. - The company has established a nomination committee to recommend candidates for board vacancies and oversee corporate governance policies[133]. - The company has complied with GEM listing rules by appointing at least three independent non-executive directors, with at least one possessing appropriate professional qualifications in accounting and financial management[126]. Management Team - The company has a strong management team with diverse backgrounds in finance, operations, and administration, enhancing its strategic capabilities[101][105][109]. - The management team has a wealth of experience in the automotive and financial sectors, which is expected to drive future growth and innovation[99][107]. Shareholder Communication - The company has adopted a communication policy to ensure timely and accessible information for shareholders[186]. - The annual general meeting for shareholders is scheduled for May 11, 2020, to address any questions from shareholders[182].
傲迪玛汽车(08418) - 2019 - 年度财报