Company Overview - The company was successfully listed on the GEM of the Hong Kong Stock Exchange on October 11, 2019, through a public offering and placement[26]. - The group primarily engages in automotive after-sales services, focusing on inspection, maintenance, and repair services, as well as car rental services and supplying automotive parts and equipment[26]. Business Expansion and Strategy - The company aims to expand its market presence in the automotive sector, particularly in China, through strategic partnerships and service offerings[26]. - In July 2020, the company's wholly-owned subsidiary, Shenzhen Aodi Taoche Automotive Trading Co., Ltd., commenced its automotive and parts trading business in China[26]. - The group established a wholly-owned subsidiary in Changsha, Hunan, to expand parallel import vehicle trade and related services in central and southern China[39]. - A strategic cooperation agreement was signed with Jin Tao Automobile Technology Co., Ltd. to develop automotive e-commerce in mainland China[33]. Financial Performance - The group's revenue for the fiscal year ending December 31, 2020, was SGD 22.3 million, an increase of approximately SGD 5.7 million from SGD 16.6 million in the fiscal year ending December 31, 2019[27]. - The increase in revenue was primarily due to contributions from the China automotive trade business amounting to approximately SGD 8.8 million, offset by a decrease of about SGD 3.1 million from Singapore subsidiaries[27]. - Sales of passenger car parts and accessories to overseas customers increased by approximately SGD 7.9 million in the fiscal year 2020, mainly due to the commencement of supply to mainland China customers[35]. - The group recorded a total loss of approximately SGD 0.8 million for the fiscal year 2020, compared to a loss of approximately SGD 2.2 million in fiscal year 2019, primarily due to decreased revenue and increased impairment of right-of-use assets and trade receivables[55]. Impact of COVID-19 - The Singapore economy contracted by 5.4% in 2020, impacting the group's operations due to government measures to curb the spread of COVID-19[33]. - The group has implemented various cost control measures, including salary reductions and rental negotiations, to mitigate the adverse effects of the COVID-19 outbreak[36]. - The group anticipates a longer recovery period for its car rental services due to the impact of COVID-19 on the automotive sharing and ride-hailing industry in Singapore[35]. - The group suspended its service capacity expansion plans due to the impact of the COVID-19 pandemic on the Singapore economy[147]. Cost Management and Financial Position - Employee benefits expenses decreased from approximately SGD 5.6 million in fiscal year 2019 to about SGD 4.2 million in fiscal year 2020, mainly due to cost-cutting measures[46]. - The cost of materials used increased by approximately SGD 8.2 million, attributed to costs incurred from supplying automotive parts to mainland China[45]. - The group has diversified its business lines to mitigate risks associated with reliance on the Singapore market, including expanding into car rental and supply services[61]. - The company is focused on maintaining a prudent financial management approach to ensure a stable liquidity position[57]. Governance and Management - The company is committed to maintaining high standards of corporate governance through its independent directors and committees[166]. - The board believes that maintaining high standards of corporate governance is crucial for the group's sustainable growth[183]. - The company has adopted and complied with the corporate governance code as per GEM listing rules, ensuring proper regulation of business activities and decision-making processes[183]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[191]. Risk Management - The group faces various financial risks, including currency, credit, liquidity, and interest rate risks, which could significantly impact its business and financial performance[60]. - The company has a credit risk policy in place, with a credit limit assessment based on customer background and payment history, granting credit periods of 30 to 90 days[128]. - The expected credit loss rate for trade receivables is estimated at 0.2% for current receivables, 2% for receivables overdue within 90 days, and 3% for those overdue within 180 days[129]. Human Resources - As of December 31, 2020, the group had 96 employees, down from 108 in 2019, with total employee costs of approximately SGD 4.2 million, a decrease from SGD 5.6 million in 2019[143]. - Recruitment plans for new service centers were also paused, with a focus on retaining experienced employees and identifying talented candidates[147]. Shareholder Information - The board did not recommend a final dividend for the year ending December 31, 2020, consistent with no dividend in 2019[144]. - The net proceeds from the share sale amounted to approximately HKD 13.2 million, with about HKD 1.1 million remaining unutilized as of December 31, 2020[153].
傲迪玛汽车(08418) - 2020 - 年度财报