Financial Performance - The group's revenue for the year ended December 31, 2018, decreased by approximately SGD 1,422,000 or about 4.6% to approximately SGD 29,400,000 compared to the previous year[10]. - Gross profit decreased from approximately SGD 6,835,000 in the previous year to approximately SGD 4,540,000, with a gross margin decline from 22.2% to 15.4%[10]. - The group recorded a profit of approximately SGD 467,000 for the year ended December 31, 2018, compared to a loss of approximately SGD 406,000 in the previous year[11]. - Administrative expenses were higher, exacerbating the impact of declining revenue and gross profit, leading to a decrease of approximately SGD 2,235,000 in profit compared to the adjusted profit from the previous year[11]. - Truck transportation service revenue fell by approximately SGD 1,935,000 to SGD 23,685,000, a decline of 7.6%, primarily due to global trade economic uncertainties[17]. - Consolidated service revenue increased by 9.9% or approximately SGD 513,000, driven by customer demand for container storage during delays[19]. - The gross profit margin for truck transportation services decreased from 16.6% to 6.9%, mainly due to rising fuel costs and reduced revenue[21]. - The gross profit margin for consolidated services increased from 49.6% to 51.0%, attributed to revenue growth in this segment[22]. - Other income rose from approximately SGD 284,000 to approximately SGD 411,000, mainly due to foreign exchange gains from cash held in Hong Kong[24]. - The total employee cost for the year ended December 31, 2018, was approximately SGD 9,721,000, an increase of 5% from SGD 9,254,000 in 2017[40]. - The company recorded a cumulative loss as of December 31, 2018, resulting in no available reserves for cash distribution[183]. Operational Challenges - The decrease in gross margin was attributed to rising fuel costs and a decline in revenue, with over one-third of sales costs being fixed costs[10]. - The overall operating environment was challenging due to uncertainties in the global trade economy affecting the logistics sector in Singapore[9]. - The company plans to maintain growth in the industry and expand its market share in Singapore, while being cautious about expansion plans due to global trade uncertainties[48]. Corporate Governance - The company emphasizes good corporate governance as crucial for efficient business management and maximizing shareholder returns, adhering to the GEM listing rules[67]. - The company has adopted the trading standards for directors as per GEM listing rules, confirming compliance for the year ending December 31, 2018[69]. - The company has a strong focus on compliance and corporate governance policies, regularly reviewing and monitoring applicable codes of conduct and governance practices[70]. - The board includes independent directors with extensive experience in auditing and finance, ensuring diverse oversight and governance[58][60]. - The company has established a nomination committee to review the composition of the board and assess the independence of non-executive directors[82]. - The board has set up specific written terms of reference for each committee to clearly define their authority and duties[73]. - The company has maintained high standards of corporate governance, including regular reviews of governance policies and compliance with legal requirements[78]. - The company emphasizes the importance of board diversity for enhancing governance and performance, considering factors such as gender, age, culture, and professional experience[85]. Employee Management - The company has not encountered any significant labor disputes or difficulties in recruiting and retaining experienced employees[40]. - The company employed 175 staff members, including 136 qualified drivers, with 32 new hires and 39 departures during the fiscal year ending in 2018[128]. - The company emphasizes employee welfare and invests in technology to improve operational efficiency, aiming to create a vibrant workforce[125]. - The company has established a policy for employee development and training, ensuring compliance with labor standards[173]. - The company provides comprehensive benefits and compensation packages for full-time employees, including medical, dental, and maternity leave[140]. Environmental Sustainability - The total greenhouse gas emissions amounted to 9,508 tons of CO2 equivalent in the fiscal year 2018[159]. - Direct greenhouse gas emissions (Scope 1) were 9,467 tons of CO2 equivalent, primarily from gasoline usage[159]. - Indirect greenhouse gas emissions (Scope 2) were 21 tons of CO2 equivalent, mainly from purchased electricity[159]. - The company has implemented measures to reduce greenhouse gas emissions, including digital office practices and vehicle maintenance[158]. - The company aims to establish an electronic automated office to minimize paper usage and enhance operational efficiency[162]. - The company has adhered to environmental, social, and governance reporting guidelines, ensuring compliance in various key performance indicators[173]. - The company has implemented measures to reduce emissions and manage waste effectively, demonstrating commitment to environmental sustainability[170]. Stakeholder Engagement - The company has established a stakeholder engagement strategy, focusing on communication with employees, investors, customers, suppliers, government agencies, and the community[123]. - The company maintains effective communication with investors to enhance transparency and ensure timely access to information regarding the group[114]. - The company encourages shareholders to submit proposals for special meetings if they hold at least 10% of the paid-up capital[108]. Financial Management - The company considers declaring dividends only when there are profits and it does not affect normal operations, taking into account various factors including operational performance and cash flow[101]. - The company did not recommend any dividends for the fiscal year ending December 31, 2018, due to overall operating performance and financial condition considerations[178]. - The company has not engaged in any purchases, redemptions, or sales of its listed securities during the fiscal year[180]. - The net proceeds from the share issuance as of December 31, 2018, amounted to approximately HKD 40.4 million (equivalent to about SGD 6.9 million)[187].
春能控股(08430) - 2018 - 年度财报