Financial Performance - The group's revenue for the year ended December 31, 2019, decreased by approximately SGD 651,000 or about 2.2% to approximately SGD 28,749,000 compared to the previous year[9]. - Gross profit for the same period decreased by approximately SGD 1,291,000 to approximately SGD 3,248,000, with a gross margin decline from 15.4% to 11.3%[9]. - The group recorded a net loss of approximately SGD 980,000 for the year ended December 31, 2019, compared to a profit of approximately SGD 467,000 in the previous year[9]. - Revenue from truck transportation services increased by approximately SGD 795,000 to SGD 24,480,000, representing a growth of 3.4% due to increased demand from a major customer[15]. - Revenue from consolidation services decreased by 25.3% or approximately SGD 1,446,000, primarily due to a reduction in trade activities and changes in customer dynamics[17]. - Other income decreased from approximately SGD 411,000 to approximately SGD 93,000, primarily due to reduced gains from the sale of properties and foreign exchange losses[22]. - The group recorded a loss of approximately SGD 980,000 for the year ended December 31, 2019, compared to a profit of approximately SGD 467,000 for the previous year, a decrease of approximately SGD 1,447,000[25]. - The total employee cost for the year ended December 31, 2019, was approximately SGD 9,506,000, compared to SGD 9,721,000 in 2018, with a total of 170 employees[34]. - The company considers declaring dividends only when it is profitable and does not affect normal operations, taking into account various factors including operational performance, cash flow, and financial condition[93]. - The group reported a loss for the year ending December 31, 2019, with no dividends recommended by the board due to overall performance and financial condition considerations[179]. Economic Environment - Singapore's economic growth rate for the previous year was 0.7%, the lowest in 10 years, with GDP forecasted to decline to between -0.5% and 1.5% for 2020[10]. - Singapore's economic growth rate is projected at 0.7%, the lowest in a decade, with GDP forecasts for 2020 adjusted to between -0.5% and 1.5%[43]. - The operational environment remains challenging due to uncertainties in global trade economics affecting the group's business operations[8]. Business Operations - The group primarily serves logistics service providers in Singapore's supply chain, transporting goods such as plastic resins, scrap steel, and paper products[9]. - The management is continuously monitoring the global trade economy and discussing with customers to understand the situation and customer needs[10]. - The group has a large fleet capable of handling a significant volume of customer orders, positioning itself as a reliable transportation and consolidation service provider[13]. - The management team is experienced and has been instrumental in the group's development as a trusted service provider in the logistics industry[13]. - The company has hired a financial director, two financial supervisors, and three operational staff to support business expansion, along with 27 drivers[36]. - The company has completed the installation and setup of computer workstations and auxiliary equipment, and is in the process of obtaining quotes for a customized enterprise resource planning system[36]. - The company plans to maintain growth in the industry and expand its market share in Singapore, despite facing challenges due to global trade uncertainties[43]. - The company operates primarily in Singapore, providing various transportation and storage services for the logistics industry, focusing on truck transportation and consolidation services[110]. Corporate Governance - The company has a strong governance structure, with the board believing that good corporate governance is crucial for efficient business management and maximizing shareholder returns[60]. - The company has adopted the GEM Listing Rules regarding securities trading standards for directors, ensuring compliance throughout the fiscal year ending December 31, 2019[62]. - The company has established a non-competition agreement with its controlling shareholder to prevent competition in the logistics sector in Hong Kong and Singapore[64]. - The company has a diverse board with members having extensive experience in finance, accounting, and logistics, enhancing its strategic decision-making capabilities[52][54][55]. - The company has implemented a code of conduct applicable to employees and directors, promoting ethical behavior and compliance with corporate governance policies[63]. - The company has a dedicated compliance officer to oversee adherence to legal and regulatory requirements, ensuring operational integrity[57]. - The board consists of five directors, including two executive directors and three independent non-executive directors, with no changes since January 1, 2019[69]. - The board held a total of four regular meetings and one annual general meeting during the year, with all directors attending all meetings[74]. - The company has established a three-year service contract with executive directors, effective from the listing date, which can be terminated with a three-month written notice[75]. - The board is responsible for the overall management of the group, including resource allocation and strategic decision-making[71]. - Independent non-executive directors have confirmed their independence in accordance with GEM listing rules, ensuring compliance with governance standards[70]. - The company emphasizes board diversity, considering factors such as gender, age, cultural background, and professional experience in its composition[77]. - The board regularly reviews its functions and responsibilities, ensuring effective internal controls and risk management procedures are in place[71]. - The company has received written confirmations from controlling shareholders regarding compliance with non-competition agreements since January 1, 2019[65]. - The board has established specific committees with defined authority and responsibilities to enhance governance and oversight[66]. - The company maintains high standards of corporate governance, regularly reviewing policies and compliance with legal and regulatory requirements[66]. - All directors participated in appropriate continuing professional development activities during the year ended December 31, 2019[78]. - The audit committee held four meetings to review the group's quarterly, interim, and annual performance for the fiscal year ended December 31, 2019[82]. - The remuneration committee approved the remuneration and performance bonuses for the executive directors and senior management on March 25, 2020[84]. - The nomination committee held one meeting to consider the re-election of directors and assess the independence of non-executive directors[88]. - The company has purchased appropriate insurance to cover legal liabilities arising from the activities of directors and senior management[79]. - The audit committee's main responsibilities include reviewing and supervising the group's financial reporting procedures and internal control systems[82]. - The remuneration committee reviewed the remuneration of executive directors and senior management for the fiscal year ended December 31, 2019[86]. - The nomination committee is responsible for monitoring the implementation of the board diversity policy and making measurable targets[87]. - The company confirmed compliance with relevant laws and regulations affecting its business and operations during the year[191]. Environmental, Social, and Governance (ESG) - The company has established an Environmental, Social, and Governance (ESG) working group to support the board in implementing ESG measures and monitoring related matters[111]. - The company aims to enhance its sustainable development performance by actively listening to stakeholder feedback and establishing trust-based relationships[115]. - The company prioritizes employee welfare and aims to provide a comfortable and stable working environment to foster a dedicated workforce[122]. - The company has adhered to all applicable ESG reporting guidelines and has established a complete index for reference[112]. - The company focuses on high efficiency and reliability in service delivery to ensure business resilience and sustainable growth[120]. - The company emphasizes the importance of a stable workforce to deliver quality services for sustainable development[126]. - Full-time employees are entitled to comprehensive benefits including medical, dental, and maternity leave, enhancing employee welfare[126]. - The company has implemented strict policies against child labor and forced labor, ensuring all employees are legally employed[129]. - The company adheres to Singapore's Workplace Safety and Health Act, maintaining a safe and clean working environment[133]. - The company has invested in technology systems to improve workflow efficiency and reduce employee workload[138]. - The company actively adopts energy-saving measures, including digital office practices to reduce paper usage and regular vehicle maintenance to monitor fuel consumption[161]. - The main sources of greenhouse gas emissions are direct emissions from logistics operations and indirect emissions from electricity consumption[160]. - The company has established rules and regulations to achieve energy-saving and effective consumption goals, including the selection of energy-efficient equipment[163]. - The company encourages employees to develop water-saving habits and manages wastewater effectively, with no significant issues in sourcing water[164]. - The company is committed to creating a comfortable and green working environment to enhance employee productivity[165]. - The company reported direct emissions (Scope 1) of 9,504.3 tons of CO2 equivalent for the fiscal year 2019[168]. - Indirect emissions (Scope 2) amounted to 20.9 tons of CO2 equivalent, while Scope 3 emissions were 0.8 tons[168]. - The total water consumption was 362.5 liters, with a density of 12.6[168]. - The company consumed 49,893.0 kWh of electricity, resulting in a density of 1,738.4[168]. - Diesel consumption reached 3,635,925.4 liters, with a density of 126,687.3[168]. - The company generated 2,600.0 kg of paper waste, with a density of 90.6[168]. - The company’s operations did not generate hazardous waste, and the total amount of non-hazardous waste produced was deemed insignificant[171]. - The group is committed to creating an environmentally friendly corporate environment and improving the effective use of natural resources[189]. Customer and Supplier Relations - Sales to the top five customers accounted for 78% of total sales, with the largest customer contributing 42%[187]. - The group maintained good relationships with its major customers and suppliers, with purchases from the top five suppliers accounting for 46% of total purchases[187]. - The company has not received any major customer complaints in the review year, indicating high service quality[145]. - The company maintains strong relationships with suppliers to ensure the provision of quality goods and services[140]. - Quality control policies are in place to meet the changing demands of customers and the market[141]. Workforce and Employment - As of December 31, 2019, the company had a total of 170 employees, with 34 new hires and 39 departures during the year, primarily in the logistics sector[124]. - The employee structure shows that 21% are aged 18-35, 47% are aged 36-55, and 32% are aged 56 and above, with a gender distribution of 12% female and 88% male[125]. - The company is committed to complying with Singapore's employment laws and regulations, including the Employment Act and the Employment of Foreign Manpower Act[123]. - Training programs are provided annually to ensure compliance with regulatory requirements and market trends[134]. Technology and Innovation - The company has invested in technology systems to improve workflow efficiency and reduce employee workload[138]. - The company has completed the installation and setup of computer workstations and auxiliary equipment, and is in the process of obtaining quotes for a customized enterprise resource planning system[36].
春能控股(08430) - 2019 - 年度财报