Financial Performance - The group's revenue for the year ended December 31, 2020, decreased by approximately SGD 2,485,000 or about 8.6% to approximately SGD 26,264,000 compared to the previous year[11]. - The gross profit for the year ended December 31, 2020, decreased by approximately SGD 1,749,000 to approximately SGD 1,499,000, with a gross profit margin dropping from 11.3% to 5.7%[11]. - The group recorded a loss of approximately SGD 811,000 for the year ended December 31, 2020, compared to a loss of approximately SGD 980,000 for the previous year[11]. - Revenue from truck transportation services decreased by approximately SGD 2,807,000 to SGD 21,673,000, representing a decline of 11.5% due to reduced demand from clients amid COVID-19[17]. - Revenue from consolidation services increased by 7.5% or approximately SGD 322,000, driven by the need for storage space for containers during shipping delays[19]. - Overall gross profit decreased from approximately SGD 3,248,000 for the year ended December 31, 2019, to approximately SGD 1,499,000 for the year ended December 31, 2020, with a gross profit margin dropping from 11.3% to 5.7%[20]. - Other income increased by approximately SGD 1,454,000 to about SGD 1,547,000, primarily due to government subsidies received during COVID-19[24]. Economic Context - Singapore's economy contracted by 5.4% in 2020 due to the impact of COVID-19, affecting the logistics services sector[10]. - The economic outlook for Singapore in 2021 anticipates GDP growth of 4% to 6%[12]. - The group faces ongoing challenges and uncertainties in the upcoming year as it adapts to the evolving economic landscape[12]. Management and Governance - The management expresses gratitude to shareholders, business partners, suppliers, and customers for their continued support during the challenging year[13]. - The company has a strong management team with over 17 years of experience in the transportation and storage industry, led by Executive Director Ms. Cai Shufen[53]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring effective governance[69]. - The company has adhered to the corporate governance code from January 1, 2020, to December 31, 2020, with a commitment to stakeholder interests[62]. - The company has implemented a non-competition agreement with its controlling shareholders to protect its business interests in the logistics sector[64]. - The independent non-executive directors have confirmed compliance with the non-competition agreement, ensuring adherence to corporate governance practices[68]. - The company has a dedicated compliance officer to oversee regulatory adherence and corporate governance standards[60]. Operational Developments - The company purchased 10 Euro 6 compliant trucks and 10 trailers, with a total allocation of approximately HKD 26,062,000 for vehicle upgrades[38]. - The company has completed the installation of a customized container tracking system and an enterprise resource planning system[38]. - The company plans to purchase a new office space of approximately 1,000 square feet to accommodate additional employees, with a budget of HKD 2,619,000[41]. - The company has allocated HKD 17,239,000 remaining for vehicle purchases to enhance transportation and storage capabilities[42]. - The company continues to monitor market conditions to determine the timing for purchasing additional vehicles[41]. - The company aims to maintain growth in the industry and expand its market share in Singapore through strategic initiatives[45]. Employee and Workplace Safety - The employee turnover rate for the year was 8.4%, indicating a stable workforce compared to previous years[162]. - The company employed a total of 166 full-time employees as of December 31, 2020, down from 170 in 2019[162]. - The company has maintained a work injury rate of 0.0235% in 2018, 0.0155% in 2019, and 0.0160% in 2020, indicating a positive trend in workplace safety[174]. - The total number of lost workdays due to injuries was 80 in 2018, 70 in 2019, and 72 in 2020, reflecting effective safety measures[174]. - The company has not experienced any work-related fatalities in the past three years, demonstrating a strong commitment to employee safety[172]. - The company has implemented comprehensive COVID-19 safety measures, including regular disinfection, flexible working arrangements, and mandatory mask-wearing[175][180]. Environmental, Social, and Governance (ESG) Initiatives - The ESG committee is responsible for implementing the company's ESG initiatives and monitoring performance, with the board of directors ultimately accountable for the ESG report[120]. - The company has established a systematic management approach to assess and manage significant ESG-related issues, including stakeholder communication and internal evaluations[124]. - The company aims to continuously improve its ESG performance and create greater value for the broader community[126]. - The company has implemented operational measures to reduce greenhouse gas emissions, focusing on direct emissions from logistics operations and indirect emissions from electricity consumption and paper usage[134]. - The company aims to achieve cumulative reduction targets for diesel (1%), electricity (1.5%), and water (1.5%) by 2025, with incremental annual targets set for each year[145]. - The company has maintained compliance with significant environmental regulations, including the Environmental Protection Management Act and the Hazardous Waste Act in Singapore[138]. - The company has adopted digital office practices to minimize paper usage and has implemented regular vehicle maintenance to ensure compliance with national emission standards[135]. Compliance and Risk Management - The company has engaged an independent internal control consultant to review its internal control systems and risk management processes[106]. - The risk management and internal control systems are deemed effective and adequate based on the independent consultant's report[109]. - The company has established a risk management system in place to identify and mitigate workplace hazards, contributing to overall employee well-being[177]. - The company has complied with all relevant laws and regulations regarding workplace safety and employee protection during the reporting period[177]. Stakeholder Engagement - Key stakeholders include government agencies, investors, employees, customers, suppliers, and the community, with various communication channels established to address their concerns[126]. - The company is committed to providing accurate and timely information regarding its financial and operational performance to shareholders and investors[111]. - The board will ensure timely and fair disclosure of inside information to maintain market fairness and transparency[113].
春能控股(08430) - 2020 - 年度财报