Financial Performance - The group's revenue for the year ended December 31, 2018, decreased to approximately SGD 6,987,000, a decline of about 0.9% compared to SGD 7,054,000 for the year ended December 31, 2017[10]. - The group recorded a profit of approximately SGD 1,851,000 for the year ended December 31, 2018, an increase of about SGD 2,321,000 compared to a loss of SGD 470,000 for the year ended December 31, 2017[11]. - The group's total revenue for the year ended December 31, 2018, was approximately SGD 6,987,000, a slight decrease of SGD 67,000 or 0.9% compared to SGD 7,054,000 for the year ended December 31, 2017[21]. - Revenue from consultation services increased from SGD 1,794,000 to SGD 1,837,000, representing a growth of 2.4%[22]. - Revenue from prescription and dispensing services rose from SGD 1,956,000 to SGD 2,065,000, an increase of 5.6%[23]. - Revenue from treatment services decreased from SGD 2,821,000 to SGD 2,648,000, a decline of 6.1% primarily due to reduced demand for certain procedures[23]. - The total number of patient consultations increased by 1.2%, from 21,368 to 21,344, indicating stable patient engagement despite revenue fluctuations[21]. Business Expansion and Strategy - The group plans to strategically expand its business by establishing new clinics in Orchard and Raffles Place, as well as a new medical beauty clinic near Orchard Clinic[12]. - The group will continue to review its business strategies to identify opportunities for expansion and customer base growth[12]. - The company plans to expand its market share in the dermatology and surgical services sector in Singapore, capitalizing on the growing interest in medical aesthetic services[17]. - A new medical aesthetic clinic is set to open in February 2019, leveraging the existing Orchard Clinic's location to enhance service offerings[18]. - The Raffles Place Clinic has relocated to a larger property, with operations commencing at the end of February 2019, aimed at improving service capacity[18]. Operational Efficiency and Cost Management - The group aims to manage expenses by enhancing employee skills to reduce labor costs and leveraging technology to decrease labor intensity[12]. - The increase in costs is attributed to higher operational expenses post-listing, including compliance and professional fees[11]. - The group is focused on optimizing operations and enhancing overall business efficiency through the opening of new clinics[12]. - Total operating expenses increased by approximately 348,000 SGD or 22.5% from 1,546,000 SGD for the year ended December 31, 2017, to 1,894,000 SGD for the year ended December 31, 2018[33]. - Employee benefits expenses increased from SGD 1,350,000 to SGD 1,812,000, reflecting higher salaries and bonuses due to company growth[28]. - The total number of employees (excluding doctors) rose from 18 to 20, indicating a slight increase in workforce to support business expansion[29]. Financial Position and Equity - The group had no bank borrowings or interest-bearing liabilities as of December 31, 2018, resulting in a decrease in financial costs by approximately 16,000 SGD[38]. - The total equity of the group as of December 31, 2018, was approximately 14,606,000 SGD, up from approximately 12,755,000 SGD as of December 31, 2017[43]. - Cash and cash equivalents amounted to approximately 14,128,000 SGD as of December 31, 2018, compared to approximately 12,553,000 SGD as of December 31, 2017[43]. - The group incurred a one-time listing expense of approximately 2,933,000 SGD for the year ended December 31, 2017, with no listing expenses incurred for the year ended December 31, 2018[39]. - Employee costs, including directors' remuneration, were approximately 1,812,000 SGD for the year ended December 31, 2018, compared to approximately 1,350,000 SGD for the year ended December 31, 2017[51]. Corporate Governance and Compliance - The company has confirmed compliance with regulatory requirements, with no significant violations reported as of the report date[59]. - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance with applicable governance standards[164]. - The company has maintained a high level of corporate governance to manage business risks and enhance transparency[163]. - The company has implemented adequate internal control systems and risk management procedures[169]. - The board consists of six members, including three executive directors and three independent non-executive directors[166]. - The company has established a compliance advisory agreement with Chiu Yau Capital Limited effective from November 1, 2017[128]. Shareholding and Ownership Structure - As of December 31, 2018, Dr. Loh Teck Hiong, Dr. Ee Hock Leong, and Dr. Ko Yong Jian each hold 358,000,000 shares, representing 59.66% of the company's equity[104]. - Brisk Success Holdings Limited, which is controlled by the aforementioned doctors, holds the same number of shares, indicating a consolidated ownership structure[108]. - Victory Spring Ventures Limited holds 35,560,000 shares, accounting for 5.93% of the company's equity[108]. - The total number of shares available for issuance under the share option scheme is capped at 10% of the total issued shares at the time of listing, which amounts to a maximum of 60,000,000 shares[116]. - The maximum number of shares that can be issued to any participant under the share option scheme in any 12-month period is limited to 1% of the total issued shares[118]. Risks and Challenges - The company faces significant business risks related to the recruitment and retention of skilled professionals, which could adversely affect financial performance[56]. - The dermatology and skincare services industry is sensitive to negative media reports, which may impact consumer confidence and market perception[57]. Future Plans and Investments - The planned use of the net proceeds includes strategic expansion and enhancement of the clinic network in Singapore, with an allocation of HKD 14.1 million[64]. - Establishing new medical beauty clinics has an allocated budget of HKD 13.6 million, with HKD 10.4 million already utilized[64]. - The purchase of additional new equipment and expansion of treatment and product offerings is budgeted at HKD 9.6 million[64]. - A centralized logistics center is planned with an allocation of HKD 2.3 million, although the project has been delayed due to space acquisition issues[64][68]. - Improvement of IT infrastructure and systems has a budget of HKD 2.4 million, with ongoing efforts to find suitable systems[64][69].
德斯控股(08437) - 2018 - 年度财报