Financial Performance - The group recorded a profit of approximately SGD 158,000 for the year ended December 31, 2019, a decrease of about SGD 1,693,000 compared to a profit of approximately SGD 1,851,000 for the year ended December 31, 2018[30]. - The group's total revenue for the year ended December 31, 2019, was approximately SGD 7,225,000, an increase of about SGD 238,000 or 3.4% compared to SGD 6,987,000 for the year ended December 31, 2018[39]. - The net profit for the year ended December 31, 2019, was approximately SGD 158,000, a decrease of about SGD 1,693,000 compared to the profit of approximately SGD 1,851,000 for the year ended December 31, 2018[55]. - The net cash generated from operating activities for the year ended December 31, 2019, was approximately SGD 330,000, down from approximately SGD 1,876,000 for the year ended December 31, 2018[57]. - The total equity as of December 31, 2019, was approximately SGD 14,744,000, compared to approximately SGD 14,606,000 as of December 31, 2018[57]. Revenue Breakdown - Revenue from consultation services reached SGD 1,843,000, accounting for 25.5% of total revenue, while prescription and dispensing services generated SGD 2,110,000, representing 29.2% of total revenue[39]. - Revenue from treatment services decreased to SGD 2,499,000 in 2019 from SGD 2,648,000 in 2018, mainly due to a decline in chemical peels and skin treatments[40]. - Other services revenue rose to SGD 649,000 in 2019, accounting for 9.0% of total revenue, compared to SGD 437,000 or 6.2% in 2018[39]. - Revenue from the top five customers accounted for 23.1% of total revenue, down from 29.0% in 2018[101]. - The largest customer contributed 12.4% of total revenue, compared to 13.9% in 2018[101]. Cost and Expenses - The increase in costs was primarily due to employee benefits, depreciation of property and equipment, and other professional fees[30]. - Employee benefits expenses increased to SGD 2,322,000 in 2019 from SGD 1,812,000 in 2018, primarily due to hiring additional staff for beauty clinics and the "Family and Skin" clinic[45]. - Other operating expenses increased by approximately SGD 172,000 or 9.1% from SGD 1,894,000 for the year ended December 31, 2018, to SGD 2,066,000 for the year ended December 31, 2019[49]. - The employee costs, including directors' remuneration, amounted to approximately SGD 2,322,000 for the year ended December 31, 2019, compared to approximately SGD 1,812,000 for the year ended December 31, 2018[64]. Business Expansion and Strategy - The company expanded its medical aesthetics services by opening a new clinic focused on appearance-related treatments, managed by newly hired dermatologists[29]. - A new clinic was established on Orchard Road to develop a "Family and Skin" concept, operated by three general practitioners[29]. - The company has formed a joint venture agreement with reputable local partners in Hong Kong to establish a comprehensive specialty center focusing on dermatology, aesthetics, preventive and regenerative medicine, and obstetrics[29]. - The group plans to expand its market share in Singapore's dermatology and surgical services industry, targeting growth opportunities in Hong Kong and China[37]. - The company aims to enhance the quality and variety of services at existing clinics and establish new medical beauty clinics as part of its business strategy[37]. Market Outlook - The company anticipates significant demand for high-quality topical skincare products, such as hand sanitizers and hand creams, due to the global outbreak of COVID-19[31]. - The company believes it has laid a solid foundation in 2019 for entering a phase of rapid growth and development in the coming years[29]. - The company is prepared to navigate uncertainties and challenges in 2020, expecting to benefit from pent-up demand once the pandemic is under control[31]. - The company has identified increasing opportunities in the Greater China region, particularly in the Greater Bay Area, for medical tourism[29]. Shareholder Information - The company expressed gratitude to shareholders, customers, and business partners for their continued support[33]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2019[56]. - The distributable reserves available for shareholders as of December 31, 2019, are approximately SGD 5.367 million[95]. - The company has confirmed that at least 25% of its total issued share capital is held by the public[142]. Corporate Governance - The company emphasizes the importance of compliance with regulatory requirements and has not encountered any significant violations during the reporting period[90]. - The company is committed to maintaining high standards of corporate governance and accountability through its board structure and committee oversight[160]. - The board consists of six directors, with three executive directors and three independent non-executive directors[171]. - The company has adopted the corporate governance code as per GEM listing rules and has complied with all applicable provisions for the year ending December 31, 2019[172]. - The company has established appropriate insurance arrangements for directors facing legal actions due to company activities[174]. Risk Management - The company has established a risk management and internal control system to manage operational risks and ensure the effectiveness of financial reporting[197]. - The company’s internal auditor, MS Risk Management Pte. Ltd., confirmed the effectiveness of the internal control and risk management systems without significant deficiencies[198]. - The outbreak of a respiratory disease caused by the novel coronavirus may impact the group's business in the coming year, with management currently assessing the financial implications[144]. Management and Directors - The company has a remuneration committee that reviews the salaries of directors annually based on performance and operational results[158][162]. - The company has established a strategy for independent opinions on governance, performance, and internal controls through its independent non-executive directors[160]. - There are no disclosed connections between the directors and major shareholders or management, ensuring independence in governance[162]. - The company arranged a seminar for directors regarding GEM listing rules and relevant laws, with full attendance by all directors[180].
德斯控股(08437) - 2019 - 年度财报