Financial Performance - The company recorded a loss of approximately SGD 9.27 million for the year ended December 31, 2020, a decrease of about SGD 9.43 million compared to a profit of approximately SGD 158,000 for the year ended December 31, 2019[25]. - The group’s revenue increased by approximately SGD 584,000 or 8.1% to approximately SGD 7,809,000 for the year ended December 31, 2020, compared to SGD 7,225,000 for the year ended December 31, 2019[34]. - Revenue from beauty services rose from SGD 124,000 in 2019 to SGD 220,000 in 2020, an increase of SGD 96,000[34]. - Revenue from consultation services decreased by SGD 515,000 from SGD 1,843,000 in 2019 to SGD 1,328,000 in 2020, with patient visits dropping from 18,622 to 17,074, a decline of 8.9%[35]. - Revenue from prescription and dispensing services fell by SGD 161,000 from SGD 2,110,000 in 2019 to SGD 1,949,000 in 2020[35]. - Trade sales revenue, primarily from the DS brand dermatology clinic's ALL-DAY HAND SANITISER and disposable medical masks, contributed SGD 1,785,000 in 2020[36]. - The company recorded a loss of approximately SGD 9,272,000 for the year ended December 31, 2020, a decrease of approximately 5,968% compared to a profit of SGD 158,000 in 2019[52]. - Total equity as of December 31, 2020, was approximately SGD 5,531,000, down from approximately SGD 14,744,000 in 2019[54]. - Cash and cash equivalents as of December 31, 2020, were approximately SGD 4,932,000, compared to approximately SGD 12,651,000 in 2019[54]. - The net cash used in operating activities for the year was approximately SGD 4,515,000, compared to a net cash generated of approximately SGD 330,000 in 2019[54]. Business Expansion and Development - The company has established a joint venture in Hong Kong to create a comprehensive specialty center focusing on dermatology, aesthetic medicine, health check-ups, and gynecology services[24]. - The company opened a new clinic in Paragon, focusing on laser and aesthetic dermatology, accelerating its development in the aesthetic medicine field[24]. - The company operates five dermatology and surgical clinics in Singapore and has established a regenerative medicine center in Kowloon Bay, targeting clients in the Greater Bay Area[30]. - The group anticipates stable growth in Singapore's business with the opening of new clinics and recruitment of four new dermatologists[32]. - The group expects significant revenue contributions from new businesses in Hong Kong's beauty laser center and regenerative medicine center once the border with mainland China reopens later this year[32]. - The group plans to strategically expand and enhance its clinic network outside of Singapore, reallocating approximately HKD 5 million for identifying acquisition targets and seeking collaboration opportunities[72]. - The group has successfully obtained an offer letter dated February 1, 2021, to open a new clinic at Eagle Medical Center, expanding into more areas and establishing a dermatology specialty clinic[72]. - Approximately HKD 4.2 million has been reallocated for investment in medical technology and digital healthcare, aiming to create synergies with existing operations[72]. - The group recognizes the high demand for healthcare services from patients in mainland China, particularly in the Greater Bay Area, and sees potential benefits from expanding in Hong Kong[71]. Employee and Operational Costs - Employee benefits expenses increased from SGD 2,322,000 in 2019 to SGD 3,884,000 in 2020, primarily due to hiring additional staff for the Hong Kong clinic[41]. - The total number of employees (excluding doctors) increased from 30 in 2019 to 44 in 2020[42]. - The cost of consumables and medical supplies rose from SGD 1,140,000 in 2019 to SGD 2,467,000 in 2020, an increase of approximately 116%[39]. - Other operating expenses increased by approximately 108.2% from SGD 2,066,000 in 2019 to SGD 4,302,000 in 2020[45]. - Professional and consulting fees rose by approximately SGD 2,413,000, primarily related to professional fees payable to doctors[46]. - Employee costs, including directors' remuneration, amounted to approximately SGD 3,884,000 in 2020, up from approximately SGD 2,322,000 in 2019[61]. - The company had a leverage ratio of approximately 102.57% as of December 31, 2020, indicating significant debt relative to equity[54]. Shareholder and Governance Information - Loh Teck Hiong holds 278,848,000 shares, representing 46.47% of the company's equity[107]. - The company has adopted a share option scheme allowing for the issuance of up to 60,000,000 shares, which is approximately 8.33% of the total issued share capital[117]. - The company has confirmed compliance with non-competition commitments by its major shareholders as of December 31, 2020[127]. - The annual general meeting is scheduled for May 11, 2021, with a suspension of share transfer registration from May 6 to May 11, 2021[128]. - The company completed a placement of up to 120,000,000 shares at a price of HKD 0.225 per share, raising approximately HKD 12,000,000 for general working capital[134]. - The total issued share capital of the company increased to 720,000,000 shares following the placement[134]. - The company has a public float of at least 25% of its total issued share capital as of the last practicable date before the report was published[132]. - There were no related party transactions that required disclosure under GEM listing rules for the year ended December 31, 2020[133]. - The board consists of six directors, including three executive directors and three independent non-executive directors as of the report date[153]. - The company has adopted the principles and code provisions of the corporate governance code as set out in the GEM Listing Rules Appendix 15, and has complied with all applicable code provisions for the year ended December 31, 2020[151]. - The company has appointed at least three independent non-executive directors, representing more than one-third of the board, in compliance with GEM Listing Rules[154]. Compliance and Risk Management - The company emphasizes the importance of compliance with regulatory requirements and has maintained significant compliance with applicable laws and regulations during the reporting period[84]. - The company has a robust internal control system and risk management procedures in place, as monitored by the board[155]. - The independent non-executive directors contribute valuable expertise and independent judgment to the board's strategic decisions[155]. - The internal auditor, Moore Stephen LLP, has confirmed the effectiveness of the internal control and risk management systems, with no significant deficiencies reported[181]. ESG and Stakeholder Engagement - The first ESG report outlines the company's commitment to sustainable development and responsible business practices, highlighting its impact on stakeholders[195]. - The reporting period for the ESG data and activities covers January 1 to December 31, 2020[197]. - The company recognizes the strategic role of stakeholders in maintaining long-term growth and responsible business development[198]. - The company encourages stakeholder feedback on its ESG policies and performance, providing a dedicated email for communication[199].
德斯控股(08437) - 2020 - 年度财报