Financial Performance - The FY2020 results reflected the impact of the COVID-19 pandemic[26] - Revenue was affected by Circuit Breaker and Safe Management Measures, impacting corporate customers' ability to conduct business fully[27] - Revenue decreased by 14.5% from $15.5 million in FY2019 to $13.2 million in FY2020, primarily due to lower quantities of tissue products ordered by corporate customers[31] - Gross profit reduced by 11.5% from $3.5 million in FY2019 to $3.1 million in FY2020, with a gross profit margin improvement of 80 basis points to 23.5%[31] - Profit for FY2020 was $397,000, a slight decrease of 2.0% from $410,000 in FY2019, attributed to lower gross profit but offset by an increase in other income[31] - Revenue from external customers for FY2020 was $13.2 million, with segment profit of $3.1 million[65] - Sales of tissue products decreased by $2.4 million, representing a decrease of 17.5% due to the effects of Circuit Breaker and Safe Management Measures[90] - Sales of hygiene-related products decreased by $0.1 million, representing a decrease of 5.0%, with less severe impact as these products were mainly used in the healthcare sector[91] - Sales of other products increased by $0.2 million, representing an increase of 37.8%, driven by demand for face masks due to COVID-19[92] - Cost of sales decreased from $12.0 million to $10.1 million, representing a decrease of 15.4%, corresponding with the decrease in revenue[98] - Gross profit decreased by 11.4% from $3.5 million to $3.1 million, while gross profit margin improved by 80 basis points to 23.5%[99] - Profit attributable to the owners of the Company was $397,000, a slight decrease from $410,000 in the Previous Year[102] Operational Developments - The company leveraged its industry experience to provide non-tissue products, including face masks, to existing customers, resulting in increased revenue from other products compared to FY2019[28] - The company plans to continue evaluating development opportunities to strengthen its competitive advantage and market position[38] - The company will monitor new tissue product developments and source quality products with competitive pricing[38] - The Group's total staff costs for the Relevant Year amounted to $2.3 million, an increase of 9.5% from $2.1 million in 2019[1] - The Group upgraded its conversion line for the production of jumbo roll tissue, fully utilizing $940,000, which represents 20.7% of the allocated budget[131] - A new conversion line for the production of hand towels was planned with an allocation of $1.3 million, of which $197,000 (4.3%) has been utilized[131] - The extension of the existing factory building and purchase of lifting equipment had an allocation of $19.5 million, with $2.96 million (65.0%) utilized by September 30, 2020[131] - The construction works to extend the factory are currently in progress, indicating ongoing capacity expansion efforts[153] - The company has purchased lifting equipment as part of its operational enhancements[153] Financial Position - As of September 30, 2020, total assets were $26.2 million, financed by total liabilities of $10.5 million and shareholders' equity of $15.7 million[105] - The current ratio as of September 30, 2020, was 1.6 times, down from 3.9 times in the previous year[105] - Cash and cash equivalents decreased to $3.9 million from $7.0 million in the previous year[105] - The total interest-bearing bank borrowings as of September 30, 2020, was $0.2 million, with a gearing ratio of 0.25[105] - The unutilized net proceeds have been placed as interest-bearing deposits with a licensed bank in Singapore[133] Strategic Outlook - The company is optimistic about revenue recovery as Singapore progresses to phase three of reopening businesses[37] - The company is committed to achieving sustainable growth and providing greater returns to shareholders[41] - The company provided a positive outlook for the next fiscal year, projecting revenue growth of BB% driven by new product launches and market expansion strategies[177] - New product development initiatives are underway, with the company investing $CC million in R&D to enhance product offerings and technological advancements[177] - The company is exploring market expansion opportunities in the ASEAN region, aiming to increase market share by DD% over the next two years[177] - A strategic acquisition was completed, enhancing the company's capabilities and expected to contribute an additional $EE million in annual revenue[177] - The company has implemented new operational strategies aimed at improving efficiency, which are projected to reduce costs by FF%[177] Governance and Leadership - The management team emphasized the importance of corporate governance practices, ensuring compliance with the CG Code to safeguard stakeholder interests[188] - The company plans to maintain a balanced approach in leadership roles, with the Chairman also serving as the CEO, to leverage strategic insights for business development[189] - The Chairman and CEO, Mr. Cai Liangsheng, has been a key leader since February 1990, contributing to the group's business strategy and overall direction[191] - The Board believes that the dual role of Chairman and CEO held by Mr. Cai is in the best interest of the group, with significant decisions made after consulting the Board and relevant committees[191] - The company has adopted the Required Standard of Dealings for directors, confirming compliance during the Relevant Year[195][196] - A Deed of Non-competition has been established with controlling shareholders to ensure clear business delineation, with compliance confirmed for the Relevant Year[197] - Independent non-executive directors have reviewed compliance with the Deed of Non-competition and noted adherence by all controlling shareholders[197]
日光控股(08451) - 2020 - 年度财报