Financial Performance - For the six months ended June 30, 2020, revenue increased to SGD 13,111,000, up 16.3% from SGD 11,278,000 in the same period of 2019[5] - Gross profit for the six months was SGD 3,109,000, representing a 7.4% increase compared to SGD 2,895,000 in 2019[5] - The net loss for the six months was SGD 58,000, a significant improvement from a loss of SGD 450,000 in the same period last year[5] - The company reported a basic and diluted loss per share of SGD 0.01 for the six months ended June 30, 2020, compared to SGD 0.08 in the same period of 2019[5] - The company reported a decrease in trade payables by SGD 225,000 for the six months ended June 30, 2020, compared to a decrease of SGD 380,000 in the same period of 2019[11] - The company incurred a loss before tax of 55,000 SGD for the six months ended June 30, 2020, compared to a loss of 457,000 SGD in the same period of 2019, indicating an improvement in financial performance[27] - The group recorded a loss of approximately SGD 58,000 for the six months ended June 30, 2020, compared to a loss of approximately SGD 0.5 million for the same period in 2019[55] Assets and Liabilities - Total assets as of June 30, 2020, were SGD 29,380,000, a decrease from SGD 30,069,000 at the end of 2019[6] - Current assets increased to SGD 15,300,000 from SGD 15,486,000 at the end of 2019, with cash and cash equivalents at SGD 6,093,000[6] - Non-current liabilities decreased to SGD 13,780,000 from SGD 14,411,000 at the end of 2019[7] - The company maintained a stable equity position with total equity at SGD 15,600,000 as of June 30, 2020, slightly down from SGD 15,658,000 at the end of 2019[7] - The company’s total bank borrowings amounted to 10,155,000 SGD as of June 30, 2020, slightly down from 10,458,000 SGD as of December 31, 2019[31] - The total borrowings as of June 30, 2020, amounted to approximately SGD 14.6 million, with a debt-to-equity ratio of approximately 93.3%[58] Cash Flow - For the six months ended June 30, 2020, the company reported a cash flow from operating activities of SGD 1,031,000, compared to SGD 456,000 for the same period in 2019, representing an increase of 126%[11] - The company experienced a decrease in cash and cash equivalents, with a net increase of SGD 176,000 for the six months ended June 30, 2020, compared to a decrease of SGD (799,000) in the same period of 2019[13] - The company’s cash flow from operating activities before changes in working capital was SGD 1,357,000, compared to SGD 658,000 in the same period of 2019, indicating a growth of 106.5%[11] Expenses - The company’s depreciation expenses for property, plant, and equipment increased to SGD 702,000 in 2020 from SGD 465,000 in 2019, marking a rise of 50.9%[11] - The company’s interest expenses increased to SGD 367,000 in 2020 from SGD 208,000 in 2019, representing a rise of 76.4%[11] - Administrative and other operating expenses increased by approximately SGD 0.1 million or about 2.5% to approximately SGD 2.3 million for the six months ended June 30, 2020, primarily due to increased depreciation from expanded warehouse and production facilities[53] - Financing costs rose by approximately SGD 0.2 million or about 76.4% to approximately SGD 0.4 million for the six months ended June 30, 2020, mainly due to increased lease liabilities financing costs and bank borrowing interest expenses[54] Inventory and Receivables - Inventory increased to SGD 3,500,000 from SGD 2,830,000 at the end of 2019, indicating a 23.6% rise[6] - Trade receivables decreased to SGD 4,997,000 from SGD 6,254,000, reflecting a 20.1% decline[6] - The company reported a total of 5,041,000 SGD in trade receivables as of June 30, 2020, down from 6,298,000 SGD as of December 31, 2019, indicating a decrease in outstanding customer payments[30] Shareholder Information - As of June 30, 2020, the company has a total of 302,000,000 shares held by major shareholders, representing approximately 50.33% of the total equity[70] - Major shareholders include Packman Global, which holds 302,000,000 shares, representing 50.33% of the equity[72] - The company’s shareholding structure indicates that the executive directors collectively control a significant portion of the shares through Packman Global[70] Corporate Governance - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15 for the six months ending June 30, 2020[79] - All directors confirmed compliance with the trading standards for securities transactions as per GEM Listing Rules from January 1, 2020, to June 30, 2020[80] - The audit committee, established according to the corporate governance code, consists of three independent non-executive directors and one non-executive director, with specific responsibilities including reviewing financial statements and overseeing risk management[81] Strategic Initiatives - The company aims to promote its brand and provide quality products while seeking business and investment opportunities in response to the challenges posed by COVID-19[47] - The company believes that the expansion of its warehouse and production facilities in Singapore will help launch new product lines and reduce third-party warehouse rental costs, thereby improving financial performance[47] - The company continues to seek new business opportunities to maximize overall benefits for itself and its shareholders while fulfilling its corporate social responsibility during the pandemic[47] Events and Transactions - The company entered into a purchase agreement on April 8, 2020, to acquire 49% equity in a target company for HKD 20,000,000, which operates tea and related product stores in Hong Kong[78] - The group has entered into several agreements related to the acquisition of companies involved in distributing disinfectant products and developing online medical services, pending the fulfillment of conditions[63] - The company did not declare any dividends for the six months ended June 30, 2020, consistent with the previous year[28] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2020[74] - The company has not disclosed any new strategies or product developments in the interim report[71] - The company reported no significant events affecting its operations from June 30, 2020, to the date of the interim report[78] - The company has no known competition or conflicts of interest involving its directors or major shareholders during the reporting period[77] - The company’s directors and senior management have no other interests in the company’s shares or related securities as of June 30, 2020[73]
COOL LINK(08491) - 2020 - 中期财报